Ariana Resources (LSE:AAU) — Investor Presentation

0:00 Good afternoon, and welcome to the ARIANA RESOURCES PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, can be submitted at any time via the Q and A tab situated in the right hand corner of your screen. Just click Q and A, scroll to the bottom, type your question and press send. Company may not be in a position to answer every question received during the meeting itself. Have the company review your questions submitted today and publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Kiran Senna, managing director and Marco DeVilla, chairman. Good afternoon. Good afternoon, and welcome to the post AGM presentation for ARIANA RESOURCES. Big welcome to all our shareholders that were able to attend today.

0:46 I will try to keep this presentation fairly brief, just keeping to the the main points, the main areas of advancement for the company, and then throw it open to questions so that we can spend more in the the question and answer session than perhaps on the presentation itself as we've done on a few other occasions using the IMC platform.

1:14 Obviously, I don't need to dwell on the board, but just a a very quick recap there of the directors present today, both in person and online. Very quick update snapshot of the current market position of the company, the share price and volume graph shown there on the top left hand side. Obviously, a we can draw attention to the fact that there's been a significant uplift in share price over recent years, and that's largely down to the very successful operations at the Kuzultepe site in Western Turkey. And particularly as we paid off the debt associated with that construction of the Kuzultepe mine, we saw a corresponding uplift in the share price. So, you know, that's the sort of sort of jumping ahead a little bit in the in terms of where we need to where we are in the presentation. But it's just worth emphasizing that as we bring another mine on stream in the case of Tarshan, we would expect similar sort of uplift as we go forward.

2:32 Also worth just drawing attention to the fact that in relatively recent times, Newmont

2:40 And And we'll And And I'll then talk about those in further detail as we go through the presentation.

3:03 So this provides a snapshot of some of the key performance indicators of the company, both operationally, financially in terms of risk profile and also on the environmental, social, governance side of the business. In terms of operations, I've already alluded to the fact that operations associated with our Khozl Tepe mine held in partnership with Azartem Holdings and Proser Construction. That's been going from strength to strength since operations commenced in 2017. We're now well into well coming through into our sixth year of operations there. And again, we're expected to meet our production guidance of 25,000 ounces of gold. And this is in part down to the strong performance metrics of the mine and in particular, the effect that the plant expansion had in the latter part of last year and into the current year.

4:06 In addition to our operations across Turkey, we obviously have other interests both regionally. Each of those, I'll talk about in further detail. But also through the Asgard Metals Fund, we run what we call the Project Catalyst Strategy. And again, I'll talk about that in further detail as we go through. The key point is that as an exploration and development company, we are profitable. And as a result of our exposure to operations and cash flow, organically self funding in in terms of our exploration and development activities, which is an unusual position for an exploration company to be in.

4:54 As a result of the cash flow and the performance of Kasl Tepe, we're in a very strong financial position. And, obviously, we completed a significant transaction in recent times associated with the partial divestment of our interest Turkey. And that has also enabled us to provide the first of our dividend, special dividend, and the last part of that last tranche of that is to be paid out in early October. Importantly, there's very little debt associated with the business as a whole, and that debt is actually housed at the the Zenith level. There's about 900,000 US dollars of debt remaining associated with that.

5:46 The other elements of the business I won't dwell on. I'll just jump on straight into the the main body of the presentation now. The most important thing to recognize is that the the company over fifteen plus years of operation as an AIM company, we we've very much gone from strength to strength, and we've been very, very we've tried to measure our performance on a number of different levels. And since we've gone into production, one of those metrics, relates to the way that we measure our performance on an ESG basis, is our carbon footprint. And we certainly, that basis alone, we're doing very well indeed at the 50% of the industry average.

6:42 And then in terms of operational cash costs, these cash costs have risen in recent times. That's in part due to the lower grades that we're encountering in some of the satellite pits that we've been mining in the last few years, but also relates to general increase in in costs associated with consumables in Turkey. And it's not, you know, a Turkey specific phenomenon. That's something that's occurring globally. But because of the plant expansion that we completed late last year, that has helped keep the cash cost levels down at very reasonable levels. So we're we're currently in the round of $6.50 US dollar per ounce range.

7:30 And then over the the entire length of the company's life, if you look at the performance of the company as an explorer, the best way of measuring that is the discovery cost per ounce of gold. And, again, we perform very well in that sense, and in fact, substantially less than the international peer group, which comes in at about 62 US dollars per ounce of gold versus ours at about 11 US dollars per ounce of gold. So on those key metrics, the company is continuing to perform and continuing to excel. And what does this all mean?

8:19 Well, in part, that links into the the current slide and the way that we've grown the company over time. And the this slide in a cartoonish sense demonstrates the increase in value on a relative basis of the company from its origins in 2005 as a listed company to the present day. The pie charts on that graph show the growth of individual components of our business. These are as I said, it's it's a cartoon. They're they're not absolute numbers necessarily, although they are derived from absolute numbers.

9:07 And it should demonstrates or tries to show how the different components of the company's interests have grown over time and how that relates to overall value. So as time has progressed, the company has gone from essentially an exploration only portfolio largely based around a single asset. As it was just an exploration play at that time. That was then drilled out, taken through feasibility, construction commenced, and then into production. So it went from essentially a single asset. So the the value was attributable to that single asset. That has gained our profile has gained further complexity over time.

9:55 Cypress was brought onboard our own into Venus Minerals, taking an important part there and also the growing Australian portfolio through Asgard Metals. And then most recently, the addition of Kosovo new assets of that the the we

10:26 showing the accelerating growth in value And of the company over time as a result of that expanding pie. So looking at that very thing geographically, the the company started off very much focused on Turkey alone. That was then joined by Australia in 2014 and then continued to develop in more recent times through the addition of Cypress and Kosovo. And then through Asgard Metals, the the Australian company, we have developed interests in Kazakhstan and Laos as well as in Australia itself.

