REG - Ariana Resources PLC - INTERIM RESULTS
30/09/2021 07:00
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RNS Number : 4667N Ariana Resources PLC 30 September 2021
30 September 2021
AIM: AAU
INTERIM RESULTS
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with interests in gold mining operations
in Europe, is pleased to announce its unaudited interim results for the six
months ended 30 June 2021.
Financial Highlights:
· Ariana's share of profits from the Kiziltepe Mine, part of Zenit
Madencilik San. ve Tic. A.S. ("Zenit"), in the six months to June 2021 amount
to £1.3m (H1 2020 £3.0m), due in part to the reduction in holding from 50%
to 23.5%.
· Profit before tax of £7.1m (H1 2020 £2.2m) recorded for the
period, with operating costs in line with expectations and the prior year.
· Profit for the period of £5.0m (H1 2020: £1.9m) reflects the
profit realised on restructuring of group activities.
· Payment of first dividend of £3.8m to shareholders post-period
end, amounting to 0.35p per share, following capital reorganisation completed
during the period.
Operational Highlights:
· Completion of transformational deal valued in aggregate at
US$70.75 million* in cash with Ozaltin Holding A.S. and Proccea Construction
Co. concerning Zenit and other assets in Turkey; Ariana's share reduced to
23.5%.
· Commencement of exploration in Eastern Europe via 75% held
Western Tethyan Resources Ltd. and drilling commenced in Cyprus via the
Company's interest in Venus Minerals Ltd.
· Earn-in on Venus Minerals Ltd. has currently reached 37.5%, with
50% expected to be achieved in early Q4 2021.
· Kiziltepe Mine production for H1 2021 achieved 7,941 ounces of
gold (H1 2020: 9,808 oz Au) with guidance for 2021 expected to be met by year
end, following increased mill throughput after the completion of the process
plant expansion.
· Final Zenit working capital loan repayment of US$0.8m to Turkiye
Finans Katilim Bankasi A.S due to be completed post-period end in October
2021.
· An exploration and resource drilling campaign has completed
approximately 14,000m of diamond drilling across the Kiziltepe Sector, with
excellent results received across various vein systems.
* Ariana and Proccea each received US$25 million from Ozaltin, reducing their
respective holdings in Zenit by 26.5% each. Ariana separately received US$5
million from Ozaltin and US$5.75 million from Proccea for a reduction in its
holding in the Salinbas Project. In addition, Ozaltin injected US$8 million
in new capital into the Salinbas Project. Ariana is separately receiving a
total payment of US$2 million via instalments for the sale of its Satellite
Projects in Turkey to Zenit.
Michael de Villiers, Chairman, commented:
"The first half of 2021 began with significant momentum as the Company
embarked on a transformational new venture alongside Ozaltin Holding A.S. and
Proccea Construction Co. This collaboration underscores Ariana's successful
strategy of creating value whilst mitigating business risks, even in the most
challenging of times. The partnership has also enabled Ariana to reward
valued shareholders with the first dividend payment in its history. Apart from
the monetisation of a substantial portion the Company's project balance sheet,
the transaction has also enabled the team to be deployed to exploration and
project initiatives across a much broader theatre of operations. These are
outlined in more detail below.
"Despite the challenges faced through the coronavirus pandemic, our mining
operations have continued relatively unhindered. The Kiziltepe Mine
continues to produce on target against its plan. Meanwhile its future growth
has been secured through the completion of extensive plant expansion work and
an associated significant new resource and exploration drilling programme. In
addition, there has been steady progress on both the Tavsan and Salinbas
projects all of which underpins further development scheduled for later this
year.
"While the pandemic continues to place limitations on physical travel, we have
come to terms with the fact that we will all have to live with some form of
restrictions for some time to come and adapt our business model accordingly.
