REG - Condor Gold PLC - Unaudited Interim Results
16/08/2022 07:00
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RNS Number : 0952W Condor Gold PLC 16 August 2022
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming, Surrey
GU7 1JX
Tel: +44 (0) 207 493 2784
16 August 2022
Condor Gold Plc
("Condor Gold","Condor" or the "Company")
Condor Gold plc announces its unaudited results for the six months ended 30
June 2022
Condor Gold (AIM: CNR; TSX: COG) announces that it has today published its
unaudited financial results for the six months ending 30 June 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 under the Company's SEDAR profile at www.sedar.com.
Highlights for the three and six months to 30 June 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.
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.
· A significant new drill intercept within the La India Open Pit of
34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill depth
including 6.0 m at 4.3 g/t gold, 2.0 m at 5.3 g/t gold and 3.65m at 8.75g/t
gold (drill hole LIGT536). 28.7 m true width at 2.62 g/t gold in the
hanging-wall of historic mine workings (drill hole LIGT528) (collectively, the
"New Drill Intercepts").
· Completed the technical studies needed for 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.
· Completion in June of a private placement of 11,607,149 units of the
Company at a price of 28p per unit, including a Directors' subscription of
1,833,573 units to raise in aggregate gross proceeds of £3,250,000 before
expenses. Each unit was comprised of one new ordinary share with a nominal or
par value of 20p per share and one-half of one ordinary share purchase
warrant. Each whole warrant, which is unlisted and fully transferable,
entitles the holder thereof to purchase one ordinary share at a price of 35p
for a period of 36 months. The Placing was arranged directly by the Company
with institutional and other investors and its broker SP Angel.
Mark Child, Chairman and Chief Executive of Condor Gold, commented:
"Condor made significant advances during the 6 month period de-risking the
fully permitted La India Project to a near construction ready status and
completing all technical studies for a Feasibility Study on La India open pit.
99.6% of the land for the key areas has been purchased and 14 hectares of land
have been cleared in the location of the processing plant facility. 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. The Company is on track with its strategic objective
of constructing and operating a processing plant producing circa 100,000 oz
gold per annum, then materially expanding the production capacity while
demonstrating a potential 5M oz Gold District".
Chairman's Statement For The Three And Six Months to 30 June 2022
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 (http://www.ca.condorgold.com) ca.condorgold.com
(https://ca.condorgold.com/) ) unaudited interim financial report for the
three and six months ended 30 June 2022.
The focus during the 6 month period has been the finalisation of the technical
studies at La India Project required for a Feasibility Level Study ("FS Study"
or "Feasibility Study) on the La India open pit utilising the new SAG Mill
package acquired by Condor in February 2021. La India Project has been
materially de-risked and is nearing a construction ready status. A FS Study
increases the confidence of the Project, incorporating a Feasibility Level
engineering design, and +/- 15% capital and operating costs. This in turn will
facilitate Project financing ahead of Project construction. Condor staff and
our contractors at Hanlon Engineering, Tierra Group International and SRK
Consulting (UK and USA) have been diligently pursuing the supporting work for
the study for over 18 months and have made substantial headway in completion
of that work, such that all technical studies are complete save the final
analysis. There has been a slight delay in the delivery of the FS Study due to
the requirement to undertake additional metallurgical testwork and finalise
the designs on the processing plant.
On 4(th) August 2022, the Company announced the confirmatory metallurgical
testwork demonstrated that gold recovery is independent of grade and a fixed
gold recovery of 91% assuming a 75 micron grind size will be used in the
project economics of the forthcoming Feasibility Study. Gold extraction from
the 11 variability composites averaged 92.6% at the 75 micron grind size,
which is reduced by 2% to allow for gold being locked up in the processing
plant, which is sometimes referred to as inherent plant inefficiencies. Gold
extraction from the four low grade composites averaged 93.8% at the 75 micron
target grind, indicating a gold recovery of 91.8% after a 2% reduction to
allow for gold being locked up in the processing plant. 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%. The selection of the composites
by both grade and approximate year of production provides confirmation that
the mill recovery will not be materially affected over the life of the La
India Mine.
