The following amends the Interim Results announcement released today at 10.30 a.m.

The full Unaudited Condensed Consolidated Interim Financial Statements have been included in this announcement.

All other details remain unchanged and the full amended announcement appears below.

30 September 2014
AIM: AAU

INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2014

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, announces its interim results for the six months ended 30 June 2014. 

Highlights

  • Continued advancement of the Red Rabbit Gold Project ("RRGP")
  • Secured 100% financing for the RRGP mine at Kiziltepe - US$33 million overall credit agreement completed with international Turkish investment bank
  • Mining Licence renewed up to April 2034 (providing mining operations commence within the first five years of the licence)
  • Attractive investment incentives approved (including significant reductions in corporation tax and exemptions from customs duties and VAT) by the Turkish Government for Kiziltepe
  • Continued progress across exploration and development portfolio - new mineralised zones discovered at Kizilcukur and Karakavak, within the Kiziltepe Sector of the RRGP

To view the Company's financial statements for the period ended 30 June 2014 please visit; https://www.arianaresources.com/investors/financials.

Contacts:

Ariana Resources plc Tel: +44 (0) 20 7407 3616 
Michael de Villiers, Chairman 
Kerim Sener, Managing Director 
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396 
Roland Cornish / Felicity Geidt 
Beaufort Securities Limited Tel: +44 (0) 20 7382 8300 
Saif Janjua 
Loeb Aron & Company Ltd. Tel: +44 (0) 20 7628 1128 
John Beresford-Peirse / Dr. Frank Lucas 
St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 
Susie Geliher / Lottie Brocklehurst 

Ariana Resources Plc 
Unaudited Condensed Consolidated Interim Financial Statements 
for the six months ended 30 June 2014

Condensed consolidated statement of comprehensive income

Restated*       Restated* 
Note   6 months to 
30 June 
2014
  6 months to 
30 June 
2013
12 months to 
31 December 
2013          
£'000 £'000 £'000
Continuing Operations
Administrative costs  (411)  (419)  (942) 
General exploration expenditure  (13)  (67)  (121) 
Other income  34  76  68 
Operating Loss (390) (410) (995)
Finance costs  4 (25)  (38)  (124) 
Investment income 
Gain/(deficit) on dilution of interest in joint venture  5 214  (35)  (35) 
Share of profit/(loss) of a joint venture  5 (26)  (10)  (256) 
Loss on ordinary activities before tax  6 (225) (492) (1,408)
Taxation  7 - - -
Loss for the period (225) (492) (1,408)
Other comprehensive income:
Exchange differences on translating foreign operations  (15)  (4)  (125) 
Fair value adjustment on other financial asset classified as held for sale  10       (286)  (265)  (69) 
Other comprehensive income for the period net of tax (301) (269) (194)
Total comprehensive income for the period (526) (761) (1,602)
Loss for the period attributable 
to owners of the parent
(225) (492) (1,408)
Total comprehensive income attributable 
to owners of the parent
(526) (761) (1,602)
Loss per share (pence):
Basic and diluted  8 (0.04) (0.17)            (0.29) 
Restated due to adoption of IFRS 11, see note 5. 

Condensed consolidated balance sheet

Condensed consolidated interim statement of financial position

       Restated* Restated*
Note 30 June
2014
 
£'000
30 June 
2013 
£'000
31 December 
2013 
£'000
ASSETS
Non-current assets
Trade and other receivables  40  42  38 
Other financial asset  10 135  368  301 
Available for sale investments  109  226  109 
Intangible exploration assets  9 1,978  1,908  1,866 
Land, property, plant and equipment  382  428  370 
Investment in Joint Venture  5 3,108  3,166  2,920 
Total non-current assets 5,752 6,138 5,604
Current assets
Trade and other receivables  864  812  774 
Other financial asset  10 325  367  338 
Cash and cash equivalents  271  626  212 
Total current assets 1,460 1,805 1,324
Total Assets 7,212 7,943 6,928
EQUITY
Called up share capital  11 5,640  5,550  5,550 
Share premium  11 7,585  6,900  6,900 
Other reserves  720  720  720 
Share based payment reserve  578  578  578 
Translation reserve  (157)  (20)  (142) 
Retained earnings  (7,370)  (6,139)  (6,859) 
Total equity attributable to equity holders 
 of the parent
           6,996            7,589                 6,747
LIABILITIES
Current liabilities
Trade and other payables  216  222  181 
Interest bearing borrowings  132 
Total current liabilities 216 354 181
Total Equity and Liabilities 7,212 7,943 6,928

Restated due to adoption of IFRS 11, see note 5.

