Ariana Resources Share Discussion Threads

[bigglesbingham] 29/9/2020 21:35

Sorry meant to put 38.1%.

[bigglesbingham] 29/9/2020 21:33

I have to pay 38.5% tax on doc from some of my shares which has to be considered. But today was an excellent rns. Really hope they back it up with quarterlies as last year they issued on 30th Sept.

[charles clore] 29/9/2020 21:01

If Nigel Somerville is correct about a 0.75p dividend it means that anyone buying today will see a return of about 12.5% on their investment, less of course, the usual downward price adjustment on ex dividend day. Not a bad investment if I may say so. No advice intended and of course DYOR

[plasybryn] 29/9/2020 18:00

Another good post from Dubbs99 on LSEDecent day but now the ducks are lined up - much more to comeToday 17:19An 8% rise is not to be sniffed at but I still feel that the market doesn't understand the opportunity/Asset Salinbas is and why the progress on the deal hugely derisks the feasibility of exploiting that asset. 1.5M oz gold identified already, possibility of 4m oz of gold to be proven up and mined. At today's prices (that I think will likely rise over the coming months/years) that's between c. $3 billion and $8 billion of revenue. If the profit on that was just a half (before cost of building the mine) that's between $1.5 billion and $4 billion. Assume the mine cost $900 million ($20,000 per tonne) that leaves a minimum profit before interest and tax of £600 million and Ariana would own 23.5% of it plus its other assets and cash. Ozaltin has the capacity and ability to finance and build the mine with Proccea. The ducks are now lined up. Ariana's share price/mcap should be at least twice what it is currently in my opinion.

[kaos3] 29/9/2020 17:38

biggles - veto -

reselling stake before the mine even started to unwanted buyer
using dirty tech
selling concentrate to the connected parties
etc etc

[bigglesbingham] 29/9/2020 17:33

That would be nice and in keeping with what they have done recently

[kirbs4] 29/9/2020 17:18

My greedy side hopes for b2b rns with one tomorrow!

[dixi] 29/9/2020 16:54

Message was in reference to biggles' post 25526 :-)

[dixi] 29/9/2020 16:53

Sensible assessment on that point I'd say :-)

[bigglesbingham] 29/9/2020 16:39

Depends if you state free carry meaning not having to fork out from cash flow which would be my take. If you look at debt reduced profits ect meaning not free carry then selling share in mine means not free carry as well.

[bigglesbingham] 29/9/2020 16:37

My reckoning but don't know the company tax and charges situation . I'd say around 1p assuming 30% tax charges

[d1g3y] 29/9/2020 15:16

With the note that approx 50% of net proceeds will be returned. Are we saying 50% of the 35.75m (after tax etc)?If this is the case and for easy maths 15m returned is approx 1.4 cents per share or roughly 1.1pence

[paul280i] 29/9/2020 14:27

Plass, I was under the impression that the "Free Carry" was up to but not including the cost of building the mine which would be financed the same way as RR, a loan repayable once Salinbas was in production. If that is the case Ariana would contribute to building the mine as the repayments would come out of future profits.

[risa5] 29/9/2020 13:42

Ariana to pay special dividend if proposed deal with Özaltin goes through

Ongoing gold production from the Kiziltepe joint venture has been one of the success stories of Aim in recent years

Ariana Resources PLC (LON:AAU) plans to pay a special dividend to shareholders once its mooted joint venture deal with Turkish conglomerate Özaltin goes through.

Özaltin will be acquiring 53% of the Salinbas exploration project as well as 53% of the Zenit Madencilik joint venture which is currently owned by Ariana in a 50:50 partnership with Proccea, and which runs the producing Kiziltepe mine.

Özaltin will pay Ariana US$30mln cash for its stake, which will leave Ariana with 23.5% of Zenit, as well as significant board representation.

The special dividend is likely to amount to 50% of net proceeds after costs and tax.

"Over the past few months Ozaltin, Proccea and Ariana have been working towards preparing the required agreements in order for the proposed joint venture to proceed,” said Ariana’s managing director Dr Kerim Sener.

“Following the formal commitment by Ozaltin to finalise the definitive agreements in July, the parties have completed final and mutual legal and corporate due diligence. In addition, certain corporate and other structural changes have now been finalised, which enable the deal to be completed, having secured preliminary government approvals in Turkey.”
Proactiveinvestors

[thanksamillion] 29/9/2020 13:13

Well today's RNS sound like a very good deal to me. The share price rise to c. 6p is miserly in my opinion and no where near what would be required for me to top slice.
So the market says AAu is worth twice the cash offer made for a half of a portion of our business. We still retain some of the prospects in Turkey plus the Cyprus JV.

Roll on the Interims and drilling results.

Very happy to hold.

[plasybryn] 29/9/2020 11:46

Some interesting chat going on on LSE today like this post from Dubbs who has agreed I can copy it across.
"But with a non-dilutive deal and a 'free-carry' on future costs of development, so do Ozaltin build the mine, at no cost or future share dilution to Ariana, in return for 53% of future profits from mining at least 1.5M oz of gold? That mine cost would have been in the 100s of millions to Ariana of course. So in very simple terms: Ozaltin pay a lot of up front, $30M dollars now plus another $8M soon, plus, lets say £200M to build the mine and infrastructure and can then earn, say, a minimum of £500 net profit per oz in return - 1.5m oz x £500 x .53 = £397.5M. If Salinbas eventually ends up having 4M oz, they can multiply that profit by 2.7! Ariana would receive a minimum of 1.5M oz x £500 x 23.5% = £176.25M but with no development/build cost in the first place. If that is accurate our share price should be re-rating so I assume I'm wrong on something. Can anyone put me right?"

[pedr01] 29/9/2020 11:31

They need the agreement of at least one of Ariana or Proccea. That's the way I read it tiger. They can't just bulldoze over us?

[philby1] 29/9/2020 11:24

Still no news about the Ariana polo shirts, very disappointing! :)

[tigerchris1] 29/9/2020 11:23

My reading of the 75% requirement (assuming that the 2 Ozaltin directors will vote together) that Arians & Proccea can possibly veto a proposal made by Oz but not carry out a proposal on their own initiative without the support of Oz. Does this amount to a veto on both sides?

[soulsauce] 29/9/2020 11:21

I keep saying it but the real value will come from Ariana having the wherewithal to acquire other projects and further the one's already in place like Cyprus while the rest nicely ticks along in the background with Oz doing the heavy lifting.

[tigerchris1] 29/9/2020 11:15

Surely the whole point of the major partner having 53% is to have majority control. I note however that "Ariana and Proccea will maintain board representation on Zenit, with one director each, and Özaltin will be able to appoint two directors. Management control will remain with Proccea, and both Ariana and Proccea shareholdings will be protected within the Joint Venture by being non-dilutive and free-carried and subject to full minority protection rights. Shareholder control of Zenit will be based on agreement of 75% of the voting shares, equivalent to three out of the four directors" So on Zenit, Proccea `control` & 75% voting shares. I think that might be open to interpretation

[dixi] 29/9/2020 11:13

Seems like the same old questions and doubts are appearing, I cannot see why AAU need to double and triple confirm the details and phrase them in as many different ways to suit.I think everything is in the update, take it at face value :-)

[bigglesbingham] 29/9/2020 10:59

Why would minority have power of veto ? Can you explain?

[crossfirecssf] 29/9/2020 10:35

Edit... duplication, sorry