Ariana Resources Share Discussion Threads

[someuwin] 16/7/2019 17:17

Ariana Resources plc‏ @ArianaResources 7 minutes ago

GMS Sondaj RC rig and compressor arrived on site at Kiziltepe Mine a little earlier - drilling starting up on Thursday! #AAU #gold #mine

[jc2706] 16/7/2019 15:53

Historically it has been viewed that there is about 15 times as much silver as gold in the earth and the traditional usage as a currency reflected this. I note that the US geological survey indicates about 17.5 times but it has been many years since the prices reflected this ratio, the closest being in 1980 when there was an attempt to corner the silver market.

[graylyn1] 16/7/2019 15:09

yes, gold-silver ratio starting to slowly shrink.

edit: or I should say it's about static now, long way to go when you consider that there is about 30ozs silver to each 1 oz of gold in the earth the ratio should not be 90 odd.

[ileeman] 16/7/2019 14:41

Silver at weekly highs, gold not far behind.

AAU shareprice looking even cheaper.

[paul280i] 16/7/2019 14:36

My understanding of the reason that the company originally started the process of being able to buy back shares is so that the employees in Turkey have some way of selling their shares if they wish to. The problem is that although they are given shares if they wish to sell, to put as a deposit on a house for instance, there is nowhere that they can sell. The company were trying to correct that.

[soulsauce] 16/7/2019 12:20

Thanks for posting always.

Interesting more drilling at kiziltepe.

Salinbas sounding very interesting but more drilling unlikely til next year.

Tasvan still a way off production.

Q2 production imminent.

[charles clore] 16/7/2019 11:59

I believe the original intention was to buy some shares for treasury so that they could be used as employee incentives. I would imagine the number of shares would be fairly small (less than a million)and have no problem with that. However, I agree that a full-on share buy back using millions of the company's cash would be quite wrong.

edit - a very good interview with Kerim. He shows a lot of confidence and just gets better and better at this doesn't he?

Also, Q2 update imminent (straight from the horses mouth).

[rrr] 16/7/2019 11:50

Yes, and thank you.

[alwaysevolving] 16/7/2019 11:37

Good new interview with AAU posted today July 16:

[graylyn1] 16/7/2019 11:07

backmarker, yes the silver price could have a material effect here with AAU. Silver tends to be quite volatile but, it has been suppressed to the extreme and when it starts to move I fancy it will be quite violent!

[soulsauce] 16/7/2019 10:27

Agree backmarker. I am not a fan of buybacks as I said at the time.

[backmarker] 16/7/2019 10:27

graylyn,

I like that article about silver. even if we only get back to previous norms, then the gold:silver ratio going from 1:90 to 1:30 means a tripling of silver relative to gold (which most think is going up anyway).

given that AAU produces a lot more silver than it does gold, this would be a very beneficial event.

[backmarker] 16/7/2019 10:22

priority for cash should generally be:

1. repay debt;

2. spend on development of existing assets and business;

3. spend on new projects and acquisitions;

4. regular dividends;

5. special dividends

6. share buybacks.

of course, depending on opportunities, these priorities can alter. but buybacks are right at the bottom, and should generally only be considered by mature businesses that have become cash cows.

[jc2706] 16/7/2019 09:48

Whilst I agree that a dividend and/or buy back policy would be a good thing to put in place (based on excess fcf), I am not sure that they are generating cash beyond what can currently be usefully employed. There are JV targets that require budget before cash even reaches Ariana (although the fact of cash coming to Ariana beyond loan repayments will be indicative of excess capital) and then there is Salinbas, Kizilcukur, etc. not to mention the potential for other metal projects (which I would prefer they didn't) all of which will require funding to a greater or lesser extent.

[charles clore] 16/7/2019 09:46

Or what it's worth I see share buybacks as the opposite of the dilution that occurred over the years through fundraising. Just as fundraising through bucket shops lost the confidence of a lot of shareholders, buybacks would attract new investors. A kind of balancing exercise. If that is what the board decides to do I don't think cash will be a problem.

edit - soul I reiterated quite a bit of what you said before seeing your post!

[soulsauce] 16/7/2019 09:33

carcosa whilst I agree with some of what you say, the company has already been in existence and listed a long time now and been investing shareholders money to provide a good business while also providing a very good living for those at the company.
The money has not always been raised wisely and looking at the share price chart since the companies inception it has hardly been a cake walk for shareholders.
At some stage you have to start repaying those shareholders, who by the way are not all traders. Most on here are very long term shareholders deserve some pay back (biggles, Nov31, Plasybryn and a whole lot more).
I myself have been invested with the company a very long time with the exception of a few short weeks.

So while I agree the company need to keep investing in it to keep it viable for years to come, it is now in a position to balance that somewhat.
The company showed it had enough over and above it's needs when they paid themselves a nice Brucie bonus and when they attempted to buy back shares.

And although it may seem like paying out dead money, if it attracts those elusive institutions then it would be a better investment than paying PG their premiums.

[8rad] 16/7/2019 09:32

Yes agreed.

[bigglesbingham] 16/7/2019 09:15

We agree on this I said the facilities need to be put in place showing future intent

[bigglesbingham] 16/7/2019 09:14

I agree with what you say but I personally believe facilities should be in place for FUTURE. This imho would not be manipulating share price it is a natural progression giving the company options regarding the cash they will be throwing off over the coming years

[8rad] 16/7/2019 09:12

Carcosa...announcing a divi is not market manipulation rather a statement to the investment world that this is a well run company that has great confidence in its long term strategies.

[jc2706] 16/7/2019 09:11

Agreed carcosa. I think that the money is better spent internally currently.

[carcosa] 16/7/2019 09:03

Buybacks or dividends cost real cash which otherwise you can argue is better invested into the company operations which will maximise shareholder value in 5-10 years. By and large the share price is determined by investors and companies should not go out of their way to manipulate the share price, which inevitably only serve a very short time scale. Management should stick to managing the company for the benefit of long term holders and not traders.

Only until FCF is at such a high level should cash be used for anything other than direct company business.

The only caveat I would add is that if the company paid even a tiny dividend then that opens the door to many more institutional investors (i.e. easier to tap the market for additional funds), however few would be willing to walk through that door unless the market cap was above 100m.

[drh3] 15/7/2019 22:44

Having the buy back in place gives the company the option of stabilising the share price by buying when the share price is ridiculously cheap and maximising shareholder value.

[graylyn1] 15/7/2019 21:48

Silver’s Multi-Decade Cup & Handle Formation Telegraph Upside Silver Explosion Coming

[jaynesdad] 15/7/2019 21:31

Hi everyone
I am in agreement with biggles, as I usually am as he talks sense. The company should pursue whatever restructure is needed to allow payments of dividends and share buy backs. Just because you have the facility it doesn't mean you have to use it. I personally don't agree with dividends in a growing company which has alternative use for the money, else borrowing is an ever present (and expensive) danger. Look at Apple and Microsoft, massive entities when dividends have only recently commenced. Similarly there is an argument for saying that share buy backs occur when the BOD is so lacking in imagination that they can think of no better use for it