Source - GNW

30 September 2016
AIM: AAU

INTERIM RESULTS

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce its unaudited interim results for the six months ended 30 June 2016.

Highlights:

  • Profit on Ordinary Activities before tax of £0.75 million, reflecting a profit from the sale of certain lithium licences in Australia and adjustments in respect of the Red Rabbit Gold Project ("RRGP") Joint Venture.
  • Construction of the Kiziltepe Mine, nearing completion with Tailings Storage Facility ("TSF") development underway ahead of commissioning, coinciding with mining and stockpiling of vein material.
  • On track to deliver first gold pour at Kiziltepe in late Q4 2016, following completion of the TSF.
  • Drill testing of extensions of mineralised zones at Kiziltepe in Q3 2016 for c. 3,000m yield positive results, second follow-up programme to commence in late October.

Michael de Villiers, Chairman, commented: 

"It is very pleasing to see the tremendous progress made by the construction crews at the Kiziltepe Mine. We remain on track to commission the project during Q4 2016, with our first gold pour targeted for later in this quarter. Work at the tailings storage facility is continuing apace and all of the major work for the process plant is now complete, with piping and electrical installation fully underway. I would like to take this opportunity to commend the diligence and commitment of our Joint Venture team and partners at Proccea. 

Meanwhile we have committed to undertake further drill-testing of vein extensions across the Kiziltepe Sector, following a successful programme in late 2015, which led to increases in our resource base at Kiziltepe and Kizilcukur.  We have recently completed additional drilling at Kiziltepe during our first phase programme for 2016, from which we have already announced positive results.  We are now working on initiating a second phase of drilling to follow-up on these results during late October, with the aim of demonstrating the potential to expand our resource and ultimately increase mine life. 

We have also added significant value to the company through lithium deals we have completed during early 2016 in Western Australia which contributed significantly to our maiden profit of £0.753 million and further deals of this nature are still being assessed by our technology-metals subsidiary, Asgard Metals.  This has demonstrated our ability to act nimbly and very cost-effectively in to new jurisdictions, with an emphasis on low-risk, high-return opportunities.

We look forward to keeping the market updated on our progress across our exploration and development portfolio in the coming months."

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  
   
Beaufort Securities Limited Tel: +44 (0) 20 7382 8300
Jon Belliss  
   
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
Adam James / Tom Salvesen  
   

Editors' note:

About Ariana Resources:

Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey.  The Company is developing a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in Joint Venture with Eldorado Gold Corporation in north-eastern Turkey.  Eldorado owns 51% of this joint venture and are fully funding all exploration work on the JV properties, while Ariana owns 49%.  The total resource inventory within this JV is 1.09 million ounces of gold.

The Company's flagship assets are its Kiziltepe and Tavsan gold projects which form the Red Rabbit Gold Project.  Both contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey.  This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits.  These core projects, which are separated by a distance of 75km, are presently being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co.  The total resource inventory at the Red Rabbit Project stands at c. 525,000 ounces of gold equivalent. 

Beaufort Securities Limited and Panmure Gordon (UK) Limited are joint brokers 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 2016

Condensed consolidated statement of comprehensive income

          
 Note  6 months to
30 June
2016
  6 months to
30 June
2015
12 months to
31 December
2015          
  £'000£'000£'000
         
Administrative costs   (360) (343) (797)
General exploration expenditure   - (9) (10)
Exploration costs - written off   - - (521)
Other income 4 425 - 15
 

Operating profit/(loss)
  65(352)(1,313)
         
Finance costs 5 - (111) (148)
Investment income   43 33 66
Profit on disposal of available for sale investments   626 - -
Share of profit on dilution of interest in joint venture 6 279 68 68
Share of profit/(loss) of joint venture 6 130 (259) (133)
 

Profit/(loss) on ordinary activities before tax
 1,143(621)(1,460)
     
Taxation 8(390)--
 

Profit/(loss) for the period
 753(621)(1,460)
     
Other comprehensive income:       
Exchange differences on translating foreign operations   83 (126) (374)
Fair value adjustment on other financial asset classified as available for sale 12  

-
122 160
Fair value adjustment on available for sale investments   433 - (87)
 

Other comprehensive income for the period
net of tax
  516 (4) (301)
      
Total comprehensive income for the period 1,269(625)(1,761)
      
Profit/(loss) for the period attributable
to owners of the parent company
 753(621)(1,460)
     
Total comprehensive income attributable
to owners of the parent company
 1,269(625)(1,761)
      
Profit/(loss) per share (pence):    
Basic and diluted 90.09(0.09)(0.20)
       

Condensed consolidated balance sheet

Condensed consolidated interim statement of financial position

    

      
 

