REG - Condor Gold PLC - Interim Report and Accounts <Origin Href="QuoteRef">CNDR.L</Origin> - Part 2
21/09/2017 07:06
- Part 2: For the preceding part double click ID:nRSU3598Ra
SRK Consulting (UK) Ltd., a Competent Person as defined by the CIM
Code.
Table 4. JORC Compliant Mineral Resource Statement as at 28 November 2011 for
the Rio Luna Concession (SRK Consulting (UK) Ltd.).
SRK Mineral Resource Statement, Rio Luna Deposit, 28th November 2011
Category Vein Name Tonnes (kt) Gold Grade (g/t) Contained Gold (oz) Tonnes (kt) Silver Grade (g/t) Contained Silver (oz)
Inferred El Paraiso 395 4.01 52,000
Inferred El Rodeo 20 2.66 2,000
Inferred San Andreas 280 2.88 26,000 26 56 500,000
Inferred Subtotal 695 3.50 80,000 26 56 500,000
Mineral Resources are reported at a cut-off grade of 1.5 g/t. Cut-off grades
are based on a price of US$1200 per ounce of gold and gold recoveries of 90
percent for resources, without considering revenues from other metals. Mineral
Resources are not Ore Reserves and do not have demonstrated economic
viability. All figures are rounded to reflect the relative accuracy of the
estimate. All composites have been capped where appropriate. The Concession is
wholly owned by and exploration is operated by Condor Resources plc.
CONDOR GOLD PLC
INDEPENDENT REVIEW REPORT
FOR THE SIX MONTHS TO 30 JUNE 2017
Report on Review of Interim Financial Information to Condor Gold Plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the interim financial report for the six months ended 30 June
2017 which comprises the Interim Consolidated Statement of Comprehensive
Income, the Interim Consolidated Statement of Financial Position, the Interim
Consolidated Statement of Changes in Equity, the Interim Consolidated
Statement of Cash Flows and the related explanatory notes. We have read the
other information contained in the interim financial report and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements.
This report is made solely to the Company, as a body, in accordance with our
instructions. Our review has been undertaken so that we might state to the
Company those matters we are required to state to them in a review report and
for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company, for our work, for
this report, or for the opinions we have reached.
Directors' Responsibilities
The interim financial report is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the interim
financial report in accordance with the AIM rules.
As disclosed in note one, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting," as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the interim financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity, issued by the Auditing
Practices Board for use in the United Kingdom.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim
financial report for the 6 months ended 30 June 2017 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union.
As explained in the Basis of preparation to the Condensed financial
information, the financial reporting framework that has been applied in the
preparation of the full annual financial statements of the group is applicable
law and International Financial Reporting Standards (IFRSs) as adopted by the
European Union.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim
financial report for the six months ended 30 June 2017 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
issued by the IASB.
Crowe Clark Whitehill LLP
Statutory Auditor
St Bride's House
10 Salisbury Square
London EC4Y 8EH, UK 20 September 2017
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2017
As restated Three Three
Six months to 30.06.17unaudited£ Six months to 30.06.16unaudited£ Months to 30.06.17unaudited£ Monthsto 30.06.16unaudited£
Revenue - - - -
Administrative expenses (3,345,479) (3,298,208) (2,392,219) (2,068,790)
Operating loss (3,345,479) (3,298,208) (2,392,219) (2,068,790)
Finance income - 1,361 - -
Loss before income tax (3,345,479) (3,296,847) (2,392,219) (2,068,790)
Income tax expense - - - -
Loss for the period (3,345,479) (3,296,847) (2,392,219) (2,068,790)
Other comprehensive income/(loss):
Currency translation differences 1,521,217 2,021,250 2,053,210 2,039,250
Other comprehensive income/(loss) for the period 1,521,217 2,021,250 2,053,210 2,039,250
Total comprehensive income/(loss) for the period (1,824,262) (1,275,597) (339,009) (29,540)
Income/(loss) attributable to:
Non-controlling interest - (386) - 226
