Ariana Resources Share Discussion Threads

[1candc] 08/12/2020 08:39

dixi - Were you in 'this perpetual holding pattern' this time last year when the share price was 2.3p and now its 5.3p, up way over 100%? In which case that's a pretty decent return over a year wouldn't you say?

[dixi] 08/12/2020 08:27

Absolutely Bigglesbingham, totally agree. But at some point soon I'm going to have no choice but to say goodbye to some AAU shares (much as you had to). I'd sooner be able to do this on a high rather than stuck in this perpetual holding pattern. I want my patience to be rewarded, but it's not quite happening for me.

[bigglesbingham] 08/12/2020 08:20

Dixi AYM were 2p three years ago and are 8p today after a huge spike which may not be sustained due to profit taking. AAU was 1.17p to buy when I went to mine in October 2018. AAU has shown a steady rise to 5.2p. So AAU has been shown a larger percentage rise in a more consistent way which is less likely to reverse due to this consistency.

[dixi] 08/12/2020 08:20

Time will tell bigglesbingham, but right now we're getting the price reduction element of your equation regardless.

[dixi] 08/12/2020 08:14

I'd be more than happy for AAU to do an AYM, it might be a ludicrous spike, but what a way to be able to de-risk years of waiting.

[bigglesbingham] 08/12/2020 08:14

I don't mind cynicism , and they have large shareholding's the majority, warrants notwithstanding, have been bought at market price. Yes they will benefit and why not but as for being the driver I don't believe that's the main one. There are many ways directors can reward themselves other than a route which rewards all shareholders. The tax man will do well but with certain proposed changes to capital gains tax they will do equally well on future share sales. Imho it's a way of rewarding loyalty without forcing shareholders to sell to benefit. If you ask me the effect on the share price will be more positive this route than not returning anything to shareholders because those longstanding investors need a return and without dividend there would be sells and the supply demand equation would result in a reduced share price.

[dixi] 08/12/2020 08:12

Hope so Shortarm, and the sooner he reacquaints us with his insight the better. No prizes for loyalty in this game, I've paid the price too often for believing that company directors are above mere mortal status.

[shortarm] 08/12/2020 07:42

Kerim is astoundingly astute, check out the return on his last investment!!I'm sure he knows how much money he needs to get involved with what's worthwhile........

[dixi] 08/12/2020 07:15

Without wanting to appear too cynical bigglesbingham, the directors also stand to benefit handsomely from the dividend. It does look very generous. Maybe that is the main driver and not rewarding the great unwashed? Once the cash is gone, it's gone. Would acquisition of other assets not have been a better plan - paying much smaller but regular dividends from cash flow, whilst growing the company?HMRC are going to do extremely well from this dividend policy too!Just thinking out loud :-)

[bigglesbingham] 08/12/2020 05:38

Soul and to anyone who wants to do more research on Cyprus I urge you to look at this presentation on CHF who are the other primary player in Cyprus. https://www.youtube.com/watch?v=WAh-enQYMWcThis gives some excellent background as to what Cyprus is all about and drilling there. It also makes me wonder why we are not using fox Davies as a broker as Ariana need promotion like this. Soul I hadn't seen this presentation until tonight and yes CHF does have a lot going for it. I invested as a flyer a year ago as I thought it may be company AAU was partnering with. After looking at their presentation it tells me Kerim is ahead of game and CHF may well be a significant player.

[bigglesbingham] 07/12/2020 22:07

I keep harping on about fundamentals but that's the way I invest , as long as I can see direction and the fundamentals are there I'm happy. I understand the logic of the deal and the rationale behind the dividend. If no dividend was paid then we'd be forever reinvesting in exploration with nothing back to shareholders apart from if you sell but selling kills the share price. Temulin said he sold 2.5m and they bought 500k back at 5.28 fair play to that strategy. Probably a number have followed suit which suppresses the share price creating a base . If the dividend wasn't forthcoming many more would reduce holding to get reward for their patience but if divi paid then many will not feel need to sell and some will reinvest. One thing I did overlook was that the divi is now increased to 50% proceeds I believe that this increase has been enabled by the extra cash received by the delayed deal. Great news for larger investors perhaps not so much for momentum traders.

[risa5] 07/12/2020 21:21

Base metals:

Copper US$ 7,679/t vs US$7,755/t last week

- BHP executive predicts that copper production will need to double over next 30 years to around 48mtpa


Zinc US$ 2,731/t vs US$2,772/t last week

[risa5] 07/12/2020 20:54

Ariana completes conditional agreement for joint ventures Zenit and Pontid and boosts resource at Magellan

Ariana Resources PLC (LON:AAU) has completed conditional agreements on its joint venture with Özaltin Holding A.Ş and with Proccea Construction.

