TIDMAAU
RNS Number : 7026B
Ariana Resources PLC
06 June 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
06 June 2023
AIM: AAU
FINAL AUDITED RESULTS FOR THE YEARED 31 DECEMBER 2022
NOTICE OF ANNUAL GENERAL MEETING ("AGM")
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
mineral exploration and development company with gold mining
interests in Europe, announces its final audited results for the
year ended 31 December 2022.
The Report and Accounts will be posted to shareholders as
applicable and are available on the Company's website .
In accordance with Rule 20 of the AIM Rules, Ariana Resources
confirms that the annual report and accounts for the year ended 31
December 2022 and notice of the Annual General Meeting ("AGM") and
related proxy form will be available to view on the Company's
website on 06 June 2023 and will be posted to shareholders. The AGM
will be held on 29 June 2023, at 10.30 a.m. at East India Club, 16
St James's Square, London, SW1Y 4LH.
Chairman's Statement
In looking forward to the next financial year and beyond, it is
worth highlighting Ariana's transformation over the past 20 years
from a grassroots gold explorer to an international
multi-commodity, multi-region explorer and developer, funded via
successful mining operations. Over this period, and specifically
since achieving profitability in 2016, we have created a
self-sustaining, cash positive, debt free business model, which
allows us to leverage our strengths to grow our business.
This reshaping of our business is occurring against a tipping
point in the world economy. Multiple factors are contributing to a
'perfect storm' in demand for precious and technology metals. The
key factors are the banking crisis, the Ukraine war, the demand for
metals for the de-carbonisation of energy, and the ever increasing
gap between the rate of discovery and demand for mineral resources
in general. Against this backdrop, central bank purchases of gold
are at their highest for 50 years; in 2022 central bank gold
reserves increased by 1,136 tonnes, whilst their foreign reserves
decreased by US$ 950 billion. A clear message can be discerned in
these changes. Unlike fiat currencies created by central bank
printing, gold is a fundamentally different and immutable store of
value, with no counterparty risk and finite supply. Unsurprisingly,
gold spot prices have recently topped US$2,000 per ounce three
times in recent years. At the recent Mining Indaba in Cape Town
several contributors noted that 'animal spirits' have consequently
returned to the precious metals mining industry.
Adding fuel to this situation, international consultancy
McKinsey warned recently that: "We need to double the exploration
effort if we are to avert the looming reserve crisis." McKinsey
also noted that the industry needs to invest in people and to "get
serious about science". These two guiding principles have been
fundamental since our inception and we are confident that our
investors continue to be beneficiaries of our wholehearted emphasis
on our team and the use of cutting-edge technologies. Furthermore,
McKinsey stated that "geology comes first", noting that this
concept had gone somewhat out of fashion, leading to failed
projects and loss of investor confidence. Ariana has always been
driven by geology from the top down; we have always understood that
geological expertise in exploration, resource targeting, definition
and estimation is the difference between success and failure. Given
the looming crisis in the world's mineral reserves, it is vital
that companies like Ariana continue to spearhead the discovery of
precious and technology metals within our framework of technology
leadership, environmentally responsible conduct and robust
governance.
A measure of a successful company is the way in which it meets
such market needs. Hence our clear focus on precious and technology
metals to meet the challenges presented by this financial backdrop,
the energy revolution and the chronic exploration deficit. We also
recognise that investor needs must be addressed in terms of
profitability, opportunity growth, sustainability, robust
governance and risk management. We aim to ensure our exploration
and production costs are industry leading, our project pipeline is
growing, we remain profitable with competent governance, and we
mitigate risks by diversifying across commodities and regions.
Since 2021 we have been able to pay GBP7.74m dividends to
shareholders, which is an extraordinary milestone for any
exploration company.
Shareholder value has been enhanced by sourcing the majority of
our development finance through joint venture partner investment.
Company management has also been enhanced through these
collaborative relationships significantly complementing Ariana's in
house experience. A valuable by-product of being an exploration
company since our inception is that we had to implement effective
remote working from the field and dispersed project offices decades
ago. As this working method was part of our doctrine from the
outset, we were able to thrive for the duration of the recent
pandemic, which proved disruptive to so many other businesses. This
continues to be a valuable approach to growing an accessible pool
of new talent for our industry.
Against a shifting and challenging macroeconomic background, we
believe every crisis is an opportunity. We also believe we have
pivoted Ariana to leverage our competitive advantages over a wider
commodity range and geographical reach. A key differentiator is
that Ariana is a technology-led and data-driven business, enabling
us to achieve industry leading discovery and production costs.
Approaching business decision-making with a doctrine of quality
data at the centre of every investment has ultimately resulted in a
diversified growth path with unique projects in our portfolio.
These significant strategic developments have now positioned us
even more powerfully as an innovative and agile explorer and
developer, able to optimise the opportunities of rising global
demand for precious and technology metals.
Our investments in cutting-edge technologies and processes,
combined with highly skilled staff, are critical to Ariana's
success. Indeed, we have chosen to continue investing further in
these areas and in addition to our own internal competency, we seek
to encourage those of the next generation of industry leaders. Our
strong links with several universities and our sponsorship of
research programmes, notably at the University of Western
Australia, also ensures we remain at the forefront of advanced
geological research. Additionally, we have regularly sponsored
student summer internships, with almost half our geoscientific team
having been derived from such programmes.
Added to these developments it is important to highlight the
progress in many other project areas over the past year. All these
project areas are managed within the framework of our commitment to
socially conscious and environmentally responsible development. We
are focusing our efforts within countries committed to using green
energy and we use solar and geothermal energy systems in our own
offices. Our own carbon emissions are less than half the global
average for our industry. We are involved in extensive
re-forestation programmes in all our operational areas, including
the voluntary planting of new trees and re-wilding programmes
through charitable organisations. We are actively involved with
local communities, especially supporting local educational
institutions.
In western Türkiye at the Kiziltepe gold mine we have seen a
record year, with 50% more gold produced to date than planned in
the Feasibility Study. This mine is operated by Zenit Madencilik, a
partnership in which Ariana has a 23.5% stake with partners Proccea
Construction Co. and Ozaltin Holding A.S. Production at Kiziltepe
has consistently beaten guidance since 2017, with annual production
up to 28,000 ounces of gold per annum and a total revenue of US$235
million to the end of December 2022. Also in western Türkiye, Zenit
Madencilik is currently constructing its second gold mine at Tav
an, which contains a JORC Resource of 307,000 ounces of gold. The
construction is currently being financed by Zenit without the
encumbrance of bank debt. Post-period end construction had been
temporarily suspended owing to a local court ruling, although we
are expecting construction operations to recommence later this
year.
