Ariana Resources Share Discussion Threads

[jaynesdad] 03/5/2024 19:02

Just been catching up having been out most of the day. I think everybody should pat themselves on the head for some some very fine content!
My feeling at the moment, which may be fluid as the time goes on, is that I don't think I can vote in favour of this deal without reassurance of how the eventual Dockwe plant will be financed. Obviously the board won't be tied to any course even if they make proposals, but I need to see this de risked somehow. The asset will be 100% held by the 'new' AAU, and even if the share price remains the same that means debt will be well in excess of the Market Cap. AAU hasn't got the majority within the JV, even with Proccea acting in concert, to insist that dividends are paid to AAU. So that source of income isn't assured. My ideal is that there will be a separate JV for Dokwe allowing AAU free carry to first pour there but certainly not by ceding more than 50% (or frankly not approaching it). I don't see that would be an unreasonable expectation given that there should be in excess of 1m ounces with a finger in the air net income of £1k per ounce post costs. Would be please to hear anyone else's opinion.

[trevor1234] 03/5/2024 18:50

Can the written Q & A be viewed by anyone other than the person asking the questions?
If so where?

[dixi] 03/5/2024 16:46

xow98, no I had fully expected the share price to increase with production news from Tavsan, initiation of dividends and solid profitably. But the damage has now been done. If the deal for Dokwe is stalled I think this will sit around these levels until the next scheme manifests.

[plasybryn] 03/5/2024 16:40

excellence - "minority holders" - ADVFN investors own over 20%. Biggles is a named shareholder - See the Annual Report & Accounts or RNS notifications.
You say "tasked with building a junior mining business into a mid tier entity" - who tasked him? Was that ever a stated Vision in the A.R. & A's as I haven't seen it?
He did indicate to a journalist a few years ago that he want to go from £50m to £500m but never said how. And that means little of course if the share numbers are multiples of today. He also wanted to run a 100,000 oz pa Gold mine which Salinbas and Tavsan combined should have got him there. At least that's what we thought. And a 5m Global Resource we thought could come from Salinbas/Ardale plus Red Rabbit etc. Now we only own 23.5%, soon to be a lot less.
I agree with you regarding Corporate experience and Board structure. But Salinbas/Ardale/Hizzy was always the elephant in the room, not itcy bitcy assets. I would have liked them to accelerate it, but as someone said they are spread to thin as progress has been at snail pace.

[xow98] 03/5/2024 16:29

Are you inferring that the share price wouldn't go up without Dokwe, in which case why are you invested in the first place?

[dixi] 03/5/2024 16:25

Voting against this venture isn't going to make the share price go up. I've had my whinge about moving goalposts, now it's time to let them get on with. I just hope that KS and Co can make this work.

[excellance] 03/5/2024 16:23

By the way, to get deals done you need to leave a little meat on the bone for the next guy. AAU have not paid a penny for Rockover, just equity, and they are locked in and can't sell.

The Rockover boys are heavily insensitivised to make the bigger AAU successful, so yeah a small backwards step in terms of dilution but I had been predicting an share price of a penny before this deal, and despite a raft of disgruntled senior minor holders selling the share price is still over 2p.

4p by Xmas.

[excellance] 03/5/2024 16:16

KS does not need to pander to individual minority holders, he answers to the controlling shareholders and panders to them and the wider markets.

I get that many senior holders were hoping to retire on AAU and get a yield as part of their pension plan, but none of that is any concern for KS.

KS has been tasked with building a junior mining business into a mid tier entity, and that is exactly what he's doing.

He is leveraging the modest profit from several tiny projects, some of which have growth potential in their own right, and others have a very limited shelf life.

He has had to find a decent project, will absolutely also have had confidential expressions of interest in financiers, hence the ASX IPO plan, and it all looks very well organised with modest risk.

This isn't the end, or even the beginning of the end, it's the end of the beginning.

