16:00 Tue 28 Jul 2020
Ariana Resources PLC - FINAL RESULTS FOR THE YEAR 31 DECEMBER 2019
AIM: AAU
FINAL AUDITED RESULTS FOR THE YEAR
NOTICE OF ANNUAL GENERAL MEETING ("AGM")
The Report and Accounts will be posted to shareholders as applicable, and are available on the Company's website www.arianaresources.com, together with the Notice of AGM, and extracts are set out below.
The AGM will be held at 2nd Floor,
Chairman's Statement
Fellow shareholders,
I am pleased to report on the Company's audited results for the year ended
Production at the
At Kiziltepe, resource extension work was completed earlier this year, which is currently targeting an extension of the life of mine to a total of 10 years. In addition, further drilling and resource work is currently being undertaken at Kiziltepe to test down-dip extensions of the Arzu South vein with a view to assessing possible underground or additional open-pit potential. Similar resource extension and other project development work has been completed at Tavsan with a view to bringing this project into production from 2022. Salinbas has also seen extensive work during the year, achieving proof of concept on both the origin and potential extent of this very large mineral system. The area has attracted significant international interest following the spectacular recent drilling results from the nearby Hot Maden project, validating the perceptive decision by Ariana to continue investing in this region.
The new year started positively for the Company, with management able to report excellent first quarter production results and guidance for the year well above the feasibility plan. This sound start to the year has, however, been overshadowed by the scale and significance of the COVID-19 pandemic sweeping across the world, touching all of our lives. Having seen, early on in my mining career in
The business of mineral exploration is well versed in the process of defining uncertainty and risk and is also adept at managing these factors, evidenced by the way in which both current exploration and mining operations have adapted to this current climate of uncertainty. Our industry has been a long-term adopter of remote work and distributed working teams, and for a while it has been the norm for our work to be carried out in the field on one continent and be collated and analysed on another. Despite international travel restrictions, it is a great credit to our dedicated team that they have been able to carry on with normal work commitments, enabling us to meet all our ongoing work and reporting requirements within a reasonable timeframe. We will continue to review ways we might need to adapt in response to this worldwide crisis in order to mitigate risks and to continue working effectively.
The last financial year has been particularly good for gold but not quite so for silver. As the bulk of Ariana's production revenue (>85%) comes from gold, the lacklustre silver price in response to market sentiment has not had a material impact on overall revenue. Interestingly, the gold-silver ratio has for most of modern history been around 1 to 50, while the current ratio is closer 1 to 100; a marked departure from the norm, which is an indication that the silver price is overdue for a positive correction. The diverse industrial usage of silver is an additional driver for the market price firming, including the requirement for silver in medical and anti-viral/microbial settings. Copper, while not yet part of our current revenue stream, but part of our exploration portfolio, is also likely to see a price improvement following a post-pandemic price correction. It already has a broad base of demand in the evolving electrification of vehicles and other low-carbon technological developments, but is now being mooted as having anti-viral/microbial uses where it could be applied to frequently touched surfaces. This may well become an industry standard following the experience of our current crisis.
Meanwhile, the long-term trend for gold has been upwards for much of the last two decades and there is little to detract from this trajectory. Increasing levels of global uncertainty, marked differences between the paper and physical prices of precious metals, physical accumulation by hoarders, central banks and exchange-traded funds ('ETFs'), and the expansive nature of government spending will all undoubtedly result in hard currency inflation, all of which support the long-term price of our primary product, gold. Gold is, after all, a currency without a government. Ariana is well placed, both in terms of its balance sheet and its project portfolio of the correct metals, to prosper through the coming years.
