INTERIM RESULTS

RNS Number : 2634B
Ariana Resources PLC
30 September 2022
 

Trade on AIM logo Ariana Resources PLC NEW

 

 

 



30 September 2022

AIM: AAU

INTERIM RESULTS

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral exploration and development company with gold mining interests in Europe, is pleased to announce its unaudited interim results for the six months ended 30 June 2022.

Financial Highlights:

· Ariana's share of profits from the Kiziltepe Mine, of which Ariana owns 23.5% through its investment in Zenit Madencilik San. ve Tic. A.S. ("Zenit"), in the six months to June 2022 amount to £2.5m (H1 2021: £1.3m), reflecting improved metals prices and a doubling of capacity of the Kiziltepe processing plant.


· Profit before tax of £2.9m recorded for the period, with operating costs in line with expectations and the prior year.


· Payment of the second tranche of the Company's Special Dividend, of 0.175 pence per ordinary share, following the completion of the partial divestment of its interests in Turkey.

 

· Approval at the Company's Annual General Meeting of the payment of the final tranche of Special Dividend, of 0.175 pence per ordinary share, to be made to shareholders on 3 October 2022.


Operational Highlights:

· Strategic investment of US$2.5m made into Ariana by Newmont Corporation to support the exploration programmes of Ariana's 75%-owned Western Tethyan Resources ("WTR") in south-eastern Europe.
 

· WTR has since been granted 297km2 of highly prospective ground in Kosovo across four licences, with a further 161km2 of tenure currently under application.

 

· Ariana's 50%-owned Venus Minerals Ltd ("Venus") has substantially improved the project metrics for the advanced and full-permitted Apliki copper mine in Cyprus as it continues to pursue an IPO on AIM.

 

· Kiziltepe Mine production for H1 2022 achieved 13,378 ounces of gold (H1 2021: 7,941 oz Au) with annual guidance of 25,000 ounces of gold expected to be met by year-end.

 

· Further extended exploration and resource drilling campaigns are underway at Kiziltepe and Salinbas.

 


Post-Period End Highlights:

· Construction of the Tavsan gold mine, intended to be Zenit's second producing mine, has been underway since late July 2022 and scheduled for completion in H2 2023.

 


Dr. Kerim Sener, Managing Director, commented:

" The last half year has reflected a period of consolidation on the strategy of the Company following the transformative developments of 2021, which included the payment of the second tranche of our £7.74m Special Dividend in March 2022. The third and final tranche of this Special Dividend, amounting to £2.0m, is due to be paid to shareholders on 3 October 2022.  This marks the end of one era for Ariana and the beginning of an exciting second era. This new era involves a much broader spread of project interests, from the developing Project Leopard strategy in Turkey to our significant regional investments in Western Tethyan and Venus, and to our minority interests in several discovery-stage opportunities, held through the Asgard Metals Fund. 

"Such a broadening of interests is underpinned by our 23.5% holding in Zenit, which has been successfully producing gold and silver for the past five years from the Kiziltepe Mine in Turkey. An extensive drilling programme, completed in late 2021, resulted in the definition of a revised Resource and Reserve estimate, announced in early 2022, which provided a further 2.5 years of production from the mine. With a new two-rig drilling programme currently underway, we are expecting to enhance the life of mine further still.

"Zenit now has production from its second gold and silver mine at Tavsan in its sights, targeting a production rate of circa 30,000 ounces of gold per annum over eight years. Post-period end, Zenit commenced the construction phase of the mine, with completion currently targeted during H2 2023. Meanwhile, drilling remains underway at the Salinbas Project in north-eastern Turkey, drawing on the enhanced financial resources of US$8m injected into the project company by Ozaltin Holding A.S.

"Our 75% investment in Western Tethyan Resources, completed in late 2021, was clearly well-timed, with Newmont Corporation taking a strategic position in Ariana to support our exploration activities across south-eastern Europe.  Since then, WTR has secured 297km2 of highly prospective ground in Kosovo across four licences, with a further 161km2 under application.  Among the exploration licences granted during the period, the Hertica Project contains a large 6km2 zone of advanced argillic alteration containing several quartz-diorite porphyry intrusions displaying copper, gold and antimony mineralisation up to 0.4 g/t Au and 0.5% Cu from rock-chip samples.  Post-period end, WTR entered into an option to acquire the high-grade Slivova gold project in Kosovo from Avrupa Minerals, representing an advanced project development opportunity.

