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never a consolidation...
Hi all - Has there ever been a consolidation here? Or is it just the case that the SP performance has been rubbish?
Does this free up management to buy shares, now the horse trading is done.? Some effort to support share price is needed
Its good news short term IMHO
"Previously the Company has issued ordinary shares to pay quarterly interest amounts due. However, due to consequences of the UK takeover Code, in the absence of shareholder approval to permit the Bondholders to receive ordinary shares thereby increasing their shareholding to above 30% without triggering a mandatory offer to minorities, the Company would be unable to issue further ordinary shares at the next interest due date, being 30 September 2019.
The Company has undertaken to work collaboratively with the Bondholders and other stakeholders including minority shareholders to agree a means through which the Company can continue to fulfil its obligations to service interest on the Eurobonds and satisfy the requirements of all its lenders.
Paul Bosma, Chief Executive Officer, commented:
"We are grateful for the strong support we have received from ABSA, the ECIC and our Bondholders in what is a tough period for the smaller stone segment of the diamond market. Operations continue to perform well, and we aim to ensure that we remain in a strong position to benefit from an improvement in the pricing environment in the future."
In simple terms, what does the latest RNS imply??
All responses appreciated.
"Firestone is pleased to announce that, with the support of its Bondholders, Pacific Road Resources Fund II L.P., Pacific Road Resources Fund II and Resource Capital Fund VI L.P. ("Bondholders"), its 75% owned subsidiary Liqhobong Mining Development Company (Pty) Ltd ("Liqhobong"), has received a waiver from ABSA Bank Limited ("ABSA") for certain of its covenants measured as at 30 June 2019 in terms of the US$82.4 million Senior Secured Term Facility Agreement. The waiver is supported by the Export Credit Insurance Corporation of South Africa ("ECIC"), which has provided commercial and political risk insurance to ABSA. The next measurement date will be 30 June 2020.
Background
Mining operations at the Liqhobong Mine have performed well, as detailed in the quarterly operational updates reported for the first nine months of the current financial year. Tonnes mined and treated were in line with the Company's plans and operating costs remained below budget.
However, despite the recovery of several higher value diamonds at the Liqhobong Mine during the 2019 financial year, and an average value realised for the third quarter of US$80 per carat, the average value realised for the three quarters ended 31 March 2019 remained below expectation at US$74 per carat. The lower average value was impacted mainly by lower prices realised for the smaller, lower value goods, which has also affected many other diamond mining companies and the wider diamond industry.
Certain of the ABSA covenants are forward looking and require forecast assumptions to be made. In light of the current pricing climate, lower average dollar-per-carat values have been employed by Firestone in these covenant calculations, which has adversely affected the covenant measurement and given rise to the need for waivers in respect of two of the six covenants.
Despite these factors, the mine continued to generate positive cash flows after finance costs and the Group continues to be in a strong liquidity position with a cash balance of US$26.2 million as at 30 June 2019. The cash balance is stated after the first capital repayment to ABSA of US$1.9 million, following an 18 month capital grace period which came to an end on 30 June 2019.
Waiver condition
As a condition to ABSA's covenant waiver, the Company has obtained an undertaking from the Bondholders to waive the requirement for the Company to pay quarterly interest in cash or in shares on the Series A Eurobonds for the 12 month period from 1 July 2019 to 30 June 2020, subject to an agreement on alternative arrangements being reached with the Bondholders.
??????
Number 7 repetitively giving false info on stock then when I buy it goes down?! I have brought stock for 97p and it's not on 8? Could anybody help me please? If your info is false do not share to genuine buyers!!!
And still the silence continues!
How cheap do those shares need to be before management buy.spineless springs to mind.
Amazed they haven't done this already
X-ray scanning of low fluorescence diamonds (FDI's are low florescence) - wtf!!!!!!!!
Should have done this ages a go, It's very important.
This article dated 3rd March 19 says Argyle has 400 days roughly until closure. That means we are looking April/May 2020 for closure of Argyle, and hopefully a bump then(or before then) in market prices.
https://blog.arpegediamonds.com/what-might-happen-when-the-argyle-mine-closes-in-2020
Also under 'Liqhobong Upside Potential' - There is:- XRT trial
Dont know what that means, I will ask if I get the opportunity
Hi. Yes management have replied to my email.
Diamond prices: 311 carat nr makeable - $230k / 72 carat - $560k, 22 carat - $360k, 12 carat pink - not yet sold (all found in the special weekend). 46 carat sold in Feb 19 - $1.23m and the record 70 carat - $1.62m.
They reason they most give is the market prices which are beyond their control, over supply in the market since 2016.
