(Alliance News) - Ariana Resources PLC said Monday its profit rose considerably in the first half of 2019, from its Red Rabbit joint venture over the Kiziltepe gold mine in Turkey, amid higher gold production.
For the six months to the end of June, the gold and silver miner's pretax profit rose by sevenfold to GBP2.3 million from GBP318,000 the year before, on a share in profit of GBP3.0 million from its Red Rabbit joint venture.
In addition, administrative costs were 27% lower at GBP588,000 from GBP801,000 the prior year.
The Kiziltepe mine produced 13,734 ounces of gold during the half-year, up 14% from 12,037 ounces a year before.
The average realised gold price during the period was USD1,309 per ounce, against average revenue per gold ounce of USD1,492.
Meanwhile, two new 10-year operating licences were received for the Salinbas gold project, with work on an environmental impact assessment and pre-feasibility study to start.
Looking ahead, gold production guidance for 2019 from the Kiziltepe mine is 25,000 ounces, which is expected to be met by the end of the fourth quarter of 2019.
"It is once again my pleasure to report on another six months of exceptional results from both our operating mine and our exploration and development activities. The Kiziltepe mine has increased output by 14%, compared to the same period last year, and I am pleased to confirm that we remain on track to produce 25,000 ounces of gold for the year," said Chair Michael de Villiers.
"We remain excited by the highly prospective Salinbas gold project, which we believe has the potential to become a significant new gold mine producing at a rate of 50,000 ounce per annum over a ten-year life of mine," de Villiers added.
Shares in Ariana Resurces were up 1.8% at 2.29 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Ariana (AAU)