REG - Condor Gold PLC - Annual Financial Report
28/03/2023 07:00
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RNS Number : 3811U Condor Gold PLC 28 March 2023
Condor Gold Plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey GU7 1JX
Telephone +44 020 74932784
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
(EU) 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM BY VIRTUE
OF THE EU (WITHDRAWAL) ACT 2018 ("MAR").
28 March 2023
Condor Gold Plc
("Condor Gold","Condor" or the "Company")
Condor Gold Announces Its Audited Results For The Year Ended 31 December 2022
and Annual General Meeting of Shareholders
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce its audited results
for the year ended 31 December 2022 and provides notification that the Annual
General Meeting of shareholders of the Company will be held at 3:00 p.m. on 11
May 2023 at 7/8 Innovation Place, Godalming, Surrey, GU7 1JX, United Kingdom.
The Company has published the formal notice of meeting (the "Notice") on its
website (www.condorgold.com) together with the related voting proxy form for
use by shareholders. A copy of the Notice, together with the proxy voting
form, the Annual Report for the year ended 31 December 2022 will be posted
to all shareholders who have elected to receive them in hard copy.
HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2022
· In Q1 2022 the Company released good drill results for Mestiza open
pit:
o 6.3 m true width at 6.84 g/t gold from 31.45 m (drill hole LIDC568),
approximately 50 m below surface outcrop (which occurs on a rise).
o 4.1 m true width at 15.23 g/t gold from 47.80 m (drill hole LIDC514)
approximately 40 m below surface.
o 3.6 m true width at 29.1 g/t gold from 105.70 m (drill hole LIDC471)
approximately 85 m below surface.
· In La India open pit new drill results included: 34.1 m true width at
2.56 g/t gold and 28.7 m true width at 2.62 g/t gold.
· Updated Mineral Resource Estimate at La India Project of 9,672 kt at
3.5g/t gold for 1,088,000 oz gold in the indicated mineral resource category
and 8,642 kt at 4.3 g/t gold for 1,190,000 oz gold in the inferred mineral
resource category.
· The La India Project's total open pit Mineral Resource Estimate is
8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral resource
category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred
mineral resource category. The Project's total underground Mineral Resource
Estimate is 979 kt at 6.2 g/t gold for 194,000 oz gold in the indicated
mineral resource category and 5,615 kt at 5.0 g/t gold for 898,000 oz gold in
the inferred mineral resource category.
· The Cacao Mineral Resource has increased 69% to 1,164 kt at 2.5g/t
gold for 101,000 oz gold in the inferred mineral resource category. The
deposit remains 'open' along strike and at depth.
· Feasibility Study confirmatory metallurgical test work demonstrated
that gold recovery is independent of grade and a fixed gold recovery of 91%
assuming a 75 micron grind size has been used in the project economics. At a
finer grind size of 53 microns an average gold extraction of 94.7% was
achieved, indicating a potential upside gold recovery of about 93%.
· In October 2022, a Feasibility Study demonstrated a robust and
economically viable base case for the La India open pit only:
o Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold
o Production averages 81,545 oz gold per annum for the first 6 years of an
8.4 year mine life
o An Internal Rate of Return ("IRR") of 23% and a post tax, post upfront
capital cost NPV of US$86.9 million using a discount rate of 5% and price of
US$1,600 oz gold (Mineral Reserve Case).
o An IRR of 43% and a post tax, post upfront capital cost NPV of US$205.2
million using a discount rate of 5% and price of US$2,000 oz gold.
o Low initial capital requirement of US$105.5 million (including contingency
and EPCM contract)
o Low average Life of Mine All-in Sustaining cash costs US$1,039 per oz gold
· Land acquisition continued at the La India open pit and associated
mine site infrastructure. To date, 99.6% of the core areas have been
purchased.
· Site clearance of 14 hectares has been completed for the processing
plant location, including areas for offices, warehouses, a stockpile, and a
buffer zone.
· On 12 October 2022, Jim Mellon assumed the Chairmanship of Condor
Gold
· £6,650,000 of gross proceeds raised by way of private placements,
the issue of convertible loan notes, and an open offer during 2022.
POST PERIOD HIGHLIGHTS
· On 13 March 2023 - the sales process is now entering the end of its
first phase with various parties having conducted site visits and others
ongoing. Three formal expressions of interest including 2 non-binding offers
(subject to further due diligence) have been received by the Company and
further offers are expected as 9 companies are under a Non-Disclosure
Agreement (NDA).
Cautionary Statement: Investors should note that, whilst the Board is
encouraged by the process to date, there can be no guarantee that the Company
will complete the sale of its assets.
