Firestone Diamonds Share Discussion Threads

[mikkydhu] 21/10/2016 07:49

Well done, FDI. Only great management could have achieved all this. Roll on the fancy yellows!

[bigglesbingham] 08/10/2016 00:03

You two the same guy? / girl? Looks like a double act . Ps it's a great investment at these levels !!!

[pottermagic2310] 07/10/2016 20:59

Sorry, misread a few things. So infact:

1) $112million of debt/borrowing to put everything in place and become operational.
2) 1,000,000 carats/annum expected at $132/Carat
3) All-in Costs (to Sale) of approx. $60/Carat
4) Potential $132m/annum income vs potential $60m/annum Costs
5) 75% attributable to FDI, plus an 8% premium, or approx. $58m/annum (25% to Gov?)
6) Minimum 10-year life based on best estimate of Reserves + only 50% of 'inferred'
7) Approx. $580m PROFIT over 10-years... which appears to pay off the $112m of debt already accrued quite comfortably
8) It appears to be a sustainable Business without any key dependency on i) 15 years Mine life ii) or the total 'inferred' Resource being present iii) nor any significant and regular haul of much more valuable Gems, all of which would prove to be a BONUS !!

So if this becomes operational on time and within forecast costs, then produces the targeted level of Gemstones of the expected quality OR better, it's surely worth in excess of the the current £160m or $205m ?

[librag] 07/10/2016 15:42

pottermagic, see here

Shows a/c upto 2015. Debt:equity ratio of 0.25, though not current.

[tanelorn] 07/10/2016 15:11

Brilliant, quick analysis except number (1) circa 186 m$( still have money left )

They are expecting to repay over 4.5 years WITHOUT larger diamond recovery which has already been 'proven' but never guaranteed.. IMO, i guess two years, we shall see.

I also agree with your basis per carat analysis (2) but the market is more cautious.

[pottermagic2310] 07/10/2016 15:00

I've looked at the fundamentals for this today, having been brought to my attention elsewhere.
Is the following about right ?
1) $2billion of debt to put everything in place and become operational.
2) 1,000,000 carats/annum expected at $132/Carat
3) All-in Costs (to Sale) of approx. $60/Carat
4) Potential $132m/annum income vs potential $60m/annum Costs
5) 75% attributable to FDI, plus an 8% premium, or approx. $58m/annum (25% to Gov?)
6) Minimum 10-year life based on best estimate of Reserves + only 50% of 'inferred'
7) Approx. $580m profit over 10-years... which doesn't appear to pay off the $2billion of debt already accrued ???
8) To be a sustainable Business there appears to be a heavy reliance on i) 15 years Mine life ii) total 'inferred' Resource being present iii) significant and regular haul of much more valuable Gems

Looks over-priced to me at £160m today

[tanelorn] 07/10/2016 11:54

The following link provides one of the best informative external reports on FDI. I like the less linear style.



Also with Sterling under pressure, i wouldn't be surprised if FDI were taken-over within the next twelve months, however as three shareholders own more than 54%, the price would need to be keen. ! imo etc

[varrirob] 06/10/2016 12:47

All starting to take shape. Should start to get some news soon. They must be about ready if not doing the final commisioning of the plant. Fingers crossed.

[tanelorn] 06/10/2016 12:21

Finncap raises target value to 63p...

"...Firestone Diamonds PLC (LON:FDI) had its price objective increased by stock analysts at FinnCap from GBX 52 ($0.68) to GBX 63 ($0.82) in a research note issued on Thursday...."

[tanelorn] 03/10/2016 15:55

superg1> I wholly agree with your post.

The second return water dam should not delay initial start, the rainy season is approx Late Oct to Mid April, so should be okay.

It is perfectly reasonable to expect commissioning hiccoughs.

Regards
Tan

[superg1] 03/10/2016 13:05

Tane

I think that article has caused some selling and a dip. It was getting a bit hot pre open as it was exceeding short term price targets, so not a bad thing for a little tick back on the apparently never ending up move.

Mine launch should see some action and no doubt some cashing in for those in lower down.

[tanelorn] 30/9/2016 17:47

"Under declare and over perform" or something similar, was previously expressed by the management, a similar approach and attitude as shown by Lucara's directors.

Nonetheless whilst i'd expected an update tonight we are still well informed overall.

I shall wait patiently like everyone else.

[varrirob] 30/9/2016 11:53

I wonder if we will get an update on MOnday as we head into Q4.

[varrirob] 27/9/2016 19:59

Hi Tan, topped up a bit. Reduced my BOD holding and added here. Now just waiting for the next round of announcements. Hopefully they are all favourable.

[ih_566757] 27/9/2016 17:01

Now that's a chart!

[tanelorn] 27/9/2016 16:27

Hi V,

Did you manage to top-up a bit, expect that they are running ore right now, we shall hear shortly.
Regards

Tan

[varrirob] 27/9/2016 15:20

Just keeps ticking up bit by bit :-)

[mikkydhu] 23/9/2016 11:58

tanelorn,

I think he has withdrawn the statement.
See the IOF tipsters thread.

[tanelorn] 23/9/2016 10:29

Hi Superg1>

Please could you provide the link for your statement as i cannot find anything other than 2014 ?

If there was a coup attempt South Africa would not tolerate such a move as was demonstrated in 2014. I would be extremely surprised of a repeat. !

[superg1] 23/9/2016 08:57

Military coup attempt in the last few days in Lesotho, will that affect anything?

[superg1] 22/9/2016 17:15

Yes saw that, impressive and just before the mine starts up.

[bigglesbingham] 22/9/2016 16:57

1000000 shares bought by non exc chairman at 44.5p. Nice !!!!

[varrirob] 14/9/2016 22:46

Hoping to top up tomorrow.