11:19 And looking at the same portfolio, but this time in terms of a project pyramid, this really shows the pipeline of projects and where they sit in terms of relative risk and relative value. Again, very, very simplified diagram diagrammatic representation of the company. At the apex sits Zenith, so the lowest risk assets comprising the operating mine, Tauchan, the developing mine, and the Sun Mush development project. Sitting one tier beneath that, Venus Minerals and Western Tethyan Resources. These are the developing parts of the the project pipeline.

12:07 Each of those being its own entity with its own management team that are very much focused in very specific regions of operation in Cyprus and in Kosovo, Southeastern Europe, respectively. Sitting one rung underneath that is the Asgard Metals Fund, and we have three current investments, Panther Metals in Australia, PALAS RESOURCES in Kazakhstan, and PANNAMITE RESOURCES in Laos. Sitting beneath that are the project generation is effectively the project generation division of the company. This is the team, the exploration team that sits behind it all that are generating new opportunities for the company and identifying potential investments through the Asgard metal funds or other other I just lost my presentation there. Have you lost the presentation?

13:05 That must come back. The so identifying other opportunities for the company either through the Asgar Metals Fund or for further development in other parts of the project portfolio. In a little bit more detail, we see the main area of focus, which will remain the main area of focus for obvious reasons. We have an Ankara based team, and we have our regional teams in Kosovo and in Cyprus. We're obviously very familiar with the geology and the exploration potential of this region comprising as it does a significant part of the Tethyn metallogenic belt.

13:54 That belt is host to a number of major copper gold and associated porphyry and epithermal and indeed VMS systems. So we're very familiar with our geological backyard, and it makes sense for us to continue our main focus in this particular region. But having said that, we have subdivided that overall region so that it can be led by regional specific teams. So the red area, red outlined area, is being led by the Kosovo based team for Western Tethyan Resources. Cypress itself outlined in green is being led by the Venus Minerals team. While our Turkish entity, Galatamardincilik, runs Turkey. And, of course, we have our interest in Zenith Mardincilik, which owns the Kazultepe, Tamshan, and Solembash assets.

14:54 Looking at some of those assets in a little bit more detail, this is a simplified diagram that shows the relative size, so comparable size of individual projects. So each of those little sketches hold on. Let me just highlight that. So each of these little sketches here, if you can see what I'm doing there on screen, that each of those projects is represented by a a cartoon of the mineralization footprint. So it's the aerial footprint of the deposit, and they're all at the same scale.

15:42 So it gives people an indication of relative size. Kaslaltepe is our producing asset. Obviously, it's the only one from which we're recording revenue. And up until the end of last year, we've recorded a $177,000,000 of revenue for the Zenith joint venture. That sits on a current resource of 227,000 of gold. But then if you look at that in the context of the rest of the diagram, Tarshan is a larger deposit. Sullenbosch is larger again. Argala, the porphyry system, is further larger. Magellan is the Venus Minerals primary asset in Cyprus, somewhat smaller in terms of gold, but it is a significant copper deposit.

16:38 So this diagram really highlights the nature of the ARIANA RESOURCES portfolio, and it is notable that our smallest asset is currently the one producing. It's the currently the the main focus of value for the company, but it's those other elements of the portfolio that demonstrate future value.

17:11 I won't spend too much more time on the structure of Zenith Mira Lingeliq other than just stating that it is in partnership with Ozalten Holding and Prosea Construction. Prosea have separately been our partners in a prior joint venture since 2010 up until the end of twenty twenty when we completed the new deal that brought us all in holding in. Up until that time, we've been working in a fifty fifty partnership with PRCES. But PRCES, despite the the change in partnership structure, have been retained as managers of the new partnership despite PROSEA owning the same shareholding as ourselves, 23.5%.

18:05 It's probably just worth mentioning on that slide that overall within Zenit, the the company Zenit sits on a resource base of 2,100,000 ounces of gold. So it is very substantial, and there are opportunities to grow as you'll see in coming slides. So the Kuzeltepe mine located about two and a half hours drive out of Izmir to out of the Northeast Of Izmir. That, as I said, has been operating since 2017. It's been producing on average about 21,000 ounces a year. Some years, we do more than that, around 28,000 ounces. This year, as I've indicated, we're still expecting guidance to come in at 25,000 ounces.

18:57 I've already mentioned the cash cost profile, so no need to dwell on that. But worth just emphasizing that the enhanced throughput rates through the processing plant expansion is running at its nominal rate of 400,000 tons of ore per annum. That could be increased, that we've got capacity to do that with the the existing plant layout. But 400,000 tPA is is where it's at at the moment, and we're we're quite happy with that. Now based on the the resources and indeed reserve position at Kaslutepe. We've got since earlier this year, we had about two point five years of reserve left.

19:44 There's obviously opportunities to expand that reserve, and that's based on the existing inferred resources primarily. In addition to that, we have a further exploration target that needs to be drill tested in further depth. And we're expecting that in future years, we'll continue to see that reserve position expanded. But assuming that there is no more to be found, we're only going on the basis of the current reserve, then we'd see the mine winding up in around 2025 as we've previously indicated. This diagram we've we've had as a feature in this presentation, and we've referred to it on previous occasions.

20:34 But this shows an expected timeline of production. Production shown in blue. Hold on one moment. Let me just see if I just bring up the the pointer here. Are you able to see my pointer?

20:54 No, sir. We're not. We just need to click on it and drag it. So we click on that drawing. Yeah. Okay. So in in blue here, these blue bars here, that represents Kusel Tepe production. There's obviously a period from 2017 through to twenty twenty twenty twenty one where it was held in the 5050 partnership with PROSIR Construction. Production took a dip during that period of time incidentally. But then in 2021, the plant expansion kicked in. We've seen production rise once more to to these levels here. The the in 2022, 25,000 ounces. We'd imagine that that would continue to be maintained through 2023, '24 and into 2025 based on current reserves.

