REG - Condor Gold PLC - Interim Report & Accounts for 6 Months To 30 June
27/09/2024 07:00
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RNS Number : 8973F Condor Gold PLC 27 September 2024
Condor Gold Plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
27 September 2024
Condor Gold Plc
("Condor" or "the Company")
Interim Report and Accounts for the Six Months Ended 30 June 2024
Condor Gold plc ("Condor Gold", "Condor", the "Group" or the "Company"), (AIM:
CNR; TSX: COG) presents its unaudited interim financial report for the
six-month periods to 30 June 2024. It has been posted on the Company's
websites www.condorgold.com (http://www.condorgold.com) and ca.condorgold.com
(http://ca.condorgold.com/) . It is also available on SEDAR at www.sedar.com
(http://www.sedar.com) .
Highlights for six months to 30 June 2024
· There continues to be significant interest in the sale of the
Company's assets.
· The Company remains in discussion with a number of interested
parties, both longer term and more recent, with several new parties having
expressed an interest, been given access to the data room and indicating a
wish to conduct site visits.
· The "Geological setting of gold-silver mineralisation in the La
India mining district, Nicaragua" by English, L.T.P., Galvan, V.H. and
Pullinger, C.R. was published in the first edition of open-access online
journal Naturalis Scientias.
· 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 23 May the Company announced it had raised £500,000 via the
exercise of warrants by Galloway Limited, a company wholly owned by Burnbrae
Group Limited, which is, in turn, wholly owned by Jim Mellon, Condor's
Chairman, increasing Galloway's shareholding to 26.13% of Condor Gold.
Post Period Highlights
· On 15 July 2024 the Company raised £220,000 via the exercise of
options, The proceeds came from Galloway Limited, a company wholly owned by
Burnbrae Group Limited, which is, in turn, wholly owned by Jim Mellon,
Condor's Chairman, increasing Galloway's shareholding to 26.12%, Mark Child,
the CEO, increasing his shareholding to 2.38% of the Company, Dave Crawford
the CTO and other employee option holders.
· On 31 July 2024 the Company provided an update on the sales
process.
· The significantly higher gold price has resulted in more interest
in the acquisition of the Company's assets.
Chairman's Statement for the Six Months to 30 June 2024
Dear Shareholder,
I continue to be impressed by the executive team's dedication to getting our
project shovel ready. This has elicited considerable interest in the current
sales process, which has been aided by a 35% increase in the gold price since
the lows of 2023.
The focus during the 6-month period to 30 June 2024 has been on the sale of
the Company's assets in Nicaragua. 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 carefully reviewed the Company's options as the
Project is "construction ready" with an 18-month construction timeline. Such
options included going through a financing and construction phase but, as a
single asset, single jurisdiction company without an experienced mine building
team and without gold production from other mines, the Board formed the view
that this would not be in the Company's best interests, and concluded that it
was 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 and significant investment in the local area,
which will regenerate the local communities. The focus for 2024 is to execute
a successful sale of the assets while maintaining a social licence to operate
at the fully permitted La India Project.
By way of an update on the sales process as at 26(th) September 2024 there are
currently eight companies under Non-Disclosure Agreements (NDAs), five
non-binding offers received and three site visits completed. Although none of
the non-binding offers have progressed to firm proposals to date, the Company
is in discussions with several gold producers. The Board is optimistic that a
sale will be concluded in the near future.
Wholly owned, fully permitted, construction ready gold mines, with a
Feasibility Study completed, with potential production of 150,000 oz gold per
annum, in major Gold Districts, with the land acquired and a new SAG Mill
package purchased are rare and in demand by gold producers replenishing
depleting reserves. We are very aware of the value of our assets and will not
allow them to go at anything other than a fair price.
Turning to the financial results for the 2024 6-month period, the Group's loss
for the period was £518,217 (2023: £965,815). The net cash balance of the
Group at 30 June 2024 was £1,084,498 (2023: £584,837). During the period,
there was a £1,379,784 foreign exchange gain (2023 £2,294,117 loss). This is
as a result of significant changes in USD against GBP. The Board is aware of
currency fluctuations and is working to mitigate any further losses.
I would also like to draw your attention to the Corporate Governance Report on
Pages 26 - 30 which details how we comply with the QCA Code.
Finally, it remains for me to thank our executive and also our team on the
ground in Nicaragua for their unstinting efforts in continuing to maintain and
develop our Project.
