Ariana Resources Share Discussion Threads

[uknighted] 10/2/2021 08:32

Lots Freetrade, I’ve read of users dissatisfaction. Slow to trade, not very competitive bid/offers. I hasten to add, no experience myself, you pays your money and makes your choice.

[xow98] 10/2/2021 08:10

I think the funds would be better utilized by being invested in and accelerating exploration / development of current / future prospects. The only buybacks I see as necessary are for the Turkish employees, if there are still such shareholders.

I fear the bulk of the buyback shares will be used for management share options which I would oppose on the grounds of past behaviour. If they stated the shares were to be cancelled I might consider it.

As a further comment, I think we should vote against any future resolution disapplying pre-emption rights to protect ourselves from any future fundraising and dilution. We have sufficient funds at the moment for the forseeable future and could raise debt for any capital works should we need to develop.

As Paul Scott of Stockopedia comented: "I feel it is wrong for companies to routinely disapply pre-emption rights. It's a core principle of company law that existing shareholders should be allowed to protect their % shareholding in any fundraisings, with an automatic right to buy new shares pro rata to existing holdings. I think it's wrong that this principle is so routinely waived by companies. What we need is a modernised system, to allow fundraisings to be done much more quickly, cheaply, and electronically."

[kaos3] 10/2/2021 07:23

each exceptional manager used the tool of the buy back to add value. I like it a lot if used wisely.

there is huge number of shares that are floating around, that are undervalued and can be bought back (it is paper mining - creating value and ounces to the company at no risk !!! compared to exploration)

shares are either retired or used as a currency ( if above value)

that is the theory lol

and there is a hope too

[lottsgold] 10/2/2021 07:14

Scrub that it's not free for Aim stocks which is my hunting ground. Still only 9.99 a month though. Back to AAU, gold needs a little nudge to get going hopefully another blue day for us.

[lottsgold] 10/2/2021 07:09

Has anyone used the Freetrade app, looks ok, no trade fees, feels like there's a catch?

[bigglesbingham] 10/2/2021 03:34

Due to timescale of required monies think they had little choice . As to whether that position could have been planned for is another matter but to me everyone makes mistakes historically it's whether you listen and learn from them. Soul has always had a bee in bonnet about cheap raises at 20% discount. I bought 2m at 1.3p in one of the raises because I told broker I wanted to be involved. However what always happened was the share price went lower than the share raise price allowing everyone else to participate. My view was the fundamentals and prospects are good so I would add. I've been adding on this principle for seven years and the fundamentals have got stronger and research including mine visit had not done anything but enhance that view. Recently there's been a seller and question re communication . Board listened and issued circular. I believe seller must be nearly gone so I'm very confident moving forward.

[bigglesbingham] 10/2/2021 03:25

Hi Soul one things for certain and that's the fact that we are in an excellent position moving forward and we are undervalued in relation to peers. What has come out over the years was the fact that AAU did need the cash to put their share into JV when the delays due to permitting were created. Proccea actually helped out more during this time because if you remember Proccea had to receive their loans before we took part in profits. The raises gave the money needed to maintain the JV and relationship to be in situation we are in now. It's also known money was hard to come by for small miners 4-5 years ago. As to buy back I am undecided and need more information. I'm sure with KS track record he can put it to better use but need to know more. Beaufort were used cos they did have track record of raising cash quickly. Point is let's look forward and get positive thoughts about a positive position we now find the companies

[charles clore] 10/2/2021 01:57

Soul - I don't think they had much choice apart from perhaps a rights issue but stand to be corrected of course

[soulsauce] 09/2/2021 23:28

No choice really? We'll have to disagree on that one Charles.

[charles clore] 09/2/2021 23:23

Oh dear. I don't suppose the company could be simply putting as much into the treasure chest as possible to provide maximum available options? Does it matter about the company's past when they had no choice but to use the bucket shops to raise cash for survival? Those days are gone and we should now be looking to a bright new future

[dixi] 09/2/2021 22:28

Tend to agree with this Soulsauce. I had even pondered on the amount of AAU that is being sold that is then converted into a tax bill arising from the deal. It's a costly process in some respects.

