REG - Condor Gold PLC - Unaudited results ended 30 September, 2021
15/11/2021 07:05
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RNS Number : 3003S Condor Gold PLC 15 November 2021
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
Tel: +44 (0) 207 493 2784
15 November 2021
Condor Gold Plc
("Condor" or the "Company")
Condor Gold plc announces its unaudited results for the three and nine months
ended 30 September, 2021
Condor Gold (AIM: CNR; TSX: COG) announces that it has today published its
unaudited financial results for the three and nine months ending 30 September,
2021 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
(http://www.condorgold.com) and are also available on SEDAR at www.sedar.com
(http://www.sedar.com) .
Highlights for the third quarter of 2021
· Completion of 3,370 m of diamond core infill drilling and replacement
of RC drilling within and around the La India Starter Pits, which are within
the fully permitted La India Open Pit.
· Infill drilling was to 25 m by 25 m drill spacing. Highlight drill
assay results:
o 22.05 m (21.6 m true width) at 6.48 g/t gold from 24.75 m drill depth
including 15.35 m (15.0 m true width) at 8.68 g/t gold from 24.75 m drilled
depth (drill hole LIDC413).
o 60.60 m (54.5 m true width) at 1.98 g/t gold from 4.15 m drill depth,
including 5.75 m (5.2 m true width) at 16.88 g/t gold from 42.55 m drill depth
in drill hole LIDC452 located between the two proposed starter pits.
o 16.00 m (15.7 m true width) at 5.30 g/t gold from 18.35 m drill depth,
including 5.90 m (5.8 m true width) at 12.35 g/t gold from 22.10 m drilled
depth (drill hole LIDC416)
· Completed of 3,500 m exploration drilling and received all assay
results at the Cacao Prospect. Highlights of the drilling are:
o Cacao epithermal gold system is interpreted as being fully preserved, open
along strike and to depth. The latest drilling is clipping the top of the
system.
o 10 metre plus true width mineralised zone including the Cacao vein has
been confirmed for a strike length of approximately 1,000 m beneath and along
strike of the existing Cacao mineral resource
o 25.93 m (14.9 m true width) at 3.94 g/t Au from 263.82 m, including 4.58 m
(2.6 m true width) at 7.76 g/t Au from 282.12m drill depth (drill hole
CCDC033) below the Cacao mineral resource and open to depth and along strike
in both directions.
· The first phase of infill drilling of 39 drill holes for 3,371.58
metres using diamond core drilling was completed on the Mestiza Open Pit and
all assay results received. Highlights are:
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
· On September 9, 2021 the Company provided the key findings of a
technical report on its 100% owned La India Gold Project (the "Project")
prepared by SRK Consulting (UK) Limited ("SRK"). This technical report
presents the results of a strategic mining study to Preliminary Economic
Assessment ("PEA") standards completed on the Project in 2021. The Highlight
of the PEA:
o Internal Rate of Return ("IRR") of 54% and a post-tax Net Present Value
("NPV") of US$418 million, after deducting upfront capex, at a discount rate
of 5% and gold price of US$1,700/oz.
o Average annual production of ~150,000 oz of gold over the initial 9 years
of production.
Post Period Highlights
· On October 19, 2021 the Company provided an update on the status of
studies underway in support of a Feasibility Study ("FS") for its fully
permitted La India Project, Nicaragua. The FS is being conducted on La India
Open Pit and associated mine site infrastructure.
· On October 21, 2021 the Company announced the completion of an 8,004
m infill drilling programme on the fully permitted high-grade La Mestiza Open
Pit Mineral Resource at La India Project, Nicaragua.
· On October 25, 2021 the Company 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) .
· On October 28, 2021 the Company announce a placing of 11,714,286
Units at a price of 35p per Unit, including a Directors & CFO subscription
of 2,972,144 Units, for aggregate gross proceeds of £4,100,000 before
expenses (the "Placing").
Mark Child, Chairman and Chief Executive of Condor Gold, commented:
"During the third quarter of 2021, Condor Gold continued on its journey of
de-risking the La India Gold Project, advancing the Project to near
shovel-ready status. Several significant step-out and in-fill exploration
programs were either advanced or completed. Additionally, the Company provided
the key findings of a technical report on the Project which summarizes the
results of a strategic mining study to Preliminary Economic Assessment
standards. This report reveals the exceptional potential of the Project under
two scenarios, one open pit mining scenario incorporating four open pits and
another scenario that layers in the underground resources beneath the open
pits. Both scenarios provide robust economics with a payback period of
approximately 12 months. The Highlight production scenario is 150,000 oz gold
p.a. for 9 years with anIRR of 54% and a post-tax NPV of US$418 million, after
deducting upfront capex, at a discount rate of 5% and gold price of
US$1,700/oz. Subsequent to the the third quarter, Condor successfully
completed a private placement raising £4.1 million, providing the necessary
capital to continue advancing the Project towards production."
