Ariana Resources Share Discussion Threads

[8rad] 01/5/2019 10:24

Yes what broker. Seems like Kerim just repeated the Mining Maven interview last night but still all pretty positive stuff.

[soulsauce] 01/5/2019 09:14

Agree Charles, if only they had taken more care of the raisings in the past and aligned themselves to a better and less corrupt broker and may be they wouldn't have lost some shareholders respect for a while.
That said they seem to have more than redeemed themselves, however as Biggles says and echoes my thoughts, there is still work to be done on the broker front ;-)

[charles clore] 01/5/2019 09:05

Soul, biggles - I agree Kerim came across very well in the interview. He seems a very genuine person and in the past years could not always tell us everything i.e. fundraising plans etc. Judging by his demeanour it seems to me that he is now free of any underlying worries. I think the company could be on the cusp of a serious re-rating.

[soulsauce] 01/5/2019 08:56

Many thanks Michael, great post.

[jaynesdad] 01/5/2019 08:53

Thank you Michael, a comprehensive post
JD

[michaelmcandrew] 01/5/2019 08:44

A brief note of last night's presentation:

Attended by Kerim, MDV and Chris Sangster, NED. Bill Payne was otherwise engaged.

Presentation by Kerim - as good as come to expect with all questions answered. He gives an aura of confidence and honesty.

The content was underpinned by the company's Corporate Presentation from April.

There was little new but the following points may be of interest.

There will be a further update on costings in the next month or so. Company has strong operational record and its discovery track record speaks for itself. Proud of discovery costs @ US$15 per oz against an industry average @ US$43 per oz.

The bank is very happy with the repayment record and is likely to be the first port of call for new funding requirements. The current construction capital loan will be repaid by April, 2020 and 95% repaid by end of 2019. Substantial cash remains within the joint venture after distributions to partners. There will be no returns of cash to shareholders once the loan is paid off as there will be an ongoing need for new investment, particularly in Salinbas. A placing / cash call cannot be ruled out if it became necessary. Shareholders present made it clear that would not be welcome.

Refined gold is sold to the Turkish Central Bank at the spot price and paid for in Turkish Lira. It is immediately converted to US$.

Expects share price to improve as debt is repaid.

Turkey is very sound so far as mining is concerned with solid incentives for gold miners. Turkey is the leading gold producer in Europe. There are no obvious political risks for gold miners in Turkey. There is little Chinese involvement in gold.

Kizilcukur is not large enough to justify on-site processing.

Arzu South at Kiziltepe will be mined out by the end of this year with Arzu North and Derya coming on stream later this year. Permissions are already in place. There will be a focus on stockpiling to ensure continuity of gold production

Excited by the potential of other parts of Kiziltepe and between Kiziltepe and Kizilcukur.

Tavsan currently has a 4 year life but there is potential to increase this. This will be the next area to come on line for production with a fair amount of work already taking place. Uncertainty about when production will commence as this depends upon the grant of permits. 2020 remains the broad target but this may slip following the social impact process. Reluctant to be more specific following slippage at Kiziltepe.

Salinbas is in a fantastically rich area for gold prospects.

Eldorado's exploration of 20,000 metres cost $9m - a further 20,000 metres is needed - this will be less expensive.

Drilling to explore Salinbas North is planned to start in May this year with first results by end of June. Only drilling will prove that targets are viable for gold production but there is the potential for between 1.419m and 2.727m ozs of gold based on the proof of concept. There is increasing confidence that targets will be viable. The footprint at Salinbas is huge compared to Red Rabbit.

Development may take several years - 10 rather than 5 before any commercial mining.

This is just part of the portfolio being developed by the company - the exploration side of the business is an essential part of sustaining the longevity of the company.

Hope that gives a flavour of a very upbeat presentation.

[bigglesbingham] 30/4/2019 20:28

Yes very eloquent and confident and spot on soul with interviewer making sure everyone knows there's a discrepancy between share price and value of assets. Then Kierem makes sure he thinks it will be closed as we progress. If salinbas gets half decent results then speculators will pile in, market cap will rise to raise interest of institutions and who knows panmure gordon may do what they are employed to do! I know that's why Kierem is still employing them.

[soulsauce] 30/4/2019 18:44

Excellent interview, in fact one of the best I have heard thanks in part to the interviewer.

Salinbas drilling next month.

[bigglesbingham] 30/4/2019 16:42

Excellent update taste of what's coming tonight

[carcosa] 30/4/2019 15:18

New video from AAU/IG UK

Expectation of production increases every quarter for the remainder of the year.

