Firestone Diamonds Share Discussion Threads

[strategy and luck] 17/8/2023 11:22

CORRIENTES1, 99.9% certainly a scam (as in "Kills 99.9% of germs"!). I've had it before with bombed out shares, in one case £100k worth of shares which went down to around £2k (Motion Media MMD which turned into Scotty SCO). Some company from the US was (allegedly) wanting to buy the rump of SCO and willing to pay £25k for my shares...I just had to send them £3k fee and my share certificates! The final phone call from them I let my 18 year old son answer and told him to go along with everything they said. Then I told him to say, "Is this a scam?"...they hung up and I never heard from them again.

[corrientes1] 18/7/2023 09:17

Just had a peculiar call about someone wanting to acquire the FDI ticker. I think I or my wife sold shares in the company years ago. The caller talk about offering money but needing to pay out something first, which sounds to me like a variation of a typical scam, but who knows.

[pandjb] 28/6/2023 09:54

Holding for now. Rather flush 'em down the Dunny than accept the offer. However, with the reduction in CGT allowances moving forward it may become more sensible to offset the loss against other gains.

[varrirob] 18/1/2023 21:58

Holding shares, holding on for better times. It's been a horrible journey but one day maybe something good might come of it,

[bcape] 18/1/2023 17:42

Production is ongoing... should be an auction sale of some of FDI's better diamonds soon.

Corporate Actions are still trying to sweep up stranded shares of no apparent value,probably looking for some holders to crystalise their losses agsinst profits elsewhere, to save capital gains tax. HOLD for me... long term.

Anyone else here still holding FDI shares? No point in me posting here if there are none...

[bcape] 09/12/2022 17:12

All resolutions at the AGM were passed yesterday. FDI will therefore continue production with 81% of the shares in 'Pacific' hands, 19% with private shareholders.

It will also now change its articles to become a Private Limited Company, whose shares will still be tradeable through J P Jenkins, at lesst when a few people are willing to actually sell and buy FDI shares on a "matched bargain basis'.

Debt levels are very high at present but diamond prices have improved, especially for the smaller diamonds since closure of the Argyle Mine. Quarterly reports should tell us enough on diamond volumes, revenue and costs to determine if FDI should, all being well, eventually be profitable.

The Cut 3 decision to mine further down will need to be made before the end of 2024, requiring both extension of the Mining Lease by the Lesotho Government and some upfront investment.

The biggest uncertainty now is whether diamond extraction will improve with depth and changes in the kimberlite zones, i.e. bigger, higher quality, coloured & clear gem stones.As ever with FDI, the next two years will be critical.

The staffing is excellent and the commitments are high... we can only hope for a positive outcome.

[bcape] 17/11/2022 23:24

Final position post Take Over Bid is 81%, so 19% in private hands unwilling to sell, well short of 99% needed for a total buyout of shareholders.

An Annual General Meeting has now been called for 8th Dec. in London. I will be there to ask questions, listen and vote.

The last two resolutions are special, needing 75% approval, to change the company into a 'private one'; lower costs & more flexible working but much more difficult to buy/sell shares.

8 to 10 year mine life with 3rd cut... could yet be successful financially - hopefully better than just enough to pay off debts & bond holders with interest due. Dividends is a hope...

[bcape] 21/10/2022 16:48

Corporate Action, Takeover offer for a paltry amount per FDI share is now open until 10th January 2023.

It is still a firm NO from me...

[bcape] 27/9/2022 11:34

The 2021 Firestone Diamonds Annual Report has now been published, and can be read from the FDI Web Site.

Mining is to restart in October, all being well.

The major share holders are listed, inclusive of Edwards Family Holdings, implying none of the larger holders have sold other than one of the Bond Holders we knew about. It looks like Pacific Capital associates will be well short of 90%, but at least 77%, as they always expected I feel.

Debts have been restructured... could have been much worse - an advantage to us where bond holders are also major share holders.

Diamond prices are currently good, so the next year will be interesting. If profitable, I expect the 3rd cut plan to also go ahead, which will revalue the mine and add at least 5 years to its working life.

It will also be interesting to see if the FDI price moves at all over the coming month, as NONE have traded for about 2 years on the market through J P Jenkins.

HOLD & HOPE by me, unless I experiment with a small sell offer at some point, at least 3p c/w current 0.2p and the still open Corporate Action offer at 0.01p

[mrphil] 12/9/2022 14:51

Bought my first ones of these back in 2004 as European Diamonds, never a large investment but should have done better and they're certainly not having my shares at 0.01p each after all this time!

[bcape] 17/8/2022 16:35

Yup... fully agree, they are not going to get my FDI shares, nor many others, at that price.
This was a vehicle to get the mine restarted, so bond holders could still get their interest payments & capital repayments; and profit through their overall shareholdings.
None of this has diluted our c.27% shareholdings and prospects for recovery look good post October if diamond prices continue to hold up well.

No doubt we will hear more early in September and later in October.

Once we start selling diamonds again, it will be interesting to see how the share price moves & if any get traded.

My hope is that the debt gets paid off rapidly from some large, high quality diamond finds & good price sales; and dividend payments start.

[bcape] 04/8/2022 18:21

It is tradeable only via J P Jenkins at present, though no shares have to date been bought or sold there.

[ridicule] 04/8/2022 12:50

Does Firestone remain on Aim after the deal is done?

[bcape] 28/7/2022 10:56

The FDI Board did not recommend acceptance of the Offer to individual shareholders but said this had to be a personal decision... effectively accept only if crystallising the loss has tax advantages to offset tax on profits elsewhere.

The Chairman's letter noted that Keith Johnson was to stay a director and will retain his personally owned shares even though his company which owns bonds and c. 30% FDI shares has committed to sell their shares in order to protect their bonds, interest and repayments due in reality as I see it.

The price at 0.01p a share (company market value of c. £85,000 in total) is low enough to not be an incentive for anybody to sell their holdings if they have any faith that FDI will recover once production re-commences.

Key here for most private FDI shareholders will be Edwards Family holdings and a couple of the prior directors who have not sold their holdings as far as I know.

I reconfirm that I will personally not take up this offer which will, any way, become unconditionally accepted by two of the major share & bond holders in about 14 days time to give the > 50% shares sought (c. 77% is estimated).

[kingsize] 28/7/2022 02:41

A ridiculous offer indeed. Past experience leads me to fear the board will recommend acceptance and we'll get shafted. Mind you, I was expecting to lose 100% anyway.