Those who know me know how AAU have infuriated me for several years, with their itsy bitsy hotch potch no flagship no risk approach which could never achieve escape velocity, but now they have a serious opportunity.

I expect several corporate activity releases in the next year or two, with farm ins, partnerships, divestments, an open offer, an IPOs (or two?), consolidation...this will get very exciting in my opinion.

Of course KS now looks too inexperienced for the company he's created, so maybe we'll see more experience parachuted in too.

[xow98] 03/5/2024 16:07

Ordinary resolutions are used for routine or less significant matters, for example, appointing directors, approving annual financial statements, or declaring dividends

Special resolutions are reserved for more significant matters that impact the company's structure, constitution, or long-term direction

[soulsauce] 03/5/2024 16:00

Sounds about right to me Plasybryn. It's hard to comprehend, given the amount of dilution and the significant change in company profile that only >50% is required.
What was it for the Ozaltin deal?

[plasybryn] 03/5/2024 15:42

I can't see how the Co. regard this as an "Ordinary Resolution" which requires 51% of the vote in favour.

Ordinary Business includes the following business:

Adoption of final accounts.
Declaration of the dividend.
Retirement and appointment of Directors.
Retirement and appointment of Auditors and fixing their remuneration.

With a Special Resolution (SR) you need 76% in favour (three times higher than the votes cast against it.)

Ordinary vs special resolutions (SR)

You generally need a resolution to issue new shares in a UK company. The Companies Act 2006 requires private companies to pass an ordinary resolution, while public companies need to pass a special resolution. Your company’s Articles of Association may also have specific provisions related to issuing new shares, so make sure to review them carefully.

There are certain things, which can be done by the company only if a special resolution is affirmed at the duly constituted general meeting.

The notice of the general meeting should be duly given to the members, and the notice should contain the intention to purpose the resolution as SR to be mentioned specifically.

The resolution is required to be passed by any methods, such as voting on a show of hands or polling or electronically by the members present in person or proxy or postal ballot.

PLEASE CORRECT ME IF I AM WRONG

[xow98] 03/5/2024 15:37

Michael affable?

[shortarm] 03/5/2024 15:24

Still 7 times ours and we will be in several jurisdictions!

[kaos3] 03/5/2024 15:20

Sharenotes you are really doing a very good job.

I might even start being less detail facts based. As your language is very convincing and appealing to me. Soft and powerful. Nice. Cultivated and very professional. Sound of authority.

Thank you. I appreciate and learn from you and your recent posts.

It gives my perspective on AAU powerful push further into a new teritory.

[sharenotes] 03/5/2024 15:02

As I have stated previously, I think this merger has legs. I appreciate that will not be for everyone. I am attracted to AIM stocks because I am not averse to risk. Both Kerim and Michael are affable, likable chaps, no doubt. My biggest gripe is that we need more than that, for example, a stanch defence of the share price else, every time AAU paper is issued, the current shareholder base will be taking one for the team. To be fair, they may think the share price is purely down to external market forces (classic text book thinking like the supply and demand oversimplification nonsense) and is not part of their remit to defend. I strongly disagree. They both work for the owners of the company and the last time I checked that would be the shareholders. At a minimum, preservation of ownership value is primary or it should be.

Kerim’s take would undoubtedly be different if he was fast approaching retirement and looking to cash in his ‘chips.’ He needs to be cognisant of the shareholder demographic and long-time supporters and not simply Kerim working for Kerim. In his defence, with all the day to day business challenges he will be facing, it is easy to lose this insight. This is where a strong chairman is called for. If this merger goes through, I can only hope the additions to the board will go some way to rectify this. Paradoxically, the age of the new board members may be a help in this regard.

[charles clore] 03/5/2024 14:40

Having read the answers to the questions I am beginning to feel an ember of enthusiasm for Dokwe. I feel sorry for the sellers; such enthusiasm has not been seen for several years. I wish them all well, thank them for their contribution over the years, and hope to see them again as the share price warms up again, as I am certain it will.