This has prompted innovative ways of working which have been embraced and used
highly effectively by our dispersed teams. The increasing demand for greener
technologies and lesser environmental impact further reinforces Ariana's
initiative towards a strategy of broader target selection across both new
geographies and commodities. Consequently, we are in the process of developing
a wider stream of projects and exploration initiatives which we intend to
announce as and when they are developed; after all we do not want others to
"steal a march".
"Once again, I would like to take this opportunity to thank both the Ariana
team and our partners for their steadfast efforts during these challenging
times; they have once again achieved outstanding results. It has been very
gratifying to be able to pay our shareholders such a substantial dividend
after 16 years of commitment and investment. To conclude on the best point,
there is much more to come."
Management Statement
Ariana Resources represents a well-established exploration and development
enterprise, which has operated successfully since 2002, initially as a private
business, then as a public company since 2005. While its focus for the best
part of almost two decades has been its highly successful exploration strategy
for gold in Turkey, in recent years and in parallel with demonstrable
operational capability, the Company has "spread its wings" into other
territories in the region, notably Cyprus and Kosovo. However, as stated in
our 2020 Annual Report, it is the intention of the Company to remain flexible
to new opportunities that may be generated across the Eastern Hemisphere; a
strategy that is now spearheaded formally by the Asgard Metals Fund.
The Company has demonstrated an enviable track-record of mineral discovery and
resource growth at minimal cost to its shareholders. This is evidenced most
tangibly in our discovery cost per ounce of gold which is currently running at
US$12/oz and which is about five times lower than the global industry
average. In addition, through a methodical and carefully executed strategy,
project development costs across our portfolio, amounting to £24.4m, were and
are being borne by our project partners, rather than our shareholders since
2010. The consequence of this was our very modest requirement for working
capital from investors, which on average amounted to about £1.2m per annum
over a period of 15 years until we brought our external funding requirements
to a close in 2017; coinciding with the commencement of commercial production
from our first gold and silver mine at Kiziltepe.
The Kiziltepe Mine, and in some sense more importantly, our enhanced
operations in Turkey with Ozaltin Holding A.S. and Proccea Construction Co.
represents the back-bone of our business. We are substantially strengthened
by the skill sets and financial capabilities of our internationally reputable
partners, and we look forward to working with them collaboratively in the
years ahead to further build on our mining interests in Turkey and potentially
beyond. Taking recent developments at Kiziltepe as an example, we are
exceptionally pleased that Zenit is delivering a doubling of mill throughput
following the plant expansion programme, which was substantially completed in
August. Meanwhile, our major development projects at Tavsan and Salinbas are
advancing positively, with Tavsan expected to progress to final permitting
later this year, ahead of site preparation and construction start-up. At
Salinbas, final preparations are underway for the commencement of further
exploration and resource drilling before winter conditions set in.
This substantial progress is of course all backed-up and supported by an
exceptional team, which has recently been expanded to include additional
in-house geoscientists to support our geological team, including a geochemist
and geophysicist. Accordingly, the Company is now able to deliver on all of
its exploration programmes using its in-house specialists, across a full
spectrum of requirements from project generation, through to drilling and
evaluation, resource estimation and financial modelling to the level of a
Feasibility Study, without the requirement to use external consultants. This
is an approach most commonly associated with major companies and hence we are
one of very few junior explorers worldwide that has the capacity and long-term
strategic depth to build such in-house capabilities. Notably, we are very
pleased to have formally added Emeritus Professor David Groves to our Advisory
Team, who specialises in Global Mineral Systems and is a core member and
director of the Asgard Metals Fund.