"We are also very pleased with the progress being made by the team at Venus; notably the completion of a 50:50 joint venture agreement with Cyprus' leading construction firm, the Iacovou Group, on the advanced and fully-permitted Apliki copper project in Cyprus. This has significantly enhanced Venus' project portfolio and, recent developments, including the completion of a revised Mineral Resource Estimate for Apliki of 17Mt at 0.26% to 0.69% Cu (0.34% Cu average), have made material improvements to the metrics of its proposed IPO.  These improvements are in the process of being integrated into the IPO documentation ahead of further market soundings which will be completed in Q4 2022.

"Meanwhile, in Australia, the Asgard Metals Fund is continuing to evaluate several investment opportunities beyond those completed to date.  Significant investments completed during the past year have included Panther Metals Ltd, Pallas Resources Ltd and Annamite Resources Holdings Pte. Ltd.  Panther is exploring a largely Western Australian portfolio of gold and nickel-cobalt assets, upon which a maiden JORC Resource of 70.6Mt at 0.7% Ni and 460ppm Co (Inferred) was established in June 2022. Pallas Resources commenced an extensive exploration programme across its highly prospective portfolio of copper-gold assets in Kazakhstan, involving soil geochemistry and airborne geophysics, among other work.  Annamite Resources commenced a drilling programme on its Namthom copper-gold porphyry project in Laos. 

"We look forward to providing further updates from our exciting pipeline of projects and investments, representing a full spectrum of opportunities across commodities and jurisdictions, yet maintaining a continued focus on advanced projects in gold and copper, particularly in south-eastern Europe."


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 2022

 

Condensed consolidated statement of comprehensive income

 


 

6 months to

6 months to

12 months to


 

30 June

30 June

31 December


 

2022

2021

2021


Note

£'000

£'000

£'000

 

Administrative costs (net of exchange gains)

 

 

 

(3)

 

611

 

(657)

 

(2,917)

General exploration expenditure


(57)

-

(67)






 

Operating profit/(loss)


 

554

 

(657)

 

(2,984)






 

Profit on restructuring of group activities

 

Share of profit of associate accounted for using the equity method

 

 

(4)

 

(5a)

 

-

 

2,500

 

6,423

 

1,265

 

6,423

 

4,260

Share of loss of associate accounted for using the equity method

 

(5c)

(143)

-

(213)

Investment Income

 

 

26

80

202

 

 




Profit before tax

 

2,937

7,111

7,688






Taxation

(7)

(498)

(2,073)

(3,832)

 

 

 

 

 

 

Profit for the period from continuing operations

 

2,439

5,038

3,856











Other comprehensive income

Items that may be reclassified subsequently to profit or loss:

 





Exchange differences on translating foreign operations


(1,875)

(1,503)

(2,948)

 

Other comprehensive (loss)/ for the period

net of income tax

 

 

 

(1,875)

 

 

(1,503)

 

 

(2,948)

 

Total comprehensive profit for the period


 

564

 

3,535

 

908






Earnings per share (pence)

 

 

 

 

Basic

(8)

  0.22

  0.47

  0.36

Fully diluted

 

0.22

0.47

0.36


 

 

 

 

 


 

Ariana Resources Plc

Unaudited Condensed Consolidated Interim Financial Statements

For the six months ended 30 June 2022

 

Condensed consolidated interim statement of financial position

 


 

30 June

30 June

31 December


 

2022

2021

2021


Note

£'000

£'000

£'000

 





ASSETS





Non-current assets





Trade and other receivables


661

1,002

815

Financial assets at fair value through profit or loss

(9)

567

-

461

Intangible assets


140

159

149

Land, property, plant and equipment

Earn-in advances


491

-

193

1,731

238

-

Investment in associates accounted for using the equity method

(5)

 

13,111

 

9,646

 

11,402

 

Total non-current assets

 

 

14,970

 

 12,731

 

13,065











Current assets





Trade and other receivables

(10)

984

1,029

1,136

Cash and cash equivalents


14,024

22,434

16,389

 

Total current assets

 

 

15,008

 

23,463

 

17,525






Total assets

 

29,978

36,194

30,590











EQUITY





Called up share capital

(11)

1,143

6,079

1,097

Share premium

(11)

2,157

12,184

305

Capital reduction reserve

(11)

-

-

7,222

Other reserves


720

720

720

Share based payments


173

230

173

Translation reserve


(10,053)

(6,733)

(8,178)

Retained earnings


34,902

22,279

27,160

 

