TIDMAAU
RNS Number : 4990A
Ariana Resources PLC
30 September 2020
30 September 2020
AIM: AAU
INTERIM RESULTS
Ariana Resources plc ("Ariana" or the "Company"), the AIM-listed
exploration and development company operating in Europe, is pleased
to announce its unaudited interim results for the six months ended
30 June 2020.
Financial Highlights:
-- Ariana's share of profits from the Kiziltepe Mine, part of
the joint venture ("Zenit" or "JV"), in the six months to June 2020
amount to GBP3.0m, compared to GBP7.9m in the year ended December
2019.
-- Profit before tax of GBP2.2m recorded for the period, with
operating costs in line with expectations and the prior year.
-- Profit for the period of GBP1.9m reflects a withholding tax
charge on maiden dividend distributions of GBP1,600,000 which were
paid in March 2020 from Ariana's operating subsidiary in Turkey to
its intermediate (BVI) holding company.
Operational Highlights:
-- Gold production guidance for 2020 for the Kiziltepe Mine is
c. 18,000 oz Au (gross to the JV) is expected to be met at the end
of Q4 2020.
-- Gold production for H1 2020 achieved 9,808 oz Au (H1 2019:
13,734 oz Au); reduced output due to the planned progression of
mining to lower grade areas.
-- During the period, 100% of Zenit's US$33 million construction
capital loan for Kiziltepe was repaid to Turkiye Finans Katilim
Bankasi A.S.
-- Ariana completed its initial earn-in on Cyprus-focused Venus
Minerals Ltd to 9.24% and, following further expenditure, has
earned an entitlement to 12%, post-period end.
-- New independent JORC resource estimates completed for
Kiziltepe, Kizilcukur and Tavsan, increasing the total depleted
resource inventory across the wider Red Rabbit Project Area to just
over 500,000 ounces of gold.
-- An exploration drilling campaign, which commenced during the
period at the Arzu South vein, identified a new high-grade vein
which will become the focus of further work.
Michael de Villiers, Chairman, commented:
"The first half of 2020 was marked by extraordinary global
developments, which will undoubtedly leave their mark on society
for many years into the future. Despite this, our business has
continued to progress positively under the conditions imposed by
the Coronavirus pandemic and we are now drawing on this experience
to further strengthen and build the Company's strategy.
"During the period, both our operating mine and our ongoing
exploration and development activities have continued to yield
positive results. While we remain on track to produce c.18,000 oz
(gross to the JV) of gold for the year, at an average operating
cost in the region of US$580 per ounce, exploration at Kiziltepe
has continued to demonstrate the opportunities to expand the
resource and to identify new mining areas.
"Significantly, the period saw the end of repayments against
Zenit's US$33 million construction capital loan in April 2020. Full
repayment of this loan has in turn underpinned the financial
strength of our business, through cash flow arising from the
repayment of debtor balances and dividends, enabling us to support
various exploration and development programmes across our Turkish
portfolio and the diversification of the portfolio outside of
Turkey.
"In particular we are pursuing an expanded joint venture with
our current partners, Proccea Construction Co., along with a
potential new partner, Ozaltin Holding A.S. The Salinbas Gold
Project, which we believe has the potential to become a significant
new gold mine producing at a rate of 50,000 oz per annum over a
10-year life of mine, is the focus of this enhanced joint
venture.
"Meanwhile, commodity market conditions have not been this
favourable for many years, with the gold price having risen to a
high of US$1,782 per ounce at the end of the period. Under the
current conditions of global uncertainty and with yet more
unprecedented central bank financial action, we expect that the
gold market will remain strong for some time to come.
"As always, I take this opportunity to thank the Ariana and
joint venture teams for their unwavering efforts during a period of
heightened uncertainty. These efforts have been reflected in a
share price which climbed 56% during the period; a momentum which
was maintained into the current period."
