TIDMAAU
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 GBP1.3m (H1 2020 GBP3.0m), due in part to the
reduction in holding from 50% to 23.5%.
-- Profit before tax of GBP7.1m (H1 2020 GBP2.2m) recorded for
the period, with operating costs in line with expectations and the
prior year.
-- Profit for the period of GBP5.0m (H1 2020: GBP1.9m) reflects
the profit realised on restructuring of group activities.
-- Payment of first dividend of GBP3.8m 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 GBP24.4m, 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 GBP1.2m 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 GBP3.8 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 6 months 12 months
30 June 2021 to 30 June to 31 December
GBP'000 2020 2020
GBP'000 GBP'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
Share of profit of associate
accounted for using the (4) 6,423 - -
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
net of income tax (1,503) (1,307) 1,116
------------------------ ---------------------- -------------------------
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 GBP'000 GBP'000 GBP'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
capital Premium reserves Options reserves Earnings of
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 6 months 12 months
to to to
30 June 30 June 31 December
2021 2020 2020
Cash flows from operating activities GBP`000 GBP`000 GBP`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
GBP`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 losses) (4,234)
Elimination of translation losses following
restructuring of group (4,386)
Profit on restructuring of group`s activities 6,423
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 GBP'000 GBP'000 GBP'000
income
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
-------------- -------------- --------------
Profit for the period before tax 5,507 5,969 13,179
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 6 months 12 months
to to to
30 June 30 June 31 December
2021 2020 2020
(b) Summary statement of financial GBP'000 GBP'000 GBP'000
position
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
GBP4.139 m and represents the Group's share of Pontid`s net assets
amounting to GBP2.296m and goodwill paid on acquisition of
GBP1.843m.
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
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 31 December
2020 2020
GBP'000 GBP'000
GBP'000
Taxation on disposal of part 1,725 - -
interest in JV with Zenit
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 GBP5,038,000 divided by
the weighted average number of shares in issue during the period,
being 1,081,577,933.
9. Intangible exploration assets GBP'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
GBP'000 GBP'000 GBP'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
GBP'000 GBP'000 GBP'000
In issue at 1 January 2020
Share options exercised to 31 1,059,677,953 1,059 4,995 11,821
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 arianaresources@yellowjerseypr.com
Wilkinson
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.
Ends.
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IR LKLLLFKLLBBK
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