After moving into the black last year, Firestone Diamonds expects healthy current operating profits at Bonte Koe in South Africa.

The AIM-quoted concern, headed by second-generation sector player Philip Kenny, turned a £498,000 loss into a £70,400 pre-tax profit in the year to June on turnover up 173 per cent to £1.6 million. Firestone, which ended its financial year with cash down from £4.75 million to £1.1 million, enhanced its finances after its year-end by selling its stake in African Diamonds for a £2 million profit.

During the year, the London-based company was active in Botswana, where it won prospecting licences over the Tsabong kimberlite field, at which it discovered 13 kimberlites, and, since June, it has won new licences over 4,000 sq kms. Firestone has increased the number of its diamondiferous kimberlites in the country to 23, out of a total raised to 92, and is now commissioning a bulk sampling plant.

In South Africa, the company says it has reached full production at its Bonte Koe toll treatment mining joint venture with gem giant De Beers and argues Bonte Koe is expected to produce revenue of £3.5 million in the current financial year and operating profits of £2 million. Firestone says it is now evaluating further expansion at Bonte Koe and pursuing new projects in Botswana, where it suggests potential for a 'significant economic kimberlite discovery'.

Chief executive Kenny boasts Firestone has assembled a 'dominant land position' in gem-rich Botswana's diamondiferous kimberlite fields and expects 2008 to be 'an exciting year'. Firestone's volatile shares, floated at 114p nine years ago, are half their 2005 peak at 97p, valuing the company at £54 million, and might provide some action in the new year.

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Firestone Diamonds	AIM	£13.58m	22.00p	0.00p
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Firestone hails Botswana find			04/03/2008
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Botswana boost for Firestone			25/02/2008
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