Ariana Resources Share Discussion Threads

[shortarm] 21/3/2022 13:49

Venus October states 2.6 million income after tax... 30 million based on income and assets on top sounds entirely reasonable? No?

[shortarm] 21/3/2022 13:47

Tavsan EIA was issued 8th Oct and RNSd on the 14th.Black and white.

[soulsauce] 21/3/2022 13:47

Thanks for that konil. I guess Venus will not be listing on Aim then.

[soulsauce] 21/3/2022 13:45

konil a lot of salient points there and agree with much of what you are saying, however we should have been told more about what that money was going to be used for.
If I knew it was going to be sat in some bank account 'somewhere' I would not have voted for the jv.
I was led to believe, maybe wrongly, that it would be invested to in some measure replace what we had given up.
I guess it all comes down to lack of and poor communication again but it is the first thing I will be wanting to know at the next Q&A. Where it is and why it has not been invested.

My decision to remain invested here might rely on the answer.

[lottsgold] 21/3/2022 13:43

https://www.fca.org.uk/news/press-releases/fca-confirms-new-listing-rules-boost-growth-and-innovation

[lottsgold] 21/3/2022 13:42

From the FCA website, new rules from Dec21Increasing the minimum market capitalisation (MMC) threshold for both the premium and standard listing segments for shares in ordinary commercial companies from £700,000 to £30 million. Raising the MMC will give investors greater trust and clarity about the types of company with shares admitted to different markets.

[bigglesbingham] 21/3/2022 13:38

As usual some good even discussion today on this board

[konil] 21/3/2022 13:32

soul, i do not dispute your point about unused cash. imo its not that easy to do due diligence on mining projects to ensure its not just a hole in the ground with owners who have unrealsitic dreams and are trying to attract funding based on hot air, simply because there are so many such money pits around, where does one start.

i think he has done exactly what you have said, i.e. used his contacts to root out opportunites and make some early investments accordingly. not big money so far, but he must be looking elsewhere too.

perhaps we agree on the middle ground i.e. the cash should be used, judiciously. but ks already has too much on his plate (i doubt he is sitting idle twiddling his thumbs waiting for the millions to roll in). begs the obvious question - isn't it time to beef up the bod, perhaps bring in a m&a expert with a mining background and a pr supremo? again, not easy to find the right men for the job, and not cheap, so salary and options would be the cost but if the right people found then well worth it.

at the bottom of it all is the fact that if you buy into a mining project close to fruition so that it is not a long wait until payday, its going to be very expensive and returns not that great, if you buy in early stage then a long wait and more risks but returns could be mega. so a difficult balance to find.

on that last point, i think ks has knowingly in part (venus advantages) and perhaps by luck in part (apliki opportunity), played a blinder with venus jv.

[soulsauce] 21/3/2022 13:15

No heard that one Lotts.

[jaf1948] 21/3/2022 13:09

Biggles, But will the Salinbas drill results move the share price upwards ? In fact, what in 2022 will have any positive effect. Yes, the future looks very good and their strategy may well be correct, but why should I not sell out now and buy back at Christmas ? Holding for the dividend has, up to now, only lost money.

[lottsgold] 21/3/2022 12:47

On another note aren't the new IPO rules on AIM 30million minimum, or will it list somewhere else do we think?

[soulsauce] 21/3/2022 12:37

Well yes they would bigglesbingham.
They were already on their way to securing 50% of Venus and would have easily funded that remaining %age from the full 50% income from kizil.
What we have seen for our vote to sell to Ozaltin is a dividend which is being paid piecemeal contrary to what we were led to believe, some investments by Asgard and a jam tomorrow early stage poke about in Kosovo.
I don't call the time Kerim has had as short for a potential investment for our money. He must have his ear to the ground and know what is out there.
I suppose it all depends on how much time you put to it when you are enconsed in Australia and digging around with Pnt. Harsh, maybe 🤔

[kaos3] 21/3/2022 12:34

yes - they are improving their communication on the strategic fronts. They are slowly getting better at addressing issues. And that IS encouraging.

[bigglesbingham] 21/3/2022 12:18

Soul these were the same arguments and question being raised regarding kizeltepe, they addressed these by crystallizing a significant portion of the project and returning .7p dividend. When this happened many scoffed and said why didn't we keep it and get small dividend stream. If we had there would be no Venus no cash pile in the bank and no diversity . Investors can't have it both ways . As many know I back the company strategy and criticize the PR and communication. However I firmly believe in the strategy they are pursuing and they have updated the market in response in part to comments on this board and questions asked directly to the board. So credit where credit due.