In eastern Türkiye at our Salinbas/Ardala project we are highly
encouraged by the progress of our recent extensive drilling
programme. The 1.5Moz gold Salinbas/Ardala system is a porphyry and
epithermal deposit containing gold, silver, copper and molybdenum.
This project is situated in the highly prospective Artvin
Goldfield, containing the 4Moz Hot Maden project 16 km to the
south. Last year we separately initiated Project Leopard across
eastern Türkiye. The project aims to expand our reach into new
search spaces across three under-explored yet highly prospective
volcanic arcs in a region estimated to contain 40Moz gold. For this
project Ariana has deployed its Project Generation Division, with
our in-house specialists in remote sensing, geophysics and
geochemistry. This gives us high quality, rapid and cost-effective
results, as none of these processes are outsourced to consultants.
Our ability to deploy these expert in-house teams allows us to
deliver results faster, better and cheaper than many of our peers;
our US$11 per ounce discovery cost is proof of this excellence. We
have great expectations for this team which was responsible for
identifying the potential of the Gulluce licence area.
In Cyprus, Ariana is working with Venus Minerals to develop near
term and advanced copper-gold projects. Ariana has a 58%* stake in
Venus Minerals and we are working with our partners Semarang
Enterprises on an IPO for Venus. Our Magellan Project contains some
17 million tonnes at 0.45-1.10% copper with associated gold. Our
investment in Venus is significant given the scale of the impending
world copper supply deficit against rising demand for copper used
in alternative energy production. Elsewhere in south-eastern
Europe, we have entered into a five-year exploration partnership
with Newmont Corporation targeting Tier 1 copper-gold resources. We
established Western Tethyan Resources (WTR) which is 75% held by
Ariana, with the remainder held by an expert board with regional
specialisation. Newmont invested US$2.5 million in Ariana to
develop the WTR initiative and provided joint-ownership of the
Eastern Europe Newmont exploration database.
On a broader geographic scale Ariana's wholly-owned subsidiary,
Asgard Metals is focused on investments in discovery-stage
opportunities. We use our well-defined selection process to
identify high prospectivity projects in low cost/risk
jurisdictions, where there are sound environmental policies. This
approach has worked successfully for Ariana, as it has delivered a
100 times value increase in some of our prior investments. Our
current work with Panther Metals Ltd is an example of the way
Asgard is operating. Working in parallel with the Panther team we
have supported the discovery of a major nickel-cobalt project at
Coglia in Western Australia. These developments highlight our focus
on what we consider to be the sweet spot for Ariana's growth. This
is the inflexion point between greenfield discovery and
development, where we can act as a project catalyst by bringing to
bear our geological expertise and cutting-edge technologies.
Ariana has travelled a long way from its foundation over 20
years ago. The team has put in the hard yards to win the respect of
its major shareholders, industry partners, academic institutions,
technology suppliers, government organisations and local
communities. Alongside our geological expertise, each one of these
relationships has been critical to Ariana's success. From the
springboard of our technologies and our team we are confident we
are now ready to drive further and faster towards the discovery of
significant Tier 1 resources across an international stage.
The Board looks forward to welcoming shareholders at our next
Annual General Meeting where we will conduct the formal business of
the meeting outlined in the Notice of Meeting. I would like to
encourage shareholders to exercise their proxy votes in favour of
these resolutions even if you are planning to attend the
meeting.
Last but not least, I would like to sign off by thanking our
excellent team and stakeholders and in particular those new to the
Ariana family, all of whom have contributed to the Ariana success
story.
* Post-period end.
Michael de Villiers
Chairman
05 June 2023
Financial Review
The Consolidated Statement of Comprehensive Income sets out our
very satisfactory results for the year, reflecting the success of
the group on a number of fronts. Overall the Group has recorded a
profit before tax for the year to December 2022 of GBP5.0m. This
was GBP2.7m less than 2021, albeit that year benefited from the
profit of GBP6.4m on the part disposal of our Turkish interests.
Administrative costs increased only marginally on the prior year,
though as explained in note 4a, we have benefited from an exchange
gain of GBP2.8m arising on our US dollar cash balances this year,
resulting in a reduction to GBP0.6m as reported in the Statement.
Otherwise the principal driver of our performance has been the
increase in our net share of the profit and losses of our
Associated investments, which increased by GBP1.5m over the prior
year. Once again the decline in value of the Turkish Lira has meant
that we are showing an accounting loss through Other Comprehensive
Income primarily on the translation of our opening balances of our
overseas subsidiaries at closing rates of exchange. These losses
are not realised unless we divest ourselves of such assets.
The Consolidated Statement of Financial Position reflects the
increase in the value of our share of our Associates, up from
GBP11.4m to GBP15.3m in 2022, as set out in note 6. The main change
was in the value of Zenit, in part reflecting the fact there was no
dividend received this year, as funds were directed at developing
Tav an. Another major change this year is the decline in cash
balances from GBP16.4m to GBP9.4m, comprising dividends paid by the
Company to shareholders amounting to GBP4m during the year as part
of the special dividend arising on last year's part disposal of our
interests, and also an increase in tax payable in Turkey of GBP1.9m
due to corporation tax changing to becoming payable in advance
there. A final point worthy of note is the transfer of GBP7.2m from
the Capital Reduction Reserve to boost Retained Earnings, and
facilitate dividend payments in future years.
Overall the Group has made great progress and the financial
results reflect that performance, and our strong financial position
gives us the platform to continue our development at pace.
Outlook
2022 marked the 20(th) anniversary of the foundation of the
Company. We enjoyed the opportunity to celebrate this significant
event with our long-term and supportive shareholders, advisors,
friends and relatives in London in July. Subsequently, in Türkiye,
we were also able to formally open our own dedicated Head Office in
Ankara, surrounded by our fantastic team.
Operationally with Zenit, the Company had its most successful
year to date, achieving record gold production and revenue from its
Turkish mine, coupled with the most drilling ever completed across
three simultaneous campaigns at Kiziltepe, Tav an and Salinbas. The
year also marked the commencement of construction at the Tav an
mine site in July, which will lead to the development of Zenit's
second gold mining operation in Türkiye.