21:50 In orange, shown here up until 2030, That's the Tarshan production coming in. And currently, we remain on target to achieve first production from Tarshan in 2023 as we've expected for some time. Southern Busch is less well constrained as of, obviously, a lot more work that needs to be undertaken at Southern Busch. That's shown in green here, largely in this area.

22:22 And indeed, assuming Solenbosch does kick in as our third mine, that production will continue to be maintained in future years out in beyond 2030, so beyond there. So at this point in time, that that diagram is representative of our best understanding of how the production portfolio held in partnership in Turkey will play out. So on time, is some further work to be undertaken on the resource estimation. We're we're doing that at the moment.

23:07 We're hoping to provide further updates on that in due course in parallel with an update on where we are with the finance for the mine build. It's currently the mine build is currently being financed by Zenith itself, and that work has commenced in July this year. So assuming that we stick to the current construction schedule, we're expecting operations to commence production operations to commence in the second half of twenty twenty three. Based on the current resource estimate, there is an opportunity for an eight year life as we as we see it.

23:55 But as I said, there is further scope on the resource, and that's something that's underway at the moment.

24:02 So we we may have further improvements on that, and certainly in time as other exploration and development work is undertaken at the Tarsan site. Moving on to Sullenbash. As part of the deal that we completed with Ozalten and Prussia, Ozalten kicked in $8,000,000 into the Solenbosch project entity in Turkey, and we're utilizing that funding to continue exploration work at Solenbosch primarily. We've been waiting on some permits up until relatively recently, but all those permits have come in now for all three project licenses, Ardulla, Sunnabash, and Zaldi Islay. We've got one rig running at the moment.

24:47 It's been running since late last year, but that is expected to be joined by one possibly and further rig. So we may have three rigs running on this project depending on rig availability, and we plan to continue

25:01 that exploration work for the remainder of this year. But both Sonnenbosch and the related Ardala copper gold porphyry represents a substantial epithermal porphyry system, and there's lots of scope for further resource enhancements in time. Outside of the Zenith partnership, and this this is something that we are pursuing in our own right, and it does relate to the arrangement that we've reached with Newmont associated

25:40 with the database that we've secured from Newmont for Turkey and the wider region. We are pursuing new license acquisitions in Eastern And Southeastern Turkey that we're referring to as Project Leopard. There's not too much more to say on this at this point in time other than targeting work is well underway and actually nearing conclusion. And we are expecting to make up the first of our license applications in this area between now and the end of this year. Moving outside of Turkey, we now hold 50% of Venus Minerals. Venus has been pursuing an IPO on recent times. We were essentially good to go for June, but with the developments in international markets in that month, we we pulled our horns in.

26:38 So there's more to to come on that front. We're we're continuing to work on the APLICI JV separately. So there's some work that we're doing on the resource estimation for APLICI, and there'll be further announcements to be made on that. And that will further augment the the run to IPO for Venus Minerals, and we'll see where we stand in the coming months.

27:08 But most importantly, the APLICI JV that has been agreed with the AAU group in Cyprus by Venus represents a substantial opportunity to develop a new copper mine in Cyprus utilizing the SX EW, so solvent extraction electro wind process plant that was originally established in the nineteen nineties by an Australian company, OXIANA. That processing plant ran successfully for over twenty years. That was wound down in 2019. The processing plant was then packaged up and readied for reinstallation at Apliki.

27:55 So the joint venture on Apliki relates to the processing plant, which just needs to be reinstalled and the Apliki site, which contains the current resources there of eleven eleven million tonnes at point two five to 0.69%

28:12 copper. So it is a very exciting opportunity for both Venus and, of course, ourselves. Outside of that area, we over the last couple of years, we've been developing interests in Southeastern Europe through a nominal costumen base represented by Western Tethian Resources. Even more recently, we've brought onboard Newmont Corporation as a strategic investor into ARIANA and a strategic exploration partner into the Southeast European region. And that partnership is well underway and some exciting work being done there.

29:02 In recent months, Western Tethian Resources also secured the first of

29:07 their licenses in Kosovo. There are some other license applications in process at the moment. So the current holding of 300 kilometer squared of granted licenses will increase in in time in Kosovo, but we are also looking elsewhere within the broader Southeastern European region as well in those countries that were represented on that prior map that were that were outlined in red. The Asgar Metals Fund in Australia, that comprises primarily a discovery stage portfolio. So containing investments in listed and unlisted vehicles.

29:57 The listed vehicle currently represented by Panther Metals, which listed on ASX in December 2021.

30:05 That's developing a portfolio of gold and nickel cobalt assets in the Laverton region of Western Australia and gold assets in the Northern Territory Of Australia. The nickel cobalt asset is the flagship at this point in time. That was drilled successfully several months ago, and the first resource estimate was established for that, demonstrating that asset at Cogelia to be a substantial nickel cobalt laterite deposit, one one of the more outstanding deposits in Western Australia. Palace Resources represents a very large portfolio of copper gold and gold assets in Kazakhstan.

30:54 This is an earlier stage of exploration and the field work and associated activities have only relatively recently commenced on that portfolio. And the data is starting to come in from those field

31:10 activities. And there's some certainly some exciting initial indicators coming up from a number of those project areas, and there'll there'll be more to be said on that in due course. Our investment in AnaMite, also a private company, but this time in Laos, they've been drilling actively on a copper gold porphyry system in the sort of Northwestern part of Laos. It's a very interesting looking system. The initial drilling results are giving great hope that there are some extensions to the the porphyry system containing, as I said, copper and gold. So there'll be more to be said on on that in due course.

