Member Info for VanVan

By 2020 the numbers will be better.
The current loan will be repaid by April 2020 and any new loan for Tavsan we are told won’t kick in until 6/12 months later, giving us time to accumulate more cash. Perhaps we won’t need to borrow as much as planned.
Tavsan doesn’t start production till c. 2021 so in 2020 it isn’t relevant.
Our lowest quartile costs should continue due to better than expected grades and currency depreciation.
There is such a margin fluctuations aren’t that significant.
The Board has not as yet as far as I know given any suggestion that costs will increase.
It looks like the mine can produce 25,000 ozs per annum ( up from 20,000ozs) and throughput has increased from 150,000 tonnes to 200,000tonnes. Kepez May add to mine ore from mid 2019.
This year the J.V. will have an. Operating profit of c. £14m and Finance costs of c. £9.5m, leaving a nice surplus for Ariana (50%) to spend on exploration investments.etc.
But once the loan runs off in April 2020 we could be generating at J.V. Level Operating profits of £14m.
Salinbas was undervalued in the Balance Sheet (Net present value of $108m from Scoping Study- 8%) and the Accountants no doubt felt that should be corrected . That was detailed in the 2016 Accounts.
I don’t think investors generally appreciate how good the numbers are looking and what silly projected EPS will be.
In time they will of course.

But it might be good for gold!
I reckon at Operating Profit level ours will be close to £7m for the full year.
Consider that against our £12m market Cap. taking no account of all the resources at Kiziltepe, Salinbas, Tavsan, Kepez, Ivrindi, Kizilcukur, Karakavak, Ardala, etc, plus investments, Plant & machinery.
Could it more ridiculous?

Hastings Pier was saved for £12.4m earlier this year!
Value disconnects don’t last forever. Or look at it another way, bargains don’t last for ever
either. Don’t panic - value will out.

Great update and good to get the expected Placing out of the way.
Now we can concentrate on enjoying bumper business, 7 days a week from the Xmas Quarter.

Nice work.

Watch Kerim Sener, CEO of Ariana Resources, discuss the recent investor site visit to the Company's processing plant in Turkey.

https://www.brrmedia.co.uk/broadcasts/5bbb7214269b0c1ded1894e1/ariana-resources-investor-site-visit

Quiet low debt levels compared to UK etc!. Perhaps the economy isn't as bad as the MSM try to tell us.

https://www.rt.com/business/440649-turkey-imf-funding-erdogan/

Not quite sure what it is you want the BofD to do re: the languishing SP. Is the Site visit aimed at that? Aren’t all the presentations aimed at that? Wasn’t the appointment of Yellow Jersey aimed at that?
Isn’t the Twitter fed ... isn’t the buyingbof shares by Directors, isn’t the stellar results all aimed at that!
They have very few staff to keep costs to a minimum as we know.
What I do support is better communication and presentation of the accounts as I believe they are still difficult for investors to extract the headline numbers etc., and I’m disappointed the Gantt chart has been dropped from the presentation. I would also like to see Kerim interviewed by Justin Waite on Vox Markets and occasionally Michael given the chance to present. Just a few positive suggestions not whines about the same old thing.

I really believe it was a great success. They don't happen by chance. It requires a massive amount of work and the feedback from Biggles is that is was very professionally managed.
Biggles was able to feel the confidence and excitement which the Board were proud to share. I believe Kerim's father who was involved in the early stages was also there. From very little to what they have today is a great achievement which hopefully we will benefit from in due course. Please try and find a touch of appreciation and respect for what has been achieved.
$31m total revenue todate. 22,228 oz of gold produced since April 2017. Lowest quartile operating costs. Just 6 years from exploration to production. Discovery costs at $15/oz in lowest quartile & so on.

The site visit was a success in that the attendees came from a wide sector, not of course just investors. I agree it was disappointing that P.G. didn't attend, but remember Kieron Hodgson's boss, Jamie visited the mine himself a couple of years ago. So they have already seen the mine.
As those who attended filter out their visit information, I'm sure we will see further buying.
Once the SP starts to re-rate, I'm sure the jaundice view here held by some will dissipate. My only worry is that with increasing M & A activity across the sector, as outlined in a great interview with Rick Rule today ( with Tekoa De Silva) that with our significant undervaluation, we are vulnerable to unwanted attention.

Fine ore stockpile at largest ever capacity - could satisfy more than a few months production alone #AAU #gold #mine
Some very interesting photos on Twitter.
Sounds like the Site visit was a big success. Well done Ariana.

Our guests at Kiziltepe inspecting the high-grade (>5 g/t Au) vein at the NW end of the pit #AAU #gold #mine

