Market's view on Ariana
Published on April 2024
- Concerns are raised about Ariana’s vulnerability to a takeover due to low share prices.
- Discussions focus on Rockover having a lucrative asset with no immediate cash need, and the issue with the presentation to shareholders as a done deal without a Q&A session.
- Doubts are expressed over the Dokwe project’s progress since its pre-feasibility in March 2022 and the transparency of the asset valuation based on NPV models.
- Observations note the potential of significant shareholder selling, and questions are raised about funding, particularly in light of high inflation and operational expenditures.
- A merger with Rockover Holdings is mentioned, with details of Rockover’s financials including a loss and mentions of unaudited management accounts.
- There are concerns about dilution from ongoing fundraising and the potential for a lower return on investment for shareholders.
- Speculation exists about the need for further fundraising, possibly influenced by a new investor from Australia, to support further exploration and development of the Dokwe site.
- There is skepticism about the potential success of listing on the ASX given the country risks associated with Turkey and Zimbabwe, and whether Australian investors would find the proposition attractive.