Proactiveinvestors United Kingdom Firestone Diamonds

Firestone Diamonds hails solid first quarter production figures - UPDATE

Mon, 14 May 2012 12:36:00 +0100

Following today's update from the firm, Dr Ryan Long, at broker Northland, highlighted that it was "positive" the company was continuing to find large diamonds.

Firestone Diamonds hails solid first quarter production figures

Mon, 14 May 2012 09:13:00 +0100

Firestone Diamonds described first quarter production from its Liqhobong Mine in Lesotho as “good” as it revealed it uncovered an unbroken 74 carat yellow gem.

RNS press release - Operational Update Q1 2012

Mon, 14 May 2012 07:00:00 +0100

Firestone Diamonds FD Angus Ogilvie resigns to pursue other interests

Wed, 18 Apr 2012 07:54:00 +0100

Firestone Diamonds (LON:FDI) said Angus Ogilvie has resigned from the board as finance director to pursue other interests.

The company expects to announce the appointment of a new chief financial officer in due course.

Non-executive director Braam Jonker will oversee the finance function of the company until then.

Chief executive Tim Wilkes said: "On behalf of the board, I would like to thank Angus for his contributions to Firestone and wish him the best with his future endeavours."

Firestone is a miner and explorer with operations focused on Lesotho and Botswana.

Firestone currently operates the Liqhobong mine in Lesotho and is also the largest holder of mineral rights in Botswana's diamondiferous kimberlite fields, controlling approximately 10,000 square kilometres around the major Orapa and Jwaneng mines and the entire Tsabong kimberlite field.

In addition to Liqhobong and the BK11 mine in Botswana, Firestone has 108 kimberlites in its portfolio, of which 30 have been proven to be diamondiferous.

RNS press release - Directorate Change

Wed, 18 Apr 2012 07:00:00 +0100

RNS press release - Holding(s) in Company

Tue, 10 Apr 2012 11:45:00 +0100

RNS press release - Holding(s) in Company

Tue, 10 Apr 2012 11:39:00 +0100

RNS press release - Holding(s) in Company

Wed, 04 Apr 2012 13:25:00 +0100

RNS press release - Holding(s) in Company

Wed, 04 Apr 2012 13:24:00 +0100

RNS press release - Result of GM and Change of Registered Office

Mon, 02 Apr 2012 16:39:00 +0100

RNS press release - Holding(s) in Company

Wed, 21 Mar 2012 13:44:00 +0000

Firestone Diamonds to raise £14.7 million in placing following strategic review - UPDATE

Thu, 15 Mar 2012 14:55:00 +0000

---Adds broker comment and share price----

Firestone Diamonds (LON:FDI) today announced a proposed placing to raise £14.7 million to further develop its flagship Liqhobong mine in Lesotho.

It follows a strategic review of the firm's operations and was oversubscribed, the firm said, adding the cash will also be used to repay debt, the ongoing costs of the BK11 in Botswana and for general working capital.

The company has provisionally placed 172.9 million shares at 8.5 pence a share. In order to carry out the placing, the company has reorganised its capital, it added.

The AIM quoted firm carried out the review in January and February and identified that a primary value driver was the development of the Liqhobong main treatment plant.

A definitive feasibility study, to cost around £1.6 million,for this plant will be completed by the middle of this year followed by detailed engineering and financing.

A further £1.9 million is required to increase the height of the tailings dam wall in order to allow for continued production from the pilot plant for the remainder of 2012.

Last month, the company revealed that its BK11 mine in Botswana had been placed on temporary care and maintenance.

Firestone said the decision was due to operational challenges and current weakness in the diamond market.

Today, it said it was now reviewing its exploration assets in Botswana with a view to unlocking value from these assets.

The company's renewed strategic focus is expected to transform the company from an early stage development and exploration business to an around 1 million carat per annum producer by 2015.

Firestone's chief executive Tim Wilkes said the oversubscribed placing showed the strong support for the Liqhobong project.

Directors Michael Hampton and William Baxter have resigned from the board, the firm also said today.

In a separate stock exchange statement, the firm released results for the six months to December 31 last year, in which it reiterated that its focus was now on the Liquobong mine.