With this long-term perspective in mind across our commodities of prime interest, the Company has been exceptionally busy on the exploration and development front during the past year. We have made significant progress across our pipeline of strategic projects in
Exploration like all other frontier industries is only as successful as its philosophy will allow it to be. It is on reflection of this that I think of how the legendary geologist J David Lowell, the world's best mine finder, expressed himself. He was noted for saying he was good at being wrong and was never afraid of that. Drilling out a 'duster' was nothing to be afraid of, as the mistake would have been not to try. You had to ignore existing dogma in order to have a chance of success. Above all else he was successful at finding some of the best mines in the world today, over one of the longest careers in our industry. It is particularly poignant that such a legendary man should pass at the ripe old age of 92 in the very year that we need such courage and inspiration. I think that we should all take a leaf out of his book as we step out into this changed new world to find the materials we need to build our future.
Like all companies, Ariana exists for the benefit of its stakeholders and in particular its shareholders, who must be rewarded through increasing market capitalisation and a potential dividend stream. Your Board remains focused on these outcomes and we are particularly pleased to see that the market price of Ariana shares is substantially higher than it was this time last year. The Board would particularly like to thank its shareholders for the close and personal interest you have shown in the Company over the last few years. We appreciate your support and we look forward to meeting you on future occasions. It seems unlikely we will be able to hold face-to-face meetings or the AGM as we have done before, and we are instead looking at participating in virtual events accordingly. Either way, we would like to ask you all to exercise your proxy votes well in advance of the AGM date, as it is unlikely that we will be able to accommodate online voting at this stage. We look forward to the day when we are all able to meet in the same room as before.
Last but not least I would like to thank our employees, professional advisors and our joint venture partners for their dedication and support in helping Ariana achieve its ongoing success.
Chairman
Financial Review
The Group's profit after tax grew by more than threefold in the year under review rising to
Aside from the performance of
Our net assets as recorded in the Statement of Financial Position have increased by
Overall this was a very satisfactory year for the Group from a financial perspective, and we look forward to building on these foundations to enhance our performance for our shareholders going forward.
Outlook
During 2019, Ariana consolidated its position as a sustainable mineral exploration and development enterprise. This has established a solid platform on which Ariana can develop its strategy, which is all the more important given the current global challenges.
We have started 2020 facing several new and unexpected circumstances. The developing trade-war between the
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. Unlike paper money, gold does not represent debt (a consequence of fractional-reserve banking), it presents no counterparty risk and acts as the only real hedge against inflation in the long term. It is no surprise that central banks around the world, particularly those which wish to maintain some resilience and independence outside of the US dollar denominated global order (including
Operationally we are well-positioned to take advantage of these unusual circumstances. Despite the current crisis, we have been fortunate in the commitment of our staff in the
We are a unique exploration and development company, with a strategy geared toward longevity, sustainability and the growth of value in the long-term, which is ultimately underpinned and driven by our exploration success. At the beginning of a new and uncertain decade, we look forward to the future and remain resolved on delivering upon the immutable certainty of pure gold.
Dr
Managing Director
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2019
Continuing operations |
Note |
2019 £'000 |
2018 £'000 |
|
|
|
|
Administrative costs |
|
(1,242) |
(1,355) |
General exploration expenditure |
|
(18) |
(153) |
Intangible exploration assets - written off |
11 |
(364) |
(181) |
Other gains |
4 |
627 |
- |
Other income |
|
61 |
- |
Operating loss |
5 |
(936) |
(1,689) |
Profit/(loss) on disposal of equity securities at FVOCI |
13 |
20 |
(2) |
Share of profit of Joint Venture accounted for using the equity method |
6 |
7,891 |
3,710 |
Investment income |
|
5 |
158 |
Profit before tax |
|
6,980 |
2,177 |
Taxation |
8 |
(46) |
- |
Profit for the year from continuing operations |
|
6,934 |
2,177 |
Earnings per share (pence) attributable to equity holders of the company |
|
|
|
Basic and diluted |
10 |
0.65 |
0.21 |
Other comprehensive income |
|
|
|
Items that are or may be reclassified subsequently to profit or loss: |
|
|
|
Exchange differences on translating foreign operations |
|
(1,774) |
(2,162) |
Items that will not be classified subsequently to profit or loss: |
|
|
|
Net change in fair value of equity securities at FVOCI |
13 |
49 |
(26) |
Other comprehensive loss for the year net of income tax |
|
(1,725) |
(2,188) |
Total comprehensive profit/(loss) for the year |
|
5,209 |
(11) |
The accompanying notes form part of these financial statements.
