FDI Firestone Diamonds Plc

RNS Number:4621E
Firestone Diamonds PLC
26 January 2000



Firestone's successful first year

Increased cash from operations and exploration successes are spur to future

LONDON: Wednesday, 26 January 2000 - Firestone Diamonds plc (LSE: FDI.L) had a
highly successful first year as a publicly-listed company, the chairman, Mr
Jim Kenny, told shareholders in London today.

He said at the annual meeting in the City that Firestone had completed the
expansion of the Avontuur mine in South Africa and this was now generating
sufficient cash from diamond sales to fund the Company's exploration
programmes 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," he said.

Exploration carried out during the year had led to the discovery of alluvial
diamonds in ancient river channels in Namaqualand which had the potential to
become significant new diamond producing areas. In Botswana, Firestone had
recovered indicator minerals which pointed to the presence of kimberlites -
the main host rock for diamonds - in an area close to De Beers' rich Orapa
mine. 

"We are very hopeful that further exploration in both of these areas during
this year will lead to the confirmation of a major new diamond discovery,"
said Mr Kenny. 

The Company was also on the look-out for other opportunities to expand its
operations in southern Africa and had recently added to its prospecting
grounds in Botswana and on the west coast of South Africa, close to the large
operations of De Beers and Transhex, South Africa's largest diamond producers.


Mr Kenny said that one of the key elements of Firestone's corporate
development strategy was to balance its 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. Firestone's policy of investing only in relatively
stable countries such as South Africa and Botswana has proved prudent. 
Renewed conflicts in diamond-rich countries such as Angola and Sierra Leone
have confirmed our view that the risk of investing in such countries is too
high.  With many attractive opportunities still available in South Africa and
Botswana, there is even less reason to do so," he said.  



For further information, contact:

Philip Kenny, Chief Executive, Firestone Diamonds       020 7370 6452         
     

Keith Irons, Bankside Consultants              0171 220 7477/ 0585 356 639



END


CAGKKAKNBBKDDDB

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