31:58 Our team are contributing to those exploration and development programs across that portfolio in exchange for shares, but we've also participated in a number of placings for those those companies. We're expecting to add to the Asgard Metals Fund portfolio in the coming months and indeed years. We'd like to see a good spread of discovery stage assets represented there. So just summing up, the company is a cash generative dividend paying exploration development company. We've done that on the back of profitable operations, producing gold and silver from a low cost base, most importantly.

32:47 We've demonstrated a track record of exploration development success,

32:52 and that's reflected in the discovery cost of gold per ounce. And that's also reflected in terms of other industry metrics, both production cost and carbon footprint. All our operations are driven on the basis of fundamental understanding of ESG. I mean, it's one thing I haven't dealt dealt with particularly in this presentation, but at many different levels within the organization, we're putting great emphasis on those aspects of our business, be it reforestation programs, be it ensuring that we can minimize our carbon footprint and and being good corporate citizens

33:38 and and doing the right things socially within our areas of operation, ensuring maximum employment of the the very capable people that we have the pleasure to work with. And underscoring all of this, and I think is a key reason for the success that we've had as an ex as an explorer. And one of the main reasons for our low discovery cost per ounce is that we've always taken a very innovative approach to the identification of new exploration project opportunities. And the way that we've chosen to explore those projects, that we've dealt with things in a very innovative and intuitive way, and that's all helped build the the success of the company over several years.

34:32 I'll just leave this slide up because I think this might help us deal with some of the questions that have come in as part of the IMC event. And at that stage, I'll just hand back over quickly to Paul. Fantastic. Karim, thank you indeed for the presentation. Ladies and gentlemen, please do continue to submit your question using the q and a tab situated on the right hand side of the screen. Just want the team to take a few moments to review those questions submitted today. I'd like to remind you that recording of the presentation along with a copy of the slides and the published Q and A can be accessed via your Investor Dashboard on the Investor e Company platform. Karim, as you can see, you've had a number of questions throughout today's presentation, together with those that were pre submitted for investors. And thank you all for submitting those questions. Perhaps if I may just ask you to read out the questions and give your responses where appropriate to do so, direct it to a member of the team.

35:22 We go to the presenters, Karim, can I ask you to go back to the slide that has the shareholdings on it and note that an omission is that one very large shareholder has been omitted by ARIANA, and that's Steve Bingen at 4.02%?

35:42 So he would sit just below Newmont Corporation. And I think that, that was just an option in the preparation of the slides, so that's noted. Thank you. Okay. So moving on to the questions. So we had several pre submitted questions, which we can run through now. We've already provided written responses to these questions, but I'm happy to read our responses. And then those responses will be published in any case following this event. We've also I've noticed that we've had a number of questions coming through while I've been speaking and having a very quick look

36:37 at those questions. A number of those questions, we've already already dealt with as part of the the presubmitted questions. So I'll I'll just run through the presubmitted questions. Question one, with Ozalten being the majority holder in Turkey, have they imposed or are there any restrictions when it comes to ARIANA being able to report on, say, drilling results at Salmonbuch or any other aspects of the JV work? The answer there are no restrictions on our ability to report on developments at Zennig Maudinglik. We report news to the market when the developments are material to the business or when they are strategic significance. Question two, what is the intended use for the cash pile? Is it to be invested in new projects used to continue a dividend policy or just left in the bank for a rainy day?

37:29 Answer. ARIANA will have returned circa £7,600,000 to shareholders within about twelve months, representing a significant proportion of the funds received following our partial divestments of interest in Turkey. The remaining funds are being applied to our interest in Cyprus, Kosovo and Australia, in addition to funding further exploration work in Turkey, largely independent of Zenith Myanjaliq. It is also prudent in these times of great uncertainty to retain a significant cash on our significant impact impact that business. When the company time is right and in a manner that best benefits the company has and its shareholders. A More on the dividend strategy is outlined in another question below.

38:19 Question three, can you tell us where we are with the Venus IPO and give us an update on when it is likely to list? Answer. Despite challenging market conditions, Venus is continuing to make solid progress towards its planned IPO on AIM, and we have provided recent update in late June to the market regarding its status. Further news will be forthcoming from Venus in due course. Question four, where are we with regard to Project Leopard? The work being undertaken on Project Leopard has been extensive in recent months involving the direct input 10 team members, and the company is preparing to submit license applications soon. Further news on this aspect of the company strategy will be provided when relevant. Question five, when why do you retain Panmure Gordon as a broker?

39:07 As previously outlined, Panmure Gordon are appointed by the company as a reputable broker with institutional outreach, which represents an important cornerstone for the way in which our business is promoted. That said, in the interest of our shareholders, we continue to evaluate options that we feel would best enable us to achieve maximum growth of the business, whether that be in place of or in addition to Premier Gordon's remit. Question six. Why is news from Sullenbosch taking so long? Answer, we will be reporting the results of the current program of drilling following its conclusion. The program has been ongoing since late twenty twenty one. And now that we've received forestry permits across the project licenses, we're expecting to continue drilling for the remainder of the year as part of an expanded program of work.

39:53 Question seven. Why does the company no longer present in London? Answer. The company did present in person in London in early July and also attended a number of events early in the year, including one in May and another in June. Prior to that, we've been limited by COVID restrictions. Also, the generally accepted format of company presentations has changed, and we now prefer to present to a global audience via the IMC platforms rather than at specific in person events, which have certain limitations. Such online platforms have a much wider reach, a more cost effective, allow for a greater degree of useful and importantly recorded interaction with shareholders and match our ESG objectives. These are in addition to the AGM, which is held in person.

40:39 Question eight. According to the last reserve statement in February 2022, Kuslethep had about 2.5 of life remaining. Is there any change to this plan? Answer. The last reserve estimate was published following an extensive drilling program conducted in 2021. It accurately reflects the expected reserves remaining to be mined across the Kusoteppe sector. And as a result, the mine will cease operations in 2025 unless further reserves are established in the meantime. Zenit is conducting a major new drilling program with the intention of further extending mine life. It is important to note that Khozl Tepe has already produced more gold than its feasibility study and will likely run beyond its planned eight year mine life. The company currently envisages the total mine life to be extended to ten years to 2026 with the development of further resources and reserves.