Consolidated Statement of Financial Position
For the year ended 31 December 2019
|
Note |
2019 £'000 |
2018 £'000 |
Assets Non-current assets |
|
|
|
Trade and other receivables |
15 |
93 |
83 |
Intangible exploration assets |
11a |
16,404 |
16,975 |
Intangible assets |
11b |
187 |
- |
Land, property, plant and equipment |
12 |
50 |
278 |
Investment in Joint Venture accounted for using the equity method |
6 |
7,768 |
3,968 |
Total non-current assets |
|
24,502 |
21,304 |
Current assets |
|
|
|
Trade and other receivables |
16 |
4,574 |
1,860 |
Equity securities at FVOCI |
13 |
- |
35 |
Cash and cash equivalents |
|
453 |
938 |
Total current assets |
|
5,027 |
2,833 |
Total assets |
|
29,529 |
24,137 |
Equity |
|
|
|
Called up share capital |
18 |
6,054 |
6,054 |
Share premium |
18 |
11,821 |
11,821 |
Other reserves |
|
720 |
720 |
Share based payments |
18 |
364 |
250 |
Translation reserve |
|
(5,970) |
(4,196) |
Retained earnings |
|
12,298 |
5,315 |
Total equity attributable to equity holders of the parent |
|
25,287 |
19,964 |
Total equity |
|
25,287 |
19,964 |
Liabilities |
|
|
|
Non-current liabilities |
|
|
|
Deferred tax liabilities |
19 |
2,273 |
2,273 |
Other financial liabilities |
20 |
1,651 |
1,651 |
Total non-current liabilities |
|
3,924 |
3,924 |
Current liabilities |
|
|
|
Trade and other payables |
17 |
318 |
249 |
Total current liabilities |
|
318 |
249 |
Total equity and liabilities |
|
29,529 |
24,137 |
The accompanying notes form part of these financial statements.
Company Statement of Financial Position
For the year ended 31 December 2019
|
Note |
2019 £'000 |
2018 £'000 |
Assets Non-current assets |
|
|
|
Trade and other receivables |
15 |
8,508 |
9,749 |
Investments in group undertakings |
14 |
365 |
337 |
Total non-current assets |
|
8,873 |
10,086 |
Current assets |
|
|
|
Trade and other receivables |
16 |
534 |
- |
Equity securities at FVOCI |
13 |
- |
35 |
Cash and cash equivalents |
|
- |
- |
Total current assets |
|
534 |
35 |
Total assets |
|
9,407 |
10,121 |
Equity |
|
|
|
Called up share capital |
18 |
6,054 |
6,054 |
Share premium |
18 |
11,821 |
11,821 |
Share based payments reserve |
18 |
364 |
250 |
Retained earnings |
|
(8,838) |
(8,010) |
Total equity |
|
9,401 |
10,115 |
Liabilities Current liabilities |
|
|
|
Trade and other payables |
17 |
6 |
6 |
Total current liabilities |
|
6 |
6 |
Total equity and liabilities |
|
9,407 |
10,121 |
Company's loss for the financial year |
|
828 |
907 |
The accompanying notes form part of these financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2019
|
Share capital £'000 |
Share premium £'000 |
Other reserves £'000 |
Share based payments reserve £'000 |
Translation reserve £'000 |
Retained earnings £'000 |
Total attributable to equity holders of parent £'000 |
|
Changes in equity to |
|
|
|
|
|
|
|
|
Balance at |
6,054 |
11,821 |
720 |
93 |
(2,034) |
3,071 |
19,725 |
|
Profit for the year |
- |
- |
- |
- |
- |
2,177 |
2,177 |
|
Other comprehensive income |
- |
- |
- |
- |
(2,162) |
(26) |
(2,188) |
|
Total comprehensive income |
- |
- |
- |
- |
(2,162) |
2,151 |
(11) |
|
Share options |
- |
- |
- |
250 |
- |
- |
250 |
|
Transfer of share options |
- |
- |
- |
(93) |
- |
93 |
- |
|
Transactions with owners |
- |
- |
- |
157 |
- |
93 |
250 |
|
Balance at |
6,054 |
11,821 |
720 |
250 |
(4,196) |
5,315 |
19,964 |
|
Changes in equity to |
|
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
- |
6,934 |
6,934 |
|
Other comprehensive income |
- |
- |
- |
- |
(1,774) |
49 |
(1,725) |
|
Total comprehensive income |
- |
- |
- |
- |
(1,774) |
6,983 |
5,209 |
|
Share options |
- |
- |
- |
114 |
- |
- |
114 |
|
Transactions with owners |
- |
- |
- |
114 |
- |
- |
114 |
|
Balance at |
6,054 |
11,821 |
720 |
364 |
(5,970) |
12,298 |
25,287 |
|
The accompanying notes form part of these financial statements.
