Highlights

  • Ariana Resources reports a 106% growth in profit before tax in H1FY24
  • Ariana states that the Dokwe Gold project's 1.8Moz gold resource is set to drive growth for the company
  • Ariana is progressing toward dual listing on the ASX

Ariana Resources PLC (LSE:AAU) focuses on gold and silver exploration and development. It operates in two segments: mining and other reconciling items.

In the first half of the financial year 2024 (H1FY24), Ariana Resources reported an operating loss of GBP 1.35 million, compared to a loss of GBP 0.79 million in H1FY23. This increase was primarily due to a rise in administrative costs, which reached GBP 1.26 million, up from GBP 0.67 million in the prior corresponding period. This reflects higher operational expenses, including the Dokwe Gold Project acquisition.

On the positive side, the company saw a notable improvement in profit before tax, rising by 106.1% to GBP 0.68 million, compared to GBP 0.33 million in H1FY23. This was driven by profits from Zenit Madencilik, which grew to GBP 2 million in H1FY24, compared to GBP 0.7 million in the previous year, supported by better performance at the Kiziltepe Mine and continued progress at the Tavsan project.

Recent Business Update

On 18 November 2024, Ariana Resources provided an update on its Zenit operations in Türkiye. By Q3FY24, 2 million tonnes of ore had been mined at Kiziltepe (with a grade of 2.8g/t Au) and 0.5 million tonnes at Tavsan (2.2g/t Au). A 60,000-tonne ore stockpile is ready for processing, and Tavsan’s heap-leach plant remains on track for completion in 2024. Drilling activities included 1,290 meters at Salinbas, with 8,000 meters planned at Tavsan. Additionally, a project assessment study was initiated after a site visit to the Dokwe project in Zimbabwe.

Company Outlook

The company expects its Dokwe Gold Project in Zimbabwe, with its 1.8Moz gold resource, is set to boost Ariana Resources' growth, supported by ongoing exploration. In Türkiye, strong performance at the Kiziltepe mine and progress on the Tavsan heap-leach plant ensure stable future production. Ariana is planning for a dual listing on the ASX.

Top 10 Shareholders

The top 10 shareholders of Ariana Resources own around 33.95% of the total shares. Graham (Nicholas John Gore) holds the highest shares, with about 19.52%. He is followed by De'Villiers (Michael John), who holds around 3.53%.

Price Performance 

The stock has gained approximately 6.75% over the last three months, though it has decreased by about 23.30% in the past six months. It has a 52-week low of GBX 1.57 and a 52-week high of GBX 3.18. Currently, the stock is trading below the average of these values. As of 17 December 2024, the closing price is GBX 1.975.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 17 December 2024. The reference data in this report has been partly sourced from EODHD/Others.