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

maddoctor,

Briefly, IMO, because they are busy securing licences in very prospective areas of Botswana and South Africa, and bulk sampling those prospects already secured, in order to determine whether they are commercially viable.

The last few years they have made a profit, now a loss, on the back of all the expenditure for drilling and licences etc, and next year I think we will see FDI return to profit.

Patience is the key with mining stocks, I wil post below later my thoughts on the results, but I am optimistic for 2006, more so than ever before, there is so much potential now.

Andy , thanks for reply.

by the way , are you the same "andy" as over the road

maddcotor,

Well FDI got thumped today, not sure why, results just released, and no bad news around that I am aware of, although clearly I only hear the odd titbit.

The same with AFD, is AFD better value now then FDI ?

aldwickk,

Well, IMHO, FDI have FAR more prospects and projects than AFD, and their licences in Botswana are alongside each other, and BOTH companies may well have at least one mine there.

FDI also have Groen River, Oena, Avontuur, marine gravels, and Bonte Koe in addition, whereas AFD only have what some consider to be limited prospects in West Africa.

Then they have existing production, which is increasing after a disappointing year at Bonte Koe, and the appointment of a new contractor at Oena imminent in Q1 2006.

I'm staying with FDI, but hoping AFD succeed too, as FDI have a 7.5% stake.

maddoctor,

Sorry I have just seen your question, and yes I am the same "andy" as over there, I prefer the name to be consistent, as people know who they are talking to.

Merry Xmas and a sparkling 2006 to all FDI holders and lurkers!

A poor showing by FDI this week, price stuck at around 130p, even AFD had a last minute rush of buys.

Aldwickk,

Yes it's been quiet at FDI, bit I'm not expecting news until later in January at the earliest to be honest.

They may have something to say nearer the AGM. Still, we have had a decent (20%) rise in shareprice for 2005, and 2006 holds the promise of some more if they can turn potential into revenue and profits.

Many shares have lost investors money this year, so at least we went in the right direction!

IMHO they need to urgently review the operations to increase production, and return to profitability, even if that requires a slight slowdown of some of the more major projects. Most are in JV with De Beers or Trans Hex anyway, so Tim Wilkes' challenge has to be to aquire a producer ASAP IMO.

There must be quite a few decent assets in SA that a man with his knowledge of the industry could look to buy into, and the placing money was probably raised for a reason!

Aldwickk,

Interesting,

Every picture tells a story!

Aldwickk,

FDI moving nicely today, now up 5.5p, and no news.

Maybe a move in anticipation of something being released either before, or like last year, just after, the AGM next week?

Possibly Andy although it's only picking up ground lost over the rest of this week. Still, looking forward to the AGM.

Andy,

FDI & AFD seem to be tracking one another today.

Sorry, didn't realise this was a private club.

queen1,

Are you going to the AGM?

I hope to be there, it's normally an interesting affair, and a decent buffet to follow!

Take a look at the chart below, I have marked in what I believe is a pennant that has formed, and if the breakout is confirmed, the potential rise looks good IMO!

No AGM or buffet for me I'm afraid Andy. New Year's resolution to watch my figure & figures!

queen1,

Me too, just late starting!

FDI AGM is normally an interesting presentation, I will post a brief synopsis next weekend.

Avoid.....getting ready for the knackers yard........

Right Andy.

Sue,

Don't think so!

Avoid is all I say......this is only going one way and that is down.