Ariana Resources Share Discussion Threads

[charles clore] 28/5/2019 13:24

I can see that the company has a lot to offer the patient investor and am happy to wait for it all to unfol. However I won't forgive the directors' past indulgences at the expense of the ordinary shareholder. The bonuses and pay rises were, imho, badly timed and seemed to be paid for by bucketshop raisings (how else did the do it with zero net earnings in the kitty?). They should have waited to pay themselves until the loan was repaid and the income stream healthy enough to support it. There is nothing more unpalateable for PIs than to see directors feeding at the trough as the share price is falling. This must not happen again and that is why I allude to it every so often. I do, however, acknowledge the business skill of the directors and there is nobody I would rather have at the helm of our jewel of a company than the great Kerim himself. He is growing in confidence by the month and will, imho, lead the company to great things for both shareholders and management in the future.

p.s. - one final bottom for gold and silver in progress?

[jaynesdad] 28/5/2019 13:00

Think Thanksamillion has hit the nail on the head. We are all emotional and increasingly grumpy due to the waiting!

[thanksamillion] 28/5/2019 12:12

Gold and silver out of sync again...interesting.

[soulsauce] 28/5/2019 11:14

Well I can't argue with the last point bigglesbingham they are less than useless.

[bigglesbingham] 28/5/2019 11:12

Don't think that's reason tbh I think it's just a waiting game. 9 months for debt to clear, a year plus for tarsvan to be started , awaiting drilling results ect. Some investors want certainty. PG could get their finger out !!

[soulsauce] 28/5/2019 10:47

I agree bigglesbingham but it goes to show the angst that was caused and may still be one of the reasons we can not gain the interest this is now deserving and why I continue to say the company have to find ways to garner that interest.

[thanksamillion] 28/5/2019 09:37

Its all a result of the emotional cycle. We are all a bit grumpy awaiting the drilling news.

[shortarm] 28/5/2019 09:19

I thought we'd got past this?

[rjwoodrjwood] 28/5/2019 09:18

If you go back quite a while, toll mining was considered, and trialed.

[thanksamillion] 28/5/2019 09:17

Yep, in my haste to scribble my message forgot to mention them....

[charles clore] 28/5/2019 09:09

Thanksamillion - not to mention director bonuses and pay awards.

[thanksamillion] 28/5/2019 08:59

I thought most of the cost of processing and mining was borne by the joint venture and loan, monies raised by AAU were for exploration etc in other areas, meaning little to choose between j.v. and toll.

Someone please put me right on this niggle.

[jaynesdad] 28/5/2019 08:56

Pedro, 8rad

Harsh critisisms. MDV is very experienced in Mining finance, is not a geologist, so to dismiss the BOD in that way seems unjust.
A toll arrangement may be suitable for the distances involved and resource size for Kizilcukur, but you seem to be suggesting a similar arrangement for the whole of current Red Rabbit resources. A toll arrangement would rely on there being a plant(s) with spare capacity within reasonable trucking distance of all the W. Turkey prospects. That seems unlikely and anyway would have probably been more expensive long term than building a plant because of the scale of the operation

[bigglesbingham] 28/5/2019 08:40

Have you ever asked the company?

[8rad] 28/5/2019 08:28

Pedro ..a very hardhitting but unfortunately accurate assessment of previous calamities. Geologists yes financiers no.

[pedr01] 27/5/2019 21:12

14230 - ETI ??? They used ETI for trial processing in 2009.


What I have never managed to understand is, if toll processing is economically feasible now, then it must have been economically feasible in the period 2009 to now. Why did we not toll process to raise monies instead of issuing shares in the period 2009 to now during which time they have issued circa 900mn shares in order to raise roughly £10m over the years diluting shareholders by over 85% in the period (from circa 143m to 1050m shares).

[bigglesbingham] 27/5/2019 18:42

I'm positive they will bring it in to JV. They want expo cost remuneration and they don't want to wait 8 years .

[jaynesdad] 27/5/2019 18:30

Yes, I've used the argument about Kiziltepe working flat out already before, does seem unlikely Proccea would be happy to delay JV ore being processed. Still the possibility of Toll arrangment with a third party plant (cant remember the name that Kerim gave, think it started with an 'E'), or wait until all current JV resources are exhausted, buy the redundant plant from the JV and process Ivrindi and Kizilcukur then. All possible, see what they decide.

[bigglesbingham] 27/5/2019 15:38

The plant at kiziltepe is running at full capacity and the JV enjoy equal profits. Why would procea agree to substitute a share of capacity to process kizilchuk on which they get a dramatically reduced cut?? Answer is they aren't. So I think they will add to JV and pay AAU a fee for exploration. This will effectively add to mine life by a year which will benefit procea but only in eight years or so. (Minelife if kizilchuk wasn't processed now assumed to be 8 years).

[jaynesdad] 27/5/2019 09:18

The options for Kizilcukur include toll treatment of the ore either at Kiziltepe itself or at an existing plant owned by a third party in the vicinity of Kizilcukur (there is one apparently, Kerim mentioned it in the recent London presentation). It is important, 15,000 oz relinquished from a 30,000 oz resource has a net value probably well in excess of £7m compared to our market cap of £20m. Anyway, not long to wait, I hope all will become clear soon. Have a great bank holiday to all posters.

[bigglesbingham] 27/5/2019 09:09

My point too

[paul280i] 27/5/2019 09:06

JD, you must also add in the value of 50% of the resource that Ariana will still own through the JV. I don't have a problem with the existing arrangement.

[bigglesbingham] 27/5/2019 08:47

If they didn't have kiziltepe to process then there would be no money because the gold in the ground is worthless until mines and processed. If the JV made 9million profit AAU would earn 4.5m plus there would be an additional element for exploration which would be based on actual expense. I wouldn't think this is unfair. Noone is going to buy a 30000 stand alone resource. So to a certain extent I think their options are limited. In the grand scheme of things let's hope it's and insignificant debate compared to salinbas. Also I'm not sure excellent results at kizulcker will boost share price. We recently received a payment from JV of over three million which was excellent surprise but share price hardly moved.

[jaynesdad] 26/5/2019 19:10

Be good if it could be renegotiated! I'd be all for it ending up in the current JV but at a reasonable price. I think exploration expenditure is around the million mark at the moment (£s, $s ??) so sale of 3 x exploration expenditure into the JV means AAU effectively get a net 1.5 million when sold (because they are half the JV, plus the have already spent the million so 'net net' +0.5 million). I have in mind a recent management target of 30000 oz at Kizilcukur (hold my hands up, that's just from memory) which may of course be updated/ hopefully upgraded by the winter drilling efforts. So they would be exchanging 15,000 oz (say, net profit $600 oz at least) for 1.5 million (£s or $s). That's why I think the BOD may get criticism, and may be why they are looking at alternatives. Sorry for the rushed typing!