Ariana Resources Share Discussion Threads

[1candc] 30/11/2020 15:23

Published Friday 27/11 on Hot Stock Rockets

Despite “the quarter marked the end of production from the high-grade Arzu South open-pit”, Ariana Resources (AAU) “is pleased to announce its operating results for the quarter ended 30 September 2020 for the Kiziltepe Mine” (Ariana: 50%) – and the shares have responded higher…

There was production and sale of 5,125 ounces of gold – it emphasised “not only exceeded the prior quarter by nearly 10% and enabled full year production guidance to be maintained into the current quarter, it also showed a 15% increase in revenue”. That should deliver a very pleasing bottom-line outcome since also “operating cash costs for the quarter are estimated at US$352 per ounce; lower costs for the period resulting in part due to a decline in exchange rate and sale of silver stock”.

The company added “operations have continued exceedingly well at the Arzu North and Derya areas. In particular, open-pit material movements have remained very high and the JV has built up a very large ore stockpile which provides for over ten months of mill feed… work is now underway on an increase in operating capacity up to about 500,000 tonnes of ore per annum”.

That compares to 57,302 tonnes of ore milled reported in this latest quarterly update and noted with “the potential at Kiziltepe for larger tonnage, lower grade orebodies is evident already based on our experience of exploring and now mining of the Arzu North and Derya areas”. With production in those areas currently over 200% more than was projected in the mine plan, there is confidence of further ore being defined – commercial production having been initiated at Kiziltepe during 2017 and an initial eight years mine life.

This is also all with a prospective $35.75 million partial disposal of interests (53% of both the joint venture including Kiziltepe and the Salinbas project, leaving Ariana with a 23% carry in all its assets). From a current market cap of circa £57 million (currently approx. $76 million), we continue to expect attractive returns from here on the deal completing. Of course there is risk, but these are good assets and there’s been a terms finalisation meeting and almost all of the necessary government approvals have been received. As such, at up to 5.75p, targeting returns of 7.5p+ on the deal, still a buy.

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[cool hand kev] 30/11/2020 15:06

According to the trades No sells at all 🤔 Perhaps it’s time for the share price to move higher

[bigglesbingham] 30/11/2020 13:55

About bloody time wouldn't you say. They have been as frustrating as hell!

[soulsauce] 30/11/2020 13:31

😄😄😄

[kirbs4] 30/11/2020 13:15

Finally some big news.Tweet out about the T shirts and competition winner announcement.Sigh.

[plasybryn] 30/11/2020 12:35

From share price Angel today:Turkey – Q3 GDP expands 6.7% YoY Turkey's economy grew better-than-expected from July-Sept, rebounding from the contraction in spring as a result of the coronavirus pandemic. Ankara expects growth of 0.3% this year, although a contraction of -1.5% is possible under a worst-case scenario, whilst projecting a rebound of 5.8% in 2021.

[soulsauce] 30/11/2020 09:07

Aren't you comparing apples and pears Plas'?

Can we compare Ozaltin to Newcrest, maybe, but Oz aren't an out and out gold company. Can we compare Salinbas to the high grade gold projects in Aus, I don't think so, but given time after several large rounds of drilling we may have a very creditable resource.

So comparing us to GGP is a bit of a stretch but I see where you are going.

So update later? Or are we going to head in to December still fumbling about in the dark for the Ozaltin light switch.

[plasybryn] 30/11/2020 08:59

It is also perhaps interesting that our quasi Institutional Investor, Starvest two biggest holdings are Greatland Gold (GGP) and AAU. Perhaps Callum (CEO) of Starvest, who knows Kerim well, sees the parallels. I think we and the market generally have underestimated by a long way what the impact of our J.V. will be. Ozaltin, who have $9 billion worth of projects, can transform us. Admittedly Kerim and the Board haven't yet been in a position to articulate a full vision for our future other than say they aim to be one of the premier gold producers in Turkey, but I think that story will start to unfold once the deal is finalised. I think I'm right in saying that GGP started on the road with their deal today 18 months ago, so perhaps that underpins the timescales involved in these sorts of corporate arrangements. The thing to keep in mind is that our Market Cap. is still just over £50m. Tiny. GGP is now nearly £1 billion and not a producer. Admittedly they have some nice prospects!. But keep the faith; we really haven't started to scratch our potential imo.