CONDOR GOLD PLC
CHAIRMAN'S STATEMENT and CEO's REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
Chairman's introductory comments
Dear Shareholder,
Condor is at an important point in its history. It is very close to mining,
with substantial proven reserves, and a carefully costed mining plan. It is
now the time for a larger company to take on the reins of our key assets and
our CEO, Mark Child, has been working hard to find the right partner. The gold
price is rising and the omens for further rises are good. The Company enjoys
strong shareholder support and I am confident that our outcomes are positive.
Jim Mellon
Chairman
CEO'S Report
Dear Shareholder,
I am pleased to present Condor Gold Plc's ("Condor", the "Company" or the
"Group", www.condorgold.com (http://www.condorgold.com) or, if you are viewing
from Canada, ca.condorgold.com (http://www.ca.condorgold.com) ) annual report
for the 12-month financial year to 31 December 2022. The fully permitted La
India Open Pit and associated mine site infrastructure has been materially
de-risked. with the completion of all technical studies required for a
Feasibility Study Technical Report ("2022 FS") utilising the new SAG Mill
package acquired by Condor in March 2021. Details of the 2022 FS were
announced on 12 September 2022 and filed on SEDAR (https://www.sedar.com
(https://www.sedar.com) ) and made available on the Company's websites under
"Technical Reports" on 26 October 2022. During the year Condor produced a much
more robust Mineral Resource Estimate for the La India Project, details of
which are included in the 2022 FS.
The Company's strategy has been to develop the fully permitted La India
Project in two stages using the new SAG Mill that has already been purchased.
The delivery of a Feasibility Study on La India open pit with an average of
81,524 oz gold per annum for the initial six years for a relatively low total
upfront capital cost of US$106 million is a landmark and further de-risks the
Project. At US$1,600 oz gold, the La India open pit Mineral Reserve produces
total revenues of US$888 million, the total operating costs of mining, process
and G&A are US$480 million, leading to an operating profit of US$408
million or a 46% operating margin. After government and other royalties, but
before sustaining capital, the operating profit is US$355 million, which in
Condor's opinion is ample to repay any project debt on the relatively low
upfront capex. At US$2,000 oz gold after paying royalties, but before
sustaining capital the operating profit is US$563 million. In reality, two
permitted high grade feeder pits will be added during the early years of
production thus increasing production ounces of gold. Early production is
targeted at 100,000 oz gold p.a.
The plan would be to materially expand production with a stage two expansion
by converting existing Mineral Resources into Mineral Reserves and an
associated integrated mine plan. On 25 October 2021, the Company announced the
results of a Preliminary Economic Assessment and filed on SEDAR a technical
report entitled "Condor Gold Technical Report on the La Indian Gold Project,
Nicaragua, 2021" detailing average annual production of 150,000 oz of gold
over the initial nine years of production from open pit and underground
Mineral Resources and provides an indication of a production target. Outside
the main La India open pit Mineral Reserve, there are additional open pit
Mineral Resources on four deposits (America, Mestiza, Central Breccia and
Cacao) which represent an aggregate 206 Kt at 9.9 g/t gold for 66,000 oz in
the indicated Mineral Resource category and 2.1Mt at 3.3 g/t gold for 223,000
oz gold in the inferred Mineral Resource category. In addition, there is an
aggregate underground Mineral Resource (La India, America, Mestiza, Central
Breccia San Lucas, Cristalito-Tatescame, and Cacao) of 979Kt a 6.2 g/t for
194,000 oz gold in the indicated Mineral Resource category and 5.6Mt at 5.0
g/t gold for 898,000 oz gold in the inferred Mineral Resource category.
The Company informed the Ministry of the Environment and Natural Resources
("MARENA") that it had commenced construction (consisting of site clearance of
14ha, importing the SAG Mill and completing the FS studies) and fulfilled the
initial conditions of an Environmental Permit (the "EP") granted for the
development, construction, and operation of an open pit mine, a 2,800 tpd or
1.0 Mt per annum CIP processing plant and associated infrastructure at the La
India Project, Nicaragua.
During 2022, Condor produced a much more robust and conversative Mineral
Resource Estimate ("MRE") of the entire La India Project, which comprises six
separate deposits all of which have potential to be expanded. The focus has
been on strengthening the confidence of the geological model for the 2022 FS
on La India Open Pit. The update on La India Open Pit includes assay results
from infill drilling, a new lithological, structural and weathering model, a
new depletion model for historic and artisanal mining and an increase in the
cut-off grade to 0.65 g/t gold from 0.50 g/t gold. The updated Mineral
Resource includes the latest operating costs and bulk density measurements. I
am pleased the drilling on the Cacao deposit increased the MRE in the inferred
mineral resource category by 69% to 101,000 oz gold at 2.5 g/t gold, the
interpretation is that drilling has clipped the top of a fully preserved
epithermal vein system with a strike length of at least 1km with the potential
to host over 1 million oz gold.
