6th Jun 2014 08:18
LONDON (Alliance News) - Ariana Resources PLC Friday released its 2013 results, but failed to include any figures in a release that only included a statement from the chairman.
That statement said the figures would be available on the company's website, but they weren't obviously available Friday morning.
Nonetheless, shares in the Anglo-Turkish exploration and mine development company were up 10% at 0.88 pence Friday morning, one of the biggest gains on AIM.
"Given that the Red Rabbit gold project is the most advanced in our portfolio, we have focused our efforts in this area. Our emphasis in 2013 was marked by systematically securing the requisite permits ahead of targeted production in the next 12 months," Managing Director Kerim Sener said in the chairman's statement.
Sener noted the sharp fall in the gold price in 2013, but said the company was still in good shape due to its low projected costs.
"I am pleased to say that with projected cash costs at around US$600/oz, the (Red Rabbit gold project) enjoys robust economic fundamentals even at low gold prices. The importance of this cannot be overstated ? by keeping our gold production costs low, we can support a long term sustainable and successful gold production project for the benefit of all stakeholders," he said.
However, Shore Capital said it thinks the company has a tight cash situation.
"We were unable to cast our eye over Ariana?s financial statements as these were omitted from its final results announcement and were absent from the company?s website at the time of writing. The cash situation is clearly tight, however: at the end of May 2014, Ariana issued 3.2 million shares at 0.9p/share ?in settlement of invoices for services?.
"According to Ariana, joint venture partner at the Red Rabbit joint venture Proccea ?successfully advanced the arrangements for local project finance for the mine construction?. This we interpreted as meaning that no such financing arrangements have as yet actually been concluded," Shore Capital added in a note to clients.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Ariana