Following the strategic investment of US$2.5 million into the
Company by Newmont Mining Corporation in March, we were pleased to
see the grant of the first four exploration licences in Kosovo,
coupled post-period end with the grant of the first Project Leopard
exploration licences in Eastern Türkiye. These events mark the
commencement of new grassroots exploration for major copper-gold
systems across the Tethyan Metallogenic Belt, in poorly explored
areas known to host multi-million ounce gold deposits. This
represents one of the core strands of our strategy; to pick up good
ground cost-effectively and to build value incrementally and
organically within the Company over time.
In Australia, our nascent discovery fund, Asgard Metals,
achieved a number of milestones of its own. In addition to
completing three substantial investments, it also established a
trading account through which it may participate in corporate
offers or trade securities on the ASX market. Meanwhile, our
technical team has contributed to the exploration programmes of our
investee companies across a variety of jurisdictions, but perhaps
most notably in Western Australia, where a substantial
nickel-cobalt JORC Resource Estimate of 70.6Mt at 0.7% Ni + 460ppm
Co was established for Panther Metals Limited.
Of course, not everything can go our way or in the manner
originally intended. Notably our intention to list Venus Minerals
on AIM did not happen as planned during the year. While we had made
arrangements for an IPO in June, the markets took a turn for the
worse and we decided to postpone the launch. Poor market conditions
have unfortunately prevailed for the remainder of the year and have
only continued to deteriorate during 2023. However, this did not
phase us, as it enabled the opportunity to increase our holding in
Venus, making it a subsidiary, and we look forward to continuing to
incubate and advance its Cypriot copper-gold portfolio
accordingly.
Lastly, we were very pleased to pay the last tranche of our
Special Dividend to shareholders in October, thus completing on a
process which we had initiated in late 2019. Accordingly, we have
come to view this moment as the closure of the first chapter in the
life of Ariana, having successfully brought our most advanced
projects in Türkiye to the point of providing very meaningful
returns to our shareholders. We are now on the hunt for new
projects on the international stage which may be developed in
similar ways, to ensure that further returns may continue to be
paid well in the future.
We are resolutely focused on upscaling the Company by pursuing
bold objectives. In particular we are keen to advance on larger
projects capable of supporting the Company on its journey towards
becoming a mid-tier mine developer. As part of this process, we are
going to pursue support from investors from further afield and will
be marketing the Company accordingly. In parallel with this we are
undertaking several project and jurisdictional reviews with the aim
of securing a significant new flagship asset around which the
future of the Company may continue to be built.
Over the years we have developed a unique skill-set, rarely seen
in a company of our size. We have the capacity to undertake
exploration and development projects from the grassroots stage all
the way through to mine development and production. Our in-house
team comprises individuals with backgrounds in every geoscientific
discipline relevant to mineral exploration and mine development,
with the expertise to take projects through to Feasibility Study
level. We recognise this as being where the true value of the
Company lies. We will be drawing on these skills to draw the
maximum value out of the opportunities already available to us but
also to create new opportunities capable of catapulting the Company
into the next decade and towards a higher level of market
recognition.
We invite shareholders to join us on the next chapter of our
journey and welcome their ongoing support.
Dr Kerim Sener
Managing Director
05 June 2023
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2022
Continuing operations Note 2022 2021
GBP'000 GBP'000
--------------------------------------------- ----- --------- ---------
Administrative costs (net of exchange
gains) 4a (555) (2,917)
General exploration expenditure (181) (67)
--------------------------------------------- ----- --------- ---------
Operating loss 4b (736) (2,984)
--------------------------------------------- ----- --------- ---------
Profit on restructuring of group activities 5 - 6,423
Share of profit of associate accounted
for using the equity method 6c 6,010 4,260
Share of loss of associate accounted
for using the equity method 6b (551) (213)
Other income 159 -
Investment income 135 202
--------------------------------------------- ----- --------- ---------
Profit before tax 5,017 7,688
--------------------------------------------- ----- --------- ---------
Taxation 8 (987) (3,832)
--------------------------------------------- ----- --------- ---------
Profit for the year from continuing
operations 4,030 3,856
--------------------------------------------- ----- --------- ---------
Earnings per share (pence) attributable
to equity holders of the company
Basic and diluted 10 0.36 0.36
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss:
Exchange differences on translating
foreign operations (3,504) (2,948)
Other comprehensive loss for the year
net of income tax (3,504) (2,948)
--------------------------------------------- ----- --------- ---------
Total comprehensive profit for the
year 526 908
--------------------------------------------- ----- --------- ---------
The accompanying notes form part of these financial
statements.
Consolidated Statement of Financial Position
For the year ended 31 December 2022
Note 2022 2021
GBP'000 GBP'000
---------------------------------------- ----- --------- ---------
Assets
Non-current assets
Trade and other receivables 16 414 815
Financial assets at fair value through
profit or loss 13 639 461
Intangible assets 11 130 149
Land, property, plant and equipment 12 461 238
Investment in associates accounted for
using the equity method 6 15,317 11,402
Exploration expenditure 14a 199 -
Earn-In advances 14b 87 -
---------------------------------------- ----- --------- ---------
Total non-current assets 17,247 13,065
---------------------------------------- ----- --------- ---------
Current assets
---------------------------------------- ----- --------- ---------
Trade and other receivables 17 1,280 1,136
Cash and cash equivalents 9,375 16,389
Total current assets 10,655 17,525
---------------------------------------- ----- --------- ---------
Total assets 27,902 30,590
---------------------------------------- ----- --------- ---------
Equity
Called up share capital 19 1,147 1,097
Share premium 19 2,207 305
Capital reduction reserve 19 - 7,222
Other reserves 720 720
Share based payments 19 - 173
Translation reserve (11,682) (8,178)
Retained earnings 34,666 27,160
---------------------------------------- ----- --------- ---------
Total equity attributable to equity
holders of the parent 27,058 28,499
---------------------------------------- ----- --------- ---------
Non-controlling interest 30 30
---------------------------------------- ----- --------- ---------
Total equity 27,088 28,529
---------------------------------------- ----- --------- ---------
Liabilities
Current liabilities
Trade and other payables 18 814 2,061
Total current liabilities 814 2,061
---------------------------------------- ----- --------- ---------
Total equity and liabilities 27,902 30,590
---------------------------------------- ----- --------- ---------
The financial statements were approved by the Board of Directors
and authorised for issue on 5 June 2023.
