TIDMCNR
RNS Number : 3811U
Condor Gold PLC
28 March 2023
Condor Gold Plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey GU7 1JX
Telephone +44 020 74932784
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION (EU) 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE
UNITED KINGDOM BY VIRTUE OF THE EU (WITHDRAWAL) ACT 2018
("MAR").
28 March 2023
Condor Gold Plc
("Condor Gold","Condor" or the "Company")
Condor Gold Announces Its Audited Results For The Year Ended 31
December 2022 and Annual General Meeting of Shareholders
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce its
audited results for the year ended 31 December 2022 and provides
notification that the Annual General Meeting of shareholders of the
Company will be held at 3:00 p.m. on 11 May 2023 at 7/8 Innovation
Place, Godalming, Surrey, GU7 1JX, United Kingdom.
The Company has published the formal notice of meeting (the
"Notice") on its website (www.condorgold.com) together with the
related voting proxy form for use by shareholders. A copy of the
Notice, together with the proxy voting form, the Annual Report for
the year ended 31 December 2022 will be posted to all shareholders
who have elected to receive them in hard copy.
HIGHLIGHTS FOR THE YEARED 31 DECEMBER 2022
-- In Q1 2022 the Company released good drill results for Mestiza open pit:
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.
-- In La India open pit new drill results included: 34.1 m true
width at 2.56 g/t gold and 28.7 m true width at 2.62 g/t gold.
-- Updated Mineral Resource Estimate at La India Project 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 La India Project's total 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. The
Project's 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' along strike and at depth.
-- Feasibility Study confirmatory metallurgical test work
demonstrated that gold recovery is independent of grade and a fixed
gold recovery of 91% assuming a 75 micron grind size has been used
in the project economics. 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%.
-- In October 2022, a Feasibility Study demonstrated a robust
and economically viable base case for the La India open pit
only:
o Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000
oz gold
o Production averages 81,545 oz gold per annum for the first 6
years of an 8.4 year mine life
o 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).
o An 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.
o Low initial capital requirement of US$105.5 million (including
contingency and EPCM contract)
o Low average Life of Mine All-in Sustaining cash costs US$1,039
per oz gold
-- Land acquisition continued 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.
-- On 12 October 2022, Jim Mellon assumed the Chairmanship of Condor Gold
-- GBP6,650,000 of gross proceeds raised by way of private
placements, the issue of convertible loan notes, and an open offer
during 2022.
POST PERIOD HIGHLIGHTS
-- On 13 March 2023 - the sales process is now entering the end
of its first phase with various parties having conducted site
visits and others ongoing. Three formal expressions of interest
including 2 non-binding offers (subject to further due diligence)
have been received by the Company and further offers are expected
as 9 companies are under a Non-Disclosure Agreement (NDA).
Cautionary Statement: Investors should note that, whilst the
Board is encouraged by the process to date, there can be no
guarantee that the Company will complete the sale of its
assets.
CONDOR GOLD PLC
CHAIRMAN'S STATEMENT and CEO's REPORT FOR THE YEARED 31 DECEMBER
2022
Chairman's introductory comments
Dear Shareholder,
Condor is at an important point in its history. It is very close
to mining, with substantial proven reserves, and a carefully costed
mining plan. It is now the time for a larger company to take on the
reins of our key assets and our CEO, Mark Child, has been working
hard to find the right partner. The gold price is rising and the
omens for further rises are good. The Company enjoys strong
shareholder support and I am confident that our outcomes are
positive.
Jim Mellon
Chairman
CEO'S Report
Dear Shareholder,
I am pleased to present Condor Gold Plc's ("Condor", the
"Company" or the "Group", www.condorgold.com or, if you are viewing
from Canada, ca.condorgold.com) annual report for the 12-month
financial year to 31 December 2022. The fully permitted La India
Open Pit and associated mine site infrastructure has been
materially de-risked. with the completion of all technical studies
required for a Feasibility Study Technical Report ("2022 FS")
utilising the new SAG Mill package acquired by Condor in March
2021. Details of the 2022 FS were announced on 12 September 2022
and filed on SEDAR (https://www.sedar.com) and made available on
the Company's websites under "Technical Reports" on 26 October
2022. During the year Condor produced a much more robust Mineral
Resource Estimate for the La India Project, details of which are
included in the 2022 FS.
The Company's strategy has been to develop the fully permitted
La India Project in two 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 six 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$480 million, 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$355 million, 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 would be to materially expand production with a stage
two 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 nine 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.
