REG - Condor Gold PLC - Unaudited results ended September 30, 2018

Condor GoldAnnouncement

14/11/2018 07:05

RNS Number : 2449H
Condor Gold PLC
14 November 2018
 






 
 
 
 


 
Condor Gold plc
             7th Floor
39 St. James's Street
London
SW1A 1JD 
 




November 14, 2018                                                                                                                      
Condor Gold plc
("Condor", "Condor Gold" or the "Company")
Condor Gold plc announces its unaudited results for the three and nine months ended September 30, 2018
 
Condor Gold (AIM: CNR; OTCQX: CNFGF; TSX: COG) announces that it has today published its unaudited financial results for the three and nine month periods ending September 30, 2018 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 third quarter of 2018
·  The Ministry of the Environment ("MARENA") completed a positive review of the Environmental and Social Impact Assessment ("ESIA") at the La India Project in Nicaragua (the "Project") and formally notified the Company to proceed to a Public Consultation (a public hearing) on July 13, 2018.
·     The turn out was high; a total of 499 people registered and attended the Public Consultation at which the technical, environmental and social aspects of a new mine were presented and discussed in a transparent manner. During presentations of the Project to community groups and house-to-house visits the Company received over 600 expressions of interest in/applications for new jobs.
·     On August 6, 2018, the Company announced that MARENA had granted the Company the key Environmental Permit for the Project for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day ("tpd"). Gold production is expected to be between 80,000 and 100,000 ounces ("oz") per annum from a single open pit, representing a US$120 million investment and creating an estimated 1,000 new jobs.
·     Positive rock chip assay results and on-going detailed geological mapping progress the plan to define a major gold district around La India Project.
 
Post Period Highlights
·     SRK Consulting (U.K.) Ltd has been engaged to update the mineral resource for approximately 12,000m drilling since the previous mineral resource update from December 2014.
 
 
 
Mark Child, Chairman and Chief Executive of Condor Gold, commented:
 
"The construction and operation of a new mine at Mina La India is now materially de-risked. During the third quarter Condor received the key Environmental Permit to produce approximately 600,000 oz gold from a single open pit. Annual gold production is expected to be between 80,000 to 100,000 oz.  La India has an open pit gold mineral reserve in the Probable category of 6.9 million tonnes ("Mt") at 3.0 grams per tonne ("g/t") gold for 675,000 oz gold. The economics are attractive. All-in sustaining cash costs of US$700 per ounce gold compare favorably to the current gold price of US$1,220 per ounce.  
 
"To put the permitted open pit in context, it represents about 34% of the La India Project's total mineral resource; significantly more gold may be produced, subject to further drilling, technical studies and additional permits. The La India Project contains a mineral resource in the indicated category of 9.6 Mt at 3.5 g/t for 1.08 million oz gold and a total mineral resource in the inferred category of 8.5 Mt at 4.5 g/t for 1.23 million oz gold. The indicated mineral resource is inclusive of the mineral reserve.
 
"Condor has engaged SRK Consulting (U.K.) Ltd to update the mineral resource for approximately 12,000m drilling since the previous mineral resource update. Internal studies show a new high-grade feeder pit.  Our strategy is to demonstrate that high grade feeder pits can materially supplement production from the main La India open pit."
 
 
 
 
 
 
 
CONDOR GOLD PLC
 
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS TO 30 SEPTEMBER 2018
 




 


 


 


 


 


 


 


 


 


 




 


 


 


Nine
months
 to 30.09.18
unaudited
£


 


Nine
 months
 to 30.09.17
unaudited
£


 


Three
months
 to 30.09.18
unaudited
£


 


Three months
to 30.09.17
unaudited
£




Revenue


 


 


-


 


-


 


-


 


-




 


 


 


 


 


 


 


 


 


 




Share based payments


 


 


(501,530)


 


(1,849,568)


 


(35,225)


 


(194,171)




Administrative expenses


 


 


(1,112,147)


 


(2,034,384)


 


(289,963)


 


(344,302)




 


 


 


 


 


 


 


 


 


 




Operating loss


Note 3


 


(1,613,677)


 


(3,883,952)


 


(325,188)


 


(538,473)




 


 


 


 


 


 


 


 


 


 




Finance income


 


 


1,797


 


-


 


839


 


-




 


 


 


 


 


 


 


 


 


 




Loss before income tax


 


 


(1,611,880)


 


(3,883,952)


 


(324,349)


 


(538,473)




 


 


 


 


 


 


 


 


 


 




Income tax expense                


Note 4


 


-


 


-


 


-


 


-




 


 


 


 


 


 


 


 


 


 




Loss for the period


 


 


(1,611,880)


 


(3,883,952)


 


(324,349)


 


(538,473)




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




Other comprehensive income/(loss):


 


 


 


 


 


 


 


 


 




Currency translation differences


 


 


182,041


 


735,189


 


(10,370)


 


(786,028)




Other comprehensive income/(loss) for the period


 


 


