Ariana Resources Share Discussion Threads

[charles clore] 04/10/2021 10:24

It won't affect their bonuses and they dont dispose of their shares so I can't see a declining share price affecting them at all. Let's face it, they couldn't give a tinkers cuss about the share price. All they want to do is explore and cherry pick at little projects while they sit on a fortune in the bank and mine their assets.

[jaf1948] 04/10/2021 09:26

Another day, another fall. Perhaps the company will begin to pay attention to the share price when it starts to affect their options or bonuses.

[konil] 03/10/2021 17:04

thanks actonovator, will take a look.

re. replicating the successful model - that comes with the need for big financing (mine development) and takes years (permitting, further drill testing, mine development) to get to fruition. also the need to have the expertise and manpower at the correct locations, not a trivial issue.

but they could probably get to a jorc standard classified asset and a bfs without needing to raise additional financing and in much less time, probably many years quicker, at which point a sale may be possible. its a kind of sweet spot prior to the money and time needed to build a mine but with enough early stage work done to define the opportunity to entice buyers.

so sell it and use the cash to rinse and repeat elsewhere, maybe at some wts or asgard prospects or elsewhere which may be ready for drill testing. of course the sale terms would include royalties to aau/partners, so once the buyer gets to point of production (years later) at their cost and risk then royalties start accruing to aau for the life of the mine.

anyway, just daydreaming, not a mining expert so wdik.

[actonovator] 03/10/2021 16:25

Konil, the Cyprus rns was 2 Dec 19. Pure speculation, but I think they will go all the way in Cyprus . The Proccea jv model was succesful , so why not replicate it?

[renniks2016] 03/10/2021 16:20

My understanding of monetising Cyprus was through production, low cost, easy set up with plenty of mined ore in tailings ready to process, financing mine start up if needed. IMO

[jaf1948] 03/10/2021 15:36

I would love to see the share price higher through the BoD promoting the company. Whether they like that part of the job or not, marketing is one of the BoD's responsibility and not something they only need to do if they feel like it.

[bigglesbingham] 03/10/2021 14:59

JAF would love share price to be higher but with a large holding im more bothered about the fundamentals and I believe the company in strongest position it's every been in. Yes it will value out but we could all benefit from an increase in price. Konil got it right we need a dedicated marketing dept but I won't hold my breath.

[konil] 03/10/2021 14:49

bb, 'income generator' suggests ongoing stream of income (like kizil, tavsan etc.) or have i misunderstood?
i would prefer the sale option.

[bigglesbingham] 03/10/2021 14:46

In my view going to put a bow round it and sell. In an interview / rns KS described Cyprus as being the next income generator . Don't recall when it was but struck me as sale straight away .

[konil] 03/10/2021 10:22

actonovator, interesting points re. cyprus. date of original rns please?
the copper/gold opportunity could be very big.
what is your view on possible aau strategy i.e. how far will they take it before looking for a buyer, or all the way to development?

[actonovator] 03/10/2021 09:49

Tem, I think all the talk of Ariana being 10p+ was fair at the time - Gold at the time was circa $2000 and pushing on. If last week's reversal is the start of a new uptrend and we get solid news from both Cyprus and Tavsan, then its reasonable again to start talking 10p again. Ha, we'll see...

[actonovator] 03/10/2021 09:38

Konil, I think the cash will be spent slowly. If you look back to the original Cyprus rns it says Ariana did 2 years of due diligence before committing. Interestingly the original rns also says they would earn 50 % ownership by spending 3m Eur within 3 years. Well they will have achieved that within 2 (Covidy) years - so they really have had a good crack. I suspect a fair chunk of the cash is reserved for Cyprus. Do Semarang (the other 50% holder I think) have their share of the next 3m to be spent? Or will they sell off a controlling interest to Ariana? Either way, I believe Cyprus is being fast-tracked.

[lottsgold] 03/10/2021 08:24

I've been in and out of both too, PUR I caught after Sprott bought and managed to sell near the top (for once) then they had issues in ramping up and other financing issues and AAZ has had an amazing 18-24 months. The assets they have been promised should have doubled the share price but haven't so it's all relative. PMs have had it rough it's not just here.

