Firestone Diamonds plc is a UK-based international diamond mining and exploration company with operations in the Namaqualand region of South Africa and Botswana. Namaqualand, which is located on the west coast of South Africa, has been one of the world's largest alluvial diamond producing regions for the past 60 years, with total production to date estimated to be worth more than $3 billion. Botswana is the world's largest producer of diamonds by value, with annual production of over 20 million carats worth over $1.6 billion.

Firestones strategy has been to build a portfolio comprising advanced development and production projects to provide sustainable cash flow to fund ongoing exploration programmes and to provide an early return on investment, together with large scale exploration projects which have the potential to yield significant reserves of gem quality diamonds.

The company operates the Avontuur Mine and the Oena Mine of Namaqualand, which produces high quality alluvial diamonds, and has a growing portfolio of advanced and early stage exploration projects in known diamond producing areas in Namaqualand and Botswana.



Since 1996 the company has increased reserves and resources more than thirty two times from 34,000 carats to over 1.1 million carats at present, with an estimated gross value of approximately 260 million. Firestone is debt free and well funded and has a highly qualified management team with extensive experience in the financing and development of diamond and other natural resource projects. Firestone is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and trades under the symbol FDI.L.

Firestone also has an exploration project in the USA.



Main Mining Pit, Avontuur Mine, Namaqualand, South Africa.






For FDI Corporate information : http://www.firestonediamonds.com/frcorporate.htm

For FDI homepage : http://www.firestonediamonds.com/index.htm

Firestone Dimaonds shares in issue: 65m 20p Ords

Firestone Diamonds PLC - Major Shareholders

Major Shareholders ---- Amount --- % Holding
Elfin Trust Company Ltd 7,200,000 16.68
Aurora Investment Trust 7,200,000 16.68
Gartmore Investment Mgt 5,418,116 12.56

Yes, very interesting. In your opinion Andy would this be a smart move should they act? I can see obvious reasons for making an approach but it could also be potentially detrimental in the short-term by creating a distraction from the very real day-to-day business of their existing operations.

queen1,

With regard to your comments made in the previous post, I agree with you completely, it WOULD (IMHO) be a distraction, and I would prefer to see FDI stay focussed on their core projects of Groen River and Botswana.

In addition, I cannot see John Teeling, who is shrewd, giving FDI any deal that would give value away, so I would prefer to see FDI continue to do what they do best, exploration.

Queen1,

This article has been posted today on Mineweb.com.
============================================

Decision on Firestones Groen River Valley next year
By: Gareth Tredway
Posted: '11-AUG-05 07:59' GMT Mineweb 1997-2004

GABORONE (Mineweb.com) -- Firestones Groen River Valley alluvial exploration project, which De Beers recently entered into as joint venture partner, could be at board decision level by next year.

Speaking at the Botswana Resource Conference on Wednesday, Firestones chief executive, Philip Kenny, says that once the exploration and drilling results yield a certain level of confidence, a decision will be made.

By the middle of next year, this is where we expect the project to be, and this is the stage where De Beers decides whether to build a mine or not, Kenny told delegates.

De Beers already mines extensively along the west coast of South Africa and Namibia, including at the mouth of the Groen River. But Kenny says Firestones large tenement inland is unexplored.

This is a multi-million carat, multi billion-dollar potential resource, said Kenny.

So far, with De Beers, 13 deposits have been identified in the area, while initial estimates are expected in the next couple of months on what is in the ground.

At this point we can say it is in the multi-100 million ton order of magnitude, says Kenny, say a 200-300 million ton resource.

We do think that, if we are right, there will be a number of mines in this area.

Firestone already operates the Avontuur and Oena Alluvial mines in Namaqualand, on the west coast of South Africa.

The company also has JV agreements with De Beers in Botswana, on the Orapa and Mopipi exploration projects.

There are also news reports out of London, that Firestone is in talks with large shareholders in African Diamonds, another Botswana diamond explorer, to buy its holdings in the company.

African Diamonds is also in a JV deal with De Beers in the Orapa area.

Queen1,

A brief mention in Shares today!

---------------------------------

Diamonds -

Miners just cant dig diamonds as quickly as the market wants and there is no sign that the production shortfall will disappear. Williams de Bro Tomlinson thinks that rough diamond prices could rise by 15% or more over the next 12 months.

The diamond business attracts plenty of companies the wise investor wouldnt entrust with a bent hapenny. But there are also several high-quality firms on the market, including Firestone Diamonds (FDI:AIM) which has excellent exploration projects in Botswana.

Andy, thanks for the posts. I must say, although it's finger-in-the-air stuff, the comment, This is a multi-million carat, multi billion-dollar potential resource, does sound wonderful! If only. Still, it sounds like it won't be too long (relatively speaking) until we'll have a better idea of the potential.

Quite a large fall today, apparently after a broking house issued a "sell" note, after the broker concerned stated that FDI were not including him in their news releases!

And holders sold based on that information?! Please. What is wrong with people....

Queen1,

A brief mention in yesterday's Sunday Times.