Company Statement of Changes in Equity
For the year ended 31 December 2019
|
Share capital £'000 |
Share premium £'000 |
Share based payments reserve £'000 |
Retained earnings £'000 |
Total £'000 |
Changes in equity to |
|
|
|
|
|
Balance at |
6,054 |
11,821 |
93 |
(7,196) |
10,772 |
Loss for the year |
- |
- |
- |
(907) |
(907) |
Other comprehensive income |
- |
- |
- |
- |
- |
Total comprehensive income |
- |
- |
- |
(907) |
(907) |
Share options |
- |
- |
250 |
- |
250 |
Transfer of share options |
- |
- |
(93) |
93 |
- |
Transactions with owners |
- |
- |
157 |
93 |
250 |
Balance at |
6,054 |
11,821 |
250 |
(8,010) |
10,115 |
Changes in equity to |
|
|
|
|
|
Loss for the year |
- |
- |
- |
(828) |
(828) |
Other comprehensive income |
- |
- |
- |
- |
- |
Total comprehensive income |
- |
- |
- |
(828) |
(828) |
Share options |
- |
- |
114 |
- |
114 |
Transactions with owners |
- |
- |
114 |
- |
114 |
Balance at |
6,054 |
11,821 |
364 |
(8,838) |
9,401 |
Consolidated Statement of Cash Flows
For the year ended 31 December 2019
|
2019 £'000 |
2018 £'000 |
Cash flows from operating activities |
|
|
Profit for the year |
6,934 |
2,177 |
Adjustments for: |
|
|
Profit on disposal of land owning operations |
(627) |
- |
(Profit)/loss on disposal of equity securities at FVOCI |
(20) |
2 |
(Profit) on disposal of equipment |
(53) |
- |
Depreciation of non-current assets |
20 |
1 |
Write down of intangible exploration assets |
364 |
181 |
Fair value adjustments |
(49) |
26 |
Share of profit in Joint Venture |
(7,891) |
(3,710) |
Share based payments charge |
114 |
250 |
Investment income |
(5) |
(158) |
Income tax expense |
46 |
- |
Movement in working capital |
(1,167) |
(1,231) |
Decrease in trade and other receivables |
918 |
183 |
Increase/(decrease) in trade and other payables |
253 |
(49) |
Cash outflow from operating activities |
4 |
(1,097) |
Taxation paid |
(8) |
- |
Net cash from operating activities |
(4) |
(1,097) |
Cash flows from investing activities |
|
|
Purchase of land, property, plant and equipment |
(12) |
(36) |
Payments for intangible assets |
(516) |
(353) |
Proceeds from disposal of equity securities at FVOCI |
104 |
146 |
Proceeds from disposal of equipment |
55 |
- |
Dividends from Joint Venture |
- |
1,369 |
Investment income |
5 |
158 |
Net cash used in investing activities |
(364) |
1,284 |
Net (decrease)/increase in cash and cash equivalents |
(368) |
187 |
Cash and cash equivalents at beginning of year |
938 |
773 |
Exchange adjustment on cash and cash equivalents |
(117) |
(22) |
Cash and cash equivalents at end of year |
453 |
938 |
Company statement of cash flows
For the year ended 31 December 2019
All bank transactions are undertaken by
The accompanying selected notes form part of these financial statements. The full financial statements are being posted to shareholders and being made available as a digital document on the Company's website: www.arianaresources.com
Selected Notes to the Consolidated Financial Statements for the year ended
1. General Information
The Company's shares are listed on the Alternative Investment Market of the
The consolidated financial statements are presented in Pounds Sterling (£), which is the parent company's functional and presentation currency, and all values are rounded to the nearest thousand except where otherwise indicated. The financial information has been prepared on the historical cost basis modified to include revaluation to fair value of certain financial instruments and the recognition of net assets acquired including contingent liabilities assumed through business combinations at their fair value on the acquisition date modified by the revaluation of certain items, as stated in the accounting policies.
