Ariana Resources Share Discussion Threads

[8rad] 28/7/2021 19:17

BB ...you have told them this story for many a month now but they still do not get the picture. Why?

[bigglesbingham] 28/7/2021 18:29

Let me elaborate they know what's going on with the company and have been adding on that basis. The not empathise with shareholders was meant to describe the fact that they don't seem to understand how the common shareholder thinks ie we need full explanations and full information regarding strategy and if the private investor doesn't get that full info they draw wrong conclusions get disgruntled and move on. That is what the Board don't seem to appreciate. They may well have known that the divi is best to be paid in three tranches and sound business decisions back that. But they don't seem to understand that if external shareholders are not given full info then dropping that info at last minute makes a positive rns and negative one. The PR company isnt savey enough to understand that either. The above is my only real detractor from what is an excellent company.

[lottsgold] 28/7/2021 12:54

Already been making some notes, I'll get it updated ASAP now we have a little more meat on the bone!

[thanksamillion] 28/7/2021 08:47

Message for Lottsgold our BB patron.

Could you update the text at the top of the page with details of Kosovo etc. - in your own time, no rush.

Thanks in advance.

[soulsauce] 28/7/2021 07:37

Not sure it was wise to sell a lot of your Palm kaos 🤔

[kaos3] 28/7/2021 07:20

whatever I am thinking and writing - this is on many aspects the time to be adding imho - first time for myself after 2 years since I appeared here - and I am adding quite some for my modest means - sold off a lot of PALM and am back here

what I do wonder is that no one talks about a seller after KS said he is not aware of one. it really puzzles myself. why - because if there is no seller (which due to no TR1 or RNS it looks so) - there could be a very clever operator working AAU. which is a compliment to the AAU stock imho

[xow98] 28/7/2021 07:03

The timeline for people being paid an annual income (125k to 162k) from the company they are invested in with 28 million options is different to those of external shareholders.

[zangdook] 28/7/2021 06:48

"The BoD are two of the major shareholders" "they don’t empathise with shareholders"

Slight contradiction?

[bigglesbingham] 27/7/2021 19:49

Perhaps masterg1 could shed light as they seem to be pretty clued up with accountancy. ???

[jaf1948] 27/7/2021 19:43

I don't want to over-egg it and I happily concede that Ariana is a good prospect which is why I plan to stay invested.

However, I do not believe for one minute that the BoD have not known for months about the tax advantages so why did they not tell shareholders about it a bit earlier ? Where was the business reason for keeping it quiet until the last moment ? It is little things like that which sow the seeds of discontent. Biggles used a good phrase 'they don’t empathise with shareholders' - I can't improve on that.

[8rad] 27/7/2021 19:09

Right. so Ariana lets be explicit about exactly what is the tax advantages for the company and its shareholders for tranches...I know good Co Accountants.

[bigglesbingham] 27/7/2021 18:45

The BoD are two of the major shareholders. If there are tax advantages (and They wouldn't have said it if there weren't) of splitting then it will benefit shareholders because more profit. The 0.7p dividend was due to distributable reserves. So not sure how you can say BoD making decisions based on sound business principles is a fiasco? It took longer and shareholder expectations were not managed imho but communication is where they have always let themselves down. They run the company extremely well but there is a subtle quality lacking and that is they don't empathise with shareholders and they will argue that this is responsibility of yellow jersey but they chose yellow jersey and they must take responsibility and action in my view.

[konil] 27/7/2021 18:40

jaf, i share your frustrations and you raise some interesting points though i interpret things a little differently, unless information to the contrary comes to light.

i did not like the divi surprise they sprung on us but if its to the benefit of the company i.e. company pays less tax on the payout and hence retains more cash in its bank then it does benefit shareholders in theory. they could however have handled the information flow much better.

so far i have not seen management behaving in anything other than a business like manner towards the purpose of growing the company which benefits all shareholders of course but the big caveat is i cannot see inside the company so wdik.

undervaluation can linger for long periods of time and imo things like detailed drill results as superb as they may be are not the catalyst required to change that. mining is a slow burn industry with rewards for young developing companies not coming smoothly but in fits and starts.

if the market is already awake to aau's business then we have to accept the current valuation as being more or less correct. but i dont think it is correctly valued - those that have bought in know the attractions but i'm not sure many others do. it doesn't take huge amounts of research but probably just enough so that most wont go beyond a cursory looksee so at least for now it remains a hidden gem.

i guess we're all waiting for something to change all this, whether its aau generated or external by way of the gp, and zip the share price up a few notches!

[jaf1948] 27/7/2021 16:22

konil,

Personally, and I know I keep mentioning it, I think the market is already awake to Ariana but see it as a well-run profitable company but run for the benefit of the BoD not the shareholders. For example, the latest fiasco about splitting the dividend into three tranches - for tax purposes, says the company, which ultimately benefits the shareholders they say. Perhaps the shareholders would have a different opinion if asked.