The Company informed the Ministry of the Environment and Natural
Resources ("MARENA") that it had commenced construction (consisting
of site clearance of 14ha, importing the SAG Mill and completing
the FS studies) and fulfilled the initial conditions of an
Environmental Permit (the "EP") granted for the development,
construction, and operation of an open pit mine, a 2,800 tpd or 1.0
Mt per annum CIP processing plant and associated infrastructure at
the La India Project, Nicaragua.
During 2022, Condor produced a much more robust and conversative
Mineral Resource Estimate ("MRE") of the entire La India Project,
which comprises six separate deposits all of which have potential
to be expanded. The focus has been on strengthening the confidence
of the geological model for the 2022 FS on La India Open Pit. The
update on La India Open Pit includes assay results from infill
drilling, a new lithological, structural and weathering model, a
new depletion model for historic and artisanal mining and an
increase in the cut-off grade to 0.65 g/t gold from 0.50 g/t gold.
The updated Mineral Resource includes the latest operating costs
and bulk density measurements. I am pleased the drilling on the
Cacao deposit increased the MRE in the inferred mineral resource
category by 69% to 101,000 oz gold at 2.5 g/t gold, the
interpretation is that drilling has clipped the top of a fully
preserved epithermal vein system with a strike length of at least
1km with the potential to host over 1 million oz gold.
The MRE update was prepared by SRK Consulting (UK) Limited
("SRK") and uses the terminology, definitions and guidelines given
in the Canadian Institute of Mining, Metallurgy and Petroleum
("CIM") Standards on Mineral Resources and Mineral Reserves (May
2014).
The updated Mineral Resource Estimate is 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 4.3g/t gold for 1,190,000 oz gold in the inferred
mineral resource category. The 2022 FS was conducted on La India
Open Pit which has a Mineral Resource Estimate of 8,487 kt at
3.0g/t gold in for 827,000 oz gold in the indicated mineral
resource category and 893 Kt at 2.4 g/t gold for 69,000 oz gold in
the inferred mineral resource category. The La India Open Pit
Mineral resource is inclusive of a Probable Mineral Reserve of
7.3Mt at 2.56g/t gold for 602,000 oz gold.
Outside the main La India open pit Mineral Reserve (the subject
of the 2022 FS), there is a historical estimate, outlined in the
2021 Preliminary Economic Assessment, of 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 at 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.
In March 2022, the Company announced 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.
During 2022, the Company has been focused on de-risking La India
Project by completing several technical and engineering studies for
the 2022 FS, some of which are a condition of the EP. In addition
to a much more robust and conservative MRE for the entire La India
Project, the following key technical studies were completed:
-- The Tailings Storage Facility ("TSF") and two water retention
ponds have been fully designed and engineered with drawings one
step short of "issued for construction", which is beyond an FS
level detail of design. Tierra Group Inc, of Denver, Colorado
completed site visits and the engineering studies. The study
included 23 geotechnical drill holes and 55 geotechnical test pits
have been completed.
-- The engineering of stormwater attenuation structure at La
Simona has been completed and designed to FS level.
-- Completion of the site wide water balance ("SWWB"), including
the design of a surface water management plan by 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 into, 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 completed. This involved oriented core drilling, followed
by televiewer logging.
-- 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, and the 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.
Highlights: Feasibility Study La India Open Pit only
The 2022 FS 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 six 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
The Company's strategy of a two-stage approach to production is
supported by technical study released in October 2021, Condor Gold
announced the key findings of a technical report on the La India
Gold Project prepared by SRK. This technical report (the "Technical
Report") presented the results of a strategic mining study to
Preliminary Economic Assessment ("PEA") standards. 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 Technical Report was issued in
October 2021 and filed on SEDAR and the Company's websites for
public disclosure to NI 43-101 standards.
Highlights 1.225 Mtpa PEA La India Open Pit + Feeder Pits :
-- IRR of 58% and a post-tax Net Present Value ("NPV") of US$302
million, at a discount rate of 5% and gold price of
US$1,700/oz.
-- Average annual production of 120,000 oz of gold over the initial 6 years of production.
-- 862,000 oz of gold produced over 9-year Life of Mine.
-- Initial capital requirement of US$153 million (including contingency).
-- Payback period 12 months.
-- All-in Sustaining Costs ("AISC") of US$813 per oz gold.
-- Robust Base Case presents an IRR of 48% and a post-tax NPV of
US$236 million at a discount rate of 5% and gold price of
US$1,550/oz.