Condensed consolidated interim statement of changes in equity

Condensed consolidated interim statement of changes in      Share  capital     Share premium   Other reserves Share options Trans 
-lation 
Reserve
Retained  losses Total attributable to equity holder of parent
£'000                 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2013 3,710 7,004 720 578 (16) (5,382) 6,614
Changes in equity 
to 30 June 2013  
Loss for the period  - - - - - (757) (757)
Other comprehensive income (4)  (4) 
Total comprehensive income (4) (757) (761)
Issue of share capital  1,840  124  1,964 
Share issue costs  (228)  (228) 
Transactions with owners  1,840  (104)  1,736 
Balance at 30 June 2013 5,550 6,900 720 578 (20) (6,139) 7,589
Changes in equity 
to 31 December 2013
Loss for the period  (720)  (720) 
Other comprehensive income (122)  (122) 
Total comprehensive income (122) (720) (842)
Issue of share capital 
Share issue costs           - 
Transactions with owners 
Balance at 31 December 2013 5,550 6,900 720 578 (142) (6,859) 6,747




Changes in equity to 
 30 June 2014
Loss for the period  (511)  (511) 
Other comprehensive income (15)  (15) 
Total comprehensive income - - - (15) (511) (526)
Issue of share capital  90  725  815 
Share issue costs  (40)  (40) 
Transactions with owners  90  685  775 
Balance at 30 June 2014 5,640 7,585 720 578 (157) (7,370) 6,996

Condensed consolidated interim statement of cash flows

Restated* Restated*
6 months to 
30 June 
2014
6 months to 
30 June 
2013
12 months to 
31 December 2013
£'000 £'000 £'000
Cash flows from operating activities
Cash generated from operations  (464)  (488)  (1,233) 
Net cash outflow from operations (464) (488) (1,233)
Cash flows from investing activities
Proceeds from sale of investments  104 
Purchase of land, property, plant and equipment  (12)  (14)  (37) 
Payments for intangible assets   (119)  (157)  (166) 
Investment income 
Net cash used in investing activities (129 (170) (97)
Cash flows from financing activities
Proceeds from issue of share capital  677  1,175  1,580 
Proceeds from borrowings  145  145 
Repayment of borrowings  (281)  (384) 
Interest and financing  fees  (25)  (10)  (54) 
Net cash proceeds from financing activities 652 1,029 1,287
Net increase/(decrease) in cash and cash equivalents 59 371 (43)
Cash and cash equivalents at the beginning of period  212  255  255 
Cash and cash equivalents at end of period 271 626 212

Restated due to adoption of IFRS 11, see note 5.

Notes to the interim financial statements for the six months ended 30 June 2014

1. General information

Ariana Resources Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain and whose registered office is Bridge House, London Bridge London SE1 9QR. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of gold and other minerals in Turkey. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange. 

2. Basis of preparation

The condensed interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting.  The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The condensed interim financial statements set out above do not constitute statutory accounts within the meaning of the Companies Act 2006.  They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union.  Statutory financial statements for the year ended 31 December 2013 were approved by the Board of Directors on 5th June 2014 and delivered to the Registrar of Companies.  The financial information for the periods ended 30 June 2014 and 30 June 2013 are unaudited.

3. Significant accounting policies

The condensed interim financial statements have been prepared under the historical cost convention.  

The same accounting policies have been followed in these condensed interim financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2013, apart from the change in policy for joint ventures as set out below.

Following IFRS 11 becoming effective and the subsequent adoption by the Group, the Group now accounts for its investment in its joint venture using the equity method of accounting.  This replaced the proportional consolidation method of accounting applied previously and has also required the restatement of comparative numbers.  See note 5 for further information on this.