Great twitter posts from the Co. today

More from Biggles
Coming on to exploration, several things have always concerned me regarding Salinbas and those are if it’s such a potential good asset then why did eldorado let it go and with all the pictures shown the terrain looks extremely difficult and impact on weather. Fortunately elderado was represented by senior employee who had been with the company for 13 years so I asked him. His response was they have some excellent prospects all around world and they felt that they were spreading themselves a little too thinly they have much larger prospects 4-5m and were happy to pass salinbas to Ariana for 2% royalties and he pointed out they own 3% of aau so it’s also in their interests for aau to do well. I tongue in cheek said so aau do all the work then you snap them up for a song at this silly share price he laughed but didn’t answer!! Incidentally being snapped up at this artificially low market cap appears to be a real concern for Kerim as he made several off the cuff comments which alluded to this. I also asked Kerim why he felt elderado let the asset go so cheaply and he said elderado had control of exploration and he felt they hadn’t appreciated the true potential because their drilling hadn’t been done in the correct places. Which brings me to the exploration potential of salinbas. Ironstorm this is what you don’t get through an rns. The enthusiasm when Kerim and Zack explain the geology of the area is unbelievable when you compare the downbeat interviews and rnss which results in many on here tearing their hair out saying please be more enthusiastic. I told Kerim I understand how he likes to play down things and let the facts speak for themselves but when I had one to ones with him his enthusiasm positivity was unrecognisable and I told him. He said the areas they are exploring are amazing in terms of potential. When Zack started on salinbas there was no holding him back he explained it is viewed totally differently now and gave me a load of geology speak but the ultimate conclusion what that the area amounts to is a perfect storm in gold exploration. I suggested that it’s all very well finding x million ounces but the terrain gives me a concern. He explained that there is an area where the mine could be built and Kerim said the same. What they also pointed out which I didn’t know was hot madden which a third was sold for $175 million to sandstorm has a river running over the site and a whole village so they have to redirect a river and relocate a whole village; point being salinbas will offer engineering challenges but these can be overcome. The mine would be low enough that the winter weather would not be greatly prolonged.

6: tarsvan, saw someone’s calcs for joint cost of kizeltepe and tarsvan being around $900! This is wrong. Combined cost once producing 50000 expected to be between $600-650. I miss understood how tarsvan is anticipated to work, I thought they would be transporting numerous trucks of ore to kiziltepe and processed similar way perhaps with another ballmill etc but it will be heap leach and likelihood is main work carried out at tarsvan then carbon concentrate moved to kiziltepe so only a few truck and therefore winter weather and transport costs not too much of issue. They are still analysing best way to process however anticipated $20m cap ex 1.1 year pay back IRR 80%!!!! Anticipated minelife 4 years but confident much longer! The loan if they go this route only needs to be repaid once capex complete so if capex starts say early 2020 when loan for kizeltepe paid off they would have 6-12 months of free cash flow (depend how loan takes to build plant at tarsvan). Bottom line great project, still progressing well but plenty to do.
No intention of extra ball mill plays
7: salinbas exploration !! On plane will post when land in Istanbul .

Well I’m part way through my 14hr journey back and sat at Izmir airport so thought I’d give a few comments.
1: the mine is extremely impressive and very large , you don’t appreciate the scale from photos. The tailings dam is designed for 15 year mine life which does give an indication of their LOM ultimate expectations. The surrounding satalite areas Arsu south dera ect were visited and the veins at the surface were clearly visible and soil samples at surface contained gold. I wouldn’t be surprised with LOM 12-15 years.
2. The JV funded the road (I think this was a question)
3: I asked about how formal the relationship was between Procea and Ariana, they said extremely well documented in a 33 page agreement outlining terms of profit distribution etc which comforted me after the debarcle of Stratex and their Turkish partner Bahar who I believe shafted them. When there’s a joint venture I am always wary of the other party trying to get the upper hand but I genuinely feel as does the board that procea and aau complement each other : aau know how to find gold and where to extract from the mine and procea know how to build and operate . They may dig down at boundaries of open pit or may go for forestry permit to extend current pit as they believe rush vein extends further 150 beyond boundary. The vein they were mining yesterday was 8g/tonne!! Procea is private company with 4 shareholding directors who have several projects outside Turkey I asked what happens if they go bust and the reply was that each party has option to purchase others share but the mine would continue and if different shareholder takes proceas place then the JV could continue as it’s a profitable operation and wouldn’t be a a problem. (Worse case questions I know but asked the question to michael Kerim and chris independently and got same answers)
4: panmure gordon were absent I suggested we need to get rid as I feel they appear arrogant and not interested. My opinion is the company knows this but they are wary of approaching another broker in the fear that it may be construed that they are doing so for a fund raise and this is something they strongly reiterated that they won’t require additional funding to conduct the salinbas drill program!!! I suggested that they need to keep all options open but they know the impact it would have.
Will add further points later as boarding

There is a picture from the visit on twitter this morning, but more importantly some great feedback from biggles on ADVFN.

Thanks Benji. Just very briefly, the Non Current Assets are Kiziltepe Gold Mine property, plant and equipment. You will find this on page 63 of the AR& A.
There is no loan interest as such as this is amalgamated into the loan as this is an Islamic facility and therefore structured differently to U.K. loans - at least that is my understanding. Flexible Drawdowns are repaid in the corresponding month in the repayment schedule.
I agree the numbers could be much better presented as the NP figure is shown in its lowest form. Presenting JV gross & NP would help investors understand the true value here. Hope that makes sense.

Thanks Benji
We know from the year end accounts that in the Consolidated Financial Accounts the Current Liabities of £12.6m includes Borrowings of £6.615m, Trade Payable of £2.484m and other payable including Shareholder loans of £3.5m

In the Interims this is broken out but has reduced to £11.875m.
However Non Current Liabilities have reduced from £15.977m (Borrowings) to £14.089m.
Given the loan has reduced by c. $1m per month (note $ - my estimate) if you are right the reductions don’t seem enough. What do you think the Finance Expenses are? In the Annual Report Finance Income and Finance Expenses nearly cancelled each other out & I assumed this was related in some way to the JV internal loans. That is money leant by Ariana to the JV to facilitate mine construction etc. which as we know is now being repaid. In the Annual accounts there is a figure of £10.421m described as Amounts owed by Group undertakings.
Also they show a figure of £2.029m being Amounts owed by Joint Venture Co.
Hope that helps? Have you studied the last Annual Report & Accounts?

Wow I’ve not heard Peter this bullish before!<br /><br />www.proactiveinvestors.co.uk/companies/stocktube/10714/latest-redmoor-results-clearly-beat-strategic-minerals-plc-s-expectations-10714.html