They were signed on its behalf by:
M J de Villiers
Chairman
A.K.Sener
Managing Director
Registered number: 05403426
The accompanying notes form part of these financial
statements.
Company Statement of Financial Position
For the year ended 31 December 2022
Note 2022 2021
GBP'000 GBP'000
--------------------------------------- ----- --------- ---------
Assets
Non-current assets
Trade and other receivables 16 3,850 5,942
Investments in group undertakings 15 377 377
Investment in associate accounted for
using the equity method 6 2,612 2,612
Total non-current assets 6,839 8,931
--------------------------------------- ----- --------- ---------
Current assets
Trade and other receivables 17 540 132
Cash and cash equivalents - -
--------------------------------------- ----- --------- ---------
Total current assets 540 132
--------------------------------------- ----- --------- ---------
Total assets 7,379 9,063
--------------------------------------- ----- --------- ---------
Equity
Called up share capital 19 1,147 1,097
Share premium 19 2,207 305
Capital reduction reserve 19 - 7,222
Share based payments reserve 19 - 173
Retained earnings 3,886 34
--------------------------------------- ----- --------- ---------
Total equity 7,240 8,831
--------------------------------------- ----- --------- ---------
Liabilities
Current liabilities
Trade and other payables 18 139 232
--------------------------------------- ----- --------- ---------
Total current liabilities 139 232
--------------------------------------- ----- --------- ---------
Total equity and liabilities 7,379 9,063
--------------------------------------- ----- --------- ---------
The financial statements were approved by the Board of Directors
and authorised for issue on 5 June 2023.
They were signed on its behalf by:
M J de Villiers
Chairman
A.K.Sener
Managing Director
Registered number: 05403426
The accompanying notes form part of these financial
statements.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022
Share Share Other Share Capital Translation Retained Total Non- Total
capital premium reserves based reduction reserve earnings attributable controlling GBP'000
GBP'000 GBP'000 GBP'000 payments reserve GBP'000 GBP'000 to equity interest
reserve GBP'000 holders GBP'000
GBP'000 of parent
GBP'000
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Changes in
equity to
31 December
2021
Balance at
1 January
2021 6.070 12,053 720 307 - (9,617) 17,164 26,697 - 26,697
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Profit for
the year - - - - - - 3,856 3,856 - 3,856
Other
comprehensive
income - - - - - (2,948) - (2,948) - (2,948)
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Total
comprehensive
income - - - - - (2,948) 3,856 908 - 908
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Issue of
ordinary
shares 22 305 - - - - - 327 - 327
Court order
-
reduction
in capital (4,995) (12,053) - - 7,222 - 9,826 - - -
Dividend paid
to
shareholders - - - - - - (3,820) (3,820) - (3,820)
Recycle of
translation
losses - - - - - 4,387 - 4,387 - 4,387
Transactions
between
shareholders - - - - - - - - 30 30
Transfer
between
reserves - - - (134) - - 134 - - -
Transactions
with owners (4,973) (11,748) - (134) 7,222 4,387 6,140 894 30 924
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Balance at
31 December
2021 1,097 305 720 173 7,222 (8,178) 27,160 28,499 30 28,529
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Changes in
equity to
31 December
2022
Profit for
the year - - - - - - 4,030 4,030 - 4,030
Other
comprehensive
income - - - - - (3,504) - (3,504) - (3,504)
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Total
comprehensive
income - - - - - (3,504) 4,030 526 - 526
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Issue of
ordinary
shares 50 1,902 - - - - - 1,952 - 1,952
Dividend paid
to
shareholders - - - - - - (3,919) (3,919) - (3,919)
Transfer
between
reserves - - - (173) (7,222) - 7,395 - - -
Transactions
with owners 50 1,902 - (173) (7,222) - 3,476 (1,967) - (1,967)
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
Balance at
31 December
2022 1,147 2,207 720 - - (11,682) 34,666 27,058 30 27,088
-------------- ------- -------- -------- -------- --------- ----------- -------- ------------ ----------- -------
The accompanying notes form part of these financial
statements
Company Statement of Changes in Equity
For the year ended 31 December 2022
Share Share Capital Share Retained Total
capital premium reduction based earnings GBP'000
GBP'000 GBP'000 Reserve payments GBP'000
GBP'000 reserve
GBP'000
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Changes in equity to
31 December 2021
Balance at 1 January 2021 6,070 12,053 - 307 (9,826) 8,604
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Profit for the year - - - - 3,720 3,720
Other comprehensive income - - - - - -
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Total comprehensive income - - - - 3.720 3,720
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Issue of ordinary shares 22 305 - - - 327
Court order - reduction in capital (4,995) (12,053) 7,222 - 9,826 -
Dividend paid to shareholders - - - - (3,820) (3,820)
Transfer between reserves - - - (134) 134 -
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Transactions with owners (4,973) (11,748) 7,222 (134) 6,140 (3,493)
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Balance at 31 December 2021 1,097 305 7,222 173 34 8,831
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Changes in equity to
31 December 2022
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Profit for the year - - - - 376 376
Other comprehensive income - - - - - -
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Total comprehensive income - - - - 376 376
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Issue of ordinary shares 50 1,902 - - - 1,952
Dividend paid to shareholders - - - - (3,919) (3,919)
Transfer between reserves - - (7,222) (173) 7,395 -
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Transactions with owners 50 1,902 (7,222) (173) 3,476 (1,967)
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
Balance at 31 December 2022 1,147 2,207 - - 3,886 7,240
------------------------------------ --------- --------- ----------- ---------- ---------- ----------
The accompanying notes form part of these financial
statements.
