Ariana Resources praises 'excellent' performance at Turkish goldmine

Ariana Resources on Friday reported an "excellent" quarterly performance at the Kiziltepe gold mine in Turkey after strong production and prices drove gross income upward.

For the three months ended 31 December, the exploration and development company produced and sold 7,517 ounces of gold from the mine, down from 7,588 ounces in the prior quarter and up from 4,501 ounces in the same quarter of last year, while gross income came in at $10.6m, up from $10.1m the prior quarter and $6.3m in the corresponding period last year.

Overall 2018 gross income from the mine, which is 50% owned by Ariana through the company's shareholding in Zenit Madencilik San. ve Tic. A.S.,was $37.8m on production of 27,110 ounces of gold.

Kerim Sener, managing director of Ariana, said: "These final results for Q4 2018 are fully in line with the excellent performance of the Kiziltepe Mine achieved during the prior two quarters. Operating cash cost per ounce remains low, mainly due to the maintenance of significant by-product silver credit and increased grades through the plant during the period."

The AIM traded company's cash cost for the quarter was estimated at $349 per ounce, with 49,717 tonnes of ore milled during the period at an average head grade of 5.23 g/t Au.

"As at the end of the quarter, 50% of the JV construction capital loan of $33m has been repaid, with the remaining balance to be repaid largely during 2019. Monthly intercompany loan repayments from the JV to our wholly owned subsidiary, Galata Madencilik San. ve Tic. Ltd., reached approximately $2.1m by the end of 2018," said Sener.

Ariana Resources' shares were up 2.46% at 2.00p at 1238 GMT.