We are also proud to have been able to establish a new office facility in
Ankara, held as an asset via freehold title, which will accommodate the
majority of our expanded Turkish team and is being customised to our specific
needs. Importantly, the facility will house our newly acquired Geotek
BoxScan unit and other hardware to enable the Company to complete most of its
geochemical and other analytical requirements entirely in-house. As part of
our deep commitment to the environment, this office facility is to be powered
by a solar electric system, which is due to be installed in the coming
months. Meanwhile our field facilities located in Sindirgi in western
Turkey, which are themselves geothermally heated, are in the process of being
upgraded to better provide for our future requirements. The Company is also
investing heavily in technologies to facilitate enhanced internal
communication, data management and processing across its operational hubs in
Australia, Turkey and the UK, in part to reduce the need for
environmentally-costly international travel. At the cutting-edge of this
will be a research programme to advance machine learning and artificial
intelligence systems and their routine integration into our future exploration
programmes.
While we are investing substantially into our future technical capacity and
our environmental and social licence to operate, we are also rooted in the
understanding that we are a business which exists for the benefit of its
investors. Accordingly, post-period end we were able to distribute the first
of three interim dividend payments, the first of which represents a dividend
yield of 7.6% following the distribution of £3.8 million to our long-standing
and supportive shareholders. In many ways, payment of our first dividend
marks the end of one era and the beginning of the next, as a newly invigorated
and highly dynamic exploration enterprise with global reach. In particular,
through the development of our Project Catalyst Strategy, we are focused on
realising value through our investments to create an additional pathway to the
distribution of future dividends.
We are now looking forward to celebrating our first 20-year anniversary as a
business in April 2022, which marks the date of our initial foundation in
Australia as Ariana Resources Pty. Ltd. We are planning a celebration to
mark this event, which will be conducted virtually and in-person in Perth.
We look forward to welcoming long-term supporters who have backed the Company
from our earliest days to collectively reflect on the progress and future path
of our business. Our world has changed fundamentally as a result of the
recent pandemic; more than anything it has brought into acute focus the
dichotomy of the ever-increasing demand for raw materials necessary to satiate
a growing global population, which itself is underpinned by the desire of
nations to continue with a growth-based economic model, poised against the
requirements of our degrading environment and the long-term welfare of
humanity. Ariana finds itself at the turn of this decade in a remarkable
position to execute its strategy to deliver on these requirements and to take
on a leadership role in the development of new technologies and methodologies
to ensure this dichotomy is addressed in a sensitive and fundamentally
practical manner.
As a business we are setting our sights on the next 20 years and we welcome
the support and interest of our shareholders in our future endeavours. The
best is yet to come!
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").
Ariana Resources Plc
Unaudited Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2021
Condensed consolidated statement of comprehensive income
Note 6 months to 30 June 2021 6 months to 30 June 2020 12 months to 31 December 2020
£'000
£'000
£'000
Administrative costs (net of exchange gains) (657) (782) (1,360)
General exploration expenditure - - (35)
Operating loss (657) (782) (1,395)
Profit on restructuring of group activities (4) 6,423 - -
Share of profit of associate accounted for using the equity method (5a) 1,265 - -
Share of profit of Joint Venture accounted for using the equity method (5a) - 3,010 6,478
Investment Income 80 2 7
Profit before tax 7,111 2,230 5,090
Taxation charge (7) (2,073) (282) (327)
Profit for the period 5,038 1,948 4,763
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations (1,503) (1,307) (3,647)
Other comprehensive (loss)/profit for the period (1,503) (1,307) 1,116
net of income tax
Total comprehensive profit for the period 3,535 641 5,209
Earnings per share (pence)
Basic (8) 0.47 0.18 0.45
Fully diluted 0.47 0.17 0.45
Condensed consolidated interim statement of financial position
30 June 30 June 31 December
2021 2020 2020
Note £'000 £'000 £'000
ASSETS
Non-current assets
Trade and other receivables 1,002 106 100