41:32 It is important to recognize that in this context, there are still significant inferred resources and our exploration target that still remain to be drill tested in full. Question nine. When will we hear more about the dividend strategy beyond the last tranche of the special dividend? Our ability to pay ongoing dividends depends on several factors, not least the Kaushan mine development plan. We are working on a strategy to continue to pay dividends, but this will be dependent on the continued performance of the Zenith operations in Turkey. Question 10. Does the company have plans to add another nonexecutive director to the Board? Answer. This question is addressed in our annual report and in other q and a sessions that we've completed in recent times.

42:19 There is no change to our view that we will add to the board when appropriate to do so, and the expertise we seek will either be in mineral processing or in ESG, being the two most critical long term strategic elements of our business, which are not currently addressed at board level. Question 11. Can you comment on the future development strategy of the business and its objective to grow its market capitalization significantly within the next ten years? Answer. The strategic goals of the company are summarized in both our annual report and in our corporate presentation. We've developed a clear strategy and pipeline of exploration development projects on which this strategy is based. Page four of our annual report provides the most succinct summary of the strategy and of its depth. ARIANA has already grown from a company with an exploration only portfolio and a market capitalization of £3,000,000 to to one with interest in multiple highly prospective assets, one producing, and a market capitalization over 12x greater than that at IPO.

43:18 Even if only one other of our assets within our pipeline becomes producing mine, we might expect that our market capitalization will at least double again. By having multiple interests, ARIANA shareholders are derisked but retain the value upside. Our strategy also allows us to provide our expertise to assist with the growth of the projects companies in which we're invested. The more options, the greater the opportunity, and our strategy is aligned squarely with the same. Question 12. Developments of Tamshan are clearly advancing at at pace. Can you tell us any more about progress there? We are very pleased with the progress at Tamshan, and seeing the earth moving equipment on-site in recent weeks was a fantastic site. This is testament to the solid steps being taken by the Zenith team who've put in huge effort to commence the construction of the mine as soon as it was possible to do so. In the meantime, we are still working on a new resource estimate to support the finalization of the feasibility study.

44:15 Further news on this and other aspects of the Tarshan mine development program will be announced in due course. Question 13. What do you consider to be the reasons for the recent lack of share price performance? Answer. The recent share price has been disappointing, yet in line with the market, which has gone through a challenging period, not only for our more direct peers, but also majors and the performance of AIM generally. Despite this, over the past five years, we've significantly outperformed each of these comparables. We feel that the market still largely bases ARIANA's value on the production from Kusltepe despite the portfolio being far more diverse, the exciting growth potential that this represents. We feel, however, that getting Tarmshan into production as our second mine will further demonstrate ARIANA's strategy.

45:04 With the continued development of our assets over time, this value will no doubt be recognized, and the share price will reflect this. So that was the answers to the submitted questions, 13 of them. And I'll just take another quick look through the questions that are coming live. Yes, Karim. In addition to your point about brokers, I think it's worth mentioning that you and I have both been speaking to brokers in London, so we are actively reviewing it at this time. Yes. From the questions I've seen that have come in on the q and a, I'm not sure if I can scroll up and down.

45:53 I'm very nervous of oh, yes. I can. There there's one question here from David l that actually relates to that slide that I had right at the end. And, it's The one I was thinking. Yep. Reflects one of the other questions and answers that I gave. But the question from David is why do you think the market values ARIANA at 40% less than it did two years ago? So, yes, I mean, you could look at it like that, and that would be a correct observation. There's that's exactly what has happened. But that's looking at a very narrow window in the company's history and in its development.

46:48 And if you look at the share price graph that we provide on screen there, that shows ARIANA's share price performance in relation to its direct peer group. So the direct peer group being other producers or near producers, some dividend paying, and a a number within our sort of region of operations or with a similar sort of risk profile. So that some of the companies that we can most easily be related to. Now over that window of time, they're selected at five years five years representing really the the window of time from this commencement of commercial production at Kaslutepe going forward.

47:42 And, also, coincidentally, that's a window of time that matches some of the other companies within that peer peer group as well. Not all, but but some of them. You can see a marked increase in ARIANA's share price over that period of time, reflecting reflecting what what I I was was saying earlier during the presentation as we continued to produce because of that pay down debt. And of course, the market itself was doing well, got buoyed by the gold price through that period. We we saw that uplift that reached a peak in around July, August of twenty twenty as did a number of other companies within that peer group. But then likewise, as with other companies in the peer group and the wider market and given fluctuations in the gold price, that our share price, as with others, has drifted downwards.

48:41 So if this is nothing unique to ARIANA, this is the market talking, and it needs to be understood in that context. I think it's fair to say that we're not the only one who's been deselected in the market, and you've just highlighted that with that graph. But looking at some of the major producers, they've similarly suffered quite substantial devaluations in the last while. Correct. There's a question from Will m that touches on a couple of different topics. The question is, as a long term investor, I'm very happy with the overall trajectory of the business.

49:32 I'm concerned about the presentation of the launch of Tamshan and how commencement of mine construction was launched to the public and how lackluster the broker notes are. Notably, you talk about growth, but where is this projected in broker notes who currently value the shares at about 5p? Do you agree? And if so, what is being done to address this? So a couple of subjects there. One is in relation to the developments at Tarshan. So Tarshan is will be the the second producing asset within the Zenith partnership. Our primary focus within Zenith obviously continues to be.

