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

having nothing greatly better to do, I had a quick look at the company profile etc ..... On a positive note, there would look to be support around 130 (currently 136), but the interim figures were horrid, there looks to be no immediate prospect of profitability, and the shares are pretty illiquid (NMS = 3000).

I can think of several high risk punts that would make better sense than this ..... well that's my view at least

cynic,

Its the huge potential from the exploration rights the company has and also the growing number of JVs with De Beers that focus the mind. The diamond market is stumbling towards a supply shortage which companies like Firestone are set to exploit. I agree that the interims were not brilliant but the company valuation looks very light if the projects that are currently being evaluated are turned into reality. The turnover will be greatly increased in 2007 together with profitability and the company has buckets full of cash in the bank. As with all exploration shares, the risks are high so deal at your own risk, but Firestone has the management and quality acreage to reap handsome rewards.

hobbst,

Nicely put, and I agree "the company valuation looks very light if the projects that are currently being evaluated are turned into reality".

What I think FDI now have to do is deliver something.

My issue with the interim statement was that it was so depressing, and IMHO displayed the company's prospects in a very poor light.

The absense of any time lines, particularly for Oena, coupled with no figures for the new JV at Bonte Koe, did little to lift the spirits IMO.

FDI has promised much, but a lot is currently resting on the Groen River HL deposit result IMO!

I totally agree with you Andy. No-one could ever accuse Firestone of exaggerating its prospects !!

Something has to give soon - with all the work being undertaken, especially with De Beers and their airship there has to be some (hopefully positive) news to be had soon.

Also their stake in African Diamonds looks, in hindsight, to be a bit of a steal. They paid 54p a share - now its worth 161.5p

Finally some positive news from FDI!


Firestone Diamonds signs Buffels River mine development agreement with De Beers
AFX


LONDON (AFX) - Firestone Diamonds PLC said it and its black-empowerment joint venture company, African Star Minerals, signed an agreement with De Beers to cooperate on the development of a new mining operation on the Buffels River in the Namaqualand region of South Africa.

The new mining operation will be developed around Firestone's Bonte Koe Mine, which is operated by African Star, and will exploit the Buffels Inland Complex (BIC) deposits, over which De Beers holds mining rights.

The agreement 'provides us with significant assured revenue and cash flow for the duration of the Buffels River project and substantially extends the life of our operations at Bonte Koe,' said Firestone chief executive Philip Kenny.

'We intend to expand our relationship with De Beers and investigate other known resources in the Namaqualand region that we can jointly exploit with them,' he said.

De Beers is 45 pct owned by Anglo American PLC.

The production target is more than 600,000 carats over six years and the minimum estimated annual revenue to Firestone of 3.7 mln stg and operating profit of 2 mln.

First production and cash flow from the development is expected in June.



newsdesk@afxnews.com

At last some news on Bonte Koe - share price up to 145.5p on the JV with De Beers which guarantees cashflow.


Firestone Diamonds signs Buffels River mine development agreement with De Beers
AFX


LONDON (AFX) - Firestone Diamonds PLC said it and its black-empowerment joint venture company, African Star Minerals, signed an agreement with De Beers to cooperate on the development of a new mining operation on the Buffels River in the Namaqualand region of South Africa.

The new mining operation will be developed around Firestone's Bonte Koe Mine, which is operated by African Star, and will exploit the Buffels Inland Complex (BIC) deposits, over which De Beers holds mining rights.

The agreement 'provides us with significant assured revenue and cash flow for the duration of the Buffels River project and substantially extends the life of our operations at Bonte Koe,' said Firestone chief executive Philip Kenny.

'We intend to expand our relationship with De Beers and investigate other known resources in the Namaqualand region that we can jointly exploit with them,' he said.

De Beers is 45 pct owned by Anglo American PLC.

The production target is more than 600,000 carats over six years and the minimum estimated annual revenue to Firestone of 3.7 mln stg and operating profit of 2 mln.

