21st Feb 2020 11:03
(Alliance News) - Turkey-focused miner Ariana Resources PLC on Friday said the performance of its Kiziltepe gold mine in its last quarter was in line with expectations.
Kiziltepe is part of the Red Rabbit joint venture with Proccea Construction Co and is 50% owned by Ariana.
Ariana shares were trading 11% higher at 3.65 pence each on Friday morning in London.
For the quarter to the end of December, the company recorded income of USD12.8 million at an average realised price of USD1,484 per ounce, against an average revenue per ounce of USD1,736 due to silver credit. It added that the mine produced 7,318 ounces of gold during the quarter, all of which was sold.
Total annual production of 27,985 ounces resulted in income for 2019 recorded at USD45.1 million. For comparison, in 2018, the mine produced 27,110 ounces of gold.
"The performance of the Kiziltepe Mine remains fully in line with expectations and these record-breaking results for the fourth quarter of 2019 represent a fitting end to an operationally superb year. The sustained increase in gold price during the period contributed significantly to revenue, while operating cash cost per ounce remained low; mainly due to increased by-product silver credit," said Managing Director Kerim Sener.
Looking ahead, he added: "We are excited by the resource growth opportunities we have identified recently at Kiziltepe and the progress being made at Tavsan, which represents the opportunity to deliver an additional 30,000 ounces of gold per annum to the Red Rabbit Joint Venture, targeting an overall production of 50,000 ounces of gold per annum".
The Tavsan project is in western Turkey. It is also part of the Red Rabbit joint venture with Proccea Construction Co, and is 50% owned by Ariana.
By Ife Taiwo; [email protected]
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