TIDMCNR
RNS Number : 2220G
Condor Gold PLC
14 November 2022
14 November 2022
Condor Gold Plc
("Condor" or the "Company")
Condor Gold plc announces its unaudited results for the three
and nine months ended 30 September, 2022
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, 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 third quarter of 2022
-- Feasibility Study confirmatory metallurgical testwork
demonstrated that gold recovery is independent of grade and a fixed
gold recovery of 91% assuming a 75 micron grind size is being used
in the project economics
-- 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.
-- 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%.
-- Updated Mineral Resource Estimate of 9,672 kt at 3.5g/t gold for 1,088,000 oz gold in the indicated mineral
resource category and 8,642 kt at 4.3 g/t gold for 1,190,000 oz gold in the inferred mineral resource category.
-- The open pit Mineral Resource Estimate is 8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral
resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category.
-- Total underground Mineral Resource Estimate is 979 kt at 6.2 g/t gold for 194,000 oz gold in the indicated
mineral resource category and 5,615 kt at 5.0 g/t gold for 898,000 oz gold in the inferred mineral resource
category.
-- The Cacao Mineral Resource has increased 69% to 1,164 kt at 2.5g/t gold for 101,000 oz gold in the inferred
mineral resource category. The deposit remains 'open' on strike and at depth.
-- Updated geological interpretations and integrated litho-structural, weathering and mineralisation models are
integrated in the MRE and reflect the higher degree of detail that is warranted for a Feasibility level of study
on La India Open Pit. This is supported by closer-spaced diamond drilling within the upper portion of the main La
India pit, along with additional detailed deposit-scale surface mapping.
On 12 September 2022, the 2022 Feasibility Study demonstrates a
robust and economically viable base case for the La India open
pit:
-- Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold
-- Production averages 81,545 oz gold per annum for the first 6 years of an 8.4 year mine life
-- An Internal Rate of Return ("IRR") of 23% and a post tax, post upfront capital cost NPV of US$86.9 million using
a discount rate of 5% and price of US$1,600 oz gold (Mineral Reserve Case).
-- An Internal Rate of Return ("IRR") of 43% and a post tax, post upfront capital cost NPV of US$205.2 million using
a discount rate of 5% and price of US$2,000 oz gold.
-- Low initial capital requirement of US$105.5 million (including contingency and EPCM contract)
-- Low average Life of Mine All-in Sustaining cash costs US$1,039 per oz gold
Post Period Highlights
-- 12 October 2022. Jim Mellon assumed the Chairmanship of Condor Gold
-- 26 October 2022. Feasibility Study Technical Report filed on SEDAR
Mark Child, Chief Executive of Condor Gold, commented:
"During the third quarter of 2022, Condor Gold continued on its
journey of de-risking the La India Gold Project, advancing the
Project to near construction-ready status. The Company's strategy
has been to develop the fully permitted La India Project in 2
stages using the new SAG Mill that has already been purchased. The
delivery of a Feasibility Study on La India open pit with an
average of 81,524 oz gold per annum for the initial 6 years for a
relatively low total upfront capital cost of US$106 Million is a
landmark and further de-risks the Project. At US$1,600 oz gold, the
La India open pit Mineral Reserve produces total revenues of US$888
Million, the total operating costs of mining, process and G&A
are US$480M, leading to an operating profit of US$408 Million or a
46% operating margin. After government and other royalties, but
before sustaining capital, the operating profit is US$355M, which
in Condor's opinion is ample to repay any project debt on the
relatively low upfront capex. At US$2,000 oz gold after paying
royalties, but before sustaining capital the operating profit is
US$563 Million. In reality, two permitted high grade feeder pits
will be added during the early years of production thus increasing
production ounces of gold. Early production is targeted at 100,000
oz gold p.a..
