Ariana Resources Share Discussion Threads

[crossfirecssf] 28/7/2020 13:52

Just topped up another 200k here, while I wait for my online broker to 'open' quotes for certain other stocks. among them PALM, which they're not dealing just now.

I like the look and the sound of it, management first, but (again off topic, sorry) the prospects they have exude potential, especially in the coming 'high tide floats all boats' PM environment. The grand finale in all of this, has to be sentiment. That's going to be the game changer in the final analysis.

Wouldn't mind having me some pure silver plays also, as that is going to close the gap on gold in terms of ratio, being as it is 'Gold on steroids'.

[risa5] 28/7/2020 12:12

Ariana Resources’ 2019 full-year profit increases threefold

Turkey-based gold exploration and development company Ariana Resources’ profit after tax grew threefold in the year ended December 31, 2019, to £6.9-million, compared with the £2.2-million reported for 2018.

The miner attributes the increase primarily to the “excellent operational performance” of its joint venture investment in Zenit, whose turnover grew by 21% year-on-year, reflecting the favourable movement in the gold price and increased production.

Zenit’s profits after tax rose from £7.4-million, to £15.8-million, of which Ariana’s 50% share amounted to £7.9-million, up from the £3.7-million in 2018.

The Kiziltepe mine produced 27 985 oz of gold − 12% above production guidance − at an average cash cost of $507/oz.

The profitability of Ariana’s Turkish operations enabled the miner to report a significant improvement in earnings a share to 0.65p and a price to earnings ratio of six.

Ariana chairperson Michael de Villiers says production at the Kiziltepe mine has remained well above the planned feasibility rates since startup in 2017, resulting in accelerated depletion of the Arzu south openpit.

“Post-period end, this enabled timely completion of repayments against the $33-million capital expenditure loan, in addition to the joint venture partners receiving a return of capital invested and their respective share of profits.”

This enabled the payment of a maiden dividend of £1.6-million from Ariana’s Turkish operating subsidiary to Ariana Resources, representing the first profit cash flow in the company's history.

At Kiziltepe, resource extension work was completed earlier this year, while an extension of the life-of-mine to a total of ten years is currently targeted.

In addition, further drilling and resource work is currently being undertaken at Kiziltepe to test down-dip extensions of the Arzu south vein with a view to assessing possible underground or additional openpit potential.

Similar resource extension and other project development work has been completed at Tavsan with a view to bringing this project into production in 2022.

Salinbas has also seen extensive work during the year, achieving proof of concept on both the origin and potential extent of this very large mineral system.

Meanwhile, while the past financial year has been particularly good for gold, De Villiers says it has not been quite as good for silver. As the bulk of Ariana's production revenue (more than 85%) comes from gold, the lacklustre silver price in response to market sentiment has not had a material impact on the company’s overall revenue.

“Interestingly, the gold-silver ratio has for most of modern history been around 1:50, while the current ratio is closer 1:100 – a marked departure from the norm, which is an indication that the silver price is overdue for a positive correction.”

Ariana’s 2019 performance also benefited from the disposal of Ariana’s Kiziltepe property-owning subsidiary Camyol, which was sold to Zenit at a book profit of £600 000.

Ariana’s directors are confident that Zenit will continue to finance the group’s operations for the foreseeable future through dividends declared and paid over the course of the year.

Aside from the performance of Zenit, Ariana’s results are generally consistent with those achieved in 2018, with administrative costs slightly improved at £1.2-million, and net exploration costs written off also broadly consistent amounting to £400 000.

In addition, the effect of the declining value of the Turkish lira on the underlying value of Ariana’s subsidiaries in Turkey is £400 000, which is better than those achieved in 2018.

Nonetheless, Ariana’s earnings a share increased from 0.21p apiece in 2018, to 0.65p apiece in 2019.

The company’s net assets, as recorded in the statement of financial position, have increased by £5.3-million, primarily on account of Ariana’s share of the net assets of Zenit increasing by £3.8-million.

The company also capitalised a further £500 000 of expenditure within intangible exploration assets, being its Turkish exploration work, as well as incurring a further £500 000 of expenditure included within debtors on Ariana’s Cypriot project, ahead of it being converted into shares under its earn-in agreement with Venus Minerals in May.

[plasybryn] 28/7/2020 11:41

Investor Meet Company - Yes I had notification/confirmation from them this morning.

[d1g3y] 28/7/2020 11:13

Got account for Investor Meet Company and following Ariana but can't see any meeting on Thursday to register for.

[d1g3y] 28/7/2020 10:41

Has anyone managed to register for the webinar on Thursday?

[donald pond] 28/7/2020 10:18

FWIW AAU's share price has often had a delayed reaction to news. A mark down followed by a lunchtime wake up is not unusual: most obviously when they exceeded production estimates by 20% and were marked down most of the morning. Not sure why it reacts like that but it does.