Highlights: 1.4Mtpa PEA Open Pit + Underground Operations
-- IRR 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.
-- Average annual production of 150,000 oz of gold over the initial 9 years of production.
-- 1,469,000 oz of gold produced over 12-year Life Of Mine.
-- Initial capital requirement of US$160 million (including
contingency), where the underground development is funded through
cash flow.
-- Payback period 12 months.
-- All-in Sustaining Costs of US$958 per oz gold over Life Of Mine.
The Company remains convinced that the La India Project is a
major gold district with the potential for significant future
discoveries. Condor's geologists have identified two major
north-northwest-striking mineralised basement feeder zones
traversing the Project, the "La India Corridor", which hosts 90% of
Condor's gold mineral resource and the "Andrea Los Limones
Corridor". Numerous geophysics, soil geochemistry and surface rock
chips indicate the possibility for further mineralisation along
strike. The updated MRE 2022 for the Cacao deposit increased the
MRE in the inferred mineral resource category by 69% to 101,000 oz
gold at 2.5 g/t gold, the interpretation is that drilling has
clipped the top of a fully preserved epithermal vein system with a
strike length of at least 1km with the potential to host over 1
million oz gold.
The Company continues to enhance its social engagement and
activities in the community, thereby maintaining its social licence
to operate. Condor has strengthened its community team and
stepped-up social activities and engagement programmes. The main
local focus is the drinking water programme, implemented in April
2017. A total of 740 families are currently benefiting from the
program and currently receive five-gallon water dispensers each
week. In May 2021, the Company installed a water purification plant
at a cost of approximately US$200,000 to double the amount of
drinking water provided to the local communities.
In January 2018 Condor initiated 'Involvement Programmes', which
now extend to six groups in the local village to benefit
communities which may be affected by the mine. Taking the Elderly
Group as an example, a committee of six people has been formed. The
Company allocates monthly support to the Elderly Group, which
decides how this money is spent to benefit the elderly in the
Community. Projects include a garden for medicinal herbs which are
made into products which are used by group members and sold to
others in the community.
Condor continues to have very constructive meetings with key
Ministries that granted the EP for the La India, La Mestiza and
America open pits. The Company has been operating in Nicaragua
since 2006 and, as a responsible gold exploration and development
company, continues to add value to the local communities and
environment by generating sustainable socio-economic and
environmental benefits. The new mine would potentially create
approximately 1,000 jobs during the construction period, with
priority to be given to suitable skilled members of the local
community. The upfront capital cost of approximately US$105 million
as detailed in the 2022 FS will have a significant positive impact
on the economy. The Government and local communities will benefit
significantly from future royalties and taxes.
In June 2022 the Company announced it had raised GBP3.25 million
by way of a private placement of new ordinary shares. (See RNS for
details). On 21 December 2022 the Company announced a fundraise of
GBP3.3M. See RNS for details).
Turning to the financial results for the year 2022, the Group's
loss for the year was GBP2,537,459 (2021: GBP2,330,003). The
Company raised a total of GBP5,574,674 million after expenses
during the financial period (2021: GBP11,459,817). The net cash
balance of the Group at 31 December 2022 was GBP2,444,093 (2021:
GBP2,072,046).
On 22 November 2022, the Company announced a strategy update and
informed the market that it had appointed an advisor to sell its
assets.The Board reviewed the Company's options, including going
through a financing and construction phase as a single asset,
single jurisdiction company with no existing gold production, and
concluded that it is in the best interests of the Company and all
stakeholders to sell the assets of the Company to a gold producer
with mine building expertise, thus ensuring a new mine at La India,
a significant investment in the local area, and a regeneration of
the local communities.
The focus for 2023 is to execute on a successful sale of the
assets while maintaining a social license to operate at the fully
permitted La India Project.
