Ariana Resources Share Discussion Threads

[kaos3] 04/5/2020 14:08

I consider Kerim much better investor in the gold properties than myself. He knows more about geology, risks, real possibilities etc. He can make much better use as an investor of 30 mil then myself imho. But he should placate me or I will cry for my mama

[kirbs4] 04/5/2020 12:46

Fair point!

[bigglesbingham] 04/5/2020 12:39

By all accounts the new JV partner is a Goliath. But the bigger you are the more diluted the management time is at the moment which means they've got less time to concentrate on mergers and take overs. So what's applying to our proposed partner ie time restrictions rather than financial issues would apply to others. I'm assuming here the delay isn't due to financial problems because deal would be dead by now if that was the case.

[kirbs4] 04/5/2020 12:14

I did think that but at the same time thought a goliath would be less impacted and retain the financial clout making it potentially an even more appealing time.

[bigglesbingham] 04/5/2020 11:05

Tarsvan will be funded via a loan similar to kiziltepe . Repayments only start when mine produces so self funding to an extent. And yes those against the deal will say this is a solid reason not for deal because the new JV partner getting half for their capital injection

[bigglesbingham] 04/5/2020 11:01

Not for me because the situation creating the extension applies to everyone.

[kirbs4] 04/5/2020 10:58

I remember when the MOU was announced there was some speculation on here around a speculative bid for the company and vaguely recall the general consensus being that wouldnt happen due to the MOU or something along those lines. Does that become more of a possibility with multiple extensions?

[thanksamillion] 04/5/2020 10:49

Owwh, I got a thumbs down, haven't had one of those for a while. I will wear it with pride. ;-)

[konil] 04/5/2020 10:45

thanks paul.

i thought the free carry through to production was for salinbas only. if so, then 23.5% of tavsan development costs would also be for aau's account. happy to defer to your take, which is a much better deal for aau.



on a macro level what do peeps think about au pricing especially with the cv mayhem? from 1500 to 1700 does not feel like pandemic pricing, is it just a lag?

[shortarm] 04/5/2020 10:34

From past interviews there has been plenty of interest from potential partners in Salinbas......With the JV possibility out in the open I'm sure other suitors would jump at the opportunity if it arises.....?

[soulsauce] 04/5/2020 10:25

Very good point bigglesbingham.
The cash requirements for Salinbas with us going it alone will nullify a dividend for many years to come as well as extend the already lengthy time taken to prove Salinbas up.

[bigglesbingham] 04/5/2020 10:19

I'm sure it's the companies intention to provide a regular dividend if the deal goes through. If the deal doesn't then their desire to provide a dividend I would suggest becomes a little more difficult when you have so much capital expenditure required in other areas of the business ie exploration costs salinbas, Cyprus and the like.

[thanksamillion] 04/5/2020 10:06

A one off $5m divi would be very nice, I would be much happier if there was(also) promise of a smaller but regular divi funded from profits of gold production from current mines/mill. They would still have $25m to pursue Cyprus/others. This would make a statement that the company expects to be profitable for years going forward and should support the share price

[bigglesbingham] 04/5/2020 09:41

Sounds right to me. Kerim intimated they'd be looking at the $5m received for salinbas as the divi.

[paul280i] 04/5/2020 09:34

konil, welcome to this bb from me, a too large a shareholder whose been around for nearly 10 years.
Just to pick up on your point that some of the $30m should be spent on developing Tavsan. That is part of the RR JV so the cost of that development should be borne by the new joint venture not Ariana leaving the $30m to be spent on projects owned by Ariana and it's 100% owned subsidiaries.
The $5 million divi I seem to remember is something Kerim mentioned possibly in an interview. It is the amount Ariana are receiving for their share of Salinbas that is being sold into the new JV. The other $25m is for their share of the RR project.
This is all just my understanding of the current situation, I've been wrong in the past so don't take this as totally accurate.

[konil] 04/5/2020 01:25

biggles, post 21079 - thanks.

et al,

i hope kerim and team are doing as much dd on the anonymous jv partner as they seem to be doing on aau. some comments here on the partner wanting to diversify into gold because of possible difficulty in their existing business - if that be the case it would make me want to steer very clear, as hopefully aau will do. also, the mou states a free carry to production on salinbas, and says partner will be responsible for bringing in additional funding, i assume 23.5% of those funding costs will be for aau's account.

if they do get $30m (hopefully a bit more) from the jv deal, i wouldn't be keen to see it spent on 'new' opportunities just yet despite the comment in the mou. its easy for first success to go to management's head and tight cash control to go out the window. i'd rather they used it to get tavsan to production and progress other existing portfolio projects rather than go off hunting for new licences etc. that would do 2 things, the obvious being bring in lots more cash but also it would prove the team are not a one trick wonder especially with regards permitting hurdles which i have seen being the death of many companies.

also, dont know where the suggested $5m divi figure comes from, but would hope it be a bit more than that.

just my 2 bits worth...waiting for the incoming tracer.

[temujiin] 03/5/2020 23:09

I agree 8rad, most investors here have faith in the company and assets, and I'm comfortable with the current asset, structure and forward expansion plans.

The deal if done, basically needs to be financially more appealing and offer better value than what we are selling. Hopefully it will be clear that it is.

[8rad] 03/5/2020 22:34

I think few people here moving forward doubt the boards frugality and nowse in finding good opportinities but rather are more concerned about getting fair value and loss of control.

[dixi] 03/5/2020 21:40

I agree with this. How can the company make any serious commitments to additional opportunities when they cannot be 100% sure they will have the cash? I am sure they have some ideas, but they can hardly bank on them at present. Whatever they maybe it is not a done deal as of yet.

[soulsauce] 03/5/2020 20:45

No bigglesbingham but that is the type of statement I would expect and wouldn't expect anything more.

[bigglesbingham] 03/5/2020 20:25

I'm too tired to look and had a few beers but has that been mentioned before.

[soulsauce] 03/5/2020 20:03

I think that is exactly what some are saying. How about 'the company will be fully capitalized to take advantage of opportunities that arise and to further the company's existing assets'

[temujiin] 03/5/2020 19:53

Risa, I don't think anyone is saying the company should say what it intends to do with the hypothetical cash it may or may not, get.

But if a deal is struck, then I for one would like a reasonable steer as to what they might do with it, as opposed saying nothing and looking like they haven't thought about it at all.

[soulsauce] 03/5/2020 19:35

Correct risa.