Ariana Resources Share Discussion Threads

[pauliewonder] 01/10/2020 14:02

Looks like gold and silver have found their feet again today following higher than expected inflation numbers in US. With the election pending, gold will break $2000 in next couple of weeks I think. Good times for AAU.

[bigglesbingham] 01/10/2020 12:31

Moving forward many miners are going to struggle with drilling new areas imho and I think that AAU have pulled a blinder by luck or judgement in gathering databases of historic workings. You've got Newmont database which was purchased for a hefty sum back in the day (many questioned this at the time) and believe they got one from KEFI and plenty of data available in Cyprus. The next few months is an ideal time to exploit this data and with Kerim and Zacs expertise plus cash to exploit opportunities this is a very exciting time for AAU independent of everything else which is going on. The above won't affect shareprice now but I believe it's an opportunity which long term holders shouldn't lose sight of. Information gives competitive advantage and we've got lots of it with the right people to exploit it.

[dixi] 01/10/2020 12:25

I must admit I wouldn't have minded seeing the AAU share price respond like OMI, but looks like that is not for here! Unloved or just too boring for the majority?

[pauliewonder] 01/10/2020 11:39

Lol Kirbs - I like the new nickname...

I was originally invested at around 2p in my SIPP, not as long as many on this board. I am now heavily invested both in SIPP and ISA at a much higher average price.

I am not saying that they are not transparent, but rather that they could have provide greater clarity on the areas I mentioned. Of course they don't have to provide this information, but I do think it would have helped with the share price action. My personal view is that the next set of results will show a large increase in cash generation, and this will be as a result of the repayment of debt, which is my key question really.

This is by far my largest holding so I am definitely not going to talk it down and like I say we should see very good returns from this level. I have done a lot of research into AAU and feel confident that this is an excellent investment.

[konil] 01/10/2020 11:00

from rns 30/09/2020 under 'management statement' 3rd para.

"This, coupled with low operating costs which have carried over into the period, have resulted in strong revenue from the operation in the range of c. US$9 to 10 million per quarter."

but well spotted, i've made a mistake with the 50:50 split and also erroneously thought it was after costs. so on a pe of 7, not undervalued purely on current production.

but all the rest ignored by market, no value for imminent jv and cash, nor any value for tavsan which will be a relatively near term producer (in mining timescales!) and not even a nod to salinbas.

[thanksamillion] 01/10/2020 09:51

Konil,

Where do you get quarterly earnings of $9m, yesterdays half year was around £2m.

I am assuming you have used the mine proceeds figure, which AAU owns only half and which does not have costs of $500/ oz ish deducted.

[charles clore] 01/10/2020 09:36

All we have to do is take advantage of the market apathy. I will gratefully hold and top up on the dips as usual and reap the rewards when they arrive.

[1candc] 01/10/2020 09:26

agreed konil - very muted response, rigor mortis would be more lively

[konil] 01/10/2020 09:16

somewhat surprised at the lack lustre reception the recent news has received. the game changing confirmation of the jv appears to have been completely missed by the market.

i know there are 2 or 3 more steps to finalise and special divi won't happen for a few months while this is sorted, nonetheless even without all that, earnings of $9m to $10m per quarter on a pe of say 7 (not demanding is it?) should see the company at c.$260m.

and the ozaltin jv, not to mention the cash from that, catapults aau on to a path and at a pace it could not possibly do on its own.

[kirbs4] 01/10/2020 09:14

Damn predictive text, sorry Paulie!

[kirbs4] 01/10/2020 09:08

Pauline how long have you been invested out of interest? Reason I ask is for me they are streets ahead of where they used to be transparency wise. There isn't much we don't know any more in my view, although I would say they could be clearer with some of the messages which often trigger debate around interpretation, that is different to transparency of course.

[pauliewonder] 30/9/2020 23:11

Agree Plas. It's a very good performance. One thing that frustrates me a little about AAU is the lack of transparency at times. For example, I would love to know what impact the previous loan had on returns and given that it has now been repaid as per April, what impact will it have going forward. How much of the 2.3m cash was generated between April and June after loan repayment? Also what is the financial position of the JV at the moment and have the company received continuous dividends? Why is cash only 2.3m when they are generating 9m per quarter (as per interview today). There are still questions to be asked and answered, but overall I think we are in an excellent position. Inevitable increases in gold price will take us higher, but in terms of all the goldies on on AIM, this has to be up there with the best of them. We could have 100k ounces being produced by the JV in 3 years and that would conservatively result in the company being valued at multiples of the current share price it's only a matter of time before the retate starts and I am very much a believer that we are in at the bottom. Excellent returns to be made from here, at a pretty safe level of risk tolerance in my view

[bmnsa] 30/9/2020 19:52

Let the market wait until mid morning after I'v topped up a further amount lol.

[1candc] 30/9/2020 19:47

Good post Plasybryn, let's hope the market wakes up to what's going on here

[bigglesbingham] 30/9/2020 18:52

I don't think you'll be far off if you plan for 1.0 p. My calcs based on 25% tax and charges. They need to sort court date etc regarding reserves etc so anticipate deal be done end Oct and dividend early Q1. Happy days

[risa5] 30/9/2020 18:35

Ariana Resources on course for 2020 production target

Ariana is in the process of establishing a joint venture with construction group Ozaltin

Ariana Resources PLC (LON:AAU), the Turkey-focused gold miner, repeated it is on track to meet its production target of 18,000oz this year.

Profits for the six months ended 30 June 2020 were little changed at £2.23mln (£2.3mln) with higher gold prices compensating for lower grades at the Kiziltepe mine.

Strong cashflow has seen Ariana pay off the construction loan for Kiziltepe and attention has switched to boosting the resources across the Red Rabbit licence area.

Ariana is in the process of establishing a joint venture with construction group Oziltan, which it said earlier this week will see it pay a special dividend on completion.

The joint venture will develop the Salinbas project, which Ariana sees as a 50,000 oz a year gold project over a ten-year life.

Ariana added it has also completed its initial earn-in at Cyprus-focused Venus Minerals, where its stake has now risen to 12%.

Proactiveinvestors

[c0lin1] 30/9/2020 18:16

Not the only one plasybrn. Tsg declared an interim divi of 7% yesterday. Aaz look like they'll be above 10%for the year. They're not one offs either.What do they all have in common i wonder.

[uknighted] 30/9/2020 18:02

There will be more of a rush when there is a better idea of the value of the divi.

[plasybryn] 30/9/2020 17:25

I see someone doesn't agree with my sentiments. That's a shame as I think most of us here would like to express our admiration and appreciation to Kerim & team for what they have achieved and what's more important perhaps, what this will enable them to achieve in the future. I shall be wearing my Ariana polo shirt with pride when they finally get produced!

[plasybryn] 30/9/2020 16:42

Sorry renniks2016, I did ramble on a bit there, but when you look at the facts like that it does all seems a bit unreal. I bought some more as well!

[renniks2016] 30/9/2020 16:35

Well said Plas! Took so long to read that I missed market close and another top up! But there is always tomorrow, I’ll make do with the 89k @ 5.875 this morning for today.

[pauliewonder] 30/9/2020 15:51

Absolutely in my view. Will happen within the next 18-24 months as well. However, this will be from Ozaltin. KS didn't discount this when asked recently. If Oz don't buy the company outright then I agree with other comments about the corporate structure.

[thanksamillion] 30/9/2020 14:46

Far too complicated a business structure, and would probably need agreement of JV parties to get through.

[charles clore] 30/9/2020 13:46

Yes but only a remote one imho