REG - Condor Gold PLC - Results for the three months ended 31 March 2022
13/05/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220513:nRSM3662La&default-theme=true
RNS Number : 3662L Condor Gold PLC 13 May 2022
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming, Surrey
GU7 1JX
Tel: +44 (0) 207 493 2784
13 May 2022
Condor Gold Plc
("Condor Gold","Condor" or the "Company")
Condor Gold plc announces its unaudited results for the three months ended 31
March 2022
Condor Gold (AIM: CNR; TSX: COG) announces that it has today published its
unaudited financial results for the three months ending 31 March 2022 and the
Management's Discussion and Analysis for the same period.
Both of the above have been posted on the Company's website www.condorgold.com
and are also available on SEDAR at www.sedar.com.
Highlights for the First Quarter of 2022:
· On March 10, 2022, the Company announced that all assay results have
been received for an 8,004 m infill drilling programme on the fully permitted
high-grade La Mestiza Open Pit Mineral Resource at La India Project.
· Advanced the technical studies needed for the completion of a
Definitive Feasibility Study covering the La India open pit, the processing
plant facility and location, tailings storage facility, waste dump locations,
explosive magazine, power supply, surface hydrology, hydrogeology (dewatering
the pit), geochemistry, metallurgy, environmental and social.
· Continued with acquisitions of land 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.
· Project finance discussions are underway with potential providers of
project finance who have access to Condor's data room under confidentiality
agreements.
· Further advanced compliance with the terms of the La India
Environmental Permit to construct and operate the mine, including completion
of additional technical and engineering studies.
Mark Child, Chairman and CEO Commented:
"During the first quarter, we continued to make significant progress on
advancing the Feasibility Study for the La India open pit and associated mine
site infrastructure . All technical studies undertaken at the Project level
are complete. We are currently reviewing the metallurgical test work,
geotechnical analysis and capital cost estimates. Additionally, we received
the results from the 8,004 m infill drill program at the fully permitted
high-grade Mestiza open pit. Although not included in the scope of our
forthcoming Feasibility Study, we expect Mestiza to provide an additional
high-grade ore source for the La India mill.
Concurrently, we are finalizing our analysis of an updated Mineral Resource
Estimate for La India Project, which is inclusive of a Mineral Reserve
Estimate for the La India open pit. The geological model is consistent with
our current best understanding. Lithologies, weathering and structures have
been re-modelled from scratch with existing drilling, trenching and outcrops
considered.
In summary, the La India open pit including the associated mine site
infrastructure is essentially construction ready and materially de-risked. The
plan is to add the two fully permitted high grade feeder pits of Mestiza and
America to the mine plan during the construction phase. The Feasibility Study
on La India open pit is almost complete, the formal announcement will probably
take us into Q3. It will put the Company in a position to pursue various
project financing alternatives, some of which have already been initiated."
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS TO 31 MARCH 2022
Three months to 31 March Three months to 31 March
2022 unaudited 2021 unaudited
£ £
Revenue - -
Administrative expenses (668,134) (512,518)
Operating gain/(loss) Note 3 (668,134) (512,518)
Finance income 255 -
Loss before income tax (667,879) (512,518)
Income tax expense Note 4 - -
Gain/(loss) for the period (667,789) (512,518)
Other comprehensive income/(loss):
Write off of Minority Interest -
Currency translation differences 664,824 (422,392)
Other comprehensive income/(loss) for the period
664,824 (422,392)
Total comprehensive income/(loss) for the period
(3,055) (934,910)
Gain/(loss) per share expressed in pence per share:
Basic and diluted (in pence) Note 7 (0.46) (0.41)
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
As at 31 March 2022 As at 31 December 2021 As at 31 March 2021
unaudited audited unaudited
£ £ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 7,579,866 7,473,433 4,081,961
Intangible assets 29,634,986 28,100,980 22,623,998
37,214,852 35,574,413 26,705,959
CURRENT ASSETS
Trade and other receivables 875,390 775,693 282,202
Cash and cash equivalents 408,028 2,072,046 6,278,947
1,283,418 2,847,739 4,723,800
TOTAL ASSETS 38,498,270 38,422,152 33,267,108
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 99,190 248,176 192,525
TOTAL LIABILITIES 99,190 248,176 192,525
NET CURRENT ASSETS 1,184,228 2,599,563 6,368,624
38,399,080 38,173,976 33,074,583
NET ASSETS
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share 29,386,143 29,326,143 26,964,836
capital
Note 8
