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

Glad to see it's stabilised today.

Lobbed -2. Not bounced! Back to watching.

Perhaps I was a little premature - down another 2p so far.

What's going on guys, this seems to be more than just a little profit taking?

queen1,

good question, volume is low, and most trades are private investor level rather then institution sized.

Obviously disappointing to lose some of the recent gains, but it did run up very fast, without any obvious reason, so maybe a retracement was on the cards?

Bit of decent news would be nice!

Andy, I think Monday will be interesting. If it continues to fall I would begin to get worried. However, if it levels off or, even better, begins to climb I feel that would be very positive as opinion that it has been oversold could come into play.

queen1,

yes I wouldn't want to see much more of a fall, although no real volume on the sells does make you wonder why the price is falling so fast.

Maybe they ran it up and are now dropping it to shake out a few of the longer term holders?

Maybe a rumour was the basis of the rise, and now those that bought are selling due to the absense of news?

...and the broker upgrades?

Not heard of any yet, but as soon as I do I will try and post them, or at least a link to them.

My source is normally reliable, so I have no reason to doubt him.

I still feel FDI will reward us in the longer term, and may release some further news soon. Drilling in Botswana was due to complete at the rate of 1 per day and a half, so another drilling report may well be due.

Thanks Andy, enjoy the rest of your weekend.

Rising rand bites South Africa's gold and diamond mines
AFX


JOHANNESBURG (AFX) - South Africa's gold and diamond mines are feeling the pinch of a bullish rand, with at least one major producer considering laying off thousands of workers.

The local currency soared to a record high last year after a five-year slump when the rand -- at its lowest point in December 2001 -- traded 13.85 to the dollar.

The currency bounced to a two-month high last week, climbing to 5.77 against the greenback.

'The (strong) rand is a very serious problem for the whole mining industry,' said Nick Goodwin, a mining analyst with T-sec, a Johannesburg-based brokerage.

'I would say some 70 pct of its operations are in jeopardy,' he told AFP.

De Beers, the world's largest supplier of rough diamonds late last week issued a notice to the powerful National Union of Mineworkers (NUM) saying it 'will serve to inform the union that the company is contemplating retrenchments.'

'Currently five of the seven De Beers Consolidated Mines (DBCM) mines in South Africa are operating at a loss,' the company said in a statement.

'The strong rand has had a major impact on our operations in South Africa,' company spokesman Abel Madonsela told AFP.

De Beers warned that some 1,270 of a total of 9,442 workers could be retrenched as a result.

Another company in trouble is South Africa's fourth largest gold miner DRDGold, which over the past 18 months has been exposed by the strong rand, as the mature miner struggles to make profits.

DRD chief executive Mark Wellesley-Wood said 'the company's working capital and commitments, as well as sources of liquidity could be adversely affected if there was a further deterioration in the rand gold price arising from further strengthening of the rand against the US dollar.'

Wellesley-Wood recently told Mineweb, a Johannesburg-based internet mining news site, that the company was looking at scaling down production of its South African-based operations.

The Johannesburg-based Afrikaans daily Beeld said earlier this month that a third of DRDGold's workforce have already lost their jobs, including some 1,619 workers who were retrenched last year at a mine in the north-west of the country.

'DRDGold will possibly have to close all its local activities, unless the rand weakens substantially this year ... Thousands of miners could lose their jobs,' the paper said.

jhe/ach/nh/jmy/ra

Current price got to hold or we revisit +/-155p IMO. Some decent volume on 2 day's pullback implies decent profit-taking.

Al,

Agreed, nothng wrong with taking a profit but i fel it's bst to remain a holder, as this story still has enormous potential IMHO.


Aldwick,

Interesting article, but fortunately FDI are alluvial mining, rather cheaper than deep pit!

If De Beers lay off their workers, I wonder what that will do to the supply defecit of gem quality diamonds, and hence the price?

Another very poor day. Surely this is more than profit-taking now? I'm hoping not but falling by almost 20% in 3-4 days is worrying.

queen1,

I agree, it does appear to be, but they were mostly small(ish) sells, private investor size.


It ran up pretty quickly on no news, so maybe this is the reaction to such a move?

it did bounce a bit (2p) at the end, so maybe the sell off has been overdone?

Still watching. Gotta hold here surely.

I hope so Andy & Big Al. Down again today though. If it is private investors, what has sparked the mass exodous? Although I have a very diversified portfolio my largest holding is FDI so I need these to resume their northerly path...

all support has gone get out if in profit maybe the sp went a little to high too fast.

What the hell sparked the raise in the first place was it inside info that proved wrong, nearly all the trades seemed to be small retail or where they ment to look like they where, I suppose that FDI workers hold small amounts of stock.

Thanks for the de-ramp sirthingy.