24th Feb 2020 15:00
(Alliance News) - Mining investor Starvest PLC noted on Monday 2019 production at the Kilziltepe gold mine, owned by investee Ariana Resources PLC, exceeded guidance.
Starvest holds a 1.7% stake in Ariana, a London-listed gold miner focused on Turkey.
Kiziltepe is part of Ariana's Red Rabbit joint venture with Proccea Construction Co and is 50% owned by Ariana.
For 2019, the mine produced 27,985 ounces of gold, ahead of guidance of 25,000 ounces. In 2018, the mine produced 27,110 ounces of gold.
On Friday, Ariana said the 2019 gold production from the mine resulted in income of USD45.1 million.
Investor Starvest noted that at the end of 2019, 87% of the joint venture's construction capital loan of USD33 million had been repaid, with the remainder expected to be paid in April.
"We are pleased to see Ariana continuing to exceed production guidance at its Kiziltepe gold/silver operation against a background of cost reduction. Debt is expected to be retired by April 2020 resulting in an increased share of JV revenue of 51%," said Starvest Chief Executive & Chair Callum Baxter.
Starvest shares were trading 5.3% higher at 5.00 pence each on Monday afternoon in London. Ariana stock was trading 1.5% lower at 3.40 pence each.
By Ife Taiwo; [email protected]
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