28th Jul 2020 14:54
(Alliance News) - Ariana Resources PLC on Tuesday reported a profit surge during what was an "outstanding" year for the exploration and development company.
In 2019, pretax profit more than trebled to GBP6.9 million from GBP2.2 million. This was largely down to its share of profits from joint ventures rising to GBP7.9 million from GBP3.7 million.
Like the year before, it generated no revenue.
"This has been another outstanding year for Ariana, which has delivered production and profitability well above its plans," the company said.
The Kiziltepe gold mine, which holds a 50% stake in, achieved gold production of 27,985 ounces in 2019, 12% above guidance and at an average cost of USD507 per ounce.
Ariana added: "This, once again, places the Kiziltepe Mine comfortably amongst the lowest-cost gold producers in the world."
"We have started 2020 facing several new and unexpected circumstances. The developing trade-war between the USA and China, coupled with decadal lows in the oil price, have now been compounded by the Covid-19 virus pandemic originating in China."
"What this will mean for commodity markets and producers is, as yet, unknown. However, as a gold producer, we are expecting that demand for the ultimate form of money will continue unabated," the company continued.
Shares in the company were 1.7% lower at 4.92 pence each in London on Tuesday afternoon.
By Eric Cunha; [email protected]
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