During the first half of 2022, the Company has been focused on de-risking La
India Project by advancing and completing several technical and engineering
studies for the FS Study, some of which are a condition of the Environmental
Permit. The current status of the FS Study is:
· A new geological model to FS level has been completed. It
includes a lithological, weathering and structure model. It incorporates
approximately 3,500 m of infill drilling completed in 2021.
· The Tailings Storage Facility ("TSF") and 2 water retention ponds
have been fully designed and engineered with drawings one step short of
"issued for construction", which is beyond a FS level detail of design. Tierra
Group Inc, Denver, Colorado has completed site visits and is conducting the
engineering studies. 23 geotechnical drill holes and 55 geotechnical test
pits have been completed.
· The stormwater attenuation structure at La Simona has been
designed to FS level.
· Completion of the design of the site wide water balance ("SWWB"),
including a surface water management plan by SRK Consulting (UK) Limited
("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 in to, 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 received and
designed by SRK. This involved oriented core drilling, followed by televiewer
logging. SRK's geotechnical report is currently subject to a third party
review.
· 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. 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.
The Company's twin strategy remains the construction and operation of a base
case processing plant with capacity of up to 2,800 tonnes per day ("tpd")
capable of producing approximately 100,000 oz of gold per annum using the
complete new SAG Mill package already purchased, to materially increasing this
production capacity, and proving a major Gold District of 5 M oz gold
potential at the 588km² La India Project, in Nicaragua.
The Company continues to enhance its social engagement and activities in the
community, thereby maintaining our social licence to operate. Condor has
strengthened its community team and stepped up social activities and
engagement. The main focus locally is the drinking water programme,
implemented in April 2017. A total of 340 families are currently benefiting;
they receive five-gallon water dispensers each week. The Company installed a
water purification plant manufactured in Israel at a cost of approximately
US$200,000 to double the drinking water supply capacity to the local
communities. It was operational in May 2021.
As of the date of this document, the ability of the Company to operate has not
been materially affected by the on-going Covid-19 pandemic. The situation is
kept under close review by management and the Board; certain measures have and
will be taken as appropriate to ensure the health and safety of employees and
contractors in this regard and to reduce the potential spread of the virus
within the local community.
In June 2022 the Company announced it had raised £3.25 million by way of a
private placement of new ordinary shares. (See RNSfor details).
Turning to the financial results for the six months to end-June 2022, the
Group's total comprehensive profit/(loss) for the period was £1,898,315 (six
months to end-June 2021: £(1,638,488). The Company raised a total of £3.25
million through share issuances. The net cash balance of the Group at end-June
2022 was £2,453,607
To conclude, Condor made significant advances during the 6 month period
de-risking the fully permitted La India Project to a near construction ready
status and completing all technical studies for a Feasibility Study. 99.6% of
the land for the key areas has been purchased and 14 hectares of land have
been cleared in the location of the processing plant facility. 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. The Company is on track with its strategic objective of constructing
and operating a processing plant producing circa 100,000 oz gold per annum,
then materially expanding the production capacity while demonstrating a 5M oz
Gold District.