The plan is to materially expand production with a stage 2
expansion by converting existing Mineral Resources into Mineral
Reserves and an associated integrated mine plan. On 25 October
2021, the Company announced the results of a Preliminary Economic
Assessment and filed on SEDAR a technical report entitled "Condor
Gold Technical Report on the La Indian Gold Project, Nicaragua,
2021" detailing average annual production of 150,000 oz of gold
over the initial 9 years of production from open pit and
underground Mineral Resources and provides an indication of a
production target. Outside the main La India open pit Mineral
Reserve, there are additional open pit Mineral Resources on four
deposits (America, Mestiza, Central breccia and Cacao) which
represent an aggregate 206 Kt at 9.9 g/t gold for 66,000 oz in the
indicated Mineral Resource category and 2.1Mt at 3.3 g/t gold for
223,000 oz gold in the inferred Mineral Resource category. In
addition, there is an aggregate underground Mineral Resource (La
India, America, Mestiza, Central Breccia San Lucas,
Cristalito-Tatescame, and Cacao) of 979Kt a 6.2 g/t for 194,000 oz
gold in the indicated Mineral Resource category and 5.6Mt at 5.0
g/t gold for 898,000 oz gold in the inferred Mineral Resource
category.
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS TO 30 SEPTEMBER 2022
Nine Nine Three Three months
months months months to 30.09.21
to 30.09.22 to 30.09.21 to 30.09.22 unaudited
unaudited unaudited unaudited GBP
GBP GBP GBP
Revenue - - - -
Share based payments (355,241) (351,554) (66,335) (151,963)
Administrative expenses (1,557,925) (1,254,133) (472,855) (439,864)
Operating loss Note 3 (1,913,166) (1,605,687) (539,191) (591,827)
Finance income 4,025 - 2,440 -
Loss before income tax (1,909,141) (1,605,687) (536,751) (591,827)
Income tax expense Note 4 - - - -
Loss for the period (1,909,141) (1,605,687) (536,751) (591,827)
Other comprehensive income/(loss):
Currency translation differences 6,317,109 (5,025) 3,046,404 619,603
Other comprehensive income/(loss) for the period 6,317,109 (5,025) 3,046,404 619,603
Total comprehensive profit/(loss) for the period 4,407,968 (1,610,712) 2,509,653 27,776
Loss attributable to:
Non-controlling interest - - - -
Owners of the parent (1,909,141) (1,605,687) (536,751) (591,827)
(1,909,141) (1,605,687) (536,751) (591,827)
Total comprehensive profit/(loss)
attributable to:
Non-controlling interest - - - -
Owners of the parent 4,407,968 (1,610,712) 2,509,653 27,776
4,407,968 (1,610,712) 2,509,653 27,776
Profit/(loss) per share expressed in
pence per share:
Basic and diluted (in pence) Note 7 (1.20) (1.19) (0.34) (0.44)
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
30.09.22 31.12.21 30.09.21
unaudited audited unaudited
GBP GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 8,255,620 7,473,433 7,569,949
Intangible assets 36,775,455 28,100,980 26,184,314
45,031,075 35,574,413 33,754,866
CURRENT ASSETS
Trade and other receivables 902,260 775,693 588,439
Cash and cash equivalents 570,638 2,072,046 554,449
1,472,898 2,847,739 1,142,888
TOTAL ASSETS 46,503,973 38,422,152 34,897,754
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 239,869 248,176 59,473
TOTAL LIABILITIES 239,869 248,176 59,473
NET CURRENT ASSETS 1,233,029 2,599,563 1,083,415
NET ASSETS 46,264,104 38,173,976 34,838,281
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital Note 8 31,725,906 29,326,143 26,983,286
Share premium 43,455,783 42,528,627 40,858,206
Exchange difference reserve 3,835,071 (2,482,038) (2,367,126)
Retained earnings (32,752,656) (31,198,756) (30,636,085)
46,264,104 38,173,976 34,838,281
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 SEPTEMBER 2022
Share Share Exchange Retained Total Non Total equity
capital premium difference earnings controlling
reserve interest
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2021 23,582,526 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
At 1 January
2022 29,326,143 42,528,627 (2,482,038) (31,199,756) 38,173,976 - 38,173,976
Comprehensive - - - - - - -
income:
Loss for the
period - - - (1,909,141) (1,909,141) - (1,909,141)
Other
comprehensive
income:
Currency
translation
differences - - 6,317,109 - 6,317,109 - 6,317,109
Total
comprehensive
income - - 6,317,109 (1,909,141) 4,407,968 - 4,407,968
New shares
issued 2,399,763 927,156 - - 3,326,919 - 3,326,919
Issue costs - - - - - - -
Share based
payment - - - 355,241 355,241 - 355,241
At 30
September
2022 31,725,906 43,455,783 3,835,071 (32,752,656) 46,264,104 - 46,264,104
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 SEPTEMBER 2022
Nine months Nine months
to 30.09.22 to 30.09.21
unaudited unaudited
GBP GBP
Cash flows from operating activities