It explained that the disappointing operating and financial results reported for the period can be attributed to the weakening diamond market and technical issues at the BK11 and Liqhobong processing plants.

Further investment here is expected to reduce diamond breakages and increase throughput, it said.

In the half year, the firm posted a loss before tax of £8.76 million, compared to a loss of £1.83 million in the comparative period in 2010, while the loss per share was 2.2 pence (2010:1.2 pence).

As at year end the firm had cash of £4.2 million (2010: £10.8 million).

Wilkes explained: "The higher than expected cash outflows in H1 2012 are mainly due to the general weakness in the diamond price experienced from July 2011 combined with technical challenges experienced at both the Liqhobong and BK11 plants."

In a note, City broker Fairfax said: "While the capital raising is a surprise given the depressed share price it puts the company on a better footing to properly develop the Liqhobong project. The company has been undercapitalised and struggled with addressing operational issues at both BK 11 and Liqhobong."

It also noted that the care and maintenance programme at BK 11 is costing $65,000 a month which makes it a better option than losses that were being incurred at around $300-$400,000 a month.

"The payment of the 3 year $3m debt at BK 11 should take pressure out of cash flows, it added.

"Production of diamonds through the pilot plant is targeted at 2,000 tons/day and they are currently mining 1,500 tons a day giving them 18,000 carats a month," it said, noting this should make Liqhobong cash positive and make a contribution towards group overheads.

The processing of diamonds through the pilot plant is being actively addressed by the company by trying to improve the screening process for the fines, it said.

Summing up, it added: "The company still needs to demonstrate that initiatives being undertaken at Liqhobong are coming through – for investors willing to take a longer term view this may not be a bad entry level for the shares particularly if the fund raising gives them breathing space."

Firestone shares this afternoon were trading down 5.33 per cent, at 8.88 pence.

Firestone Diamonds to raise £14.7 million in placing following strategic review

Thu, 15 Mar 2012 07:55:00 +0000

Firestone Diamonds (LON:FDI) today announced a proposed placing to raise £14.7 million to further develop its flagship Liqhobong mine in Lesotho.

It follows a strategic review of the firm's operations and was oversubscribed, the firm said, adding the cash will also be used to repay debt, the ongoing costs of the BK11 in Botswana and for general working capital.

The company has provisionally placed 172.9 million shares at 8.5 pence a share. In order to carry out the placing, the company has reorganised its capital, it added.

The AIM quoted firm carried out the review in January and February and identified that a primary value driver was the development of the Liqhobong main treatment plant.

A definitive feasibility study, to cost around £1.6 million,for this plant will be completed by the middle of this year followed by detailed engineering and financing.

A further £1.9 million is required to increase the height of the tailings dam wall in order to allow for continued production from the pilot plant for the remainder of 2012.

Last month, the company revealed that its BK11 mine in Botswana had been placed on temporary care and maintenance.

Firestone said the decision was due to operational challenges and current weakness in the diamond market.

Today, it said it was now reviewing its exploration assets in Botswana with a view to unlocking value from these assets.

The company's renewed strategic focus is expected to transform the company from an early stage development and exploration business to an around 1 million carat per annum producer by 2015.

Firestone's chief executive Tim Wilkes said the oversubscribed placing showed the strong support for the company's Liqhobong project.

Directors Michael Hampton and William Baxter have resigned from the board, the firm also said today.

In a separate stock exchange statement, the firm released results for the six months to December 31 last year, in which it reiterated that its focus was now on the Liquobong mine.

It explained that the disappointing operating and financial results reported for the period can be attributed to the weakening diamond market and technical issues at the BK11 and Liqhobong processing plants.

Further investment here is expected to reduce diamond breakages and increase throughput, it said.

In the half year, the firm posted a loss before tax of £8.76 million, compared to a loss of £1.83 million in the comparative period in 2010, while the loss per share was 2.2 pence (2010:1.2 pence).

As at year end the firm had cash of £4.2 million (2010: £10.8 million).