The MRE update was prepared by SRK Consulting (UK) Limited ("SRK") and uses
the terminology, definitions and guidelines given in the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and
Mineral Reserves (May 2014).
The updated Mineral Resource Estimate is 9,672 kt at 3.5g/t gold for 1,088,000
oz gold in the indicated mineral resource category and 8,642 kt at 4.3g/t gold
for 1,190,000 oz gold in the inferred mineral resource category. The 2022 FS
was conducted on La India Open Pit which has a Mineral Resource Estimate of
8,487 kt at 3.0g/t gold in for 827,000 oz gold in the indicated mineral
resource category and 893 Kt at 2.4 g/t gold for 69,000 oz gold in the
inferred mineral resource category. The La India Open Pit Mineral resource is
inclusive of a Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000
oz gold.
Outside the main La India open pit Mineral Reserve (the subject of the 2022
FS), there is a historical estimate, outlined in the 2021 Preliminary Economic
Assessment, of additional open pit Mineral Resources on four deposits
(America, Mestiza, Central breccia and Cacao) which represent an aggregate 206
Kt at 9.9 g/t gold for 66,000 oz in the indicated Mineral Resource category
and 2.1Mt at 3.3 g/t gold for 223,000 oz gold in the inferred Mineral Resource
category. In addition, there is an aggregate underground Mineral Resource
(La India, America, Mestiza, Central Breccia San Lucas,
Cristalito-Tatescame, and Cacao) of 979Kt at 6.2 g/t for 194,000 oz gold in
the indicated mineral resource category and 5.6Mt at 5.0 g/t gold for 898,000
oz gold in the inferred mineral resource category.
In March 2022, the Company announced drill results from infill drilling on
Mestiza open pit of 6.3 m true width at 6.84 g/t gold from 31.45 m and 3.6 m
true width at 29.1 g/t gold are both reassuring of the high-grade nature of
the deposit and continuity of grade. The wide zones of mineralisation within
the La India open pit, near surface of 34.1 m true width at 2.56 g/t gold
amalgamated from 2.80 m drill depth are confirmatory in nature.
During 2022, the Company has been focused on de-risking La India Project by
completing several technical and engineering studies for the 2022 FS, some of
which are a condition of the EP. In addition to a much more robust and
conservative MRE for the entire La India Project, the following key technical
studies were completed:
· The Tailings Storage Facility ("TSF") and two water retention ponds
have been fully designed and engineered with drawings one step short of
"issued for construction", which is beyond an FS level detail of design.
Tierra Group Inc, of Denver, Colorado completed site visits and the
engineering studies. The study included 23 geotechnical drill holes and 55
geotechnical test pits have been completed.
· The engineering of stormwater attenuation structure at La Simona has
been completed and designed to FS level.
· Completion of the site wide water balance ("SWWB"), including the
design of a surface water management plan by SRK. SRK's work includes the area
of the permitted La India, America and Mestiza open pits. The ultimate
objective of the exercise is to produce engineering plans for the installation
of the physical components of a management system, including the piping,
pumping and structural requirements that will satisfy Nicaraguan authorities
and at the same time meet the design standards for a feasibility study. The
SWWB will include consideration of the pit dewatering contributions (i.e.
subsurface hydrology). SRK's remit includes an emphasis on training and
capacity building for the local Condor team to ensure full ownership and
facilitate implementation and sustainability of the SWWB.
· Hydrogeology / pit water management - Condor successfully intercepted
the deepest level of the 1950s-era underground mine workings, providing
confidence that the said workings are suitable to tap into, in order to draw
down ground water levels and support depressurization of the pit slopes. A
test borehole close to the historical mineshaft was drilled in November 2021
and additional boreholes were drilled to the south and are locations for the
long-term pumping station.
· The processing plant designs to FS level have been completed by
Hanlon Engineering (owned by GR Engineering Services in Australia) using the
new SAG Mill packaged purchased by Condor in February 2021. The processing
plant designed has been laid out with the ability to double capacity from
2,800tpd.
· Site preparation and clearance of 14 hectares around the location of
the processing plant has been completed.
· Pit Geotechnical - approximately 2,800 m of geotechnical drilling was
completed by December 2021. Pit angles to FS level have been completed. This
involved oriented core drilling, followed by televiewer logging.
· Mine and waste dump schedules for a number of mining scenarios have
been completed to a level that can be submitted to MARENA. The FS level mine
and waste dump schedules have been completed.
· The power studies completed to FS level. Several meetings have been
held with the Ministry of Energy and Mines. National grid electricity pylons
are located 700 meters from the processing plant, and the Government is
building a new electricity sub-station 12km from the processing plant. Designs
for supplying grid power via the new sub-station are underway.