Owners of the parent (3,345,479) (3,296,461) (2,392,219) (2,069,016)
(3,345,479) (3,296,847) (2,392,219) (2,068,790)
Total comprehensive income/(loss) attributable to:
Non-controlling interest (9,755) (8,245) 11,273 (8,673)
Owners of the parent (1,814,507) (1,267,352) (350,282) (20,867)
(1,824,262) (1,275,597) (339,009) (29,540)
Loss per share expressed in pence per share:
Basic and diluted (in pence) Note 5 (5.68) (6.94) (3.90) (3.91)
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
As restated
30.06.17unaudited£ 31.12.16 £ 30.06.16unaudited£
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 304,792 234,390 314,659
Intangible assets 18,265,630 15,924,194 20,338,233
18,570,422 16,158,584 20,652,892
CURRENT ASSETS
Trade and other receivables 623,959 545,251 1,040,246
Cash and cash equivalents 3,168,265 583,610 2,272,992
3,792,224 1,128,861 3,313,238
TOTAL ASSETS 22,362,646 17,287,445 23,966,130
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 353,392 351,551 112,420
TOTAL LIABILITIES 353,392 351,551 112,420
NET CURRENT ASSETS 3,438,832 777,310 3,200,818
NET ASSETS 22,009,254 16,935,894 23,853,710
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital 12,273,077 10,582,129 10,570,463
Share premium 32,426,047 28,875,061 28,851,728
Legal reserves - - 71
Exchange difference reserve 2,163,498 632,526 3,578,710
Retained earnings (24,764,909) (23,075,118) (19,062,004)
22,097,713 17,014,598 23,938,968
TOTAL EQUITY ATTRIBUTABLE TO:
Non-controlling interest (88,459) (78,704) (85,258)
22,009,254 16,935,894 23,853,710
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2017
Share capital Share premium Legal reserve Exchange difference reserve Retained earnings Total Non controlling interest Total equity
As restated £ £ £ £ £ £ £ £
At 1 January 2016 9,161,463 27,442,728 71 1,549,601 (17,893,453) 20,260,410 (77,013) 20,183,397
Comprehensive income:
Loss for the period - - - - (3,296,461) (3,296,461) (386) (3,296,847)
Other comprehensive income:
Currency translation differences - - - 2,029,109 - 2,029,109 (7,859) 2,021,250
Total comprehensive income - - - 2,029,109 (3,296,461) (1,267,352) (8,245) (1,275,597)
New shares issued 1,409,000 1,409,000 - - - 2,818,000 - 2,818,000
Share based payment - - - - 2,127,910 2,127,910 - 2,127,910
At 30 June 2016 10,570,463 28,851,728 71 3,578,710 (19,062,004) 23,938,968 (85,258) 23,853,710
At 1 January 2017 10,582,129 28,875,061 - 632,526 (23,075,118) 17,014,598 (78,704) 16,935,894
Comprehensive income:
Loss for the period - - - - (3,345,479) (3,345,479) - (3,345,479)
Other comprehensive income:
Currency translation differences - - - 1,530,972 - 1,530,972 (9,755) 1,521,217
Total comprehensive income - - - 1,530,972 (3,345,479) (1,814,507) (9,755) (1,824,262)
New shares issued 1,690,948 3,550,986 - - - 5,241,934 - 5,241,934
Share based payment - - - - 1,655,688 1,655,688 - 1,655,688
At 30 June 2017 12,273,077 32,426,047 - 2,163,498 (24,764,909) 22,097,713 (88,459) 22,009,254
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 JUNE 2017
As restated
Six monthsto 30.06.17unaudited£ Six months to 30.06.16unaudited£
Cash flows from operating activities
Loss before tax (3,345,479) (3,296,847)
Share based payment 1,655,688 2,127,909
Depreciation charges 51,297 36,530
Impairment charge of intangible fixed assets - 18,045
Finance income - (1,361)
(1,638,494) (1,115,724)
(Increase) in trade and other receivables (78,708) (94,919)
Increase/(decrease) in trade and other payables 1,841 (447,564)
Net cash absorbed in operating activities (1,715,361) (1,658,207)
Cash flows from investing activities
Purchase of intangible fixed assets (1,606,526) (869,111)
Purchase of tangible fixed assets (109,557) (12,528)
Interest received - 1,361
Net cash absorbed in investing activities (1,716,083) (880,278)
Cash flows from financing activities
Net proceeds from share issue 5,241,934 2,818,000
Net cash absorbed in financing activities 5,241,934 2,818,000
Increase in cash and cash equivalents 1,810,490 279,515
Cash and cash equivalents at beginning of period 583,610 1,105,457
Exchange losses on cash and bank 774,165 888,020
Cash and cash equivalents at end of period 3,168,265 2,272,992
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
1. COMPLIANCE WITH ACCOUNTING STANDARDS
Basis of preparation
This condensed set of financial statements has been prepared in accordance
with IAS 34 Interim Financial Reporting as issued by the International
Accounting Standards Board (IASB) and as adopted by the EU.
