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Gold & silver

Ariana Resources delivers nearly £7mln of profit on low-cost gold production in Turkey

Ariana Resources is well-established as a producer in Turkey

Ariana Resources PLC (LON:AAU) returned a profit before tax of just under £7mln for the year to December 31, 2019.

The profit came as the company continued to enjoy revenues from its Kiziltepe gold mine in Turkey, where operations are now well established.

WATCH: Ariana Resources PLC's Kerim Sener says the growth story is about consistent delivery

“This has been another outstanding year for Ariana, which has delivered production and profitability well above its plans,” Ariana chairman Michael de Villiers said in the full-year results statement.

“The Kiziltepe mine, which is held within Zenit Madencilik (a 50:50 joint venture with Proccea Construction Co.), achieved gold production of 27,985 ounces, 12% above production guidance at an average cash cost of just US$507 per ounce. This, once again, places the Kiziltepe mine comfortably amongst the lowest-cost gold producers in the world.

"The profitability from our Turkish operations has enabled Ariana to report a significant improved earnings per share of 0.65p and a price earnings ratio of 6, which is a respectable position in the junior gold mining sector,” he added.

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