Ariana Resources Share Discussion Threads

[mcmather] 27/11/2019 13:05

Must have been my doppelganger plas; I've been sunning myself in the balmy north west of england.

(Just what I wanted to hear mind, 18260, ta)

[soulsauce] 27/11/2019 13:04

Thanks Plasybryn much obliged.

Let's hope Kieron follows through with a decent but note.

[plasybryn] 27/11/2019 12:59

By the way, nice to meet two ADVFN posters at the meeting. TJ4 & McMather.
Nibbles could have been better, but good to see the Co. keeping tight control of costs!

[plasybryn] 27/11/2019 12:49

Some, me included, have seen Ariana as very much Kerim's baby that he has nurtured carefully for 14 years from inception to a flourishing Co. I was there on Monday both at the presentation and earlier just with Michael & Kerim and asked him if he wasn't a bit sad to be losing his controlling interest. Absolutely not. They are all really excited about the future because it returns them to what they are good at (Exploration & Development)and finding new strategic investments to quickly monetise. But more importantly it is what they are most happy doing. Their raison D'etre. It is clear to me that all the prospects, particularly Red Rabbit & the full Hot Gold Corridor (not just Salinbas & Ardale) contain a lot more gold and silver of course, but it must have been frustrating to only be able to finance small steps at a time. That's going to change big time and the new incoming partner, as someone has already identified, will want a quick return on their investment. The new goal is to become one of the premier gold mining companies operating in Turkey. That would mean circa 150,000 ozs plus a year of gold production to match Eldorado or their like. Somewhere else it says we are now poised for rapid growth. We have all the ingredients to make that a reality. Don't look back, look forward and consider what might now be possible. The whole will be greater than the sum of the parts. By the way Kieron Hodgson was there from Panmure Gordon our brokers. I haven't ever seen him so excited. He was full of praise for what they have achieved and appeared very confident about the Co's future.

[d1g3y] 27/11/2019 12:32

Agreed, however I do wish the share price reflected the positivity. Keenly awaiting the next interview to see if we get clarification on some points

[thanksamillion] 27/11/2019 12:22

Long term hold here for me.

[soulsauce] 27/11/2019 12:16

JD kizilkukur and irvindi not included in the deal.
At the end of the day Ariana are getting cash equal to the current mkt cap and still retaining a decent amount of RR and Salinbas, retaining 100% of the two projects mentioned.

They have the improved wherewithal to forward the Salinbas and Tavsan projects and may be expedite and improve production at RR with the 3x exploration cost still in place.

And the main thing is they have a huge cash pile to pay a dividend but more importantly to invest in new projects.

I don't see anything other than positive.

[thanksamillion] 27/11/2019 12:16

Who buys 20 odd quid worth of shares ????

[bigglesbingham] 27/11/2019 11:58

JD I've personally no problem atall with alternate views soulsauce will vouch for that. For some reason my posts are getting cut short. On my previous post I wanted to say the board has been accused of making decisions which may not benefit shareholders but themselves by creating a company with very long term goals which keeps them in a job but would provide little payback for patient long term investors. This deal clearly benefits shareholders now with unknown potential of a smaller piece of a bigger pie. Based on their management and knowledge of the situation I feel I have to back them as I feel they have done and excellent job to date and as major shareholders themselves they would not be doing it if they felt it wasn't in the companies best interests.

[bigglesbingham] 27/11/2019 11:50

I fully support all views on here and had discussions with Michael and Kerim. A significant part of those discussions were the fact that we would be a minority shareholder in the kiziltepe and salinbas JV. It was explained that there will be significant protection and representation within the shareholder agreement. It is also clear that the three components of the JV have clear areas of expertise. Finance, engineering operations and design, and AAUs exploration expertise. A couple of points I would like to make are, the board has got us to this point and they know a lot more than the market and us punters who are speculating on the nitty gritty of the deal therefore I take reassurance that they, fully aware of all facts, would not be proposing this if the didn't feel it was beneficial for all shareholders. Another is that kizilcuker invindri are held outside JV. This move definitely improves shorter term rewards for shareholders. As to longerex

