Pay 20c in the ipo and watch them go down to 1 cent shortly thereafter. Think I'm just being negative? That's exactly what happened to FDL when they floated for 20 cents per share in 2002. Not too long after they were at 1 cent or even less occasionally. Why should this be any different? They have been spending our money freely since 2002 and have never found any diamonds other than basically a little diamond dust.
My opinion is that that is the reason for the breakaway. The iron ore team have said enough and simply refuse to supply them any more money because all the funds raised by FMS has been raised for iron ore not diamonds. That leaves the diamond group with two choices. Either raise their own funds through an IPO or simply walk away and abandon the diamond tenements. No institution has made an offer for the diamond prospects so, as they say "it's this or nothing".
Personally I think we would be financially better off by cutting our losses and walking away rather than wasting another $1.5 million to sub them until the float. I've been a shareholder since 2002 which is as long as they have been involved and have never sold a share. I have stood loyally by the diamond team since then but the way they've handled this by gifting free shares for the boys imo is simply arrogant and greedy.
Ask youself this question: If they weren't given free shares would they spend their own money and buy shares like they expect us to do? If they wanted to show they had real confidence in finding a commercial diamond mine then, imo that is exactly what the would do. But of course they're not so, for me, that answers the question.
In my opinion they care nothing about shareholders and have totally lost my support. I will definitely vote against the proposal. 49% of nothing is still nothing. No more wasting my money thanks.
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