Mark Child
Chairman and CEO
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS TO 30 JUNE 2022
Three Three
Six months Six months months months
to 30.06.22 to 30.06.21 to 30.06.22 to 30.06.21
unaudited unaudited unaudited unaudited
£ £ £ £
Revenue - - - -
Share based payments (288,906) (199,591) (126,747) (111,320)
Administrative expenses (1,085,069) (814,269) (579,094) (390,022)
Operating loss (1,373,975) (1,013,860) (705,841) (501,342)
Finance income 1,585 - 1,330 -
Loss before income tax (1,372,390) (1,013,860) (704,511) (501,342)
Income tax expense - - - -
Loss for the period (1,372,390) (1,013,860) (704,511) (501,342)
Other comprehensive income/(loss):
Currency translation differences 3,270,705 (624,628) 2,605,881 (202,236)
Other comprehensive income/(loss) for the period 3,270,705 (624,628) 2,605,881 (202,236)
Total comprehensive income/(loss) for the period 1,898,315 (1,638,488) 1,901,370 (703,578)
Earnings per share expressed in pence per share:
Basic and diluted (in pence) Note 7 (0.92) (0.78) (0.48) (0.37)
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
30.06.22 31.12.21 30.06.21
unaudited audited unaudited
£ £ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and 7,818,025 7,473,433 7,495,031
equipment
Intangible assets 32,752,758 28,100,980 24,096,294
40,570,783 35,574,413 31,591,325
CURRENT ASSETS
Trade and other receivables 862,775 775,693 196,347
Cash and cash equivalents 2,453,607 2,072,046 3,005,389
3,316,382 2,847,739 3,201,736
TOTAL ASSETS 43,887,165 38,422,152 34,793,061
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 221,966 248,176 134,519
TOTAL LIABILITIES 221,966 248,176 134,519
NET CURRENT ASSETS 3,094,416 2,599,563 3,067,217
43,665,199 38,173,976 34,658,542
NET ASSETS
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital 31,707,573 29,326,143 26,983,286
Share premium 43,451,199 42,528,627 40,858,206
Exchange difference reserve 788,667 (2,482,038) (2,986,729)
Retained earnings (32,282,240) (31,198,756) (30,196,221)
43,665,199 38,173,976 38,658,542
TOTAL EQUITY
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2022
Share capital Share premium Exchange difference reserve Retained earnings Total equity
£ £ £ £ £
At 1 January 2021 23,732,526 37,175,626 (2,362,101) (29,381,952) 29,164,099
Loss for the period - - - (1,013,860) (1,013,860)
Other comprehensive income: - - - - -
Currency translation differences - - (624,628) - (624,628)
Total comprehensive income - - (624,628) (1,013,860) (1,638,488)
New shares issued 3,250,760 3,682,580 - - 6,933,340
Issue costs - - - - -
Share based payment - - - 199,591 199,591
Total contributions by & distributions to owners of the parent, recognised
directly in equity
3,250,760 3,682,580 - 199,591 7,132,931
At 30 June 2021 26,983,286 40,858,206 (2,986,729) (30,196,221) 34,658,542
At 1 January 2022 29,326,143 42,528,627 (2,482,038) (31,199,756) 38,173,976
Loss for the period - - - (1,372,390) (1,372,390)
Other comprehensive income: - - - - -
Currency translation differences - - 3,270,705 - 3,270,705
Total comprehensive income - - 3,270,705 (1,372,390) 1,898,315
New shares issued 2,381,430 922,572 - - 3,304,002
Issue costs - - - - -
Share based payment - - - 288,906 288,906
Total contributions by & distributions to owners of the parent, recognised
directly in equity
2,381,430 922,572 - 288,906 3,592,908
At 30 June 2022 31,707,573 43,451,199 788,607 (32,282,240) 43,665,199
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2022
Six months Six months
to 30.06.22 to 30.06.21
unaudited unaudited
£ £
Loss before tax (1,372,390) (1,013,860)
Share based payment 288,906 199,591
Depreciation charges 34,301 -
Finance income (1,585) -
(1,050,768) (814,269)
Increase in trade and other receivables (87,082) (81,938)
(Decrease)/increase in trade and other payables (26,210) (131,893)
Net cash used in operating activities (1,164,060) (1,028,100)
Cash flows from investing activities
Purchase of intangible fixed assets (1,805,216) (2,662,661)
Purchase of tangible fixed assets (62,363) (4,494,661)
Interest received 1,585 -
Net cash used in investing activities (1,865,994) (7,157,586)
Cash flows from financing activities
Net proceeds from share issue 3,304,002 6,933,340
Net cash generated from financing activities 3,304,002 6,933,340
Increase/(decrease) in cash and cash equivalents 273,948 (1,252,346)
Cash and cash equivalents at beginning of period 2,072,046 4,159,391
Exchange gains on cash and bank 107,613 98,344
Cash and cash equivalents at end of period 2,453,607 3,005,389
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS TO 30 JUNE 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 adopted by the European Union and
also as issued by the International Accounting Standards Board ("IASB"). It
has been prepared using accounting policies consistent with International
Financial Reporting Standards ("IFRS") and should be read in conjunction with
the annual financial statements for the year ended 31 December 2021 which have
been prepared in accordance with IFRS as adopted by the EU and as issued by
the IASB.
