AIM:AAU

Stock Analysis Report

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Executive Summary

Ariana Resources plc, together with its subsidiaries, engages in the acquisition, exploration, development, and production of mineral properties in Turkey.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Ariana Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

AAU

5.3%

GB Metals and Mining

3.7%

GB Market


1 Year Return

97.6%

AAU

-1.0%

GB Metals and Mining

-9.5%

GB Market

Return vs Industry: AAU exceeded the UK Metals and Mining industry which returned -3.3% over the past year.

Return vs Market: AAU exceeded the UK Market which returned -11% over the past year.


Shareholder returns

AAUIndustryMarket
7 Day0%5.3%3.7%
30 Day24.6%21.5%10.8%
90 Day37.3%8.9%-5.0%
1 Year97.6%97.6%6.6%-1.0%-5.1%-9.5%
3 Year131.4%131.4%45.2%21.5%-1.7%-13.7%
5 Year268.2%268.2%77.4%36.6%16.4%-9.7%

Price Volatility Vs. Market

How volatile is Ariana Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ariana Resources undervalued compared to its fair value and its price relative to the market?

29.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAU (£0.04) is trading below our estimate of fair value (£0.06)

Significantly Below Fair Value: AAU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AAU is poor value based on its PE Ratio (10.3x) compared to the Metals and Mining industry average (8.1x).

PE vs Market: AAU is good value based on its PE Ratio (10.3x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: AAU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AAU is overvalued based on its PB Ratio (2x) compared to the GB Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Ariana Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAU's earnings are forecast to decline over the next 3 years (-6.1% per year).

Earnings vs Market: AAU's earnings are forecast to decline over the next 3 years (-6.1% per year).

High Growth Earnings: AAU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if AAU's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if AAU's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AAU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ariana Resources performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAU has a high level of non-cash earnings.

Growing Profit Margin: Insufficient data to determine if AAU's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: AAU has become profitable over the past 5 years, growing earnings by 35.1% per year.

Accelerating Growth: AAU's earnings growth over the past year (196.1%) exceeds its 5-year average (35.1% per year).

Earnings vs Industry: AAU earnings growth over the past year (196.1%) exceeded the Metals and Mining industry 9.8%.


Return on Equity

High ROE: AAU's Return on Equity (19.5%) is considered low.


Next Steps

Financial Health

How is Ariana Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AAU's short term assets (£4.8M) exceed its short term liabilities (£426.0K).

Long Term Liabilities: AAU's short term assets (£4.8M) exceed its long term liabilities (£3.9M).


Debt to Equity History and Analysis

Debt Level: AAU is debt free.

Reducing Debt: AAU had no debt 5 years ago.

Debt Coverage: AAU has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AAU has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ariana Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAU's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Ahmet Sener (43yo)

15.17yrs

Tenure

UK£166,000

Compensation

Dr. Ahmet Kerim Sener, B.Sc. (Hons.), M.Sc., DIC, Ph.D. has been Managing Director at Ariana Resources plc since 2007. Dr. Sener has been Non Executive Chairman of Panther Metals Plc since August 17, 2018. ...


CEO Compensation Analysis

Compensation vs Market: Ahmet's total compensation ($USD208.08K) is below average for companies of similar size in the UK market ($USD341.00K).

Compensation vs Earnings: Ahmet's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael de Villiers
Executive Chairman & Company Secretary6.92yrsUK£130.00k5.18% £2.2m
Ahmet Sener
MD & Executive Director15.17yrsUK£166.00k1.85% £792.4k
William Benedict Payne
Non-Executive Director & CFO9.92yrsUK£40.00k0.88% £379.1k
Berkin Ugurlu
Exploration Manager1.42yrsno datano data
Erhan Sener
Business Consultant4.42yrsno datano data
Francis Wedin
Exploration Consultant4.42yrsno datano data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Management: AAU's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael de Villiers
Executive Chairman & Company Secretary6.92yrsUK£130.00k5.18% £2.2m
Ahmet Sener
MD & Executive Director15.17yrsUK£166.00k1.85% £792.4k
William Benedict Payne
Non-Executive Director & CFO9.92yrsUK£40.00k0.88% £379.1k
Christopher Stuart Sangster
Independent Non-Executive Director3.83yrsUK£41.00k0.35% £150.5k

8.4yrs

Average Tenure

55yo

Average Age

Experienced Board: AAU's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ariana Resources plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ariana Resources plc
  • Ticker: AAU
  • Exchange: AIM
  • Founded: 2005
  • Industry: Gold
  • Sector: Materials
  • Market Cap: UK£42.917m
  • Shares outstanding: 1.06b
  • Website: https://www.arianaresources.com

Number of Employees


Location

  • Ariana Resources plc
  • Regis House
  • 2nd Floor
  • London
  • Greater London
  • EC4R 9AN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAUAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2005

Biography

Ariana Resources plc, together with its subsidiaries, engages in the acquisition, exploration, development, and production of mineral properties in Turkey. It primarily explores for gold, silver, copper, and molybdenum deposits. The company’s flagship project is the Red Rabbit project, including the Kiziltepe and Tavsan sectors located in western Turkey. It also holds 100% interests in the Kizilçukur, Kepez, Karakavak, And Yukaricamli projects. The company was incorporated in 2005 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 21:47
End of Day Share Price2020/06/03 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.