Ariana Resources announces final results for 2022

Highlights:

• Profit before tax for the year to December 2022 of £5.0 million.
• Continues to achieve profitability since 2016.
• Continues to be a self-sustaining, cash positive, debt free business model, which allows Ariana to leverage its strengths to grow its business.
• Increase in net share of the profit and losses of its associated investments, which increased by £1.5 million over the prior year.

Kerim Sener, Managing Director of Ariana Resources, commented: “The Consolidated Statement of Comprehensive Income sets out our very satisfactory results for the year, reflecting the success of the group on a number of fronts. Overall the Group has recorded a profit before tax for the year to December 2022 of £5.0 million. This was £2.7 million less than 2021, albeit that year benefited from the profit of £6.4 million on the part disposal of our Turkish interests. Administrative costs increased only marginally on the prior year, though as explained in note 4a, we have benefited from an exchange gain of £2.8 million arising on our US dollar cash balances this year, resulting in a reduction to £0.6 million as reported in the Statement. Otherwise the principal driver of our performance has been the increase in our net share of the profit and losses of our Associated investments, which increased by £1.5 million over the prior year. Once again the decline in value of the Turkish Lira has meant that we are showing an accounting loss through Other Comprehensive Income primarily on the translation of our opening balances of our overseas subsidiaries at closing rates of exchange. These losses are not realised unless we divest ourselves of such assets. The Consolidated Statement of Financial Position reflects the increase in the value of our share of our Associates, up from £11.4 million to £15.3 million in 2022, as set out in note 6. The main change was in the value of Zenit, in part reflecting the fact there was no dividend received this year, as funds were directed at developing Tavsan. Another major change this year is the decline in cash balances from £16.4 million to £9.4 m, comprising dividends paid by the Company to shareholders amounting to £4 million during the year as part of the special dividend arising on last year’s part disposal of our interests, and also an increase in tax payable in Turkey of £1.9 million due to corporation tax changing to becoming payable in advance there. A final point worthy of note is the transfer of £7.2 million from the Capital Reduction Reserve to boost Retained Earnings, and facilitate dividend payments in future years. Overall the Group has made great progress and the financial results reflect that performance, and our strong financial position gives us the platform to continue our development at pace.”

Read the article online at: https://www.globalminingreview.com/finance-business/08062023/ariana-resources-announces-final-results-for-2022/