50:18 Development program has been dependent on receiving various permits, not least forestry permits, but there are other permits as well. Those permits on the forestry side have been received. There are some permits that will be required before we reach commercial production. But as we've seen at Kuselkepe, other permits relating to, for instance, health and safety and a temporary operating permit, those permits are can only be received later on in the development program. They're not permits that you can receive at this point in time. So you have to go through a process. Critical to that was the environmental impact assessment positive approval, which was received, and then the associated permitting on forestry.

51:13 So is proceeding according to plan as as I was showing in the the graph, the timeline of our assets and the production that we're expecting from each of those assets over time. So it's very much on time and on on target, and we've gone through all those hurdles. The same hurdles that we went through at. There's nothing that's different about how we're developing. And we previous previously reported on each of those hurdles. The EIA was reported on, the forestry permits were reported on, and now the commencement of construction has been reported on. So I don't think that we're lacking information in terms of where we are in the development program for Tamshan.

52:09 Then the second point was associated with our broker. We previously provided a a note about that in a previous question. Question. So there's probably not much more that we need to say on that other than perhaps the point about valuation. The the broker notes obviously take into account current operations, and they project forward to future operations. And they have to put a risk valuation on those future operations and how much they're risked or how they're discounted within their cash flow models is up to them. They've got their own way of doing that.

52:56 We've got our own thoughts about what that should be. But at the end of the day, that they have to apply a particular pro set of pro form a metric metrics to their analysis, and that is exactly what they're doing. So that for their clients, they're able to sort of compare apples with apples rather than apples with oranges. They they can't do things in different ways to suit different companies. So I don't I don't think that that's a a particular problem. It is a valuation produced by an an analyst. Other analysts may come up with different numbers. But what is the opportunity here? And we get other analysts on the card. We will see different valuations, and I think that's when people can see there is more to the story than just one analyst's view.

53:51 Yeah. But the the you know, all analysts they're they're estimates. They're they're not And some analysts don't understand operation as a valuation. Yeah. The the the only valuation that matters is the the valuation that the market gives the company. Yeah. Kerem, could we break and take some questions from the floor in the room? Yeah. Gentlemen, would you yes. Couple couple if I I may. One at a time. Yes. What's the significance of keeping ARIA regional office on page two of the? I'll repeat the question so everyone can hear it.

54:36 It's the reference to ARIANA on page two of our annual report. What is the Harari office? Yeah. So I'm making this question. By our GIS analyst who's based in Harari, a Zimbabwean geoscientist. It is our regional office primarily for Asgard related activities. Okay. Thank you. Did that answer your question? Very nicely on the second question. Yes. Please carry on. Metals fund. Seemed to me that that would make a pretty good investment trust and bringing a lot more funding So you're proposing that Asgard Metals would make an attractive investment fund to attract money? Yes.

55:30 Well, with investors. Kerem, did you hear that? Yeah. Yeah. I I got the sense of that. Yes. I agree. We agree, but that it's not not necessarily part of our current business plan just yet. I need those here as well. Yeah. So I'll check that. Yeah. Thank you for those. Any other questions from the floor? Well, I've got quite a few, but I don't know whether you want me to deal with them now. Or One at a time. Okay. I I think with the question, the answers that we've had today from Kieran won't be that well received in many cases because they're too general, and I think they haven't really necessarily specifically answered. I was pleased to see that you were definitely saying that TAPSAN is not delayed because of permitting.

56:19 So I think I can take that as being one of my questions that's been been asked, which I'm very pleased today. With regards to Salombas, I don't see any comments about the appreciable acceleration that we're expecting from the joint venture with. I wonder whether you can comment on why we're not seeing that. So to frame your question concisely, you want to know what is the contribution the group is making to the development of Sunnenbosch? Yep. Is that correct? Yes. And why Okay. Stop. Stop. Stop with that. Why aren't we hearing any progress reports on such an important asset, which was actually started drilling at the end of last year, and here we are halfway through the year. So I don't know anything about that at all.

57:08 K. Karim, did you get the gist of that? Yep. Yeah. I did. So part of that question relates to what is contributing. Well, they've contributed 8,000,000 US dollars in cash to the entity that holds the wider Southern Bash asset. So that's the the three prospect areas that I counted off earlier, Ardala, Southern Bash, and Hazanliayla. We're currently drilling on Sullenbash. It was the only area that we were able to drill from late last year because we did not have the necessary forestry permits for the wider drilling program secured at that time, but we needed to get started as as Alton was obviously keen to see their money being put to good use.

58:00 So we felt that we needed to make a start on that late last year even though the time was not really optimal for drilling. I mean, it was midwinter. Yep. And as a result of that, it was very, very slow going with that drilling program. It own has only really started speeding up in the summer months of this year. There is a backlog of samples at the assay laboratory and in indeed at the depot. All of that is being assessed. We are, as I said, now expecting to up the pace on that drilling program, and that is a result of now having received the forestry permits that we needed for the wider program at areas like Ardala and Hazanliayla as well as as well as Sun And Busch itself. So there were certain forestry permits that we needed there too. So we can now commence with the the original wider program that we'd established.

58:58 So there's a huge amount of work that's been going on in the background, and the results of that work will be reported when they're determined to be material to the business. Did that answer your question? So the question is what are they bringing in addition to the money into the operations of Sunnenbosch? So do not provide any input operationally. The Zenith partnership is managed by PRCESEA.

59:47 Mhmm. And Zenith itself, from board level comprises two Ozalten representatives. Mhmm. One representative from PRCES, one representative from ARIANA. Mhmm. So four four four board members, and then sitting underneath that is the management team of Zenith. And the management team of Zenith comprises the management at the Kasluteppe mine site, and it also includes the exploration team attached to Zenith. Now That's not our exploration team. That's Zenith's own exploration team, which are now managing three exploration programs at Khuzeltepe, at Tauschan, and at Salembash.

