Firestone profits drop like a stone
Firestone Diamonds, AIM-quoted mining company, took a tumble after full year figures showed it had plunged deep into the red.
Firestone Diamonds, AIM-quoted mining company, took a tumble after full year figures showed it had plunged deep into the red.
The firm posted pre-tax losses of £30.4m, compared to a £3m loss the year before, on revenues that jumped to £6.5m from £2.5m.
A large proportion of this - £19.8m - related to an impairment charge and operating losses at its BK11 mine in Botswana, which has been mothballed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm has been hit by rough diamond prices, which declined significantly in November 2011 and have not yet recovered.
More specifically, the prices of smaller, near gem and brown diamonds present at its Liqhobong site in Lesotho remained under pressure, it said.
It is also undergoing a restructuring under its new management team and is focusing on Liqhobong, with the goal of becoming a one million carat per annum producer from 2015.
The company did no work on any of its exploration licences in Botswana during the year, saying it was investigating ways of unlocking value from these assets.
Shares were down 15.7% by 15:15, following the announcement.
MM
-
Adidas, Nike or Jordans - could collectable trainers make you rich?
The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
By Chris Carter Published
-
Early bird ISA investors flock to global funds, India and the US
There’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
By Vaishali Varu Published