[thanksamillion] 28/7/2020 10:05

I see the gradient of AAU's moving averages has just steepened, good sign if you ask me.

[thanksamillion] 28/7/2020 09:39

From Annual report.

I see the "Exchange differences on translating foreign operations" is down $400 (20%)on 2018, this cost shows after the eps figure which is therefore unaffected but at 8% of profit it is still a significant figure.

Edit: The above $400 should of course read $400k

[1candc] 28/7/2020 09:37

Normal on AIM to sell on news, but forward looking investors will see the future profitability eclipse the latest figures due to higher Gold and Silver prices. Add in the JV, dividend payment, more resource discovery and Cyprus then the share trajectory is still firmly up.

[2vdm] 28/7/2020 09:36

Doubt if institutions are interested in AAU, as it's small on their typical radars. Got in here recently with a LT view. Like the company, particularly the mngt and the prospects goinf fwd. Agree that the sell off is short term traders getting out on the news. The question for me is at what price do you top up. Views appreciated

[bigglesbingham] 28/7/2020 09:33

These are just traders a lot following Shareprophets top slice advice who will come a cropper in a month or so

[soulsauce] 28/7/2020 09:30

Done CSSF.

I see the smash down have started on the PoGs. I have seen reports saying we should expect this and may very well see fluctuations of $50 or more a day but shouldn't be at all worried by it.

[ramas] 28/7/2020 09:29

Just profit taking from overweight longer term holders , could be an opportunity to top up in coming days , even for instis but that's hoping they will want to put new money in . I can see this as a potential target in the next year or so if the gold price plays ball , imho dyor etc

[gary hindsight] 28/7/2020 09:22

Very happy with results and progress here surprised about all the initial selling. So much chatter about waiting for results to validate progress and when they come out people sellIf you invested here because you believed in the company I am not sure what there was in those results to make you think you made a bad call

[crossfirecssf] 28/7/2020 09:15

Soulsauce, I’ve popped a post on the PALM board and if you’re able, a brief response re your opinion just at some point would be very much appreciated, cheers.

[plasybryn] 28/7/2020 09:08

EPS of 0.65p & P/E of 6 and costs of US$507. Targeting 10 year mine life at Kiziltepe.
Underground & Open Pit work, Tavsan from 2022, Salinbas & beyond, Cyprus. What a story.

[plasybryn] 28/7/2020 09:06

Agreed Biggles - Salinbas has also seen extensive work during the year, achieving proof of concept on both the origin and potential extent of this very large mineral system. The area has attracted significant international interest following the spectacular recent drilling results from the nearby Hot Maden project, validating the perceptive decision by Ariana to continue investing in this region.

[bigglesbingham] 28/7/2020 09:00

Salinbas is going to become more prevalent imho

[cyberbub] 28/7/2020 08:55

Remember that on AIM, good news always leads to a selloff.But the medium/long term prospects here are still the same: excellent, IMO.

[pastybap] 28/7/2020 08:53

I'm relatively new to this company, but been gradually adding to gold exposure in past couple of months. Really like the tone of the report. Management come across as positive, yet very genuine.

[theduke420] 28/7/2020 08:35

I love this company. Thanks to all team and management for hard work and great consistent results.Agree with Philby, disappointed no mention of ariana polo shirts for share holders lol

[risa5] 28/7/2020 08:26

Ariana Resources delivers nearly £7mln of profit on low-cost gold production in Turkey
Ariana Resources is well-established as a producer in Turkey

Ariana Resources PLC (LON:AAU) returned a profit before tax of just under £7mln for the year to December 31, 2019.

The profit came as the company continued to enjoy revenues from its Kiziltepe gold mine in Turkey, where operations are now well established.

“This has been another outstanding year for Ariana, which has delivered production and profitability well above its plans,” Ariana chairman Michael de Villiers said in the full-year results statement.

“The Kiziltepe mine, which is held within Zenit Madencilik (a 50:50 joint venture with Proccea Construction Co.), achieved gold production of 27,985 ounces, 12% above production guidance at an average cash cost of just US$507 per ounce. This, once again, places the Kiziltepe mine comfortably amongst the lowest-cost gold producers in the world.

"The profitability from our Turkish operations has enabled Ariana to report a significant improved earnings per share of 0.65p and a price earnings ratio of 6, which is a respectable position in the junior gold mining sector,” he added.
PI

[bigglesbingham] 28/7/2020 08:22

No I can't see why they would want to do that. The JV is happening so why delay news it won't have any impact on JV unless they find a multi million ounce find but even then I think KS has got his eye on Salinvas as being the major prize with the potential targeted additional 2.4 million ounces.

[soulsauce] 28/7/2020 08:22

Great minds CSSF.

I think it just reads to me that they think, or may be already have, energy companies sniffing round to get on board to progress copper developments as a sure source of the red metal which is going to get in ever tighter supply.

Or am I reading too much in to it.