[jaynesdad] 27/11/2019 11:07

Thanks for the replies.
Dixi, you cannot seriously be suggesting that only bullish mails about this proposed company changing deal should be posted? People have different views, and even if they don’t correspond with yours they should be aired. It should make people challenge their own thinking, even if it ultimately just reassures them that they were correct in the first place.
As is probably obvious I am far from happy with the deal (understatement), but respect those of you who support it.
I personally would prefer Mondays RNS didn't exist. I find cashflows from a 51% share in a JV that has a debt free Tavsan joining the current productive assets in a matter of only 2 or 3 years very much preferable to a reduction of interest to 23.5%. In my view the cash lump sum of $25m comes nowhere near compensating for that lost revenue stream from JV to AAU over the next 10+ years.
A separate standalone JV covering Salinbas could speed development there, and I would welcome it. After all the BOD have expressed significant interest from multiple parties. It seems to me that we are paying heavily with our current (and only short/mid term foreseeable) revenue generating productive resources in order to secure a deal to speed the NE - and even then we are still giving away over an astonishing 75% of it (I add my understanding of the RNS may be flawed despite reading it several times).
Last Friday we had 51% of Red Rabbit and 100% of Kizilcukur, Ivrindi and Salinbas. Under the proposal that reduces to 23.5% across the board, with no guarantees of future success and a loss of control to an unknown entity.
Anyway, I decided to say nothing until the share price had found its new level which it seems to have done. I won’t be posting further on the board (note that I have not sold, I just don’t want to get into endless arguments).
JD has left the building! Thanks for the conversations over the last few months.

[jc2706] 27/11/2019 11:06

If the shareholding of the new JV partner went below 50% I am pretty sure that there would be no deal.

[mad foetus] 27/11/2019 11:03

There are buyers at 2.4

[dixi] 27/11/2019 10:43

Pretty much back to square one! I guess the speculators are leaving the building. It really has become ridiculous now.

[dixi] 27/11/2019 10:33

Meanwhile we can talk it back down! AAU stand to benefit from Salinbas way more with this deal than the previous arrangement. Corporate action was wanted to kick this along and that is what we have.

[mcmather] 27/11/2019 09:53

Can't see the terms changing JD.

As part of the new jv, AAU will "be responsible for all exploration across the new joint venture, with a reward mechanism of three times the exploration cost for all new projects injected in to the JV in the future"; I expect there will be some legals in there re minimum period that AAU will be responsible for the above.

Be interesting to see in whose name all the datasets (Newmont, Kefi, NE Turkey, etc) are in (suspect AAUs?) but if the jv does have bona fide plans to become one of the premier gold miners in Turkey, I'd suspect they'd want somebody onboard like AAU, so I'm less concerned by the percentages.

[supercity] 27/11/2019 09:43

In hindsight they might aswell have sold the lot - the Turks can effectively run the books any way they like being majority holders, the past profits may be no indicator of future profits.I can see why it's been done as they get 2-3 years of profits (which they would have got being 50-50) in a lump sum but does it take away the jewel in the crown and does it all start again trying to build profits.The money they receive once the debt is paid off may be returned in part to shareholders but I imagine that would be a minimal amount as they will want to use the rest for future growth.

[8rad] 27/11/2019 09:34

Well JD it is up to Kerim to explain to us in great detail his future plans and why they deserve our full support...I think 50/50 would be a better arrangement for RR.

[jaynesdad] 27/11/2019 09:12

My concern is the giving away control of the JV to an unproven third party. My understanding I that the proposed partner ('PP') will control 53% of Zenit with AAU/ Proccea holding the other 47% equally between them. It is the current JV partners who have, slowly but carefully and with great skill, steered the development of Red Rabbit to this point. As minority shareholders in the JV the PP could follow its own agenda which could well be to the detriment of the shareholders in the companies that have so patiently and diligently brought us to where we are now. If it comes to a shareholder vote I very much doubt I could support the deal unless the % control of the PP falls to 49% or lower.

[bigglesbingham] 27/11/2019 08:38

They will be financing it .

[mcmather] 27/11/2019 08:30

Have they got a spare $63m for this proposed deal? Or will they need to finance it? Either way, I suspect that they'll be looking to get a return on the investment as quickly as possible; ie a ramp up in all operations including production??

[scorscribler] 27/11/2019 07:52

Ignore that! RNS states construction and engineering contractor!!

[scorscribler] 27/11/2019 07:47

Could it be the bank?

[backmarker] 27/11/2019 05:03

the deal sounds great, but let's not get ahead of ourselves.

it's only at MOU stage!!! a lot can change.

I'm surprised there has been no speculation on who the new third party is. it sounds as though it is Turkish ( - but apart from Proccea the only Turkish company I know is Beko)

I agree with recent posters that the uplift in share price has put us to roughly where we should have been. the churn of sales and purchases has probably brought in some new investors and lost a few stale ones, which should all help the cause.

but we are all longterm holders here (- aren't we ??? ) so we will happily wait until the share price hits double figures