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
2022 2021
GBP'000 GBP'000
---------------------------------------------------- --------- ---------
Cash flows from operating activities
Profit for the year 4,030 3,856
Adjustments for:
Profit on restructuring of group activities - (6,423)
Depreciation of non-current assets 93 44
Share of profit in equity accounted associate (6,010) (4,260)
Share of loss in equity accounted associate 551 213
Investment income (135) (202)
Income tax expense 987 3,832
---------------------------------------------------- --------- ---------
(484) (2,940)
Movement in working capital
(increase)/decrease in trade and other receivables (361) 62
(Decrease)/increase in trade and other payables 46 (271)
---------------------------------------------------- --------- ---------
Cash (outflow)/inflow from operating activities (799) (3,149)
Taxation paid (1,882) (2,923)
---------------------------------------------------- --------- ---------
Net cash (used in)/generated from operating
activities (2,681) (6,072)
---------------------------------------------------- --------- ---------
Cash flows from investing activities
Earn-In Advances (87) (1,406)
Purchase of land, property, plant and equipment (333) (241)
Payments for intangible and exploration assets (199) -
Proceeds from restructuring of group activities - 28,951
Purchase of associate investment - (4,139)
Purchase of financial assets at fair value
through profit or loss (155) (461)
Loan granted to associate (500) -
Dividends from associate - 705
Investment income 135 202
---------------------------------------------------- --------- ---------
Net cash generated from/ (used in) investing
activities (1,139) 23,611
---------------------------------------------------- --------- ---------
Cash flows from financing activities
Issue of share capital 1,952 326
Proceeds from non-controlling interest - 30
Payment of shareholder dividend (excluding
uncashed) (4,022) (3,689)
---------------------------------------------------- --------- ---------
Net cash (used in)/generated from financing
activities (2,070) (3,333)
---------------------------------------------------- --------- ---------
Net (decrease)/increase in cash and cash
equivalents (5,890) 14,206
Cash and cash equivalents at beginning of
year 16,389 2,978
Exchange adjustment on cash and cash equivalents (1,124) (795)
---------------------------------------------------- --------- ---------
Cash and cash equivalents at end of year 9,375 16,389
---------------------------------------------------- --------- ---------
The accompanying notes form part of these financial
statements.
Selected Notes to the Consolidated Financial Statements for the
year ended 31 December 2022
1. General Information
Ariana Resources PLC (the "Company") is a public limited company
incorporated, domiciled and registered in the UK. The registered
number is 05403426 and the registered address is 2nd Floor, Regis
House, 45 King William Street, London, EC4R 9AN.
The Company's shares are listed on the Alternative Investment
Market of the London Stock Exchange. The principal activities of
the Company and its subsidiaries (together the "Group") are related
to the exploration for and development of gold and
technology-metals, principally in south-eastern Europe.
The consolidated financial statements are presented in Pounds
Sterling (GBP), which is the parent company's functional and
presentation currency, and all values are rounded to the nearest
thousand except where otherwise indicated. The financial
information has been prepared on the historical cost basis modified
to include revaluation to fair value of certain financial
instruments and the recognition of net assets acquired including
contingent liabilities assumed through business combinations at
their fair value on the acquisition date modified by the
revaluation of certain items, as stated in the accounting
policies.
Basis of Preparation
The Group financial statements have been prepared and approved
by the Directors in accordance with UK-adopted International
Accounting Standards and effective for the Group's reporting for
the year ended 31 December 2022.
The separate financial statements of the Company are presented
as required by the Companies Act 2006. As permitted by that Act,
the separate financial statements have been prepared in accordance
with UK-adopted International Accounting Standards. These financial
statements have been prepared under the historical cost convention
(except for financial assets at FVOCI) and the accounting policies
have been applied consistently throughout the period.
Going Concern
These financial statements have been prepared on the going
concern basis.
The Directors are mindful that there is an ongoing need to
monitor overheads and costs associated with delivering on its
strategy and certain exploration programmes being undertaken across
its portfolio. The Group is not expecting to raise additional
capital at this time, but may do so to support its strategy and
specific activities on occasion. The Group has no bank facilities
and has been meeting its working capital requirements from cash
resources. At the year end the Group had cash and cash equivalents
amounting to GBP9.375 million (2021: GBP16.389 million).
The Directors have prepared cash flow forecasts for the Group
for the period to 30 September 2024 based on their assessment of
the prospects of the Group's operations. The cash flow forecasts
include expected future cash flows from our equity accounted
associates along with the normal operating costs for the Group over
the period together with the discretionary and non-discretionary
exploration and development expenditure.
The forecasts indicate that on the basis of existing cash and
other resources, and expected future dividend payments from Zenit,
the Group will have adequate resources to meet all its expected
obligations in delivering its work programme for the forthcoming
year.
In preparing these financial statements the Directors have given
consideration to the above matters and on this basis they believe
that it remains appropriate to prepare the financial statements on
a going concern basis.
4. Administrative costs & Operating loss
4a. Administrative costs amounting to GBP555,000 are stated
after exceptional exchange gains amounting to GBP2.8m, these
primarily arising in the group's wholly owned subsidiary Galata
Mineral Madencilik San. ve Tic. A.S. ("Galata"), mainly due to the
strengthening of the US dollar against the Turkish Lira. On
retranslation into Galata's functional currency, US dollar
denominated assets held by Galata, including bank and trade
receivables, resulted in an uplift to those Lira asset valuations
and a corresponding exchange gain for the year to 31 December
2022.
4b . The operating loss is stated after
charging/(crediting):
2022 2021
GBP'000 GBP'000
----------------------------------------------------- --------- ---------
Depreciation and amortisation - owned assets 93 44
Office lease rentals 8 12
Exceptional exchange (gain) in Türkiye (2,821) -
Net foreign exchange losses/(gains) 156 (75)
Fees payable to the Company's auditor for the
audit of the Group's and Company's annual accounts 50 50
Fees payable to the Company's auditor for other
services:
- The audit of the Company's subsidiaries 25 25
----------------------------------------------------- --------- ---------
5. Profit on restructuring of group activities
During the prior year, the Group concluded its restructuring
programme. This comprised the part-disposal of its interest in
Zenit Madencilik San. ve Tic. A.S. ("Zenit") and Pontid Madencilik
San. ve Tic. A.S. ("Pontid") to Ozaltin Insaat, Ticaret and Sanayi
A.S. ("Ozaltin") and Proccea Construction Co ("Proccea") for a
total consideration of US$35.75m. Under the terms of the Pontid
sale agreement and during the year, Ozaltin completed its equity
commitment to invest a further US$8m in the development of the
Salinba project. A further US$2m is to be paid in instalments to
the Group by Zenit following the transfer of the three remaining
satellite projects held by the Group's wholly owned subsidiary,
Galata Mineral Madencilik San. ve Tic. A.S.
