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

Great timing Rf..... really great !....oh ! thanks very much....you're welcome !.

Bless you - we're all in it up to our necks. It's just such a shame that on some threads there are persistent gloaters as people's financial hopes crash down around their ears.

A few years ago...30p or so would have been unthinkable for a stock of this quality queen1....by the way Tom Winnifrith says keep buying up to a pound or so...yes a pound...that's 3 times and more the sp price now !, if I'm not mistaken he values FDI at above 2.....may the gods hear him !.

Well we were at 2 not so long ago required field so you never know.....!

queen1,

One good result from the MK1 bulk sample would move this price fairly substantially IMO!

BK11 bulk samplig results due anytime, and then there are other Tsabong bulk samples due before EOY.

I picked up some more at this price, and feel that there is more potential upside than downside from this level.

GLTA

I sincerely hope you're right Andy.

queen1,

So do I!

Bonte koe profits virtually underpin the current SP, particularly at these low levels, but are often forgotten as the bigger picture has so much potential.

Nice rise today !.

Andy, queen1,

At last something to be cheerful about. Nursing some substantial loss at recent level, I doubled

Required field,

Yes, let's hope this is the start of the climb back to a more appropriate price for an existing producer with another project nearing a production decision, and some large kimberlites to explore at the best address on the planet for diamondiferous kimberlites.

Volume was OKish, so maybe FDI has turned the corner?

Ray A,

Yes this last couple of months were painful, and I have added near the bottom too, let's hope our confidence and faith are suitably rewarded in due course!

Up again....!.

I didn't have any spare cash to add so these need to go some way yet for me chaps!

Andy, queen1,

Somehow, my post yesterday was cut short! Was saying I doubled up yesterday morning but size was limited and went in twice at 129 and 131p. Lets hope there is a positive update coming with the finals and at long last the promised sampling results from MK1, after all the problems FDI experienced. Still believe in this company!

Andy, queen1,

Very quiet here recently, attended AGM yesterday and feel much more encouraged, it is the market getting it wrong IMO!

PK gave corporate overview, after H1 08 record highs, rough diamond prices fallen back about 40%, however, polished prices holding well. Expect supply gap over next decade. Focus for FDI now on cash and raising cash flow, top priority Orapa BK11 prod 2010. Restrict investment on mine to 'fit for purpose', no bells or whistles. If needed, banks in SA keen to lend since little affected by credit crunch Toxic as.

TW (football better performance than SP!) said BK11 kimberlite cheap to process, softer than brick, gives up diamonds easily unlike some which are hard as flint. Next priority will be to take BK16 to production using BK11 cash flow. (Subsequent to meeting, believe can expect BK11 phase 2 results around mid Feb - I hope!)

Tsabong will be put on ice after initial MK1 bulk sample results announced - soon. FDI well ahead with government investment required and content with this approach in current climate. Looking for a JV but at the right price. All the early sampling problems have been solved and a lot learnt in the process for the future.

All othere explorations will be driven by availability of cash flow and suspended at present.

I asked about Bonte Koe and concern that De B may want to pull out, PK responded that in a win win situation since there is a penalty clause of around 2.5m and FDI get to keep all the plant so he personally would favour this since it would put cash in pocket!

PK said FDI will be a survivor, will look after every 1 as though it were the last.

I came away encouraged that business remains sound and current SP awaits a fair market valuation. I forgot to ask who was selling the big chunks recently but the price blip before Xmas though to have originated in SA from those who can see the activity. Maybe, should tuck a few more away at current SP!

Andy, see ADVN interest in AGM, pass this on if you wish.

The 13,000 transaction this morning marked 'unknown' was my purchase. Got a mid-range price of 17.5p so clearly more to off-load still? Feel comfortable with a 17.5p purchase.

Ray A,

Many thanks for a superb write up, much appreciated!

I will post on ADVFN as it will be more widely read there.

Seems the market is wary of junior diamond explorers/producers at the moment, hence another markdown today.

Both

I think the current SP is totally unjustified and a travesty for the company and its shareholders. It has to head on a sustained run north. Doesn't it?!

queen1,

Agreed but we may have to be patient. I hope my expectation (recent AGM) of a positive RNS in near future materialises to start the climb up again! Have been adding at these price levels and agree current SP unjustified. Have you seen:

Diamond Industry Suffering
"Credit for diamonds has virtually disappeared," Philip Kenny, chief executive of Firestone Diamonds told CNBC. He discusses why the diamond industry is suffering and how much longer the pain will last.

http://www.cnbc.com/id/15840232?video=1021254342

Realistic but encouraging!

Thanks Ray A