Ariana Resources Share Discussion Threads

[paul280i] 11/12/2019 19:14

Dixi, I believe that is because the new company who's first venture this is into gold mining need Ariana's and Proccea's expertise to bring Salinbas to production, they are civil engineers, not miners.

[dixi] 11/12/2019 18:30

Don't really understand why the new co doesn't just bid for the lot.

[charles clore] 11/12/2019 18:22

The one thing that I find uncertain about from the proposed deal is simply the level of trust that we need to have for the big construction company. It seems both AAU and Proccea are giving a lot of the company away and we are almost at the watershed of success with Red Rabbit, Tavsan and indeed, Salinbas. I understand that there will probably have to be a huge amount of earthmoving before mining can begin and this is probably just one reason why it would be good to be in bed with this particular giant. But I don't understand what they expect from AAU and whether we can expect to be contributing in terms of costs. I think until this is known the market will regard the proposed deal as a non event. More meat on the bone please Kerim.

[bigglesbingham] 11/12/2019 17:07

About sums it up, however if we went alone and the drill results were very good then we'd be bought out well before production. The JV appears to be the lower risk half way house with plenty of upside. However if it doesn't go ahead then still plenty of upside . Nice situation to be in. The JV does give significant optionality to pursue other projects and avenues independently of the JV and who's to say kerim with $20m dollars in bank won't find some significant resources based on his track record???

[plasybryn] 11/12/2019 16:27

Great video interview on gold
Why this expert is confident gold prices will break past $1,900 in 2020 kitco.com/news/2019-12-1… #kitconews #gold #silver #metals #investing #economics #finance #mining

[bigglesbingham] 11/12/2019 14:33

MDV certainly wants payback he's no spring chicken and has largest shareholding so no i don't think they are in it for themselves at the expense of shareholders. This is one of the main reasons I invested so heavily and don't mind directors share options-: it aligns their interests with mine .

[dixi] 11/12/2019 13:49

Trouble is bigglesbingham news here is not exciting the market. We had all been patiently waiting for AAU to be debt free next spring, with some possible uplift along the way. That has now completely changed for investors. We are now waiting to find out how the market values AAU on completion of this new deal. So far it does not seem especially keen and is dividing opinion. Any uplift therefore is likey to get sold into... then what? Years of nerves about being a minority holder in what was our company? I sincerely hope Kerim has a decent sized rabbit to pull out the hat with this one. Or I can only assume he is doing what favours the bod and his exploration desires and not shareholders.

[erro] 11/12/2019 13:36

Hi dixi - the dilemma for the directors is that their share options are adversely affected by any dividend unless they wait for a year which is why they won’t want to pay much out in 2020.

[bigglesbingham] 11/12/2019 13:16

All down to supply and demand , you cannot get away from the fact which plas listed a day or so again. Until the MOU becomes legal it's just an indication as to how a party values some of AAUs assets. I'm standing at a realistic current Val of 4-5p with plenty of upside. But like everything it's an opinion based on many factors. Patience is the key. Yes I know many have been patient but the light is definitely at the end of the tunnel imho.

[charles clore] 11/12/2019 12:48

Thanks - about 0.2p lower than it is now! So all that news was worth just 0.2p. I must be frigging stupid investing in this company!

[temujiin] 11/12/2019 12:40

Yes sorry meant $5m divi is £3.86m. Thanks for info re shares in issue which alters sums a littke bit.

[thanksamillion] 11/12/2019 12:06

Yes dixi, has anyone wondered where the share price might be if the deal and Cyprus had not been announced.

[dixi] 11/12/2019 10:37

This is really does feel like 'hard work' at the moment.

The directors would also benefit nicely from a divi - hopefully that will discourage them from considering any further bonus payments from the pot. Lot of cash burning a hole in their pockets and all that.....

[thanksamillion] 11/12/2019 09:47

You're correct, My memory works on old data nowadays.

[plasybryn] 11/12/2019 08:59

Even less than that on my currency conversion page. More like £3.04m. And 1059,000,000 shares. But as you say still a tidy sum, especially for those with tasty holdings.

[thanksamillion] 11/12/2019 08:21

Sorry to wet your bonfire but.....$4m=£3.3m, still a tidy sum tho.

[temujiin] 10/12/2019 23:41

Feel free to correct, but if say we get $4m in divi's
thats approx £3.8m / share 1,000m?
= 0.38p per share
For me that is an approx £11,400 divi.
If I get that I intend to re-invest about half that back in AAU shares.

[bigglesbingham] 10/12/2019 20:42

Not atall, my view is that next year special dividend, year after a conservative regular followed by future div stream which will entice the income funds. Again that's what I'd try and achieve. Not too concerned with levels tbh just the principle

[bigglesbingham] 10/12/2019 20:35

The minority position does raise questions, and I have directly raised them with Michael he is very aware the protections have to be robust to say the least. He's very aware of what happened to Bahia and stratex. He's said they will be robust. Having said that there are many JV which are not equal which work very well but there is no getting away from the fact that minorities don't dictate. However the new partner needs AAU to develop and explore . Also their reputation is supposed to be exceptional so we will have to see the detail and who the partner is. Mariana had 30% hot maden remember and they sold for 170m so sandstorm weren't too fussed about being minority . With Cyprus I believe the technology kerim utilises and developed doing his phd will mean more targeted exploration and let's face it his track record aint too bad to date! Yes I believe the money will target areas which will result in exceptional results.

[shortarm] 10/12/2019 20:29

I don't mean to be rude... Oh, ok - maybe a little but you're the biggest 'book talker' anywhere!!If you've got some they're the best thing since sliced bread! If you've sold out then it's all smoke and mirrors!

[erro] 10/12/2019 18:47

Hi biggles.
If the deal does go through the new partner will have effective control of the mine. How do you think Ariana will be able to protect its minority stake in the JV especially from say profits having the risk being manipulated by the new partner for eg loading the JV with their own costs etc. I know they can have legal protections but these are notoriously difficult to impose - and if they do develop salinbas who knows how they would account for costs there. Would a royalty not be better. Would welcome your thoughts as you seem to make a lot of sense and given your shareholding size etc
Also with the Cyprus deal what do you think the $3m will be spent on (maybe drilling?) given that 105m Euro has already been spent with no green light on development in the past. Does it not worry you that Cyprus is light touch on financial/ legal regulation. Would value your views or if you have gleaned anything for the directors. Many thanks

[thanksamillion] 10/12/2019 18:33

I see copper is climbing nicely following our sign up to Cyprus. Up around 5% since.

[plasybryn] 10/12/2019 18:02

Sorry biggles I think I have strayed into your area of expertise. I'm sure you know a lot more about this than me.

[plasybryn] 10/12/2019 16:38

If anything like normality applies I also expect dividend/yield seekers to come out of the wood work once the special dividend is announced. There are widely followed web sites which list imminent dividend payers. Obviously income funds and income investment trust need big payers to help maintain their high average yields. This is especially true of those who attract buyers with higher than average yields. The question is could AAU attract such income investors and funds? Normally they would want to hold for regular dividends so perhaps a one off special dividend won't be so attractive given the attaching capital depletion. But we will certainly be entering a new world appealing to income as well as growth investors. Interesting times are acoming.