Ariana Resources Share Discussion Threads

[plasybryn] 20/7/2021 15:36

Reference the tax reasons, I raised with Kerim at the back end of 2020 the issue of Withholding Tax. This is something I have experienced with Ferrexpo, San Leon Energy and BASE Resources. The Country where they are based withholds tax and then private investors have to try and recover it. That is not any easy process, I can tell you. Perhaps this tax avoidance, linked to the 3 stage trance, is indeed Withholding Tax related. Why they didn't explain the issue today properly is anyone's guess.

[soulsauce] 20/7/2021 15:10

I keep saying it's not 0.7p it's 0.525p.
The 0.7p is another handy bit of spin but you can't possibly count it as it has to be voted on in a year's time and thus is conditional.
A lot can happen between now and the agm 22 especially in Turkey.

It's 0.7p IF..............!!

[xow98] 20/7/2021 15:07

29/9/20 RNS

It is the intention of the Board to distribute a special dividend amounting to approximately 50% of net proceeds after costs and tax to shareholders, once a capital reorganisation is completed, Court approval is obtained and a General Meeting can be convened;

the dividend distribution will also be dependent on the payment of an intercompany dividend from Turkey. "

Don't know what the distributable reserves are in Galata Madencilik, but the BOD should have been aware of the issue at the time of making the announcement and played down the amount/timing if it was an issue.

We still don't have an answer to why it is only 0.7p if the tax rate is significantly lower. BOD should still explain the calculation of 0.7p as they told us the basis for it and we can't get there logically.

The special dividend was going to be distributed on General meeting approval, nothing about possibly over the next 12 months after GM approval.

[thanksamillion] 20/7/2021 15:03

SP still up on the day, perhaps its the gold price.

Yes, not the best of performances today, however the business is in good form and I like the future prospects.

:-)=) grinning and bearing it.

[bigglesbingham] 20/7/2021 14:58

I don't agree with the last statement simply because no matter who you are or what your intentions people would go for an easier life as long as the outcome the same.

[bigglesbingham] 20/7/2021 14:54

Now that would make a perfect rationale but communicate the fact if that's the case. And if it is the case it should have been known and suggested to the market to enable individual tax planning.

[xow98] 20/7/2021 14:27

If there are "significant tax breaks" the way they are doing it, one would have thought the tax rate would be "significantly" below the 22% tax rate and that the payout would be much greater than 0.7p and closer to BB's 1p, though it would appear that cash flow remains an issue to achieve the significant benefits.

Not sure if the below only refers to real estate or all assets:

"75 percent of gains derived from the sale of shares of a Turkish company by another Turkish company may be exempt from corporate taxation, provided the property was held for at least 2 years and the exempt gains are retained in a special reserve account for 5 years. This requirement not to repatriate funds for 5 years may be impossible to satisfy, of course, if the seller plans to leave the business entirely."

The tax rate would then be 22% x 25% = 5.5% of the profit. My guess is that the dividend is being funded out of income from the JV and cash reserves in HoldCo for the 3 tranches, rather than from the asset disposal.

Assuming the above is correct, would have been simple to tell us that.

[crescenter] 20/7/2021 13:54

25745

lol.


So the special divi is not the Thriller in Manilla after all.

I suggest that the company has realised somewhat belatedly that as 23.5% holders in the producing assets they no longer control the cash flows and in the short to medium term could find themselves withoout income!

Down to sub 3p imo.

[jaf1948] 20/7/2021 13:38

Ironstorm,

The BoD's new attitude towards its shareholders first become evident to me when they cashed in their options during a time when the shareholders were still waiting for news on the dividend. Dare I say it but in today's conference, they appeared complacent and even smug at times.

I don't think the board do not understand the impact that this announcement will have on individual shareholders - I just don't think they care.

[ironstorm] 20/7/2021 13:31

Shareholders have made decisions based on there previous pronouncements. Its no wonder there is selling. People were expecting a bigger chunk of cash immediately. And would have planned accordingly.

They will now have to re-arrange their affairs.

I think the board just do not understand the impact that this announcement will have on individual shareholders.

I am in a fortunate position not to have to sell - but others won't be.

I think that is my sudden realisation that they are not interested in us. They don't care. We are along for the ride - they are drivers, navigators and they will choose whatever the outcome.

Quite bad form.

[xow98] 20/7/2021 13:23

And down we go

[soulsauce] 20/7/2021 13:15

Well that's two long termers sold down. Maybe we don't have one seller after all.
Absurd to think then that the divvy was to repay shareholder loyalty when several are feeling they needed to leave because of how it is being run.

[soulsauce] 20/7/2021 13:12

IronStorm they didn't answer my question on the divvy and I am sure many others went unanswered.
Nothing on the divvy was answered adequately as far as I am concerned.

[mcmather] 20/7/2021 13:11

My answer IronStorm (to the last bit) would be MDV. I sold most of my holding here around 6p as I simply do not trust him. This today has the whiff of being for the benefit of two large holders... Let's hope it is not.

[kaos3] 20/7/2021 13:08

AAU - story going from polo T shirts to - frustration HELP line lol

The problem is - the are doing well and create vhuge value on the ground. Exxtremely good operations. This performance by Kerim on the operational level should be replicated and taken over at the upper level from him by somebody else -senior to him imho. MDV is not acting like a boss in command. And Kerim is spreading thin all around. He looked tired.

PS - I ll stop my todays rants. Thank you all for being tolerant

[soulsauce] 20/7/2021 12:58

If you are going to ask for questions at least answer them. Don't continue to look stupid and disjointed as you peruse the easy one's to answer.

[soulsauce] 20/7/2021 12:52

swindon41 I think you are on the money with that assessment.

However Kerim wants to spin it, we should have been given more on their ideas about paying the divvy, amount to be paid and tax issues before the final vote off.
All seems as though we have been bent over at the minute.

[xow98] 20/7/2021 12:51

MREX and SING both dropped offer price to 5 from 5.2 in the last hour

[bigglesbingham] 20/7/2021 12:45

It tally's more with their original statement which was the money received in respect of salinbas. It then changed to the larger 50% of deal proceeds. I personally have a large dividend tax liability therefore a smaller divi isn't too much of hardship. What frustrates me is such a positive step in the company's history has been communicated in such a way to annoy the very shareholders they are trying to thank. New shareholders who get to grips with what AAU are all about will see an excellent story. In the short term some long termers will lose patience. One thing is for sure the PR and brokers need to be changed based on what I'm seeing at the sharp end.

[swindon41] 20/7/2021 12:36

Tax issues re dividend stagger are to do with taxon divestment of assets by corporates, but they gave no further detailed explanation so in the dark really.

On a broader point I watched Most of todays presentation and thought it was poorly delivered (I spent 30 yrs doing this sort of thing lol ) ....Kerim came across as too steeped in the technical, not open enough to questioning, and hence explaining, his own strong views as facts ( if you don't like it,tough) and as for Michael the Chairman, he varied from casual indifference to passive aggressive. I dont care for him at all, and can see why we are struggling with so many half answered questions. I am still holding but healthily sceptical.

[soulsauce] 20/7/2021 12:27

All the best 1candc.

Bigglesbingham it doesn't. 50% of the money currently relates to 0.525p, the remaining 0.175p being conditional.
It doesn't add up at 0.7p so at 0.525p it is even more of a white lie.

[xow98] 20/7/2021 12:23

BB, the tax advantages were in Turkey, so I assumed he meant corporate tax