Gold and silver miner Ariana Resources on Friday reported an interim profit of £319-million, helped by record performance from its joint venture (JV) mine in Turkey, and also announced that it was evaluating opportunities to diversify.

The interim profit compares with a loss of £663-million in the six months ended June 30, 2017, and reflects the record performance of the Kiziltepe mine, in which Ariana and Proccea Construction each hold 50%.

“The Kizeltepe mine has been commercially operational for 15 months now, and operating cash costs are continuing generally in the sub-$600/oz region, with the last reporting quarter recording a cash cost of $371/oz,” said chairperson Michael de Villiers.

Gold production to the end of June totalled 12 037 oz and production for the year is expected to exceed initial expectations in the second half. The guidance from the JV is 20 000 oz of gold - a 47% increase compared with the previous year.

As a result of the strong cash-flow profile, Ariana’s Turkey subsidiary, Galata Madenclick, has been receiving monthly repayments of its loan to Zenit. To date, it has received $1.23-million from the JV, equating to an average repayment of $175 000 /m.

“Between now and the year-end, we are expecting that cash flow will continue to be received at similar and perhaps somewhat higher levels, with the current gold price being the most significant moderating factor.”

De Villiers said that Ariana was also continuing to make progress on tis exploration and development portfolio, while evaluating opportunities to diversify.

"We are also carefully evaluating a few opportunities outside of the current portfolio that have the potential to strengthen and diversify the company in terms of commodity and geography, as part of our core strategy to future-proof the business and unlock value for shareholders.”