Ariana Resources plc (LON:AAU) said 2015 had been a transformational year, with the company broadening its portfolio into the “technology metal”, lithium.
Chairman Michael de Villiers said in the full-year results statement that the other big milestone was the start of mine construction at the Kiziltepe sector of its flagship Red Rabbit gold project in Turkey.
The Kiziltepe mine is scheduled for completion this year, and the timing looks fortuitous as there are signs of a turnaround in the precious metals market, de Villiers said.
“After four years punctuated by some sharp falls, the price of gold has soared 20% in the first three months of this year. Moreover, whilst central bankers have been bolstering their reserves, the demand from both institutional and private investors has also increased sharply. This appears to be the consequence of stock market turmoil and the pernicious effects of prolonged ultra-low or negative interest rates across Western-world economies. A further favourable economic development for our mining operation has been the 70% plunge in oil prices since 2014,” the chairman said.
At present, however, the company is still in the pre-revenue stage, and with written off exploration costs rising to £521,000 in 2015 from £65,000 in 2014, the pre-tax loss widened to £1.46mln from £885,000 the year before.