Firestone Diamonds - Final Results
December 15 1999 - 2:30AM
UK Regulatory
RNS Number:5314C
Firestone Diamonds PLC
15 December 1999
Preliminary statement of results
For the period from 24 June 1998 to 30 June 1999
HIGHLIGHTS
* Major expansion of Avontuur mine completed
* Diamond production substantially increased
* Operating profit and positive cash flow from South African operations
* Positive results from exploration
* New exploration projects in Botswana
LONDON: 15 December 1999 - The past year was one of significant growth and
development for Firestone Diamonds plc (FDI.L). Since admission to trading on
the Alternative Investment Market (AIM) of the London Stock Exchange in August
1998, we have made substantial progress on many fronts. The pace and scale of
our exploration activities have been substantially increased and have produced
positive results. Mining operations have been considerably expanded and are
now producing positive cash flow, which is currently financing all of
Firestone's operational and exploration expenditures in South Africa.
Firestone is now debt free. We have no further capital commitments in respect
of our existing projects and have sufficient funds to support their current
requirements. With increasing cash flow from Avontuur to finance South
African overheads and exploration expenditure, we are well positioned for
further growth in the coming year.
Mining
Much of our activity during the year was focused on the implementation of a
major expansion programme at the Avontuur Mine, to double earthmoving capacity
and increase gravel treatment capacity by approximately 60%. This restricted
production for the first half of the financial year, during which a total of
799 carats was produced. Production for the second half of the financial year
rose by 52% to a total of 1,222 carats. Since June, production has continued
to improve, rising to 4,313 carats for the five months to the end of November
1999, representing an increase of over 410% in average monthly production
compared to the previous 12 month period. Production for the month of
November reached a record level of 1,583 carats. Diamonds produced were
approximately 85% gem quality, with an average size of 0.2 carats per stone.
Demand for rough diamonds during the year has been strong, and analysts
predict sales for the De Beers-controlled CSO to reach a record level of $5.2
billion in 1999, an increase of 56% on 1998. Demand for Avontuur production
has also been relatively strong. The average price achieved during the
financial year was $97 per carat, but sales since then of similar quality
diamonds have achieved an average price of $103 per carat
Exploration
South Africa
The Groen River Valley continues to be our most important exploration project
in South Africa, and results to date have been very encouraging. A permanent
exploration base was established to support exploration activities there.
Three high priority target areas were identified by analysis of aerial
photography and satellite imagery, and an extensive drilling programme was
carried out which confirmed the presence of potentially diamond bearing
gravels in all three areas. Excavations were carried out at two of the target
areas and have proven that the gravels are diamondiferous. Excavations are
now under way at the third target area.
We remain confident that the Groen River Valley has the potential to become an
important new alluvial diamond producing region. With the substantial land
position that Firestone holds in the Groen River area, we expect that this
project will make a significant contribution to the company's future growth.
Botswana
Botswana is the world's largest producer of diamonds by value and is
considered to be one of the best countries in the world to explore for
kimberlite - the primary source rock for diamonds.
Results from exploration at our Mopipi joint venture, located about 50
kilometres west of the De Beers' Orapa Mine, are very promising and have
exceeded our initial expectations. The results indicate that it is likely
that diamondiferous kimberlite is present in the area surrounding Mopipi. As
kimberlite pipes typically occur in clusters, and no kimberlite has ever been
discovered west of Orapa, the indications for the discovery of a new
kimberlite field are good.
For these reasons we decided to significantly increase our land position. We
expanded the area being explored by the Mopipi joint venture. We have
recently been granted two new prospecting licences, known as Mopipi South and
Mopipi West, and have entered into a new joint venture on them. Also, we
recently entered into an option agreement regarding another area near Mopipi,
known as Mopipi North.
The overall area of Firestone's exploration interests around Mopipi has
increased from 70 square kilometres at the start of the year to over 2,000
square kilometres at present. Work has already commenced in the Mopipi South
and Mopipi North areas and is expected to be completed in the first quarter of
2000. Results of this work will be reviewed, along with those from Mopipi, to
identify and prioritise suitable targets for further evaluation and drilling
during the year.
