lse:FDI Main Discussion



Your average price per FDI share must now be a lot lower than mine, but I remain hopeful as trading is still mainly small volumes.

They must be getting to some of the better areas now but I honestly don’t know. The recoveries must surely be better this quarter; the dollar is strong & Rand is weak - helping on £ value & £/$ cost fronts. But I still worry that they haven’t found any really big, good gem stones recently.

Lucara, however, did much better once down from the surface & weathered levels a bit - and FDI should do the same eventually.

FDI only need to recover a few such large stones & the share price will recover rapidly… but nobody knows when this might be done and, until then, the share price will stay low given the debt outstanding.

I do think that FDI may start to sell its best yellow gem stones to Tiffany, for a better return than in standard auctions. If Tiffany want to specialise in high value jewellery arrangements for their VIP customers, they will want to guarantee their supply chain. We will see in due course.

Good luck… we and the major shareholders (whose average must be near 20p an FDI share, having bought most at 30p equiv., with extras in 10p placement), still need it I feel.

Right now, I need some of my other prospects to do well too… FRR, VOG, JLP, ZIOC, OBT, MCM, NANO in particular.


Bought back in at around 5p having been out for over 10 years and topped up a few more today. Happy to keep adding at this price, am sure the rewards will come


Good luck… still very risky here but I have some hope that the last quarter to be reported later in October will be a bit better in terms of diamond recoveries. Just topped up one last time @4.75p.

Very disappointing in terms of large stone recovery so far, but Lucara & Gem Diamonds did much better as they went deeper into their kimberlites, so FDI may do so as well. Still finding quite a few coloured stones… but need to see the overall price per carat increased; and the debt paid down more quickly if at all possible.


And another new low but hardly any volume to speak of. Just need a few decent stones reporting but if/when is the question…


Are FDI due to put out a quarterly update soon? A few buys the last few days, shrewdies topping up?


Yes, the quarterly report on operations, diamond recoveries & sales for 1st quarter of their FY18/19 (July - Sept) is due out this week. The last report on financials FY17/18 indicated that the good end year had continued up to the date of publication, and they are mining across the top levels of the Main Pipe to extract kimberlite that is undiluted by waste material and unweathered - which should help recoveries.

The kimberlite itself comprises several zones with differing prospectivity for gem stones. The better zones, historically, improve with depth; but right now they are being careful to measure the recoveries for each of the six categories of zones to re-validate the overall mine value.

As FDI reported before, the prices for run-of-mill small stones are relatively weak but the larger, high quality gem stones - pink, yellow & clear are selling at much better prices - hence their involvement with Tiffany in New York (implied by FDI tweets giving links to pictures of some of their best pieces of multi-colour diamond jewellery for VIPs).

Extraction of some much larger gem stones is well overdue in terms of probability - so the debt has to be very carefully managed at present.

Encouragingly, none of the major shareholders have reduced their positions & the mining operation is clearly being run very professionally.

Certainly, my own exposure here is much higher than I intended; that’s the problem of emotional attachment since the days of EPD, KDD & FDI - and meeting of their directors at AGMs, etc

FDI, and shareholders, are certainly due a bit of good luck, hoping it’s not my involvement holding them back.


Thanks for the post HPC fingers crossed the update is positive


Quarterly report is later than usual; that could be good or bad.

It must surely be published next week now, possibly with some post quarter news. There ought to be record levels of ore processed but diamond recoveries will be key - also price attained.


Needs to be good fingers crossed.

Our market cap is currently 23m with 524m shares in issue but we are being diluted with the 15 million euro bond thing to pacific and RCF can you clarify the frequency of this and how long it will go on for.

As you say need to start finding some of them big ones that supposedly got broke in the old crushers where the hell have all they gone.

Tbh I think if they had of found anything decent the price would of moved by now.



More dilution must be 40% plus since the original 30p .I have increased my holding by 250% since then, still hanging on, I to have been hear since EPD days, hopefully we will be rewarded soon .


Decent update, pretty positive and at last I feel FDI are on their way to being the diamond producer they have always promised. The big fancy stones will come!


Yes, respectable figures for winter production & proof they can recover > 300 carat stones without breakage. Stone quality usually improves with depth too (hotter & higher pressure than near surface) so encouraging.

Diamond prices are due to improve with shortages over next few years too, and a small increase will help a lot.


Look on page 23 of the last FDI Annual Report… quite a lot there to review, noting the debt is still being paid down progressively with a holiday on ABSA at present.

Risks seem to be well managed; a few big, good quality gem stones would make a big difference.


I’ve also topped up considerably since the 10:1 consolidation - now holding 525,000 shares, but my average price per share, despite doubling my holding in the last year, is still quite high; although probably now better than the major shareholders who can’t more than double their holdings easily like small investors can.

Can’t really justify increasing my holding any more right now - but FDI operations & returns are starting to improve. If the SP stays low, if I can find the cash, I might top up again… but better if FDI continues to improve their business performance for the SP to rise. Clearly if diamond finds improve & the average price per carat goes up, the debt would be paid off early - the best scenario for future profits…


Also, note that the Eurobond dilution is due to FDI choosing to pay shares in lieu of the interest payable on the loans (c. 8% p.a.) every quarter. They can up/down those loans to better manage ABSA loan re-payments & have quite a bit of cash now for flexibility. These don’t have firm repayment date schedules like ABSA.

If production diamond recoveries improve with depth, as it should based on the varying prospectivity of the K1 to K6 zones for large/fancy gem stones, and diamond prices do improve as expected, then FDI will still do very well. None of the Major Shareholders have reduced their stakes either, which is encouraging for the longer term too.


Glad to hear you are still invested here too… you may re-call we met at an FDI AGM once or twice… & even emailed each other.

I hope to go to the AGM on 28th November, so perhaps I will see you there?


Cant go to AGM this year as I will be in Cyprus .will be good to hear your conclusions on events at AGM if you can go. I would like to see management start buying shares in FDI to give the share price a lift. Perhaps you could show them the wisdom in this. Its been painful watching the share price drop by 90% .But it has allowed us small investors to increase our holdings but share price has to recover to be of any benefit which seems more likely than not, now. At least now after years of hard work by all concerned we are in a real position to find diamonds of world class quality .WELL DONE CHAPS,


Have a good time in Cyprus… will report back post AGM all being well.


It’s about time the FDI directors dipped into their pockets at these depressed levels, would at least generate a bit of interest and show there support. Can’t understand dumping stock at these prices, down on a 100k sell today.

Also anyone think FDI might be an acquisition target at this sort of market cap? They would appear to be well on their way to being a decent diamond producer now, admittedly with a fair bit of debt but thats being serviced and the cash balance is healthy.


The 100,000 sell @4p was almost certainly due to someone putting an optimistic 4p bid for that quantity - which someone decided to take because they wanted to re-invent that 4p a share (£4,000)somewhere else quickly when FDI didn’t improve its SP post a reasonably good quarterly operations report. I can understand why someone might have sold early today to buy KP2, perhaps ALGW, OEX or another favourite with good news expected very soon.

The true value of FDI is much higher, but the major shareholders are happy to see a low share price for their Eurobond interest conversions; and because they are all in for the medium/long term after the loans are cleared.

Only new buying interest will raise the FDI share price significantly; and this will probably need some large, good quality gemstone recoveries.