TIDMCNR
RNS Number : 0448F
Condor Gold PLC
12 November 2020
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
Tel: +44 (0) 207 493 2784
12 November 2020
Condor Gold Plc
("Condor" or the "Company")
Condor Gold plc announces its unaudited results for the three
and nine months ended 30 September, 2020
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, 2020 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 2020
-- Strong cash balance: GBP5.5M as of end-September
-- Significant progress in de-risking La India project announced
on 13 August, through purchase of land in and around the permitted
La India open pit mine site area and provided an update on key
elements in advancing the project:
-- Acquired 85% of the land within the permitted La India open
pit mine site infrastructure, including the key areas of the
location of the processing plant, tailings storage facility, open
pit, waste dump area, explosives magazine.
-- Tailings Storage Facility and 2 water retention ponds are
being fully designed by Tierra Group Inc. - 40% of the engineering
designs are completed.
-- The design of the site wide water balance including a surface
water management plan has been awarded to SRK Consulting (UK) Ltd
and is underway.
-- Preliminary designs for the layout of the mine site
infrastructure including, in some detail, the designs for the
location of the processing plant have been completed.
-- Mine and waste dump schedules for a number of mining scenarios have been completed
-- The power studies have been progressed and several meetings
held with the Ministry of Energy and Mines.
-- On 10 July the Company announced the purchase by Jim Mellon,
a Director, of 400,000 ordinary shares in the Company at a price of
38p per ordinary share.
-- Further purchases of shares by Jim Mellon, as announced on 25
August and 24 September, of 75,000 and 100,000 shares
respectively.
Post Period Highlights
-- 93% of the land within the permitted La India open pit mine
site infrastructure area has been purchased
-- Commencement on 27 October of a ground investigation program
consisting of 20 geotechnical drill holes and 58 test pits on the
Tailings Storage Facility ("TSF"), Water Retention Reservoir and
Processing Plant site at La India, accelerating the project from a
Pre-Feasibility level of design to Final Engineering Designs on key
infrastructure in preparation for construction on the
fully-permitted project. In particular:
-- Final TSF design will be fully compliant with internal and external legislation.
-- Geotechnical drilling program comprises 20 drill holes and 58
test pits on the Tailings Storage Facility (TSF), La Simona water
retention reservoir and processing plant site.
-- Geotechnical drilling and test pits on La Simona dam and
reservoir - the purpose is to develop the design criteria for a
retention dam and diversion water facility.
Mark Child, Chairman and Chief Executive of Condor Gold,
commented:
"During the third quarter 2020 Condor Gold continued to de-risk
La India Project, advancing the Project to a shovel-ready status.
The Company has purchased the vast majority, over 93%, of the
surface rights within the permitted La India open pit mine site
infrastructure area. The Project is proceeding as if the Company
owns 100% of the land as the Company is confident of securing the
balance. Geotechnical drilling is currently underway on the
embankment locations for the tailings storage facility and water
retention reservoir together with some 58 test pits including a
dozen on the location of the processing plant. Several engineering
studies are being taken beyond that of a feasibility study to a
final design for construction. In summary, the Project is being
fast tracked to production. In-filling drilling programmes in the
open pits have been designed, drilling is expected to commence in
the near future."