Jim Mellon
Chairman
CEO'S Report for the Six Months to 30 June 2024
Dear Shareholder,
I am pleased to present Condor Gold Plc's ("Condor", the "Company" or the
"Group") report for the 6-month financial period to 30 June 2024.
The Chairman has provided an update on the sales process. I would like to add
that it has been a difficult period for Condor Gold shareholders. At the time
of writing our shares are broadly unchanged since the 1(st) January 2024,
while the gold price have increased from US$2,043 oz gold to US$2,665 oz gold
or 30.4% and gold related equity indices are up significantly. Nevertheless,
by almost any measure, Condor Gold's assets are considerably more attractive
than at any time in the past, a fact that is clearly demonstrated in the
tables below, which compare a Feasibility Study and PEAs conducted at US$1,600
oz gold and US$1,550 oz gold respectively with a US$2,400 oz gold price. In
all 3 scenarios, NPVs increase 3 to 4 fold to a maximum of US$907 million,
IRRs average 100%, the payback period reduces in 2 cases to only 6 months and
the EBITDA more than doubles, in one scenario to US$2.3Bn. In my view, the
extremely attractive project economics will lead to a successful sale of the
assets particularly as advanced exploration work indicates La India Project
has the potential to host a major gold district. The engineering studies in
the Feasibility Study demonstrate there are no fatal flaws in the project from
a technical perspective. At some point the market will realise the complete
disconnect between the market capitalisation of circa US$60 million and the
project economics of a construction ready, fully permitted and materially
de-risked project, with a SAG Mill package and surface rights purchased.
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 Technical Report ("2022 FS") on 26 October
2022 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 significantly 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, processing 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 and after sustaining
capital, the EBITDA is US$355 million, which in Condor's opinion is ample to
repay any project debt on the relatively low upfront capex. At US$2,400 oz
gold after paying royalties and sustaining capital the operating profit is
US$770 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. See comparison
table for La India open pit below for FS at US$1,600 oz gold vs US$2,400 oz
gold:
Description
Study type Feasibility Feasibility
Mining Method Open Pit Open Pit
Accuracy of Estimate ± 15% ± 15%
Metal Price Au $/tr.oz 1,600 2,400
Production
Ore Mined dmt-000s 7,318 7,318
Au Grade g/t 2.56 2.56
Waste Produced dmt-000s 96,707 96,707
Strip Ratio w:o 13.2 13.2
Tonnes Ore Milled/yr tpy-000s 886 886
Total Gold Production tr.ozs-000s 548 548
Annual Au Prod 6 yrs. tr.ozs-000s 82 82
Net Revenues $US M 888 1,330
Less Operating Expense $US M (480) (480)
Less Sustaining Capital $US M (47) (47)
Less Royalty $US M (53) (80)
EBITDA $US M 355 770
Initial Capital $US M (105) (105)
Taxes $US M (68) (187)
NPV@0% $US M 134 430
NPV@5% $US M 87 320
IRR % 23.1% 60.8%
All-in Sustaining Capital $US M 1,039 1,080
Payback Period Months 40 20
Notes: Capital and Operating costs as of 2022. Pit designs have not been
re-optimized for higher metal prices.
The plan is to materially expand production 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 India 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 providing an
indication of production targets.
The 2022 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.
The Company's strategy of a two-stage approach to production is supported by a
technical study released in October 2021, when 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");
See comparison table for La India open pit below for PEA of all open pits (3
are fully permitted) at US$1,550 oz gold vs US$2,400 oz gold. The EBITDA
increases to US$1,362 million from US$667 million and NPV increases to US$ 607
million vs US$ 236 million and importantly the payback period reduces to 6
months.
Description
Study type PEA PEA
Mining Method Open Pit Open Pit
Accuracy of Estimate ± 50% ± 50%
Metal Price Au $/tr.oz 1,550 2,400
Production
Ore Mined dmt-000s 10,634 10,634
Au Grade g/t 2.77 2.77
Waste Produced dmt-000s 118,342 118,342
Strip Ratio w:o 11.1 11.1
Tonnes Ore Milled/yr tpy-000s 1,225 1,225
Total Gold Production tr.ozs-000s 862 862
Annual Au Prod 6 yrs. tr.ozs-000s 120 120
Net Revenues $US M 1,353 2,092
Less Operating Expense $US M (604) (604)
Less Sustaining Capital $US M (34) (34)
Less Royalty $US M (81) (125)
EBITDA $US M 667 1,362
Initial Capital $US M (153) (153)
Taxes $US M (145) (353)
NPV@0% $US M 336 823
NPV@5% $US M 236 607
IRR % 48.2% 101.3%
All-in Sustaining Capital $US M 813 856
Payback Period Months 12 6
Notes: Capital and Operating Costs are as of 2021. Many elements of the
PEA designs are at PFS levels of accuracy. Pit designs have not been
optimized for higher metal prices.