· The compensation plan under the local law is to replace every tree
removed with 10 new trees. Condor has a tree nursery which currently has
approximately 8,000 trees.
Highlights: Feasibility Study La India Open Pit only
The 2022 FS demonstrates a robust and economically viable base case for the La
India open pit:
· Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold
· Production averages 81,545 oz gold per annum for the first six years
of an 8.4 year mine life
· An Internal Rate of Return ("IRR") of 23% and a post tax, post
upfront capital cost NPV of US$86.9 million using a discount rate of 5% and
price of US$1,600 oz gold (Mineral Reserve Case).
· An Internal Rate of Return ("IRR") of 43% and a post tax, post
upfront capital cost NPV of US$205.2 million using a discount rate of 5% and
price of US$2,000 oz gold.
· Low initial capital requirement of US$105.5 million (including
contingency and EPCM contract)
Low average Life of Mine All-in Sustaining cash costs US$1,039 per oz gold
The Company's strategy of a two-stage approach to production is supported by
technical study released in October 2021, Condor Gold announced the key
findings of a technical report on the La India Gold Project prepared by SRK.
This technical report (the "Technical Report") presented the results of a
strategic mining study to Preliminary Economic Assessment ("PEA") standards.
The strategic study covers two scenarios: Scenario A, in which the mining is
undertaken from four open pits, termed La India, America, Mestiza and Central
Breccia Zone ("CBZ"), which targets a plant feed rate of 1.225 million tonnes
per annum ("Mtpa"); and Scenario B, where the mining is extended to include
three underground operations at La India, America and Mestiza, in which the
processing rate is increased to 1.4 Mtpa. The 2021 Technical Report was
issued in October 2021 and filed on SEDAR and the Company's websites for
public disclosure to NI 43-101 standards.
Highlights 1.225 Mtpa PEA La India Open Pit + Feeder Pits:
· IRR of 58% and a post-tax Net Present Value ("NPV") of US$302
million, at a discount rate of 5% and gold price of US$1,700/oz.
· Average annual production of ~120,000 oz of gold over the initial 6
years of production.
· 862,000 oz of gold produced over 9-year Life of Mine.
· Initial capital requirement of US$153 million (including
contingency).
· Payback period 12 months.
· All-in Sustaining Costs ("AISC") of US$813 per oz gold.
· Robust Base Case presents an IRR of 48% and a post-tax NPV of US$236
million at a discount rate of 5% and gold price of US$1,550/oz.
Highlights: 1.4Mtpa PEA Open Pit + Underground Operations
· IRR of 54% and a post-tax NPV of US$418 million, after deducting
upfront capex, at a discount rate of 5% and gold price of US$1,700/oz.
· Average annual production of ~150,000 oz of gold over the initial 9
years of production.
· 1,469,000 oz of gold produced over 12-year Life Of Mine.
· Initial capital requirement of US$160 million (including
contingency), where the underground development is funded through cash flow.
· Payback period 12 months.
· All-in Sustaining Costs of US$958 per oz gold over Life Of Mine.
The Company remains convinced that the La India Project is a major gold
district with the potential for significant future discoveries. Condor's
geologists have identified two major north-northwest-striking mineralised
basement feeder zones traversing the Project, the "La India Corridor", which
hosts 90% of Condor's gold mineral resource and the "Andrea Los Limones
Corridor". Numerous geophysics, soil geochemistry and surface rock chips
indicate the possibility for further mineralisation along strike. The updated
MRE 2022 for the Cacao deposit increased the MRE in the inferred mineral
resource category by 69% to 101,000 oz gold at 2.5 g/t gold, the
interpretation is that drilling has clipped the top of a fully preserved
epithermal vein system with a strike length of at least 1km with the potential
to host over 1 million oz gold.
The Company continues to enhance its social engagement and activities in the
community, thereby maintaining its social licence to operate. Condor has
strengthened its community team and stepped-up social activities and
engagement programmes. The main local focus is the drinking water programme,
implemented in April 2017. A total of 740 families are currently benefiting
from the program and currently receive five-gallon water dispensers each week.
In May 2021, the Company installed a water purification plant at a cost of
approximately US$200,000 to double the amount of drinking water provided to
the local communities.
In January 2018 Condor initiated 'Involvement Programmes', which now extend to
six groups in the local village to benefit communities which may be affected
by the mine. Taking the Elderly Group as an example, a committee of six people
has been formed. The Company allocates monthly support to the Elderly Group,
which decides how this money is spent to benefit the elderly in the Community.
Projects include a garden for medicinal herbs which are made into products
which are used by group members and sold to others in the community.