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS TO 30 SEPTEMBER 2020
Nine Nine Three Three months
months months months to 30.09.19
to 30.09.20 to 30.09.19 to 30.09.20 unaudited
unaudited unaudited unaudited GBP
GBP GBP GBP
Revenue - - - -
Share based payments (193,048) (147,479) (94,514) (46,871)
Administrative expenses (1,018,448) (823,867) (282,772) (271,283)
Gain on disposal of 477,616 - - -
concession
Operating loss (733,880) (971,346) (377,286) (318,154)
Finance income 1,175 2,763 - 2,029
Loss before income tax (732,705) (968,583) (377,286) (316,125)
Income tax expense - - - -
Loss for the period (732,705) (968,583) (377,286) (316,125)
============= ============= ============= =============
Other comprehensive
income/(loss):
Currency translation
differences 49,134 (24,470) (1,274,140) 421,135
------------- ------------- ------------- -------------
Other comprehensive
income/(loss) for the
period 49,134 (24,470) (1,274,140) 421,135
============= ============= ============= =============
Total comprehensive
loss for the period (683,571) (993,053) (1,651,426) 105,010
============= ============= ============= =============
Loss per share expressed
in pence per share:
Basic and diluted (in
pence) (0.70) (1.24) (0.32) (0.35)
============= ============= ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2020
30.09.20 31.12.19 30.09.19
unaudited audited unaudited
GBP GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 2,849,055 585,950 219,197
Intangible assets 22,739,013 20,909,637 21,917,014
25,588,068 21,495,587 22,136,211
------------- ------------- -------------
CURRENT ASSETS
Trade and other receivables 197,713 143,279 368,789
Cash and cash equivalents 5,530,533 2,903,556 3,637,425
------------- ------------- -------------
5,728,246 3,046,835 4,006,214
------------- ------------- -------------
TOTAL ASSETS 31,316,314 24,542,422 26,142,425
============= ============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 219,992 757,102 155,736
------------- ------------- -------------
TOTAL LIABILITIES 219,992 757,102 155,736
============= ============= =============
NET CURRENT ASSETS 5,508,254 2,289,733 3,850,478
------------- ------------- -------------
NET ASSETS 31,096,322 23,785,320 25,986,689
============= ============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital 23,582,161 18,932,704 18,932,704
Share premium 37,105,761 33,953,693 33,953,693
Exchange difference reserve (697,799) (746,933) 935,321
Retained earnings (28,893,801) (28,354,144) (27,835,029)
31,096,322 23,785,320 25,986,689
============= ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 SEPTEMBER 2020
Share Share Exchange Retained Total Non controlling Total
capital premium difference earnings interest equity
reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 13,435,868 33,662,309 959,791 (27,013,925) 21,044,043 - 21,044,043
Comprehensive - - - - - - -
income:
Loss for the
period - - - (968,583) (968,583) - (968,583)
Other - - - - - - -
comprehensive
income:
Transactions - - - - - - -
with
non-controlling
interest
Currency
translation
differences - - (24,470) - (24,470) - (24,470)
Total
comprehensive
income - - (24,470) (968,583) (993,053) - (993,053)
New shares
issued 5,496,836 291,384 - - 5,788,220 - 5,788,220
Issue costs - - - - - -
Share based
payment - - - 147,479 147,479 - 147,479
At 30 September
2019 18,932,704 33,953,693 935,321 (27,835,029) 25,986,689 - 25,986,689
----------- ----------- ------------ ------------- ----------- ---------------- -----------
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:
Transactions - - - - - - -
with
non-controlling
interest
Currency
translation
differences - - 49,134 - 49,134 - 49,134
Total
comprehensive
income - - 49,134 (732,705) (781,839) - (781,839)
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
----------- ----------- ------------ ------------- ----------- ---------------- -----------
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 SEPTEMBER 2020
Nine months Nine months
to 30.09.20 to 30.09.19
unaudited unaudited
GBP GBP
Cash flows from operating activities
Loss before tax (732,705) (968,583)
Share based payment 193,048 147,479
Depreciation charges 16 35,130
Impairment charge of intangible - -
fixed assets
Finance income (1,175) (2,763)
------------- -------------
(540,816) (788,737)
(Increase)/decrease in trade
and other receivables (54,434) (149,712)
Increase/(decrease) in trade
and other payables (537,110) (95,580)
Net cash absorbed in operating
activities (1,132,360) (1,034,029)
------------- -------------
Cash flows from investing activities
Purchase of intangible fixed
assets (1,712,055) (1,275,263)
Purchase of tangible fixed assets (2,317,848) (44,015)
Interest received 1,175 2,763
Net cash absorbed in investing
activities (4,028,728) (1,316,515)
------------- -------------
Cash flows from financing activities
Net proceeds from share issue 7,801,525 5,788,220
Net cash generated in financing
activities 7,801,525 5,788,220
------------- -------------
Increase / (decrease) in cash
and cash equivalents 2,640,437 3,437,676
Cash and cash equivalents at
beginning of period 2,903,556 220,975
Exchange losses on cash and
bank (13,460) (21,226)
------------- -------------
Cash and cash equivalents at
end of period 5,530,533 3,637,425
------------- -------------
- 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
Blytheweigh Tim Blythe, Camilla Horsfall 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.