2022 2021
GBP'000 GBP'000
------------------------------------------------ ---------- ---------
Disposal proceeds receivable (net of group
transactions)
Less:- - 26,976
Cost of Investment and other incidental costs
incurred on disposal - (4,684)
Reversal of fair value transactions associated
with the Salinba acquisition - (9,466)
Increase in valuation of associate following
acquisition - 2,197
Reduction in valuation of JV following part
disposal (excluding translation losses) - (4,234)
Recycled translation losses - (4,386)
------------------------------------------------ ---------- ---------
Profit on restructuring of Group's activities - 6,423
------------------------------------------------ ---------- ---------
6. Equity accounted Investments
The Group and Company's investments comprise the following:
-
Associates and joint ventures Note Group Company Group Company
companies 2022 2022 2021 2021
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ----- --------- --------- --------- ---------
Associate Interest in
Pontid Madencilik San.
ve Tic. A.S. ("Pontid") 6a 4,139 - 4,139 -
Associate Interest in
Venus Minerals Ltd ("Venus") 6b 1,848 2,612 2,399 2,612
Associate Interest in
Zenit Madencilik San.
ve Tic. A.S. ("Zenit") 6c 9,330 - 4,864 -
Carrying amount of investment
at 31 December 15,317 2,612 11,402 2,612
------------------------------- ----- --------- --------- --------- ---------
6a Associate Interest in Pontid.
Following the disposal in the prior year by Greater Pontides
Exploration B.V. (holding company) of its entire interest in Pontid
Madencilik San. ve Tic. A.S. ("Pontid") to Ozaltin Holding A.S and
Proccea Construction Co., the Group reinvested US$5.75m for a 23.5%
shareholding in Pontid. This investment is currently valued at
GBP4.139m and represents the Group's share of Pontid's net assets
and goodwill paid on acquisition. Since the date of acquisition,
Pontid continues to benefit from new capital funding into its
Salinba project.
Financial information based on Pontid's translated financial
statements, and reconciliations with the carrying amount of the
investment in the consolidated financial statements are set out
below
Statement of financial position 2022 2021
As at 31 December 2022 GBP'000 GBP'000
----------------------------------------------- --------- ---------
Assets
Non-current assets
Other receivables 14 10
Intangible exploration assets 2,006 1,120
Land, property, plant and machinery 69 96
----------------------------------------------- --------- ---------
Total non-current assets 2,089 1,226
----------------------------------------------- --------- ---------
Current assets
Trade and other receivables 337 86
Cash and cash equivalents 4,377 5,230
----------------------------------------------- --------- ---------
Total current assets 4.714 5,316
----------------------------------------------- --------- ---------
Total assets 6,803 6,542
----------------------------------------------- --------- ---------
Current liabilities
Other payables 131 229
----------------------------------------------- --------- ---------
Total current liabilities 131 229
----------------------------------------------- --------- ---------
Equity 6,672 6,313
Proportion of the Group's ownership 23.5% 23.5%
Share of net assets per above analysis 1,568 1,483
Goodwill on acquisition and share of interest
post acquisition 2,571 2,656
----------------------------------------------- --------- ---------
Carrying amount of investment in Pontid 4,139 4,139
----------------------------------------------- --------- ---------
6b Share of loss of associate interest in Venus Minerals Ltd
The Company and group acquired 50% of Venus Minerals Ltd through
an earn-in agreement on 5 November 2021.
The Group accounts for its associate interest in Venus Minerals
Ltd using the equity method in accordance with IAS 28 (revised).
The results set out below includes the Group`s share of loss for
the year to 31 December 2022.
Group Company Group Company
2022 2022 2021 2021
GBP'000 GBP'000 GBP`000 GBP`000
--------------------------------- ----------- ----------- ----------- -----------
Equity Equity Equity Equity
accounted accounted accounted accounted
Associate Associate Associate Associate
interest interest interest interest
--------------------------------- ----------- ----------- ----------- -----------
At 1 January 2022 2,399 2,612 2,612 2,612
Share of loss since significant
influence recognised by
Group (551) - (213) -
--------------------------------- ----------- ----------- ----------- -----------
At 31 December 2022 1,848 2,612 2,399 2,612
--------------------------------- ----------- ----------- ----------- -----------
6c Share of profit of associate interest in Zenit
The Group accounts for its associate interest in Zenit using the
equity method in accordance with IAS 28 (revised). In prior years
Zenit was also accounted for using the equity method of accounting,
albeit the company was then classified as a joint venture, until
part disposal by the Group in February 2021. At 31 December 2022
the Group has a 23.5% interest in Zenit, and profits from Zenit are
shared in the ratio of 23.5% the Group, 23.5% Proccea and the
remaining 53% interest to Ozaltin Holding A.S.
Zenit was incorporated in, and has its principal place of
business in Ankara, Türkiye.