Basis of Preparation
The Group financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs") and effective for the Group's reporting for the year ended
The separate financial statements of the Company are presented as required by the Companies Act 2006. As permitted by that Act, the separate financial statements have been prepared in accordance with IFRS. These financial statements have been prepared under the historical cost convention (except for financial assets at FVOCI) and the accounting policies have been applied consistently throughout the period.
Going Concern
These financial statements have been prepared on the going concern basis.
The Directors are mindful that there is an ongoing need to monitor overheads and costs associated with delivering the exploration programme and to raise additional working capital to support the Group's specific activities on occasion. The Group has no bank facilities and has been meeting its working capital requirements from cash resources. At the year end the Group had cash and cash equivalents amounting to
The Directors have prepared cash flow forecasts for the Group for the period to
If this should not prove adequate to meet the Group's financial obligations, the Directors would be obliged to consider a variety of options as regards to the financing of the Group going forward, and this may include an equity raise via an open-offer if thought appropriate. Despite challenging capital markets for junior exploration and mining companies, the Company and Group have been successful historically in raising equity finance and in light of this, the directors have a reasonable expectation of securing sufficient funding to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the consolidated financial statements.
The Group believes there should be no significant material disruption to the mining operations in
In preparing these financial statements the Directors have given consideration to the above matters and on this basis they believe that it remains appropriate to prepare the financial statements on a going concern basis.
6. Share of profit of interest in Joint Venture
In
The liability of the Joint Venture includes current and non-current portions of a bank loan repayable to Turkiye Finans Katilim Bankasi A.S. Management does not foresee any significant restrictions on the ability of the Joint Venture to repay this loan.
