Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
My post this morning on ADVFN>
The A.R & A's reads very well. Intelligent, perceptive, mature, visionary and strategic.
Why does this Co hide its talents under a bushel?
Did we appreciate they had undertaken such a comprehensive strategic review? Anyway they obviously have and have articulated their vision and strategies much more clearly and coherently than I’ve seen for a long time. Perhaps they do listen just don’t like to admit it! But they do need to communicate this now to a wide audience. Not just private shareholders. It has to be to the shakers in the City. We are doing great things, better than most in so many ways but it is wasted as no one seems to know.
I can see how the Co can now start to really articulate in detail how each of the strategies are playing out and as they say news flow should increase. On a personal note AGM 10th August mid-day well done. Listened again and dividend October.
Great 10 min presentation. Very confident very positive getting close
https://twitter.com/baseresources/status/1531444308556906496?s=11&t=DaW2MmsyPjf7UNsM3ih8Jg
Toliara proposals in front of Govt and supported by President's advisors. "Pretty close now" and "all stars seem to be aligning" sounds very encouraging to me. I liked this also - "A Company of real strategic relevance" - yes indeed.
Also noted that the Co. plan to complete work on Lower Sands (Rare Earth opportunities) by end of 2022. Significant further opportunities which aren't factored in yet.
And weeks away from approval in Kenya to carry out further exploration work.
We could be getting very close to a transformational cusp here. Listen to the 10 min presentation & DYOR
Asgard Investment News
SOKDEE PROJECT: START OF DRILLING AT NAMTHOM PROSPECT
Annamite Resources is pleased to announce the commencement of core drilling at Namthom copper-gold porphyry prospect on 10 May 2022. The first hole was completed on Friday 20 May, reaching 339.5m and confirming the porphyry discovery, with copper and molybdenum mineralization clearly visible.
Core cutting is underway and samples will be submitted next week for analysis by ALS Global. The drill rig is now moving to the second of three drill holes.
Our program consists of at least three holes, totaling 1600m, and we expect the drilling campaign to extend until end of June.
In parallel, the drone magnetic survey is progressing well, with the survey expected to be completed within a week. A short video below highlights the field work taking place at Namthom.
Paul - you are correct. Kerim set his long vision out with a journalist (Proactive article - 18th Feb. 2021)
“Develop the companies strategy to target a further ten-fold multiplication in market capitalisation within the next decade”
That means increasing the Market Capitalisation from £50m to £500m
Kerim:- “I now see no obstacles to achieving our next target by 2030 and I encourage our shareholders to support this vision.”
Second post from Renniks
Chris was very excited about WTR, he’s been out there twice in the last month, only getting back from there yesterday, I get the impression that Mentor is all over in out there, three more permit applications in, and expecting more to be submitted in the next few weeks, discussed the Newmount deal and he appreciates the concern over dilution, but benefits and value will far out weight this going forward, their money being spent, so low risk with potential huge rewards, and as they not interested in anything below 1.5m oz are expecting big things, and if we only find a million or so, I’m sure we would wrap now round it and either move on or keep for ourselves. That mho
So in short, yes he seemed positively excited about prospects there. Kerim due back in UK next month. Both his kids hav covid at moment. Zack on paternity leave, Ruth a great asset
Rennisks on ADVFN at today's Show giving feedback
Michael, Chris, and Ruth very chatty today, Venus ipo imminent, not too much info on delay other than wanting to get it right.
Tavsan purely down to government permits, could be tomorrow could be next week, but could be next month, hands are tied.
Salinbas- as they have previously stated terrible weather delayed progress there but now full steam ahead drilling.
Dividend policy actively being discussed and it’s really down to understanding what shareholders want, board are in favour.
Michael was due to speak hear, but has bad sty in eye and had to pull out.
Time for coffee and then round two when Ruth is free.
From Renniks on ADVFN who attended the Show today:
Michael, Chris, and Ruth very chatty today, Venus ipo imminent, not too much info on delay other than wanting to get it right.
Tavsan purely down to government permits, could be tomorrow could be next week, but could be next month, hands are tied.
Salinbas- as they have previously stated terrible weather delayed progress there but now full steam ahead drilling.
Dividend policy actively being discussed and it’s really down to understanding what shareholders want, board are in favour.
Michael was due to speak hear, but has bad sty in eye and had to pull out.
Time for coffee and then round two when Ruth is free.
Are there many Brokers who still haven't paid the dividend?
I was pleased to see at the bottom of the latest RNS they have finally updated the words to confirm Tavsan has been granted it's E.I.A.
Would love to hear Kerim go on video to discuss in more detail the latest news.
Interesting valuation post by Renniks on ADVFN.
News this morning from AIM-listed Gold-producer in Turkey, Ariana Resources (AAU), is that its (currently) 50%-owned investee Venus Minerals is set for an IPO on AIM during Q2. This is very positive, and will surely give Ariana’s shares a boost when completed.
No details of the accompanying fundraise were given today, but one would hope that previous indications of maybe £5-10 million of value being delivered to Ariana post IPO, a very good return on the Eur 3 million invested. And more to the point, since the shares will now be listed that value is obvious and real – when we know what it is!