Stornoway and Mountain Province who are also juniors and have similar product have also had the SP trashed.
It rests on Argyl closure, by which 14m carats will disappear in 2020, helping market prices to recover, and in total 23m carats will disapear by 2023. Replacement production will only be 12.8m carats in the same period, so bar the next slow down, prices should rise.
We'll start to pay down debt with cash going forward, no more dilution. Management couldn't really comment on not buying shares, even though I pushed them, sighting Market Abuse regulation, but did say they are in for the long term and SP appreciation. They are also going to try and rework the balance sheet in the short term.
Personally, I think I just have to be patient and have faith,(which is really, my only option)
New low no surprise there then , At least management are on the case sorting it out for us, only joking. Stella diamonds was around this price when they where taken over for around 11p a share .I am clinging on hoping for a bid ,
Here we are another Friday, and a new low, this has been the pattern the last 2 years. Some one has this share price in a vice like grip and attempt to recover has been swiftly crushed. And management has sat back and watched it happen so as day follows night has to be complicit with it. My guess is its major shareholders cant see who else could get away with it. To whot end I guess we will have to wait and see, Has management replied to emails!!!!
https://www.theassay.com/videos/interview-paul-bosma-firestone-diamonds/
From May 11th...
ha! - only if they respond, you should all email. The genovese address is incorrect but the others are OK
Excellent!
'pbosma@firestonediamonds.com'; 'rgenovese@firestonediamonds.com'; 'gferriman@firestonediamonds.com'; 'gblack@firestonediamonds.com'
As a significant shareholder I’m concerned there has been no management buy, even at this low share price.
You are sending a negative message to shareholders, to the market. We have been told of plans to reverse the plummet in the SP, would management buying FDI shares not show some confidence in the plan that you designed and we as shareholders have followed?
I, and other shareholders are very concerned there are ulterior motives in regards to the future of the company. With deafening silence from the company on Diamond sales, prices, no management buys, what-so-ever, from directors with miniscule holdings and a share price that has fallen from 50p to 1.65p its time management communicated with shareholders and showed some commitment and confidence in the company.
Can you please:
• Confirm the price of the last 4 diamonds sold;
• Purchase some shares to show commitment and that you believe the company has a future
• Update the shareholders on further plans to reverse the plummeting SP and find more diamonds, possibly with a XRT machine.
This is a very real concern for us, and some good faith from management is well overdue.
1) Paul Bosna is CEO, previously op manager, and previously (before becoming ceo) heavily involved in the fund raising and finance arrangements.
2) The company owes approx 90 Million US$
3) The company has approx 29 to 31 Million in Bank
4) The diamond sector is awaiting Argyle closure, but countering that is the lab grown diamond growth, and liquidity concerns, (the banks are very nervous about the diamond market and the ability of their debtors to repay loans)
5) The fact that the placement @ 10p only gained modest support from director buys (token amounts of shares) and NO FURTHER director buys, despite the collapse in the share price - speaks volumes.
6) All could change with three splendid finds! But we've been waiting and it's not happened yet.
Best wishes to all.
Ive been invested in this company for over 10 years. My holding is now worth 4k and my average is over 45p (you do the math!) having significantly increased my holding a couple years back. When the answer to every problem is issue more and more and more shares, the share price is only going one way... I wish you all the best of luck but I think the only thing I’ll be using FDI for is reducing my tax liability from a huge loss. Real shame. This company had so much potential.
Totally agree with you copland.
I don't understand how such a small volume of trade can drop the share price by nearly 15%.
Then on days when there is double that in volume of buys, it only goes up 2-3%, its ridiculous.
There is no honesty these days, its about time the BOD started to provide some positive updates on a regular basis and turn this company around.
I seriously thought when they did the share open offer at 10p, this would never of dropped below that price, and things would start to improve.
It appears to me we are keeping everyone else happy at the top, with no loyalty to the long term small investors like myself.
On the run up to getting into production, we were at 56p a share, now look at ourselves, absolutely pathetic. We must be running at a loss every month, as I can never make any sense of the financial reports as they are written in such a way that you have to be a professional accountant to understand them.
I was wondering if we have any management in this company the site manager Paul Bosma has shown his face a few times. where are the rest of the wan??rs But it feels like the 2 major share holders are running the show and why where they given 20 million shares to pay 400 k of intrest, why cant the company pay that from earnings. I have so many questions It is starting to feel as bent as a 9 bob note to me,
This is getting pretty darn serious. We can only hope that FDI can come up with something in the very near future. I am still shocked by what has happened to this company and its promise as are many others I guess!