In August 2018, the Company announced that the Ministry of the
Environment in Nicaragua 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 at its wholly-owned La India gold project ("La India Project").
The EP is considered to be the master permit for mining operations
in Nicaragua. Condor Gold published a Pre-Feasibility Study ("PFS")
on the La India Project 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 Mt at 3.0 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 of
9,850Kt at 3.6 g/t gold for 1,140Koz gold in the Indicated category
and 8,479Kt at 4.3g/t gold for 1,179Koz gold in the Inferred
category. The Indicated Mineral Resource is inclusive of the
Mineral Reserve. A gold price of $1,500/oz and a cut-off grade of
0.5g/t and 2.0g/t gold were assumed for open pit and underground
resources respectively. A cut-off grade of 1.5g/t gold was
furthermore applied within a part of the Inferred Resource. Mineral
Resources are not Mineral Reserves and do not have demonstrated
economic viability. There is no certainty that any part of the
Mineral Resources will be converted to Mineral Reserves.
Environmental Permits have also been granted in April and May
2020 in relation to the Mestiza and America open pits respectively,
both located in the vicinity of the La India Project. The Mestiza
open pit hosts 92Kt at a grade of 12.1 g/t gold (36,000 oz
contained gold) in the Indicated Mineral Resource category and
341Kt 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 contained gold) in the
Indicated Mineral Resource category and 677Kt at a grade of 3.1 g/t
gold (67,000 oz contained gold) 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 1.12M oz gold
open pit Mineral Resources permitted for extraction, inclusive of a
Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold.
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 Mineral Resource Estimate has been completed by Ben Parsons,
a Principal Consultant (Resource Geology) with SRK Consulting
(U.S.), Inc, who is a Member of the Australian Institute of Mining
and Metallurgy, MAusIMM(CP). Ben Parsons has some nineteen years'
experience in the exploration, definition and mining of precious
and base metal Mineral Resources. Ben Parsons is a full-time
employee of SRK Consulting (U.S.), Inc, an independent consultancy,
and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration, and to the
type of activity which he is undertaking to qualify as a "qualified
person" as defined under National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") of the Canadian
Securities Administrators and as required by the June 2009 Edition
of the AIM Note for Mining and Oil & Gas Companies. Ben Parsons
consents to the inclusion in the announcement of the matters based
on their information in the form and context in which it appears
and confirms that this information is accurate and not false or
misleading.
The mining dilution studies reported for the Mestiza and America
deposits have been performed under the supervision of Dr Tim Lucks,
Principal Consultant (Geology & Project Management), of SRK
Consulting (UK) Limited, who is a Member of the Australian
Institute of Mining and Metallurgy, MAusIMM(CP). Tim Lucks is an
independent "qualified person" as such term is defined in NI
43-101. Tim Lucks consents to the inclusion in the announcement
that material that relates to the America and Mestiza dilution
studies, in the form and context in which it appears and confirms
that this information is accurate and not false or misleading.
The technical and scientific information in this press release
has been reviewed, verified and approved by 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, 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 defined by NI
43-101 .
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 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, 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, 2019 dated March 31, 2020 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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