 
 Note30 June
2016

£'000
30 June
2015
£'000
31 December
2015
£'000
ASSETS      
Non-current assets        
Trade and other receivables   45 31 42
Available for sale investments 10 51 109 22
Intangible exploration assets 11 1,789 2,156 1,654
Land, property, plant and equipment   351 329 324
Investment in Joint Venture 6 3,239 2,704 2,830
         
Total non-current assets 5,4755,329 

4,872
         
Current assets       
Trade and other receivables 12 1,110 1,075 989
Other financial asset 13 - 97 14
Available for sale investments 10 575 - -
Cash and cash equivalents   822 55 319
Total current assets  

2,507
1,2271,322
Total Assets 7,9826,5566,194
         
EQUITY       
Called up share capital 14 5,805 5,686 5,797
Share premium 14 8,845 7,948 8,764
Other reserves   720 720 720
Share based payment reserve   578 578 578
Translation reserve   (452) (287) (535)
Retained earnings   (8,085) (8,386) (9,274)
Total equity attributable to equity holders
 of the parent
 7,411                 6,2596,050
         
Non - controlling Interest   - 3 3
 

Total equity
 7,4116,262 

6,053
LIABILITIES       
Current liabilities       
Trade and other payables   571 294 141
         
Total current liabilities   571                    294                      141
 

Total Equity and Liabilities
  7,9826,5566,194

Condensed consolidated interim statement of changes in equity


Condensed consolidated interim statement of changes in     Share  capital    Share premium  Other reservesShare options 

 

 

 

 

Trans
-lation
Reserve
Retained  losses 

 

 

 

 

Non-controlling interests
 

 

Total attributable to equity holder of
parent
 £'000                £'000£'000£'000 

£'000
£'000      £'000      £'000
         
Balance at 1 January 20155,6407,583720578(161)  (7,887)  36,747
         
Changes in equity
to 30 June 2015 
        
         
Loss for the period - - - - - (621) - (621)
Other comprehensive income - - - - (126) 122 - (4)
Total comprehensive income----(126)(499)-(625)
Issue of share capital 46 368 - - - - - 414
Share issue costs - (3) - - - - - (3)
Transactions with owners46365 - - - - -411
Balance at 30 June 20155,6867,948720578(287)(8,386)36,262
         
Changes in equity
to 31 December 2015

 
        
Loss for the period - - - - - (839) - (839)
Other comprehensive income

 
- - - - (248)  

(49)

 
- (297)
Total comprehensive income - - - - (248)(888)-(1,136)
Issue of share capital 111 889 - - - - - 1,000
Share issue costs - (73) - - - - - (73)
Transactions with owners111816-----927
Balance at 31 December 20155,7978,764720578(535)(9,274)36,053



                 
Changes in equity to
 30 June 2016
               
Profit for the period - - - - - 753 - 753
Other comprehensive income - - - - 83 433 - 516
Total comprehensive income----831,186-        1,269
Issue of share capital 8 81 - - - -     - 89
Non-controlling interest - share of net assets in subsidiary  

-
 

-
 

-
 

-
 

-
3 (3) -
Transactions with owners881---3(3)89
Balance at 30 June 20165,8058,845720578(452)(8,085)-7,411

Condensed consolidated interim statement of cash flows

     
  6 months to
30 June
2016
6 months to
30 June
2015
12 months to
31 December 2015
  £'000£'000£'000
         
Profit/(loss) for the period   1,143(621)(1,460)
Adjustments for:        
Depreciation   1 - 1
Disposal/write down of intangible exploration assets   50 5 521
Other financial asset charges   - 111 148
Foreign exchange movement   83 (126) (374)
Fair value adjustment on available for sale investments   (433) - 87
Investment income   (43) (33) (66)
Profit on disposal of available for sale investments   (626) - -
Changes in:        
Joint venture asset   (409) 191 65
Exchange movements in non-current assets   (56) 115 (132)
Trade and other receivables   123 (133) (3)
Trade and other payables   (102) 46 108
Cash used in group operations    

(269)
(445) (1,105)
Income tax paid   (60) - -
Net cash used in group operations (329)(445)(1,105)
 

 

Cash flows from investing activities
       
Purchase of land, property, plant and equipment   (10) (1) (13)
Payments for intangible assets    (136) (89) (260)
Investment income   43 33 66
Net cash used in investing activities   (103)(57)(207)
       
         
Cash flows from financing activities
Proceeds from disposal of available for sale investments
  832 -                         -
Proceeds from issue of share capital and swap repayments   103 513 1,587
Net cash proceeds from financing activities   935513 1,587
 

 

Net increase in cash and cash equivalents
  50311275
 

Cash and cash equivalents at the beginning of period
  319 44 44
 

Cash and cash equivalents at end of period
  82255 319


Notes to the interim financial statements for the six months ended 30 June 2016

1. General information

Ariana Resources Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain and whose registered office is Bridge House, London Bridge London SE1 9QR. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of gold and other minerals primarily in Turkey. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange.

