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The Australian
3 days ago
- Business
- The Australian
AIM-listed Ariana Resources eyes ASX
Ariana Resources' ASX listing ambitions took a huge step forward with lodgement of its prospectus outlining an offer of 53.57m CDIs at 28c each for an IPO of $10-15m The offer follows the AIM-listed gold producer's fast-paced wholesale bookbuild to support its dual listing on the local market Funds will be put towards exploration at the feasibility-stage 1.1Moz Dokwe project, where Ariana aims to complete a DFS by mid-2026 Special Report: Gold producer Ariana Resources plc has filed its prospectus for its run at the ASX, offering CDIs at 28c each in its bid to raise a minimum of $10 million and a maximum of $15 million. The public offering has just opened ahead of Ariana's mid-September ASX debut. Lodgement of the prospectus follows a high-speed bookbuild for the company that's already listed on London's AIM with a strong register, including major miner Newmont. AIM-listed Ariana Resources is seeking a dual listing on the ASX as it launches an IPO raise a minimum of $10 million to fund progress at its Zimbabwe development asset and boost production across its gold portfolio. The company has lodged its prospectus with ASIC, outlining its plans to offer 53.57m CDIs at 28 cents apiece in an IPO led by Shaw and Partners and co-managed by Leeuwin Wealth. The offer has just opened and is set to close on 14 August. CDIs are a simple mechanism allowing international companies to list on the ASX and for Ariana the ratio of shares to CDI is ten to one. The offer price of 28c is equivalent to a 15.6 per cent discount to the last traded price on AIM on 25 July of 1.6 pence. It closed on 5 August at 1.7 pence. After the institutional bookbuild opened and closed within just a day last week, Ariana's market capitalisation implied by the offer is A$64 million. The company expects to start trading on the ASX on September 15 under the ticker AA2. Not your typical ASX explorer IPO Ariana already boasts a solid production base and development assets in Europe. It's also the 100 per cent owner of the Dokwe project, Zimbabwe's largest undeveloped gold project with a Measured, Indicated and Inferred JORC Resource of 1.1Moz. The company's current register includes Newmont, with the gold heavyweight currently a 4 per cent shareholder, whilst Ariana directors and management have their own skin in the game with a total of 24 per cent between them. The raise follows the recent run of success for juniors including Tali Resources (ASX:TR2), Ballard Mining (ASX:BM1) and Broken Hill Mines (ASX:BHM). All have surged on debut, mirroring strong interest in ASX listed goldies as the metal records a price rise of about 28 per cent this year. Strong track record Underpinning Ariana's robust support is production from the Kiziltepe gold-silver mine in Turkey, which has enabled the company to be consistently profitable since 2016 and pay GBP 7.74 million (A$15.8 million) in dividends since 2021. The 2024 depleted resource at Kiziltepe stands at 3.3Mt at 1.63 grams per tonne (g/t) gold for 171,700oz. Annual production in 2024 was 20,866oz. The nearby Tavsan mine is nearing its first gold pour with its processing plant expected to achieve operational status by the end of this month. Ongoing resource and exploration drilling is also under way at Tavsan, which boasted a 2024 Resource of 7.7mt at 1.26 g/t for 311,000oz of gold. Way to grow Ariana will put the IPO funds towards advancing its portfolio of projects, but it's at the Dokwe gold project the company is looking for material growth. Just 110km from Zimbabwe's second city Bulawayo, Dokwe has a current JORC resource of 1.1Moz and a definitive feasibility study (DFS) scheduled to be released by mid 2026. The company released an updated pre-feasibility study (PFS) for the Dokwe North deposit in June 2025, based on a conservative gold price of US$2,750/oz. This yielded a post-tax Net Present Value (10%) of US$354 million and a healthy 75 per cent internal rate of return. Current production projections are for 60,000oz annually, but Ariana is examining ways to increase this to up to 100,000oz per year over a 10-year mine life as it progresses the DFS. Multi-million ounce potential Key to its resource growth outlook is a significant gold and soil anomaly Ariana identified just 125 metres northeast of the Dokwe North planned pit rim in July. This indicates the potential for additional discoveries within close range of the planned development for Dokwe to host a multi-million-ounce exploration and development opportunity. The area is now a priority for drill testing. Managing director Dr Kerim Sener said: 'Similar systems are evident in exposed sections of the belt, and we believe this region remains one of the most prospective, yet underexplored gold provinces in southern Africa. 'This latest discovery is an exciting new development for Dokwe, which could greatly improve our plans for the project.' Also importantly, the newly updated economic model does not yet factor in the Dokwe Central resource as it had not been estimated in accordance with JORC 2012 at the time of the PFS release. This article was developed in collaboration with Ariana Resources, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
News.com.au
02-08-2025
- Business
- News.com.au
Stock Tips: It's lithium, property, supermarkets and… water for the win
