Firestone Diamonds Share Discussion Threads

[varrirob] 07/3/2014 19:18

Even I can't look on the positive side of that one lol

[earnestwipplethwaiteiii] 07/3/2014 15:06

Andy - your diligence does you credit!

"...the individuals affected." - that would presumably be the Kennys, inter alia....

[andy] 07/3/2014 14:51

From the recently published accounts!


Contingent liabilities

"As detailed in note 30 to the annual financial statements for the year ended 30 June 2013, the Company made a voluntary disclosure to HM Revenue & Customs ("HMRC") regarding its failure to deduct PAYE and National Insurance over several years from certain employees based in the United Kingdom. Discussions continue with HMRC to reach a conclusion on the settlement, if any, due by the Company. The Company confirms that it would seek to recover any amounts due from the individuals affected."

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What a continuing farce!

[earnestwipplethwaiteiii] 19/2/2014 12:23

Andy - another point often forgotten by shareholders in their desire to make profits is the ethics of the business. Apart from a brief nod in their direction when BK11 was put on C & M, I believe the workers at that mine have received scant compensation compared to what they might have expected had the rosy projections of the Kenny crew proved even remotely correct.

[earnestwipplethwaiteiii] 19/2/2014 09:57

Andy - it's difficult to ascribe the original decision to anything more than hubris at a time when BK11 was thought to be the greatest star in Firestone's firmament - a ridiculous notion, looking back.

[andy] 19/2/2014 09:05

Firestone to delist from the Botswana Stock Exchange

Firestone Diamonds plc, the AIM-quoted diamond development company, today announces that as previously set out to shareholders in the Company's notice of annual general meeting for 2013, it is in the process of delisting from the Botswana Stock Exchange ("BSE").

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This was folly from the start, and I told PK so at the time!

A JSE listing would have made sense, and made FDI ISA'ble at a time when AIM stocks couldn't be done without a qualifying foreign listing, which the Botswana Stock Exchange certainly wasn't!

So finally they get rid of this ridiculous listing and the costs associated with it!

One more step in the right direction I suppose.............

[varrirob] 17/2/2014 15:14

Thanks for that Andy. Lets face it, life makes us more cynical the more we experience. I just hope we can all come out of this a bit better off and hopefully have a beer or two on the proceeds.

[andy] 15/2/2014 01:40

Varrirob,

I see your thinking, and I know you are a good person, and a genuine investor here.

I am the same as Earnest, an old cynic, but I genuinely hope new management can deliver here.

The shame is there is much dilution to come, the new investors will own the company, the old ones are going to be diluted into oblivion, IMO.

Sorry to say it, but even loans are dilutive, as they are interest bearing.

[varrirob] 14/2/2014 17:17

And i agree with you in part having held for so long but I think that with Tim Wilkes imminent departure and the experience of the 'newer' team this might just turn itself around. As they say, change the people or change the people and I think that has slowly happened.

[earnestwipplethwaiteiii] 14/2/2014 12:27

Varrirob - no problem at all. The cynicism arises from some investors such as myself with long experience of this company's forward looking statements. They have a habit of turning to dust. As yet I can discern no change in that situation, and hence I think it fair to caution people who may be new to the stock.

[varrirob] 14/2/2014 11:44

But if in the long term it adds value then what is the problem? This clearly isnt a short term investment so look longer term and be prepared to hold. If not, then like me you have the option to sell. I am happy to hold, hold for the long term and hope that the value comes out in the end. But what i dont want to do is knock every RNS that comes out and put off any potential PI cos it has to be said, if you entered at these levels there is a good chance in a few years time that you could make some good return imho.

[andy] 14/2/2014 10:50

"acquisitions in the long term if an opportunity arose that would be profitable and would add value"

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Really radical thinking there!

The little matter of where the money would come from not mentioned of course!

[earnestwipplethwaiteiii] 14/2/2014 10:10

"...growth through acquisitions in the long term..."

Well it would have to be in the long term because for the next several years Firestone will either have no income or will be repaying loans.

[gobbyash] 14/2/2014 09:59

www.diamonds.net/news/NewsItem.aspx?ArticleID=46113

"Three companies stand out as possible targets as shareholders may be looking to add value to their existing production and prospective mining developments. In fact, a super merger between Gem Diamonds, Lucara Diamond Corporation and Firestone Diamonds would create a company with substantial diamond volume and value at its disposal."

"In a recent interview with Rapaport News, Stuart Brown, Firestone's CEO, said the company would consider growth through acquisitions in the long term if an opportunity arose that would be profitable and would add value (see the interview from the Rapaport Weekly Report published on January 24, 2014)."

[ricardothebrave] 09/2/2014 18:18

ChrCam, My research a few years ago told me exiting at 32p would be a good idea due to the many uncertainties presented (I was a holder of KDD through the reverse takeover). One reason was the lack of commitment to a mains power supply which would have substantially reduced recovery costs.I moved on and lost touch with the detail until I saw it had fallen to a point that raised my interest again. Buying back in at 2.5p was a bit of a punt, but the risk/reward seemed worth it. Up to now that's been proven right. I'm happy to hold for another 5 years to see where this goes. I may top slice at a point and then let it run, depends on where the rest of my portfolio is at the time.

