TIDMCNR
RNS Number : 0128G
Condor Gold PLC
13 March 2020
Condor Gold plc
22a St James's Square
London
SW1Y 4JH
Tel: +44 (0) 207 493 2784
13 March 2020
Condor Gold Plc
("Condor" or the "Company")
Condor Gold plc announces its audited results for the year ended
31 December 2019
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce its
results for the year ended 31 December 2019 ("Annual Report and
Accounts"). A copy of the Annual Report and Accounts, along with a
Notice of AGM, will be posted to Shareholders in due course and a
further announcement made at that stage which will include details
of the time and date for the AGM. A copy of the Annual Report and
Accounts is available on the Company's website, at
www.condorgold.com and on Sedar at www.Sedar.com . Extracts are set
out below.
Highlights for the year ended 31 December 2019:
-- In January 2019, Condor announced a Mineral Resource update
on La India Project totalling 9.85 million tonnes ("Mt") at 3.6
grams per tonne ("g/t") gold for 1,140,000 oz gold in the Indicated
category and 8.48Mt at 4.3g/t gold for 1,179,000 oz gold in the
Inferred category;
-- This includes an open pit Mineral Resource of 8.58 Mt at a
grade of 3.3 g/t gold, for 902,000 oz gold in the Indicated
category and 3.01 Mt at a grade of 3.0 g/t gold, for 290,000 oz
gold in the Inferred category, together with an underground Mineral
Resources of 1.27 Mt at a grade of 5.8 g/t gold, for 238,000 oz
gold in the Indicated category and 5.47 Mt at a grade of 5.1 g/t
gold, for 889,000 oz gold in the Inferred category;
-- Of note is the new open pit Mineral Resource on Mestiza of 92
thousand tonnes ("Kt") at a grade of 12.1 g/t for 36,000 oz
contained gold in the Indicated category and 341 Kt at a grade of
7.7 g/t gold for 85,000 oz contained gold in the Inferred category.
The four satellite open pits outside the main, permitted La India
open pit have combined open pit resources of 206Kt at 9.9 g/t gold
for 66,000 oz gold in the Indicated category and 2.127 Mt at 3.23
g/t gold for 221,000 oz gold in the Inferred category;
-- In February 2019, the Company raised GBP1.75 million by way
of a private placement of new Ordinary Shares;
-- In March 2019, the Company announced it was permitting the
Mestiza and America satellite feeder pits, which have the potential
to increase production to 120,000 oz gold per annum for a seven
year life of mine. The Mestiza and America open pits have, in
aggregate, 206 Kt at a grade of 9.9 g/t (66,000 oz contained gold)
in the Indicated category and 1,018 Kt at 4.6 g/t (152,000 oz
contained gold) in the Inferred category;
-- In July 2019, a 132km(2), 25-year exploration and
exploitation concession, the "Cerro Los Cerritos concession" was
awarded. It is adjacent to current La India concession package and
potentially hosts the strike extension of the gold mineralisation
at La India. It expands La India Project concession area to 588
km(2) ;
-- Additional private placement closed in July of 20,192,520 new
shares at a price of 20p per share to raise GBP4,038,504 including
a Directors and CFO subscription for 6,350,000 shares and 9,842,520
shares subscribed by Nicaragua Milling Company Ltd.
-- Additional positive metallurgical test results on La India
and satellite deposits announced in November;
-- In November 2019, Condor submitted Environmental and Social
Impact Assessments ("ESIAs") to the Ministry of Environment and
Natural Resources ("MARENA") for the Environmental Permits for the
development and extraction of contained gold from the America and
Mestiza open pits;
-- In December 2019, Condor sold the non-core Potrerillos
exploration and exploitation concession to Nicoz Resources S.A., a
wholly-owned subsidiary of Mako Mining Corp. (TSX-V: MKO) for a
gross cash consideration of US$ 600,000.
-- Post Period Highlights
-- In January 2020, appointed SP Angel Corporate Finance LLP as sole Broker to the Company;
-- Extension granted until 27 July 2021 to complete the
conditions of the key Environmental Permit to develop and extract
ore from La India open pit;
-- In March 2020, the Company announced a high-grade open pit
mining scenario as part of on-going mining dilution studies.
