Firestone Diamonds Share Discussion Threads

[bigglesbingham] 02/2/2014 21:14

Many shareholders will have sold at around 4-4.5p to release funds to buy back at 3p and this is what pulled the price back to sub 4p. They will raise the money as there is no alternative for major holders here.

[andy] 02/2/2014 13:44

ricardo,

LOL! Once the £40 million raise is attempted, where do you think the bid will be?

Strange the the bid is the same as the mid price, normally it would be lower, but the market is closed.

The company needs to raise well above the current market cap to raise £40 million, so you would have to ask yourself at what price they can get that away?

I know a few holders and none are planning to participate, so that raise may be more difficult than you think!

And if you read through the terms of what they have announced, it's not certain yet, just a framework depending upon other factors.

Interesting that you defend Tom as I notice his website has just tipped FDI!

There is a thread on ADVFN where there are many examples of Tom's poor tips over the years, I suggest you refer to it rather than quote one isolated example.

Using a scattergun approach, there are bound to be some gainers, using the law of averages I guess.

I always advocate making one's own investment decisions, and have never suggested otherwise.

[ricardothebrave] 02/2/2014 11:57

Andy, I bought at 2.5p and can now sell at 3.75p. That's 50% in anyone's book I'd guess. The spread irrelevant to me.As for charges this is relative to your investment. If you've only invested £50 then the charges will be substantial part of your overall cost, if you've invested £5000 then clearly this isn't so much.Yes I do think they'll raise the £40m from existing shareholders. At today's price that's an instant 25% return, maybe more if you hold on and things go well. As for Tom W, I remember the RRL boys being up in arms when he put a sell marker on at 5p sometime back, just look at the share price now. Ouch. I find its best to make your own decisions when investing your own money. That way the success or failure is entirely down to you.

[ricardothebrave] 01/2/2014 08:54

Andy, I'm not sure what your point is on the Shares mag tip, as I'm showing a 50% paper profit at the moment. Even from 2.5p to 3p that's 20%.I realise people are sitting on substantial losses here, that can't feel good. However there must have been a reason not to sell, and now that a large chunk of the financing is in place the future does look better, albeit with substantial dilution. Maybe the 3p offer is a chance for those long termers to average down a little. I guess we all make our choices from an individual point of view.

[phoenix1234] 30/1/2014 14:31

Buy tip just up

www.shareprophets.advfn.com/views/3765/firestone-diamonds-passes-most-important-milestone-a-recovery-punt

[phoenix1234] 30/1/2014 14:28

buy tip just out

www.shareprophets.advfn.com/views/3765/firestone-diamonds-passes-most-important-milestone-a-recovery-punt

[earnestwipplethwaiteiii] 30/1/2014 10:44

One assumes that "other business interests" include penning his autobiography entitled "Nine Years at the Trough", to be published by Kenny Publishing.

[andy] 30/1/2014 10:26

He was certainly successful at banking his salary!

[begorrah88] 30/1/2014 08:00

Tim Wilkes

'Having served over nine years with Firestone at the senior management level, which culminated in the appointment as CEO in March 2011, Tim is now moving on to pursue other business interests'

I wonder if he'll be as successful in his next venture as he was at FDI

Rats and ships?

[clinton baptiste] 30/1/2014 07:58

Hallelujah.

[logans run] 29/1/2014 11:56

Global demand for diamonds will continue to outstrip production in 2014, according to broker Charles Stanley Securities
hxxp://www.scoop.it/t/drill-watch

[andy] 28/1/2014 10:02

Ricardo,

So, taking bid offer spreads into account, even the earlier Shares tip wasn't that brilliant then!

I know a couple of holders who won't be participating, neither will I, so the shareholder part of the raising may be interesting!

They are trying to raise considerably more than the entire market cap of the company, and going to ask shareholders that have been burned by this farce over a period of years? well I wish them good luck with that!

[bam bam rubble] 24/1/2014 20:11

New investor Pacific Road Capital's only diamond investment to date was in the UK registered Mantle Diamonds.