PEA 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.
See comparison table for La India open pit below for PEA of all open pits and
underground at US$1,550 oz gold vs US$2,400 oz gold: The EBITDA increases to
US$2,318 million from US$1,136 million and NPV increases to US$ 907 million
vs US$ 313 million and importantly the payback period reduces to 6 months.
Description
Study type PEA PEA
Mining Method OP + UG OP + UG
Accuracy of Estimate ± 50% ± 50%
Metal Price Au $/tr.oz 1,550 2,400
Production
Ore Mined dmt-000s 15,702 15,702
Au Grade g/t 3.18 3.18
Waste Produced dmt-000s
Strip Ratio w:o n/a n/a
Tonnes Ore Milled/yr tpy-000s 1,400 1,400
Total Gold Production tr.ozs-000s 1,469 1,469
Annual Au Prod 6 yrs. tr.ozs-000s 160 160
Net Revenues $US M 2,304 3,562
Less Operating Expense $US M (1,030) (1,030)
Less Sustaining Capital $US M (268) (268)
Less Royalty $US M (138) (214)
EBITDA $US M 1,136 2,318
Initial Capital $US M (160) (160)
Taxes $US M (227) (579)
NPV@0% $US M 480 1,311
NPV@5% $US M 313 907
IRR % 43.2% 98.6%
All-in Sustaining Capital $US M 958 1,002
Payback Period Months 12 6
Notes: Capital and Operating Costs are as of 2021. Many elements of the
PEA designs are at PFS levels of accuracy. Pit designs have not been
optimized for higher metal prices.
The Company remains convinced that the 587 sq km 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$250,000 to provide drinking water 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 Environment Permit (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. This includes skills training. The
new mine would potentially create approximately 1,000 jobs during the
construction period, with priority to be given to suitably skilled members of
the local community. The upfront capital cost of approximately US$106 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.
Mark Child
Chief Executive Officer
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2024
Six months Six months
to 30.06.24 to 30.06.23
unaudited unaudited
£ £
Revenue - -
Share based payments (137,314) (162,425)
Administrative expenses (391,078) (810,702)
Operating loss (528,392) (973,127)
Finance income 10,175 7,312
Loss before income tax (518,217) (965,815)
Income tax expense - -
Loss for the period (518,217) (965,815)
Other comprehensive income/(loss):
Currency translation differences 1,379,784 (2,294,117)
Other comprehensive income/(loss) for the period 1,379,784 (2,924,117)
Total comprehensive income/(loss) for the period 861,567 (3,259,932)
Earnings per share expressed in pence per share:
Basic and diluted (in pence) (0.25) (0.61)
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30.06.24 31.12.23 30.06.23
unaudited audited unaudited
£ £ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment - - -
Intangible assets - - -
- - -
CURRENT ASSETS
Assets classified as held for sale 44,774,901 42,422,705 41,785,894
Trade and other receivables 594,771 575,389 634,310
Cash and cash equivalents 1,084,498 1,969,249 584,837
46,454,170 44,967,343 43,005,041
TOTAL ASSETS 46,454,170 44,967,343 43,005,041
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 175,703 187,845 137,145
TOTAL LIABILITIES 175,703 187,845 137,145
NET CURRENT ASSETS 46,278,467 44,779,498 42,867,896
46,278,467 44,779,498 42,867,896
NET ASSETS
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital 31,770,809 31,767,151 31,748,067
Share premium 50,099,562 49,603,132 46,754,815
Exchange difference reserve (545,631) (1,925,415) (1,543,545)
Retained earnings (35,046,273) (34,665,370) (34,091,441)
46,278,467 44,779,498 42,867,896
TOTAL EQUITY
CONDOR GOLD PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30.06.24 31.12.23 30.06.23
unaudited audited unaudited
£ £ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment - - -
Investments 751,977 751,977 751,977
Other receivables 47,169,753 46,075,477 44,944,687
47,921,730 46,827,454 45,696,664
CURRENT ASSETS
Assets classified as held for sale 4,474,402 4,474,402 4,474,402
Trade and other receivables 25,907 22,862 77,772
Cash and cash equivalents 957,524 1,916,322 542,713
5,457,833 6,413,586 5,094,887
TOTAL ASSETS 53,379,563 53,241,040 50,791,551
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 166,229 190,329 147,626
TOTAL LIABILITIES 166,229 190,329 147,626
NET CURRENT ASSETS 5,291,604 6,223,257 4,947,261
53,213,334 53,050,711 50,643,925
NET ASSETS
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital 31,770,719 31,767,151 31,748,067
