logo-loader
viewAriana Resources PLC

Ariana Resources' Kiziltepe mine has another strong quarter

“During the July and August period the gold price is up c.10% and this increase will be reflected in our Q3 results"

Gold in hand
"We remain encouraged by the rallying gold price," said Kerim Sener, Ariana's chief executive officer

Ariana Resources PLC (LON:AAU) is chuffed with the recent rally in the gold price, which it said would be reflected in its third-quarter results.

The gold miner said gross income from the Kiziltepe mine in Turkey in the second quarter was US$9.69mln at an average realised gold price of US$1,307 per ounce.

WATCH: Hot gold corridor and ops update from Ariana Resources

The Kiziltepe mine is part of the Red Rabbit joint venture in which Ariana has a 50% stake.

The second-quarter numbers are down a tad from the first quarter, when gross income was US$10.86mln at an average realised price of US$1,311 per ounce.

Second-quarter production was 6,438 ounces, down from 7,296 ounces in the first quarter.

With gold production in the first half of the year at 13,734 ounces, the company remains on track to meet its annual production guidance of 25,000 ounces.

Operating cash costs for the quarter are estimated at US$589 per ounce, inclusive of the annual State Right for 2018, which was paid during the quarter.

“Operating cash costs per ounce for the period are higher than in prior quarters, largely due to the annual payment of the State Right royalty to the Turkish Government within the period. Excluding this, the operating cash cost remains fully in line with prior quarters,” said Kerim Sener, Ariana’s managing director.

During the quarter, 48,132 tonnes of ore were milled at an average head grade of 4.18 grams per tonne gold.

Ariana said 69% of the US$33mln capital loan for Kiziltepe had been repaid at the end of June and the company remains on track to repay all of the loan by April 2020.

“The second-quarter results from the Kiziltepe Mine continue to reflect positively on the performance of our flagship operation,” Sener said.

“High strip ratios have been maintained into the current quarter during the pushback of the southern pit wall at Arzu South, but these will decrease during Q3 and Q4,” Sener added.

Pushback of the southern wall of the Arzu South pit is nearing completion and ore production is steadily increasing during the current quarter, Ariana revealed.


 

Quick facts: Ariana Resources PLC

Price: 1.975 GBX

AIM:AAU
Market: AIM
Market Cap: £20.93 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Ariana Resources PLC named herein, including the promotion by the Company of Ariana Resources PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Ariana Resources' Kerim Sener talks 'continued positive performance' at...

Ariana Resources PLC's (LON:AAU) Kerim Sener says the firm's enjoyed one its strongest quarters ever for revenues generated. He says production from the Kiziltepe mine in Turkey was just shy of 7,000oz and combined with a very strong gold price boosted sales. Sener also updates on...

3 weeks, 5 days ago

2 min read