Mar 2011: $15m to recommission Lerala diamond mine for 40% equity stake in Mantle

...which received a low-ball offer 2.5 years later;

Sep 2013: ASX-listed Kimberley Diamonds offered A$6m shares to buy Mantle Diamonds

[ricardothebrave] 24/1/2014 19:22

Andy,I suppose the nice thing is they tipped it a few months ago without the financing in place. I managed to get in at 2.5p, so quite happy to hold for the long term now and take my 3p shares as part of the offer.

[varrirob] 24/1/2014 11:08

Ahhh but think of the long term gains. This is now a bottom of the drawer share for me now. I have averaged down to being only 40% down on my investment lol but in a couple of years time who knows what will happen. For all we know it could be another LUC (i hope so) and then it will have been well worth the wait.

[andy] 24/1/2014 00:58

ricardo,

Well that's profound!

The 3p financing sort of guarantees that!

With so much dilution, and so far away from production, it's clearly a buy and hold rather than a buy for a profit!

[ricardothebrave] 23/1/2014 22:23

Nice write up in this week's Shares mag. Buy and hold anything around 3p.

[superiorshares] 21/1/2014 21:20

brings me neatly to my post some moons ago ! its the consolidation next, then take another look for a potential punt ?

[andy] 16/1/2014 09:41

gobbyash,

Exactly!

And now they have ceased production to focus on the plant upgrade, so no revenue for at least two years, probably longer, as their adherence to timelines in the past has been poor, and there always seems to be 'slippage' in any mining project.

I still cannot believe people are paying 30 - 40% ABOVE the placing price for stock now when there is no prospect of production for so long, and there are quite a few hoops to jump through before all the money becomes available!

The £40 million shareholder financing looks a big ask IMHO, for example!

I won't be participating for sure.

[gobbyash] 16/1/2014 08:55

When was the last Diamond sale? Seems like a long time ago..

[bageo] 15/1/2014 17:34

Surprised they managed to raise all this money. Huge dilution, the firestone way, but there weren't many alternatives.

I think the announcement needs a proof read! If seems to say if warrants exercised then each of Pacific Road and RCF VI would be able to nominate 27 directors to the board! Perhaps it should be equivalent percentage of the board which would link with the 2 mentioned later.

"The Company has also agreed that going forward the Board will not be greater than eight and that for as long as Pacific Road and RCF VI each hold more that 10 per cent. of the issued share capital of the Company, they will each be able to nominate one Director to the Board.
On the exercise of all of their respective Warrants, Pacific Road and RCF VI will each be entitled to nominate such number of Directors to the Board that is equal to their percentage holding in the Company, rounded down to the nearest whole number.
On exercise of the Warrants in full, assuming the Company has not issued any further Ordinary Shares and the Company has not paid any fees or interest due to Pacific Road and RCF VI through the issue of new Ordinary Shares, Pacific Road and RCF VI will each hold approximately 27.1 per cent. of the Company's then enlarged share capital.
Therefore on the basis of a Board of eight and on conversion of all of the Warrants, Pacific Road and RCF VI will each hold more than 25 per cent. of the Company's then enlarged share capital. Accordingly:
· Pacific Road will be able to appoint two Directors to the Board for as long as it holds more than 25 per cent. of the Company's issued share capital; and
· RCF VI will be able to appoint two Directors to the Board for as long as it holds more than 25 per cent. of the Company's issued share capital."

[andy] 15/1/2014 09:14

Warnado1,

I agree eye, very watering!

Not sure why people are rushing to buy at 50% OVER the placing price with this amount of dilution?

It was always going to be so, and with their non adherence (amongst other things!) to timelines, I would think 2017 the more likely date.

FDI have all but ceased to be owned by existing shareholders with this announcement!

And one wonders whether they really can raise £40 million from new and existing shareholders? I think that will certainly be challenge personally.

However, credit where credit is due, they DID manage to arrange a financing I thought would be beyond them in this dire market.

[bsg] 15/1/2014 08:58

There will be a consolidation next.

[warnado1] 15/1/2014 08:29

Eye watering dilution.

From 753,753,234 shares to 3,033,760,420 shares and 3,521,624,792 shares including warrants.

I also note the directors have not really supported this massive fund raising dilution.

Billions and billions of shares.