The Kiziltepe mine, which Aim-listed Ariana Resources owns in a joint venture (JV) with Turkey's Proccea Construction, is benefitting from the recent movements in the value of the lira, with operational costs incurred in the local currency decreasing.

Ariana MD Kerim Sener said on Thursday that the lower operational costs, combined with increasing grades at the Kizeltepe mine, are having a positive financial impact. Consequently, the company is funded internally for its current operations, although it will continue to investigate external funding strategies to accelerate its project pipeline in the longer term, he commented in a statement.

The lira has suffered a major sell off recently, with the Turkish currency having slumped to a record low against the US dollar this week. Since the election of Tayyip Erdogan as President in late June, the lira has lost a quarter of its value against the dollar. The sell-off intensified last week, after Washington raised tariffs on Turkish metals exports.

The Kiziltepe mine’s operating cash cost of production has fallen by 40% between the first and second quarters of this year, from $612/oz to $371/oz in the period ended June.

The second quarter was also the Kiziltepe mine’s best-to-date production performance, with gold output climbing to 7 171 oz in the June quarter. The gold production was a 47% increase on the first quarter’s output of 4 866 oz. The mine produced 49 508 oz of silver, compared with 30 864 oz in the first quarter.

Gross income increased from $6.98-million in the first quarter to $10.07-million in the second quarter.

ince Erdogan’s June 24 election victory the lira has lost a quarter of its value against the dollar. Investors have been concerned by his control over the economy, his resistance to raising interest rates to fight double-digit inflation, and an escalating crisis between Turkey and the United States.

Washington imposed sanctions on two Turkish ministers two weeks ago over the trial on terrorism charges of U.S. evangelical pastor Andrew Brunson in Turkey, and last week it raised tariffs on Turkish metal exports.