Financial information based on Zenit's translated financial
statements, and reconciliations with the carrying amount of the
investment in the consolidated financial statements are set out
below:
Statement of Comprehensive Income 2022 2021
For the year ended 31 December 2022 GBP'000 GBP'000
------------------------------------------------- --------- ---------
Revenue 47,489 32,784
Cost of sales (26,244) (14,586)
------------------------------------------------- --------- ---------
Gross Profit 21,245 18,198
Administrative expenses (555) (2,344)
------------------------------------------------- --------- ---------
Operating profit 20,690 15,854
------------------------------------------------- --------- ---------
Other income - 124
Finance expenses including foreign exchange
losses (1,102) (1,171)
Finance income including foreign exchange gains 4,728 5,213
------------------------------------------------- --------- ---------
Profit before tax 24,316 20,020
Taxation (credit) / charge 1,259 (1,890)
------------------------------------------------- --------- ---------
Profit for the year 25,575 18,130
Proportion of the Group's profit share 23.5% 23.5%
------------------------------------------------- --------- ---------
Group's share of profit for the year 6,010 4,260
------------------------------------------------- --------- ---------
6c Share of profit of interest in associate in Zenit
Statement of financial position 2022 2021
As at 31 December 2022 GBP'000 GBP'000
------------------------------------------------------ --------- ---------
Assets
Non-current assets
Other receivables and deferred tax asset 6,287 295
Intangible exploration assets 50 70
Kiziltepe Gold Mine (including capitalised
mining costs, land, property, plant, and equipment) 12,889 15,804
Tav an construction in progress 4,709 -
------------------------------------------------------ --------- ---------
Total non-current assets 23,935 16,169
------------------------------------------------------ --------- ---------
Current assets
Trade and other receivables 281 650
Inventories 3,424 2,033
Other receivables, VAT and prepayments 5,345 2,521
Cash and cash equivalents 15,420 6,680
------------------------------------------------------- -------- ---------
Total current assets 24,470 11,884
------------------------------------------------------- -------- ---------
Total assets 48,405 28,053
------------------------------------------------------- -------- ---------
Liabilities
Non-current liabilities
Borrowings - 412
Deferred tax - 367
Asset retirement obligation 582 616
------------------------------------------------------- -------- ---------
Total non-current liabilities 582 1,395
------------------------------------------------------- -------- ---------
Current liabilities
Borrowings 361 884
Trade payables 3,345 1,406
Other payables 4,415 3,671
------------------------------------------------------- -------- ---------
Total current liabilities 8,121 5,961
------------------------------------------------------- -------- ---------
Total liabilities 8,703 7,356
------------------------------------------------------- -------- ---------
Equity 39,702 20,697
Proportion of the Group's ownership 23.5% 23.5%
------------------------------------------------------- -------- ---------
Carrying amount of investment in associate 9,330 4,864
------------------------------------------------------- -------- ---------
Movement in Equity - our share
Opening balance 4,864 11,213
Profit for the year 6,010 4,260
Part disposal of Interest - (5,943)
Translation and other reserves (1,544) (3,613)
Dividend receivable - (1,053)
------------------------------------------------------- -------- ---------
Closing balance 9,330 4,864
------------------------------------------------------- -------- ---------
9. Profit and distributable reserves of parent Company
(a) Profit of parent company
As permitted by Section 408 of the Companies Act 2006, the
statement of comprehensive income of the parent Company is not
presented as part of these financial statements. The parent
Company's Profit for the financial year was GBP376,000 (2021:
GBP3,720,000).
(b) Distributable reserves of parent company
The Company paid its first shareholder inaugural special
dividend on 24 September 2021 amounting to GBP3,820,873. To
facilitate this distribution the Company gained shareholder
approval during February 2021 and applied to the High Court of
Justice of England and Wales to reduce its share capital. This
application was granted by the High Court during July 2021 and the
share capital reduction scheme resulted in generating distributable
reserves of GBP7.22m, as set out in the Company's Statement of
Changes in Equity and note 19.
(c) Dividends
A second interim and third final part of the inaugural special
dividend distribution was paid out of distributable reserves. The
second interim payment on the 11(th) March 2022 of 0.175 pence per
ordinary share amounted to GBP1,919,186; the third and final
payment on the 21(st) September 2022 of 0.175 pence per ordinary
share amounted to GBP2,000,010.
10. Earnings per share on continuing operations
The calculation of basic profit per share is based on the profit
attributable to ordinary shareholders of GBP4,030,000 (2021:
GBP3,856,000) divided by the weighted average number of shares in
issue during the year being shares 1,133,043,081 (2021:
1,085,894,966). There is no material effect on the basic earnings
per share for the dilution provided by the share options.
13. Financial assets at fair value through profit or loss
Group and Company Group
2022
GBP'000
--------------------- ---------
At 1 January 2022 461
Addition 155
Exchange movement 23
--------------------- ---------
At 31 December 2022 639
--------------------- ---------
Carrying value
At 31 December 2021 461
--------------------- ---------
At 31 December 2022 639
--------------------- ---------
During the year, the Group's wholly owned subsidiary, Asgard
Metals Pty. Ltd., continued with its investment strategy, and
further investments during the year amounted to GBP155,000. The
market valuation of listed securities at the balance sheet date
amounted to GBP202,000, compared to a carrying valuation of
GBP217,000 (level 1 hierarchy). This immaterial fall in valuation
amounting to GBP15,000 has not been reflected in the statement of
comprehensive income.
Unlisted securities, where fair value cannot be reliably
measured, continue to be valued at cost and amounted to GBP422,000
(level 3 hierarchy) at the balance sheet date.
16. Non-current other receivables
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ --------- ---------- --------- ----------
Amounts owed by Group undertakings - - 3,850 5,942
------------------------------------ --------- ---------- --------- ----------
Amounts owed by associate
interest 414 815 - -
------------------------------------ --------- ---------- --------- ----------
414 815 3,850 5,942
------------------------------------ --------- ---------- --------- ----------
The amount owed to the Group relate to an instalment based
interest free loan agreed upon following the disposal by Galata of
its three remaining satellite projects to Zenit at a rate of
US$50,000 per calendar month. The directors have assessed that the
future fair value return on settlement of this debt is not
materially different from the carrying value shown above.
17. Trade and other receivables
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- --------- ---------- --------- ----------
Other receivables 155 219 29 132
Amounts owed by associate
interest 497 792 - -
Loan to associate interest 500 - 511 -
Prepayments 128 125 - -
---------------------------- --------- ---------- --------- ----------
1,280 1,136 540 132
---------------------------- --------- ---------- --------- ----------
The carrying values of other receivables and amounts owed by
associate interest approximate their fair values as these balances
are expected to be cash settled in the near future.
During September 2022, a convertible loan agreement was entered
into with Venus Minerals Limited amounting to GBP500,000.
Post-period end a further convertible loan agreement was completed
with Venus for GBP200,000.
18. Trade and other payables
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ --------- --------- --------- ---------
Trade and other payables 189 203 102 94
Social security and other
taxes 355 1,380 - -
Other creditors and advances 137 343 29 132
Accruals and deferred income 133 135 8 6
------------------------------ --------- --------- --------- ---------
814 2,061 139 232
------------------------------ --------- --------- --------- ---------
The above listed payables are all unsecured. Due to the
short-term nature of current payables, their carrying values
approximate their fair value.
19. Called up share capital, share premium and capital reduction
reserve
Allotted, issued and fully Number Ordinary Share Capital
paid ordinary 0.1p shares Shares Premium reduction
GBP'000 GBP'000 reserve
GBP'000
-------------------------------- -------------- --------- --------- -----------
In issue at 1 January
2022 1,096,677,943 1,097 305 7,222
Issue of ordinary shares 46,185,387 46 1,843 -
Share options exercised 3,500,000 4 59 -
Transfer to retained earnings - - - (7,222)
-------------------------------- -------------- --------- --------- -----------
In issue at 31 December
2022 1,146,363,330 1,147 2,207 -
-------------------------------- -------------- --------- --------- -----------
During the prior year, the Company was granted permission by the
High Court of Justice in England and Wales to reduce its share
capital by the cancellation of its share premium and its
sub-divided deferred shares. This allowed the Company to extinguish
retained losses bought forward from prior years amounting to
GBP9,826,000 and resulted in the establishment of a capital
reduction reserve. This distributable reserve was subsequently
transferred to retained earnings during 2022.