Wilkes explained: "The higher than expected cash outflows in H1 2012 are mainly due to the general weakness in the diamond price experienced from July 2011 combined with technical challenges experienced at both the Liqhobong and BK11 plants."

RNS press release - Interim Results

Thu, 15 Mar 2012 07:00:00 +0000

RNS press release - Placing and Capital Reorganisation

Thu, 15 Mar 2012 07:00:00 +0000

Firestone Diamonds puts Botswana mine on care and maintenance

Tue, 28 Feb 2012 11:29:00 +0000

Firestone Diamonds (LON:FDI) said today it has suspended operations at its BK11 mine in Botswana and placed it on care and maintenance.

In a statement, the firm said it would now focus on the flagship Liqhobong Mine in Lesotho which has proven large scale diamond recoveries.

The care and maintenance programme for BK11 is aimed at keeping the mine so operations there could be readily re-started, the company said.

It comes after an operations update earlier this month, in which the company said technical problems with the secondary crushing circuit at the plant were continuing and management were considering a number of strategic options.

Firestone said the decision was due to operational challenges and current weakness in the diamond market.

Today, chief executive Tim Wilkes said: "We remain committed to the operations in Botswana and the programme at BK11 is a temporary measure that has been designed to enable a rapid re-start of operations when the technical and market challenges have been resolved.

"The company will now focus on the flagship Liqhobong Mine in Lesotho which has proven large scale diamond recoveries and remains on track to announce the definitive feasibility study in June 2012 and produce 1 million carats by 2014."

The indicative monthly holding costs of the care and maintenance programme are around US $65,000, the firm added.

Firestone also said today it had concluded consultation with its employees at the mine to ensure a "transparent and legitimate process" covering a number of options, which are in line with the labour and mining acts within Botswana.

RNS press release - Operations Update

Tue, 28 Feb 2012 11:00:00 +0000

Firestone Diamonds says recent diamond sales confirm continued strong demand

Tue, 07 Feb 2012 08:25:00 +0000

Firestone Diamonds (LON:FDI) said the first diamond tender this year held last Friday was very well attended and the prices received for the higher quality stones indicate continued strong demand.

All of the diamonds were sold, and the company plans to hold its next diamond tender in mid March 2012.

Firestone issued an operations update today, in which it said it is continuing to make good progress at the Liqhobong mine in Lesotho.

Mining is now concentrated exclusively on the Main pipe. The current mine plan is focused on extracting maximum value out of mining the K4 and K5 kimberlites and all indications are that these are the areas producing the bigger and better quality diamonds.

The K5 unit is the highest grade geological unit in the Main Pipe resource, with an average resource grade of 45 carats per hundred tonnes (cpht) compared to the average resource grade of 28 cpht for the K2 and K4 kimberlite units that have been mined to date.

As the K5 unit will be the primary focus for mining operations for the next two years, this bodes well for continued increases in production and diamond prices from Liqhobong, Firestone said.

It is continuing to improve the operation of the Plant No 1, which has already increased the grades above target. It is currently working on changes to the plant which over the coming weeks are expected to significantly reduce diamond damage and breakage which has been occurring lately with larger stones.

The definitive feasibility study for Plant No 2 is on track for completion in June. It is scheduled to start operating in 2013.

Meanwhile, at the BK11 mine in Botswana, the technical problems with the secondary crushing circuit of the plant there continue. These problems are being addressed whilst management considers a number of strategic options on the way forward for this project.

Chief executive Tim Wilkes said: "We are very pleased with the performance of the plant at Liqhobong over the past 2 months. We are implementing a programme of continued improvement and enhancement to maximize the recovery of diamonds and we are confident that we will see positive results over the coming weeks.”

“Our recent diamond tender was very well attended and the prices we received for the higher quality stones indicate continued strong demand, whilst the near gem and smalls remain under pressure. We remain cautiously optimistic for the months ahead," he added.

Firestone will update investors on the diamond sales and mine production data for the first quarter of 2012 in April.

RNS press release - Operations Update

Tue, 07 Feb 2012 07:00:00 +0000

RNS press release - Appointment of Nominated Adviser

Wed, 01 Feb 2012 07:00:00 +0000