Ariana Resources Share Discussion Threads

[charles clore] 01/3/2021 16:34

Where is the logic in a company valuation of £44m and a cash position of £30m with assets valued at probably twice that amount and a share price reflecting only 1.4p for those assets? Totally illogical imho. Something has to change soon surely.

[jaf1948] 01/3/2021 16:18

DP,

The problem with your logic is that the special dividend had already been announced whilst the share price was steadily rising to 6.3p so the market seemed to approve of it then.

[someuwin] 01/3/2021 16:16

Agree that the special dividend is a slight negative here. Now, if they abandoned the divi and invested the cash in Bitcoin instead, then the share price really would rocket. And yes, that really is a serious suggestion.

[donald pond] 01/3/2021 16:12

IronStorm, you may be right, but I was explaining why new buyers weren't interested. A regular divi is a good thing, agree with that. But I think its obvious that the board have completely misread the market on this.

[ironstorm] 01/3/2021 16:09

Disagree there DP - I reckon most will have these in a tax free wrapper. So no tax.

Only the badly organised will pay tax.

Special Divi as a result of a windfall is not therefore a negative - especially if as suggested a regular divi will also result.

[donald pond] 01/3/2021 16:03

The special dividend is a downside for most investors. Why buy a share for 4.5p today, knowing that in doing so 1p will be coming back to you as a taxable dividend at some time in the near future? It is of benefit only to the very big shareholders/board who can use this as an opportunity to take money out of the company.
A regular dividend is great, a special dividend because half the company has been sold is not good. If it was, the price would be higher. People will actually expect a discount to allow for the tax liability that comes with a one-off special dividend.

[jaf1948] 01/3/2021 15:51

Charles,

Au contraire - I am very happy with the direction the company is going in. I am just not happy with the direction the share price is going in.

[charles clore] 01/3/2021 15:23

The company is grossly undervalued but the corporate structure is complex. People like to speculate on junior miners and try to guess a takeover price etc but there's none of that here because Kerim & co have battoned it down tight. This is now a traditional well run junior miners with a big mate helping. It will make money but it will be a yield stock more than a growth stock imho. What we are seeing with the constant selling is people exiting who don't like the direction the company is going in. Those people have limited vision and prefer adrenalin charged stocks to steady slow burners.

[soulsauce] 01/3/2021 15:02

Continued drill results from kiziltepe should keep us buoyant.

[konil] 01/3/2021 14:59

and the special dividend doesn't seem to have excited the market and in any event seems to be at least another 3 months off?

[konil] 01/3/2021 14:56

tavsan permitting news?
salinbas permitting news?
drill results at salinbas, if ozaltin had been progressing this pre-jv, unlikely?
cyprus drilling not starting yet.
left field option, new project kick-off? too soon probably and in any case would that move the sp, probably not.

so not for some time i guess? i've probably missed something obvious, if not, its just one of those periods where its a long wait and external impetus would be good, but au price going wrong way. maybe silver can come to the rescue, it seems to want to break free but how many will associate aau with that, silver has been downplayed here...so far.

i had hoped jv completion would see this move beyond 6p at least but it went in reverse instead!

what do others think.

[jaf1948] 01/3/2021 14:32

Being realistic, when does anyone think we will get some news that will start to push the share price upwards ?

[plasybryn] 01/3/2021 12:40

I'd forgotten that as well. Won't they need to draw accounts up to the end of the 50/50 partnership and start again using the 23.5% split though?

[soulsauce] 01/3/2021 12:04

Thanks for the reminder pharm, I seemed to remember that might be the case but had got it in to my mind that it was another company of mine that had said it.
Well that answers it anyway cheers.

[plasybryn] 01/3/2021 11:26

I believe Kerim admitted in the interview that Salinbas could, subject to more exploration, produce up to 100,000 ozs p.a, over many years. Tavsan 50,000 ozs p.a. & Kiziltepe 25,000/30,000 p.a
Say 175,000 ozs p.a. potential - 23.5% is our element = 41,125 ozs p.a.by mid this decade?
Also pipeline of new exploration projects.

[pharmoutcomeszzz] 01/3/2021 11:17

On 12th January, the RNS stated that due to the restructuring and therefore different emphasis of the company, production updates would move from quarterly to every 6 months.

[soulsauce] 01/3/2021 10:47

Possibly acto.

[bigglesbingham] 01/3/2021 10:36

They were being conservative but expressing his requirement and said AAU would do that. I'd expect much quicker too.

[actonovator] 01/3/2021 10:33

Soul, perhaps there's one more admin step these days before release - referral to Ozaltin - maybe?

[thanksamillion] 01/3/2021 10:17

I am thinking the newsflow over the next month or two could be considerable, positive, and perhaps even exciting. Depending on the pog and looking at the chart, a move to a different range is due anytime - lets hope its upward.

[soulsauce] 01/3/2021 10:14

No konil, but given it is the winter months I doubt there will be any upside surprise. Just strange that they are late.

[konil] 01/3/2021 10:12

soul, any particular highlights you are looking forward to in the quarterly?

[konil] 01/3/2021 10:10

with any sign selling pressure has eased we may see a double impact on sp, the normal supply v demand and also perhaps peeps who had sold or reduced jumping back on.

i'm no ta expert but the chart looks like its got to a point where it wants to break decisively - i just hope its to the upside.

[soulsauce] 01/3/2021 10:03

Still no quarterly update?