Condor continues to have very constructive meetings with key Ministries that
granted the EP for the La India, La Mestiza and America open pits. The Company
has been operating in Nicaragua since 2006 and, as a responsible gold
exploration and development company, continues to add value to the local
communities and environment by generating sustainable socio-economic and
environmental benefits. The new mine would potentially create approximately
1,000 jobs during the construction period, with priority to be given to
suitable skilled members of the local community. The upfront capital cost of
approximately US$105 million as detailed in the 2022 FS will have a
significant positive impact on the economy. The Government and local
communities will benefit significantly from future royalties and taxes.
In June 2022 the Company announced it had raised £3.25 million by way of a
private placement of new ordinary shares. (See RNS for details). On 21
December 2022 the Company announced a fundraise of £3.3M. See RNS for
details).
Turning to the financial results for the year 2022, the Group's loss for the
year was £2,537,459 (2021: £2,330,003). The Company raised a total of
£5,574,674 million after expenses during the financial period (2021:
£11,459,817). The net cash balance of the Group at 31 December 2022 was
£2,444,093 (2021: £2,072,046).
On 22 November 2022, the Company announced a strategy update and informed the
market that it had appointed an advisor to sell its assets.The Board reviewed
the Company's options, including going through a financing and construction
phase as a single asset, single jurisdiction company with no existing gold
production, and concluded that it is in the best interests of the Company and
all stakeholders to sell the assets of the Company to a gold producer with
mine building expertise, thus ensuring a new mine at La India, a significant
investment in the local area, and a regeneration of the local communities.
The focus for 2023 is to execute on a successful sale of the assets while
maintaining a social license to operate at the fully permitted La India
Project.
M L Child
CEO
Date: 27 March 2023
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
Notes Year Ended Year Ended
31.12.22 31.12.21
£ £
Administrative expenses (2,537,459) (2,330,003)
Operating loss 5 (2,537,459) (2,330,003)
Finance income 4 4,899 -
Loss before income tax (2,532,560) (2,330,003)
Income tax expense 6 - -
Loss for the year (2,532,560) (2,330,003)
Other comprehensive income:
Other comprehensive income to be reclassified to profit or loss in subsequent
periods:
Currency translation differences 3,232,610 (119,937)
Other comprehensive (loss) / income for the year 3,232,610 (119,937)
Total comprehensive loss for the year 700,050 (2,449,940)
Loss attributable to:
Non-controlling interest - -
Owners of the parent (2,532,560) (2,330,003)
(2,532,560) (2,330,003)
Total comprehensive loss attributable to:
Non-controlling interest - -
Owners of the parent 700,050 (2,449,940)
700,050 (2,449,940)
Earnings per share expressed in pence per share:
Basic and diluted (in pence) 8 (1.60) (1.70)
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
Notes 31.12.22 31.12.21
£ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 9 - 7,473,433
Intangible assets 10 - 28,100,980
- 35,574,413
CURRENT ASSETS
Assets classified as held for sale 11 42,937,116 -
Trade and other receivables 13 916,963 775,693
Cash and cash equivalents 2,444,093 2,072,046
46,298,172 2,847,739
TOTAL ASSETS 46,298,172 38,422,152
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 15 406,207 248,176
TOTAL LIABILITIES 406,207 248,176
NET CURRENT ASSETS 45,891,965 2,599,563
NET ASSETS 45,891,965 38,173,976
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 31,747,809 29,326,143
Called up share capital
16
Share premium 46,681,635 42,528,627
Exchange difference reserve 750,572 (2,482,038)
Retained earnings (33,288,051) (31,198,756)
45,891,965 38,173,976
Non-controlling interest - -
TOTAL EQUITY 45,891,965 38,173,976
The financial statements were approved and authorised for issue by the Board
of directors on 27 March 2023 and were signed on its behalf by:
M L Child - Chief Executive Officer
Company No: 05587987
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
Share Capital Share premium Exchange difference reserve Retained earnings Total Non-Controlling Interest Total Equity
£ £ £ £ £ £ £
At 1 January 2021 23,732,526 37,175,626 (2,362,101) (29,381,952) 29,164,099 - 29,164,099
Comprehensive income:
Loss for the year - - - (2,330,003) (2,330,003) - (2,330,003)
Other comprehensive income:
Currency translation differences - - (119,937) - (119,937) - (119,937)
Total comprehensive income - - (119,937) (2,330,003) (2,449,940) - (2,449,940)
New shares issued 5,593,617 5,366,126 - - 10,959,743 - 10,959,743
Issue costs - (13,125) - - (13,125) - (13,125)
Share based payment - - - 513,199 513,199 - 513,199
Total transactions with owners, recognised directly in equity 5,593,617 5,353,001 - 513,199 11,459,817 - 11,459,817
At 31 December 2021 29,326,143 42,528,627 (2,482,038) (31,198,756) 38,173,976 - 38,178,976
Comprehensive income:
Loss for the year - - - (2,532,560) (2,532,560) - (2,532,560)
Other comprehensive income:
Currency translation differences - - 3,232,610 - 3,232,610 - 3,232,610
Total comprehensive income - - 3,232,610 (2,532,560) 700,050 - 700,050
New shares issued 2,421,666 4,168,008 - - 6,589,674 - 6,589,674
Issue costs - (15,000) - - (15,000) - (15,000)
Share based payment - - - 443,265 443,265 - 443,265
Total transactions with owners, recognised directly in equity 2,421,666 4,153,008 - 443,265 7,017,939 - 7,017,939
At 31 December 2022 31,747,809 46,681,635 750,572 (33,288,051) 45,891,965 - 45,891,965
Share premium reserve represents the amounts subscribed for share capital in
excess of the nominal value of the shares issued, net of cost of issue.