Share premium 50,099,562 49,603,132 46,754,815
Retained earnings (28,656,947) (28,319,572) (27,858,957)
53,213,334 53,050,711 50,643,925
TOTAL EQUITY
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2024
Share capital Share premium Exchange difference reserve Retained earnings Total equity
£ £ £ £ £
At 1 January 2023 31,747,809 46,681,635 750,572 (33,288,051) 45,891,965
Loss for the period - - - (965,815) (965,815)
Other comprehensive income: - - - - -
Currency translation differences - - (2,294,117) - (2,294,117)
Total comprehensive income - - (2,294,117) (965,815) (3,259,932)
New shares issued 258 73,180 - - 73,438
Issue costs - - - - -
Share based payment - - - 162,425 162,425
Total contributions by & distributions to owners of the parent, recognised
directly in equity
258 73,180 - 162,425 235,863
At 30 June 2023 31,748,067 46,754,815 (1,543,545) (34,091,441) 42,867,896
At 1 January 2024 31,767,151 49,603,132 (1,925,415) (34,665,370) 44,779,498
Loss for the period - - - (518,217) (518,217)
Other comprehensive income: - - - - -
Currency translation differences - - 1,379,784 - 1,379,784
Total comprehensive income - - 1,379,784 (518,217) 861,567
New shares issued 3,658 496,430 - - 500,088
Issue costs - - - - -
Share based payment - - - 137,314 137,314
Total contributions by & distributions to owners of the parent, recognised
directly in equity
3,658 496,430 - 137,314 637,402
At 30 June 2024 31,770,809 50,099,562 (545,631) (35,046,273) 46,278,467
CONDOR GOLD PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2024
Share capital Share premium Retained earnings Total
£ £ £ £
At 1 January 2023 31,747,809 46,681,635 (27,211,504) 51,217,940
Comprehensive income:
Loss for the period - - (809,878) (809,878)
Total comprehensive income - - (809,878) (809,878)
New shares issued 258 73,180 - 73,438
Issue costs - - - -
Share based payment - - 162,425 162,425
Total transactions with owners recognised directly in equity 258 73,180 162,425 235,863
At 30 June 2023 31,748,067 46,754,815 (27,858,957) 50,643,925
At 1 January 2024 31,767,151 49,603,132 (28,319,572) 53,050,711
Comprehensive income:
Loss for the period - - (474,690) (474,690)
Total comprehensive income - - (474,690) (474,690)
New shares issued 3,568 496,430 - 499,998
Issue costs - - - -
Share based payment - - 137,314 137,314
Total transactions with owners recognised directly in equity 3,568 496,430 137,314 637,312
At 30 June 2024 31,770,719 50,099,562 (28,656,947) 53,213,333
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2024
Six months Six months
to 30.06.24 to 30.06.23
unaudited unaudited
£ £
Loss before tax (518,217) (965,815)
Share based payment 137,314 162,425
Depreciation charges 26,137 27,461
Finance income (10,175) (7,312)
(364,941) (783,241)
(Increase)/ decrease in trade and other receivables (19,382) 282,653
(Decrease)/increase in trade and other payables (12,142) (269,062)
Net cash used in operating activities (396,465) (769,650)
Cash flows from investing activities
Purchase of intangible fixed assets (1,204,575) (1,067,405)
Purchase of tangible fixed assets (5,323) (11,014)
Interest received 10,175 7,312
Net cash used in investing activities (1,199,723) (1,071,107)
Cash flows from financing activities
Net proceeds from share issue 500,088 73,438
Net cash generated from financing activities 500,088 73,438
Increase/(decrease) in cash and cash equivalents (1,096,102) (1,767,319)
Cash and cash equivalents at beginning of period 1,969,249 2,444,093
Exchange losses/ (gains) on cash and bank 211,351 (91,937)
Cash and cash equivalents at end of period 1,084,498 584,837
CONDOR GOLD PLC
CONDENSED COMPANY STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2024
Six months Six months
to 30.06.24 unaudited to 30.06.23 unaudited
£ £
Cash flows from operating activities
Loss before tax (474,690) (809,878)
Share based payment 137,314 162,425
Finance income (10,175) (7,312)
(347,551) (654,765)
(Increase) / Decrease in trade and other receivables (3,045) 255,329
Increase / (Decrease) in trade and other payables (24,100) (101,731)
Net cash used in operating activities (374,696) (501,167)
Cash flows from investing activities
Purchase of tangible fixed assets - -
Interest received 10,175 7,312
Loans to subsidiaries (1,094,276) (1,444,057)
Net cash used in investing activities (1,084,101) (1,436,745)
Cash flows from financing activities
Proceeds from share issue
499,998 73,438