The Group and Company financial statements have been prepared on a going concern basis. As an exploration and development company the Directors are mindful that there is an ongoing need to monitor overheads and cash associated with the exploration and development programme; and to raise additional working capital on an ad hoc basis to support the Group's activities.

The Group expects to incur further losses in the development of its business. The Group's ability to continue its operations and to realise its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. These financial statements do not give effect to any adjustments which would be necessary should the Group be unable to continue as a going concern and therefore be required to realise its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.

The Company raised £0.8m, subject to collection of the related derivative financial asset, in the six month period under review and the Directors remain confident that if future funding is required they will be able to raise this finance to meet the Group exploration and development programme and associated overhead cost.

4. Finance cost                                                                                                                                                             

6 months to 
30 June 
2014
6 months to 
30 June 
2013
12 months to 
31 December 2013
£'000 £'000 £'000
Interest on loan facility  28  14 
Loan facility fees  10  40 
Swap charges on other financial assets  25  70 
25  38 

124 

5. Interest in joint venture

In previous periods the Group's joint venture with Proccea Construction Co in Zenit Madencilik San ve Tic AS ("Zenit") was accounted for using the proportional consolidation method of accounting.  Following IFRS 11 Joint Arrangements becoming effective, the Group considered its categorisation and determined it a joint venture to be accounted for using the equity method in accordance with IAS 28 (revised).  At 30 June 2014 the Group has a 73.47% (2013: 81.68%) interest in Zenit.

Prior to this change in accounting the Group's share of Zenit's income, expenditure, assets and liabilities were consolidated into the Group accounts on a line by line basis in proportion to its underlying ownership of the company.  Zenit's results have now been removed from the comparative financial periods and the Group`s interest in Zenit is now accounted for using the equity method in the consolidated financial statements. 

Summarised financial information of the joint venture, based on its translated financial statements, and reconciliations with the carrying amount of the investment in the consolidated financial statements are set out below:-

Summarised statement of financial position 30 June 2014 30 June 2013 31 December 2013
£'000 £'000 £'000
Non-current assets  5,096  4,878  4,902 
Current assets  376  323  231 
Current liabilities  (1,103)  (1,325)  (1,558) 
Non-current liabilities  (138) 
Equity  4,231  3,876  3,575 
Proportion of the Group's ownership  73.47%  81.68%  81.68% 
Carrying amount of Investment in Joint Venture 3,108 3,166 2,920
Summarised statement of Profit and Loss 30 June 2014 30 June 2013 31 December 2013
Other income 
Administrative expenses - including exchange losses  (35)  (13)  (315) 
Loss for the period  (35)  (12)  (313) 
Proportion of the Groups ownership  73.47%  81.68%  81.68% 
Group`s share of loss for the period  (26)  (10)  (256) 
Increase/(decrease) in share of net assets following issue of shares in Zenit  214  (35)  (35) 
Movement in interest in Joint Venture for the period 188 (45) (291)

6. Segmental analysis

Management currently identifies one division as an operating segment - mineral exploration. This operating segment is monitored and strategic decisions are made based upon this and other non-financial data collated from exploration activities.

Principal activities for this operating segment are as follows:

Mining - incorporates the acquisition, exploration and development of gold resources in Turkey.   

 

30 June 2014 30 June 2013 restated 31 December 2013 restated
Mining Other reconciling items Group Mining Other reconciling items Group Mining Other reconciling items Group
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Administrative costs  (411)  (411) (414)  (414) (942)  (942)
General exploration
Expenditure 
(13)  (13) (67)  (67) (121)  (121)
Other income  34  34 76  76 68  68
Finance costs  (25)  (25) (43)  (43) (124)  (124)
Fair value loss on derivative financial assets  (286)  (286) (265)  (265) (69)  - (69)
Share of profit/(loss) 
of its interest in a
joint venture 
188  188 (45)  (45) (291)  - (291)
Investment income  2 1 2
Tax  - - -
Loss after tax 209  (720)  (511) (36)  (721)  (757) (413)  (1,064)  (1,477)
Assets
Segment assets  6,157  1,055  7,212 6,297  1,646  7,943 5,947  981  6,928
Liabilities
Segment liabilities  (28)  (188)  (216) (28)  (326)  (354) (25)  (156) 

(181)

Other income includes consultancy, loan interest and license fees.

