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

Aldwickk,

That's an interesting article, thanks for posting it.

It would not surprise me if FDI return to AFD and pick up another tranche of shares at some time in the future.

Very disappointed with FDI at the moment in terms of sp performance. All we've had is good news recently but it seems to make little difference. Admittedly the general markets have been poor for the last couple of weeks but today things are much improved yet FDI is down sharply again. Perplexed.

queen1,

So am I to be quite honest.

I am not aware of any bad news, and FDI are never 'leaky', so unless we have a large seller disposing of a quantity of stock, I can't fathom the drop.

I still believe in the long term value potential here, so not too worried, and, unlike the other AIM juniors, they have production, and make a profit!

One of the problems in a tightly held stock can be the MM's not being able to fill an order, and so they may be tempted to "shake the tree" in order to try and skae out some hoders.

Conversley of course, holders may hang on thinking this when it's not a "shake" at all, and lose out if the price falls further.

Oh for an open and honest system like the US have, rather than this manipulated system that we have.

petra is also seeing heavy selling - no reason for either fall that i can see

This is probably the most frustrating share in my portfolio and certainly not one for the faint hearted. As discussed before, liquidy may well be the problem, but if you believe as i do, that the true quality will be (eventually) shown in the SP then hold on tight for the rollercoaster ride.

hobbst - unfortunately I've got worse but again today the FDI sp defies the rest of the market, and falls. Surely not all of the potential for the company can already be reflected in the sp? It's way too low imho.

queen1,

I second that, quite bemused by the drop.

Since July we have had three major announcements, and we are partners with two of the major diamond producers in the world with various projects in politically stable countries, and yet the price is now lower than earlier in the year when FDI had a lot less projects to it's name!

I say appoint John Teeling to the PR Department!

Indeed! You know, one could go a little insane trying to fathom the markets.

This could well be the reason why the sp has been held back........apart from an early morning dip when the news was announced, the sp has been remarkably resilient.

LONDON (AFX) - Firestone Diamonds PLC said it is to significantly expand its
operations in South Africa and Botswana and at the same time announced plans to
raise 10 mln stg via a share placing.

The AIM-listed company said new exploration projects have been identified in
South Africa similar in scale and geological setting to the Groen River Valley
project and prospecting licence applications have been submitted covering
substantial new areas in Botswana.

Firestone added it is currently preparing an expansion of the Avontuur Mine as
well as evaluating the potential at Bonte Koe Mine.

Firestone also said it is to raise 10 mln stg via a placing of 7,692,308 shares
at 1.30 per share with institutional and other investors.

newsdesk@afxnews.com

nes/


COPYRIGHT

Copyright AFX News Limited 2005. All rights reserved.

Another poor showing so far today. What is going on?

all the small diamond miners are heading south , no idea why

queen1,

Well the new shares commence trading on Monday.

Looking at today's trades, there's no real volume to speak of, unless there's something not yet reported to come of course.

Andy,

Presumably, Firestone had no trouble in placing all the shares ?

hobbst,

Not to my knowledge.

I thought they did well to raise 10 million in the current market.

My shares in FDI are now at my cost price and am thinking of selling.

aldwikk,

Well we have returned to the placing price, which normally happens after a placing.

AIM mining sector is quite soft at the moment, so I'm not expecting any mining stock to race up with the current sentiment.

I do feel FDI have released some excellent news this year, yet it has been absorbed by the market, whereas lesser companies that have been hyped on the BB have gained.

I still feel FDI need better PR, and maybe a mining focussed broker, such as WHI.

I still think there is hidden value here, but I don't think we will see any sudden increases until 2006.

Good luck whatever you decide.

Aldwick,

Nice to see a bounce off the 130p placing price, and some decent sized buys going through too!

Maybe someone is accumulating at these low levels?

Also AFD on the move up to, FDI bid ?

Andy,

I did sell all my FDI at 128.

aldwickk,

Sorry you sold, as I believe FDI are entering an exciting phase, with considerable news and prospects due in the next 12 months.

We are due sampling news from Botswana before the end of 2005, and the decision on the HL deposit at Groen River is probably due by Q2 2006.

I don't blame you though, the fallback has been a little dispappointing, and I wish you good luck in whatever stock you invest the funds in.

With regard to a bid for AFD, I personally doubt it. The recent fundraising was 10 million, so I would think a bid for a smaller player such as EPD, (11 million market cap), or even Mano River, (15 million MC),was more likely.

Having said that, I would be surprised to see FDI invest in any a country such as Sierra Leone, or Angola, I think they will stay in the politically more stable, and infrastruturally better served, SA and Botswana.