Net cash from financing activities 499,998 73,438
Increase / (Decrease) in cash and cash equivalents (958,798) (1,864,474)
Cash and cash equivalents at beginning of period 1,916,322 2,407,187
Cash and cash equivalents at end of period 957,524 542,713
- 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 LLP Ewan Leggat
+44 (0) 20 3470 0470
H&P Advisory Limited Andrew Chubb, Matt Hasson, Jay Ashfield
+44 207 907 8500
Adelaide Capital (Investor Relations) Deborah Honig
+1-647-203-8793
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.
The Company's principal asset is La India Project, Nicaragua, which comprises
of a large, highly prospective land package of 588 sq km comprising of 12
contiguous and adjacent concessions. The Company has filed a feasibility study
technical report dated 25 October 2022 and entitled "Condor Gold Technical
Report on the La India Gold Project, Nicaragua, 2022" (the "2022 FS") which is
available on the Company's SEDAR profile at www.sedar.com and was prepared in
accordance with the requirements of NI 43-101. The 2022 FS indicated that La
India Project hosts a high grade Mineral Resource Estimate ("MRE") 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 open pit MRE 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. Total
underground MRE is 979 kt at 6.2 g/t gold for 94,000 oz gold in the indicated
mineral resource category and 5,615 kt at 5.0 g/t gold for 98,000 oz gold in
the inferred mineral resource category.
The 2022 FS replaces the previously reported Preliminary Economic Assessment
("PEA") as presented in the Technical Report filed on SEDAR in October 2021 as
the current technical report for the La India project.
The 2021 PEA considered the expanded Project inclusive of the exploitation of
the Mineral Resources associated to the La India, Mestiza, America and Central
Breccia deposits. 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 PEA
Scenario B presented 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 were 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.
The 2021 PEA Scenario A presented a post-tax, post upfront capital expenditure
NPV of US$302 million, with an IRR of 58% and 12 month pay-back period,
assuming a US$1,700 per oz gold price, with average annual production of
approximately 120,000 oz gold per annum for the initial 6 years of gold
production. The Mineral Resource estimate and associated Preliminary Economic
Assessment contained in the 2021 PEA are considered a historical estimate
within the meaning of NI 43-101, a qualified person has not done sufficient
work to classify such historical estimate as current, and the Company is not
treating the historical Mineral Resource estimate and associated studies as
current, and the reader is cautioned not to rely upon this data as such.
Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability. The Company believes that the historical Mineral Resource
estimate and Preliminary Economic assessment is relevant to the continuing
development of the La India Project.
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., a director of
Condor Gold plc, and Gerald D. Crawford, P.E., the Chief Technical Officer of
Condor Gold plc, each of whom is a "qualified person" as defined by NI 43-101.
Nominated Adviser
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
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:
the issuance of the Payment Shares, including the receipt of the approvals of
AIM and the TSX; future development and production plans, projected capital
and operating costs, mine life and production rates, metal or mineral recovery
estimates, Mineral Resource, Mineral Reserve estimates at the La India
Project, the potential to convert Mineral Resources into Mineral Reserves, the
Company's plans to sell the assets of the Company or seek alternatives to an
asset sale and the construction timeline of the La India project upon receipt
of financing. 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 forward-looking information, including, risks
related to: mineral exploration, development and operating risks; estimation
of mineralisation and resources; 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 the
fiscal year ended December 31, 2021 dated March 29, 2022 and available under
the Company's SEDAR profile at www.sedar.com (http://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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