1:00:34 On our side, we we provide exploration input and advice into the partnership. On their side provide commercial advice, and they've been particularly helpful as we've gone through various stages of permitting, be they local permitting for for drilling programs or be they more substantial permitting matters relating to mine development such as at Tarshan? Okay. So for me to summarize, they've actually assisted in the background with permitting because they have a tremendous amount of experience in getting permitting from their construction background. Correct. Okay.

1:01:19 I I think that's answered your question. Okay. Any other questions? The life of mine, chairman, I I was pleased to hear hear him talk about this in some detail because this was this issue was raised in the in the last flash note from which raised the potential for a hiatus in production if Tafsan is is delayed further and we aren't able to extend the life of the Kiseltepi mine. As you know, we'll come on to this question in a minute about Panama Gordon, but they raised this as quite a negative issue in the minds of investors. And I think that that issue needs to be constantly worked at to ensure that investors don't see this possible period when there may be no production whatsoever.

1:02:13 So you're alluding to the fact that there's the impression that there will be no production from Kisl Tepe while Tarshan is coming on stream. Danger that that could happen, which was raised by Panama Gordon. Well, Panama Gordon got it wrong is the first point. And the second point, Karim, I think you've addressed the fact that Kisl Tepe has got quite a considerable number of years to go in potential and two and a half years for certain. Yeah. I I wouldn't say that Panmure Gordon got it wrong. They they got it right in terms of the reserves. Reserves. So the the last reserve statement was two and a half years of reserves at the enhanced throughput rate of 400,000 tonnes of ore per annum.

1:02:58 Well, for the fact, there's a substantial drilling program ongoing for extending life of mine. Correct. Yeah. So so in in that sense, the broken note was not incorrect. That was absolutely correct. Mhmm. But, like, I mean, it's part of this natural process of extending life of mine, something that we've been doing for the last several years. You know, if we hadn't been doing in fact, you know, you could wind it right back. I mean, even before Khozl Tepe was built, we were drilling at Khozl Tepe in two thousand fifteen, sixteen, seventeen, and and we were doing that at a time when the mine was not even in production. And if we hadn't done that drilling, we wouldn't even have the reserves that we're talking about today.

1:03:46 So that's that's the point. We've always been extending that reserve position through drilling. That's the only way to do it. So, you know, two and a half years, two years, whatever it is, you know, we've got further inferred resources. And as I said, the exploration target, which is you know, an exploration target is not well defined, but it has enough information about it geologically to suggest that it might convert to a resource. And those are areas that we're now drilling as part of the current program. So we've had input into that program, into the design of that program, and the Zenith exploration resource drilling team are continuing to execute that program.

1:04:36 So all being well, we will continue to convert existing resources, you know, be they inferred or otherwise, eventually into further reserves. So that's that's expected. That's what we've seen in the past. I'm sure that we'll see further extensions as we go forward. And that's you know, I'm talking specifically about Kusltepe, but there are other areas that have barely had any drill testing undertaken on them, like Kepes West, where we've got an inferred resource. We've got Karakavak. Again, that we that's more of an exploration target, but a very extensive vein system that has barely been drill tested. Then there's Kuzu Chukur on which we've got a measured indicated inferred resource of about twenty twenty one thousand ounces.

1:05:29 And and we we have Ivindi, which is an inferred resource. So there there are a lot of options within the wider Khozl Tepe sector to continuing to expand the resource base. Karim, we just had another gentleman join the room. It's Dennis. So he's joining. All right. Very good. Any more questions from the floor? Yes, mister chairman. Yes. Mhmm. Well, I'm pleased that is answering that question, but, obviously, it's a financial issue for the board to be aware of in terms of the communication because I think this is an issue that is of concern to investors. If we go on to pan go back to Panama Raw, I mean, they just visited the Red Rabbit site, and and then they produce this flash note, which had the accuracies in it and also negative undertones, which it seems as though our house broker is actually working against us as a company rather than for us. And we find it difficult, and I'm not just speaking for myself, but for other significant shareholders as to why the company continues to put up with a broker that is provoked producing that kind of negative information out to the marketplace.

1:06:46 And it wasn't until we commented upon this that that broker note was was correctly and put back out into the market before Mister Griffith, expressing an opinion rather than asking a question. So you've done that. Want question as to why the why does the company continue to support Panama Norton as a house broker when we have seen umpteen examples of poor performance from them, and yet we continue to support them. I don't understand it. I mentioned to Chris recently about I'm aware you've written to him, you've written to all of us, and you send me daily text messages as well. But I think you've now said enough on that subject. Can you move on to a substantial question, or I can ask other questions from the floor? Are you not going to say why you put in support We've addressed the note that that point on brokers in our reply, we're and talking to other brokers, and that's all I'm gonna say on it right now.

1:07:39 Unless, Jeremy, you want to say anything else? Not just myself, but a number of other substantial shareholders feel that the board needs to be strengthened, and in particular, in respect of communication to the marketplace. Here we are. We've we've seen this this complete collapse in the share price, which I know has been Once again, you are expressing an opinion, not asking a question. Do you have a question to ask? Otherwise, I'm moving on. Succession, which is an issue as in itself, but also the strength of the board in relation maybe to things like And communications in the marketplace. We don't we haven't had success in building new shareholders or in terms of building and bringing on new institutional shareholders.

1:08:35 Again, this is maybe down to panel, and I don't know. But it's obviously down to our communications as a company, and we don't feel that necessarily since the transaction that this is either being well communicated or the market hasn't understood it or, in fact, hasn't even liked it. But there is definitely seems to be a gap here that needs to be fulfilled somehow. Does the board accept that? Karim, did you hear all of that? I I didn't hear all of it completely clearly because the sound's coming from the background. But I understand there's a a view that the transaction that we completed with Ozalt and and PRCESIA might not have been understood by the market or its its value to the business is not reflected in the current share price.