[varrirob] 09/2/2014 17:11

From my point of view I would welcome new investors because although I am sitting on a loss it is not a position I wish to remain in, so the more that join, the more chance of the share price increasing which will be to my benefit. I still believe that this will go ahead and if that means I have to wait a few years before any real ROI then so be it. I know the history and I know the mistakes that have been made but if we keep going on about it who's going to bother investing. All imho.

[chrcam] 09/2/2014 01:27

Ricardo,

What does your research show in regards to FDI's claimed $/tonne production cost for their new processing plant versus that published by other operating mines in Lesotho? (ie Gem Diamonds at Letseng)
How does this figure compare with what FDI's $/tonne revenue was from their recent operations?

[ricardothebrave] 08/2/2014 12:13

Andy, An interesting reply, however you failed to answer my last, and probably most poignant question. Are you a holder, former holder, future holder? From your replies I'm guessing you're one of the people who hung on through the drop and lost a lot of money. If this is a true I can understand your position. So what's your position Andy? BAM BAM - I wasn't advocating Shares Mag as the be all and end all of shares tips. If you rewind to my first post merely pointing out it had been mentioned. I wouldn't buy a share if they tipped it no more than I would our friend TW, or a random stranger on a bulletin board. It does however give you prod to do your own research, then make your own decision. That can't be a bad thing can it? It worked for me, and is continuing to do so. You may be wrong, you maybe right with your assumptions, I don't care personally. It's too easy to blame someone else, especially when a share has dropped so. much as FDI. I make my own investment decisions then there is no one else to blame if it doesn't work out.

[andy] 08/2/2014 11:11

"It's mentioned regularly enough by them to suggest payment for the PR work is on an annual retainer basis rather than ad-hoc"

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People in the media being remunerated for tipping and mentioning shares?

Who would have believed such a think may occur!

Perish the thought!

:-)

[andy] 07/2/2014 09:07

"Gloating over another person's failure is a poor character trait, not one I wish to be associated with. "

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I would suggest if you familiarised yourself with said t1pster, you would recognise several "poor character traits" you would not wish to be associated with!

And it's hardly gloating to pick up, over a period of years, a great number of poor t1ps that have cost his PAYING SUBSCRIBERS plenty of their investment funds, and yet he refers to private investors in less than complimentary terms!
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I don't subscribe to your 'conspiracy theory' either. FDI has moved up and got noticed as the risk to investing has been reduced, simple as that.

There's no "conspiracy theory" at all!

I understand how the industry works, you don't I'm afraid, no disrespect.

Haven't you ever wondered why, out of all the stocks listed on the LSE, the same company is tipped or "mentioned" by several media outlets at the same time?

Think about it!

What do you think the PR companies do all day?
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I'm not hostile, I call it as I see it, and I think FDI is a long way off completing a massive capital raising of several times it's existing market cap in a terrible market where raising finance is the worst some have seen in a lifetime!

And I expect a general market fall if tapering continues too!

So there you have it, not the ideal climate for FDI to prosper in and raise vast sums of money, in my opinion, and so my view is currently negative.

[ricardothebrave] 06/2/2014 20:31

Andy, I have no interest reading a few threads slating tipsters when they get it wrong. Gloating over another person's failure is a poor character trait, not one I wish to be associated with. I don't subscribe to your 'conspiracy theory' either. FDI has moved up and got noticed as the risk to investing has been reduced, simple as that.I'd really be interested to understand why your so hostile towards FDI? Are you a holder? Former holder? Future holder?

[andy] 05/2/2014 08:07

ricardo,

If you want a better idea of TW and his "t1ps", I suggest you read the RIVp and Tip threads!

Then the "shame the tipsters" thread!

Say the last 100 posts of each should do it!

And then take into account how the financial INDUSTRY works, and you may begin to realise why various entities are tipping FDI all of a sudden!

In the current market, raising well above the current market cap FROM EXISTING SHAREHOLDERS! will be extrmemely challenging IMO, as I imaine existing shareholders are tapped out, I cannot imagine a rush for cheque books when the time comes!

Good luck to you too, I feel you may need it.

And I expect a general market selloff before then too.

[ricardothebrave] 02/2/2014 22:00

Andy, If they do raise the £40m without much trouble I expect this to be reflected in the bid price as this will remove another element of risk. As for Tom W, I have no idea on his history of tips, I was just giving you an alternative to the picture you wanted to paint. From my point of view FDI has had a few mentions recently which can only bode well for short and long term holders. It got mentioned again in this week's Shares Mag. I'm not sure where you are with your FDI holding, but I wish you the best of luck for the future if you are a holder. The next few years are going to be interesting if nothing else.