Ariana Resources releases results for 2023, eyes strategic merger
Ariana Resources, which owns 61 per cent of UK-registered Venus Minerals, which focuses on copper-gold assets in Cyprus, has announced its final audited results for the year ended December 31, 2023.
The AIM-listed mineral exploration and development company, with interests in Africa and Europe, also revealed the date for its annual general meeting.
Ariana Resources reported a break-even position for 2023, compared to a £5 million profit in 2022, mainly due to a £4 million decline in Zenit’s profitability and increased operational costs.
In addition, administrative costs fell by £0.7m, but foreign exchange gains were £2m lower. The company also noted that the Turkish Lira’s decline impacted overall financial results.
Chairman Michael de Villiers reflected on the company’s achievements in 2023, describing it as a year of “remarkable progress and significant transformation” despite global economic challenges.
“Ariana Resources has demonstrated resilience, innovation and a commitment to sustainable growth, positioning us strongly for the future,” he said.
He highlighted the company’s initial 2.1 per cent interest in the feasibility-stage 1.8Moz Dokwe Gold Project in Zimbabwe, which led to a proposed merger with Rockover Holdings Limited.
“We are excited about the potential value-accretive opportunity this project presents for the Company and its shareholders,” de Villiers added.
Operationally, Ariana made substantial advancements across its portfolio, particularly in Turkey. The Kiziltepe Mine performed well, developing its fourth open pit on the Banu Vein.
“This has been a testament to the operational efficiencies and strategic investments made toward enhancing the mine’s capacity and productivity,” de Villiers noted.
The mine’s production exceeded initial projections by over 50,000oz of gold by the year-end.
The Tavsan Project also progressed significantly after a suspension period due to a local court ruling. The company resumed construction in July 2023, with initial gold production recorded post-period end.
“We currently anticipate the commencement of gold production from the Tavsan heap-leach towards the end of 2024,” de Villiers stated.
Moreover, exploration remains central to Ariana’s strategy. Collaborations with Ozaltin Holding and Proccea Construction have supported the Salinbas Project, leading to the discovery of new mineralised zones such as Hizarliyayla. Additionally, Western Tethyan Resources Limited, in partnership with Newmont, has made significant progress in Kosovo and North Macedonia, including drilling the first two holes into the Hertica prospect.
Financially, Ariana delivered results in line with expectations. The company saw lower ore grades and increased operational costs at Kiziltepe and Tavsan.
“Revenue recorded within Zenit Madencilik benefited from favourable commodity prices,” de Villiers noted, despite these challenges. The company maintained a healthy cash and gold bullion-backed bank position by year-end.
Sustainability and corporate responsibility were key focus areas in 2023. Ariana implemented several measures to reduce its environmental footprint, including energy-efficient practices and waste management programmes.
“Our dedicated office facilities in Ankara now generate more electricity than they consume, through the use of a solar power system installed during the year,” de Villiers said.
The company also introduced hybrid-electric vehicles to its fleet and supported various community development projects and educational and health initiatives in Turkey.
Looking ahead, Ariana aims to advance the Dokwe Gold Project into a feasibility study and continue its strategic focus on operational efficiencies and exploration projects.
The company plans to dual-list on the Australian Securities Exchange to attract investment and increase liquidity.
“We are confident that our financially disciplined, technology-driven approach and our robust project pipeline will drive sustainable growth and deliver long-term value for our shareholders,” de Villiers concluded.
Meanwhile, managing director Kerim Sener said that the “group remains in a strong financial position, with interests in a variety of exciting projects, and remains extremely well positioned for future growth”.
Sener also reflected on Ariana’s and Rockover’s parallel exploration journeys over the past two decades, stating that “both companies charted a remarkably similar course, achieving exploration success and developing innovative approaches”.
He further highlighted their near-identical discovery costs per resource ounce, underscoring their aligned vision.
Finally, Sener expressed anticipation for the merger with Rockover, aiming to “enhance value and create a sustainable future” together.