Firestone Diamonds

IMHO I just dont think that a takeover of AFD is on the cards as FDI have got quite a few irons in the fires that are heating up nicely.

In addition, I expect that FDI will gain further exploration licences around the areas they currently hold and effectively squeeze AFD out of the picture.

Why buy an asset at full price, if you can put the company into the position of being a forced seller? My view is that FDi will create a strangle hold on exploration rights in and around the existing De Beers mines, leaving AFD nowhere to go except out the door!

The following is taken from the final results: -

We consider Botswana to be one of the best countries in the world to explore for
kimberlite. Firestone is already the largest holder of diamond exploration
rights around the Orapa Mine, and is the only significant holder of diamond
exploration rights, other than De Beers, around the Jwaneng Mine. The Company
has submitted prospecting licence applications for a total area of 15,000 square
kilometres in the Orapa and Jwaneng regions, which, if granted, would increase
the area held by 170%, to 24,000 square kilometres, giving the Company a very
significant, strategic land position.
Firestone also intends to undertake exploration in a new region in Botswana
which is considered to be prospective for the discovery of diamondiferous
kimberlites, and has recently submitted new prospecting licence applications
covering a substantial area in that region. We expect to be able to announce
developments in this regard in 2006.