Ariana Resources Share Discussion Threads

[lottsgold] 08/2/2021 08:29

I'm happy they've made that as a statement 5% is enough to do that. After the special divi, Venus buy in and the new prospect they probably need to keep the cash for exploration.

[carcosa] 08/2/2021 08:25

kaos3, The share buy back is irrelevant with respect to the capital reduction discussed. It is a separate proposed resolution.

The share buy back is for ordinary shares. During times like these i.e. when the belief is that the share price considerably below its perceived value then it will allow the company to buy back its own shares (in the old days it would have been then cancelled but following a change in company law the shares are now held) allows them to re-issue them for say an employee bonus scheme or simply just keep them forever.

Bottom line is that those bought shares 'should' indicate to the market that management considers company shares are worth more than current price. Am a bit surprised its only for 5% of the issued shares though.

[uknighted] 08/2/2021 08:17

There MAY also be a share consolidation to follow. Nothing to be concerned about IMO.

[ironstorm] 08/2/2021 08:13

Steady as she goes. All on track - near future!!

1p divi hurdles being cleared. Signalling last time to kerching time

[ironstorm] 08/2/2021 08:11

Steady as she goes. All on track - near future!!

1p divi hurdles being cleared. Signalling last time to kerching time.

[shortarm] 08/2/2021 08:08

Doh, now u gon an made urself luk stoopid innit.!

[soulsauce] 08/2/2021 08:08

Thanks for the explanation carcosa.

[lottsgold] 08/2/2021 07:48

Great thanks Carcosa, I was hoping that was the case. Onwards and upwards.

[bigglesbingham] 08/2/2021 07:45

An update stating the deal is progressing and the necessary reorganisation and level aspects are practically resolved. Major work has been carried out in facilitating the special and future dividend. This is what was required no definitive date but it was the air of uncertainty which needed a reminder from the board. The fact that many on here have been contacting yellow jersey and the board highlighting the need for reassurance is both commendable in respect of the efforts made by shareholders but also on yellow jersey and the board for listening and reacting to concerns.

[kaos3] 08/2/2021 07:45

carcosa - does share buy back open facility count - at the premium reduction - or must be executed?

eg - is it just part of the accounting "need" or they really want to buy back shares

[carcosa] 08/2/2021 07:42

Dividends are paid from distributable profits (retained earnings); hence why some years a company that makes a loss can still pay out a dividend.

For AAU they have made large losses over the years due to all that exploration and money being spent. This is put into a pot called Retained Earnings, but since this is a large negative value its actually Retained Losses.

Meanwhile when they have issued shares every now and again and along the way have accumulated quite a lot in terms of the Share Premium account i.e. investors purchase price less the cost of the share.

So in order to provide distributable reserves they want to cancel the share premium account and effectively put all the money arising from that into the retained earnings pot and voila, we now able to issue dividends or other types of returns.

There is no downside for existing shareholders. Its simple, involves only AAU and a general court rubber stamp. For those in the know this was flagged quite a long time ago.

[paul280i] 08/2/2021 07:41

The company previously wanted to have the ability to buy back shares from employees in Turkey who had been given shares but were not allowed to do that.

[catsick] 08/2/2021 07:34

No this whole thing is a formality to clear out the current hindrance on paying a div , it's purely technical and needs to be done, there is no comment on what the div will be but it looks like they may also want to do a buyback of up to 5% which will support the shares

[bigglesbingham] 08/2/2021 07:33

You are again showing the fact you ain't got a clue about the company. This has been discussed and highlighted many times please do research before posting ridiculous comments to back up your negative agenda.

[lottsgold] 08/2/2021 07:29

They haven't deceived it has been discussed previously. I make the dividend to be about what people were expecting unless i'm miss reading something? circa 15% divi will be fine by me.

[xow98] 08/2/2021 07:29

Probably 5% buyback to be held in Treasury to be used for future management options/incentives, unless they cancel them, which does not happen very often.

[lottsgold] 08/2/2021 07:28

£7.48 million will be the distributable figure plus any other loses up to that date so that the special divi calculation? between .7 and .8 pence which Id be more than happy with.

[lottsgold] 08/2/2021 07:25

I'm pretty sure that is a 5% buyback proposal to support the price?

[lottsgold] 08/2/2021 07:24

'Near future' doesn't really cut it anymore, 'rapidly on multiple fronts' is very vague but the deal is happening which is enough for me. Glad I have added plenty recently.

[kaos3] 08/2/2021 07:23

I am not an accountant but it could be just a virtual share (capital) reduction for the divi payout purpose - not the real share back buy (at this moment in time)

[soulsauce] 08/2/2021 07:20

Still no completion date and I haven't got a clue what the rest means with the deferred shares.

[lottsgold] 08/2/2021 07:19

'In addition, and as a separate resolution, the Company proposes by way of Resolution 3 that the Directors are granted authority to buy back up to 5% of the issued ordinary shares into Treasury which may then be cancelled or allocated to satisfy new issues of shares or resold in the market. The intention of Resolution 3 is to provide the Company with additional flexibility following completion of the proposed court approved capital reduction.'

[crescenter] 08/2/2021 07:18

It looks as though the dividend will be significantly lower than anticipated on the BBs.


The BoD have advisers so they should have been aware of the inability to pay cash dividends from the outset.

Why deceive shareholders.

[lottsgold] 08/2/2021 07:18

5% buyback proposed - they clearly see the value!