Firestone Diamonds Share Discussion Threads

[superg1] 30/5/2017 08:53

Sitting on there fence having studied the Lesotho diamond mines.

I thought the climb to 55p was high enough on the basic of mine not fully started at the time and doing tailings in the beginning where they stated CPHT would be lower.

The key factor of running at full tilt recovering smaller diamond or otherwise is over-ridden by the simple calculation method of cost of ore mined per tonnes against the ore value.

I take the tweaking to see if the recovered diamonds improve margins of ore value v ore costs.

EG

If they were to reduce the ore throughput the fixed costs are more or less unchanged so the ore costs would go up per tonne and that would be weighed against value pre tonne gained.

Now is surely the time to sort the optimum ore cost v ore value before they go after the main body of kimberlite.

[bigglesbingham] 27/5/2017 07:25

What would make it a consistent winner in your eyes potter?

[pottermagic2310] 26/5/2017 11:02

I've been expecting the share price to drop every Quarter over the 1st year as production continues and quarterly Sales are eventually realised, with equivalent temporary peaks post Sales.
I think over time (4 Quarters) the Market will form a view that either this is a consistent Winner or consistently average or underperforming towards a lower level plateau.
I'm happy to maintain my position 'til year-end to see which way this really swings.

[varrirob] 25/5/2017 22:22

Slightly frustrated with the recent drop in share price When you've been holding for as long as some of us have I think it feels as painful to watch, especially as things have moved in such a positive direction recently.

[ifthecapfits] 25/5/2017 10:19

They must be sat on some more large 'fancy's' by now. RNS them :)

[tanelorn] 19/5/2017 18:38

Some decent buys today, coinciding with the final day of First Element auction conclusion. Hope it's not coincidence. Possibly a transfer between agreed parties.

[varrirob] 17/5/2017 14:23

Blimey, a bit of positive movement.

[bigglesbingham] 15/5/2017 12:35

This is the fund with over 7% of the stock and building . Nice performer/stock picker

[tanelorn] 11/5/2017 11:11

Thanks ABtwo >

During the recent conference call, which you may have listened to, they absolutely confirmed the plant was hitting name plate capacity over extended periods.

Upon questioning by an 'analyst', 'end of June' was agreed as probable date for declaring completion of commissioning !

[abtwo] 11/5/2017 09:08

Hi Tanelorn,

They say that nameplate capacity was achieved on numerous occasions - if they were approaching continuous operations at the plant capacity the update should/would have said "...for extended periods...".
There is no other plausible/credible way they can have increased the recovered grade by 25% other than through the increased recovery of smaller diamonds - it is unclear (on purpose) if it was the shut downs (that were scheduled) or the modifications that have the reduced plant throughput.
Progress to date is good but you need to read between the lines to understand how they have achieved certain results and what the future implications are.

[bigglesbingham] 10/5/2017 13:29

Don't understand the tick down here.

[tanelorn] 09/5/2017 11:29

Hi ABtwo>

Yes the plant was periodically shut down to make calibration adjustments, thus affecting throughput during that period. This does not prove that future milling is reduced. Management maintain that they are at, and/or, maintaining 300,000/month. Your supposition maybe correct but please could you explain how post modification/ later throughput remains seemingly ontarget?.

I accept that more small diamonds ( if true )will affect $/carat average as prices for small diamonds are currently weak but it's good to see that costs per tonne processed are at the bottom end of guidance US$12, despite weakness in the exchange rate, flagged mischievously in an earlier post of yours (2656). Ultimately we will have to wait until the picture is clearer, maybe the 'end of year' statement.

Low breakage mainly due to softer ore? I have zero experience on whether 1% is a good starting point.? What is your opinion? and on current time-scales and progress todate.

[abtwo] 09/5/2017 05:19

@tanelorn : Overall a good update from FDI.
Note however the comment "The modifications implemented were primarily designed to address the low carat recoveries experienced in the previous quarter. While these modifications impacted on the volume of tonnes treated, and in turn carats recovered"

IMHO this indicates they have reduced the bottom cut off on the plant sizing/washing screens to get the smaller diamonds previously lost to tailings - unless they add additional screening capacity this results in a lower throughput (as they stated).
The flow on from this will be a lower average diamond price for run of mine stones (excluding one off exceptional stones).
So a bit of a double edge sword here, more diamonds but smaller and therefore lower value along with lower throughput (until they get to the harder ore).

Currently low breakage but this is to be expected when processing the softer ore (less crushing required).

[altom] 26/4/2017 09:40

Very strange price reaction. 3 times as many bought as sold (still only peanuts) but price marked down. Shareholders here all seem delighted. I certainly am.

[pottermagic2310] 26/4/2017 08:46

Generally very good news and I'm more hopeful than ever that highly efficient, effective and profitable Operations will settle in nicely and significant Rewards will be reaped by all invested Parties.

I like that the Business Plan has always been to provide a quarterly update and that they've been doing so successfully and that those updates are always very meaningful, full of progress updates, facts & figures - a real Business doing the business really well.

Happy Days

[bigglesbingham] 26/4/2017 08:41

When we say markets don't like it only £7500 have been sold.

[bigglesbingham] 26/4/2017 08:32

The rns was very good, the next standard rns is July 2017 which is a cause for concern as no news for aim stocks invariably means drifting share price however I firmly believe there will be intrim rns's stating large gem discoveries.

[earnestwipplethwaiteiii] 26/4/2017 08:23

There's always a few trigger-happy punters selling on news, and that would be a pretty poor excuse to do so, IMO. A good buying opportunity may present itself in coming weeks before the next news.

[ifthecapfits] 26/4/2017 08:08

Great RNS - yet share price drops. Market doesn't seem to like it too much!

[altom] 26/4/2017 07:18

I was totally wrong. Amazing! This unexpected (by me) Update seems outstanding. 110 ct.
gem quality. What will that sell for? Tonnage way up. What will next Sales Figure be?
£20mill? This is getting very exciting.

[earnestwipplethwaiteiii] 26/4/2017 07:17

That's what I call a decent RNS

[pottermagic2310] 21/4/2017 09:39

You would hope the timing of the release of a quarterly report would coincide with excellent new News regarding most recent Sales outcomes along with any additional good news about additional, valuable Diamond recovery... in a sparkly, diamond clad World
;-)

[altom] 20/4/2017 20:28

I hope you are right tanelorn, but I doubt if we will get any more news before results of next sale, 2nd week in May I think. Please somebody put me right if I am wrong.
glta.