Management Statement
Ariana has continued to make significant progress during the
period, having established itself as a profitable, cash generative
exploration and development company. Our strategy of developing a
pipeline of projects at the production, development and exploration
phases continues to be rewarded. We remain committed to enhancing
our current portfolio and continue to evaluate new projects both in
Turkey, and in surrounding countries, which straddle the Tethyan
Metallogenic Belt. Such projects are carefully filtered to fit our
development criteria and must show capacity to enhance shareholder
value.
Production from our flagship mining operation at Kiziltepe in
Turkey, which is part of the 50/50 Red Rabbit Joint Venture with
Proccea Construction Co., remains fully on target. Q1 2020 gold
production was 5,129 ounces, with 4,679 ounces delivered in Q2
2020, bringing H1 2020 gold production to 9,808 ounces of gold.
This represents an expected decrease in mine output compared to the
same period last year as a result of mining transitioning from the
high-grade Arzu South pit to the lower grade Arzu North pit.
Importantly, however, despite the reduction in grade, average
operating cash costs for the first half of the year remain in the
region of US$500 to US$530 per ounce, in line with the same period
in 2019. Our strong performance in the first half of the year
reflects positively on our 2020 production guidance of 18,000
ounces of gold (gross to the JV).
Due to high commodity prices during the period, Kiziltepe
achieved an average revenue per gold ounce of US$1,920 (inclusive
of silver credit). This, coupled with low operating costs which
have carried over into the period, have resulted in strong revenue
from the operation in the range of c. US$9 to 10 million per
quarter. In addition, 100% of the US$33 million JV construction
capital loan was repaid to the project finance bank, Turkiye Finans
Katilim Bankasi A.S. during the period.
In terms of exploration within the Red Rabbit JV area, we
continue to make significant progress across all of our projects in
western Turkey, with the aim of increasing the JV life of mine and
achieving a production profile of up to 50,000 ounces of gold per
annum. In addition to this we have been making significant progress
at the wholly-owned Salinbas Gold Project, which is located in
northeastern Turkey. A revised resource estimate was completed
shortly after the period end, demonstrating c.1.5 million ounces of
gold. The project comprises three licences two of which were
renewed as 10-year operational licences and one renewed as a 5-year
operational licence. These licences areas include the Salinbas
gold-silver deposit and the Ardala copper-gold-molybdenum porphyry
among other prospects.
Outlook
While the first half of the year was impacted by the onset of
the Coronavirus pandemic, mining operations at Kiziltepe continued
without interruption and an exploration drilling programme
proceeded at the Arzu South vein. This was achieved through the
introduction of various company-wide risk mitigation measures,
which have come at the cost of limiting travel and physical
interaction, requiring the development of an even more atomised and
autonomous approach to business. Both our team and that at the mine
site have demonstrated their ability to operate under this new
reality. Accordingly, our business has emphasised a remarkable
resilience, a characteristic that will be further built upon and
further incorporated into our strategy for the years ahead.
Our existing joint venture with Proccea Construction Co. has
proven the importance of creating strong, successful in-country
partnerships. In this context, we are now looking forward to
enhancing our partnership further with the addition of Ozaltin
Holding A.S. as a second partner in to our current joint venture.
This expanded partnership will drive the further development of the
Red Rabbit assets of Kiziltepe and Tavsan, in addition to
progressing the Salinbas asset through feasibility with the
addition of new capital and engineering expertise.
We strive to continue to deliver on this year's exceptional
progress, through continued production and exploration success, as
well as seeking new development opportunities within and outside of
Turkey. Notably, our investment in Cyprus has continued to progress
and we have been encouraged by the success of initial exploration
on the island.