The interim results for the three and six months to 30 June 2022 are unaudited
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 filed with
the Registrar of Companies and the auditor's report was unqualified and did
not contain any statement under Section 498(2) or 498(3) of the Companies Act
2006. The statutory accounts contained a material uncertainty in respect of
going concern which referred to the Group's need to raise further funding in
order to progress exploration activity. There were no other matters drawn to
the attention of the users of the financial statements in the auditor's
report.
The interim financial information for the three and six months ended 30 June
2022 was approved by the Board on 15 August 2021.
The directors do not propose an interim dividend.
While it is noted that the Company will require further finance within 12
months of the date of release of these financial statements, 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, together with the ability of the Company to raise finance in May
2022. The comparative period presented is that of the six months ended 30
June 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 interim financial information for the three and six months ended 30 June
2022 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 2021, which are available on the Company's website
www.condorgold.com (http://www.condorgold.com) and on SEDAR at www.sedar.com
(http://www.sedar.com) , as the Company does not anticipate the addition of
new standards to the Group's results for the year ended 31 December 2021 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 the United Kingdom 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 AND SIX MONTHS TO 30 JUNE 2022
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the six-month period ended 30
June 2022 are as follows:
UK Nicaragua Consolidation
Six months to 30.06.2022 Six months to 30.06.2022 Six months to 30.06.2022
£ £ £
RESULTS
Operating loss (1,288,746) (85,229) (1,373,975)
Finance income 1,585 - 1,585
Income tax - - -
Loss for period (1,287,161) (85,229) (1,372,390)
The Group's results by reportable segment for the three-month period ended 30
June 2022 are as follows:
UK Nicaragua Consolidation
Three months to 30.06.2022 Three months to 30.06.2022 Three months to 30.06.2022
£ £ £
RESULTS
Operating loss (646,250) (59,591) (705,841)
Interest income 1,330 - 1,330
Income tax - - -
Loss for period (644,920) (59,591) (704,511)
Assets
All transactions between each reportable segment are accounted for using the
same accounting policies as the Group uses.
UK Nicaragua Consolidation
30.06.2022 30.06.2022 30.06.2022
£ £ £
ASSETS
Total assets 7,531,696 37,025,917 44,557,613
UK Nicaragua Consolidation
30.06.2022 30.06.2022 30.06.2022
£ £ £
LIABILITIES
Total liabilities (343,663) 121,697 (221,966)
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS TO 30 JUNE 2022
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the six-month period ended 30
June 2021 are as follows:
UK Nicaragua Consolidation
Six months to 30.06.2021 Six months to 30.06.2021 Six months to 30.06.2021
£ £ £
RESULTS
Operating loss (907,876) (105,984) (1,013,860)
Finance income - - -
Income tax - - -
Loss for period (907,876) (105,984) (1,013,860)
The Group's results by reportable segment for the three-month period ended 30
June 2021 are as follows:
UK Nicaragua Consolidation
Three months to 30.06.2021 Three months to 30.06.2021 Three months to 30.06.2021
£ £ £
RESULTS
Operating loss (461,202) (40,140) (501,342)
Interest income - - -
Income tax - - -
Loss for period (461,202) (40,140) (510,342)
Assets and liabilities
All transactions between each reportable segment are accounted for using the
same accounting policies as the Group uses.
