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Ariana Resources PLC

Gold miner Ariana Resources looking to diversify into other commodities

Ariana wants to start looking at commodities that are “associated with the development of new technologies”

electric cars
Lithium and cobalt projects have proved popular with miners in recent years

Turkey-focused gold miner Ariana Resources PLC (LON:AAU) is looking at adding other commodities to its portfolio.

The AIM company wants to diversify its business and explore commodities that are associated with emerging technologies.

READ: Ariana in confident mood as Turkish operations ramp up

Many small-cap miners have moved to grow their exposure to minerals such as lithium and cobalt in recent years to help meet the almost insatiable desire from the booming electric car industry.

“We recognise the importance of diversifying our portfolio partly into other commodities, and particularly those associated with the development of new technologies, within countries representing low risk profiles,” said chairman Michael de Villiers.

Diversifying would help Ariana when times are tough for gold miners, although there is little to worry about at the minute.

The price of gold has soared in recent weeks amid ongoing political tensions in the Middle East and a dovish Federal Reserve, which has put the brakes on the inexorable rise of the US dollar.

On track to hit 2019 production targets

“The rally in the gold price in recent weeks has clearly placed gold and gold miners back on the agenda of investors and market commentators,” added de Villiers.

“Pleasingly, this rally is also being reflected in our share price, which has strengthened significantly and is up 60% over the past six months.”

After an “exceptional” 2018 in which it produced 36% more gold than it had initially forecast, Ariana remains on track to hit its production target of 25,000 ounces this time around.

Quick facts: Ariana Resources PLC

Price: £0.02

Market: AIM
Market Cap: £23.21 m
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