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS TO 30 SEPTEMBER 2021
Nine Nine Three Three months
months months months to 30.09.20
to 30.09.21 to 30.09.20 to 30.09.21 unaudited
unaudited unaudited unaudited £
£ £ £
Revenue - - - -
Share based payments (351,554) (193,048) (151,963) (94,514)
Administrative expenses (1,254,133) (1,018,448) (439,864) (282,772)
Gain on disposal of concession - 477,616 - -
Operating loss Note 3 (1,605,687) (733,880) (591,827) (377,286)
Finance income - 1,175 - -
Loss before income tax (1,605,687) (732,705) (591,827) (377,286)
Income tax expense Note 4 - - - -
Loss for the period (1,605,687) (732,705) (591,827) (377,286)
Other comprehensive income/(loss):
Currency translation differences (5,025) 49,134 619,603 (1,274,140)
Other comprehensive income/(loss) for the period (5,025) 49,134 619,603 (1,274,140)
Total comprehensive profit/(loss) for the period (1,610,712) (683,571) 27,776 (1,651,426)
Loss attributable to:
Non-controlling interest - - - -
Owners of the parent (1,605,687) (732,705) (591,827) (377,286)
(1,605,687) (732,705) (591,827) (377,286)
Total comprehensive profit/(loss) attributable to:
Non-controlling interest - - - -
Owners of the parent (1,610,712) (683,571) 27,776 (1,651,426)
(1,610,712) (683,571) 27,776 (1,651,426)
Profit/(loss) per share expressed in pence per share:
Basic and diluted (in pence) Note 7 (1.19) (0.70) (0.44) (0.32)
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
30.09.21 31.12.20 30.09.20
unaudited audited unaudited
£ £ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and 7,569,949 3,067,397 2,849,055
equipment
Intangible assets 26,184,917 22,089,314 22,739,013
33,754,866 25,156,711 25,588,068
CURRENT ASSETS
Trade and other receivables 588,439 114,409 197,713
Cash and cash equivalents 554,449 4,159,391 5,530,533
1,142,888 4,273,800 5,728,246
TOTAL ASSETS 34,897,754 29,430,511 31,316,314
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 59,473 266,412 219,992
TOTAL LIABILITIES 59,473 266,412 219,992
NET CURRENT ASSETS 1,083,415 4,007,388 5,508,254
34,838,281 29,164,099 31,096,322
NET ASSETS
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share 26,983,286 23,732,526 23,582,161
capital
Note 8
Share premium 40,858,206 37,175,626 37,105,761
Exchange difference reserve (2,367,126) (2,362,101) (697,799)
Retained earnings (30,636,085) (29,381,952) (28,893,801)
34,838,281 29,164,099 31,096,322
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 SEPTEMBER 2021
Share capital Share premium Exchange difference reserve Retained earnings Total Non controlling interest Total equity
£ £ £ £ £ £ £
At 1 January 2020 18,932,704 33,953,693 (746,933) (28,354,144) 23,785,320 - 23,785,320
Comprehensive income: - - - - - - -
Loss for the period - - - (732,705) (732,705) - (732,705)
Other comprehensive income:
Currency translation differences - - 49,134 - 49,134 - 49,134
Total comprehensive income - - 49,134 (732,705) (683,571) - (683,571)
New shares issued 4,649,457 3,152,068 - - 7,801,525 - 7,801,525
Issue costs - - - - - - -
Share based payment - - - 193,048 193,048 - 193,048
At 30 September 2020 23,582,161 37,105,761 (697,799) (28,893,801) 31,096,322 - 31,096,322
At 1 January 2021 23,732,526 37,175,626 (2,362,101) (29,381,952) 29,164,099 - 29,164,099
Comprehensive income: - - - - - - -
Loss for the period - - - (1,605,687) (1,605,687) - (1,605,687)
Other comprehensive income:
Currency translation differences - - (5,025) - (5,025) - (5,025)
Total comprehensive income - - (5,025) (1,605,687) (1,610,712) - (1,610,712)
New shares issued 3,250,760 3,682,580 - - 6,933,340 - 6,933,340
Issue costs - - - - - - -
Share based payment - - - 351,554 351,554 - 351,554
At 30 September 2021 26,983,286 40,858,206 (2,367,126) (30,636,085) 34,838,281 - 34,838,281
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 SEPTEMBER 2021
Nine months Nine months
to 30.09.21 to 30.09.20
unaudited unaudited
£ £
Cash flows from operating activities
Loss before tax (1,605,687) (732,705)
Share based payment 351,554 193,048
Depreciation charges - 16
Finance income - (1,175)
(1,254,133) (540,816)
(Increase)/decrease in trade and other receivables (474,030) (54,434)
Increase/(decrease) in trade and other payables (206,939) (537,110)
Net cash absorbed in operating activities (1,935,102) (1,132,360)
Cash flows from investing activities
Purchase of intangible fixed assets (4,344,306) (1,712,055)
Purchase of tangible fixed assets (4,506,964) (2,317,848)
Interest received - 1,175
Net cash absorbed in investing activities (8,851,270) (4,028,728)
Cash flows from financing activities
Net proceeds from share issue 6,933,340 7,801,525
Net cash generated in financing activities 6,933,340 7,801,525
Increase / (decrease) in cash and cash equivalents (3,853,032) 2,640,437
Cash and cash equivalents at beginning of period 4,159,391 2,903,556
Exchange losses on cash and bank 248,090 (13,460)
Cash and cash equivalents at end of period 554,449 5,530,533
- 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 Ewan Leggat
+44 (0) 20 3470 0470
H&P Advisory Limited Andrew Chubb and Nilesh Patel
+44 207 907 8500
Blytheweigh 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, but not limited to,
statements with respect to: the use of proceeds of the offering; the impact of
a Feasibility Study on, including investor confidence in, the Project; the
ability of the Company to access future financing; the ongoing mining dilution
and pit optimisation studies, and the incorporation of same into any mining
production schedule, future development and production plans 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 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, 2020 dated March 31, 2021 and available under
the Company's SEDAR profile at www.sedar.com.
Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to be
accurate as actual results and future events could differ materially from
those anticipated in such statements. The Company disclaims any intention or
obligation to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise unless required by law.
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