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

Eric,

NML nearer to production?

Sorry, but Firestone have been producing for several years!, and have THREE PRODUCING mines today!

That is probably why FDI is valued so much more highly than NML, currently at least.

HJC is considered to be the foremost geologist in Africa, and he has some consierable experience there. He is very well respected amongst his peers.
The geologists you name I have no idea about, and i'm sure they must be competent, and certainly wouldn't suggest otherwise.

The management of the two companies DOES differ in their experience levels, massively IMHO, and that is the major difference between the two.

I attended the FDI AGM last monday, and if you just consider their prospects, and forget the three producing mines, there is massive potential for upside IMHO.

Groen River, Namaqualand, S. Africa, average value $1,000 per carat, and an area of 7km x 700m x depth of deposit gives some idea of the potential there! And that's just ONE HL deposit, amongst several!

And they have applied for more permits on adjoining land.

And then today, FDI announced via RNS, THREE out of four kimberlite strikes in Botswana, quite extraordinary, and the reason for the massive rise today. And they have 190 TARGETS, so it would be truly amazing if they didn't end up with a few mines once they have completed this research. Afterall, FDI's prospects surround the De Beers Jwaneng, Orapa, and Lethlakane mines in Botswana, amongst the world's richest source of diamonds.

And they have just applied for more areas on adjoining land here too.

I suggest you take a look at FDI, because if you like NML, you may like what you see here too!

I would like to see NML management start to deliver on their promises, which IMHO they have failed to do so far.

Damn those lack of funds.....Another great day so far. Andy, you must be a very happy man!

queen1,

I certainly AM! (despite having the flu!)

What a week, a few more like that and I won't have a mortgage!

I think that this is just the START of FDI being re-rated, they have more so much more exploration to do, and the potential is enormous for a company with such a small market cap, IMHO.

Andy - Who would you consider to be the nearest peer on a higher rating where FDI deserves to be?

queen1,

Nothing in the UK I'm afraid, it would have to be a foreign diamond producer IMHO.

Nice moves in FDI; and that 200p looking much nearer now :)
Your feelings being reflected in the share price; good for you.

Mike,

Glad you're still in, I feel we have a long way to go here, the train has just left the station IMHO.

Have been in a long time and have added recently. I agree Andy, this is going a long way.

it's left another station.

157 - 161p, steaming ahead.

Yes,

FDI are presenting at the Indaba Mining Conference in Cape Town, SA, today.

Maybe we will hear some news once the conference is over.

Firestone receive a brief positive mention in this article frpm last Sunday's Sunday Times.

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February 06, 2005

Merryn on Money: The rising cost of bling


I MET a woman the other day with a diamond the size of a small house on her finger. It must have weighed a good five carats the average engagement ring comes in well under one and it sparkled like the lobby of a Las Vegas hotel.

A year ago I would have dismissed her extraordinary rock as both a complete waste of money and impossibly vulgar. Today I can only claim the latter.

A few decades ago the diamond price was in freefall: De Beers was stuck with a $1 billion stockpile and was being forced to mop up overproduction to prevent African countries dumping diamonds on the open market and further pushing down prices.

If you must buy a diamond, a dealer told me over a drink in a bar in Bangkok in 1996, buy a badly flawed one they at least are quite rare.

Today that dealer probably hasnt got time to sit around telling jokes hell be too busy working. In the past few years demand for diamonds has started to rise across the globe up 2% in 2002, 5% in 2003 and about 8% in 2004 (the figures arent in yet).

Demand from China alone grew 22% in 2003. And given that the status-conscious middle class is growing fast all over Asia, thats a trend that is going to continue: rubies and sapphires may look classy, but to most people nothing suggests status more than the bling of a nice diamond.

As with most hard commodities these days, the supply of sparklers isnt there to meet demand. The De Beers stockpile is all but gone and the past decade has seen very little in the way of new discoveries. The result? Prices are rising fast De Beers (which controls 60% of the market) has just forced through a 13% rise in the price of rough diamonds, and the hunt is on for new mines.

De Beers is spending $2 billion looking for and developing new mines in Canada, BHP Billiton has already spent $1 billion there and smaller firms are prospecting all over Africa. But it takes at least five years to get a mine to commercial production. As long as demand stays high so too will the price.

Investing in diamonds via the stock market is simple. There are several small listed diamond companies, including Firestone Diamonds and Brazilian Diamonds, both of which are very well managed.

The other route is to buy the gems themselves, but this is risky for the amateur.

However, one thing you should never do is buy new jewellery in the shops. The mark-ups are insane assuming he bought her ring new, the husband of the woman with the monster ring will never get his money back.

Instead, think about buying vintage jewellery at auction or at a good second-hand shop. That way you will get not just the gem at a price close to its real value, but the added bonus of the beauty of a piece of jewellery made in the days when a craftsmans time came cheap.

Merryn Somerset Webb is a former stockbroker and now editor of Money Week. Her views are personal and investors should always seek professional advice

Andy

Surprisingly quiet over here. You've got a good header post and a great share so where is everybody? 'Good value' judgement from Friday's IC. "The overall risk is minimal - but the upside is substantial." What revenues do you see from the South African alluvial projects? You'll be pleased to learn that I've taken out a CFD for 10K shares this morning (mind, NML are too small for CFDs - at the moment!). That should really get the sp going! lol :o)

Eric

IGindex wont deal NML.

Eric,

Good question!

It does seem to be a 'quiet' stock, and despite the recent 50% increase in price, the FDI threads are still very quiet. I guess it comes down to promotion, and stocks like Petra have been promoted, whereas Firestone hasn't.

Slowly the story is coming out, so we can only hope for more vibrancy in the future.

With regard to the SA alluvials, Groen River has the potential to be huge.

At the recent AGM, it was confirmed that the area of exploration is 50km x 50km! Firestone are also applying for additional licences on adjoining properties.

The high level deposit (HLD) currently under assessment, measures 7km x 700m, x an unknown depth of diamondiferous gravels. Stones from this deposit are large gem quality, and according to FDI, average $1,000 per carat!

The HLD is one of several sites of interest, and Phil Kenny mentioned that the Groen River area has the potential to host "several mines".

aldwick,

NML market cap too small, (7,900,000) IG quote above 20 milliom market cap.

Andy

Thanks. A welcome contrast to the threads of some shares which are over-hyped and partly the reason for the sp getting ahead of itself. Better to see good fundamentals in the stock and an analytical approach to the discussion. Good to be on board!

aldwick: blue index appear to hadle CFDs for smaller companies than most. There starting point appears to be well above 20M.

Eric

I'm still here guys, watching and waiting with interest. Me thinks the current 153-157p shuffle is but a mere breather on a very exhausting climb......

.....and perhaps today is the first step up the the side of the next hill. Up 4% on the day on no fresh news (that I can see). More of the same tomorrow please!

queen1,

Over 6% at the bell!

There is some speculation that there are one or possibly more brokers buy notes being released for FDI, although this is not confirmed yet.