It's no easy gig analysing share prices and company performance but somebody's got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations. Jed Richards – Shaw and Partners BUY Cromwell Property Group (ASX:CMW) Trades at a notable discount to its net asset backing, presenting a value opportunity for income-focused investors. Offers a strong quarterly dividend yield of about 7.6% and its portfolio includes office properties, primarily leased to government and listed tenants, which contribute about 68% of its gross income. Assets are held for long-term investment and generate stable rental cash flows. Cromwell combines reliable income with potential capital upside. Duxton Water (ASX:D2O) Trading at a discount to its net asset backing, offering a compelling entry point for income and value investors. It provides a dividend yield of 4.98%, paid semi-annually, with consistent growth. The company owns a diversified portfolio of permanent water entitlements across the southern Murray-Darling Basin. With drought conditions emerging in parts of South Australia and Victoria, demand for water is rising, supported by government buyback programs. Benefits from stable annuity-style income through long-term leases to agricultural users. HOLD Santos (ASX:STO) Remains a solid energy holding with exposure to LNG and gas markets across Australia and Asia. The company is currently under a takeover proposal from a major international consortium, highlighting its strategic importance and potential value. While the offer is still under review and subject to due diligence and regulatory approval, it presents possible upside for shareholders. Santos continues to generate strong cash flow and maintains a stable outlook, making it a prudent hold. BWP Trust (ASX:BWP) Offers a solid, reliable yield supported by long-term leases to high-quality tenants, notably Bunnings Warehouse. This relationship provides consistent rental income and low vacancy risk. The trust holds a portfolio of well-located retail properties across Australia, with a focus on large-format retail. While growth may be modest, the income stability and defensive nature of its assets make BWP a prudent hold for investors seeking dependable returns in a low-volatility environment. SELL Origin Energy (ASX:ORG) Has performed well recently and now appears to be trading above fair value. We are locking in profits at this stage given limited near-term growth catalysts. While Origin remains a solid energy provider, its valuation looks stretched compared to peers. For investors seeking better value and income, AGL Energy offers a more attractive alternative, with stronger yield and improving fundamentals. Technology One (ASX:TNE) Has delivered strong share price increases, but now trades at a very high PE ratio – over 97 – making it one of the most expensive stocks on the ASX. Its dividend yield is low, under 1%, which limits income appeal. The company provides enterprise software solutions for government, education, and corporate clients, including financials, asset management, and HR systems. However, competition in cloud-based enterprise software is intensifying, and much of the growth appears priced in. I suggest locking in profits at current levels. Chris Haynes – Equity Trustees BUY Pilbara Minerals (ASX:PLS) One of the largest and most efficient producers of lithium globally, which is a key component in battery production. The lithium price has collapsed over the past 18 months due to excess supply. However, there are signs of supply reductions and a potential bottoming in the lithium price. PLS is well positioned to benefit from a recovery. High risk, but high potential return. Coles Group (ASX:COL) The new CEO has been executing effectively, with improving margins and solid revenue growth. COL has invested heavily in logistics and fulfilment over the past few years. These investment programs are nearing completion, and the full benefits are expected to flow through. This is a good time to invest in a well-known household name. HOLD Reliance Worldwide (ASX:RWC) Designs, manufactures and distributes branded water flow and control products for the plumbing industry. The key revenue driver is US housing starts, which have been sluggish due to mortgage rates around 7%, making home buying prohibitive. Once the outlook for rates improves, the stock price is expected to move upward. Lynas (ASX:LYC) Produces rare earth minerals used in critical products such as magnets. Volumes and realised pricing have been strong, and the share price has performed well. LYC is in a strong position as a dominant supplier outside of China. The company has announced potential growth projects in Malaysia and Korea. While the stock trades at relatively high multiples, these projects offer upside potential. Some consolidation in the share price is warranted. SELL Charter Hall (ASX:CHC) Manages and invests in office, retail, and industrial properties. The stock price has risen approximately 50% this calendar year, while the earnings outlook has only mildly improved. As a result, the price-to-earnings multiple is well above long-term averages. It's a good time to take profits. Atlas Arteria (ASX:ALX) Owns, operates and develops toll roads globally. Its major investment in the French toll road APRR faces challenges, particularly due to a government that is somewhat hostile to corporate ownership of toll roads. The recent strength in the share price presents a good opportunity to take profits.