UK Nicaragua Consolidation
30.06.2021 30.06.2021 30.06.2021
£ £ £
ASSETS
Total assets 7,969,350 26,689,192 34,658,542
UK Nicaragua Consolidation
30.06.2021 30.06.2021 30.06.2021
£ £ £
LIABILITIES
Total liabilities (94,896) (233,404) (328,300)
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS TO 30 JUNE 2022
4. TAXATION
There is no current tax charge/(credit) for the period. The condensed
financial statements do not include a deferred tax asset in respect of 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 six months ended 30 June 2022, the Group acquired assets with a
cost of £1,805,216 (six months ended 30 June 2021: £2,662,661).
During the three months ended 30 June 2022, the Group acquired assets with a
cost of £798,268 (three months ended 30 June 2021: £1,729,641).
6. EQUITY-SETTLED SHARE OPTION SCHEME AND WARRANTS
The estimated fair value of the options and warrants granted and charged to
profit or loss in the period was;
Three Three
Six months Six months Months Months
to 30.06.2022 to 30.06.2021 to 30.06.2022 to 30.06.2021
unaudited unaudited unaudited unaudited
£ £ £ £
Share options charge 288,906 199,591 126,747 111,320
The fair value of options has been recognised within profit or loss, 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
Share price 25.5 48p
Exercise price 33p 48p
Expected volatility 35.6% 35.6%
Expected life (yrs.) 5 5
Risk free rate 0.5% 0.5%
Expected dividend yield - -
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS TO 30 JUNE 2022
7. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
A reconciliation is set out below:
Six months Six months
to 30.06.22 to 30.06.21
Basic EPS
Loss for the period (1,372,390) (1,013,860)
Weighted average number of shares 147,667,937 129,714,411
Earnings per share (in pence) (0.92) (0.78)
Three months Three months
to 30.06.22 to 30.06.21
Basic EPS
Loss for the period (704,511) (501,342)
Weighted average number of shares 147,757,526 134,825,204
Earnings per share (in pence) (0.48) (0.37)
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
30.06.22 30.06.21
£ £
Allotted and fully paid
158,916,429 Ordinary shares of 20p each (30 June 2021: 134,916,429 ordinary 31,707,573 26,983,286
shares of 20p each)
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS TO 30 JUNE 2022
Share issuances in the six months ended 30 June 2021 were as follows:
Nature of issuance Issue price per Ordinary share Date of share issuance Number of shares issued Total Cumulative number of ordinary shares issued
Opening 1 January 2022 146,630,715
Option exercise 20 pence 13 January 2022 300,000 146,930,715
Private placement 28 pence 17 June 2022 11,607,149 158,537,864
On 1 January 2022, 300,000 ordinary shares were issued at a price of 20 pence
per share, further to exercise of employee share options. On 17 June 2022,
11,607,149 ordinary shares were issued at a price of 28 pence further to a
private placement. On 18 July 2022, 91,666 ordinary shares were issued at a
price of 25 pence per share further to an exercise of warrants.
9. RELATED PARTY TRANSACTIONS
During the half year the Company received consultancy advice from the
following related parties:
Company Related party Six Six Three months to 30.06.2022 Three months to 30.06.2021
months to 30.06.2022 months to 30.06.2021 £ £
£ £
Axial Associates Limited Mark Child - - - -
Burnbrae Limited Jim Mellon 12,500 12,500 6,250 6,250
Promaco Limited Ian Stalker 20,400 23,156 8,700 25,500
AMC Geological Advisory Andrew Cheatle 4,167 - 4,167 -
10. SEASONALITY OF THE GROUPS 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.
Reference is made to the Company's press release dated 23 May 2022, which
contains the required National Instrument - 43-101 - Standards of Disclosure
for Mineral Projects disclosure with respect to the New Drill Intercepts.
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:
Development 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.
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