Share premium 42,534,627 42,528,627 38,700,439
Legal reserves - - -
Exchange difference reserve (1,817,214) (2,482,038) (2,784,493)
Retained earnings (31,704,476) (31,198,756) (29,806,199)
TOTAL EQUITY 38,399,080 38,173,976 33,074,583
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 31 MARCH 2022
Share capital Share premium Exchange difference reserve Retained earnings Total 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:
Gain for the period - - - (512,518) (512,518) (512,518)
Other comprehensive income:
Currency translation differences - - (422,392) - (422,392) (422,392)
Total comprehensive income - - (422,392) (512,518) (934,910) (934,910)
New shares issued 3,232,310 1,524,813 - - 4,757,123 4,757,123
Issue costs - - - - - -
Share based payment - - - 88,271 88,271 88,271
At 31 March 2021 26,964,836 38,700,439 (2,784,493) (29,806,199) 33,074,0583 33,074,583
At 1 January 2022 29,326,143 42,528,627 (2,482,038) 31,198,756 38,173,976 38,173,976
Comprehensive income:
Loss for the period - - - (667,879) (667,879) (667,879)
Other comprehensive income:
Currency translation differences - - 664,824 - 664,824 664,824
Total comprehensive income - - 664,824 (667,879) (3,055) (3,055)
New shares issued 60,000 6,000 - - 66,000 66,000
Issue costs - - - - - -
Share based payment - - - 162,159
At 31 March 2022 29,386,143 42,534,627 (1,817,214) (31,704,476) 38,399,080 38,399,080
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 31 MARCH 2022
Three months Three months
to 31.03.22 to 31.03.21
unaudited unaudited
£ £
Cash flows from operating activities
Gain/(loss) before tax (667,879) (512,518)
Share based payment 162,159 88,271
Depreciation charges - -
Exchange differences 75,920 23,259
Finance income (255) -
(430,055) (400,988)
(Increase) in trade and other receivables (99,697) (167,793)
Increase/(decrease) in trade and other payables (148,986) (73,887)
Net cash absorbed in operating activities (678,738) (642,668)
Cash flows from investing activities
Purchase of intangible fixed assets (1,006,948) (1,061,879)
Purchase of tangible fixed assets (61,787) (933,020)
Interest received 255 -
Net cash absorbed in investing activities (1,068,480) (1,944,899)
Cash flows from financing activities
Net proceeds from share issue 66,000 4,757,123
Net cash generated in financing activities 66,000 4,757,123
Increase / (decrease) in cash and cash equivalents (1,739,939) 2,119,556
Cash and cash equivalents at beginning of period 2,072,046 4,159,391
Exchange losses on cash and bank - -
Cash and cash equivalents at end of period 408,028 6,278,947
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS TO 31 MARCH 2022
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). It has been prepared in accordance with
International Financial Reporting Standards (IFRS and IFRIC interpretations)
("IFRS") in force at the reporting date, and their interpretations issued by
the IASB as adopted for use within the European Union, and with IFRS and their
interpretations as issued by the IASB.
The interim results for the three months to 31 March 2022 are neither audited
nor reviewed by our auditors and the accounts in this interim report do not
therefore constitute statutory accounts in accordance with Section 434 of the
Companies Act 2006.
Statutory accounts for the year ended 31 December 2021 have been prepared and
for which the auditor's report was unqualified, did not contain any statement
under Section 498(2) or 498(3) of the Companies Act 2006 and did not contain
any matters to which the auditors drew attention without qualifying their
report.
The interim financial information for the three months ended 31 March 2022
were approved by the Board on 12 May 2022.
The directors do not propose an interim dividend.
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 three
months ended 31 March 2021.
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. Copies of these financial statements are
available on the Company's website and on www.Sedar.com.
2. ACCOUNTING POLICIES
The accounting policies used in preparing the interim results are the same as
those applied to the latest audited annual financial statements, which are
available on www.Sedar.com (http://www.Sedar.com) and on the Company's website
www.condorgold.com (http://www.condorgold.com) . These accounting policies are
those expected to be applied in the financial statements for the year ended 31
December 2022.
3. REVENUE AND SEGMENTAL REPORTING
The Group has not generated any revenue during the period. The Group's
operations are located in England 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 THREE MONTHS TO 31 MARCH 2022
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the three month period ended 31
March 2021 are as follows:
UK Nicaragua Consolidation
Three months to 31 March 2021 Three months to 31 March 2021 Three months to 31 March 2021
£ £ £
RESULTS
Operating (loss) (446,674) (65,844) (512,518)
Interest income - - -
Assets and liabilities
All transactions between each reportable segment are accounted for using the
same accounting policies as the Group uses.