The exchange difference reserve is a separate component of Shareholders'
equity in which the exchange differences, arising from translation of the
results and financial positions of foreign operations that are included in the
Group's Consolidated Financial Statements, are reported.
Retained earnings represent the cumulative net gains and losses recognised in
the consolidated income statement.
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
Notes 31.12.22 31.12.21
£ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 9 - 4,309,955
Investments 11 751,977 751,977
Other receivables 13 43,500,630 39,511,480
44,252,607 44,573,412
CURRENT ASSETS
Assets classified as held for sale 11 4,474,402 -
Trade and other receivables 13 333,101 33,329
Cash and cash equivalents 2,407,187 1,956,467
7,214,690 1,989,796
TOTAL ASSETS 51,467,297 46,563,208
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 15 249,357 169,456
TOTAL LIABILITIES 249,357 169,456
NET CURRENT ASSETS 6,965,333 1,820,340
NET ASSETS 51,217,940 46,393,752
SHAREHOLDERS' EQUITY 31,747,809 29,326,143
Called up share capital 16 46,681,635 42,528,627
Share premium (27,211,504) (25,461,018)
Retained earnings
TOTAL EQUITY 51,217,940 46,393,752
The loss for the financial year dealt with in the financial statement of the
parent company was £2,193,751 (2021: £1,970,977).
The financial statements were approved and authorised for issue by the Board
of directors on 27 March 2023 and were signed on its behalf by:
M L Child - Chief Executive Officer
Company No: 05587987
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2022
Share capital Share premium Retained earnings Total
£ £ £ £
At 1 January 2021 23,732,526 37,175,626 (24,003,240) 36,904,912
Comprehensive income:
Loss for the period - - (1,970,977) (1,970,977)
Total comprehensive income - - (1,970,977) (1,970,977)
New shares issued 5,593,617 5,366,126 - 10,959,743
Issue costs - (13,125) - (13,125)
Share based payment - - 513,199 513,199
Total transactions with owners recognised directly in equity 5,593,617 5,353,001 513,199 11,459,817
At 31 December 2021 29,326,143 42,528,627 (25,461,018) 46,393,752
Comprehensive income:
Loss for the period - - (2,193,751) (2,193,751)
Total comprehensive income - - (2,193,751) (2,193,751)
New shares issued 2,421,666 4,168,008 - 6,589,674
Issue costs - (15,000) - (15,000)
Share based payment - - 443,265 443,265
Total transactions with owners recognised directly in equity 2,421,666 4,153,008 443,265 7,017,939
At 31 December 2022 31,747,809 46,681,635 (27,211,504) 51,217,940
Share premium reserve represents the amounts subscribed for share capital in
excess of the nominal value of the shares issued, net of cost of issue.
Retained earnings represent the cumulative net gains and losses recognised in
the Company's income statement.