Financial
The most important event of the year from a financial standpoint was the
completion of a fund raising in August 1998 which resulted in #2.1 million of
new funds being introduced into Firestone by means of a share placing. This
coincided with the company's shares being admitted to trading on AIM. The
primary purpose of the fund raising was to finance the expansion at Avontuur
and to establish the necessary infrastructure to support more aggressive
exploration activities in South Africa and Botswana. Results for the year
show a modest loss, in line with expectations.
Outlook
One of the key elements of Firestone's corporate development strategy has been
to balance our investments between advanced development and production
projects which can provide short term cash flow, and large scale exploration
projects which have the potential to yield significant reserves of gem quality
diamonds. This strategy has served us well to date and we intend to maintain
this balance in the future. We intend to continue to add to our mining and
exploration projects in the coming year, both through internal development and
acquisition, and are already evaluating a number of suitable opportunities in
locations where our experience and expertise may be put to good use.
We have built a solid foundation for the company over the past year. With the
highly experienced and capable management team that we now have in place and
the considerable potential of our mining and exploration projects, we look
forward with confidence to another year of growth and development.
James F. Kenny
Chairman
14 December 1999
FIRESTONE DIAMONDS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
PERIOD FROM 24 JUNE 1998 TO 30 JUNE 1999
#
Turnover 84,409
Change in stocks of finished goods and in work in progress 50,601
Production 135,010
Other operating income 15,639
Raw materials and consumables (29,515)
Staff costs (58,782)
Depreciation and amortisation (45,119)
Operating profit before administrative costs 17,233
Other operating charges (97,889)
Operating loss (80,656)
Interest receivable and similar income 43,070
Interest payable and similar charges (2,599)
Loss on ordinary activities before taxation (40,185)
Tax on loss on ordinary activities (22,674)
Loss on ordinary activities after taxation (62,859)
Earnings per share
Basic loss per share (0.3)p
Diluted loss per share (0.3)p
Turnover is wholly derived from continuing activities.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
PERIOD FROM 24 JUNE 1998 TO 30 JUNE 1999
#
Loss for the financial period (62,859)
Currency translation differences (6,504)
Total recognised gains and losses for the period (69,363)
FIRESTONE DIAMONDS PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 1999
1999
# #
FIXED ASSETS
Intangible assets 2,822,486
Tangible assets 1,609,315
Investments 29,349
4,461,150
CURRENT ASSET
Stocks 82,140
Debtors 167,089
Cash at bank and in hand 416,140
665,369
CREDITORS
Amounts falling due within
one year (88,470)
NET CURRENT ASSETS 576,899
TOTAL ASSETS LESS CURRENT LIABILITIES 5,038,049
PROVISIONS FOR LIABILITIES
AND CHARGES
Other provisions (10,513)
Deferred taxation (71,050)
(81,563)
NET ASSETS 4,956,486
CAPITAL AND RESERVES
Called up share capital 4,596,798
Share premium account 1,402,242
Other reserves (1,076,399)
Profit and loss account 33,845
SHAREHOLDERS' FUNDS 4,956,486
P Kenny
Director
FIRESTONE DIAMONDS PLC
CONSOLIDATED CASH FLOW STATEMENT
PERIOD FROM 24 JUNE 1998 TO 30 JUNE 1999
1999
# #
Net cash outflow from operating
activities (239,173)
Returns on investments and
servicing of finance
Interest received 43,070
Net cash inflow from returns on
investments and servicing of finance 43,070
Capital expenditure and financial investment
Payments to acquire intangible fixed assets (871,442)
Payments to acquire tangible fixed assets (693,996)
Receipts from sales of tangible fixed assets 215,280
Payments to acquire investments (3,965)
Net cash outflow from capital expenditure
and financial investment (1,354,123)
Acquisitions and disposals
Payment of deferred consideration
for subsidiary undertaking (119,420)
Net cash outflow from acquisitions and disposals (119,420)
Net cash outflow before use of
liquid resources and financing (1,669,646)
Management of liquid resources
Cash placed on 30 day deposit (313,319)
Financing
Issue of ordinary share capital 2,039,838
Increase in cash 56,873
END
FR ASAWKKAKUAAA
Firestone Diamonds (LSE:FDI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Firestone Diamonds (LSE:FDI)
Historical Stock Chart
From Jul 2023 to Jul 2024
