Summary
ARTEMIS co-founder, Citywire A-rated John Dodd, has virtually halved his exposure to mid-size diamond prospector and miner Firestone Diamonds.
Dodd went from a 5.616% stake to one of 2.93%, or 2,305,000 shares worth Pounds 345,750 -- 25% cheaper than when he bought into the company in 2005. The disposal follows the termination of a joint- venture agreement with De Beers on mining at the company's Bonte Koe Mine in South Africa, closing down extraction. De Beers, which paid Pounds 2.5 million in compensation, said the site was no longer economical as the market price for diamonds fall and mining costs rise. Shares in the business have collapsed from a 12-month high of 201p, after it launched a rights issue in July to fund accelerated drilling at two sites in Botswana. The cash call took place almost exactly at the top of the natural resources cycle. The outlook for diamonds has dimmed as the super-rich have seen their portfolios hit.See the full content of this document
Extract
Trader Talk [Edition 3]
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