Based on the progress of mine development we expect our
production guidance for the year of 18,000 oz (gross to the JV)
will be met, and operations during the third quarter continue to
perform in line with expectations. We look forward to providing
further updates on our progress across our projects and
particularly in relation to the development of an enhanced joint
venture encompassing both the Red Rabbit and Salinbas Projects.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Contacts:
Ariana Resources plc Tel: +44 (0) 20 7407 3616
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl
Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 7951 402 336
Dom Barretto / Joe Burgess / Henry arianaresources@yellowjerseypr.com
Wilkinson
Editors' Note:
About Ariana Resources:
Ariana is an AIM-listed mineral exploration and development
company operating in Europe. It has interests in gold production in
Turkey and copper-gold assets in Cyprus. The Company is developing
a portfolio of prospective licences in Turkey, which contain a
depleted total of c. 2.1 million ounces of gold and other metals
(as at July 2020).
The Red Rabbit Project is comprised of the Company's flagship
assets, the Kiziltepe and Tavsan gold projects, and is part of a
50:50 Joint Venture with Proccea Construction Co. Both assets are
located in western Turkey, which hosts some of the largest
operating gold mines in the country and remains highly prospective
for new porphyry and epithermal deposits. The Kiziltepe Sector of
the Red Rabbit Project is fully permitted and is currently in
production. The total depleted resource inventory at the Project
and its wider area is c. 500,000 ounces of gold equivalent (as at
April 2020). At Kiziltepe a Net Smelter Return ("NSR") royalty of
up to 2.5% on production is payable to Franco-Nevada Corporation.
At Tavsan an NSR royalty of up to 2% on future production is
payable to Sandstorm Gold.
The 100% owned Salinbas Gold Project is located in north-eastern
Turkey and has a total resource inventory of c. 1.5 million ounces
of gold. The project comprises three notable licence areas:
Salinbas, Ardala and Hizarliyayla, all of which are located within
a multi-million ounce Artvin Goldfield. The "Hot Gold Corridor"
contains several significant gold-copper projects including the 4
million ounce Hot Maden project, which lies 16km to the south of
Salinbas and 7km south of Hizarliyayla. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation on the
Salinbas Gold Project.
Ariana is also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus") and has to date earned into an entitlement to 12%.
Venus is focused on the exploration and development of copper-gold
assets in Cyprus.
Panmure Gordon (UK) Limited is broker to the Company and
Beaumont Cornish Limited is the Company's Nominated Adviser.
For further information on Ariana you are invited to visit the
Company's website at www.arianaresources.com .
--Ends--
Ariana Resources Plc
Unaudited Condensed Consolidated Interim Financial
Statements
For the six months ended 30 June 2020
Condensed consolidated statement of comprehensive income
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
Administrative costs (782) (588) (1,242)
General exploration expenditure - (139) (18)
Intangible exploration assets
- written off - - (364)
Other gains - - 627
Other income - - 61
Operating Loss (782) (727) (936)
---------------------- ---------------------- -------------------------
Profit on disposal of equity
securities
at FVOCI - - 20
Share of profit of joint venture
accounted for using the equity
method (4) 3,010 3,029 7,891
Investment Income 2 3 5
---------------------- ---------------------- -------------------------
Profit before tax 2,230 2,305 6,980
Taxation (6) (282) - (46)
---------------------- ---------------------- -------------------------
Profit for the period from
continuing
operations 1,948 2,305 6,934
---------------------- ---------------------- -------------------------
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translating
foreign operations (1,307) (1,121) (1,774)
Items that will not be reclassified
to profit or loss:
Net change in fair value of equity
securities at FVOCI (8) - 49 49
Other comprehensive (loss) for
the period
net of income tax (1,307) (1,072) (1,725)
---------------------- ---------------------- -------------------------
Total comprehensive profit for
the period 641 1,233 5,209
Earnings per share (pence)
Basic (7) 0.18 0.22 0.65
Fully diluted 0.17 0.21 0.65
Condensed consolidated interim statement of financial
position
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Trade and other receivables 106 120 93
