Ariana Resources Share Discussion Threads

[charles clore] 12/8/2020 16:07

Nov31 - yes the deal is described in US dollars so sorry for any confusion. It works out to 50 million US for 53% of Zenit to be split between AAU and Proccea, then an additional 5 million US to AAU for Ozaltin to buy into Salinbas, plus Proccea's Salinbas buy-in stake which will take it well over 30m US so probably 30m+ GBP in total.

Summary of Transaction

Further to the Memorandum of Understanding ("MoU)" announced on the 25 November 2019, Ariana intends to partially dispose various interests held in Turkey to Özaltin, including jointly with Proccea, 53% of Zenit for US$50 million (to be split equally by Ariana and Proccea), as well as an initial 17% of the Salinbas Project for US$5 million. In addition, Özaltin commits to injecting a further US$8 million of equity into the Salinbas Project in order to acquire 53% of the project. It is envisaged Özaltin will ultimately hold 53% of Zenit, with Ariana and Proccea each holding 23.5% and that the Salinbas Project ultimately will be acquired by Zenit, such that the respective shareholdings do not change. Further information in respect of this part of the transaction will be provided in due course. The Company also intends to seek approval from Shareholders for the transaction as soon as practically possible.

[thanksamillion] 12/8/2020 14:54

Additionally the cash amount is not fixed yet, Proccea's contribution for a 24% stake in Salinbas has not yet been announced and may well be in cash.

[nov31] 12/8/2020 14:48

Biggles/CC - $30m or £30m? Both notable but one worth more than the other.
Think its the former, but can either of you confirm?

[bigglesbingham] 12/8/2020 13:25

Ok ultra cautious ha ha

[bmnsa] 12/8/2020 13:22

For a very Hot day
Old News to refresh the parts other shares fail to reach


AAU
Results released in July 2020 showed profits in 2019 at just under £7mln.

The impressive performance resulted in Ariana's JV at Kiziltepe fully paying off its US$33mln capital loan to build the mine in April.

Since then, it has also taken a 9.2% stake in Venus Minerals, an explorer focused on copper-gold projects on the island of Cyprus.

In the second quarter of the current year, Kiziltepe in Turkey produced 4,679 ounces, down from 5,129 ounces but in line with guidance issued for the half-year.

July also saw a 50% increase in the size of the resource at Ariana's Salinbas project.

The total amount of gold at the 100%-owned project is now estimated at 1.5mln ounces (Moz), up from 1mln previously, and split between two licences – Salinbas and Ardala.

In addition, there has been a significant upgrade in the classification of the resource at Salinbas, said Ariana, with 35% now in the measured (11%) and indicated (24%) categories.

What’s next
The company has forecast that 2020 gold production at its Kiziltepe mine will be around 30% above its feasibility plan for this stage of the operational mine life.

The firm said gold production for the year will be around 18,000 ounces of gold with an average grade expected to be at 2.5 grams per tonne.

Throughput to the mill, meanwhile, is expected to be around 205,000 tonnes, a 37% increase over the feasibility plan.

[charles clore] 12/8/2020 13:14

Hi biggles I think I'm being realistic. We already have a company trading on a p/e of 5. Which imho is already too cheap for a miner operating in a pm bull market. In addition the deal will give us another 30m GBP and make way for a special dividend of possibly 0.5p a share. Further to that we get free carry on development of the 1.5m ounce project Salinbas plus several other juicy titbits in the pipeline with one of the best CEOs in the business. What's not to like?

[bigglesbingham] 12/8/2020 12:55

Don't dispute that but you know I've always been conservative rather than ramp and try to base comments on conservative fundamentals. But 10p with a sailing wind is not beyond the realms of possibility imho.

[lhoskins] 12/8/2020 12:50

I've also bought more. Too good an opportunity to miss.

[charles clore] 12/8/2020 12:17

Biggles - I think the shares could go to 10p on the back of the JV, the £30m cash, which incidentally now sits at 60% of the current market cap, and the PM strength.

[bigglesbingham] 12/8/2020 11:57

Added again as I can't see this less than 7p on the signing of deal receipt of $30m plus dollars and dividend policy In place.

[crossfirecssf] 12/8/2020 10:01

A good healthy correction in both PMs and AAU. They are a necessary as the up-moves, and serve to cool some foreheads. I topped up yesterday at 5.17 and though probably could have waited longer, am happy given human frailties. Portfolio down some £10k on the week, but not going to get cute. Buy on the pullbacks as best you can and try not to blink first, hard as that seems.

Fundamentally, with AAU, and with PMs, we hold all the Aces. Just don't second guess yourself. (I'm talking to myself here ... again). GLTA

[1candc] 12/8/2020 09:59

rennlks2016 - excellent post which articulates the share price action here, once the clear out completes the momentum will return with an additional strengthened LTH base who have fully researched the prospects that exist here in depth

[thanksamillion] 12/8/2020 09:25

1987 again only in gold.

[cool hand kev] 12/8/2020 09:23

Gold recovering quickly :-) This is just a blip IMO

[pauliewonder] 12/8/2020 09:22

Gold and silver now performing strongly. Fantastic margins at these levels.

[thanksamillion] 12/8/2020 09:15

I am ignoring todays drop showing on the chart, I had a little top-up earlier at 5.049 and the latest buys are at 5.05/5.09, gold recovering.

[renniks2016] 12/8/2020 07:51

Banks needed this correction desperately to closed out shorts without being fried. I must admit that I thought this would retrace to $1800-1850 region, but still could do. They now go long, and need to buy huge amounts of bullion to cover unallocated tickets.
AAU share price rise in last three months is primarily on fundamentals, cracking news flow and not POG but short term holders riding the first wave of bull run, don’t research company and buy in on sector, and consequently get out on same reason, allowing LTH S to buy on dip, thanks guys as they say, pays to do your research.

[jaf1948] 12/8/2020 07:46

There are plenty of political threads on the internet. Please keep to matters about AAU on here.

[pauliewonder] 12/8/2020 07:18

Recession figures out. Gold and silver recovering. Probably go positive soon like other precious metals

[pauliewonder] 12/8/2020 07:11

It's a correction that's all. Wouldn't be surprised to see it blue today although realistically it could be tomorrow. ETFs shutting long positions most likely. Gold has had a good run, but it will bounce back for sure

[kirbs4] 12/8/2020 07:05

Gold price really tanking! Feels more than just a dip on the way up. Could be another red day across the goldies.