Firestone Diamonds Share Discussion Threads

[andy] 08/5/2013 17:11

Well that's a fair assessment!

If you look at the salaries being paid by FDI, they look inconsistent with a junior exploration company that lost millions of dollars just last year!

When share prices were rising, investors, me included, paid little heed to the accounts, the salaries, related party transactions et al, but now prices are falling through the floor, we are all learning that the back of the accounts is where the interesting stuff is!

AIM is a market that collects from the many and rewards the clever few, with the city collecting their commissions and fees along the way!

[genises] 08/5/2013 15:53

same in most aim companies.
most companies are floated on aim not to give shareholders value but to pay the board their salaries until they find they have no money left and try their luck as an investment company or get a company to reverse into it.

[andy] 08/5/2013 08:10

Genises,

Take a look at the accounts here and see how much money is being spent on salaries!

[andy] 07/5/2013 23:59

Genises,

Well personally I see NO recovery whatsoever in the US, just a slow and painful train crash in progress.

The UK and Europe are not far behind, IMO, and Japan looks a basket case.

There seem to be genuine concerns about the Chinese economy slowing, an indication of which is the falling price of copper.

If Chinese property crashes, all bets are off!

[genises] 07/5/2013 23:18

The initial phase of 2013 is expected to experience lows in the prices of rough diamonds but the continued growth in the Asia Pacific region, the slow and steady recovery of the U.S. market, and a concentrated focus on supply constraints is likely to drive the diamond market into a stronger position in the future.

The RDTI (Rapaport Diamond Trade Index), which is considered as a global benchmark and derived from the average asking prices of the best-quality one-carat diamonds, registered a decline by double digit percentage in 2012, raising the hopes for the lowest price in the recent years. However, the prices rose slightly in January this year with a marginal rise in the index, while the supply discipline adopted by the major producers is expected to keep the prices more stable.

The trade of rough De-Beers diamonds experienced a quiet period owing to an increased demand of non-De Beers goods offering better value than the expensive De-Beers rough. As a result of this, manufacturers who gained marginal profits in December last year are concerned about De-Beers and Alrosa raising the prices for rough diamonds in the first quarter of 2013 due to continual limited supplies from the mining companies.

[genises] 07/5/2013 23:18

Rough diamond prices gained about 12 percent in the first quarter after falling 16 percent last year, the first annual decline since 2008.

The use of diamonds may expand at double the pace of supply through 2020 because of China and India, according to Bain & Co., the consulting firm. Bain forecasts that supplies won't return to pre-financial crisis levels until 2017.

As the Chinese market broadens and consumers there seek a wider variety of goods, that increases demand for more varieties in the spectrum of diamonds mined. While each mine is different, fine diamonds account for a small percentage of production, so increased sales of lower-quality stones provide the biggest boost to revenue.

[andy] 07/5/2013 21:37

Genesis,

But of they were doing that, in the current world economy, they are risking receiving lower prices in the future.

I see US and Japan imploding, China looks dodgy, where are the buyers going to come from to drive the world diamond prices higher?

[varrirob] 07/5/2013 20:11

Interesting point Genesis.

[genises] 07/5/2013 19:20

or the company is seeing what the trend in diamond prices are before putting on the market the bigger and colourful stones.

[mr keeny] 07/5/2013 13:11

Correct ABtwo but in the interims they commented that "In September (2012), when access to the pit was once again possible, lower grade areas had to be mined first in order to gain access to the higher grade K5 and K6 units".

It seems as though the "higher grade K5 and K6 units" may not be as higher grade after all much like the case of BK11!

[abtwo] 07/5/2013 11:38

The price per carat will vary depending on where they are mining in the Main Pipe and is not always due to increased market prices but different qualities from the different geological units.

Looks like the recovered grade also dropped substantially in March-April to below 20cpht.

[bsg] 07/5/2013 11:02

They need to spin their fat salaries out as long as possible.

[hectorp] 07/5/2013 10:50

BAck to square one, Andy.

[andy] 07/5/2013 10:11

H,

FDI are not good at answering emails from shareholders!

try it and see!

[andy] 07/5/2013 10:09

Usual obfuscation in the RNS!

Focus on the increase in value, rather than the poor number of carats, same old same old. (the comment about no high value stones was made to stop speculation about high value stones skewing the overall average price, IMO!)


What was not aid of course is the reason for the lower number of carats, and of course the costs of producing said stones!

Looking at the last reported results, it's likely they made a loss on the production, but until finals are released in December, we won't know quite how much!

Oh the vagaries of AIM!

[spaceparallax] 07/5/2013 09:18

Good to see some positive news

[buywell2] 07/5/2013 08:47

Get to it then and report back

[hectorp] 07/5/2013 08:37

They surely have some , even one or two, high quality stones over the time period , so they , I have to assume are retaining them to sell later, but why.

The lack of other detail about them is however tantamount to misleading shareholders. I think a few rapid E-mails to the company could get some response about this.,

[mr keeny] 07/5/2013 08:15

Ask the company where the 'blue' diamonds are that were found last October and also just how many "high value stones" they have in their inventory.

Bet you don't get an answer.

[diablo1967] 07/5/2013 08:13

Hmmm no comment lol

[buywell2] 07/5/2013 08:12

Perhaps no high value stones were found in any quantity or

Maybe they are waiting for the price to rocket

[mr keeny] 07/5/2013 08:08

Oh well, looks like Diablos forecast of $4 to $6 million per tender (which was quickly reduced from a jaw dropping $6 to $8 million)has been shot to bits.

Knew it would but I do enjoy watching him eat humble pie.

The RNS, volume is absolutely woeful and do not be fooled into think that all 109 buyers where there just for FDI produce as the RNS tries to (mis)lead us all to believe. Other companies also had produce to sell.

The selective price comparison between $84.49 per carat and $101.67 per carat looks better than previously reported but, of course, that was why it was used so as to make sales look better when in fact they are not.

"no high value stones were tendered in April 2013" the declare. I bet nobody can get an answer out the company where the 'blue' diamonds are that were found last October and also just how many "high value stones" they have in their inventory.

Its another poor RNS for me.

[valentine] 07/5/2013 07:45

This is FDI mate! It can, and has done!

[earnestwipplethwaiteiii] 07/5/2013 07:44

RNS: 36k carats sold in Feb, realising $3.02m. 20k carats sold in April, realising $2.06m. Total $5.1m
Naturally the focus of comment from Wilkes was the increase in carat prices achieved, April 20% better than February. However, beyond the bald statement that no specials were sold, no reason given why not. Nor any given for the small number of carats in both tenders, though we can perhaps guess at the reason for that.
As ever, no news on CAPEX funding.
This cannot continue for ever.

[diablo1967] 07/5/2013 07:41

At last some positive news winde what the cash situation is now ? Not good that no high value stones included was this because they were all nicked or didn't they find any Regards