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 2015, 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 2015 were approved by the Board of Directors on 3 June 2016 and delivered to the Registrar of Companies.  The financial information for the periods ended 30 June 2016 and 30 June 2015 are unaudited.

3. Significant accounting policies

The condensed interim financial statements have been prepared under the historical cost convention. 

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 2015.

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 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 obtaining additional financing and generating revenues sufficient to cover its operating costs. 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 Company raised £922,000 in the six month period from the consideration in cash and shares for the disposal of tenements in the Pilbara region of Western Australia and associated available for sale investments (£834,000) and the issue of new equity (£88,000) and the Directors remain confident that if future funding is required they will be able to raise this finance to meet the Group exploration and development programme and associated overhead cost.

4. Other income                                                                                                                                                           

  6 months to
30 June
2016
6 months to
30 June
2015
12 months to
31 December 2015
  £'000£'000£'000
Consideration in cash and shares for disposal of tenements in the Pilbara region of Western Australia

 
 

468
 

-
 

-
Exploration costs associated with tenements (50) --
Consultancy fees 7 - 15
 

 
425-                                                     15                

               

5. Finance cost                                                                                                                                                            

  6 months to
30 June
2016
6 months to
30 June
2015
12 months to
31 December 2015
  £'000£'000£'000
     
Swap charges on other financial assets - 111 148

  6. Interest in joint venture

The Group accounts for its joint venture with Proccea Construction Co in Zenit Madencilik San ve Tic AS ("Zenit")  using the equity method in accordance with IAS 28 (revised). At 30 June 2016 the Group has a 50% (30 June 2015: 69.58%) interest in Zenit.

 

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:-
 

Summarised statement of financial position30 June 201630 June 201531 December 2015
 £'000£'000£'000
Non-current assets 24,253 4,947 6,764
Current assets 821 263 10,097
Current and non-current liabilities (18,596) (1,324) (12,793)
Equity

 
6,478 3,886 4,068
 

Proportion of the Group's ownership

 
50% 69.58% 69.58%
 

Carrying amount of Investment in Joint Venture
3,2392,7042,830
    
Summarised statement of Profit and Loss30 June 201630 June 201531 December 2015
 

Other income
202 - 104
 

Administrative expenses - including exchange gains/(losses)
58 (372) (295)
 

Profit/(loss) for the period
260(372)(191)
Proportion of the Group`s ownership 50% 69.58% 69.58%
Group`s share of profit/(loss) for the period 130 (259) (133)
Increase in share of net assets following issue of shares in Zenit 279 68 68
Movement in interest in Joint Venture for the period409(191)(65)

7. 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 in Turkey and Lithium in Australia.      

  30 June 201630 June 201531 December 2015
   

 

Mining
Other reconciling items 

 

Group
 

 

Mining
Other reconciling items 

 

Group
 

 

Mining
Other reconciling items 

 

Group
  £'000£'000£'000£'000£'000£'000£'000£'000£'000
Administrative costs - (360) (360) - (343) (343) - (797) (797)
Exploration Expenditure - - - (9) - (9) (531) - (531)
Other income` 425 - 425 - - - 15 - 15
Profit on disposal
of available for
sale investments
 

626
 

-
 

626
 

-
 

-
 

-
 

-
 

-
 

-
Finance and swap costs - - - - (111) (111) - (148) (148)
Movement in interest in a joint venture 409 - 409 (191) - (191) (65) -(65)
Investment income - 43 43 - 33 33 - 66 66
Tax (390) - (390) - - - - - -
Profit/(loss) after tax 1,070 (317) 753 (200) (421) (621) (581) (879) (1,460)
                   
Assets                  
Segment assets 7,395 587 7,982 6,372 184 6,556 5,074 1,120 6,194
                   
Liabilities                  
Segment liabilities (398) (173) (571) (24) (270) (294) (24) (117) (141)

Reconciling items include non-mineral exploration costs and transactions between Group and associate companies.

Geographical segments

All of the Group`s mining assets and liabilities located primarily in Turkey.                          

  30 June 201630 June 201531 December 2015
 
 


    Turkey

United Kingdom




Group


Turkey

United Kingdom




Group


Turkey

United Kingdom




Group
  £'000£'000£'000£'000£'000£'000£'000£'000£'000
Carrying amount of segment
non-current assets
5,423 52 5,475 5,219 110 5,329 3,916 956 4,872

 

8. Taxation

               The Group`s corporation tax charge for the period arises on taxable profits arising in its Australian subsidiary, Asgard Metals Pty. Ltd. The Group has UK & Turkish losses carried forward on which no deferred tax asset is currently recognised in the financial statements as the recovery of the benefit is dependent on future profitability, the timing of which cannot be reasonably foreseen.

