Ariana Resources Share Discussion Threads

[soulsauce] 03/5/2020 19:35

Correct risa.

[risa5] 03/5/2020 19:29

It is possible that AAU is negotiating for better terms than has already been offered.

On that basis it should not say what it intends to the with the cash that has been offered in the current deal because that may compromise its negotiating position.

I believe AAU should only show its hand of what it intends to do with the cash when all the negotiations has concluded.

[dixi] 03/5/2020 17:04

bb - your spellchecker :-)

[bigglesbingham] 03/5/2020 16:59

May be but after the new base share price of 5-6p. With this environment there will be so many opportunities with$25m to spend.

[temujiin] 03/5/2020 16:55

Kizil is a cash cow, and Tasvan will be one as well in a couple of years or so. These are current and future, very visible, profitable mines and LoM is likely to be extended. That's why I invested in AAU.

I think it's safe to say most view AAU at 3.2p as very undervalued.

If we have a deal to sell over half of that I'd like to know the money is going to be used wisely. That's a reasonable position to hold. I'm not asking for details of which country, commodity, or company. However I'd like to see a statement like 'AAU intend to buy into an undervalued profitable gold/silver/whatever company with huge exploration upside' or 'we intend to fast track exploration in Cyprus and bring that into production' etc etc.

If there is no exciting short to medium term vision for this money, then imo AAU run the risk of a big SH churn after the one off divi is paid.

[bigglesbingham] 03/5/2020 16:36

What you mean?

[dixi] 03/5/2020 16:33

It's not playing fair at all now bb, I'd give the damn thing the sack. Damned technological interventions lol :-)

[bigglesbingham] 03/5/2020 16:29

New mint database bloody spellcheck

[rjwoodrjwood] 03/5/2020 13:09

I'm sure Kerim and Zack have a range of 'target areas' spread right across Europe and Australia in a range of different commodities, and probably have them arranged in the order they would like to get involved in them! To give away too much detailed information before the £30m arrives, and the ground secured, would just be handing our commercial advantage to other parties. Personally, i really don't care much about if the deal is done (or not!) in either option I believe there's a very bright future ahead.

[kaos3] 03/5/2020 12:13

I expected something like:
- we are looking for the targets in that material or in that area
- we have identified several targets
- we will fast track Cyprus
- .....
and it will be even much better than it is at what we already have because ....

no one is naive to expect trade secrets to be told at all - hence I wrote - open info to some general degree


"I do not get it why not being open at this stage (to some general degree)"

never mind - I agree - all we can do is trust them based on their past record.

But - this stance (past record) cost me a lot of money. Not any more. Many manageres are not able to do it again specially in the exploration sector (oil & minerals). Just 2 of them - EEN and AMER. CGNR. Great past record turned into the catastophic present.

[soulsauce] 03/5/2020 10:36

21093 excellent post bigglesbingham.

[bigglesbingham] 03/5/2020 10:21

Not talked it as picking on. I do not fully expect NOT to be told what they are going to do with the money. This type of money will potentially lead to acquisitions can you imagine any company telling the investor what assets they've earmarked prior to approaching the companies?? I actually think this is a big reason the new JV partner wants anonymity because if their competitors caught wind early they'd contemplate a rival bid. When investing in a company you have to look at track record as a main criteria and cost per explorational ounce is a big one. So you could argue it's having faith in a proven track record but that certainly isn't blind faith. I understand your blind faith comments more now however ie in relation to how they will invest the $25m . We know $5m will be paid as dividend .

[charles clore] 03/5/2020 10:02

JC - in this case the investable commodity attracting the new partner is gold, the buying power of which has outperformed cash over the past 100 years or more.

[jc2706] 03/5/2020 09:32

I have no problem with the terms of the JV. I have seen far too many instances where PIs put values on companies that are far out of line with reality (GGP is the obvious one currently) that when an offer such as this that comes along with a significant cash element I am realistic about the alternative potential.

That said, I suspect that the current environment has a chance of scuppering the deal. It is understandable that a company may wish to diversify into gold but when you are confronted with the business income collapsing for the foreseeable future the only thought that enters most companies is 'conserve cash'. I suspect that the delay may well be in part to see whether the picture becomes clearer in the next couple of months.

[kaos3] 02/5/2020 19:11

ok biggles - what about spending plans for the 30 mil - should we know the plans or not - before deciding (in theory) about pros and cons of a JV and its long term benefits to us? ok we get cash soon. 15 % of it only. meaning the unkonwn spending plans should be even better (even better returns at the same risk level) khmmm than existing situation imho

I am not picking on you - you are the only one discussing it with me ;)

[plasybryn] 02/5/2020 18:24

But we were told they want to diversify into gold no doubt for the very reasons COVID is effecting their business. Gold is the ultimate hedge as we know.

[bigglesbingham] 02/5/2020 17:06

In fairness they've insisted on anonymity since MOU was announced so it not sudden developments which have suddenly altered their stance. May be the way Turks do business perhaps ???

[bigglesbingham] 02/5/2020 17:03

What's the exact article your referring to?

[bigglesbingham] 02/5/2020 17:02

Not quite with you on blind trust issue. I certainly don't blind trust anyone when I've a million quid invested! They have said the new JV partner wants anonymity for whatever reason and they are respecting that however nothing is agreed until the shareholders ratify the deal and we can all see the details. We aren't being asked to agree to anything blindly. It's quite nice that some posters are saying they are leaning against the deal albeit without full details known because it means the shareprice won't tank if the deal doesn't go ahead. I think we all know this is undervalued deal or no deal.

[pranchalee] 02/5/2020 15:39

I too believe that any construction company with that sort of cash might find it difficult to part with it as the economic future for that sector could be challenging and if it was a good deal for them this would have been sorted,just my view and for what’s it worth I am beginning to favour no deal