[plasybryn] 30/11/2020 07:22

Has Greatland Gold shown us again what can happen when you get a big boy involved? In this case Newcrest. I think it has and we are just at the cusp. Their news this morning will delight shareholders and comes on top of 36,500% growth already over 5 years. Amazing. I strongly suspect Kerim has been following progress at GGP and is no doubt looking to achieve similar results.

[bigglesbingham] 29/11/2020 21:49

I'm not on the board Charles I'm only stating my thoughts as asked by cool. I suggest you direct your thought to the company who can do something about it.

[red imp] 29/11/2020 20:20

Charles - Some of us might have to walk, or at least reduce their holdings to fund other activities. Some time ago I committed the anticipated dividend to a pre-IPO investment. I was quite happy to do that as there appeared to be plenty of leeway between the two financial transactions. That leeway is now shrinking rapidly unfortunately.

I'm just hoping that tomorrow, the last day of the month, we get some sort of update from the company on the outstanding activities.

[charles clore] 29/11/2020 20:08

All very well saying the board got their timing wrong on the deal and it is taking longer than expected but the bod still have their guaranteed salaries and share options no matter what. There are people invested here who need to see progress soon or I think they could walk.

[thanksamillion] 29/11/2020 19:36

Ariana's various gold assets and the pending deal are what they are, and I am content to patently wait for their fruition. Salinbas apart I am currently more interested in the various copper assets, in particular Cyprus and any other future assets we buy into. Looking forward to learn what the company plans are to monetise these, now that some in the business are saying you will need a telescope to see the copper price in a few years.

[jaf1948] 29/11/2020 19:34

BB,

Two good posts.

[bigglesbingham] 29/11/2020 19:24

You've got the wrong board

[bigglesbingham] 29/11/2020 19:23

The understanding that the final points of the agreement were made at the meeting three weeks ago. So for three parties to then agree the written documentation is going to take time you have lawyers of three parties working with translators as the written word needs to be agreed in Turkish and English. This is a deal worth over half the market cap in cash to Ariana. It's bound to take time. The mistake has been over promising on deadline and under delivering. The delay has added significantly to the bottom line of Ariana and as such shareprice aside the board imho wouldn't be too bothered with the delay. I do believe that Kerim and the board need to get more aligned with the investors as the company grows and that their job is creating shareholder value and this mean a better understanding of the investor corporate relationship . The recent management of kerim s recent share sale via exercising warrants is a prime example on not understanding the implications of actions on the shareprice.

[charles clore] 28/11/2020 16:31

I can see the current erratic chart pattern continuing until mid-December.

[plasybryn] 28/11/2020 15:49

Is it Polo shirt winner announcement next week?

[bigglesbingham] 28/11/2020 15:20

No cos they can sign agreement subject to government ok

[cool hand kev] 28/11/2020 12:36

Is the JV delay due to Government Bureaucracy? Why are the PGM’s graphs 📈 flatlining 🤔

[linz22] 28/11/2020 04:42

Can't see the problem, myself.
The share price is down and so is gold - to sub $1800, unfathomably...
Meanwhile, AAU is raking it in. What an opportunity.
Just buy more..!

[crossfirecssf] 27/11/2020 21:04

I think that having made such amazing progress and giant strides in gaining 100% trust from shareholders, it would be in Kerims best interests to simply tell us what the problem is, be it small or large.

It’s the enormous pink spotted elephant in the room and it’s damaging market cap as well as eroding that hard earned trust. It’s personally dredging up some bad memories and I think it’s now time to be straight with shareholders.

Moving the timing for issuance of circular from October to simply ‘when appropriate’ means basically nothing. Two years may be appropriate! What does it mean Kerim? We’re grownups, we can take it. Please put us out of our misery. Pretty please...

[bigglesbingham] 27/11/2020 18:32

The plant has been designed with earthquakes in mind obviously wouldn't withstand one directly under but if that happens it happens.