Firestone Diamonds Share Discussion Threads

[andy] 13/11/2015 21:05

earnest,

Me too, but this is a respected mining analyst!

And he is quoting facts!

[andy] 13/11/2015 14:32

Valentine,

Hope you're well!

From a respected mining analyst today!

---

"Reported this week is a mere $70m of goods sold at the latest De Beers sight. This is unprecedented and could herald a massive change in the industry in the coming months... We are in unknown territory here"

---

Doesn't read too well!

[valentine] 12/11/2015 11:55

Diamonds as big as yer fist eh? Yer gotta laugh!!!

[andy] 28/10/2015 10:59

earnest,

I totally agree, FDI sadly are going to commence production at a low point in diamond values.

I have set my buy target at 12p

[earnestwipplethwaiteiii] 28/10/2015 09:11

Petra is the blue chip of diamond stocks. To see it 65% off its highs last year is some indication of the near-term diamond market prospects IMO.

FDI looks poised to break below 20p soon.

[andy] 28/10/2015 08:20

a further comment re the current state of the diamond market, this time for Petra Diamonds, from an analyst.


Petra Diamonds (PDL)

The Q1 production update indicates that things are poised in the diamond market.

Owing to the slowdown in demand and prices, the mainly South African producer didn’t actually have any diamond tenders and thus any revenues in Q1. They have however had their first tender in October and plan the next in December and four more before the end of their June fiscal year.

On the October tender, prices are down 8.8% on those achieved in the end June quarter and it will be interesting to learn the trend for the December one.

[andy] 27/10/2015 22:18

Varrirob,

OK look forward to seeing you there.

[varrirob] 27/10/2015 21:03

Hi Andy, I will certainly try and get the day booked off. Stuck with it this far so might as well see it through till the end.

[andy] 27/10/2015 18:13

The Company's Annual General Meeting will be held at the offices of Tavistock Communications, 131 Finsbury Pavement, London EC2A 1NT at 10.30 a.m. on 2 December 2015.


Anyone planning to attend?

Varrirob?

Holding it during Mines and Money is a bit naughty though,although I suppose it could be argued it's only two stops on the tube and by holding it early in the morning it means you can go on up to Islington afterwards.

[andy] 22/10/2015 11:34

earnest,

Well I subscribe to the depression theory, so this looks bleak for FDI, if I'm proven right.


A major war is the other possibility, so not very cheerful either way.

[earnestwipplethwaiteiii] 22/10/2015 10:57

Andy, all a bit deja vu for those of us who've seen these cycles come and go over the last ten years and more. The only thing we have to decide is whether, as some think, this is going to be a depression which will leave diamond prices low for years to come rather than the more usual year or so.
Certainly, with new plant production still a minimum of a year away, I'm not inclined to do more than keep a weather eye on FDI at present.

[andy] 22/10/2015 09:37

Earnest,

Another quote from the same analyst this morning, re the Anglo American results out today.


"As diamond prices continue to fall De Beers continues to scale back production to try to offer some support."

[andy] 19/10/2015 11:23

earnest,

Well the quote above is from a respected analyst, so is factual.

The rest is my opinion, which I have held for a long time, that the world economy is not fixed, and in fact has huge problems.

If FDI commence production there should be an opportunity to make money here at some point, as you rightly say.

Timing is everything........

More QE on the way per chance?

[earnestwipplethwaiteiii] 19/10/2015 11:05

Andy,

Always enjoy these cyclical disaster stories. Of course if you're going to invest, the trick is catching as near to the bottom as possible, when sentiment is at its worst. We're on the way but I don't think we're there yet, another six months may see us in the zone.
Just an opinion of course, I get it wrong with the best of them.

[andy] 19/10/2015 10:59

This is from a respected analyst, and published this morning!


"According to Rapaport, the latest De Beers diamond sight was a bit of a disaster, with prices down 8-10% and sightholders allowed to defer up to 75% of allocated diamonds.

It is thus no surprise that the sale only achieved US$200 m of revenues, as compared to the usual $500 m or so."