182,041


 


735,189


 


(10,370)


 


(786,028)




 


 


 


 


 


 


 


 


 


 




Total comprehensive loss for the period


 


 


(1,429,839)


 


(3,148,763)


 


(334,719)


 


(1,324,501)




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




Loss attributable to:


 


 


 


 


 


 


 


 


 




Non-controlling interest


 


 


-


 


-


 


-


 


-




Owners of the parent


 


 


(1,611,880)


 


(3,883,952)


 


(324,349)


 


(538,473)




 


 


 


(1,611,880)


 


(3,883,952)


 


(324,349)


 


(538,473)




 


 


 


 


 


 


 


 


 


 




Total comprehensive loss attributable to:


 


 


 


 


 


 


 


 


 




Non-controlling interest


 


 


-


 


(6,946)


 


-


 


(2,809)




Owners of the parent


 


 


(1,429,839)


 


(3,141,817)


 


(334,719)


 


(1,327,310)




 


 


 


(1,429,839)


 


(3,148,763)


 


(334,719)


 


(1,324,501)




 


 


 


 


 


 


 


 


 


 




Loss per share expressed in pence per share:


 


 


 


 


 


 


 


 


 




Basic and diluted (in pence)


Note 7


 


(2.46)


 


(6.52)


 


(0.48)


 


(0.88)




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




CONDOR GOLD PLC
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2018
 
 




 


 


 


 


 


 




 


30.09.18
unaudited
£


 


31.12.17
audited
£


 


30.09.17
unaudited
£




ASSETS:


 


 


 


 


 




NON-CURRENT ASSETS


 


 


 


 


 




Property, plant and equipment                                                       


191,881


 


271,319


 


275,766




Intangible assets


20,431,673


 


18,927,968


 


18,355,741




 


20,623,554


 


19,199,287


 


18,631,507




 


 


 


 


 


 




CURRENT ASSETS


 


 


 


 


 




Trade and other receivables


312,626


 


320,974


 


580,942




Cash and cash equivalents


878,272


 


946,261


 


2,020,493




 


1,190,898


 


1,267,235


 


2,601,435




 


 


 


 


 


 




TOTAL ASSETS


21,814,452


 


20,466,522


 


21,232,942




 


 


 


 


 


 




LIABILITIES:


 


 


 


 


 




CURRENT LIABILITIES


 


 


 


 


 




Trade and other payables


322,218


 


445,030


 


354,019




 


 


 


 


 


 




 


 


 


 


 


 




TOTAL LIABILITIES


322,218


 


445,030


 


354,019




 


 


 


 


 


 




NET CURRENT ASSETS


868,680


 


822,205


 


2,247,416




 


 


 


 


 


 




 
NET ASSETS


21,492,234


 


20,021,492


 


20,878,923




 


 


 


 


 


 




 


 


 


 


 


 




SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT


 


 


 


 


 




Called up share capital                                        Note 8


13,435,868


 


12,273,077


 


12,273,076




Share premium


33,662,309


 


32,426,049


 


32,426,047




Exchange difference reserve


763,616


 


581,575


 


1,374,661




Retained earnings


(26,369,559)


 


(25,174,153)


 


(25,109,211)




 


21,492,234


 


20,106,548


 


20,964,573




 


 


 


 


 


 




TOTAL EQUITY ATTRIBUTABLE TO:


 


 


 


 


 




Non-controlling interest


-


 


(85,056)


 


(85,650)




 


21,492,234


 


20,021,492


 


20,878,923




 


 


 


 


 


 




 
 


 


 


 


 


 




 
CONDOR GOLD PLC
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 SEPTEMBER 2018
 
 




 
 


Share capital


Share premium


Exchange difference reserve


Retained earnings


Total


Non controlling interest


Total equity




 


£


£


£


£


£


£


£




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


-


-


-


(3,883,952)


(3,883,952)


-


(3,883,952)




Other comprehensive income:


 


 


 


 


 


 


 




Currency translation differences


-


-


742,135


-


742,135


(6,946)


735,189




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Total comprehensive income


-


-


742,135


(3,883,952)


(3,141,817)


(6,946)


(3,148,763)




 


 


 


 


 


 


 


 




New shares issued


1,690,947


3,550,986


-


-


5,241,933


-


5,241,933




Share based payment


-


-


-


1,849,859


1,849,859


-


1,849,859




 


 


 


 


 


 


 


 




At 30 September 2017


12,273,076


32,426,047


1,374,661


(25,109,211)


20,964,573


(85,650)


20,878,923




 


 


 


 


 


 


 


 




At 1 January 2018


12,273,077


32,426,049


581,575


(25,174,153)


20,106,548


(85,056)


20,021,492




Comprehensive income:


 


 


 


 


 


 


 




Loss for the period


-


-


-


(1,611,880)


(1,611,880)


-


(1,611,880)




Other comprehensive income:


 


 


 


 


 


 


 




Transactions with non-controlling interest


-


-


-


(85,056)