The annual financial statements of the group are prepared in accordance with
International Financial Reporting Standards (IFRSs) as issued by the IASB and
as adopted by the EU. This condensed set of financial statements has been
prepared applying the accounting policies and presentation that are to be
applied in the preparation of the groups consolidated financial statements for
the year. IFRS is subject to ongoing review and endorsement by the EU or
possible amendment by interpretative guidance and the issuance of new
standards by the IASB.
The statutory accounts for the year ended 31 December 2016, which have been
filed with the Registrar of Companies. The auditors reported on those
accounts; their Audit Report was unqualified and did not contain a statement
under either Section 237(2) or Section 237(3) of the Companies Act 2006.
The Interim Report is unaudited and does not constitute statutory financial
statements as defined in section 434 of the Companies Act 2006. The Interim
Report for the six months ended 30 June 2017 was approved by the Directors on
20 September 2017.
The Directors consider the going concern basis to be appropriate based on cash
flow forecasts and projections and current levels of commitments, cash and
cash equivalents. The comparative period presented is that of the six months
ended 30 June 2016. The Company has restated the interim financial information
for the period ended 30 June 2016 in order to recognise the share based
payment charge amounting to £2,127,909 arising on issued warrants and options
which are charged to Administrative expenses. The financial statements for the
year ended 31 December 2016 remains unaffected.
The Directors are of the opinion that due to the nature of the Group's
activities and the events during that period these are the most appropriate
comparatives for the current period. The additional information for the three
months ended 30 June 2017 and comparative 30 June 2016 has been shown, as the
Company is considering a secondary listing on the TSX or TSXv. Copies of the
Interim Report are available from the Company's website
www.condorgoldplc.com.
2. ACCOUNTING POLICIES
The interim financial information for the six months ended 30 June 2017 has
been prepared on the basis of the accounting policies set out in the most
recently published financial statements for the Group for the year ended 31
December 2016, which are available on the Company's website
www.condorgoldplc.com, as the Company does not anticipate the addition of new
standards to the Group's results for the year ended 31 December 2017 which
would materially impact the results.
3. REVENUE AND SEGMENTAL REPORTING
The Group has not generated any revenue during the period. The Group's
operations are located in England, El Salvador and Nicaragua.
The following is an analysis of the carrying amount of segment assets, and
additions to plant and equipment, analysed by geographical area in which the
assets are located.
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the six month period ended 30
June 2017 are as follows:
UKSix months to 30.06.2017£ El SalvadorSix months to 30.06.2017£ NicaraguaSix months to 30.06.2017£ ConsolidationSix months to 30.06.2017£
RESULTS
Operating (loss) (2,639,337) - (706,142) (3,345,479)
Interest income - - - -
Income tax expense - - - -
The Group's results by reportable segment for the three month period ended 30
June 2017 are as follows:
UKThree months to 30.06.2017£ El SalvadorThree months to 30.06.2017£ NicaraguaThree months to 30.06.2017£ ConsolidationThree months to 30.06.2017£
RESULTS
Operating (loss) (2,472,533) - 80,314 (2,392,219)
Interest income - - - -
Income tax expense - - - -
Assets
All transactions between each reportable segment are accounted for using the
same accounting policies as the Group uses.