[bigglesbingham] 21/3/2022 12:12

Timescale is everything JAF. However in the short term I'm interested in Salinbas drill results.

[bigglesbingham] 21/3/2022 12:11

Well said konil.

[bigglesbingham] 21/3/2022 12:09

They are stating what happens if mine is built and status quo maintained. At any point on that journey they may decide to sell on. KS has no alternative but to state the situation as is. Again it wouldn't be prudent to say anything but.

[bigglesbingham] 21/3/2022 12:07

I believe they wanted to reduce exposure to turkey. Which is a tick in my box. I would much rather they take their time to assess opportunities rather than invest for the sake of it. It's a prudently ran company. Some on here say KS treats company still as though it's his, well if he treats the cash as his and makes prudent decisions rather than chasing returns well that's fine by me.

[soulsauce] 21/3/2022 11:56

I hear you konil but I don't think it is prudent, when we have given away such a large amount of income and production, to be sat on that cash uninvested when inflation is running at 15%. It is a complete nonsense that if that is what they had planned to do they thought giving up what we did was a good idea and maybe should have been laid out to us instead of vague references to investments which have turned out to be from Asgard.
The company has had 2yrs to find a good home for a chunk of it but probably he has had too much time on other projects.

[lottsgold] 21/3/2022 11:55

I think everything seems to come down to different definitions of quick! 4 years from initial 9% buy in to operating mine is quick to me...

[paul280i] 21/3/2022 11:52

I can remember KS stating that Venus was a short term project with a quick return. Has that changed?

[konil] 21/3/2022 11:44

hi soul,

its organic growth, which does not always result in an immediate direct feed into dividends. i'm sure all parties to the jv will be keen to extract their share of profits, and aau will be one of those.

your questions/concerns are absolutely on point but until we have details no one can answer them.

should aau use the cash pile to take a more direct or increased interest in the cyprus project? on the face of it, it seems a good idea but we dont know the various factors at play in that decision making.

in the meantime i'm quite happy to see this 'large' copper project get to fruition, secure in the knowledge that aau have cash reserves for unknown eventualities. i maintain that i'd rather management take a slowly slowly approach to spending the cash, seen too many managements get gung-ho on receipt of cash windfall only to fritter it away.

today's update confirms a copper project which aau paid peanuts for (thanks to ks insight?) is still on and fast tracked to delivery by 2023/2024.

[jaf1948] 21/3/2022 11:34

This is now a young person's share. As long as the company is run by a technician rather than a businessman, it will continue to offer at best only long term rewards.

No businessman would be leaving millions sitting around earning nothing for the company - they wouldn't spend it all at once but they would make prudent investments in both short and long term projects. Our management, to date, have done precious little with it.

[soulsauce] 21/3/2022 11:19

But what is the pathway to income from Cyprus konil.
At the moment being a shareholder of Venus, as of yet an unknown amount post ipo, we will only get a value we can work out of our share and benefit from any uplift in the Venus share price
But any income will only come IF Venus pays a dividend or we decide to sell down our shareholding if it has increased in value.
It seems an opportunity missed with our cash pile if these assets are as good as we are led to believe.

[konil] 21/3/2022 11:09

i could nitpick the details in the update - that would be to miss the point - which is that a stated milestone having been missed by several months with no update causes huge market uncertainity which hurts sentiment and the share price

this update has removed that uncertainty and confirmed the apliki project is still 'on'.

pending confirmation of completion of the jv, this update is massive news.

for an investor it will be a case of sitting back and awaiting delivery of production.

we are told 18 months after ipo i.e. c.late 2023, fwiw my expectation is q1/q2 2024, just round the corner in mining terms!

and of course we expect tavsan in production before then! sometime in 2023?

in the meantime the venus ipo will be a chance to see how the market values the deal and will of course relate directly to aau's holding, which should feed through as upside to the languishing share price

for all the excellent operational delivery on the turkish projects as regards drill results, increased reserves, lom, etc. - not to be underestimated but which clearly is underestimated by the market - by contrast the venus ipo may be the best near term chance for uplift in aau share price

q2 2022, not long to wait. even the aau aficionados could be surprised!