Chairman's Statement
Dear Shareholder,
I am pleased to present Condor Gold Plc's ("Condor", the
"Company" or the "Group", www.condorgold.com ) annual report for
the 12-month financial year to 31 December 2019. The Company's twin
strategy remains the construction and operation of a base case
processing plant with capacity of up to 2,800 tonnes per day
("tpd") capable of producing approximately 100,000 oz of gold per
annum, increasing this production capacity, and proving a major
Gold District at the 588km(2) La India Project, in Nicaragua.
The Company's main focus during 2019 has been on fulfilling the
conditions of an Environmental Permit granted in August 2018 by the
Ministry of the Environment and Natural Resources ("MARENA") for
the development, construction and operation of an open pit mine, a
2,800 tpd or 1.0 Mt per annum CIL processing plant and associated
infrastructure at the La India Project, Nicaragua. The permitted La
India open pit is estimated to produce between 80,000 oz to 100,000
oz gold per annum or a total of 600,000 oz gold over a 6 to 7-year
period.
In January 2019 Condor announced an updated Mineral Resource on
the La India Project totalling 9.85 Mt at 3.6 g/t gold for
1,140,000 oz gold in the Indicated category and 8.48 Mt at 4.3 g/t
gold for 1,179,000 oz gold in the Inferred category. The Mineral
Resource update includes 8,222 m of drilling since the Mineral
Resource update in September 2014. The new Mineral Resource
Estimate 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
total open pit Mineral Resource is 8.58 Mt at a grade of 3.3 g/t
gold, for 902,000 oz gold in the Indicated category and 3.01 Mt at
a grade of 3.0 g/t gold, for 290,000 oz gold in the Inferred
category. Total underground Mineral Resources are 1.27 Mt at a
grade of 5.8 g/t gold, for 238,000 oz gold in the Indicated
category and 5.47 Mt at a grade of 5.1 g/t gold, for 889,000 oz
gold in the Inferred category.
Of note also is the new open pit Mineral Resource on Mestiza of
92 Kt at a grade of 12.1 g/t for 36,000 oz contained gold in the
Indicated category and 341 Kt at a grade of 7.7 g/t gold for 85,000
oz contained gold in the Inferred category. The four satellite open
pits outside the main, permitted La India open pit have combined
open pit resources of 206 Kt at 9.9 g/t gold for 66,000 oz gold in
the Indicated category and 2.127 Mt at 3.23 g/t gold for 221,000 oz
gold in the Inferred category.
Considerable progress has been made completing the conditions of
the Environmental Permit for the development of La India open pit.
The mine schedule, waste dump schedule, water and sewage management
studies for the processing plant offices and accommodation have
been completed. Tierra Group Inc of Denver, USA are fully
engineering the Tailing Storage Facility and completing designs for
the surface water management system required for the operation of
the mine. Condor has doubled the land acquisition team; four
in-house lawyers and several members of the social team are working
on acquiring the land required for the mine site infrastructure.
Offers have been made to all landowners, over 50% have accepted.
Designs for the fuel service station for back-up power to support
the processing plant are almost finalised. National grid
electricity pylons are located 700 meters from the processing
plant. The national electricity company has confirmed that 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. An updated forestry inventory has been
completed. The compensation plan under the local law is to replace
every tree removed with 10 new trees - this study has also been
completed. In the last 12 months, Condor initiated a tree nursery
which currently has approximately 6,200 trees.
In April 2019, the Company announced it had conducted additional
metallurgical tests. B2 Gold's personnel took two 23 kg samples
from within the La India open pit and conducted metallurgical tests
at the El Limon and La Libertad mine laboratories. The high-grade
samples, producing an average head grade of 12.1 g/t gold, were
taken from the principal La India Vein and produced exceptional
gold recoveries of 95.4%. It is invaluable to conduct metallurgical
test work at two nearby producing gold mines whose laboratories are
set up to replicate the metallurgical recoveries at the mines. This
assists Condor in deciding on a final mine design and metallurgical
process as the La India Project progresses to the construction
phase.
In November 2019, Condor announced that it had received the
final results of further metallurgical tests on La India, Mestiza
and America deposits from SGS Laboratories, Lakefield, Ontario.
