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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: 3.875 GBX

Market: AIM
Market Cap: £41.06 m

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