-------

That must be of concern to FDI, the market is clearly in difficulties and not in good shape!

It does begin to look as though FDI will be commencing production in a poor diamond demand price environment, especially as more honesty about the true state od the world economy is starting to leak into the mainstream press, who have been pretending everything is rosy for far too long, when it clearly isn't!

[earnestwipplethwaiteiii] 15/10/2015 11:07

I'd be surprised if Tucker said anything else. However, the proof of the pudding, etc.

[proactivest] 15/10/2015 10:49

Video interview with Tango's Tucker



Tango Mining (CVE:TGV) boss Terry Tucker says he is confident the firm will secure the US$8mln it needs to wrap up the purchase of Firestone Diamonds’ (LON:FDI) Botswana operations.

Tango has managed to turn around a preliminary economic study for the BK11 kimberlite pipe in Botswana just a few short months after agreeing terms for its acquisition from former owner Firestone.

Tango’s PEA shows the BK11 pipe to have a net present value of US$40mln at an 8% discount rate and excluding the overall US$8.8mln acquisition costs.

The company has until April to pay up and is in talks with financiers in London, South African Botswana and Canada.

[earnestwipplethwaiteiii] 13/10/2015 10:47

A good chance it's a no-go and Tango pull out? How much would they stand to forfeit?

[andy] 13/10/2015 08:23

They've given Tango more time!

I guess if nobody else was interested then this makes sense, raising money is really tough right now.

I wonder how Tango are going to raise $7.65 million by next April when they cannot raise $300,0000 currently?

-------



Further to the announcement of 2 October 2015, stating that Tango Mining had informed the Company that it had not been able to pay US$0.3 million into escrow as a deposit by 30 September 2015, as stipulated in the CSA, Firestone and Tango Mining have agreed to amend certain terms of the CSA, via the Amendment Letter, such that completion of the Disposal is subject to, inter alia, satisfaction of the following conditions within nine months of the date of the CSA (the "Drop Dead Date"), being 8 April 2016:

-- Tango Mining raising the balance of the consideration, being US$7.65 million;

-- Tango Mining raising the aggregate ongoing, cumulative cost of BK11's care and maintenance programme from the date of the CSA up to the earlier of the date of completion of the Disposal and the Drop Dead Date (subject up to a maximum of US$40,000 per month);

-- the parties obtaining Botswanan ministerial approval for the transfer of the controlling interest in Monak; and

-- Tango Mining receiving the requisite approvals by the TSX Venture Exchange in respect of the Disposal.

[andy] 12/10/2015 11:59

Earnest,

Not with the current world slowdown!

I was looking at sub 20p as being a good entry point, now thinking sub 15p, possibly 12p.

[valentine] 12/10/2015 11:44

Diamonds as big as yet fist!? Huh!

[earnestwipplethwaiteiii] 12/10/2015 11:39

Licking your lips yet, Andy?

[earnestwipplethwaiteiii] 03/10/2015 11:03

Oh dear, what price Q4 2016 startup now?

[andy] 03/10/2015 10:42

We've been Tango'd!

They can't raise $300,000!

What hope for the rest of the money?



RNS Number : 0879B
Firestone Diamonds PLC
02 October 2015
Firestone Diamonds plc
("Firestone", the "Group" or the "Company") (AIM: FDI)

Update on the sale of the Botswana operations

Further to the conditional sale agreement ("CSA"), entered into by the Company, in respect of the disposal of the Company's Botswana operations to Tango Mining Limited ("Tango Mining"), announced on 9 July 2015, Tango Mining has informed Firestone that it has not been able to pay US$0.3 million into escrow as a deposit by 30 September 2015 as stipulated in the CSA.

Accordingly, Tango Mining has now formally requested an extension to the previously disclosed timetable, in order to complete their fundraising activities in relation to the consideration still due, being US$7.65 million, and Firestone is currently in discussions with Tango Mining to consider its request.

Firestone will update the market when the parties have reached agreement on the revised terms and timelines or if discussions with Tango Mining are terminated.