Intangible exploration assets (9) - 16,347 -
Intangible assets 159 177 168
Land, property, plant and equipment 193 59 41
Earn-in advances 1,731 808 1,206
Investment in Joint Venture accounted for using the equity method (5b) - 9,969 11,213
Equity accounted Investment in Zenit
Equity accounted Investment in Pontid (5b) 5,507 - -
(5c) 4,139 - -
Total non-current assets 12,731 27,466 12,728
Current assets
Trade and other receivables (10) 1,029 340 298
Cash and cash equivalents 22,434 2,342 2,978
Assets classified as held for sale - - 16,002
Total current assets 23,463 2,682 19,278
Total assets 36,194 30,148 32,006
EQUITY
Called up share capital (11) 6,079 6,054 6,070
Share premium (11) 12,184 11,821 12,053
Other reserves 720 720 720
Share based payments 230 409 307
Translation reserve (6,733) (7,277) (9,617)
Retained earnings 22,279 14,426 17,164
Total equity attributable to equity holders of the parent 34,759 25,973 26,697
Total equity 34,759 25,973 26,697
LIABILITIES
Non-Current Liabilities
Deferred tax Liability - 2,273 -
Other financial liabilities - 1,651 -
Total non-current liabilities - 3,924 -
Current liabilities
Trade and other payables 1,435 251 1,385
Liabilities directly associated with classified as held for sale - - 3,924
Total current liabilities 1,435 251 5,309
Total equity and liabilities 36,194 30,148 32,006
Condensed consolidated interim statement of changes in equity
Total
attributable
Trans- to equity
Share Share Other Share lation Retained holder of
capital Premium reserves Options reserves Earnings parent
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2020 6,054 11,821 720 364 (5,970) 12,298 25,287
Changes in equity to 30 June 2020
Profit for the period - - - - - 1,948 1,948
Other comprehensive income - - - - (1,307) - (1,307)
Total comprehensive income - - - - (1,307) 1,948 641
Share options - - - 45 - - 45
Transactions with owners - - - 45 - - 45
Balance at 30 June 2020 6,054 11,821 720 409 (7,277) 14,246 25,973
Changes in equity
to 31 December 2020
Profit for the period - - - - - 2,815 2,815
Other comprehensive income - - - - (2,336) - (2,336)
Total comprehensive income - - - - (2,336) 2,815 479
Issue of ordinary shares 16 232 - - - - 248
Share options - - - - - - -
Transfer between reserves - - - (102) - 102 -
Transactions with owners 16 232 - (102) - 102 248
Balance at 31 December 2020 6,070 12,053 720 307 (9,617) 17,164 26,697
Changes in equity
to 30 June 2021
Profit for the period - - - - - 5,038 5,038
Other comprehensive income - - - - (1,503) - (1,503)
Total comprehensive income - - - - (1,503) 5,038 3,535
Issue of ordinary shares 9 131 - - - - 140
Translation losses recycled on part disposal of group activities
- - - - 4,387 - 4,387
Transfer between reserves - - - (77) - 77 -
Transactions with owners 9 131 - (77) 4,387 77 4,527
Balance at 30 June 2021 6,079 12,184 720 230 (6,733) 22,279 34,759
Condensed consolidated Interim statement of cash flows
6 months to 6 months to 12 months to
30 June 30 June 31 December
2021 2020 2020
Cash flows from operating activities £`000 £`000 £`000
Profit for the year 5,038 1,948 4,763
Adjustments for:
Depreciation of non-current assets 10 11 20
Profit on restructuring (6,423) - -
Share of profit in Associate Interest (1,265) - -
Share of profit in Joint Venture - (3,010) (6,478)
Share based payments charge - 45 45
Investment income (80) (2) (7)
Income tax expense 2,073 282 327
Movement in working capital (647) (726) (1,330)
(Increase)/decrease in trade and other receivables (1,643) 3,419 3,056
(decrease)/increase in trade and other payables (1,402) (62) 1,021
Cash (outflow)/ inflow from operating activities (3,692) 2,631 2,747
Taxation paid (1,496) (282) (282)
Net cash from operating activities (5,188) 2,349 2,465
Cash flows from investing activities
Earn-In Advances (525) - (672)
Purchase of land, property, plant and equipment (161) (13) (3)
Payments for intangible assets - (166) (262)
Payments for other investments - (274) -
Dividends from Joint Venture - - 776
Proceeds from disposal of assets 25,468 - -
Investment income 80 2 7
Net cash generated/(used) in investing activities 24,862 (451) (154)
Cash flows from financing activities
Issue of share capital 140 - 248
Net increase in cash and cash equivalents 19,814 1,898 2,559
Cash and cash equivalents at beginning of period 2,978 453 453
Exchange adjustment (358) (9) (34)
Cash and cash equivalents at end of period 22,434 2,342 2,978
Notes to the interim financial statements for the six months ended 30 June
2021
1. General information
Ariana Resources Plc (the "Company") is a public limited company incorporated,
domiciled and registered in the U.K. The registration number is 05403426 and
the registered address is 2(nd) 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, with interests in mining operations
in Turkey.
