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Ariana beats gold production guidance, again

Ariana is building a strong track record of operations in Turkey

Ariana Resources PLC -

Ariana Resources PLC (LON:AAU) has said it produced 18,645 ounces of gold at its 50%-owned Kiziltepe mine during the year to December 2020, exceeding guidance by 3.5%.

As at the end of 2020, the group noted the mine had produced a total of 84,200 ounces of gold and 915,233 ounces of silver, recording US$134 million in revenue since operations commenced in early 2017.

Mining operations are continuing at Arzu North and Derya, with plans to expand these open-pit proceeding.

A processing plant expansion is also underway, with construction due to be completed in the second half of this year.

"The final quarter of 2020 rounded off another solid year of production for Kiziltepe, which once again exceeded joint venture guidance,” said Ariana’s managing director Dr Kerim Sener in a statement.

“We were further buoyed by gold and silver prices during the year, resulting in revenue exceeding US$37mln in 2020, and capping off an exceptional period of company development. Since operations commenced at Kiziltepe, the joint venture company, Zenit, has successfully repaid US$36.7mln in debt to Turkiye Finans Bankasi. Accordingly its relationships with lenders are very sound, which bodes well for future mine development projects at Tavsan and Salinbas, contemplated as part of our planned new joint venture with Ozaltin and Proccea.”

The company’s stake is about to reduce to 23.5%, following a recent deal.

"Our reduced holding in the joint venture will naturally place a different emphasis on our operational activities going forward. Accordingly, as we transition into the new framework, we will report our production from the joint venture on a six-monthly, rather than quarterly, basis going forward,” said Sener.

"Meanwhile the company is continuing to progress its exploration and development activities across its portfolio, which includes a drilling programme being undertaken within the joint venture and the start-up of field activities elsewhere. Notably we are expecting to increase the pace of our involvement in Venus Minerals, with the expectation that a diamond drilling programme at the Magellan project can commence by the second quarter of 2021, the current limitations imposed by travel restrictions notwithstanding. We are also fast-tracking some other exciting copper-gold project opportunities in the region, further details of which will be announced in due course."

Quick facts: Ariana Resources PLC

Price: 4.4 GBX

Market: AIM
Market Cap: £47.07 m

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