It's a good investment IMO, but only if time is of no issue to you.

[konil] 27/7/2021 14:39

charles, you could be right.

they have failed to provide guidance on regular dividend policy but one would hope another 12 to 15 months would give them enough time to formulate a policy, and i'm guessing the way they have structured the special dividend (i'm not a fan) will lead nicely onto regular payouts after the 3rd tranche next year. hopefully the jv distributions to partners will have bedded in by then.

with the stagnant share price and the stagnant gp, and the surprise of the staged payment of special dividend and what seems to be a delay to tavsan production beyond what i (perhaps incorrectly) thought would be a 12 month delay, its all too far out for me currently.

nothing aau can do about the share price or the gp and imo they are moving well operationally so just have to sit on my hands.

like i said earlier, hope the c.7% near term payout will wake up the market.

[charles clore] 27/7/2021 12:28

konil - you state that 'some say stockmarket looks forward 18 months but for mining projects perhaps not so'. I think that for producers paying a dividend this is true. However, we are not quite there yet. Not quite! But almost.

[soulsauce] 27/7/2021 11:04

Cheers konil great post.

[konil] 27/7/2021 10:42

soul, no probs. simplistic extrapolation from today's rns suggests that if they can do 11,000oz in h2 2021, then on a fy basis it could be 22,000oz for 2022 onwards and maybe more if they tap into some of the higher grade stuff they have been finding. also mine life should go well beyond 2025, which gives time to replace kizil oz from other projects as kizil eventually winds down.

looking further, some say stockmarket looks forward 18 months but for mining projects perhaps not so. anyway if tavsan doubles output in 2023 it should do something for the share price sooner or later. and hopefully ozaltin will have got into top gear by then so who knows how far salinbas will be by then.

for blue sky excitement there is cyprus and whatever else ks is cooking up.

maybe pm bull will start running again to add further excitement, its had a long pause to digest the rise, but qe and the wider covid related economic problems have not gone away. basel3 for uk banks in jan 2022 could be interesting.

aau is maturing nicely but not exciting the market just yet. prospect of a c.7% return by sept probably too opaque for the market but should be clear once they announce paydate, maybe that will draw attention and catalyse something of a rerate to address the current undervaluation.

[xow98] 27/7/2021 10:36

BY NIGEL SOMERVILLE, THE DEPUTY SHERIFF OF AIM

AIM-listed Gold producer in Turkey Ariana Resources (AAU) has this morning updated the market on Gold production from its 23.5%-owned Kiziltpe plant. The numbers aren’t all that great, but we knew that already as lower grade ore is being processed at the moment, but the accompanying update on the plant capacity expansion offers much hope.

[bigglesbingham] 27/7/2021 08:31

The Kiziltepe operation is currently targeting an increase in mine life and an enhanced processing rate of 400,000 tonnes of ore per annum, with operations currently expected to conclude during 2025. The joint venture is confident that an increase in mine life can be achieved following the success of recent exploration and assuming the conversion of existing resources to reserves.

[soulsauce] 27/7/2021 08:11

And maybe a return to the higher grade ore at Arzu South Renniks.

[renniks2016] 27/7/2021 08:04

New processing plant up and running, just not fully automated yet, a couple of weeks and full steam ahead, H2 figures will be interesting as they have a gap to close to get to 19k oz, but next year could be stunning when start sprinkling in high grad ore from the bonanza belt and Kepez.

[soulsauce] 27/7/2021 07:57

Apologies konil it was me who had misunderstood.
Good news anyway. New processing plant almost up and running and loans soon yo be completed.

[uknighted] 27/7/2021 07:19

RNS 2021 Production Update

Dr. Kerim Sener, Managing Director, commented:

"The past six months have again provided production at Kiziltepe which exceeds forecasts, largely as a result of the higher-than-expected average grade that has been maintained through the processing plant. We are now looking forward to seeing the effect of the processing plant expansion, which is nearing completion, with process plant throughput already increasing during July. Once full-automation of the new system is established, around mid-August, we are expecting process throughput to increase to a nominal 400,000 tonnes of ore per annum, enabling us to maintain our guidance of circa 19,000 ounces of gold production for the year.

"The JV finances are in great shape, with repayments continuing against its working capital loan from Turkiye Finans Katilim Bankasi A.S., which is now over 90% complete, with a final repayment of US$0.8 million to be made in October 2021. Meanwhile the new loan facility from Turkiye Garanti Bankasi A.S., which provided the capital required for the plant expansion, is a third repaid."

[bigglesbingham] 26/7/2021 21:42

Keep the info coming excellent posts as usual !!!