2. Basis of preparation
The condensed interim financial statements have been prepared using accounting
policies consistent with International Financial Reporting Standards and in
accordance with International Accounting Standard 34 Interim Financial
Reporting. The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended 31
December 2020, which have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union.
The condensed interim financial statements set out above do not constitute
statutory accounts within the meaning of the Companies Act 2006. They have
been prepared on a going concern basis in accordance with the recognition and
measurement criteria of International Financial Reporting Standards (IFRS) as
adopted by the UK International accounting standards. Statutory financial
statements for the year ended 31 December 2020 were approved by the Board of
Directors on 13 July 2021.The financial information for the periods ended 30
June 2021 and 30 June 2020 are unaudited.
3. Significant accounting policies
The same accounting policies have been followed in these condensed interim
financial statements as were applied in the preparation of the Group's
financial statements for the year ended 31 December 2020.
The Group and Company financial statements have been prepared on a 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.
4. Profit on restructuring of group`s activities
During the period, 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. Ltd ("Pontid") to Ozaltin
Insaat, Ticaret and Sanayi A.S. ("Ozaltin") and Proccea Construction Co
("Proccea") for a total consideration of US$ 35.75m. Additional consideration
of US$2m is payable in instalments by Zenit following the transfer of the
three remaining satellite projects held by the Group`s wholly owned
subsidiary, Galata Madencilik San.ve Tic. Ltd ("Galata").
Under the terms of the Pontid sale agreement and during February 2021, Ozaltin
completed its equity commitment to invest a further US$ 8m in the development
of the Salinbas project.
30 June 2021
£`000
Disposal proceeds receivable (net of group transactions) 26,976
Less:-
Cost of Investment and other incidental costs incurred on disposal (4,684)
Reversal of fair value transactions associated with the Salinbas acquisition (9,446)
Increase in valuation of associate following acquisition 2,197
Reduction in valuation of JV following part disposal (excluding translation (4,234)
losses)
Elimination of translation losses following restructuring of group (4,386)
6,423
Profit on restructuring of group`s activities
5. Share of profit of associate interest in Zenit
The Group accounts for its associated interest in Zenit using the equity
method. During February 2021, the Group sold 26.5% of its existing 50%
shareholding in Zenit to Ozaltin Holding A.S. for a total consideration of
US$25m. As at 30 June 2021 the Group retained a 23.5% interest in Zenit. Prior
to the part-disposal, the Group`s interest in Zenit was accounted for as an
equally controlled joint venture.