Total equity attributable to equity holders of the parent

 

 

29,042

 

34,759

 

28,499

 

Non-controlling interest

 

 

30

 

-

 

30

 

Total equity

 

 

29,072

 

34,759

 

28,529











LIABILITIES

 





Current liabilities





Trade and other payables


906

1,435

2,061

 

Total liabilities


 

906

 

1,435

 

2,061






Total equity and liabilities

 

29,978

36,194

30,590

 

 

 

Ariana Resources Plc

Unaudited Condensed Consolidated Interim Financial Statements

For the six months ended 30 June 2022

 

Condensed consolidated interim statement of changes in equity


 

 

 

Share

capital

 

 

 

Share

Premium

 

 

 

Other

reserves

 

 

 

Share

Options

 

 

Capital

Reduction

reserve

 

 

Trans-

lation

reserve

 

 

 

Retained

Earnings

 

 

Non-controlling interest

Total

attributable

to equity

holder of

parent


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£`000

£'000











Balance at 1 January 2021

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

 

 

 

 

 

 

 

 

 

 

Changes in equity

to 31 December 2021

 










Loss for the period

 

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,182)

 

-

 

(1,182)

Other comprehensive income

 

-

 

-

 

-

 

-

 

-

 

(1,445)

 

-

 

-

 

(1,445)











Total comprehensive income

 

-

 

-

 

-

 

-

 

-

 

(1,445)

 

(1,182)

 

-

 

(2,627)

 

Issue of ordinary shares

 

Court order - reduction in capital

 

Dividend paid to shareholders

 

Transfer between reserves

 

Transaction between shareholders

 

13

 

(4,995)

 

 

-

 

-

 

 

-

 

174

 

(12,053)

 

 

-

 

-

 

 

-

 

-

 

-

 

 

-

 

-

 

 

-

 

-

 

-

 

 

-

 

(57)

 

 

-

 

-

 

7,222

 

 

-

 

-

 

 

-

 

-

 

-

 

 

-

 

-

 

 

-

 

-

 

9,826

 

 

(3,820)

 

57

 

 

-

 

-

 

-

 

 

-

 

-

 

 

30

 

187

 

-

 

 

(3,820)

 

-

 

 

30











Transactions with owners

 

(4,982)

 

(11,879)

 

-

 

(57)

 

7,222

 

-

 

6,063

 

30

 

(3,603)

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2021

 

1,097

 

305

 

720

 

173

 

7,222

 

(8,178)

 

27,160

 

30

 

28,529

 

 

 

 

 

 

 

 

 

 

 

 

 

Ariana Resources Plc

Unaudited Condensed Consolidated Interim Financial Statements

For the six months ended 30 June 2022

 

Condensed consolidated interim statement of changes in equity (continued)

 

 


 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 


 

 

 

Share

capital

 

 

 

Share

Premium

 

 

 

Other

reserves

 

 

 

Share

Options

 

 

Capital

Reduction

reserve

 

 

Trans-

lation

reserve

 

 

 

Retained

Earnings

 

 

Non-controlling interest

Total

attributable

to equity

holder of

parent


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£`000

£'000











Changes in equity

to 30 June 2022




















Profit for the period

 

-

-

-

-

-

-

2,439

-

2,439

Other comprehensive income

 

-

 

-

 

-

 

-

 

-

 

(1,875)

 

-

 

-

 

(1,875)











Total comprehensive income

 

-

 

-

 

-

 

-

 

-

 

(1,875)

 

2,439

 

-

 

564

 

Issue of ordinary shares

 

 

46

 

1,852

 

-

 

-

 

-

 

-

 

-

 

-

 

1,898

Transfer between reserves

 

Dividend paid to shareholders

 

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(7,222)

 

-

 

-

 

-

 

7,222

 

(1,919)

 

-

 

-

 

-

 

(1,919)

 











Transactions with owners

 

46

 

1,852

 

]-

 

-

 

(7,222)

 

-

 

5,303

 

-

 

(21)

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2022

 

1,143

 

2,157

 

720

 

173

 

-

 

(10,053)

 

34,902

 

30

 

29,072

 

 


Ariana Resources Plc

Unaudited Condensed Consolidated Interim Financial Statements

For the six months ended 30 June 2022

 

Condensed consolidated Interim statement of cash flows


6 months to

6 months to

12 months to


30 June

30 June

31 December


2022

2021

2021

Cash flows from operating activities

 

£`000

 