M L Child
CEO
Date: 27 March 2023
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2022
Notes Year Ended Year Ended
31.12.22 31.12.21
GBP GBP
Administrative expenses (2,537,459) (2,330,003)
Operating loss 5 (2,537,459) (2,330,003)
Finance income 4 4,899 -
Loss before income tax (2,532,560) (2,330,003)
Income tax expense 6 - -
Loss for the year (2,532,560) (2,330,003)
============ ============
Other comprehensive income:
Other comprehensive income to be reclassified to profit or loss in
subsequent periods:
Currency translation differences 3,232,610 (119,937)
------------ ------------
Other comprehensive (loss) / income for the year 3,232,610 (119,937)
============ ============
Total comprehensive loss for the year 700,050 (2,449,940)
============ ============
Loss attributable to:
Non-controlling interest - -
Owners of the parent (2,532,560) (2,330,003)
------------ ------------
(2,532,560) (2,330,003)
============ ============
Total comprehensive loss attributable to:
Non-controlling interest - -
Owners of the parent 700,050 (2,449,940)
------------ ------------
700,050 (2,449,940)
============ ============
Earnings per share expressed in pence per share:
Basic and diluted (in pence) 8 (1.60) (1.70)
============ ============
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
Notes 31.12.22 31.12.21
GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 9 - 7,473,433
Intangible assets 10 - 28,100,980
- 35,574,413
------------- -------------
CURRENT ASSETS
Assets classified as held for sale 11 42,937,116 -
Trade and other receivables 13 916,963 775,693
Cash and cash equivalents 2,444,093 2,072,046
46,298,172 2,847,739
------------- -------------
TOTAL ASSETS 46,298,172 38,422,152
============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 15 406,207 248,176
------------- -------------
TOTAL LIABILITIES 406,207 248,176
============= =============
NET CURRENT ASSETS 45,891,965 2,599,563
------------- -------------
NET ASSETS 45,891,965 38,173,976
============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital 16 31,747,809 29,326,143
Share premium 46,681,635 42,528,627
Exchange difference reserve 750,572 (2,482,038)
Retained earnings (33,288,051) (31,198,756)
45,891,965 38,173,976
============= =============
Non-controlling interest - -
TOTAL EQUITY 45,891,965 38,173,976
============= =============
The financial statements were approved and authorised for issue
by the Board of directors on 27 March 2023 and were signed on its
behalf by:
M L Child - Chief Executive Officer
Company No: 05587987
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
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
2021 23,732,526 37,175,626 (2,362,101) (29,381,952) 29,164,099 - 29,164,099
------------ ---------- ----------- ------------ ----------- --------------- -----------
Comprehensive
income:
Loss for the
year - - - (2,330,003) (2,330,003) - (2,330,003)
Other
comprehensive
income:
Currency
translation
differences - - (119,937) - (119,937) - (119,937)
Total
comprehensive
income - - (119,937) (2,330,003) (2,449,940) - (2,449,940)
------------ ---------- ----------- ------------ ----------- --------------- -----------
New shares
issued 5,593,617 5,366,126 - - 10,959,743 - 10,959,743
Issue costs - (13,125) - - (13,125) - (13,125)
Share based
payment - - - 513,199 513,199 - 513,199
Total
transactions
with owners,
recognised
directly in
equity 5,593,617 5,353,001 - 513,199 11,459,817 - 11,459,817
------------ ---------- ----------- ------------ ----------- --------------- -----------
At 31 December
2021 29,326,143 42,528,627 (2,482,038) (31,198,756) 38,173,976 - 38,178,976
------------ ---------- ----------- ------------ ----------- --------------- -----------
Comprehensive
income:
Loss for the
year - - - (2,532,560) (2,532,560) - (2,532,560)
Other
comprehensive
income:
Currency
translation
differences - - 3,232,610 - 3,232,610 - 3,232,610
Total
comprehensive
income - - 3,232,610 (2,532,560) 700,050 - 700,050
------------ ---------- ----------- ------------ ----------- --------------- -----------
New shares
issued 2,421,666 4,168,008 - - 6,589,674 - 6,589,674
Issue costs - (15,000) - - (15,000) - (15,000)
Share based
payment - - - 443,265 443,265 - 443,265
Total
transactions
with owners,
recognised
directly in
equity 2,421,666 4,153,008 - 443,265 7,017,939 - 7,017,939
------------ ---------- ----------- ------------ ----------- --------------- -----------
At 31 December
2022 31,747,809 46,681,635 750,572 (33,288,051) 45,891,965 - 45,891,965
------------ ---------- ----------- ------------ ----------- --------------- -----------
Share premium reserve represents the amounts subscribed for
share capital in excess of the nominal value of the shares issued,
net of cost of issue.
The exchange difference reserve is a separate component of
Shareholders' equity in which the exchange differences, arising
from translation of the results and financial positions of foreign
operations that are included in the Group's Consolidated Financial
Statements, are reported.
Retained earnings represent the cumulative net gains and losses
recognised in the consolidated income statement.
