Ariana Resources Ltd (LON:AAU) charted a 'transformational' 2016 in its full year results, which saw it transition from explorer to producer and post a profit.
For the 12 months to December 31, Ariana reported a pre-tax profit of £13.7mln compared to a loss of £1.4mln a year earlier.
The team successfully built the Kiziltepe Mine with jv partner Proccea and the first gold pour was in March this year.
"We are now in the process of realigning Ariana to take advantage of our evolving position as an exploration junior backed by cash-flow from our joint venture operation at the Kiziltepe Mine, in addition to our significant investments in three listed junior companies," Ariana said today.
The group has enhanced the long-term economics of the Red Rabbit gold project by expanding the resource at Kiziltepe, including an important and timely reappraisal of the Tavşan sector.
A scoping study in November underlined the potential for strong financial returns at Tavşan.
The net present value (NPV) was put at US$41.9mln, with payback secured within 1.1 years over an initial 4 year mine life at a gold price of US$1,250 per ounce.
Bringing the Tavşan sector of the project on stream would enable the firm to lift production from around 20,000 ounces to 50,000 ounces a year of gold equivalent between the two operations.
The firm had cash of £440,000 at the end of the year, versus £319,000 at the end of 2015.
Ariana shares are down 2.86% to 1.70p at the time of writing.