Firestone Diamonds Share Discussion Threads

[tanelorn] 19/1/2018 22:13

pottermagic>

Surely this isn't news?,,,, Gem Diamonds have might as well be twelve hundred miles away,,,, ABtwo is just being mischievous.

[abtwo] 19/1/2018 05:55

So near and yet so far : hxxp://www.diamonds.net/News/NewsItem.aspx?ArticleID=59789

[pottermagic2310] 18/1/2018 21:17

That's the point, there's a belief that far too high a volume of illegally acquired Gems are bloating the established Markets, reducing the value of Goods traded generally... we want the illegal stuff driven underground.

[andy] 18/1/2018 15:13

potter,

Interesting, presumably each diamond will have to have an identification number or code?

I think that may take some time to establish, and will not suit everyone!

It could drive some jewellery trading underground in fact.

[pottermagic2310] 18/1/2018 14:51

Blockchain tech to be introduced to control Gem transactions according to De Beers... which will help distinguish the legal from the illegal and improve Market conditions for our Product... no idea when it's going to happen though

[pottermagic2310] 17/1/2018 14:03

Seems to be only the News we should expect, taking all things into consideration, so I'm calling this a +ve and expecting better over the next 6 months.

[tanelorn] 17/1/2018 09:10

Well the figures are approximately what i thought + 3 US$

Grades expected to improve second half of year (yr end 31st June)
Lets hope Zimnisky's correct with 2018 rough price increases.
Plenty of time to find better diamonds as 'we' descend!? Cash on hand buys time.

[abtwo] 17/1/2018 08:26

Sort of better numbers, but hampered by the lower recovered grade - quarterly revenue of US$12.98 per tonne (excluding royalty cost? so probably US$12.45/t) versus costs of US$11.60. Still not enough to even pay interest costs :-(
They still desperately need some larger quality stones.

[earnestwipplethwaiteiii] 17/1/2018 07:10

RNS out - better figures.

[librag] 16/1/2018 10:23

True but that's the thing about recovery potential ... IMO watch this space.

[buywell3] 15/1/2018 18:37

Called this POS right though eh

[librag] 15/1/2018 11:01

tanelorn:
type slowly he's hard of thinking.

[tanelorn] 14/1/2018 21:23

Is that facetious or a prediction !! lol

[buywell3] 14/1/2018 19:36

FDI now a penny share then

Not many would have predicted or thought that eh ?

Still you never know at times like these blue big diamonds just like rabbits pop up unexpectedly

[varrirob] 09/1/2018 22:10

We need all the help we can get. Some positive news flow this month would help as well.

[abtwo] 05/1/2018 09:40

Some signs of some 'green shoots' in the rough diamond market based on the recent Rapaport news.

[pottermagic2310] 01/1/2018 14:09

Varrirob - echoing my sentiments. I like the fact the Board have implemented a far more conservative Plan and are sticking to the downside for the foreseeable future... which is why I bought some more recently at the obvious Price whilst the Offer was taking place.

[andy] 30/12/2017 00:25

Gentlemen,

Many thanks for taking the time to inform the rest of us, much appreciated.

[tanelorn] 29/12/2017 20:34

Rob, Thks,

I also took from the meeting that Lucio was sticking to the $80ct model and not including any potential larger finds which at least means that there is no artificial expectation around the numbers. If we hit the $75 - $80 ct marker then firstly the mine is viable and we will gradually pay off the debt and generate profit but also any large diamonds of quality will also signal a game changer.

Jan imo good on above !