Reconciling items include non mineral exploration costs and transactions between Group and associate companies.

Geographical segments

All of the Group`s mining assets and liabilities are located in Turkey.                    

30 June 2014 30 June 2013 restated 31 December 2013 restated


Turkey

United Kingdom
Group 

Turkey

United Kingdom
Group 

Turkey

United Kingdom
Group 
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Carrying amount of segment 
non-current assets 
5,339  413  5,752 5,544  594  6,138 5,194  410  5,604

 

7. Taxation

The Group has incurred tax losses for the period and a corporation tax charge is not anticipated.

8. Loss per share

The calculation of basic loss per share is based on the loss attributable to ordinary shareholders of £225,000 divided by the weighted average number of shares in issue during the period, being 630,104,546.

9. Intangible exploration assets

                                                                                                                                                                   Restated

Six months ended 30 June 2013 £'000
Opening net book value 1 January 2013  1,752 
Additions and capitalised depreciation  157 
Exchange movements  (1) 
Closing net book value 30 June 2013   1,908
Six months ended 31 December 2013
Opening net book value 1 July 2013    1,908 
Additions and capitalised depreciation 
Exchange movements  (51) 
Closing net book value 31 December 2013 1,866
Six months ended 30 June 2014
Opening net book value 1 January 2014  1,866 
Additions and capitalised depreciation  119 
Exchange movements  (7) 
Closing net book value 30 June 2014 1,978

10. Derivative financial asset

In June 2013 the Company raised £1.25 million following the issue of 125 million new shares at 1p per share to Lanstead Capital L.P. (Lanstead). The Company received £250,000 in cash and entered into an equity swap price mechanism with Lanstead for the balance of these shares with consideration payable on a monthly basis over a period of 24 months. The Company also issued 12.5 million shares to Lanstead in consideration for the equity swap agreement. A second equity swap arrangement was entered into on similar terms with Lanstead for £152,000 during the January 2014 share placement, where the Company raised £770,000 following the issue of 85 million new shares at 0.9p per share.     

The consideration from Lanstead has been treated as a derivative financial asset and its fair value has been determined by reference to the Company`s share price at the balance sheet date and has been calculated as follows:
                        

Total 
£`000
Non-current assets 
£`000 
    
Current assets 
£,000
Value recognised on inception                    1,000                   334                           666 
Capital repayments  (222)                      -  (222) 
Swap charges  (70)                      -  (70) 
Loss on revaluation  (69)  (33)                            (36) 
Fair value recognised at 31 December 2013                               
                       639
            
                    301
                  
                            338
Swap charges  (25)                       -  (25) 
Capital repayments  (20)                      -  (20) 
Swap settlement for shares                         152                      
                      -      
                         152 
Loss on revaluation  (286)  (166)  (120)                            
Fair value recognised at 30 June 2014                        460                  135                          325

11. Called up share capital and share premium

Details of issued capital are as follows:

Number of  Share 
Capital
Deferred shares  Share 
Premium
shares £'000 £'000 £'000
At 1 January 2013 371,019,494 3,710 - 7,004
Shares issued in period (net of expenses)  183,929,980  1,840  (104) 
At 30 June 2013  554,949,474 5,550 - 6,900
Conversion of ordinary shares into new 
ordinary and deferred 
(4,995)  4,995 
At 31 December 2013  554,949,474 555 4,995 6,900
Shares issued in period (net of expenses)  90,866,667  90          685 
At 30 June 2014 645,816,141 645 4,995 7,585

                                                                                                                                  

During 2013 the existing ordinary shares were sub-divided into one new ordinary share of 0.1pence ("The New Ordinary Share") and one deferred share of 0.9pence ("Deferred Shares"). The New Ordinary Shares have a nominal value of 0.1 pence. The percentage of New Ordinary Shares held by each shareholder following the sub division is the same as the percentage of existing ordinary shares held by them before the change.    

12. Approval of interim financial statements

The interim financial statements were approved by the Board of Directors on 29 September 2014.