The Group accounts for its Joint Venture with Proccea in
Principal place of business for
Financial information of the Joint Venture, based on its translated financial statements, and reconciliations with the carrying amount of the investment in the consolidated financial statements are set out below:
Statement of Comprehensive Income For the year ended |
2019 £'000 |
2018 £'000 |
|
|
|
Revenue |
35,337 |
29,254 |
Cost of sales |
(15,444) |
(13,548) |
Gross Profit |
19,893 |
15,706 |
Administrative expenses |
(1,636) |
(969) |
Operating profit |
18,257 |
14,737 |
Finance expenses including foreign exchange losses |
(4,762) |
(12,196) |
Finance income including foreign exchange gains |
2,667 |
4,552 |
Profit before tax |
16,162 |
7,093 |
Taxation charge/(credit) |
(380) |
327 |
Profit for the year |
15,782 |
7,420 |
Proportion of the Group's profit share |
50% |
50% |
Group's share of profit for the year |
7,891 |
3,710 |
Statement of financial position As at |
2019 £'000 |
2018 £'000 |
|
|
|
Assets Non-current assets |
|
|
Other receivables |
440 |
513 |
Intangible exploration assets |
837 |
370 |
|
23,275 |
24,538 |
Total non-current assets |
24,552 |
25,421 |
Current assets |
|
|
Cash and cash equivalents |
7,184 |
3,570 |
Trade and other receivables |
752 |
1,098 |
Inventories |
1,745 |
1,474 |
Other receivables, VAT and prepayments |
2,187 |
1,074 |
Total current assets |
11,868 |
7,216 |
Total assets |
36,420 |
32,637 |
Liabilities |
|
|
Non-current liabilities |
|
|
Borrowings |
3,241 |
8,959 |
Asset retirement obligation |
1,000 |
978 |
Total non-current liabilities |
4,241 |
9,937 |
Current liabilities |
|
|
Borrowings |
5,776 |
9,272 |
Trade payables |
1,883 |
2,081 |
Other payables (including shareholder loans) |
8,984 |
3,411 |
Total current liabilities |
16,643 |
14,764 |
Total liabilities |
20,884 |
24,701 |
Equity |
15,536 |
7,936 |
Proportion of the Group's profit share |
50% |
50% |
Carrying amount of investment in Joint Venture |
7,768 |
3,968 |
Movement in Equity - our share |
|
|
Opening balance |
3,968 |
2,467 |
Profit for the year |
7,891 |
3,710 |
Translation and other reserves |
(1,049) |
(840) |
Dividend receivable |
(3,042) |
(1,369) |
Closing balance |
7,768 |
3,968 |
10. Earnings per share on continuing operations
The calculation of basic profit per share is based on the profit attributable to ordinary shareholders of
11a. Intangible exploration assets
|
Deferred exploration expenditure £'000 |
Cost |
|
At |
17,527 |
Additions and capitalised depreciation |
369 |
Exchange movements |
(740) |
Expenditure written off |
(181) |
At |
16,975 |
Additions and capitalised depreciation |
516 |
Reclassification of expenditure |
(206) |
Exchange movements |
(517) |
Expenditure written off |
(364) |
At |
16,404 |
Net book value |
|
At |
17,527 |
At |
16,975 |
At |
16,404 |
None of the Group's intangible assets are owned by the Company.
On review of the likely recovery of the costs capitalised as intangible exploration assets management has determined that
The technical feasibility and commercial viability of extracting a mineral resource are not yet fully demonstrable in the above intangible exploration assets. These assets are not amortised, until technical feasibility and commercial viability is established. Intangible exploration costs written off represent costs relating to certain projects that are no longer considered economically viable or where exploration licences have been relinquished.
15. Non-current trade and other receivables
|
Group |
Company |
||
|
2019 £'000 |
2018 £'000 |
2019 £'000 |
2018 £'000 |
|
|
|
|
|
Amounts owed by Group undertakings |
- |
- |
8,508 |
9,749 |
Other receivables |
93 |
83 |
- |
- |
|
93 |
83 |
8,508 |
9,749 |
Other receivables falling due after more than one year represent amounts due from the government of
16. Trade and other receivables
|
Group |
Company |
||
|
2019 £'000 |
2018 £'000 |
2019 £'000 |
2018 £'000 |
|
|
|
|
|
Amounts owed by |
3,383 |
1,402 |
- |
- |
Other receivables |
598 |
442 |
- |
- |
Earn-In advances |
534 |
- |
534 |
- |
Prepayments |
59 |
16 |
- |
- |
|
4,574 |
1,860 |
534 |
- |
The amount repayable to Galata Madencilik San. ve Tic. Ltd. by the
Trade and other receivables include Earn-In advances of
The carrying values of other receivables approximate their fair values because these balances are expected to be cash settled in the near future.
17. Trade and other payables
|
Group |
Company |
||
|
2019 £'000 |
2018 £'000 |
2019 £'000 |
2018 £'000 |
|
|
|
|
|
Trade and other payables |
109 |
104 |
- |
- |
Social security and other taxes |
66 |
22 |
- |
- |
Other creditors and advances |
7 |
10 |
- |
- |
Accruals and deferred income |
136 |
113 |
6 |
6 |
|
318 |
249 |
6 |
6 |
The above listed payables are all unsecured. Due to the short-term nature of current payables, their carrying values approximate their fair value.
