Firestone Diamonds Share Discussion Threads

[andy] 25/4/2019 09:41

mdalos,


They need to hold back cash in reserve because they have to have some flexibility in case of problems, you wouldn't want to be a distressed borrower in the current market.


The cash in hand is dwarfed by the debts, and as FDI are paying the interest on those debts in paper, the bottom line isn't being impacted, only the value of shares held by loyal shareholders!

[buywell3] 25/4/2019 08:52

To threepence

[andy] 23/4/2019 09:17

One of the problems FDI have is their ROM stones are running up against synthetics, which even De Beers are finally getting into.


In order to generate the income required, they need to consistently find a good selection of large high value stones, and they currently are not doing this.

[astjgroom] 22/4/2019 01:42

From what I read close. Defo not extending. I read something which stated roughly with different cut backs it becomes uneconomical to continue. I've read everything on Argyle closure, but there isn't much.

[tanelorn] 20/4/2019 14:47

Hi Astjgroom>

I noted that as well, do they;

1) Start winding down
2) Close?
3) Extend

These type of forecasts are very vague.

But, it also seems that De Beers are likewise starting to restrict sales, prioritising African Merchants.

Hopefully we will see a gradual rise in price circa three months hence?

Next fdi auction should be okay, it would be nice to see another set of good diamonds to prop-up the auction after next.

Still think this is oversold!

[astjgroom] 19/4/2019 22:56

Says in the article 400 days roughly from March 12th, so we are looking mid 2020, June 2020.

[andy] 18/4/2019 19:04

ast,

You are correct:

[astjgroom] 18/4/2019 12:25

No 2020 closure, And maybe even before some have said, though looking at Rios results they are still on to produce 11m ozs at argyle in 2019

[andy] 18/4/2019 08:50

Ab,


Argyle closure is scheduled for 2021 I believe, so possibly quite a few interest payments to be made between now and then.

[abtwo] 18/4/2019 08:15

Recent press articles seem to indicate some improvement in rough diamond prices. But for FDI it needs Argyle to shut today, only then might we see FDI generate enough cash to actually pay the interest bill each quarter!!!

[andy] 17/4/2019 16:05

tanelorn,


I don't see a solution for FDI at the moment, as Dave rightly states, the dilution is gradually eroding shareholder value here, and at the current price the next interest payment will be for 20 million shares, or around 4% per quarter.


The fact they are hiding the value of the recent "record price" stone tells you enough really.

[davethehorse] 17/4/2019 14:01

Can see them surviving OK but will shareholders see much benefit - not sure but those buying in at 2p may get some value if and when the lower end prices improve. The dilution with the debt payments every quarter the main problem with the shares imo, especially with the share price continuing to fall translating to ever increasing dilution, not a good situation..

[tanelorn] 17/4/2019 11:41

Andy,>

Yes i'm biased,,, but do you really think, it's going to nothing?

Sell out perhaps? (Edwards family trust may oppose), so i expect a rise from here. No really,,, i'do

This i think is the Nadir.

Buy at the Top or Sell at the bottom?

Guarantee to impoverishment.

IMO and i make no humble suggestion,,, we are MORE likely at the near bottom,,, it's only a guess, but i would rather buy now, and forget,,,

Do your own research etc.... just a view

[andy] 17/4/2019 10:52

ast,


Better to receive something than potentially nothing I guess.


The BID is 1.9 pence, a new all time low.

[astjgroom] 17/4/2019 10:38

Hehe, nor mine, why sell at this price?

[bigglesbingham] 17/4/2019 10:34

The Red on my screen ain't

[astjgroom] 16/4/2019 14:23

That 11 carat pink is a beautiful colour in the fdi website

[astjgroom] 16/4/2019 14:21

Rio tinto Q1 diamonds 2019 is 2.78m vs 3.5m in 2018. Results out today. FY for Rio estimate 15 - 17m vs 18,427 in 2018. Argyle May produce 11-12m in 19 vs 14m in 18. No notes on argyle closure, apparently no in wants to talk about it...

[astjgroom] 16/4/2019 13:14

Market cap £11.46m...

[davethehorse] 16/4/2019 12:53

It's not looking at all good and a downward spiral that looks impossible to pull out of IMO..

[andy] 15/4/2019 23:05

Well as the price falls more and more shares are being issued in lieu of interest, next tranche could well be 20 million in 3 months time.


At this rate serious dilution is going to occur here.

[davethehorse] 15/4/2019 17:28

No wonder the directors are not buying

[davethehorse] 15/4/2019 17:25

Been out of FDI since the 3.5p level for this very reason. More and more shares being issued to pay interest, lower share price = more shares needed to pay interest etc etc, as you say some would say a scam...