Ariana’s market capitalisation is currently £40.6 million, and it has cash of around £20 million, a producing mine which should throw off around £5.8 million to Ariana for the foreseeable future (and at least until 2026) and a second mine at Tavsan awaiting the final go-ahead via Ariana’s 23.5% interest in the Turkish joint venture which should be up and running a year from get-go producing 30,000 oz Gold a year with similar economics.
As the ducks begin to line up, we now have the strong prospect of another new mine in Cyprus to add to the collection. If we assume £20 million of cash, £15 million for Kiziltepe and £10 million for Tavsan (harsh, but not delivered as yet) that is already more than the current market capitalisation meaning that Venus is valued at minus £5 million. Even just £5 million delivered from Venus would make Ariana’s valuation just silly – and there is still the potentially much larger resource at Salinbas to go, on top of a few bits and pieces via the 100%-owned Asgard fund and whatever comes from 75%-owned Western Tethyan Resources.
At 3.7p I still say buy the shares with a target of 7p, even if Roland “fatty” Cornish and an extra helping of spotted dick wth extra lashings of custard have been named as Nomad and his lunch for Venus and expect that target to be reached this year.
End of my post.
I'm frustrated because I see so much that could be done to support the Co. and it's valuation but there is now a wall between us and them. God knows why! The upside from here to 50p by the end of this decade is a very attractive investment proposition and I will continue to firmly hang onto that belief.
Sorry to have written at such length and no doubt bored the pants of everyone!!
I was interested to read all the comments going back to the joint venture decision. I know a number of investors here and on LSE had reservations at the time. I can't recall precisely what I said at the time, but on balance I tended to support it especially as it was a great way to in effect move my investment in Ariana to a free carry situation from the cash payout. But I know that wasn't the case for most so the decision to support or oppose had to be more numerically driven. That is where the problem came. A poster on LSE, who is an Accountant, went through the projected numbers and tried to analyse the impact on the share price. I did the same and we met up to discuss the outcome. In fact we ask Michael if he would meet us to discuss them, but he refused. Probably understandable. The upshot was that we expected the share price to fall in 2021/2022 for obvious reasons due to income being cut from Kiziltepe given the reduction to 23.5% ownership to the mid 4's not back into the 3's though!! Once Tavsan was in production, which at the time we expected to be during 2022, we could see the share price recover to c. 8p and then grow from there. So that left us with the quandary, did we believe the Board would use the residual capital wisely to as they said at the time, " utilise its enhanced capital position to fund further growth of Ariana's business. The latter activity will involve the acquisition of new exploration and development projects either within Turkey or in other regional jurisdictions and provide for the advancement of the Co. through the development of other assets held in whole or in part outside of the arrangements contemplated within the transaction".
They also said the J.V. was capable of unlocking the full value of their assets in Turkey, which will also target the development of a future pipeline of high value production projects. "It is the goal of the Partners to become one of the premier gold mining companies in Turkey".
I attended that initial J.V. meeting with the Co. in London when this was all announced and there was certainly lots of enthusiasm about the potential. Kerim, Michael, Peter, P.G. etc. were all there. I came away thinking the J.V. alone could create a $300m company in the future and that sits nicely with Kerim's subsequent stated objective to grow the overall Market Cap. to $500m.
So even though I expected a period of weakness, which we have certainly had, I was confident that the future had perhaps near 10 bagger potential. And a result I supported the J.V. decision. What I should have done is taken notice of my own assessment and reduced my holdings in 2021 only to buy back cheaper. Hindsight!!! Perhaps that is what our seller is doing.
Given I'm getting the income and given I still believe Kerim will deliver, notwithstanding all the shortcomings I have recently expressed, I remain happy to hold and or add once I feel we have bottomed out.
http://www.alignresearch.co.uk/align-research/align-research-top-10-conviction-calls-for-2022/
I also like this:- ONE OF THE PREMIER GOLD MINING CO's IN TURKEY. What does that mean in terms of a production/revenue target I wonder?
Kerim:- “We look forward to advancing the joint venture capable of unlocking the full value of our assets in Turkey, which will also target the development of a future pipeline of high-value production projects. It is the goal of the Partners to become one of the premier gold mining companies operating in Turkey."
STRATEGY:
.... to develop the company strategy to target a further ten-fold multiplication in market capitalisation within the next decade.
As we go into 2022 perhaps it is worth reminding ourselves of these very positive remarks from the horse's mouth.
EXTRACTS FROM PROACTIVE ARTICLE - 18th February 2021 & Other Co. material
ARIANA RESOURCES (AAU)
VISION:
“Develop the companies strategy to target a further ten-fold multiplication in market capitalisation within the next decade”
That means increasing the Market Capitalisation from £50m to £500m
Kerim:- “I now see no obstacles to achieving our next target by 2030 and I encourage our shareholders to support this vision.”
Philby1 on ADVFN says: 7.15p
And this was my post on ADVFN this morning in case it is of interest.
"Well Ariana got through it’s long drawn out transaction successfully in 2021 and set itself up as a broader, more diversified Co. ready to take the steps to grow towards its stated goal of being a £500m Co. by the end of the decade. (Kerim confirmed this in an interview earlier in 2021). It is positioning itself to take advantage of the paradigm shift to greener energy, creating unprecedented demand for the likes of copper and even silver. 2021 was lack lustre in share price performance terms, but I suspect we have finished treading water and the future is bright for 2022. Good luck everyone.
Wonder what rattled our cage today?