Firestone Diamonds Share Discussion Threads

[tanelorn] 31/3/2017 12:48

First Element Diamonds, not only arrange the sale, but clean, sort and categorise the diamonds ready for viewing. Presumably this couldn't possibly explain the difference between that which is recovered and that which is available for sale on a given date.!!!

SB said "I am not holding goods back".


Nonetheless negative views and critique can be useful as few of us are without bias.

[andy] 31/3/2017 11:33

Good question,

Why not email them and ask them?

It's hardly price sensitive, in fact they should inform us if that is the case, IMO.

[abtwo] 31/3/2017 11:18

Given the first sale consisted of 75,936 carats and the second sale saw 51,654 carats sold did they withhold ~6,000 carats given they indicated they recovered 57,723 carats?

[andy] 31/3/2017 09:47

tanelorn,

Many thanks for that synopsis, very interesting.

[hutch_pod] 29/3/2017 13:20

Yes, i would have used logic to say higher loti meant higher dollar costs and hence lower tax - but i guess it's different in the local subsidiary accounts - I do see the $4.8m tax charge labelled "effect of tax in foreign jurisdictions".

The impact on the headline loss after tax figures is pretty substantial and kind of hard to interpret (for me..).

[abtwo] 29/3/2017 09:35

@tanelorn "The local currency Loti ( maloti ) strengthened against the dollar..." - resulting in an increase in their operating costs - not something most companies want to see when they already have a shed load of debt to pay down & tax credits.

[varrirob] 28/3/2017 14:27

Thanks Tan, much appreciated as always. Hope you are keeping well and maybe see you at the next AGM.

[tanelorn] 28/3/2017 12:28

The local currency Loti ( maloti ) strengthened against the dollar resulting in a perceived improvement ( lower debt ) ratio to the dollar, thus an increased debit, hence tax !! provision... this will change from year to year ( for as long as the debt exists ).

Remember (in accounting terms) debits are positive credits are negative ! - not what the bank tells you. !

If the local currency weakens against the dollar, the effect is reversed.

... can i go now, ? ... i'm posting too much, no more reading my waffle.!!

[pottermagic2310] 28/3/2017 12:24

Perfect Tanelorn and thank you very much for your efforts

[librag] 28/3/2017 11:56

Hi tanelorn,
Looks good and thanks for setting out salient points.
One question though ...
re. "1) Cash flow and expenditure with capital and interest repayments moving forward - breakeven moving to positive"
How does this work if the loss per share increased from 1.5 cents (H1 2016) to 2 cents (H1 2017).

Thoughts? Is it because of non-recurring costs to date?

Thx.

[tanelorn] 28/3/2017 11:13

My recollections from the conference call
1) Cash flow and expenditure with capital and interest repayments moving forward - breakeven moving to positive
2) Not expecting cash funding issues. Cash at end of March = $9M with debt facility of $15M if required - CFO content.
3) Further Cap expenditure this year ( to end June 2017 ) not expected in any substantial amount.
4) Cap exp next year at only $2M
5) Main ore body predicted at 30cpht, currently the mixed low grade 14.4cpht is improving to 20cpht, expected to continually improve but some mixing will always be required depending upon operation mining logistics. 30cpht at main body is expected, some finer diamonds maybe missed in favour of better quality.... market is currently not favouring finer diamonds, and even their inclusion is unlikely to lower the $carat sale price achievable going forward due to the quality of diamonds being found albeit with lower grade ore, so SB was expectant of good future sales. At the initial Feb sale 90 bids at the second march sale 110 bids and all lots had a least two bidders each.
6) Feb sale included 1.1 $M carat diamond, not replicated in March sale, but still 107 $/carat, based on ore mix and lack of exceptional diamond actually shows improvement in the standard quality of diamond, for the March sale.
7) Overall end of commissioning will be declared upon the following conditions:
a) 90 day steady processing at nameplate capacity
b) Fresh Ore from Main Body continual and mixing as normal operating requires
c) Adequate grades cpht achieved.
Expected by end June 2017 ( a liitle slower than i expected )
8) Plant now moving from steady 200,00 tonnes per month to 300,000
9) Will continue to pay shares in lieu of interest until such time as prudence or exceptional recoveries dictate otherwise.
10) Very pleased with improving quality of diamonds recovered, small coloured stones recently found; Purple, Blue, Lilac, Pink, " diverse range of good colours, along with vivid yellow "
11) FDI's diamonds are less fluorescent than those of other mines. ( editors note : less fluorescence is good !! )