[konil] 02/10/2021 17:24

i like the slow/careful spend of cash on new opportunities, too many companies rush to spend available cash on ill thought out plans or on under researched opportunities, only to find the cash pile has gone for little if any return.

i would like to see faster pace with tavsan, salinbas and venus though.

[temujiin] 02/10/2021 16:48

Hi Actonovator, it's a fair point re having money to spend picking up a distressed asset, but that only works if we have a situation where that crash occurs and we would likely be marked down as well.

Ozaltin have had quite a while both pre JV and after to get their plans in place and moving, but so far haven't. That should change and it's good to hear that drilling will commence soon. I might take my investment up above a 1M again but probably will wait until activity has picked up a lot more than of late. AAU's share price hasn't suffered as much as many others so it's proving not a bad place to have had your money parked.

[actonovator] 02/10/2021 16:29

There will be people here with bigger portfolios than me but I only really have AAU and occasional minor trading where I can in PUR and AAZ.

Sector comparisons clearly need to be wider than just these 2 and they perhaps arnt the best comparitors - but AAZ has seen almost no change in the last 2 years - neither rising with the gold price, nor declining much either. And PUR is roughly a third of of its peak.

[actonovator] 02/10/2021 16:18

As for the slow speed in spending the treasure chest, yes disappointing so far. But if there is an almighty crash in the markets as many expect, and he picks up distressed assets on the cheap, then we'll judge him differently...

[corrientes] 02/10/2021 15:51

Far better small mining stocks to pick up than this one. Don't just look at the prospects, but rather pay more attention to the man in charge to get a better perspective. Definitely not a 'bottom sniffer' .LOL.

[actonovator] 02/10/2021 15:44

Well, none of us are happy with the share price for sure Tem. But given that Ozaltin have only had their feet under the table for 7 months and its been another Covid-influenced (yawn) year, I feel its too early to make a judgement. And quite frankly none of us on this board have any data whatsoever to compare Ariana's old ability to develop Salinbas vs Ozaltins. So it comes down to trust in Kerim's judgement. And as you say -its a well run company.

Besides all of which, the declining gold price has had the biggest detrimental effect here. Lets hope the midweek turnaround in the gold price is a reversal.

[temujiin] 02/10/2021 14:51

With a few exceptions this BB was virtually rammed full of posters proclaiming what a great deal the JV with Ozaltin would be, how it would turbo charge Salinbas, how they couldn't wait to see what Kerim would do with the cash elsewhere and for good measure a few talking about and share price 10p+. Seems like we have more of a buyers remorse BB as things haven't panned out quite they way many expected.

I didn't like the deal as I might have mentioned a couple of time :) but AAU are still a well run company with good prospects and plenty of upside from many angles, Salinbas exploration, new Tasvan mine, plus Cyprus being the main ones, but sadly AAU is more of a passenger now and being a 23.5% owner of a small gold mine isn't that exciting.

I used to have 3m+, only 1m+ prior to going Ex-Div and now down to about 250k but only because I don't see much share price movement until Ozaltin get their act together and start driving the project forward at the pace AAU used to do. I probably will buy back in once that happens tho, as I still like the prospects.

[konil] 02/10/2021 13:29

having spent years creating a producing mine with 2 more on the horizon (near term and medium term) its not surprising that aau is seen as a producer but now it is moving more towards a second phase of exploration.

it would serve aau well if they could market the company as an explorer, this is the direction ks is moving, with investments in venus, wts, and through asgard - and it is where aau's strengths lie.

enabled by the cash funds and income stream from the initial successful phase of company development and currently with no (very little) debt it is in a rare position for a small exploration outfit. even more rare to find one paying dividends. what? yes really!

any investor with an eye for value and an understanding of risk would quickly see the unique investment opportunity provided by aau as a still small explorer, with its large cash balance and 'ready-made' income stream from its mines (soon to be 2 and then a big third).

imo what this requires is an effective rebranding and remarketing push explicitly highlighting this new direction and phase of company development. they need to appoint a marketing supremo as good at marketing as ks is at exploration. would not come cheap but could payback surprisingly quickly by reducing financing costs as market cap increases, which would also bring in institutional investors further bolstering aau's reputation.

[bosbus] 02/10/2021 12:43

I bought @ 4.35 yesterday which suggests every trade was a buy?

[bosbus] 02/10/2021 12:38

That was my guess yesterday when I added 🤞