Loss before tax (1,909,141) (1,605,687)
Share based payment 355,241 351,554
Depreciation charges 51,377 -
Finance income (4,025) -
(1,506,548) (1,254,133)
(Increase)/decrease in trade and other receivables (126,567) (474,030)
Increase/(decrease) in trade and other payables (8,307) (206,939)
Net cash absorbed in operating activities (1,641,422) (1,935,102)
Cash flows from investing activities
Purchase of intangible fixed assets (3,089,766) (4,344,306)
Purchase of tangible fixed assets (230,438) (4,506,964)
Interest received 4,025 -
Net cash absorbed in investing activities (3,316,179) (8,851,270)
Cash flows from financing activities
Net proceeds from share issue 3,326,919 6,933,340
Net cash generated in financing activities 3,326,919 6,933,340
Increase / (decrease) in cash and cash equivalents (1,630,682) (3,853,032)
Cash and cash equivalents at beginning of period 2,072,046 4,159,391
Exchange losses on cash and bank 129,274 248,090
Cash and cash equivalents at end of period 570,638 554,449
Capital Commitments
The Company has capital commitments of $300,000 due to First
Majestic Silver.
- Ends -
For further information please visit www.condorgold.com or
contact:
Condor Gold plc Mark Child, 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
Adelaide Capital Deborah Honing
(Investor Relations) +1-647-203-8793
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.
The 2022 Feasibility Study (2020 FS) ws filed on SEDAR on 26
October 2022 and replaces the previously reported Preliminary
Economic Assessment ("PEA") as presented in the Technical Report
filed on SEDAR in October 2021 as the current technical report for
the La India project.
The 2021 PEA considered the expanded Project inclusive of the
exploitation of the Mineral Resources associated to the La India,
Mestiza, America and Central Breccia deposits. The strategic study
covers two scenarios: Scenario A, in which the mining is undertaken
from four open pits, termed La India, America, Mestiza and Central
Breccia Zone ("CBZ"), which targets a plant feed rate of 1.225
million tonnes per annum ("Mtpa"); and Scenario B, where the mining
is extended to include three underground operations at La India,
America and Mestiza, in which the processing rate is increased to
1.4 Mtpa. The 2021 PEA Scenario B presented 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 were 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. The 2021 PEA Scenario A presented a
post-tax, post upfront capital expenditure NPV of US$302 million,
with an IRR of 58% and 12 month pay-back period, assuming a
US$1,700 per oz gold price, with average annual production of
approximately 120,000 oz gold per annum for the initial 6 years of
gold production.
The Mineral Resource estimate and associated Preliminary
Economic Assessment contained in the 2021 PEA are considered a
historical estimate within the meaning of NI 43-101, a qualified
person has not done sufficient work to classify such historical
estimate as current, and the Company is not treating the historical
Mineral Resource estimate and associated studies as current, and
the reader is cautioned not to rely upon this data as such. Mineral
Resources that are not Mineral Reserves do not have demonstrated
economic viability. The Company believes that the historical
Mineral Resource estimate and Preliminary Economic assessment is
relevant to the continuing development of the La India Project.
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.
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.,
a director of Condor Gold plc, and Gerald D. Crawford, P.E., the
Chief Technical Officer of Condor Gold plc, each of whom is a
"qualified person" as defined by NI 43-101.
Technical Information
Certain disclosure contained in this news release of a
scientific or technical nature has been reviewed by the Qualified
Persons responsible for their respective components of the 2022 FS
as defined below:
-- On behalf of SRK: Dr Tim Lucks of SRK Consulting (UK) Limited, Mr Fernando Rodrigues and Mr Ben Parsons of SRK
Consulting (U.S.) Inc., Mr Parsons assumes responsibility for the Mineral Resource Estimate, Mr Fernando
Rodrigues for the Mineral Reserve estimate and the open pit mining study and production schedule, and Dr Lucks
for the oversight of the remaining SRK technical disciplines.
-- On behalf of Hanlon: Mike Rockandel for the Process design and Project Infrastructure and corresponding operating
and capital costs.
-- On Behalf of Tierra Group: Justin Knudsen P.E. for the tailings waste management and La Simona water attenuation
structure design.
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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