[kaos3] 03/5/2024 14:17

Cant remember how many months ago this bb started to count votes as a group with each poster with his posting history declaring his votes by his free will...

[konil] 03/5/2024 14:17

the two sides of the dokwe yes/no debate...

jaynesdad's insightful comment in post 24271 explains why there will never be agreement on this.
"Many of us here are over invested as a result of the cosy risk/ reward profile that we have become accustomed to."


investors choose where and how much risk they wish to take, and can target investments accordingly. they dont have to accept a one size fits all approach. example: i have traded futures, which is about as high risk as you can get short of the roulette wheel.

but my investment in aau was specifically aimed at moderating risk with an income generating entity with low debt (no debt) but also small enough to provide chance of big capital gains through organic growth.

i came on board after kizil was already in production and ks's approach up to now suited me perfectly. if i wanted more excitement (risk) i could always look elsewhwere.

if ks gets his way he will change aau in a way that does not suit my investment here. on jaynesdad's point, i will be overinvested here. i had even intended to increase here when funds allowed. of course if dokwe goes ahead as currently intended i will be looking to do the opposite.

i may even make a profit (currently hugely in the red) when those looking for the type of investment dokwe represents arrive here in their hordes !


in short, if dokwe goes ahead the nature of aau will change and that will suit some and not others.

[soulsauce] 03/5/2024 13:24

🤣🤣🤣

[plasybryn] 03/5/2024 13:19

From johnpwh on LSE - made me laugh. We need a bit of humour.Just spent a time reading the Q&A.Disappointing, or maybe I just got out of bed the wrong side. I would compare the answers to those given by politicians to Laura Kuenssberg on her Sunday morning program. Mind you at least KS has a fallback career as a Tory MP if this sinks the company.In many cases, particularly the awkward ones, Sener answers a different question to that posed. Or just plain misleading. Examples:Q The Ozaltin deal was pretty rubbish wasn't it?A No, the share price went up from 2p to 6.25p! it was great!Observation: And when everyone stopped looking at you as the messiah it fell back, down to 1.6p only 2 months ago. Over 4 years on its only 2.4p nowQ Why didn't you release production guidance on time this year?A The dog ate my homeworkObservation: WoofQ Several other companies have shunned Dokwe because of deep desert sand cover. Why is this not a problem for AAU?A We have found that B&Q have introduced a range of big shovels so its fine!Observation: I must take my morning tranquiliserQ Will production really start at Dokwe in 3 years as mentioned in a very very recent RNS?A Well I said that but its complicatedObservation: We've heard it so before many times Kerim so stop digging as no one believes you anymore.Q Why no Gantt chartA Because timings can be hard to predict as they are out of our handsObservation: if that was true then surely sometimes things would happen more quickly than expected. Like just once maybe?Q Was involvement in Cyprus a good moveA YesObservation: That's a no then. £180k of AAU shareholders money spent to give the Apliki owners fresh data to increase their asking priceQ Will divis be paid to AAU shareholders when Tavsan is in steady state productionA Not sure, maybeObservations: Ah, not a snowballs chance thenQ Do you care a jot for your ordinary PI shareholdersA Ha, Ha, of course not, don't be silly!Observation: Ok I made that one up.Have a good day fellow sufferers

[soulsauce] 03/5/2024 13:12

Did everyone get their questions answered. I can think of at least one of mine that wasn't 🙄

[dixi] 03/5/2024 13:11

On the assumption this will all go ahead, only requiring 50%+ supporting votes. I just wish the enlarged company all the best. I just hope they can fulfil their vision and shareholders are suitability rewarded. I feel I have had my moan.

[highley1] 03/5/2024 13:02

sharenotes,

Exactly!

Another effort from the support group trying to turn investor disappointment positive again.



shortarm,

If Caledionia were in a better jusrisdiction their share price would be a lot higher, IMO.