£`000

 

£`000

 

Profit for the year

2,439

5,038

3,856

Adjustments for:




Depreciation of non-current assets

46

10

44

Profit on restructuring of group activities

Share of profit in equity accounted associate

-

(2,500)

(6,423)

(1,265)

(6,423)

(4,260)

Share of loss in equity accounted associate

143

-

213

Investment income

(26)

(80)

(202)

Income tax expense

498

2,073

3832

Movement in working capital

600

(2,940)





(Increase)/decrease in trade and other receivables

(657)

(1,643)

62

(Decrease) in trade and other payables

(355)

(1,402)

(271)

Cash (outflow)/inflow from operating activities

(412)

(3,692)

(3,149)




Taxation paid

(1,154)

(1,496)

(2,923)

Net cash from operating activities

(1,566)

(5,188)

(6,072)

 

 

 

Cash flows from investing activities

Earn-In Advances

 

-

 

(525)

 

(1,406)

Purchase of land, property, plant and equipment

(314)

(161)

(241)

Proceeds from restructuring of group activities

-

25,468

28,951

Purchase of associate investment

-

-

(4,139)

Purchase of financial assets at fair value through profit or loss

(81)

-

(461)

Dividend from associate

348

-

705

Investment income

26

80

202

Net cash generated/(used) in investing activities

(21)

24,862

23,611

 

 

Cash flows from financing activities

Issue of share capital

Proceeds from non-controlling interest

Payment of shareholder dividend (excluding uncashed)

 

 

 

1,898

-

(2,037)

 

 

 

140

-

-

 

 

 

326

30

(3,689)

Net cash generated from/ (used in) investing activities

 

(139)

140

(3,333)

Net increase in cash and cash equivalents

(1,726)

19,814

14,206

Cash and cash equivalents at beginning of period

16,389

2,978

2,978

Exchange adjustment on cash and cash equivalents

(639)

(358)

(795)

Cash and cash equivalents at end of period

14,024

22,434

16,389


 

 

Ariana Resources Plc

Unaudited Condensed Consolidated Interim Financial Statements

For the six months ended 30 June 2022

 

Notes to the interim financial statements for the six months ended 30 June 2022

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 2nd Floor, Regis House, 45 King William Street London EC4R 9AN.

 

The Company`s shares are listed on the AIM 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, copper and technology-metals, primarily in south-eastern Europe, with an interest in mining operations in Turkey.  

2 (a). 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 2021, which have been prepared in accordance with UK-adopted international accounting standards.

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.  Statutory financial statements for the year ended 31 December 2021 were approved by the Board of Directors on 28 June 2022. The financial information for the periods ended 30 June 2022 and 30 June 2021 are unaudited.


2 (b). 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 2021.

These 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.

 

3. Administrative costs

 

During the period, exchange gains on holding US bank deposits resulted in a net credit arising on the charge for administrative costs.

 

4. Profit on restructuring of group`s activities

 

During the prior 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. A.S. ("Pontid") to Ozaltin Insaat, Ticaret and Sanayi A.S. ("Ozaltin") and Proccea Construction Co ("Proccea") for a total consideration of US$ 35.75m.

 


 

30 June

30 June &

31 December


2022

2021


£'000

£'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)

Recycled translation losses

-

(4,336)

Profit on restructuring of group`s activities

-

6,423

 



   


5. Equity accounted Investments
 

The Group investments comprise the following:

 


Note

30 June

30 June

31 December


 

2022

2021

2021

Associate companies

 

Group

Group

Group

Associate Interest in Zenit Madencilik San. ve Tic. A.S. ("Zenit")

5a

6,725

5,507

4,864

Associate Interest in Pontid Madencilik San. ve Tic. A.S. ("Pontid")

5b

4,139

4,139

4,139

Associate Interest in Venus Minerals Ltd ("Venus")

5c

2,247

-

2,399

Earn-in advances


-

1,731

-

Carrying amount of investment


13,111

11,377

11,402


5 ( a). Investment 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 for a total consideration of US$25m. As at 30 June 2022 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

 

2022

2021

2021

Summary statement of comprehensive income

 

£'000

£'000

£'000

Revenue

22,792

11,860

32,784




 

Cost of sales

(9,208)

(5,885)

(14,586)

 

 



Gross Profit

13,584

5,975

18,198

 

 


 

Administrative expenses

(1,346)

(938)

(2,344)

 

 


 

Operating profit

12,238

5,037

15,854

 