Intangible exploration assets (9) 16,347 16,987 16,404
Intangible assets 177 - 187
Land, property, plant and equipment 59 185 50
Other Investments (Earn-In advances) 808 - -
Investment in Joint Venture accounted
for using the equity method (4) 9,969 3,521 7,768
---------- ---------- -------------
Total non-current assets 27,466 20,813 24,502
---------- ---------- -------------
Current assets
Trade and other receivables (10) 340 4,196 4,574
Equity securities at FVOCI (8) - 84 -
Cash and cash equivalents 2,342 569 453
---------- ---------- -------------
Total current assets 2,682 4,849 5,027
---------- ---------- -------------
Total assets 30,148 25,662 29,529
========== ========== =============
EQUITY
Called up share capital (11) 6,054 6,054 6,054
Share premium (11) 11,821 11,821 11,821
Other reserves 720 720 720
Share based payments 409 364 364
Translation reserve (7,277) (5,317) (5,970)
Retained earnings 14,246 7,670 12,298
Total equity attributable to equity
holders of the parent 25,973 21,312 25,287
---------- ---------- -------------
Total equity 25,973 21,312 25,287
---------- ---------- -------------
LIABILITIES
Non-Current Liabilities
Deferred tax liability 2,273 2,273 2,273
Other financial liabilities 1,651 1,651 1,651
---------- ---------- -------------
Total non-current liabilities 3,924 3,924 3,924
Current liabilities
Trade and other payables 251 426 318
---------- ---------- -------------
Total current liabilities 251 426 318
---------- ---------- -------------
Total equity and liabilities 30,148 25,662 29,529
========== ========== =============
Condensed consolidated interim statement of changes in
equity
Total
Share attributable
based Trans- to equity
Share Share Other payment lation Retained holder
capital premium reserves reserve reserve earnings of
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31 December
2018 6,054 11,821 720 250 (4,196) 5,315 19,964
Changes in equity to 30
June 2019
Profit for the period - - - - - 2,306 2,306
Other comprehensive income - - - (1,121) 49 (1,072)
---------- ---------- ----------- ---------- ---------- ----------- --------------
Total comprehensive income - - - - (1,121) 2,355 1,234
---------- ---------- ----------- ---------- ---------- ----------- --------------
Share options - - - 114 - - 114
Transactions with owners - - - 114 - - 114
---------- ---------- ----------- ---------- ---------- ----------- --------------
Balance at 30 June 2019 6,054 11,821 720 364 (5,317) 7,670 21,312
========== ========== =========== ========== ========== =========== ==============
Changes in equity
to 31 December 2019
Profit for the period - - - - - 4,628 4,628
Other comprehensive income - - - - (653) - (653)
---------- ---------- ----------- ---------- ---------- ----------- --------------
Total comprehensive income - - - - (653) 4,628 3,975
---------- ---------- ----------- ---------- ---------- ----------- --------------
Share options - - - - - - -
Transactions with owners - - - - - - -
---------- ---------- ----------- ---------- ---------- ----------- --------------
Balance at 31 December
2019 6,054 11,821 720 364 (5,970) 12,298 25,287
========== ========== =========== ========== ========== =========== ==============
Changes in equity
to 30 June 2020
Profit for the period - - - - - 1,948 1,948
Other comprehensive income - - - - (1,307) - (1,307)
---------- ---------- ----------- ---------- ---------- ----------- --------------
Total comprehensive income - - - - (1,307) 1,948 641
---------- ---------- ----------- ---------- ---------- ----------- --------------
Share options - - - 45 - - 45
Transactions with owners - - - 45 - - 45
---------- ---------- ----------- ---------- ---------- ----------- --------------
Balance at 30 June 2020 6,054 11,821 720 409 (7,277) 14,246 25,973
========== ========== =========== ========== ========== =========== ==============
Condensed consolidated interim statement of cash flows
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2020 2019 2019
Cash flows from operating activities GBP`000 GBP`000 GBP`000
Profit for the year 1,948 2,305 6,934
Adjustments for:
Profit on disposal of land owning operations - - (627)
Profit on disposal of equity securities at
FVOCI - - (20)
Profit on disposal of equipment - (53)
Depreciation of non-current assets 11 1 20
Write down of intangible exploration assets - - 364
Fair value adjustments - (49) (49)
Share of profit in Joint Venture (3,010) (3,029) (7,891)
Share based payments charge 45 114 114
Investment income (2) (3) (5)
Income tax expense 282 - 46
Movement in working capital (726) (661) (1,167)