(85,056)


85,056


-




Currency translation differences


-


-


182,041


-


182,041


-


182,041




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Total comprehensive income


 


 


182,041


(1,696,936)


(1,514,895)


85,056


(1,429,839)




 


 


 


 


 


 


 


 




New shares issued


1,162,791


1,337,210


-


-


2,500,001


-


2,500,001




Issue costs


-


(100,950)


-


-


(100,950)


-


(100,950)




Share based payment


-


-


-


501,530


501,530


-


501,530




 


 


 


 


 


 


 


 




At 30 September 2018


13,435,868


33,662,309


763,616


(26,369,559)


21,492,234


-


21,492,234




 
 
CONDOR GOLD PLC
 
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 SEPTEMBER 2018
 
 




 


 


 


 


 


 


 




 


 


 


Nine months
to 30.09.18
unaudited
£


 


Nine months
 to 30.09.17
unaudited
£


 




Cash flows from operating activities


 


 


 


 


 




Loss before tax


 


 


(1,611,880)


 


(3,883,952)


 




Share based payment


 


 


501,530


 


1,849,859


 




Depreciation charges


 


 


91,350


 


75,601


 




Impairment charge of intangible fixed assets


 


 


-


 


-


 




Finance income


 


 


(1,797)


 


-


 




 


 


 


(1,020,797)


 


(1,958,492)


 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




(Increase)/decrease in trade and other receivables


 


 


8,351


 


(35,691)


 




Increase/(decrease) in trade and other payables


 


 


(122,813)


 


2,468


 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




Net cash absorbed in operating activities


 


 


(1,135,259)


 


(1,991,715)


 




 


 


 


 


 


 


 




Cash flows from investing activities


 


 


 


 


 


 




Purchase of intangible fixed assets


 


 


(1,314,117)


 


(2,506,191)


 




Purchase of tangible fixed assets


 


 


(13,571)


 


(118,216)


 




Interest received


 


 


1,797


 


-


 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




Net cash absorbed in investing activities


 


 


(1,325,891)


 


(2,624,407)


 




 


 


 


 


 


 


 




Cash flows from financing activities


 


 


 


 


 


 




Net proceeds from share issue


 


 


2,399,051


 


5,241,933


 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




Net cash generated in financing activities


 


 


2,399,051


 


5,241,933


 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




Increase / (decrease) in cash and cash equivalents


 


 


(62,099)


 


625,811


 




Cash and cash equivalents at beginning of period


 


 


946,261


 


583,610


 




Exchange losses on cash and bank


 


 


(5,890)


 


811,072


 




 


 


 


 


 


 


 




Cash and cash equivalents at end of period


 


 


878,272


 


2,020,493


 




 
 
- 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


 




Numis Securities Limited


John Prior and James Black
+44 (0) 20 7260 1000


 




Blytheweigh


Tim Blythe, Camilla Horsfall and Megan Ray
+44 (0) 20 7138 3204
 
 


 




About Condor Gold plc:
Condor Gold plc was admitted to AIM on 31 May 2006. The Company is a gold exploration and development company with a focus on Central America.
In August 2018, the Company announced that the Ministry of the Environment had granted the Company 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, The EP is considered to be the master permit for mining operations in Nicaragua. Condor published a Pre-Feasibility Study ("PFS") on its wholly owned La India Project in Nicaragua in December 2014, as summarised in the Technical Report (as defined below). The PFS details an open pit gold mineral reserve in the Probable category of 6.9 million tonnes ("Mt") at 3.0 grams per tonne ("g/t") gold for 675,000 oz gold, producing 80,000 oz gold per annum for seven years. La India Project contains a mineral resource in the indicated category of 9.6 Mt at 3.5 g/t for 1.08 million oz gold and a total mineral resource in the inferred category of 8.5 Mt at 4.5 g/t for 1.23 million oz gold. The indicated mineral resource is inclusive of the mineral reserve.  
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.
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, December 2014", dated November 13, 2017 with an effective date of December 21, 2014 (the "Technical Report"), prepared in accordance with NI 43-101. The Technical Report was prepared by or under the supervision of Tim Lucks, Principal Consultant (Geology & Project Management), Gabor Bacsfalusi, Principal Consultant (Mining), Benjamin Parsons, Principal Consultant (Resource Geology), each of SRK Consulting (UK) Limited, and Neil Lincoln of Lycopodium Minerals Canada Ltd., each of whom is an independent Qualified Person as such term is defined in NI 43-101.
David Crawford, Chief Technical Officer of the Company and a Qualified Person as defined by NI 43-101, has approved the written disclosure in this press release.
Forward Looking Statements
All statements in this press release, other than statements of historical fact, are 'forward-looking information' with respect to the Company within the meaning of applicable securities laws, including statements with respect to: the Company's plans, the increase in future gold production at La India, the mineral resources, mineral reserves and production rate and operational activities at the 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, 2017 dated March 29, 2018, 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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END
 
 
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