Ariana Resources Share Discussion Threads

[thanksamillion] 12/12/2019 11:49

Soul,

I doubt KS would accept 4p and it is his qualities as a geologist that attracts the buyer so they wont want to loose him.

[soulsauce] 12/12/2019 11:38

I think the company need to do more to sell the deal dixi, that is without doubt.

[dixi] 12/12/2019 11:33

Reading on both here and the LSE site, it seems that as time passes the MOU deal is gradually losing favour with investors. Having had time to digest and make assumptions (due to lack of official information), I am thinking more that the deal would've sounded more palatable if closer to a 50/50 Salinbas only JV between AAU and New Co. Keep the rest out of it. I am uncertain of the need for Proccea's involvement in the new JV, apart from the new equity split forcing the 3 way JV. That suggests that it was the New Co that wanted in on the lot, including cashflow from RR to agree to muck-in at Salinbas. Surely AAU would've wanted to retain as much as possible?

As ever though, I am sure that the bod at AAU know what's best for investors.

[soulsauce] 12/12/2019 11:30

Charles I don't think it is that the market doesn't like the deal nor the Cyprus acquisition, it is just pretty much standard service for Ariana in that it doesn't garner much interest in the wider market.
Not sure what is at the bottom of that but may be historical reasons with regard to the company.

The third party might be a bit confused as to why this deal has not raised our share price considerably so as time goes on and their DD proves this is the real deal they might just decide to buy the lot.

I am sure most of us would take 4p as it stands.

[plasybryn] 12/12/2019 10:24

Why do they only refer to the Salinbas Gold Project or Salinbas Project? Salinbas is just one element of the prospects in the Hot Gold Corridor. Is this misleading, or is there a reason the term Hot Gold Corridor has been dropped. I know this is just probably semantics, but the new partner is going to get 53% of a lot more than just Salinbas. In time Hizarliyayla could potentially prove to be bigger than Salinbas. We seem to be underselling the prospects?

[carcosa] 12/12/2019 09:01

AAU is still a very very small market cap company. Until it reaches the GBP100m mark + dividend it is unlikely that serious institutional investors will waste their time on such a small company.

A few days ago I read that valid concern that any special dividend payment would see a corresponding drop in the share price. Certainly a feature of larger companies. In this case however I would hope that it's a tangible sign indicating a higher, more realistic valuation of the company so whilst there will be, to some degree, a pullback on the share price I would anticipate it would be relatively restrained and for a short period of time.

However when (if) the MoU gets final agreement and announced to the wider world then it may induce some smaller private equity investor to take a closer look at the company; so my feeling is that by that stage it becomes more attractive to Institutional Investors and the GBP100m mark will not be that far away in 3-6 months time. Furthermore Panmure Gordon will hopefully be seen as promoting AAU far more seriously than before (at least to PI's eyes) which, having a top notch investment banking company on board, can only be seen as a good thing. Will be interesting to see their views post MoU agreement. Remember that Ariana Resources remains the only small-cap gold mining company that carries a Panmure Gordon ‘buy’ rating.

[soulsauce] 12/12/2019 08:52

Mr Markdown is busy this morning Plasybryn. I've done the business.

[theduke420] 12/12/2019 08:35

Was hoping for Arzu South deep drill results this morning. We can't be long from getting an update now

[plasybryn] 12/12/2019 08:30

And yes the current life of mine is going to be extended significantly. That surely isn't priced in?

[plasybryn] 12/12/2019 08:29

We haven't proved up underground mining potential. These results could give a clear indication of that possibility. That can't be included in the current price can it?

[shortarm] 12/12/2019 08:21

Drilling results and a life of mine extension I believe....

[bigglesbingham] 12/12/2019 08:10

I wouldn't expect the price to alter upwards , they've put in a price on the basis of what AAU have claimed. If that is proved positive then how would they justify an increase. Only way price would be increased is if another bidder came along

[soulsauce] 12/12/2019 08:06

Thanks Plasybryn.

[bigglesbingham] 12/12/2019 08:02

Which is why I'm very comfortable with the situation whether the deal goes through or not.

[plasybryn] 12/12/2019 08:01

Yes and I expect our possible new partner will be as keen as we are to see the results. Could they allow us to up the price?

[soulsauce] 12/12/2019 07:45

Aren't we due some final drilling results?

[bigglesbingham] 12/12/2019 07:44

The wealthier party will be inexperienced in terms of gold mining but not in terms of getting projects completed. They will want the the JV to work as much as anyone and AAU I believe will have much clout if not all clout in terms of exploration. You would think they know what they're doing or they wouldn't be where they are now as a company from nothing.

[dixi] 12/12/2019 07:11

Paul280i, I just hope they all know what they're doing. On the face of it that sounds like giving the inexperienced but wealthier party the reins.

[paul280i] 11/12/2019 19:14

Dixi, I believe that is because the new company who's first venture this is into gold mining need Ariana's and Proccea's expertise to bring Salinbas to production, they are civil engineers, not miners.

[dixi] 11/12/2019 18:30

Don't really understand why the new co doesn't just bid for the lot.

[charles clore] 11/12/2019 18:22

The one thing that I find uncertain about from the proposed deal is simply the level of trust that we need to have for the big construction company. It seems both AAU and Proccea are giving a lot of the company away and we are almost at the watershed of success with Red Rabbit, Tavsan and indeed, Salinbas. I understand that there will probably have to be a huge amount of earthmoving before mining can begin and this is probably just one reason why it would be good to be in bed with this particular giant. But I don't understand what they expect from AAU and whether we can expect to be contributing in terms of costs. I think until this is known the market will regard the proposed deal as a non event. More meat on the bone please Kerim.

[bigglesbingham] 11/12/2019 17:07

About sums it up, however if we went alone and the drill results were very good then we'd be bought out well before production. The JV appears to be the lower risk half way house with plenty of upside. However if it doesn't go ahead then still plenty of upside . Nice situation to be in. The JV does give significant optionality to pursue other projects and avenues independently of the JV and who's to say kerim with $20m dollars in bank won't find some significant resources based on his track record???