---------- --------------------- -------------------------
Decrease in trade and other receivables 3,419 580 918
Increase/(decrease) in trade and other payables (62) 178 253
Cash inflow from operating activities 2,631 97 4
---------- --------------------- -------------------------
Taxation paid (282) - (8)
---------- --------------------- -------------------------
Net cash from operating activities 2,349 97 (4)
---------- --------------------- -------------------------
Cash flows from investing activities
Purchase of land, property, plant and equipment (13) (28) (12)
Payments for intangible assets (166) (367) (516)
Payments for other investments (274) - -
Proceeds from disposal of equity securities
at FVOCI - - 104
Proceeds from disposal of equipment - - 55
Investment income 2 3 5
---------- --------------------- -------------------------
Net cash used in investing activities (451) (392) (364)
---------- --------------------- -------------------------
Net increase/(decrease) in cash and cash equivalents 1,898 (295) (368)
Cash and cash equivalents at beginning of period 453 938 938
Exchange adjustment (9) (74) (117)
---------- --------------------- -------------------------
Cash and cash equivalents at end of period 2,342 569 453
========== ===================== =========================
Notes to the interim financial statements for the six months
ended 30 June 2020
1. General information
Ariana Resources Plc (the "Company") is a public limited company
incorporated, domiciled and registered in the U.K. The registration
number is 05403426 and the registered address is 2(nd) Floor, Regis
House, 45 King William Street, London, EC4R 9AN, United
Kingdom.
The Company`s shares are listed on the Alternative Investment
Market of the London Stock Exchange. The principal activities of
the Company and its subsidiaries (together the "Group") are related
to the exploration for and development of gold and other
technology-metals, principally in Turkey and surrounding
countries.
2. Basis of preparation
The condensed interim financial statements have been prepared
using accounting policies consistent with International Financial
Reporting Standards and in accordance with International Accounting
Standard 34 Interim Financial Reporting. The condensed interim
financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2019, which
have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union.
The condensed interim financial statements set out above do not
constitute statutory accounts within the meaning of the Companies
Act 2006. They have been prepared on a going concern basis in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS) as adopted by
the European Union. Statutory financial statements for the year
ended 31 December 2019 were approved by the Board of Directors on
27 July 2020 and delivered to the Registrar of Companies. The
financial information for the periods ended 30 June 2020 and 30
June 2019 are unaudited.
3. Significant accounting policies
The same accounting policies have been followed in these
condensed interim financial statements as were applied in the
preparation of the Group's financial statements for the year ended
31 December 2019.
The Group and Company financial statements have been prepared on
a going concern basis. As an exploration and development company
the Directors are mindful that there is an ongoing need to monitor
overheads and cash associated with the exploration and development
programme; and, where necessary, to raise additional working
capital on an ad hoc basis to support the Group's activities.
The Group's ability to continue its operations and to realise
its assets at their carrying values is dependent upon the Group
generating revenues sufficient to cover its operating costs, and
/or obtaining additional financing. These financial statements do
not give effect to any adjustments which would be necessary should
the Group be unable to continue as a going concern and therefore be
required to realise its assets and discharge its liabilities in
other than the normal course of business and at amounts different
from those reflected in the accompanying financial statements.
The Directors remain confident that if future funding is
required they will be able to raise finance to meet the Group's
exploration and development programme and associated overhead
cost.
4. Share of profit of interest in Joint Venture
The Group accounts for its joint venture with Proccea
Construction Co. in Zenit Madencilik San. ve Tic. A.S. ("Zenit")
using the equity method in accordance with IAS 28 (revised). At 30
June 2020 the Group has a 50% interest in Zenit.