UK30.06.2017£ El Salvador30.06.2017£ Nicaragua30.06.2017£ Consolidation30.06.2017£
ASSETS
Total assets 3,669,927 - 18,692,719 22,362,646
UK30.06.2017£ El Salvador30.06.2017£ Nicaragua30.06.2017£ Consolidation30.06.2017£
LIABILITIES
Total liabilities (214,958) - (138,434) (353,392)
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the restated six month period
ended 30 June 2016 are as follows:
UKSix months to 30.06.2016£ El SalvadorSix months to 30.06.2016£ NicaraguaSix months to 30.06.2016£ ConsolidationSix months to 30.06.2016£
RESULTS
Operating (loss) (2,373,422) (56,703) (868,083) (3,298,208)
Interest income 1,347 14 - 1,361
Income tax expense - - - -
The Group's results by reportable segment for the restated three month period
ended 30 June 2016 are as follows:
UKThree months to 30.06.2016£ El SalvadorThree months to 30.06.2016£ NicaraguaThree months to 30.06.2016£ ConsolidationThree months to 30.06.2016£
RESULTS
Operating (loss) (1,727,924) (1,507) (339,359) (2,068,790)
Interest income - - - -
Income tax expense - - - -
Assets
All transactions between each reportable segment are accounted for using the
same accounting policies as the Group uses.
UK30.06.2016£ El Salvador30.06.2016£ Nicaragua30.06.2016£ Consolidation30.06.2016£
ASSETS
Total assets 2,300,306 4,640,969 17,024,855 23,966,130
UK30.06.2016£ El Salvador30.06.2016£ Nicaragua30.06.2016£ Consolidation30.06.2016£
LIABILITIES
Total liabilities (21,720) (905) (89,795) (112,420)
4. TAXATION
There is no current tax charge for the period. The accounts do not include a
deferred tax asset in respect of carry forward unused tax losses as the
Directors are unable to assess that there will be probable future taxable
profits available against which the unused tax losses can be utilised.
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2017
5. INTANGIBLE FIXED ASSETS
During the six months ended 30 June 2017, the Group acquired assets with a
cost of £1,606,526 (six months ended 30 June 2016: £869,111).
During the three months ended 30 June 2016, the Group acquired assets with a
cost of £1,259,736 (three months ended 30 June 2016: £372,711).
6. EQUITY-SETTLED SHARE OPTION SCHEME AND WARRANTS
The estimated fair value of the options and warrants granted was;
As restated Three Three
Six months to 30.06.17unaudited£ Six months to 30.06.16unaudited£ Months to 30.06.17unaudited£ Monthsto 30.06.16unaudited£
Warrants and options charge 1,655,697 2,127,909 633,160 1,385,865
The fair value has been fully recognised within administration expenses, on a
pro-rata basis over the vesting period. This fair value has been calculated
using the Black-Scholes option pricing model. The latest inputs into the model
were as follows:
2017 2016
Share price 63p 63p
Exercise price 93p 80p
Expected volatility 39.9% 149.5%
Expected life (yrs.) 2 5
Risk free rate 0.23% 0.23%
Expected dividend yield - -
7. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
A reconciliation is set out below:
Six months to 30.06.17 Six months to 30.06.16
Basic EPS
Loss for the period (3,345,479) (3,296,847)
Weighted average number of shares 58,933,197 47,493,565
Loss per share (in pence) (5.68) (6.94)
CONDOR GOLD PLC NOTES TO THE CONDENSED FINANCIAL STATEMENTSFOR THE SIX MONTHS TO 30 JUNE 2017
Three months to 30.06.17 Three months to 30.06.16
Basic EPS
Loss for the period (2,392,219) (2,068,790)
Weighted average number of shares 58,933,197 47,493,565
Loss per share (in pence) (3.90) (3.91)
In accordance with IAS 33, as the Group has reported a loss for the period, diluted earnings per share are not included.
8. CALLED-UP SHARE CAPITAL
30.06.17£ 30.06.16£
Allotted and fully paid
Ordinary shares 61,365,380 of 20p each (30.06.16: 52,852,316 of 20p each) 12,273,077 10,570,463
On 20 February 2017, 8,454,733 ordinary shares were issued at a price of 62p
per share.
9. RELATED PARTY TRANSACTIONS
During the half year the Company received consultancy advice from the following related parties:
Company Related party Sixmonths to 30.06.2017£ Sixmonths to 30.06.2016£ Three months to 30.06.2017£ Three months to 30.06.2016£
Axial Associates Limited Mark Child 25,000 21,665 12,500 11,667
Burnbrae Limited Jim Mellon 12,500 8,167 6,250 5,166
Peter Flindell 12,500 18,238 6,250 15,238
No amounts were outstanding at the period end date (30 June 2016: £NIL).
10. SEASONALITY OF THE GROUP'S BUSINESS OPERATIONS
There are no seasonal factors which affect the trade of any company in the Group.
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