Under the terms of this agreement Özaltin will be acquiring 53% of both Pontid Madencilik Sanayi ve Ticaret A.Ş, the owner of the Salinbas project, and the existing Zenit Madencilik San. ve Tic. A.Ş. joint venture, which is currently owned by Ariana in a 50:50 partnership with Proccea.

The joint venture with Özaltin and Proccea involves the partial disposal of the interests of the company in Zenit and Pontid in exchange for US $35.75mln in cash.

On completion, Ariana will retain a 23.5% interest in the joint venture, as will Proccea.

The parties have also agreed to the sale of Ariana's remaining projects, under its subsidiary Galata, to Zenit for an additional US$2mln in cash.

US$8mln will be committed by Özaltin to fund a feasibility study, environmental impact assessment and additional permitting on Salinbas.

Separately, Ariana also announced a boost to the resource at the Magellan project. At the Sha sector the resource now amounts to one million tonnes grading 0.80% copper and 0.3% zinc inferred, including a higher-grade zone of 500,000 tonnes at 1.13% copper and 0.3% zinc.
PI

[cyberbub] 07/12/2020 20:06

I must say I'm also surprised to see as much as 50% being given as a special divi. I can only assume that they want to reward shareholders for their patience over 10 years. $17M capital left from the JV cash could easily be depleted on new assets and exploration - and especially by funding further development of the existing assets. Having said that, there will of course be a significant income from the 23% holding in the JV, especially if the POG stays high.

[lottsgold] 07/12/2020 18:44

Fair comments Temujin, you've played it well so far glad to have you back in on a buy. I think if the agreement wasn't made before gold really took off the terms may have been different or it may not have happened but the board keep to their word where they have control. We have at least profited from the bull market prices all year. Let's hope the bull is gearing up for a good run, the deal will be done and there will be lots to excite new shareholders in the coming months past the JV and divi.

[bigglesbingham] 07/12/2020 18:28

Yes they are

[cyberbub] 07/12/2020 18:15

I must admit I've not been very impressed by Yellow JerseyGood to see the news today but a typical reaction. I think it will still be 3 months until completed, and assume that AAU are still getting the benefit of half the gold sales until full and final completion of all outstanding requirements?

[temujiin] 07/12/2020 17:49

Well I for one am not in the least surprised that the share price has not gone to the 7, 8, 9,10p's suggested by some excitable folk on here on the JV deal being agreed. I don't think getting SH approval will make a huge difference either.

Flogging off half your goldmines(s) during a gold bull run never struck me as brightest idea as I've said many a time so had reduced my holdings from 3m to 500k over the previous few months......that said, AAU is a well run company, has got good assets and upside, Tasvan, Venus, free carry Salinbas to DFS (and NOT to production as some thought) so that 500k trade at 5.28p was mine, and a buy.

I can't see AAU going much lower but, assuming POG remains high, over the coming year or so once JV signed, and with some Tasvan and Salinbas movement, it could start to climb towards 6/7p again.

[charles clore] 07/12/2020 17:32

Plas - good point about Tasvan development and I would think that will now be fastracked to give Ozaltin a relatively quick return on their investment.

[soulsauce] 07/12/2020 17:22

Quite right dixi.

[dixi] 07/12/2020 17:19

Plasbryn, they shouldn't really need the likes of their PR co to tell them something as apparently simplistic as that. Is it conceivable that they may have been expecting a much more positive response to first RNS, further impacted by the second. Or maybe they issued both items today due to the two newsworthy events arriving coincidentally. But ultimately the JV has crawled a step further forward, but in some respects it is just as fay away as ever.

[lottsgold] 07/12/2020 16:48

I have a funny feeling this may have been the day we shake out the last weak hands but maybe I'm just trying to console myself with a dramatic day! 5p base is going to be pretty solid going forward.

[plasybryn] 07/12/2020 16:46

Why didn't Yellow Jersey tell them how to maximise the advantage of two positive RNS's ? What are we paying them for? For Goodness sake.I suspect Panmure Gordon wont want to issue a Note until things are finalised - Govt approval etc. It's perhaps fair to say the value isn't changed until they have the approval from Govt and shareholders. But I can't see that most shareholders would be that sophisticated to sell today on that basis. This is becoming a very frustrating share.

[konil] 07/12/2020 16:46

plas, being aim i'd put least confidence in your final sentence. but never say never, here's hoping.