Zenit entered production during March 2017, with commercial
production declared from 1 July 2017. Operational revenues and
costs arising from pre-commercial production were capitalised in
2017, along with any new capital expenditure incurred subsequently,
including the construction of the district road diversion necessary
for the full development of the Arzu South open pit.
Summarised financial information of the joint venture, based on
its translated financial statements, and reconciliations with the
carrying amount of the investment in the consolidated financial
statements are set out below:-
6 months 6 months Year ended
to to 31 December
30 June 30 June
2020 2019 2019
Summary statement of comprehensive GBP'000 GBP'000 GBP'000
income
Revenue 14,301 16,132 35,337
Cost of sales (7,051) (7,357) (15,444)
Gross Profit 7,250 8,775 19,893
Other income 359 - -
Administrative expenses (812) (985) (1,636)
Operating profit 6,797 7,790 18,257
Finance expenses including foreign
exchange losses (1,584) (2,810) (4,762)
Finance income including foreign exchange
gains 756 1,117 2,667
---------------- --------------------- -------------
Profit for the period before tax 5,969 6,097 16,162
Taxation credit/(charge) 51 (39) (380)
---------------- --------------------- -------------
Profit for the period 6,020 6,058 15,782
---------------- --------------------- -------------
Proportion of Group's profit share 50% 50% 50%
Group's share of profit for the period 3,010 3,029 7,891
================ ===================== =============
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2020 2019 2019
Summary statement of financial position GBP'000 GBP'000 GBP'000
Non-current assets 22,886 22,904 24,552
Current assets 13,950 8,506 11,868
Current liabilities (11,522) (16,518) (16,643)
Non-current liabilities (5,376) (7,851) (4,241)
---------------- --------------------- -------------
Equity 19,938 7,041 15,536
---------------- --------------------- -------------
Proportion of Group's ownership 50% 50% 50%
Carrying amount of Investment in Joint
Venture 9,969 3,521 7,768
================ ===================== =============
5. Segmental analysis
Management currently identifies one division as an operating
segment - mineral exploration. This operating segment is monitored
and strategic decisions are made based upon this and other
non-financial data collated from exploration activities.
Principal activities for this operating segment are as
follows:
Mining - incorporates the acquisition, exploration and
development of gold resources.
Other reconciling items - include non-mineral exploration costs
and transactions between Group and associate companies.
30 June 2020 30 June 2019 31 December 2019
Other Other Other
reconciling Reconciling reconciling
Mining items Group Mining Items Group Mining items Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Administrative
costs - (782) (782) - (588) (588) - (1,242) (1,242)
General and
specific
exploration
expenditure - - - (139) - (139) (382) - (382)
Profit on
disposal
of
investments - - - - - - - 20 20
Share of profit
in joint
venture 3,010 - 3,010 3,029 - 3,029 7,891 - 7,891
Other gains - - - - - - 627 - 627
Investment
income - 2 2 - 3 3 - 66 66
Profit before
taxation 3,010 (780) 2,230 2,890 (585) 2,305 8,136 (1,156) 6,980
Taxation (282) - (282) - - - (43) (3) (46)
-------- ------------ -------- -------- ------------ -------- -------- ------------ --------
Profit/(loss)
after tax 2,728 (780) 1,948 2,890 (585) 2,305 8,093 (1,159) 6,934
======== ============ ======== ======== ============ ======== ======== ============ ========
Assets
Segment assets 28,886 1,262 30,148 25,061 601 25,662 28,706 823 29,529
-------- ------------ -------- -------- ------------ -------- -------- ------------ --------
Liabilities
Segment
liabilities (3,940) (235) (4,175) (3,970) (380) (4,350) (4,003) (239) (4,242)
======== ============ ======== ======== ============ ======== ======== ============ ========
Geographical segments
The Group's mining assets and liabilities are located primarily
in Turkey.