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2022
Year Ended Year-Ended
31.12.22 31.12.21
£ £
Cash flows from operating activities
Loss before tax (2.532,560) (2,330,003)
Share based payment 443,265 513,199
Depreciation 68,315 88,264
Exchange differences 3,187 78,873
Finance income (4,899) -
(2,022,692) (1,649,667)
(Increase) / Decrease in trade and other receivables (141,270) (661,284)
Increase / (Decrease) in trade and other payables 158,031 (18,236)
Net cash used in operating activities (2,005,931) (2,329,187)
Cash flows from investing activities
Purchase of tangible fixed assets (446,853) (2,370,879)
Purchase of intangible fixed assets (3,754,742) (6,188,725)
Interest received 4,899 -
Net cash used in investing activities (4,196,696) (8,559,604)
Cash flows from financing activities
Net proceeds from share issue 6,574,674 8,801,446
Net cash from financing activities 6,574,674 8,801,446
Increase / (Decrease) in cash and cash equivalents 372,047 (2,087,345)
Cash and cash equivalents at beginning of year 2,072,046 4,159,391
Cash and cash equivalents at end of year 2,444,093 2,072,046
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2022
Year Ended Year Ended
31.12.22 31.12.21
£ £
Cash flows from operating activities
Loss before tax (2,193,751) (1,970,977)
Share based payment 443,265 513,199
Finance income (4,899) -
(1,755,385) (1,457,778)
(Increase) / Decrease in trade and other receivables (299,772) (2,673)
Increase / (Decrease) in trade and other payables 79,901 (14,330)
Net cash used in operating activities (1,975,256) (1,474,781)
Cash flows from investing activities
Purchase of tangible fixed assets (164,447) (2,164,783)
Interest received 4,899 -
Loans to subsidiaries (3,989,150) (7,250,989)
Net cash used in investing activities (4,148,698) (9,415,772)
Cash flows from financing activities
Proceeds from share issue 6,574,674 8,801,446
Net cash from financing activities 6,574,674 8,801,446
Increase / (Decrease) in cash and cash equivalents 450,720 (2,089,107)
Cash and cash equivalents at beginning of year 1,956,467 4,045,574
Cash and cash equivalents at end of year 2,407,187 1,956,467
Basis of preparation
The financial statements have been prepared in accordance with UK-adopted
International Financial Reporting Standards (IFRS and IFRIC interpretations)
("IFRS") in force at the reporting date, and their interpretations issued by
the International Accounting Standards Board ("IASB"), and with IFRS and their
interpretations issued by the IASB. The parent company financial statements
have also been prepared in accordance with those parts of the Companies Act
2006 applicable to companies reporting under IFRS. The financial statements
have been prepared under the historical cost convention except for the
revaluation of certain financial instruments that are measured at fair value.
The financial information set out in this announcement does not constitute the
Group's statutory financial statements for the year ended 31 December 2022 or
2021, but is derived from these financial statements. The financial statements
for the year ended 31 December 2021 have been delivered to the Registrar of
Companies. The financial statements for the year ended 31 December 2022 will
be forwarded to the Registrar of Companies following the Company's Annual
General Meeting. The Auditors have reported on these financial statements;
their reports were unqualified and did not contain statements under Section
498(2) or (3) of the Companies Act 2006.
Going concern
The Group reviews its going concern status, via comparisons to budgets, cash
flow forecasts, and access to further financing. At the balance sheet date the
Group had £2,444,093 of cash. In common with many exploration companies, the
Company raises finance for its exploration and appraisal activities in
discrete tranches to finance its activities for limited periods only. The
Directors have identified that further funding will be required during 2022
for working capital purposes and to construct the processing facility at La
India Project. The Directors are confident that the Company will be able to
raise these funds however there is no binding agreement in place to date. In
addition, the timing and quantum of any asset sale is currently uncertain.
These conditions may cast doubt on the Group and Company's ability to continue
as a going concern. It is not the Company's intention to cease trading after
the potential sale of the Nicaraguan assets.
The Directors have prepared a cash flow forecast which assumes that the Group
and Company is not able to raise additional funds within the going concern
period and if that was the case, the forecasts demonstrate that austerity
measures can be implemented to reduce the Group and Company's cash outflows to
the minimal contracted and committed expenditure while also maintaining the
Group's licences and permits. These forecasts assume that Directors and Key
management personnel salaries are deferred and/or reduced as part of the
austerity measures - notwithstanding the above, further funding would
nonetheless be required in order to continue into operational existence for at
least 12 months from the date of approval of this report. Based on their
assessment of the financial position, the Directors however have a reasonable
expectation that the Group and Company will be able to continue in operational
existence for the next twelve months and continue to adopt the going concern
basis of accounting in preparing these financial statements.
- Ends -
For further information please visit www.condorgold.com or contact:
Condor Gold plc
Mark Child, CEO
+44 (0) 20 7493 2784
Beaumont Cornish Limited Roland Cornish and James Biddle
+44 (0) 20 7628 3396
SP Angel Corporate Finance Ewan Leggat
LLP
+44 (0) 20 3470 0470
About Condor Gold plc:
Condor Gold plc was admitted to AIM in May 2006 and dual listed on the TSX in
January 2018. The Company is a gold exploration and development company with a
focus on Nicaragua.
On 25 October 2021 Condor announced the filing of a Preliminary Economic
Assessment Technical Report ("PEA") for its La India Project, Nicaragua on
SEDAR https://www.sedar.com. The highlight of the technical study is a
post-tax, post upfront capital expenditure NPV of US$418 million, with an IRR
of 54% and 12 month pay-back period, assuming a US$1,700 per oz gold price,
with average annual production of 150,000 oz gold per annum for the initial 9
years of gold production. The open pit mine schedules have been optimised from
designed pits, bringing higher grade gold forward resulting in average annual
production of 157,000 oz gold in the first 2 years from open pit material and
underground mining funded out of cashflow.