1:09:31 Now in in terms of whether the whether the transaction that we completed is understood and supported, well, it very much was. So in the so going back to to last year, early last year, after the deal was concluded with Ozalten and PROSEA, we had to go through a final process of competition authority approval in Turkey. Once that was done, we then had to go through a separate court process in The UK, which related to our ability to restructure our capital so that we could go ahead and start paying the special dividend. Now as part of that, what came out of the circular and the associated general meeting, of the shareholders that voted at that meeting, a 100% were in support of the transaction.

1:10:37 A 100%. Yeah. Not a single dissenting voice. So, you know, the idea that the transaction is not understood or has not correctly reflected in the the positive valuation is completely incorrect. And and in fact, we saw that in the rising that also supported that rising share price through 2020 and in through to 2021. What happened after that is market related. As the current slide shows, it's entirely market related. It has got nothing to do with the company. That's fine, Karim. I think you've addressed it. But I think the point that was being made is John Griffith wants to know if we're going to take more board members on. You've already answered that question, so I don't think that question deserves any more discussion.

1:11:30 Do you have a question? IPO. So I appreciate it's more difficult times for an IPO important, is that going to delay the production as the week as the the IPO's delayed? It was meant to be up So which IPO are you talking about? Sorry. Venus. So Venus IPO, will that delay production? From Venus. From from Venus. So Venus' operations. So it's a question about Venus, the timing of the IPO, and production from those operations. Okay. So like our other project level interests, we hold a 50% of of Venus. So we're not in a controlling position on Venus or never intended to be in a controlling position on Venus.

1:12:21 I'm the only board representative from the ARIANA side on the Venus board. Venus is its own company. Venus needs to do what it needs to do to get listed. And that is a process, and it's a process that we, as the ARIANA board, are fully in support of. Yeah. So in terms of timelines timelines, we don't dictate those timelines. Venus does. Okay? Just have an order just conscious of time. Just one moment, John. What was that? Just conscious of time as well as we are coming up to twenty to two. Yeah. The floor for a bit longer. But just obviously with the questions, if there are any you want to prioritize, please do so. Is there anything from the listed questions, Karen, that you want to prioritize? I don't seem to be able to Yeah. There were a few few more relating to to Pam or Gordon, but I think we've really addressed those.

1:13:23 I mean, apart from the the comment from Steve b relating to this was actually a note in the Pam Milgordon flash notes, which was misstated. So the the 5,000,000 did not relate to a bill to ARIANA for the expansion the expansion, but the potential expansion of a tailings dam at Kasl Tepe. So the tailings dam at Kuseltepe was actually designed with a significant upside margin. We have a large part of that tailings dam left to fill.

1:14:14 Now if our reserve position changes from two, two and a half years, and we you know, as a result of current drilling programs, if those reserve positions change, they double, they triple, whatever whatever happens, in due course, we would have to well, Zenith would have to think about the potential to expand that tailings dam. The cost of that would be to Zenith, of which we own 23.5%. So if there was recourse to ARIANA for the cost of such a tailings expansion, it would be 23.5% of whatever that total is. So it was just a slight misstatement in the the flash note. It should have referred to Zenith rather than to ARIANA.

1:15:07 Other than that, as I said, the flash note was correct in what was stated based on what we know of the current reserves. It's all about cost benefit. And if in four years' time, there's still more to come out to, yes, we probably have to start thinking about the cost benefits of a tailings expansion and what that means for the the Zenith business going forward. But, you know, that would be a good problem to have. So I I don't you know, there's this view, I think, that I've taken I've got an idea from some of the comments here that there's this view that there's this negative connotation that was applied to the flash note. It's all about how you read it. If you're looking at it negatively, it's negative.

1:15:54 If you're looking at it positively, it's a positive note because the cost benefit would show that it makes sense to then expand if you've got further reserves. It would be a no brainer. And then the cost becomes almost irrelevant because those reserves will easily close out the cost of it as we've shown with the plant expansion. Okay. Thanks. Do we I need to know if we're running out of time on this this format. You you you have, yeah, a little bit longer there. So just just just I know you've got quite a few questions just on the basis of getting through those, but we may see some of the attendees online drop off as we've gone through the hour. So We've gone through the hour. And, Karen, were there any more of the ones that have come up on the panel that you wanted to address? I've noticed just a couple of, perhaps, more political questions.

1:16:50 So there's one on Kosovo, Serbia. There's another one on Turkey. And we don't really see any reason to to go into discussions on what's going on on the political front on any of those in any of those countries. I mean, we just get on with with our business. And, you know, what happens around us, you know, we we we can't sort of spend too much time focusing on those sorts of issues. We've got a very good spread within our portfolio, and that spread was designed in part to mitigate the sorts of risk that might result from, you know, issues at any particular jurisdiction. Okay. Maybe on that note, we should close it out, and thank everyone for attending.

1:17:36 That's fantastic, Michael. Thank you very much indeed. Karim, thank you for updating investors today. Can I please ask investors not to close the session as you will be automatically redirected to provide your feedback? And all the team can better understand your views and expectations. It's only take a few moments to complete and is greatly valued by the company. Karim, just before we go, if there are any final comments just to close off with before we redirect to the attendees? Oh, thank you very much, Paul. It's it's been a pleasure as always to present to our shareholders. Another year down, another AGM down, and it's great to have the support that we've had both at this AGM and in prior years. Thank you for your ongoing support of the company.

1:18:22 Watch this space for for further progress. I hope we've shown that there's a lot more to come both within our existing pipeline in Turkey, but also further afield, be it within history, and we look forward to continuing to welcome you on the journey. That's fantastic. Karen, Michael, you again for updating investors today. On behalf of the management team of ARIANA RESOURCES, I'd like to thank you for attending today's presentation. That concludes today's session. Thank you, and good afternoon to you all.

1:19:08 Good afternoon. Good afternoon. Thank you.