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
Notes 31.12.22 31.12.21
GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 9 - 4,309,955
Investments 11 751,977 751,977
Other receivables 13 43,500,630 39,511,480
-------------- --------------
44,252,607 44,573,412
-------------- --------------
CURRENT ASSETS
Assets classified as held for
sale 11 4,474,402 -
Trade and other receivables 13 333,101 33,329
Cash and cash equivalents 2,407,187 1,956,467
-------------- --------------
7,214,690 1,989,796
-------------- --------------
TOTAL ASSETS 51,467,297 46,563,208
============== ==============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 15 249,357 169,456
-------------- --------------
TOTAL LIABILITIES 249,357 169,456
-------------- --------------
NET CURRENT ASSETS 6,965,333 1,820,340
-------------- --------------
NET ASSETS 51,217,940 46,393,752
============== ==============
SHAREHOLDERS' EQUITY
Called up share capital 16 31,747,809 29,326,143
Share premium 46,681,635 42,528,627
Retained earnings (27,211,504) (25,461,018)
TOTAL EQUITY 51,217,940 46,393,752
============== ==============
The loss for the financial year dealt with in the financial
statement of the parent company was GBP2,193,751 (2021:
GBP1,970,977).
The financial statements were approved and authorised for issue
by the Board of directors on 27 March 2023 and were signed on its
behalf by:
M L Child - Chief Executive Officer
Company No: 05587987
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2022
Share Share premium Retained Total
capital earnings
GBP GBP GBP GBP
At 1 January 2021 23,732,526 37,175,626 (24,003,240) 36,904,912
----------- -------------- ------------- ------------
Comprehensive income:
Loss for the period - - (1,970,977) (1,970,977)
Total comprehensive
income - - (1,970,977) (1,970,977)
----------- -------------- ------------- ------------
New shares issued 5,593,617 5,366,126 - 10,959,743
Issue costs - (13,125) - (13,125)
Share based payment - - 513,199 513,199
Total transactions with
owners recognised directly
in equity 5,593,617 5,353,001 513,199 11,459,817
----------- -------------- ------------- ------------
At 31 December 2021 29,326,143 42,528,627 (25,461,018) 46,393,752
----------- -------------- ------------- ------------
Comprehensive income:
Loss for the period - - (2,193,751) (2,193,751)
Total comprehensive
income - - (2,193,751) (2,193,751)
----------- -------------- ------------- ------------
New shares issued 2,421,666 4,168,008 - 6,589,674
Issue costs - (15,000) - (15,000)
Share based payment - - 443,265 443,265
Total transactions with
owners recognised directly
in equity 2,421,666 4,153,008 443,265 7,017,939
----------- -------------- ------------- ------------
At 31 December 2022 31,747,809 46,681,635 (27,211,504) 51,217,940
----------- -------------- ------------- ------------
Share premium reserve represents the amounts subscribed for
share capital in excess of the nominal value of the shares issued,
net of cost of issue.
Retained earnings represent the cumulative net gains and losses
recognised in the Company's income statement.
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2022
Year Ended Year-Ended
31.12.22 31.12.21
GBP GBP
Cash flows from operating activities
Loss before tax (2.532,560) (2,330,003)
Share based payment 443,265 513,199
Depreciation 68,315 88,264
Exchange differences 3,187 78,873
Finance income (4,899) -
(2,022,692) (1,649,667)
(Increase) / Decrease in trade
and other receivables (141,270) (661,284)
Increase / (Decrease) in trade
and other payables 158,031 (18,236)
Net cash used in operating activities (2,005,931) (2,329,187)
------------ ------------
Cash flows from investing activities
Purchase of tangible fixed assets (446,853) (2,370,879)
Purchase of intangible fixed
assets (3,754,742) (6,188,725)
Interest received 4,899 -
Net cash used in investing activities (4,196,696) (8,559,604)
------------ ------------
Cash flows from financing activities
Net proceeds from share issue 6,574,674 8,801,446
Net cash from financing activities 6,574,674 8,801,446
------------ ------------
Increase / (Decrease) in cash
and cash equivalents 372,047 (2,087,345)
------------ ------------
Cash and cash equivalents at
beginning of year 2,072,046 4,159,391
Cash and cash equivalents at
end of year 2,444,093 2,072,046
============ ============
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2022
Year Ended Year Ended
31.12.22 31.12.21
GBP GBP
Cash flows from operating activities
Loss before tax (2,193,751) (1,970,977)
Share based payment 443,265 513,199
Finance income (4,899) -
(1,755,385) (1,457,778)
(Increase) / Decrease in trade
and other receivables (299,772) (2,673)
Increase / (Decrease) in trade
and other payables 79,901 (14,330)
Net cash used in operating activities (1,975,256) (1,474,781)
------------ ------------
Cash flows from investing activities
Purchase of tangible fixed assets (164,447) (2,164,783)
Interest received 4,899 -
Loans to subsidiaries (3,989,150) (7,250,989)
Net cash used in investing activities (4,148,698) (9,415,772)
------------ ------------
Cash flows from financing activities
Proceeds from share issue 6,574,674 8,801,446