[bigglesbingham] 29/4/2019 21:24

If they give balance we also need to know the drilling expenses that are still to be paid out of balance.

[8rad] 29/4/2019 18:49

Capstick..spot on. A simple direct question for any attending please the current account balance.

[swallowsflysouth] 29/4/2019 17:35

Sadily cannot make tomorrow's presentation. Hopefully others will attend and be able to give some details.

[catsick] 29/4/2019 15:42

Probably will get some sort of rns tomorrow am as they are presenting, plenty to update on, hopefully we get an update on how healthy the bank balance is ....

[bigglesbingham] 26/4/2019 12:36

You have to issue rns then rns every time you go above or below a threshold. Pain in bum

[charles clore] 26/4/2019 12:22

Biggles - out of interest, what are the implications of going above 3%?

[bigglesbingham] 26/4/2019 11:48

I agree totally. However many are in for salinbas potential and if results poor then some people will leave having effect on market price. However as we near drilling results from salinbas people will pile in increasing the price. So investors have a choice , get in now and ride the wave. Outcome of this will be increasing share price with potential blue sky results if outcome of salinbas is as expected or if the results disappoint then I see share price potentially falling back to today's level after the predrill speculation . Bottom line is why wouldn't you buy now.? I'm limited at 3% directors in a closed period. Obviously something can always hit unexpected and investors need to accept that as do I but facts and research surrounding this company is exceptional compared to other stocks on AIM which hopefully limits adverse surprises. Plus directors have around 10% skin in game.

[kirbs4] 26/4/2019 11:32

I think the potential for anything reported on Salinbas to be seen as 'bad' news would rely on it being priced in to the current share price I would argue the current share price doesnt even factor all the known let alone the unknown so long term id be surprised if anything reported at Salinbas had significant downside. Clearly there could be short term blips were the potential not be realised.

[jc2706] 26/4/2019 11:20

Difficult to see where the bad news is coming from currently.

The production operation looks to be rock solid currently and targets for the year at the current run rate should be easily achievable (given recent performance they may well be achieved in around 10 months).

The nearby assets look like very useful additions that are well understood so unlikely to provide any particularly nasty surprises.

I suppose that the one area that is least understood, Salinbas, is the place where news may disappoint but it is also possible that it could be spectacularly good. It holds the key to explosive upside but even without Salinbas AAU have a clearly defined route to doubling production numbers. Put in a supportive gold price and that alone should justify a good share price rise.

[pallyx66] 26/4/2019 11:15

AISC Ariana. I have noticed some people are concerned about this.

Regarding the AISC for Ariana. First off people should refer to The World Gold Council for guidance: hxxps://www.gold.org/about-gold/gold-supply/responsible-gold/all-in-costs

You will notice that the method is very difficult to apply to Ariana. The operating costs are shared by the JV ( Zenit ) at $349/oz. This includes the G&A in Ankara and the mine-site costs in Sindirgi (eg processing, mining, staff etc. and not forgetting royalties to government and the NSR to Franco-Nevada). This cost estimate does not include finance costs because the loan repayments schedule varies considerably month by month and quarter by quarter. So the inclusion of finance costs would vary the overall cost base in a manner that would be confusing. In addition, exploration costs are specifically excluded as Kiziltepe has been presented as a turn-key operation with a reserve ready to mine. No exploration is accounted for in the cost estimates, because no exploration has been required so far other than a limited amount conducted internally by Zenit.

Furthermore in order to report AISC they would need to account for the G&A of both Proccea and Ariana on top of the G&A for Zenit. Given the very different nature of the two businesses that would be difficult to achieve. So all in all a probable waste of time and money to try and work out an exact AISC
I hope this may help.
We agree with them
Thanks you for your comments yesterday.
You know that i very really post but i/we do look at the BBs fairly regularly.
Regards Pally

[red imp] 26/4/2019 10:41

AAU regularly announce news (usually good) prior to these meetings. I'm expecting an RNS Monday or Tuesday. And thanks to Pally for his notes on the site visit.

[swallowsflysouth] 26/4/2019 10:31

Thank you Biggles, all sounds like we may be in for some interesting news. Hope you are right 8rad, would be good to hear on Monday.

[8rad] 26/4/2019 10:20

Maybe news on Monday(Kizilkurkur results?)before meetng on Tuesday.

[bigglesbingham] 26/4/2019 09:30

Hi a chat with MDV yesterday and everything going on track. Kerim was in turkey last week with Pally hence his presentation. Directors are in a closed period while preparing documents got the impression he wished he was not in closed period but that's my interpretation.

[bigglesbingham] 26/4/2019 08:59

These bounce backs are really healthy.