In August 2018, the Company announced that the Ministry of the Environment in
Nicaragua had granted the Environmental Permit ("EP") for the development,
construction and operation of a processing plant with capacity to process up
to 2,800 tonnes per day at its wholly-owned La India gold Project ("La India
Project"). The EP is considered the master permit for mining operations in
Nicaragua. Condor has purchased a new SAG Mill, which has mainly arrived in
Nicaragua. Site clearance and preparation is at an advanced stage.
Environmental Permits were granted in April and May 2020 for the Mestiza and
America open pits respectively, both located close to La India. The Mestiza
open pit hosts 92 Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in
the Indicated Mineral Resource category and 341 Kt at a grade of 7.7 g/t gold
(85,000 oz contained gold) in the Inferred Mineral Resource category. The
America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the
Indicated Mineral Resource category and 677 Kt at a grade of 3.1 g/t gold
(67,000 oz) in the Inferred Mineral Resource category. Following the
permitting of the Mestiza and America open pits, together with the La India
Open Pit Condor has 1.12 M oz gold open pit Mineral Resources permitted for
extraction.
Disclaimer
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
Qualified Persons
The technical and scientific information in this press release has been
reviewed, verified and approved by Andrew Cheatle, P.Geo., who is a "qualified
person" as defined by NI 43-101 and Gerald D. Crawford, P.E., who is a
"qualified person" as defined by NI 43-101 and is the Chief Technical Officer
of Condor Gold plc.
Technical Information
Certain disclosure contained in this document relating to the La India Project
of a scientific or technical nature has been summarized or extracted from the
technical report entitled "Condor Gold Technical Report on the La India Gold
Project, Nicaragua", dated October 2022 (the "Technical Report"), prepared in
accordance with NI 43-101. The Technical Report was prepared by or under the
supervision of Tim Lucks, Principal Consultant (Geology & Project
Management), Fernando Rodrigues, Principal Consultant (Mining), Eric Olin,
Principal Consultant (Metallurgy) Benjamin Parsons, Principal Consultant
(Resource Geology), each of SRK Consulting (UK) Limited, each of whom is an
independent Qualified Person as such term is defined in NI 43-101.
Forward Looking Statements
All statements in this press release, other than statements of historical
fact, are 'forward-looking information' with respect to the Company within the
meaning of applicable securities laws, including statements with respect to:
Developmment Plans for the La India Project, Mineral Reserves and Resources at
La India Project. Forward-looking information is often, but not always,
identified by the use of words such as: "seek", "anticipate", "plan",
"continue", "strategies", "estimate", "expect", "project", "predict",
"potential", "targeting", "intends", "believe", "potential", "could", "might",
"will" and similar expressions. Forward-looking information is not a guarantee
of future performance and is based upon a number of estimates and assumptions
of management at the date the statements are made including, among others,
assumptions regarding: future commodity prices and royalty regimes;
availability of skilled labour; timing and amount of capital expenditures;
future currency exchange and interest rates; the impact of increasing
competition; general conditions in economic and financial markets;
availability of drilling and related equipment; effects of regulation by
governmental agencies; the receipt of required permits; royalty rates; future
tax rates; future operating costs; availability of future sources of funding;
ability to obtain financing and assumptions underlying estimates related to
adjusted funds from operations. Many assumptions are based on factors and
events that are not within the control of the Company and there is no
assurance they will prove to be correct.
Such forward-looking information involves known and unknown risks, which may
cause the actual results to be materially different from any future results
expressed or implied by such forwardlooking information, including, risks
related to: mineral exploration, development and operating risks; estimation
of mineralisation, resources and reserves; environmental, health and safety
regulations of the resource industry; competitive conditions; operational
risks; liquidity and financing risks; funding risk; exploration costs;
uninsurable risks; conflicts of interest; risks of operating in Nicaragua;
government policy changes; ownership risks; permitting and licencing risks;
artisanal miners and community relations; difficulty in enforcement of
judgments; market conditions; stress in the global economy; current global
financial condition; exchange rate and currency risks; commodity prices;
reliance on key personnel; dilution risk; payment of dividends; as well as
those factors discussed under the heading "Risk Factors" in the Company's
annual information form for CONDOR GOLD PLC. Registered in England and Wales
No 5587987 Registered Office: 7/8 Innovation Place, Douglas Drive, Godalming,
Surrey, GU7 1JX the fiscal year ended December 31, 2020 dated March 31, 2021,
available under the Company's SEDAR profile at www.sedar.com. Although the
Company has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking information, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate as actual
results and future events could differ materially from those anticipated in
such statements. The Company disclaims any intention or obligation to update
or revise any forward-looking information, whether as a result of new
information, future events or otherwise unless required by law.
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