9. Profit per share

The calculation of basic profit per share is based on the profit after taxation attributable to ordinary shareholders of £753,000 divided by the weighted average number of shares in issue during the period, being 803,737,35

10 Available for sale investments

Company Non-current £'000 Current
£'000
Total
£'000
Valuation at 1 January 2015 and 30 June 2015 109 - 109
Fair value adjustment (87) - (87)
Valuation at 31 December 2015 22   22
Additions - 380 380
Disposals - (209) (209)
Fair value adjustment 29 404 433
Valuation at 30 June 2016 51 575 626
Net book value      
At 30 June 2016 51 575 626
At 31 December 2015 22 - 22
At 30 June 2015 109 - 109

The non-current available for sale investment represents the cost of the Group`s investment in Royal Road Minerals Limited, a company listed on the Toronto Venture Exchange.

During February 2016, the Group, through its Australian subsidiary, Asgard Metals Pty. Ltd., completed the sale of a package of tenements in the Pilbara region of Western Australia to Dakota Minerals Limited, a company listed on the Australian Stock Exchange. The initial transactions included cash payments totalling A$147,000 and 22,500,000 fully paid ordinary shares and this consideration is reflected in other income at a valuation of £468,000. Additionally, during the period, the Group generated a profit on the disposal of some of its shares in Dakota Minerals Limited amounting to £626,000.

As at 30 June 2016 due to increases in both investments market valuation, a fair value adjustment totalling £433,000 has been reflected in these accounts.

1. Intangible exploration assets

                                                                                                                                                                 

Six months ended 30 June 2015£'000
 

 
 
Opening net book value 1 January 2015 2,146
   
Additions 99

 
Costs written off (5)
   
Exchange movements (84)

 
Closing net book value 30 June 20152,156
  
Six months ended 31 December 2015 
 

 
 
Opening net book value 1 July 2015 2,156
   
Additions

 
161
Costs written off

 

Reallocation of project costs to Joint Venture Company
(516)

 

                  (135)

 
Exchange movements (12)
Closing net book value 31 December 20151,654
  
Six months ended 30 June 2016 
 

 
 
Opening net book value 1 January 2016 1,654
   
Additions

 
                    136
Disposals (50)
   
Exchange movements 49

 
Closing net book value 30 June 20161,789

12. Trade and other receivables

  30 June
2016
£`000
 

30 June
2015
£`000
   
31 December
2015
£`000
Amounts owed by Joint Venture Company
Other receivables
941
                        70
822
173
880
63
Prepayments 98 80 46
 

 
1,110

 
1,075
               
989
               

13. Other financial asset

The equity swap arrangement with Lanstead Capital L.P. came to an end following the receipt of their final capital repayment during March 2016. 
                       

  30 June
2016
£`000
 

30 June
2015
£`000
   
31 December
2015
£`000
 

Fair value recognised at start of period
 

14
 

263

 

 
263
 

Capital repayments
 

(14)
 

(177)
 

(261)
 

Swap charges

 
 

-
 

(111)
(148)
 

Surplus on revaluation at end of period

 
 

-
 

122
160
 

Fair value recognised at end of period
 

-
 

97

 
14

14. Called up share capital and share premium

Allotted, issued and fully paid ordinary 0.1p shares

 

 
 

Number of
Share
Capital
 

 

Deferred
Shares
 Share
Premium
  shares£'000£'000£'000
         
At 1 January 2015645,816,1416454,9957,583
         
Shares issued in period (net of expenses) 45,132,953 46 - 365
         
         
At 30 June 2015690,949,094

 
691

 
4,9957,948

 
     
Shares issued in period (net of expenses) 111,111,102 111 - 816
         
     
At 31 December 2015802,060,1968024,9958,764
         
Shares issued in period (net of expenses) 7,814,928

 
8 - 81
 

At 30 June 2016
809,875,124

 
 

810
 

4,995
 

8,845

 
   

15. Post period end event

During July 2016, the Company raised £475,000 before expenses through the issue of 31,666,666 new ordinary shares. The Group through its Australian subsidiary, Asgard Metals Pty. Ltd., has completed the sale of its interests in a package of tenements in the Northern Territory and Western Australia to Kingston Resources Limited ("Kingston"). The initial consideration included a cash payment to Asgard of A$20,000 and 6,600,000 fully paid ordinary shares in Kingston.

16. Approval of interim financial statements

The interim financial statements were approved by the Board of Directors on 30 September 2016.




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ariana Resources plc via Globenewswire

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