30 June 2020 30 June 2019 31 December 2019
United United United
Turkey Kingdom Group Turkey Kingdom Group Turkey Kingdom Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Carrying amount
of segment non-
current assets 26,479 987 27,466 20,243 570 20,813 24,314 188 24,502
========= ======== ========= ========= ======== ========= ========= ======== =========
6. Taxation
The Group has not incurred taxable profits for the period and a
corporation tax charge is not anticipated.
During the period, withholding tax amounting to GBP282,000 was
paid by the Group's operating subsidiary in Turkey, Galata
Madencilik San. ve Tic Ltd. on two dividend distributions totalling
GBP1,600,000 to the Group's intermediate (BVI) holding company,
Portswood Resources Limited.
7. Earnings per share on continuing operations
The calculation of basic profit per share is based on the profit
attributable to ordinary shareholders of GBP1,948,000 divided by
the weighted average number of shares in issue during the period,
being 1,059,677,953.
8. Equity securities designated as FVOCI
Group & Company
GBP'000
Valuation at 1 January 2019 35
Fair value adjustment 49
Valuation at 30 June 2019 84
----------------
Disposals (84)
Valuation at 31 December 2019 and 30 June 2020 -
================
The Company sold its remaining shares in Royal Road Minerals
Ltd. during 2019 and hence holds no further listed investments at
the period end.
9. Intangible exploration assets GBP'000
Six months ended 30 June 2019
Opening net book value at 1 January 2019 16,975
Additions 378
Exchange movements (366)
Closing net book value at 30 June 2019 16,987
Six months ended 31 December 2019
Opening net book value at 1 July 2019 16,987
Additions 138
Expenditure written off (364)
Reclassification of expenditure (207)
Exchange movements (150)
Closing net book value at 31 December 2019 16,404
Six months ended 30 June 2020
Opening net book value at 1 January 2020 16,404
Additions 166
Exchange movements (223)
---------
Closing net book value at 30 June 2020 16,347
=========
The technical feasibility and commercial viability of extracting
a mineral resource are not yet demonstrable in the above intangible
exploration assets. These assets are not amortised, until technical
feasibility and commercial viability is established. Intangible
exploration costs written off represent costs relating to certain
projects that are no longer considered economically viable or where
exploration licences have been relinquished.
10. Trade and other receivables 30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Amounts owed by Joint Venture Company - 3,613 3,383
Other receivables 214 478 598
Earn-In advances - - 534
Prepayments 126 105 59
340 4,196 4,574
======== ======== ============
The fair value of trade and other receivables is not materially
different to the carrying values presented.
11. Called up share capital and
share premium
Allotted, issued and fully paid
0.1p shares
Number Share Deferred Share
of shares Capital Shares Premium
GBP'000 GBP'000 GBP'000
In issue at 1 January 2019 to
30 June 2020 1,059,677,953 1,059 4,995 11,821
-------------- -------- --------- --------
Potential issue of ordinary shares - share options and
warrants
The Company on the 1 January 2018 issued 64,000,000 new share
options to directors and staff at an exercise price of 1.55 pence,
vesting over 3 years. A share based payment charge of GBP45,000
(2019: GBP114,000) has been recognised in these interim
results.
At 30 June 2020 the Company had 64,000,000 options and nil
warrants outstanding for the issue of ordinary shares.
12. Contingent liabilities
Following the disposal of the Group's 99%-owned subsidiary,
Çamyol Gayrimenkul, Madencilik, Turizm, Tarim ve Hayvancilik Ltd.
("Camyol") 75% of the resulting gain on disposal is exempt from
Turkish corporation tax provided the gain is retained under equity
by Galata Madencilik San. ve Tic. Ltd. for a period of 5 years.
This potentially exempt taxable gain amounts to Turkish Lira
4,529,343 with an associated corporation tax liability of Turkish
Lira 996,455, or approximately GBP137,000.
13. Approval of interim financial statements
The interim financial statements were approved by the Board of
Directors on 29 September 2020.
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END
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(END) Dow Jones Newswires
September 30, 2020 02:00 ET (06:00 GMT)
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