18. Called up share capital and premium
Allotted, issued and fully paid ordinary 0.1p shares |
Number |
Ordinary Shares £'000 |
Deferred shares £'000 |
Called up £'000 |
Share £'000 |
In issue at |
1,059,677,953 |
1,059 |
4,995 |
6,054 |
11,821 |
During 2013 the existing ordinary shares were sub-divided into one new ordinary share of
Fully paid Ordinary Shares carry one vote per share and carry the right to dividends. Deferred Shares have attached to them the following rights and restrictions:
they do not entitle the holders to receive any dividends and distributions;
they do not entitle the holders to receive notice or to attend or vote at General Meetings of the Company;
on return of capital on a winding up the holders of the Deferred Shares are only entitled to receive the amount paid up on such shares after the holders of the Ordinary Shares have received the sum of 0.1p for each ordinary share held by them and do not have any other right to participate in the assets of the Company.
Potential issue of ordinary shares
Share options
The Company issued 64,000,000 new options to directors and staff at an exercise price of
Date of grant |
Exercisable from |
Exercisable to |
Exercise price |
Number granted |
Options cancelled during the year |
Number at 31 |
Options |
|
|
|
|
|
|
|
|
|
1.55p |
64,000,000 |
- |
64,000,000 |
Total |
|
|
|
64,000,000 |
|
64,000,000 |
No options were exercised in the year. The fair value of services received in return for share options are measured by reference to the fair value of share options granted. The fair value of employee share options is measured using the Black-Scholes model. Measurement inputs and assumptions are as follows:
Costs associated with options issued on the
|
|
Share price when options issued |
1.25p |
Expected volatility (based on closing prices over the last 7 years) |
67.84% |
Expected life |
5 years |
Risk free rate |
0.75% |
Expected dividends |
0% |
The expected volatility is wholly based on the historic volatility (calculated based on the weighted average of the last 7 years of quotation).
|
Group and Company |
Share based payments reserve |
2019 £'000 |
At |
250 |
Charge during the year |
114 |
At |
364 |
As set out in note 2 the Group recognised an expense of
19. Deferred tax liabilities
|
Group |
Company |
||
|
2019 £'000 |
2018 £'000 |
2019 £'000 |
2018 £'000 |
Opening and closing deferred tax liability |
2,273 |
2,273 |
- |
- |
Deferred tax has been provided against the fair value uplift of intangible exploration assets that resulted from the business combination that happened in 2016.
20. Other financial liabilities
|
Group |
Company |
||
|
2019 £'000 |
2018 £'000 |
2019 £'000 |
2018 £'000 |
Contingent consideration payable |
1,651 |
1,651 |
- |
- |
The consideration above relates to a 2% net smelter returns royalty on the future production revenue at Salinbaş. This liability arose as a result of the business combination as noted in note 19 and will be remeasured at each reporting date and any gain or loss will be charged/(credited) through the income statement.
Given this provision is based on future production revenue, there are uncertainties relating to the timing and amount of this liability.
Note to the announcement
The financial information set out above does not constitute the Company's statutory accounts for the year ended
Contacts:
|
Tel: +44 (0) 20 7407 3616 |
|
|
|
|
|
|
|
Tel: +44 (0) 20 7628 3396 |
|
|
|
|
|
Tel: +44 (0) 20 7886 2500 |
|
|
|
|
|
Tel: +44 (0) 20 3004 9512 |
|
Editors' Note:
About
Ariana is an AIM-listed mineral exploration and development company operating in
The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co. Both assets are located in western
The 100% owned Salinbas Gold Project is located in north-eastern
Ariana is also earning-in to 50% of
For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.
Ends.
This information is provided by RNS, the news service of the
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE