Firestone Diamonds Share Discussion Threads

[astjgroom] 10/6/2019 19:25

I think so, Paul Bosna, have to say he was polite and put himself out.

[andy] 10/6/2019 18:30

Very interesting and many thanks.

Can you reveal the source of that info?

You can PM me if you like.....

[astjgroom] 10/6/2019 12:43

Hey guys, I can confirm:The 311 carat near gem was sold for $230kThe 72c found in the weekend of three, $560kThe 22c $360kA 43c sold in Feb for $1.23The 12c fancy pink not yet soldAnd the record 70c attained $1.62m

[andy] 10/6/2019 08:13

moderated for spamming.

[dangersimpson2] 07/6/2019 15:16

Yes, you are right, I'd missed that the holdings were at the bottom of the Eurobond RNS, and assumed that since there were no separate holding forms RNS'ed then they were selling down, but it appears not.

This leaves the following questions:

1. Are they happy with the lower price because they get more shares, or is the lower mark to market of their holdings more concerning?

2. What happens when they get close to 30% each, you've got to assume the company wouldn't force them into making a mandatory offer by putting shares to them? If they did would the issue of shares over the past year count as having acquired shares at a given price which would form the mandatory offer?

3. Normally such a company would end up with a debt to equity swap, diluting existing shareholders down to very little, but in this case they debt holders are also large equity holders and couldn't go above 30% , so does that rule out a D4E?

[de369357114] 07/6/2019 14:18

I have been investing in this company for over 10 years and have seen many share dilutions over this time. Can somebody explain why they are continuing to issue shares at depressed valuations to pay interest - surely they have cash on the balance sheet that can be used instead - which would stop the constant dilution. This just feels like another significant round of dilution of existing shareholders

[andy] 06/6/2019 21:46

danger,

Are the loan holders selling?


Every RNS gives their percentage position, they seem to be going up which suggests they aren't selling.


At the curent price any sustained selling would see this under 1p surely?

[astjgroom] 06/6/2019 20:55

Worth not worry

[astjgroom] 06/6/2019 20:55

Yea but none of the assets will be worry what money was spent/borrowed to build it. They may get some back but not even half.

[dangersimpson2] 06/6/2019 12:06

While they pay the loan interest in shares then surely the loan holders are incentivised to keep selling the shares in the market because they then get more shares with each quarter's interest payment. The selling will only stop when they make the first interest payment in cash.

[andy] 06/6/2019 11:37

New all time low reached.

[gbgold1] 06/6/2019 11:18

Mdalos1. I think you are on to something. I’ve had a feeling they are using accounting techniques to take cost to the Bal sheet reducing the COS to make the numbers look better. Not that this has helped improve the share price!

[astjgroom] 06/6/2019 00:00

Maybe they think the more shares they issue to the creditors the more inclined the creditors will be to do a deal, after all, instead of cash they have given nothing but paper away, and paper is worth nothing unless the company survives and the price regains.

[andy] 05/6/2019 20:26

Jackbal,


I wss referring to a situation where they had a problem with the plant or a production breakdown, rather than the poor share price performance.


I think there's a good question for the BOD, to ask why they aren't buying if they're going on record suggesting investors do, I agree.

[jackbal] 04/6/2019 10:14

Hi Andy,

If this isn’t a rainy day what is?

I guess the problem is that it’s raining cats and dogs on the equity holders but he might have the option of an umbrella from the debt holders.

Comes back to the point about BOD refusing to buy stock yet telling the public on podcasts it’s a good time to buy if you believe in recovery in diamond prices.

Smacks of hypocrisy, total disregard for equity holders. Again the word deliberate comes to mind

[andy] 31/5/2019 17:01

Jackbal31 May '19 - 12:28 - 3674 of 3677 Moderate | Ban
0 0 0
Andy, I’m on the move and don’t have specific numbers but I seem to remember seeing cash balance rise 3/4 million recently yet they still issued stock in lieu rafher than use the cash improvement to pay debt down.

-------

You may well be right, but even paying down some debt with most of the cash won;t make too much difference, and then they won;t have any cash for a rainy day, such as an equipment failure at the nine.


They could cler round onw third of the debt, so the dilution would be less, but it would still be significant.


I fear this is being dragged private slowly but surely.


I last spoke to Paul in late January and there were clearly no quick or easy fixes to the debt problem whilst ROM stones are priced so lowly.

[jackbal] 31/5/2019 16:22

Mdalos, great post and summary regarding the “deliberate221; attempt to give more equity to debt holders.

It’s fair enough to be cautious but after the cash position improved surely the emphasis should have been on caution on equity over cash.

A small boost in share price down here makes a huge difference to dilution and the decisions of the bod last time round was a clue to how little regard they have for equity holders.

If this goes to the lenders Bosma will probably get a sweet deal and he’s hardly going to get any grief from shareholders popping out to Lesotho.

Slowly sliding into private hands and shareholders won’t put up much fight. Easy money for them.

When I started punting this I thought it was a high risk gamble on better quality finds and improving carat prices.

What a fool I was, figured it out now but too late!

[gbgold1] 31/5/2019 14:20

I do think the mgt could have handled the situation better by more informed comms. They have been very cautious around the cash making sure there’s enough in the bank to pay this first loan payment in June. However, they have issued too many shares to cover other interest payments. Don’t forget the really underline reason is there doesn’t seem to be any quality diamonds being found. If we had a monthly RNS saying another xx carat found the share prices wouldn’t be where it is.
But as I say the Mgt could have handled the decreasing share price situation better.

[jackbal] 31/5/2019 12:28

Andy, I’m on the move and don’t have specific numbers but I seem to remember seeing cash balance rise 3/4 million recently yet they still issued stock in lieu rafher than use the cash improvement to pay debt down. I believe if they paid down the debt partially with cash the share price would have reacted positively.

I’ve started thinking there is something corrupt going on, some sort of plan for the lenders to take this out for nothing and engineer the screwing of shareholders.

BOD have some serious questions to answer and I am going to join the list of disgruntled shareholders e-mailing them at the weekend.

If they are going to try and steal this I would like them to know we’re aware of the smoke and mirrors they are using....

The conspiracy is literally a theory of course but the reluctance of insiders to buy at these levels gives it credibility

[andy] 31/5/2019 11:45

jackbal,


Last time, April 15th, they issued 18.8 million shares at a VWAP of around 2.2p, so perhaps up to 23 million new shares will be issued next time at the current share price?

[andy] 31/5/2019 11:39

jackbal,


Agreed, he should lead by example.


The debt is clearly a huge issue, and it looks difficult to resolve, and in the meantime we are being diluted every time they issue shares to cover the interest payments.


I guess the next one will be another 20 million shares, at least at the current price.

[jackbal] 31/5/2019 11:33

Hi Andy,

There was also a video downloaded with Bosma being interviewed.

He actually had the cheek to say something like :”it’s a good time to invest if you believe the diamond market will recover”.

Ridiculous hypocrisy given his reluctance yo buy shares in his own company at these levels.

If your going to be a b/sh*tter at least be a convincing one!