Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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Van, Paul. Cant disagree with your words.
No one can complain about the SP, but not at the moment convinced there is much more to come in the short term unless POG/POS regains upwards momentum. The divi is a mixed blessing, for the investors it will just swap Capital Gains for income which may not be tax efficient as you cant dictate the timing of a divi payment.
Being a minority shareholder in the JV and dependence on one, relatively young, man also concerns me. People move on.
"meaning that the reduction in assets hurts more"
I suspect there was an agreement in place for many years prior which the market was not fully aware of. Part of Turkey are still tribal.
But John you can’t surely complain about the costs. Ariana is one of the lowest cost producers globally. Discovery costs are likewise in the lowest quartile. Short term fall in production and grade is as expected as we move on from Arzu South which has been compensated by higher gold and of course silver prices. Grades will again improve in line with the exciting discoveries being found at Kiziltepe. At the heart of it all, Kerim is proving himself to be an exceptional entrepreneur .
Errr. I still preferred that company as it was, a view that is reinforced by the fact that Gold is now at $1900 rather than $1500 meaning that the reduction in assets hurts more. In the opposite direction production has declined more than expected and costs risen faster than I expected so maybe AAU is getting a reasonable return from the assets ceded. Don't know but rest assured that one grumpy old voice will have no effect on the vote when it happens
Hi LoB, yes still here. Its been very quiet on LSE, as I don't think its a ramp fest on here as it is on ADVFN. I'm happy to keep hold and watch this grow slowly. I'm not too interested in the dividend as would prefer the SP to increase but it does seem a long way off as Tavsan (2022) and Salimbas will take years to come to fruition. Lets not talk about football at the moment. Nice to see the other LTH popping up this week.
Nice to see some of the long-time holders are still around (johnpwh, desertjoe, VanVan etc). Hope, too, that Claret and Blue is still here (and not too downbeat about Burnley's fairly chaotic start to the season.
As for dividends....I'd personally prefer not to have a large special divi but would rather the company sets out a more conservative approach with a commitment to a regular dividend policy (which might be more attract other (hopefully long-term) investors.
Pleased to hear you are still around John. The share price has moved a long way north since our Pizza Express lunch. And looks to have even bigger legs going forward imo. But are you still planning to vote against the Transaction, or perhaps have become slightly tempted to look forward to enjoying a nice bit of tax free income.
I'm still here. Just ran out of things to say!
Funny old time really, glad to see you are all ok
What with this Covid pandemic and if you believe the conspiracy theorists the possible financial crash, paying a dividend could be suicide especially if there is no other dividend to be paid at a later date. The dividend hunters will look for the next thing to pimp on and the sp may drop.
I want to hold here for at least a decade.
Hi John and nice to see you with a post on here again. I was somewhat concerned for you. The same is true for Raredragon who has also been absent after quite a regular flow. I am not sparring with Deano - clearly he does not support a divdend and I do.
Hi John, yes, I think you have raised some very relevant points. I was also a little disconcerted to read in the interims that the dividend paid back from Turkey was subject to withholding tax as I didn’t think this would be the case. It would be interesting to know the rate as any withholding tax on remitting of dividends back to AAU in order to pay the special dividend to shareholders could see a substantial chunk taken out of the available funds.
Not even sure there would be any double taxation relief, where there are no taxable profits due to b/fwd tax losses. Hopefully, they have this all worked out.
Cheers, Ash
Never thought I'd see the day when I agreed with PAUL1DEANO! Nice to see DJ still sparring with him!
I agree because its not sustainable. A one off divi raises expectations if a regular divi stream. Especially a large one off special that will give unplanned tax issues where shares aren't held in SIPP or ISA.
Going forward AAUs share in the only mining area likely to be producing for several years is reduced to 23.5% of a production that is much diminished compared to 2018 & 2019. AAUs share at 18000 oz pa is only a little over 4000 oz, albeit at a higher gold price (and sadly also higher costs). With commitments in Cyprus will there be any substantial regular dividend? Tavsan still seems a way off still, Salinbas 5 years plus?
A dividend rewards investors and encourages them to remain in the hope of further income. It also sends the SP up and could create a demand for placements if needed to expand.
Sorry I cannot support 1p dividend per share in any way shape or form.
I want it reinvested in the company and used to add value to the SP.
VanVan, Itotally agree and well said!
I'm pleased we had a BRR interview this morning, but I wonder at times if they understand the significance of what is happening to Ariana. If it was me asking the questions, I'd say....blooming hell Kerim, are you really going to return approximately 1p per share to shareholders, a yield of circa 15%? That seems amazing. If that is right Kerim, it seems incredulous that there isn't a stampede to buy the shares. Do you think the muted response is because it still has to get passed by shareholders, the Competitions Committee and the Court authorisation etc., or is it simply that only a few well-informed investors know about Ariana Resources and this amazingly generous return you are proposing? Perhaps keeping it low key, means most of the money will go to long term shareholders rather lots of "Jonny come lately" investors.
Where is the wow factor in these interviews? It's as though they are just going through the monitions, through a script. I'd be asking also about the amazing free carry deal on Salinbas and how all this cash allows Kerim & team to do what they are best at and love the most....exploration & development. Is it me or has Covid-19 made us all rather lack lustre? This is blooming fantastic. I know we have known about it for nearly a year but now it is happening and Ariana has courted and won the arm of a major Turkish Conglomerate. Perhaps we overlook the significance of that. A Co. involved in US$9billion worth of projects with 50,000 employees. Amazing for us who 12 months ago was worth just £20m! Give Kerim credit for an amazing achievement. And what's more we are now going to transform Salinbas into Turkey's next major gold mine. I think we are honestly allowed to be a tiny bit excited. And I'm not overlooking the high-grade zones/veins identified/discovered this year at Tavsan and Arzu North (Kiziltepe) plus the secrets soon to be released regarding Cyprus. Finally, do you remember the words in the first RNS last Nov about the J.V. and the objective. " It is the goal of the partners to become one of the premier gold mining companies operating in Turkey". Have a think what that must mean in terms of size and potential. What the dickens are Yellow Jersey and Panmure Gordon doing? Asleep on the job if you ask me. This must be the best kept secret on AIM. Off for a cold shower!