UK Nicaragua Consolidation
As at 31 March 2021 As at 31 March 2021 As at 31 March 2021
£ £ £
ASSETS
Total assets 7,885,554 25,588,654 33,474,208
UK Nicaragua Consolidation
As at 31 As at 31 March 2021 As at 31 March 2021
March 2021 £ £
£
LIABILITIES
Total liabilities (132,077) (60,448) (192,525)
The Group's results by reportable segment for the three month period ended 31
March 2021 are as follows:
UK Nicaragua Consolidation
Three months to 31 March 2022 Three months to 31 March 2022 Three months to 31 March 2022
£ £ £
RESULTS
Operating gain/(loss) (642,496) (25,638) (668,134)
Interest 255 - 255
Assets and liabilities
All transactions between each reportable segment are accounted for using the
same accounting policies as the Group uses.
UK Nicaragua Consolidation
As at 31 March 2022 As at 31 March 2022 As at 31 March 2022
£ £ £
ASSETS
Total assets 5,523,889 33,598,210 39,122,099
UK Nicaragua Consolidation
As at 31 As at 31 March 2022 As at 31 March 2022
March 2022 £ £
£
LIABILITIES
Total liabilities (138,495) 39,305 (99,190)
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.
5. INTANGIBLE FIXED ASSETS
During the three months ended 31 March 2022, the Group acquired intangible
assets with a cost of £1,006,948 (three months ended 31 March 2021: £
1,061,879).
6. EQUITY-SETTLED SHARE OPTION SCHEME AND WARRANTS
The estimated fair value of the options and warrants granted was;
Three months to Three months to
31 March 2022 31 March 2021
unaudited unaudited
£ £
Warrants and options charge (162,159) (88,271)
During the period, no share options were crystallised into cash.
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:
2022 2021
Expected volatility --% 29%
Expected life options (yrs.) 5 5
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:
7. EARNINGS PER SHARE (continued)
Three months to Three months to
31 March 2022 31 March 2021
Basic EPS
Gain/(loss) for the period (667,879) (512,518)
Weighted average number of shares 146,752,359 124,488,017
Gain/(loss) per share (in pence) (0,46) (0.41)
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
As at 31 March 2022 As at 31 March 2021
£ £
Allotted and fully paid
Ordinary shares: 146,930,715 of 20p each (as at 31 March 2021: 134,824,179 of 29,386,143 26,964,836
20p each)
Share issuances in the three months ended 31 March 2022 were as follows:
Nature of issuance Issuue price per Ordinary share Date of share issuance Number of shares issued Total Cumulative number of ordinary shares issued
Opening 1 January 2022 118,662,629
Warrant exercise 22 pence 13 January 2022 300,000 146,930,715
9. RELATED PARTY TRANSACTIONS
During the reporting period the Company received consultancy advice from the
following related parties:
Company Related party Three months to Three months to
31 March 2022 31 March 2021
£ £
Axial Associates Limited Mark Child - -
Burnbrae Limited Jim Mellon 6,250 6,250
Promaco Limited Ian Stalker 11,700 7,575
AMC Geological Advisory Group Inc. Andrew Cheatle - -
10. SEASONALITY OF THE GROUP'S BUSINESS OPERATIONS
There are no seasonal factors which affect the trade of any company in the
Group.
- Ends -
For further information please visit www.condorgold.com or contact:
Condor Gold plc Mark Child, Chairman and CEO
+44 (0) 20 7493 2784
Beaumont Cornish Limited Roland Cornish and James Biddle
+44 (0) 20 7628 3396
SP Angel Corporate Finance LLP
H&P Advisory Limited Ewan Leggat
+44 (0) 20 3470 0470
Andrew Chubb and Nelish Patel
+44 (0) 20 7907 8500
BlytheRay Tim Blythe and Megan Ray
+44 (0) 20 7138 3204
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 (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 news release of a scientific or technical
nature has been summarised or extracted from the technical report entitled
"Technical Report on the La India Gold Project, Nicaragua, October 2021",
dated October 22, 2021 with an effective date of September 9, 2021 (the
"Technical Report"), prepared in accordance with NI 43-101. The Qualified
Persons responsible for the Technical Report are Dr Tim Lucks of SRK
Consulting (UK) Limited, and Mr Fernando Rodrigues, Mr Stephen Taylor and Mr
Ben Parsons of SRK Consulting (U.S.) Inc. Mr Parsons assumes responsibility
for the MRE, Mr Rodrigues the open pit mining aspects, Mr Taylor the
underground mining aspects and Dr Lucks for the oversight of the remaining
technical disciplines and compilation of the report.
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 forward-looking 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 the fiscal year ended December 31, 2020 dated
March 31, 2021, 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRFFFFSLEAIFLIFRecent news on Condor Gold
See all newsREG - Condor Gold PLC - Total Voting Rights
AnnouncementREG - AIM - AIM Notice - 15/12/2023
AnnouncementREG - Condor Gold PLC - Increase Fund Raise: £1,851,999 Issue of Equity
AnnouncementREG - Condor Gold PLC - Condor Gold Provides Update on the Sale of Assets
AnnouncementREG - Condor Gold PLC - Exercise of Options
Announcement