Zeus Capital reckons Ariana Resources' (LSE:AAU) newly updated assessment of the Dokwe project is good news, how good it is, we'll have to wait and see - as the house broker has put a pin its 'fair value' for the junior gold firm.
In London, the AIM‑listed gold developer's shares were up around 6% to 1.96p, after Ariana published an updated PFS for the 100%‑owned Dokwe project showing a pre‑tax NPV10 of US$1,056m, a post‑tax NPV10 of US$740m and a 92% IRR at US$4,250/oz.
Before today's announcement, Zeus pitched 'fair value' at 7.9p, already suggesting substantial upside.
Zeus's lead analyst Paul Smith, in a note today, said the PFS, which models an optimised 2.5Mtpa processing case, life‑of‑project recovered production of c.1.06Moz, low total pre‑production capex of US$163.9m and LoP EBITDA of c.US$1,993.5m, materially improves Dokwe's economics and underpins the decision to re‑evaluate the firm's valuation.
Smith pointed to the new study's unit‑costs (life‑of‑mine C1 US$1,685/oz and AISC US$1,995/oz), an overall gold recovery of 87.4% and a two‑phase production profile (c.80koz/yr for 12 years then c.20koz/yr from stockpile processing) as the key metrics, which he will now fold into a new estimate.
Zeus also pointed to upcoming new drilling results, from an ongoing three‑rig, ~3,700m diamond‑drilling programme, along with new metallurgical test results, and a Definitive Feasibility Study targeted for Q1 2027.