[varrirob] 29/12/2017 20:12

I think that pretty much sums the meeting up. I don't think any of us went in with any expectation of the board being bullish and to be fair they gave an honest but bleak summary regarding the current financial situation that they are in. My take on the general feeling from the board was that it is just as frustrating for the team as operationally they have achieved the capacity of the mine but it would seem that currently everything seems to have conspired against them in achieving the quantity and quality of grade as set out in the feasibility study. My understanding was that although numerous samples were taken, it was obviously small in comparison to the total size of the mine so the distribution is now over a wider area and even with a conservative value didn't fully represent the grades and quantity that they are currently liberating.
I'm going to say that it is a bit of a game of two halves. You could say that things are looking a bit naff at the moment but they have had large diamond finds (just not the quality) which I know is what we need but as we know, these things are formed through many variables, heat, pressure etc. and for all we know there could be a potential Karowe down there, we just haven't reached it yet. I didn't think that AFD had the resource they had until Lucara started digging a bit deeper and I'm sure they didn't at the time.
I also took from the meeting that Lucio was sticking to the $80ct model and not including any potential larger finds which at least means that there is no artificial expectation around the numbers. If we hit the $75 - $80 ct marker then firstly the mine is viable and we will gradually pay off the debt and generate profit but also any large diamonds of quality will also signal a game changer.
As always there is always some luck involved and hope that the business model is sustainable.
I think that's all I have for now. Hopefully I have capture my take on the meeting and am not too far from your understanding Tan?
Once again, good to see you even in such grim circumstances including the weather. Have a glass of whiskey for me as I can't stand the stuff so better you have it than I waste it.

[tanelorn] 29/12/2017 18:45

Tidied - Up

Okay, back now, whisky glass in hand:
The meeting can best be remember as four halves !!, yes a contradiction in terms,,,, one depressing public,,, one hopeful public,,, and then both halves in private conversation.
1) A rather sad public statement:
a) Sorry for the poor timing of the AGM, it was not intended to be like this but essentially was caused by the major shareholders baulking at the need for more money and the Bank having agree favourable terms of an 18mth interest repayment moratorium, trying to 'back pedal', AGM could have been earlier but getting all parties to understand the reality of the cash flow and future mine plan, took patience..,, and not letting the bank back-pedal.
b) A melancholy reflection on the disappointing cpht ( explained in finer diamonds now being rejected as uneconomic to collect <1.5 mm ?- , a partial reversal on previously understood cutoff adjustment) the questions raised pre meeting (moi) ie is it the mine, theft, or failure of feasibility study,,,,the need to adjust cut off and the Indian De-moniterisation, 20% collapse in rough prices etc. The continuation of checking rechecking and looking AT EVERYTHING over and over.
2) A statement and description of the new mine plan the adjustment in mining costs to make US$75 economically viable and how the old mine plan could still be re-used.
a) Basically there are three 'cuts' whereby weathered scree top needs to be removed as the mine hole descends, the THIRD cut is not NOW due to be implemented until 2.5 yrs hence and it is this cut that contributes to the huge increase in 'waste' removal. Not doing so, as per the new revised mine plan saves a lot of money and time, nonetheless should carats improve to the pre-study figures of US$107 at any time during the 2.5 yrs, the old 14 yr mine plan could be reinstated.

Memo note notes ( private 'conversations')

The mine is now reconfigured to wipe it's face,,,,
The January 2018 sales report is going to be positive
There are some very large diamond finds, just lacking quality, yes i know it's key
The mine isn't going bust (At least not for a while !! )
"Was i wrong to top-up"? @ 10 someone senior thought it a good price.
"Will there be a company in three years"? , --- Reply, it takes only 9 good diamonds a year to transform this company.
MD not leaving early
Chairman / MD advises debt at 30M US$ and 64M US$ - too high - needs to come down.
Just paid forth bank repayment to bank, further payments not required for 18 months
Diamond market rough stockpile/backlog clearing if not already cleared.
Watch the space on synthetics, something detrimental to Synths happening?,
Cpht doesn't improve with depth, well maybe 3% - Quality should.
Stronger Rand is being combated.
Board and senior management being slimmed-down in near future.
Chairman bought the most Director shares at 10p yet is the most critical and cautionary
MD has done his commissioned job, but is not leaving ( double checked that ! ),,,, work to do.!!!
On the whole the management were chastened.

....... I think we are going to have an anxious year or two ahead, but IMO this company has now, for the short term been saved.