Firestone Diamonds Share Discussion Threads

[andy] 25/3/2019 11:27

AB,

LOL!


Well if not actually dead, barely a pulse and on life support...............

[abtwo] 25/3/2019 10:43

Let us hope FDI's share price chart is not reflective of a hospital patient's heart rate trace...........the patient is dead!

[andy] 18/3/2019 11:27

AB,


Yes, "run of mine" type diamond prices are under pressure from synthetics, it's the larger and coloured fancy stones that are in demand and are holding their prices.


This is the principal problem here, IMO, is the lack of larger stones.

[abtwo] 18/3/2019 09:10

From Gem Diamonds Annual Report :

"Diamond market :
Marginal improvement in rough and polished diamond prices Smaller commercial type goods remain under significant pressure

Widest price disparity between smaller type goods and other categories in five years

Increased demand in China due to resurging demand from millennial buyers

Rough prices of larger goods expected to remain stable due to favourable medium to long term demand/supply fundamentals "

So the bulk of FDI's production is likely to be classed as "smaller type goods" and as such pricing may be stagnant at best?

[andy] 15/3/2019 10:08

dave,


Yes the future closure of mines is one point FDI make in their presentations, but there's at least 2 years to wait if they close on time, and they may continue longer if it's economic to do so.


FDI need to renegotiate their loans to stay in business long enough to benefit form mine closures, IMO.

[davethehorse] 15/3/2019 07:35

Not sure what a company has to do in the current negative climate to get diamond mining shares to rise, GEMD results on Weds were very good as expected but the shares dropped 6% and has been weak for a few weeks anyway. They announce they have sold a pink 13 carat yesterday for 8. 8 million dollars and the shares drop again... Sector is in a very bad place but must surely turn the corner soon with mines closing in the next few years, reducing supply...

[andy] 14/3/2019 18:20

mdalos,


Yes, but at least they'd be able to service that debt without issuing more shares.

[andy] 14/3/2019 14:40

dave,


Gem could buy FDI with the proceeds, and buy the sorter with the change!

[davethehorse] 14/3/2019 11:14

GEMD have just sold a 13 carat fancy pink for $8.8m - FDI need one or two finds like that and the market cap will look very cheap.

[abtwo] 14/3/2019 11:02

They could pick up an XRT machine for US$1.5 mill if they asked around.

[astjgroom] 12/3/2019 15:36

Wow, £5m, I suppose it would pay for itself. Are we gonna be asked to buy it though...

[abtwo] 12/3/2019 11:02

The manufacturer of the XRT machine has one in JBurg for test purposes.
So, collect tailings and send to JBurg - hopefully they have done this!

[tanelorn] 12/3/2019 09:18

About 5 million usd per unit,,, I seem to remember from luc days

[astjgroom] 11/3/2019 22:51

Thanks abtwo. Let's hope so, sounds like a good idea indeed... it's only pretending to be a diamond mine st the moment.

[davethehorse] 11/3/2019 13:55

GEMD are using one and have recovered some big stones that would not otherwise have been discovered. A no brainer but unsure of the cost.

[abtwo] 11/3/2019 10:40

Maybe I have jumped the gun in assuming they have "hired" one or sent tailings off to be tested?

Feb 2019 : Firestone Diamonds Investor Presentation - page 18 Upside Potential.

XRT– investigate incidence of Type 2A stones that
are potentially missed by X-ray technology

The rest of the bullet points on this page are rubbish.

PS : if they have not acted on doing XRT work then the management need to resign!

[astjgroom] 11/3/2019 10:00

ABTwoSorry, where does it mention XRT machine being boughtThanks!

[andy] 11/3/2019 09:01

jack,


Yes IG require some liquidity in order to open a position.


Sometimes hey open a massive spread that makes trading suicidal.

[abtwo] 11/3/2019 08:53

The key opportunity here is that if FDI's conventional diamond recovery equipment has been unable to recover the high quality (pure) TypeIIA diamonds then, if they now plan to get an XRT diamond recovery machine in to audit/treat material, some of the very high value diamonds may be recovered.

This may explain why all of the larger diamonds recovered to date have been poor quality and may even explain the overall lower grades and low diamond values seen to date.

Something to be hopeful about?

[jackbal] 07/3/2019 14:09

Andy, I bought some last year approx 7p.

I then opened a position on IG around 5 which I closed for a tiny profit. I was going to re-open the position on IG but the platform wouldn’t allow it so I bought physicals.

I have found more often than not if IG won’t allow a long position it’s because the markets too thin. Has been a good indicator for me in the past that it’s a good entry level so we shall see.

I know this is very risky and riddled with issues such as debt and low grades and prices but my punt is based on fact there are a fair few dollars in the bank, a couple of larger stones have appeared and this is a producer with a mine already operating.

I have explorers in the portfolio that are valued at much bigger caps even though they have no mine or revenue for years so felt this was worth a punt as don’t see it going bust too quickly.

I was wrong at 7 so far and could be unaware of bigger risks that exist so no advice intended to anyone on any level.

[andy] 07/3/2019 11:16

mdalos,


Agreed, and I have staed this some time ago, every time they receive another payment in shares current shareholders are diluted further, and they increase their grip on the company.

I believe they are trying to renegotiate so this arrangement might be replaced before too long