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They were using generators before they hooked into the mains supply. Were those disposed of or can they be temporarily restored?
Oh dear! Certainly doesn't sound like choosing Eskom was a good idea at all. Perhaps they chose Eskom because they were cheaper? Companies in trouble sometimes cut their prices to the bone. If so, that may have been a bit of a bad gamble, especially for Firestone Diamonds at this time.
Sometimes low cost can come at a high price.
Bloomberg:
"South Africa is pushing coal producers to cut prices to help save Eskom Holdings SOC Ltd., the debt-stricken power utility that threatens to unravel the country’s finances."
PS I wonder how many kilowatts an hour it it take to run the Liqhobong mine? And how many generators they would need to do so? Are there even generators in existence with the power capacity to run a big mine complex? And, if so, who might have any, and how long and how much would it take to deliver them and set them up? What fuel would they require and how much would that cost?
I wonder if the Liqhobong mine already has some back up generators? Do they/did they have enough?
Seems to me there may have been a bit of an oversight there in contingency planning. Your average householder knows to keep some candles as back up in case of a power problems. So many people would expect a company with Firestone's responsibilities would have had something in place in case of power problems.
It would have been good to hear about the planned maintenance at the hydro thingymyjig in advance before it happened.
And it also appears it was known months ago, wow, lost for words. I am surprised that Lesotho Electricity Company (LEC) chose to use them on the basis of the current situation. Maybe totally wrong, but this is not what the company needs right now.
https://www.washingtonpost.com/business/energy/why-eskoms-power-crisis-is-south-africas-top-risk/2019/07/31/7a146cb4-b366-11e9-acc8-1d847bacca73_story.html
Doesn't appear as though the supplier Eskom was the best choice option??
https://www.bloomberg.com/news/articles/2019-10-03/south-africa-wants-coal-price-cuts-to-avert-economic-collapse
is a total disaster. They are walking a horrible financial tight rope. Operationally, they have been doing really well for some time, financially it's a real struggle; Will their backers combined with their cash reserve survive these poor prices. This disruption means they will burn through that cash that much quicker. I thought they had a good chance of making it with their supportive share holders. Looks a lot tougher now. Either they have to hire in generators at huge expensive or rely on the poor power supply...something of a bad choice.
Interesting trading either side of production disruption rns.
GLA
I wonder if management could have anticipated the power problems with the electricity supply?
I wonder what the exact technical and electrical difficulties are?
Something to do with amps, voltage levels, ac or dc?
Why the difficulty when changing supplier?
Domestic, residential customers in UK changing administratively from company 'x' to company 'y' don't seem to commonly experience what Firestone Diamonds have?
Will the problems Firestone are having just turn out to be a brief flash in the pan, or something more long-lasting, structural and systemic?
I appreciate the frankness in a number of their recent RNS's.
I wonder what current (and future potential value?) these major investors are seeing in the Company and why they are holding such large stakes?
At the moment it feels as if the only 'brilliant' bright spots and 'crystals' being produced are the finer, large carat diamonds, once polished.
Talking of polish, I see some shares are being 'polished' up again, following the second sizable drop in recent weeks.
Whot to do .firestone have left a trail of skint investors over the last 15 years .was hoping new management were going to get it right this time.
So, we have two options.
1. A brilliant investment opportunity at this price, or
2. A surefire way to lose your total investment.
Where's the crystal ball!
Quote:
"The Company announces a production disruption at its 75% owned Liqhobong Mine in Lesotho due to intermittent power supply. The Liqhobong Mine is supplied electricity from the Muela Hydropower Station (MHS) which is owned by the Lesotho Electricity Company (LEC) and which forms part of the Lesotho Highlands Water Project Phase 1 Katse Dam.
The MHS commenced a two month maintenance shutdown on 1 October at which time ongoing supply was to be provided by Eskom, South Africa's power utility company. Since then, the mine experienced unexpected voltage fluctuations that caused the drives of the plant equipment to trip and as a result, operations have been severely disrupted. Management is addressing the issue urgently with the LEC and Eskom, and will provide further updates in due course."
The power problems and production disruption, it seems to me, are very unfortunate, convergent events; happening, as they have, in the run up to voting on resolutions at an upcoming General Meeting which - if passed - could see the percentage shares of the Company (and potential influence and control?) of two major shareholders increase significantly.
I see, in information publicised elsewhere by Firestone Diamonds, that 25% of the Liqhobong Mine is owned by the Government of Lesotho.
I wonder if the Government of Lesotho have any influence and/control over the Muela Hydropower Station/Lesotho Electricity Company/South Africa's Eskom?
Perhaps Firestone Diamonds may wish to consider investigating and asking whether it is possible for the two month long maintenance programme that commenced on 1 October at Muela Hydropower Station
(which I just learned about for the first time in today's RNS!) can be suspended?
I remember quite a while ago someone posted that FDI control could be taken out of investors and management hands by institutions for financial defaults without any compensation to private investors, is this what could be happening?
Some junior MM must be getting a *******ing. It's now ome up again dated 02 Oct... Ah well the dream was good while it lasted. :(
1.0p paid.... Lol I thought I was dreaming... is back on the board :
16:10:58 1.00 30,000 Buy* 0.70 0.75 300.00
Lol... Must have been... It's been removed... Someone was having a laugh...
.. 1.0p paid!! Must be an error?
By my rough workings out.when the new shares are issued. ii will hold 95% of the shares .is this a problem.
Did anyone actually notice what was in the RNS! There is a question mark over the going concern sign off down the road as the debt holders will get close to the 30 per cent threshhold which allows them to control the company, i.e de-list and stuff the PIs. Happens all the time with smaller speculative minng companies. And there's nowt the management can do other than agree in order to save their jobs. Two things will make a difference - an upturn in the diamond market and finding some big stones. I've always said this stock is a call option on the latter. So far we're not having much luck!
The silver lining is this sell off is low volume. £26k on a £4 cap. on what is generally a bad day in the markets.
"Perfect, remember Top Up on the lows to reduce your average and recoup your losses :)"
I disagree, I would always advocate putting your finite monies into the investment that you think will yield you the best return. If you think it is this share, great but if you think it is another share that would provide a better return then that's your answer.
Too many people average down just so it looks like there have less of a share price movement before they break even. Focusing on your average is poor advice, focus on placing your money in good investments.
That said this might be a good investment, dyor and all that.
...and this is a low right??
Perfect, remember Top Up on the lows to reduce your average and recoup your losses :)
DYOR... I have...
GLA
Down 30% this morning, looks like someone knows something we (humble) shareholders don't.
Disgraceful.
K
Guess it gives us time for market to recover and make the cash last.but I did not invest here for that.plss poor..
However further deterioration in the financial or trading position is possible and may have material implications for the solvency of the Company independently of the passing of the Resolutions.
That bit seems pretty clear!!! I'm out!
What a lot of gobbledegook! Sounds like more dilution to me. Any translation for us simple folk please?