22. Contingent liabilities
Following the restructuring of the Group and the part disposal
by Galata Mineral Madencilik San. ve Tic. A.S. of 26.5% of its
interest in Zenit Madencilik San. ve Tic. A.S., 75% of the
resulting gain on disposal is exempt from Turkish corporation tax
provided the gain is retained under equity by Galata for a period
of 5 years. This potentially exempt taxable gain, including the
previously reported gain during 2019 on Çamyol Gayrimenkul,
Madencilik, Turizm, Tarim ve Hayvancilik Ltd ("Camyol") is as
follows:
Contracting Shareholding Taxable gain Contingent Contingent Liability
parties in Lira liability in in GBP
Lira
------------- ------------- ------------- -------------- ---------------------
Galata 26.5% 127,766,456 31,941,614 1,414,761
Çamyol 99% 4,529,343 996,455 44,135
------------- ------------- ------------- -------------- ---------------------
24. Post year end events
In April 2023 the loan of GBP500,000 outstanding at the year end
from Venus Minerals Limited was capitalised, along with an
additional loan of GBP200,000 increasing the Group's shareholding
in that company to 58%. The assessment of the fair values of the
assets and liabilities acquired is currently ongoing, and will be
reported in the Group's next available financial statements.
Note to the announcement
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 December 2022 or
year ended 31 December 2021, but is derived from those accounts.
Statutory accounts for 2021 have been delivered to the Registrar of
Companies and those for 2022 on which the auditors have provided an
unqualified report will be delivered following the AGM.
Contacts:
Ariana Resources plc Tel: +44 (0) 20 3476 2080
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited (Nominated Tel: +44 (0) 20 7628 3396
Adviser)
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
(Joint Broker)
John Prior / Hugh Rich / Atholl
Tweedie
WHIreland Limited (Joint Broker) Tel: +44 (0) 207 2201666
Harry Ansell / Katy Mitchell
/ George Krokos
Yellow Jersey PR Limited (Financial arianaresources@yellowjerseypr.com
PR) Tel: +44 (0) 7983 521 488
Dom Barretto / Shivantha Thambirajah
/
Bessie Elliot
Editors' Note:
The information in this announcement that relates to exploration
results is based on information compiled by Dr. Kerim Sener BSc
(Hons), MSc, PhD, Managing Director of Ariana Resources plc. Dr.
Sener is a Fellow of The Geological Society of London and a Member
of The Institute of Materials, Minerals and Mining and has
sufficient experience relevant to the styles of mineralisation and
type of deposit under consideration and to the activity that has
been undertaken to qualify as a Competent Person as defined by the
2012 edition of the Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code)
and under the AIM Rules - Note for Mining and Oil & Gas
Companies. Dr. Sener consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
About Ariana Resources:
Ariana is an AIM-listed mineral exploration and development
company with an exceptional track-record of creating value for its
shareholders through its interests in active mining projects and
investments in exploration companies. Its current interests include
gold production in Turkey and copper-gold exploration and
development projects in Cyprus and Kosovo.
The Company holds 23.5% interest in Zenit Madencilik San. ve
Tic. A.S. a joint venture with Ozaltin Holding A.S. and Proccea
Construction Co. in Turkey which contains a depleted total of c.
2.1 million ounces of gold and other metals (as at February 2022).
The joint venture comprises the Kiziltepe Mine and the Tavsan and
Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and
contains a depleted JORC Measured, Indicated and Inferred Resource
of 222,000 ounces gold and 3.8 million ounces silver (as at
February 2022). The mine has been in pro table production since
2017 and is expected to produce at a rate of c.20,000 ounces of
gold per annum to at least the mid-2020s. A Net Smelter Return
("NSR") royalty of 2.5% on production is being paid to
Franco-Nevada Corporation.
The Tavsan Gold Mine is located in western Turkey and contains a
JORC Measured, Indicated and Inferred Resource of 307,000 ounces
gold and 1.1 million million ounces silver (as at November 2022).
Following the approval of its Environmental Impact Assessment and
associated permitting, Tavsan is being developed as the second gold
mining operation in Turkey. Construction progress is temporarily
suspended pending the outcome of a local court decision pertaining
to the EIA. A NSR royalty of up to 2% on future production is
payable to Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey and
contains a JORC Measured, Indicated and Inferred Resource of 1.5
million ounces of gold (as at July 2020). It is located within the
multi-million ounce Artvin Gold eld, which contains the "Hot Gold
Corridor" comprising several signi cant gold- copper projects
including the 4 million ounce Hot Maden project, which lies 16km to
the south of Salinbas. A NSR royalty of up to 2% on future
production is payable to Eldorado Gold Corporation.
Ariana owns 100% of Australia-registered Asgard Metals Fund
("Asgard"), as part of the Company's proprietary Project Catalyst
Strategy. The Fund is focused on investments in high-value
potential, discovery-stage mineral exploration companies located
across the Eastern Hemisphere and within easy reach of Ariana's
operational hubs in Australia, Turkey and the UK.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd
("WTR"), which operates across south-eastern Europe and is based in
Pristina, Republic of Kosovo. The company is targeting its
exploration on major copper-gold deposits across the
porphyry-epithermal transition. WTR is being funded through a
ve-year Alliance Agreement with Newmont Corporation (
www.newmont.com ) and is separately earning-in to 85% of the
Slivova Gold Project.
Ariana owns 58% of UK-registered Venus Minerals Ltd ("Venus")
which is focused on the exploration and development of copper-gold
assets in Cyprus which contain a combined JORC Indicated and
Inferred Resource of 17Mt @ 0.45% to 1.10% copper (excluding
additional gold, silver and zinc.
Panmure Gordon (UK) Limited and WH Ireland Limited are brokers
to the Company and Beaumont Cornish Limited is the Company's
Nominated Adviser.
For further information on Ariana, you are invited to visit the
Company's website at www.arianaresources.com .
Ends.
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END
FR EASKSELDDEFA
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