The Sunday Times

August 28, 2005

Teeling feels African heat from Petra - Ciaran Hancock

JOHN TEELING, the Clontarf-based entrepreneur, is facing another battle to retain control of African Diamonds, a listed company with potentially lucrative diamond mining licences in Botswana.

Petra Diamonds, a London-listed mining company with operations in Angola, South Africa and Sierra Leone, is believed to have approached Mark Scowcroft and Leon Daniels, two Africa-based shareholders who between them own 18% of African Diamonds shares.

Petra, which has a market capitalisation of 92m (134m) and is headed by Johan Dippenaar, is believed to be interested in acquiring Kalahari Diamonds, an unquoted diamond explorer in Botswana, with ground close to African Diamonds licences in the Orapa area.

BHP, a mining giant, is a key shareholder in Kalahari and is also Petras joint venture partner in Angola. African Diamonds would offer potential synergies for the company. De Beers, African Diamonds joint venture partner, is likely to block such a move, given Petras links with BHP, one of its biggest rivals.

Scowcroft resigned as a director of African Diamonds, which has a market cap of 33m, on August 23, fuelling speculation that he might sell his stake in the company. As a director, he would be obliged to inform the board of any approach from a third party. Leaving the board allows him to talk freely to any interested party, but he may be obliged to give first option to De Beers.

On the day Scowcroft resigned, De Beers said it had asked the board of African Diamonds to implement one of the terms of its joint venture deal, under which each director is granted rights of first refusal to the mining giant if they choose to sell their shareholding. Scowcroft, who had a public falling out with Teeling earlier this year, could be bound by this.

Petras interest follows a similar approach from Firestone Diamonds, a UK-quoted mining company headed by Irishman Philip Kenny. Firestone, which also has diamond licences in Botswana, is believed to have held talks with Scowcroft and Daniels with a view to using their equity to gain control of African Diamonds board.

Teeling said: I am aware of the interest of Firestone Diamonds and of Petra.

The resignation of Mark Scowcroft was unfortunate because he was a very good geologist. Replacement specialists will be appointed within a short time. I would be concerned that there are predators out there who would like a slice of the Orapa discovery and that they would use Mark Scowcroft as the entry point.

Thanks Andy. I'm a little disappointed (again) with the current sp. Any views?

queen1,

Me too, to be honest, I don't see any reason for the drift downwards. To the best of my knowledge there's no bad news around that, so maybe simply the absense of any news at all?

I personally think a deal with AFD would muddy the waters for FDI, so I would prefer to see FDI continue to do what they seem to do best, exploration.

Having said that, Phil Kenny is shrewd, so i'm sure of he does a deal, it will be value enhancing.

Andy,

Take a look at KYS, Vice chairman is Simon Cawkwell [ E K ] he holds at least 700,000 shares.

Zeppelin to be used to spy SAs diamonds

Johannesburg A German-built airship, or Zeppelin, arrived yesterday in South Africa, where it has been chartered by diamond producer De Beers for use as a platform for mineral exploration in southern Africa.

Astonished onlookers noticed the cigar-shaped vessel floating near Cape Towns Table Mountain after it was unloaded at the citys dock and took off for the Ysterplaat military base about 30km away. The prototype airship, one of only three of its kind in the world, was flown from the factory near Lake Constance to Amsterdam and shipped to South Africa.

De Beers spokesman Tom Tweedy said it would be fitted with measuring equipment to enable the study of geological formations indicating the presence of diamonds in SA, Namibia and Botswana. Sapa

Aldwick,

Ok will do, thanks.

Any particular reason for you liking them?

Andy,

Since i posted that Simon Cawkwell as bought more shares/ options, I have been told by a top man at a top brokers, that there are rurmours that he as a massive amount of options that have not been made known to the city.

aldwick,

Nice rise today!

the 100k buy presumably started the rise.

Andy,
Yes, and AFD up. Have you looked at KYS yet ?

aldwick,

Only briefly, I see Ek has left the company, but significantly increased his holding, and is planning to visit again soon.

I have to admit if he's putting his own money where his mouth is, and paying market price, I would see that as very positive.

I am going to read a bit more about them.


Yet another nice little rise here today, to finish off the week on a very positive note!

I hear there is a shortage of stock, and online dealing was restricted yesterday afternoon, Squaregain would only trade 2500 electronicaly.

The free float on FDI is only around 20%, so they will struggle for sellers IMO.

Aldwick,

This is the new airship De Beers will be using for exploration in Botswana!

Interestingly, it carries the name Debswana, sugesting it will only be used in Botswana, and not SA.

Lots of activity in the shares and hence the SP up to 1.60 ish

Nothing obvious on trawling thru the internet but a liitle mention in the Daily Express market report today ........."Rumours of an upbeat drilling report from Botswana helped Firestone Diamonds sparkle, up 8.5p to 160.5p".

hobbst,

Yes I saw the snippet in the Express, but FDI have not confirmed the rumour, so it may just be that.

FDI have never been a leaky company, so I was surprised to see the comment in the Express, although the David Shand column has had it's fair share of failures in the past!

I was expecting some sort of confirmation from the Groen River , rather than Botswana to be honest, although FDI could announce news on a number of fronts as they have several areas ongoing at the moment.