Ariana Resources Share Discussion Threads

[shortarm] 29/7/2020 08:03

Interesting jump in the ask!??

[soulsauce] 29/7/2020 07:35

What is FF?

[konil] 28/7/2020 23:39

gary, thanks. those factors certainly are worth something, though i still can't see it being x8. its probably my misunderstanding of pricing in the pm space. the proof one way or the other will probably come about 18 months out, when we see what the comparative values are then. meantime i'll take another look at the points you mention. thanks again.

[charles clore] 28/7/2020 22:09

I recently mentioned this and its doubled as well!

[a.fewbob] 28/7/2020 21:50

I recently mentioned FF,

Canadian explorer with lots of prospects one of which is very large.

Set up by Kieth Nymer of first majestic.

It’s doubled already.

[gary hindsight] 28/7/2020 19:54

KonilLook at the gold grades they are seeing they are very significant and they have much more of the area to explore still but each extensions seems to yield very high concentration some of the grades are amazing. So clearly Ariana has plough through tonnes more ore to get the same quantity of goldCheck through the rns this yearCanada is low risk politically etcRick Rule of sprott recently put in $15m at a premium to the prevail share price to expedite production.

[crossfirecssf] 28/7/2020 19:50

During this period of the greatest Monopoly money printing event in world history,...gold isn't going to tank. It's going to hit the roof. As will silver. We have officially entered the twilight zone of economic experimentation and cack-handed, asinine thinking. It’s ‘One Flew Over the Cuckoo's Nest' time in central banks across the globe. And the US is the Pied Piper.

[cyberbub] 28/7/2020 19:31

Remember that Goldmans often do exactly the opposite of what they say publicly! But perhaps they have really gone long gold this time??

[lottsgold] 28/7/2020 19:18

Look at the grades, jurisdiction and exploration upside. Then look at the main investors and their track record. Totally different story to AAU.

[soulsauce] 28/7/2020 19:12

Lol. A lot of commentators are saying PMs are going to be volatile for a bit but it's eventually going higher. Not a time to be wobbling on gold.

[pauliewonder] 28/7/2020 19:10

Completely agree. Gold is wobbling up another 15.00 as we speak

[bigglesbingham] 28/7/2020 19:05

Prove action was more to do with his recommendation to top slice at 5p!!! Gold wobbles my backside

[konil] 28/7/2020 18:59

o/t

i picked up on some of the other companies mentioned on the bb recently and started looking at pur.

initial look suggests it has about twice as much resource as aau and won't be producing until q4 2020. i haven't looked at its debt position yet, but any info welcome.

what i don't get is why it is valued at c.8 times what aau is?

any ideas please?

(i'm posting this here because i'm interested in a comparison with aau - it looks way overvalued by comparison - but its more likely i have missed something as i've just started looking at it.)

[uknighted] 28/7/2020 18:14

Sampler from Shareprophets article. Does anyone have access to the full article?

Ariana Resources – FY19 results show great promise

By NIGEL SOMERVILLE
Don’t be fooled by the muted share price reaction to this morning’s FY19 results from AIM-listed Turkish gold-producer Ariana Resources (AAU) – that is more to do with the wobbles in the gold market overnight after the gold price shot up towards $2000 per oz and now it looks a little like the correction I was concerned about is starting to hit. Ariana’s FY19 numbers are excellent, but more to the point, with the gold price much higher than it was last year there is plenty to read between the lines...

[mattjos] 28/7/2020 17:42

Goldman Sachs raise their 12-month Gold price target today from $2,000/oz to $2,300/oz and silver from $22/oz to $30/oz.

[thanksamillion] 28/7/2020 17:29

P/E

The 6x mentioned in the AR is based on a lower share price than current one.
profit at £6.9m

at 5p SP, P/E=7.5 approx.

Still lots to play for tho

[ironstorm] 28/7/2020 16:42

Fabulous results - very happy here with my largest portfolio holding by a country mile.

Gold looking very choppy at these levels so price volatility to be expected. However new JV not too far away - along with a delightful divi. Think the floor on these is 4.4p now. Not sure where the short term upside might be but at 6 x earnings maybe a third higher. Not to mention Tavsan, Cyprus, etc. . . .

Longer term someone was asking where it might get to - I shall consider my position at 20p.

[risa5] 28/7/2020 16:24

Don't forget gold was down $30 this morning, most goldies are down today.

[crossfirecssf] 28/7/2020 16:17

The 'real' results up-day was yesterday, when everyone that needed to know, got to know. Sounds cynical, but that's just the way it goes around here. Merely my opinion of course...

[pauliewonder] 28/7/2020 16:05

Gold now positive and motoring ahead again. Going to attack 2000 this week at this rate. Can't believe this is going to be a down day for us. These very good results are retrospective and based on a substantially lower gold price. The penny will drop at some point

[uknighted] 28/7/2020 15:32

Proactive Investors:
“ Ariana Resources* (LON:AAU) 4.9p, Mkt Cap £53.0m – 2019 Results show threefold rise in after-tax profit Ariana Resources reports an after-tax profit of £6.98m for the calendar year 2019 (2018 – £2.18m). A combination of “favourable gold prices” and increased production from the 50% owned Red Rabbit joint-venture drove a 21% rise in turnover to £35.3m (2018 £29.3m). Describing the outlook for 2020 faced by the challenges posed by Covid19 and the volatility of commodity prices, Ariana Resources says that “Operationally we are well-positioned to take advantage of these unusual circumstances” with supportive national and local governments and the joint venture mine at Kiziltepe “continuing to produce gold and silver at high margins due to the low-cost operating environment”. With “sufficient cash-flow to satisfy our operational requirements” Ariana Resources “has created opportunities to diversify and make new investments, such as Venus Minerals” where Ariana is investing €2.4m in Cypriot exploration over the next 3 years in order to earn a 50% interest. Conclusion: Ariana Minerals is benefitting from increased production and low costs at Kiziltepe and today reports increased profits in 2019 of almost £7m. *An share price Angel mining analyst has visited Ariana’s licenses in Turkey”

[plasybryn] 28/7/2020 14:59

It was interesting to see the impact in the accounts of silver production up 73% from $3.4m revenue to $5.9m. Production increased by 50% . Just imagine the contribution from silver credits this year if the price holds up. The price of silver is up c. 37% in the last 6 months alone. Over the same period gold is up circa 24%

[soulsauce] 28/7/2020 14:56

Cheers Plasybryn & Ash.

[plasybryn] 28/7/2020 14:41

Informative post from the resident qualified Accountant ASH on LSE. He agreed I could copy it across.
Excellent set of results and way better than I anticipated. Having taken a look, it seems to me that there has been a re-jig of the mine amortisation policy - presumably they have increased the resource on which it is based in line with the increased resource at Kiziltepe, which has resulted in a significantly lower level of amortisation charge than the previous year £1.26m v £7.46m (you need to look at the JV balance sheet to pick up the reduction in the mine asset value - clever bit of accounting that has boosted profit by deferring amortisation costs into the future.
I am also surprised at how low the tax charge is, given that it is normally a flat rate of 20%, but that may just be my not knowing exactly how the incentives work as I had assumed that the relief was only on the first £16m of profit, equating to 50% of the initial mine investment. I just wish the JV numbers were less opaque with more notes to explain.
However, onwards and upwards.
Cheers, Ash

[1candc] 28/7/2020 14:35

Good update out from SP

'.......So 6p next call, then 7.5p – and it will be even more ouzo if we see 10p, perhaps even within 12 months'