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Highlights
- Ariana Resources PLC (LSE:AAU) is an FTSE AIM All-Share listed company involved in gold-silver exploration and development.
- There was a significant increase in the group’s share value in the associate companies to GBP 15.3 million in FY22 versus GBP 11.4 million in FY21.
- AAU’s profit from continuing operations rose by 4.7% YoY to GBP 4.03 million in the reported period.
FTSE AIM All-Share listed Ariana Resources PLC (LSE:AAU) is involved in gold-silver exploration and development. The firm operates through two segments - mining and other reconciling goods. The mining segment is involved in acquisition, exploration, and development of mineral resources, while the reconciling segment includes non-mineral exploration costs and transactions between the company and associate firms.
AAU’s consolidated financial position in FY22
There was a significant increase in the group’s share value in the associate companies to GBP 15.3 million in FY22 versus GBP 11.4 million in FY21. Also, the profit from continuing operations rose by 4.7% YoY to GBP 4.03 million in the reported period from GBP 3.85 million in the previous corresponding period. This was primarily because of the drop in operating losses, rise in share of profits from the investments in the associate companies, and lower taxation, the company said.
Notably, Ariana Resources remained debt-free (in FY22) even when there was a hike in interest rates.
For the year FY22, the company posted 34.3% year-on-year growth in investments in associates accounted for using the equity method, thanks to the improved performance from the associate companies following increased production and higher average realized prices.
AAU’s standpoint for its projects
During FY22, Ariana Resources undertook the planned exploration activities and made new discoveries to strengthen its portfolio. The firm also advanced its processes of converting inferred mineral resources to indicated mineral resources at East Gouldie and Odyssey South.
With the updated mineral resource model at Wasamac, the firm has been able to achieve 14% growth in gold mineral reserves. The company aims to generate impressive results that will translate into improved cash flows and financial strength for the combined companies.
Production guidance for Kiziltepe Mine
Top 10 Shareholders
The top 10 shareholders collectively form ~20.35% of the total shareholdings. De'Villiers (Michael John) holds the maximum number of shares with ~5.65% shareholding, followed by Bingham (Steve) with ~5.03% shareholding, as depicted in the chart below.
Stock Price Performance
The stock has witnessed a fall of ~18.10% in the last three months and over the last six months, it has fallen by ~24.60%. The stock has a 52-week high and 52-week low of GBX 3.77 & 2.20, respectively and is currently trading below the average of 52-week high-low.
Data Source: EODHD/Others, Analysis done by Kalkine Group
Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
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 29 June 2023. The reference data in this report has been partly sourced from EODHD/Others.