My view on progress is a month slower than i was expecting although overall optimistic future...

P.S. I do seem to be posting way too much on this thread, think i'll give it a rest for a while !!

[pottermagic2310] 28/3/2017 09:43

The MV is currently down to ~£145m
Steady output could be approx. $15m per Quarter - around $60m/annum
What was the estimated life of the Mine declared in the Business Plan ?
What should that mean to the MV (and SP) once the Market wakes up ?

Above and beyond those basics, let's hope we find some fantastic Diamonds every 1/2 year to boost profitability

[tanelorn] 28/3/2017 09:42

ABtwo> Interesting point of view, although probably too critical.imo ... The Indian governments decision to withdraw larger bank notes from circulation was more relevant upto the reporting date, as subsequent reports in the mainstream diamond news show a nomalisation occurring and continuing.

There is no indication of withheld carats, and your thought of $107 being a balance going forward is imo too much conjecture...

50k carats over 6 weeks is 40% of target, with improvements in calibration continuing and a move to the main ore body in progress. Wet ore previously caused a slow down in part of the sifting process and the heavy rain will not have helped, nonetheless i believe these problems are now mainly overcome.. negatives are diminishing..imo

I am joining the analysts conference call ( i have a significant holding and Tavistock were content to allow my inclusion ) and will report back in due course, ( I am probably not going to participate, but will hopefully glean some useful info. ).

Initial view is steady as she goes...

[bigglesbingham] 28/3/2017 08:24

Previous post was from memory. Thanks for correcting. The first sale presumably had longer production run up than second sale hence differential

[rollthedice] 28/3/2017 08:21

$13.7m - (1st Sale) $8.14m = (2nd Sale) $5.56m

[bigglesbingham] 28/3/2017 07:17

£4.9 m all sold. True figures will be seen may and June sales.Hopefully with some juicy diamond sizes

[bigglesbingham] 28/3/2017 06:02

Tanelorn - do they post open results or is it a guarded secret??

[tanelorn] 27/3/2017 17:44

The following link shows all Firestone sales for forthcoming year..... 1st Element seem to be doing well !

[tanelorn] 26/3/2017 20:25

Having re-read the previous news releases, there is some doubt in my mind whether we will get a notice tomorrow or have to wait until the Mid April quarterly release... I'm pretty sure that during my telephone call to Tavistock (FDI's PR ) i was informed we would hear on Monday, but there is some reservation in my mind.

In the past February example, information was forthcoming, but if we as investors need to be 'trained' to only expect reports quarterly, we may have to wait.

There is some logic in making us wait, ie if results were below expectation, ( but for good temporary reasons ) it would be soothing / calmer, if the quarterly report were then to explain along with the announcements of larger finds and good cpht calibration progress.

I know i am contradicting my earlier posts, we'll just have to see.

If the share price falls further i think it's only the faint hearted inexperienced investors.

[bigglesbingham] 25/3/2017 09:03

I concur with both of the above comments, don't like the recent weakness though.

[pottermagic2310] 24/3/2017 12:28

No new News yet BUT I love this Company... the excitement building is incomparable with other Business's I'm invested in

Happy Days
hxxp://www.firestonediamonds.com/investors/new-alerts/regulatory-news

[bigglesbingham] 20/3/2017 13:47

No offence taken, let's keep fingers crossed for good results

[tanelorn] 20/3/2017 09:37

Sorry for my ungraceous remark made earlier, which i've since deleted.