Other income

 

30

 

-

 

124

 

 


 

Finance expenses including foreign exchange losses

(630)

(811)

(1,171)

 

 


 

Finance income including foreign exchange gains

2,005

1,281

5,213

 

Profit for the period before tax

 

13,643

  5,507

20,020

 

 

 

 

Taxation

(3,003)

(124)

(1,890)





Profit for the period

10,640

5,383

18,130





Proportion of Group's profit share

 

Group`s share of profit for the period

23.5%

 

2,500

23.5%

 

1,265

23.5%

 

 4,260




 

 

   


6 months to

6 months to

12 months to


30 June

30 June

31 December


2022

2021

2021

Summary statement of financial position

£'000

£'000

£'000





Non-current assets (including Kiziltepe Gold Mine)

19,193

21,493

16,169





Current assets

18,756

10,760

11,884





Current liabilities

(8,784)

(6,866)

(5,961)





Non-current liabilities

(548)

(1,955)

(1,395)





Equity

28,617

23,432

20,697

 




Proportion of Group's ownership

23.5%

23.5%

23.5%

 








 

Carrying amount of Investment

 

6,725

 

5,507

 

4,864





 

5 (b). Investment in Pontid

 

Following the disposal in the prior period by Greater Pontides Exploration B.V. (holding company) of its entire interest in Pontid Madencilik San.ve Tic. A.S. ("Pontid") to Ozaltin and Proccea, the Group reinvested US$ 5.75m for a 23.5% shareholding in Pontid. This investment continues to be valued at £4.139m as at 30 June 2022.

 

5 (c). Investment in Venus

 

The Group acquired 50% of Venus Minerals Ltd through an earn-in agreement on 5 November 2021. The Group`s share of loss for the period to 30 June 2022 amounted to £143,000 (2021:loss: £213,000 - since significant influence on 5 November 2021).

 

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 2022

30 June 2021

31 December 2021


Other

Other

Other


 

reconciling

 

 

Reconciling

 

 

reconciling

 


Mining

items

Group

Mining

Items

Group

Mining

Items

Group


 

 

 

 

 

 

 

 

 


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000


 

 

 

 

 

 

 

 

 

Administrative costs(net of exchange gains)

 

-

 

611

 

611

 

-

 

(657)

 

(657)

 

-

 

(2,917)

 

(2,917)


 

 

 

 

 

 

 

 

 

General exploration expenditure

 

(57)

 

-

 

(57)

 

-

 

-

 

-

 

(67)

 

-

 

(67)


 

 

 

 

 

 

 

 

 

Profit on restructuring

-

-

-

6,423

-

6,423

6,423

-

6,423


 

 

 

 

 

 

 

 

 

Share of profit in associate

2,500

-

2,500

1,265

-

1,265

4,260

-

4,260


 

 

 

 

 

 

 

 

 

Share of loss in associate

(143)

-

(143)

-

-

-

(213)

-

(213)











Investment income

-

26

26

-

80

80

-

202

202

 



 



 



 

Profit/(loss) before taxation

 

2300

 

637

 

2,937

 

7,688

 

(577)

 

7,111

 

10,403

 

(2,715)

 

7,688




 



 



 

Taxation charge

(498)

-

(498)

(2,073)

-

(2,073)

(3,832)

-

(3,832)




 



 



 

Profit/(loss) after tax

1,802

637

2,439

5,615

(577)

5,038

6,571

(2,715)

3,856




 



 



 

 



 



 



 

 

Geographical segments

 

The Group's mining assets and liabilities are located primarily in Turkey.

 


30 June 2022

30 June 2021

31 December 2021


 

United

 

 

United

 

 

United

 


Turkey

Kingdom

Group

Turkey

Kingdom

Group

Turkey

Kingdom

Group


 

 

 

 

 

 

 

 

 


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000











Carrying amount of segment non-current assets

 

 

12,218

 

 

2,752

 

 

14,970

 

 

10,840

 

 

1,891

 

 

12,731

 

 

10,304

 

 

2,761

 

 

13,065

 

7. Taxation

 

The Group had taxable profits for the period and a corporation tax charge is anticipated during the year to 31 December 2022.