Net cash from financing activities 6,574,674 8,801,446
------------ ------------
Increase / (Decrease) in cash
and cash equivalents 450,720 (2,089,107)
------------ ------------
Cash and cash equivalents at
beginning of year 1,956,467 4,045,574
Cash and cash equivalents at
end of year 2,407,187 1,956,467
============ ============
Basis of preparation
The financial statements have been prepared in accordance with
UK-adopted International Financial Reporting Standards (IFRS and
IFRIC interpretations) ("IFRS") in force at the reporting date, and
their interpretations issued by the International Accounting
Standards Board ("IASB"), and with IFRS and their interpretations
issued by the IASB. The parent company financial statements have
also been prepared in accordance with those parts of the Companies
Act 2006 applicable to companies reporting under IFRS. The
financial statements have been prepared under the historical cost
convention except for the revaluation of certain financial
instruments that are measured at fair value.
The financial information set out in this announcement does not
constitute the Group's statutory financial statements for the year
ended 31 December 2022 or 2021, but is derived from these financial
statements. The financial statements for the year ended 31 December
2021 have been delivered to the Registrar of Companies. The
financial statements for the year ended 31 December 2022 will be
forwarded to the Registrar of Companies following the Company's
Annual General Meeting. The Auditors have reported on these
financial statements; their reports were unqualified and did not
contain statements under Section 498(2) or (3) of the Companies Act
2006.
Going concern
The Group reviews its going concern status, via comparisons to
budgets, cash flow forecasts, and access to further financing. At
the balance sheet date the Group had GBP2,444,093 of cash. In
common with many exploration companies, the Company raises finance
for its exploration and appraisal activities in discrete tranches
to finance its activities for limited periods only. The Directors
have identified that further funding will be required during 2022
for working capital purposes and to construct the processing
facility at La India Project. The Directors are confident that the
Company will be able to raise these funds however there is no
binding agreement in place to date. In addition, the timing and
quantum of any asset sale is currently uncertain. These conditions
may cast doubt on the Group and Company's ability to continue as a
going concern. It is not the Company's intention to cease trading
after the potential sale of the Nicaraguan assets.
The Directors have prepared a cash flow forecast which assumes
that the Group and Company is not able to raise additional funds
within the going concern period and if that was the case, the
forecasts demonstrate that austerity measures can be implemented to
reduce the Group and Company's cash outflows to the minimal
contracted and committed expenditure while also maintaining the
Group's licences and permits. These forecasts assume that Directors
and Key management personnel salaries are deferred and/or reduced
as part of the austerity measures - notwithstanding the above,
further funding would nonetheless be required in order to continue
into operational existence for at least 12 months from the date of
approval of this report. Based on their assessment of the financial
position, the Directors however have a reasonable expectation that
the Group and Company will be able to continue in operational
existence for the next twelve months and continue to adopt the
going concern basis of accounting in preparing these financial
statements.
- 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 Ewan Leggat
LLP +44 (0) 20 3470 0470
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. 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 document relating to the La
India Project of a scientific or technical nature has been
summarized or extracted from the technical report entitled "Condor
Gold Technical Report on the La India Gold Project, Nicaragua",
dated October 2022 (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), Fernando Rodrigues, Principal Consultant
(Mining), Eric Olin, Principal Consultant (Metallurgy) Benjamin
Parsons, Principal Consultant (Resource Geology), each of SRK
Consulting (UK) Limited, each of whom is an independent Qualified
Person as such term is defined in 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: Developmment 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
forwardlooking 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 CONDOR
GOLD PLC. Registered in England and Wales No 5587987 Registered
Office: 7/8 Innovation Place, Douglas Drive, Godalming, Surrey, GU7
1JX the fiscal year ended December 31, 2020 dated March 31, 2021,
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
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END
FR EAPDXASFDEFA
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March 28, 2023 02:00 ET (06:00 GMT)
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