Summarised financial information, based on Zenit`s translated financial
statements, and reconciliations with the carrying amount of the investment in
the consolidated financial statements are set out below:-
30 June 30 June 31 December
2021 2020 2020
(a) Summary statement of comprehensive income £'000 £'000 £'000
Revenue 11,860 14,301 29,145
Cost of sales (5,885) (7,051) (13,335)
Gross Profit 5,975 7,250 15,810
Other income - 359 -
Administrative expenses (938) (812) (1,750)
Operating profit 5,037 6,797 14,060
Finance expenses including foreign exchange losses (811) (1,584) (3,143)
Finance income including foreign exchange gains 1,281 756 2,262
5,969 13,179
Profit for the period before tax 5,507
Taxation credit/(charge) (124) 51 (223)
Profit for the period 5,383 6,020 12,956
Proportion of Group's profit share 23.5% 50% 50%
Group`s share of profit for the period 1,265 3,010 6,478
6 months to 6 months to 12 months to
30 June 30 June 31 December
2021 2020 2020
(b) Summary statement of financial position £'000 £'000 £'000
Non-current assets (including Kiziltepe Gold Mine) 21,493 22,886 20,731
Current assets 10,760 13,950 12,919
Current liabilities (6,866) (11,522) (8,174)
Non-current liabilities (1,955) (5,376) (3,050)
Equity 23,432 19,938 22,426
Proportion of Group's ownership 23.5% 50% 50%
Carrying amount of Investment in Associate 5,507 - -
Carrying amount of Investment in Joint Venture - 9,969 11,213
Method of accounting adopted Associate Joint Venture Joint Venture
5(c) Investment in associate
Following the disposal by Greater Pontid Exploration B.V. (holding company) of
its entire interest in Pontid Madencilik San.ve Tic Ltd ("Pontid") to Ozaltin
Holding A.S and Proccea Construction Co, the Group reinvested US$ 5.75m for a
23.5% shareholding in Pontid. This investment is currently valued at £4.139 m
and represents the Group's share of Pontid`s net assets amounting to £2.296m
and goodwill paid on acquisition of £1.843m.
6. Segmental analysis
Management currently identifies one division as an operating segment - mineral
exploration. This operating segment is monitored and strategic decisions are
made based upon this and other non-financial data collated from exploration
activities.
Principal activities for this operating segment are as follows:
Mining - incorporates the acquisition, exploration and development of gold
resources.
Other reconciling items - include non-mineral exploration costs and
transactions between Group and associate companies.
30 June 2021 30 June 2010 31 December 2020
Other Other Other
reconciling Reconciling reconciling
Mining items Group Mining Items Group Mining Items Group
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Administrative costs - (657) (657) - (782) (782) - (1,360) (1,360)
General exploration expenditure
- - - - - - (35) - (35)
Profit on restructuring
6,423 - 6,423 - - - - - -
Share of profit in associate
1,265 - 1,265 - - - - - -
Share of profit in Joint Venture
- - - 3,010 - 3,010 6,478 - 6,478
Investment income
- 80 80 - 2 2 - 7 7
Profit before taxation 7,688 (577) 7,111 3,010 (780) 2,230 6,443 (1,353) 5,090
Taxation charge (2,073) - (2,073) (282) - (282) (43) (284) (327)
Profit/(loss) after tax 5,615 (577) 5,038 2,728 (780) 1,948 6,400 (1,637) 4,763
Assets
Segment assets 23,563 12,631 36,194 28,886 1,262 30,148 29,937 2,069 32,006
Liabilities
Segment liabilities (861) (575) (1,436) (3,940) (235) (4,175) (5,056) (253) (5,309)
Reconciling items include non-mineral exploration costs and transactions
between Group and associate companies.
Geographical segments
The Group's mining assets and liabilities are located primarily in Turkey.
30 June 2021 30 June 2020 31 December 2020
United United United
Turkey Kingdom Group Turkey Kingdom Group Turkey Kingdom Group
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Carrying amount of segment non- current assets
10,840 1,891 12,731 26,479 987 27,466 11,353 1,375 12,728
7. Taxation
The Group had taxable profits for the period and a corporation tax charge is
anticipated during the year to 31(st) December 2021.