The charge reflected in these interim accounts is based on the following transactions:

 


30 June 2022

 

£'000

 30 June 2021

 

£'000

 

 

31 December 2021

£'000

 

 

Taxation on disposal of part interest in Zenit JV

 

  -

1,725

2,931

Withholding tax suffered on subsidiary dividends

 

Taxation on subsidiary profits and exchange gains

-

 

498

348

 

-

901

 

-

 

Tax charge for the period

 

498

 

2,073

 

3,832

 

8. Earnings per share on continuing operations

 

The calculation of basic profit per share is based on the profit attributable to ordinary shareholders of £2,439,000 divided by the weighted average number of shares in issue during the period, being 1,121,823,310.

 

9. Financial assets at fair value through profit or loss

£'000


 

Six months ended 31 December 2021

 


Addition in Panther Metals Ltd (listed)

 

Addition in Pallas Resources Ltd

 

188

 

273

 

Closing net book value at 30 December 2021

461



Six months ended 30 June 2022


 


Opening net book value at 1 January 2022

461

 

Addition in Annamite Resources Holdings Pte. Ltd.

 

80

Exchange movement

26



Closing net book value at 30 June 2022

567

 

All the above investments are owned by the Group`s wholly-owned subsidiary Asgard Metals Pty. Ltd.

 

10. Trade and other receivables

 

30 June

 

30 June

 

31 December

 

2022

2021

2021

 

£'000

£'000

£'000

Amounts owed by associate interest

496

696

792





Other receivables

396

225

219





Prepayments

92

108

125


 

 

 


984

1,029

1,136





The fair value of trade and other receivables is not materially different to the carrying values presented.

 

11. Called up share capital, share premium and capital reduction reserve

 

 

 

 

 

 

 

 

 

Number

of shares

Share

Capital

Deferred

Shares

Share

Premium

Capital reduction


 

 

 

 

Scheme

Allotted, issued and fully paid 0.1p shares

 

£'000

£'000

£'000

£`000


 

 

 

 

 

In issue at 1 January 2021

1,075,677,943

1,075

4,995

12,053

-


 

 

 

 

 

Share capital reduction reserve

-

-

(4,995)

(12,053)

17,048


 

 

 

 

 

Retained losses utilised

-

-

-

-

(9,826)


 

 

 

 

 

Share options exercised

21,000,000

22

-

305

-


 

 

 

 

 

In Issue at 31 December 2021

1,096,677,943

1,097

-

305

7,222

 

 

 

 

 

 

Issue of shares

46,185,387

46

-

1,852

-

 






Transfer of reserve to retained earnings

-

-

-

-

(7,222)

 






In issue at 30 June 2022

1,142,863,330

  1,143

-

 

  2,157

-

 

At 30 June 2022 the Company had 27,000,000 options and nil warrants outstanding for the issue of ordinary shares.

 

12 . Dividend distributions

 

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 its sub-divided deferred shares. This allowed the Company to extinguish retained losses amounting to £9,826,000 to pave the way for the following dividend distributions:

 

(a) The Company paid the first part of its inaugural interim dividend of 0.35 pence per ordinary share on 24 September 2021.

 

(b) The second part of the inaugural interim dividend of 0.175 pence per ordinary share was paid on 31 March 2022. 

 

(c)  A third and final payment of the inaugural dividend of 0.175 pence per ordinary share is to be paid on 3 October 2022.

 

13. Approval of interim financial statements

 

The interim financial statements were approved by the Board of Directors on 29 September 2022.

 


 

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) 20 3004 9512

Dominic Barretto / Henry Wilkinson / Laurie Gellhorn

arianaresources@yellowjerseypr.com

 

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. a joint venture 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 February 2022). The joint venture comprises 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 222,000 ounces gold and 3.8 million ounces silver (as at February 2022). 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 Mine is located in western Turkey and contains a JORC Measured, Indicated and Inferred Resource of 253,000 ounces gold and 0.7 million ounces silver (as at June 2020). Following the approval of its Environmental Impact Assessment and associated permitting, Tavsan is being developed as the second gold mining operation in Turkey. 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 owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as part of the Company's proprietary Project Catalyst Strategy. The Fund is 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.

 

Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which operates across south-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.  WTR is being funded through a five-year Alliance Agreement with Newmont Corporation ( www.newmont.com ).

 

Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused on the exploration and development of copper-gold assets in Cyprus which contain a combined JORC Indicated and Inferred Resource of 17Mt @ 0.45% to 1.10% copper (excluding additional gold, silver and zinc), in addition to pursuing a separate 50:50 JV on Hellenic Apliki Mines, which owns the Hellenic SX-EW processing plant and the 17Mt @ 0.26% to 0.69% Cu Apliki mine development project. 

 

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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