First production and cash flow from the development is expected in June.



newsdesk@afxnews.com

Just as I was thinking about adding some more when SP reached 130p! Still, it is good to have some positive news from FDI at last

ray,

I agree, I was looking at the 130p level as the likely bottom for adding a few too!

Whilst this is good news in terms of revenue and profits increasing, the big one is the Groen River, and I doubt we shall hear before June personally.

Firestone are presenting in London Friday, along with a few other diamond juniors, so I think it's unlikely we will have another RNS in the next couple of weeks.

Hello, I ve just got some FDI shares this week, I liked the prospect that the diamond production is due to start some time in June. Earlier last week or so I had read an interesting article in the IC mag relating to diamond miners. I was just waiting to dive in at the right price.

I believe the diamonds are going the next 'thing' the chinese will want, the supply is getting scarce and will not be able to meet the demand, the price diamonds will start to rise...IMO of course.

Do anyone have shares in PDL, I 've got those this week as well!

Welcome to our sparkling thread R88AVE :-)

R88AVE,

Yes welcome, and I agree, demand for diamonds is already growing in China, India, and Russia, according to De Beers.

Firestone presented in london yesterday, and were well received according to my friend's broker, who heard some very positive comments afterwards, so we may well see some buying this week.

FDI have a big moment approaching, when they will announce the results of the first bulk sample of the HL deposit on the Groen River.

I expect this in June, but we could hear at any time.

If this is good, it will be a company maker, IMO, but if poor, we may see a bit of a drop, so we have to be prepared!

The interesting fact I heard from speaking to a jewellery on my hols in Mauriatius who buy South African loose diamonds, was that everytime there was a large find of diamond site in Africa, the Russians are to quick buying the whole site, without even starting production, which probaly explains why De Beers are trying to keep its hold within their terrority. De Beers seems to have alot of share holding in a few company that are mining in Africa. Stragegy (cant spell it!) do you think, keep the Russians or others at bay???? But for how long though...i think it will get interesting in the next few months especially when the production starts.
Everybody knows that it is cheaper to process the diamond production in Africa than anywhere else in the world.

This is a ridiculous price for FDI, market sell-off or not. Does "the market" know something us private investors don't?

This smells like a tree shake - low volume and the buys outweigh the sales. Unless there are some delayed trades to go thru, it could be some market shenanigans in advance of some news. Its not really Firestone's style to leak info.

FDI is certainly for the brave in the current volatile times !

hobst,

I totally agree, FDI has never bean a 'leaky' company, management integrity is one reason I hold them.

We are due Groen River news, and have been for some time, although now may not be the best time to bring out anything but outstanding news.

I believe that De Beers are involved in the news release process, so FDI may have to wait for DEB to sanction any news via RNS before releasing.

Any decent news from the Groen should have a major impact on the shareprice at this low level.

Another poor week for FDI pricewise IMO.

We need news, and it's long overdue, but I have a feeling we won't wait much longer, and it wouldn't surprise me if we hear something in the next couple of weeks.

The Groen River is what we are waiting for, and nothing else will do IMO, although any other good news would be welcome too, of course!

Hopefully the current troubles in the middle east will subside over the weekend, and we will have a calmer market to release news into next week, if we have some!

Bit of a plunge today, down 6p on what looks like a 30k sale.

Price recovered 3p afterwards proving there is support at this level, but PK needs to release some news to maintain the interest here IMO.

News due in February is a long time in coming, even allowing for the inevitable delays suffered by mining companies.

We recovered a tad more at the end, so plenty of support around 100p it would seem.

Andy,

I can't believe that we are now into August with no news yet on Groen River, after all we were told at the AGM! I added some more when the SP went below 110 expecting to get news any day. Surely, if the results were poor they would have been obliged to tell the market by now so I am still optimistic! Perhaps De B have more of a say than PK on the release.

RAy A,

I believe that is the case, and may explain some of the delay.

I believe the water encountered has also slowed down the bulk sampling process, so there may well be valid reasons for the delay.