The charge reflected in these interim accounts is based on the following
transactions:-
30 June 2021 30 June 2020 31 December 2020
£'000
£'000 £'000
Taxation on disposal of part interest in JV with Zenit 1,725 - -
Withholding tax suffered on subsidiary dividends 348 282 284
Other adjustments - - 43
Tax charge for the period 2,073 282 327
8. Earnings per share on continuing operations
The calculation of basic profit per share is based on the profit attributable
to ordinary shareholders of £5,038,000 divided by the weighted average number
of shares in issue during the period, being 1,081,577,933.
9. Intangible exploration assets £'000
Six months ended 30 June 2020
Opening net book value at 1 January 2020 16,404
Additions 166
Exchange movements (223)
Closing net book value at 30 June 2020 16,347
Six months ended 31 December 2020
Opening net book value at 1 July 2020 16,347
Additions 97
Exchange movements (442)
Expenditure reclassified to assets held for sale (16,002)
Closing net book value at 31 December 2020 and 30(th) June 2021 -
10. Trade and other receivables 30 June 30 June 31 December
2021 2020 2020
£'000 £'000 £'000
Amounts owed by Associate Company 696 - -
Other receivables 225 214 183
Prepayments 108 126 115
1,029 340 298
The fair value of trade and other receivables is not materially different to
the carrying values present.
11. Called up share capital and share premium
Allotted, issued and fully paid 0.1p shares
Number Share Deferred Share
of shares Capital Shares Premium
£'000 £'000 £'000
In issue at 1 January 2020 1,059,677,953 1,059 4,995 11,821
Share options exercised to 31 December 2020 16,000,000 16 - 232
Share options exercised to 30 June 2021 9,000,000 9 - 131
In Issue at 30 June 2021 1,084,677,953 1,084 4,995 12,184
At 30 June 2021 the Company had 39,000,000 options and nil warrants
outstanding for the issue of ordinary shares.
12. Post period end events
(a) During July 2021 the Company was granted permission by the Court to reduce
its share capital by the cancellation of its share premium account and
historical deferred shares in issue.
(b) The Company paid the first part of its inaugural interim dividend of 0.35
pence per ordinary share on 24 September 2021.
(c) The second part of the inaugural interim dividend of 0.175 pence per
ordinary share is intended to be paid no later than the 31 March 2022.
(d) A third and final payment of the inaugural dividend of 0.175 pence per
ordinary share is intended to be paid at some point following the 2022 AGM.
13. Approval of interim financial statements
The interim financial statements were approved by the Board of Directors on 29
September 2021.
Contacts:
Ariana Resources plc Tel: +44 (0) 20 3476 2080
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 7951 402 336
Dom Barretto / Joe Burgess / Henry Wilkinson arianaresources@yellowjerseypr.com
Editors' Note:
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. 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 July
2020). Operations comprise 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 227,000 ounces gold
and 0.7 million ounces silver (as at April 2020). The mine has been in
profitable 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 Project is located in western Turkey and contains a JORC
Measured, Indicated and Inferred Resource of 253,000 ounces gold and 3.7
million ounces silver (as at June 2020). The project is being progressed
through permitting and an Environmental Impact Assessment, with the intention
of developing the site to become the second gold mining operation. 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
Goldfield, which contains the "Hot Gold Corridor" comprising several
significant 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 is currently earning-in to 75% of Western Tethyan Resources Ltd
("WTR"), which operates across 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.
Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus")
and has to date earned into an entitlement to 37.5%. Venus is focused on the
exploration and development of copper-gold assets in Cyprus which contain a
combined JORC Inferred Resource of 9.5Mt @ 0.65% copper (excluding additional
gold, silver and zinc).
Ariana operates its wholly-owned Asgard Metals Fund ("Asgard"), as part of the
Company's proprietary Project Catalyst Strategy. The Fund will be 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.
Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish
Limited is the Company's Nominated Adviser and Broker.
For further information on Ariana you are invited to visit the Company's
website at www.arianaresources.com (http://www.arianaresources.com) .
Ends.
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