[soulsauce] 09/2/2021 20:51

We none of us know bigglesbingham. I guess it's something else they haven't communicated well. But until they do I will be voting against it.
If part of the plan was to use cash to buyback shares I would sooner them have kept more of RR.
Again it is a nonsense to cause shareholders so much pain in order to get RR up and running for them to give a large part of it away and then use that cash to buy back shares. It makes no sense.
One of the reasons I was all for the JV is that the chunk of money we were getting was going to be put towards other projects and not frittered away buying back shares that with more care at the time should not have been in issue.

[bigglesbingham] 09/2/2021 20:21

Soul I had reservation about raising monies using that broker but they raised the money when they were desperate and we are now where we are . They needed cash quick. So now we are excellent undervalued position. My though process on buy back is uncertain but question is can investment of money make more than differential between actual value and potential value if or when achieved . I believe KS would make more than say 100% by investing therefore are there other reasons for buy back ?? Just don't know.

[lottsgold] 09/2/2021 18:10

I think I'd be happier to leave the more cash for Kerim to find something big. With cash behind him he will be elephant hunting this time round:)

[konil] 09/2/2021 17:18

ooooerrr, thanks guys. i do not disagree with any of the related comments, just had the feeling given the '15 years' comment earlier in the rns, it was being lined up and doable because of the bumper profits coming in currently, but i guess not, just wishful thinking on my part.

[xow98] 09/2/2021 15:55

The 7.48m is purely the reserves that would be available for distribution after the capital re-organisation, but before the Ozaltin transaction. It is what they could distribute pre Ozaltin, not what they are going to distribute.

The transaction will give them further profits and distributable reserves, meaning they can pay out more than the 7.48m.

[sixpintsid] 09/2/2021 15:21

With £7.48 million distributed to 1,069,677,943 shares this equates to 0.699 pence per share. 14.5% yield at today's price.

[uknighted] 09/2/2021 15:11

Linz22 if you pay £9.99 per quarter then you are very privileged - or extremely active, I pay per month.

[pedr01] 09/2/2021 14:48

Does it not imply that there may be the intention to do so?

Not really. Just the result from doing the sum ...

[konil] 09/2/2021 14:45

bb, i understand your computations as regards the company's position as previously stated re. dividend of 50% of jv monies after costs and taxes.

but why mention the following in the rns yesterday, specifically in these words?

"The effect of this, and the offset of the remaining deficit on distributable reserves mentioned above against the Share Premium Account which is reduced to nil, is to generate distributable reserves of GBP7.48 million."

...generate distributable reserves of GBP7.48 million... granted that does not explicitly state that the £7.48 will be distributed, but does it not imply that there may be the intention to do so?

or am i musunderstanding the meaning of "...generate distributable reserves of GBP7.48 million."?

[paul280i] 09/2/2021 14:28

Thanksamillion 3595 - Totally agree and I think those who expect the buyback to effect the share price will be very disappointed and then start complaining about the lack of buyback action.

[shortarm] 09/2/2021 14:28

The answer is we're gonna have sooooo much spare cash :-D

[gerrystewart] 09/2/2021 14:25

Soul,

There is absolutely no guarantee that it would increase shareholder value. But, if the buy back price was say 25-50% of perceived value (in this case the BOD's perception) it would make sense wouldn't it? As, of course, would using the money on an ambitious project that delivered the same/similar results. The question of which is the better use might, inter alia, be determined by the risk/reward consideration. However, what I don't think is valid is to continue to take a sort of accountant's approach to things in the sense of 'historic cost' considerations (i.e. continually focussing on past decisions). The wisdom (or lack of it) of getting past funding from 'bucket shops' is completely separate from one on making the best use of current funds. The economists approach is much better. 'Let bygones be bygones'. You can do nothing whatsoever about a decision(S) made years ago. The most important decision is the next one. What is the best use of existing funds?

[thanksamillion] 09/2/2021 14:22

Its probably just to help out those turkish employees who cannot sell their shares for some reason.