Condor has been actively pursuing the addition of the open-pit
portions of the America and Mestiza deposits (the "Satellite Pits")
to the existing planned and permitted production from the La India
open pit. During August 2019, Condor assembled six new master
composites from La India, America and Mestiza deposits for
grindability and leaching tests. Additionally, four variability
composites from La India were selected to refine the understanding
of the power consumption and abrasion characteristics of the La
India ores. In summary, the results were:
-- The new SGS results corroborate the initial findings on the
abrasion, ball mill and SAG mill work indices as presented in the
2014 prefeasibility study ("PFS") that was conducted by
Inspectorate (subsequently acquired by Bureau Veritas). The SGS
results, while slightly different than the 2014 PFS values, are
within the same statistical range.
-- Gold extraction from the La India samples confirm the results
of the PFS study, demonstrating that the estimated average gold
recovery of 91% from the PFS remain valid for the La India
deposit.
-- Gold extraction from the America and Mestiza samples are similarly comparable to the original metallurgical results, and clearly show that the satellite pits will be amenable to treatment through the proposed CIL or CIP flowsheet.
-- The Abrasion / SAG mill / Bond ball mill work indices suggest
that the open pit ores from America and Mestiza, while still hard,
are not as hard or as abrasive as the La India ores.
The additional metallurgical tests include grinding and abrasion
studies for the America and Mestiza satellite pits that were not
included in the metallurgical tests which formed part of the PFS on
La India open pit. The studies are essential as we finalise the
size of the processing plant ahead of a construction decision. Both
satellite pit ores are less abrasive than the La India ore, which
could be reflected in lower costs for wear materials when
processing these ores. The most recent iteration of metallurgical
studies represents the latest of Condor's efforts to expand the
district-wide potential of our concession package, while further
de-risking the Project. The consistent amenability of the district
ores to the planned CIP processing plant lends further evidence
that the Project can achieve higher throughput for a longer period
of time than has been considered in our previous studies.
On 21 November 2019, Condor submitted Environmental and Social
Impact Assessments ("ESIAs") to MARENA for the Environmental
Permits for the development and extraction of contained gold from
the America and Mestiza open pits . The ESIAs are very detailed,
containing 18 technical, environmental and social studies and are
each approximately 600 pages. Permitting the high-grade Mestiza and
America satellite feeder pits has the potential to increase annual
production from open pit material by 50% (compared to the PFS) to
120,000 oz gold p.a. for a seven year life of mine. The feeder pits
have in aggregate 206 thousand tonnes ("Kt") at a grade of 9.9 g/t
(66,000 oz contained metal) in the Indicated category and 1,018Kt
at 4.6 g/t (152,000 oz contained gold in the Inferred category).
The addition of the feeder pits will mean over 1 million oz gold
mineral resource will be permitted for production. The feeder pits
complement the main, fully permitted La India open pit with Mineral
Reserves of 6.9 million tonnes ("M tonnes" or "Mt") at 3.0 g/t for
675,000 oz gold, which demonstrates annual production of 79,300 oz
gold and lower quartile all-in-sustaining cash costs ("AISC") of
US$690 per oz gold. The higher grade feeder pits have the potential
to materially enhance the Project NPV, IRRs, reduce the payback
period and reduce the already low AISC as detailed in the PFS.
The intention is to permit the underground Mineral Resource
after open pit mining begins. Total underground Mineral Resources
are 1.27 Mt at 5.8 g/t gold, for 238,000 oz gold in the Indicated
category and 5.47 Mt at 5.1 g/t gold, for 889,000 oz gold in the
Inferred category.
Exploration activities during 2019 took second place to the key
objective of completing the technical studies which are a condition
of the Environmental Permit for La India open pit. Nonetheless,
during 2019 our geologists continued their efforts to prove a 5.0
Moz gold district. It is worth noting that the re-log of 207 drill
holes at La India and America was completed to help understand the
shape of ore shoots and identify new ones. New wireframes have been
constructed, and new drill targets generated. These are both down
dip of known high grade 'shoots' and an exciting new target has
been identified in the hanging wall of the America vein set.
Secondly, Cacao (about 6.0 km east of La India) is a top
priority for drilling. It has the best potential to add ounces to
the global resource. Mapping and drilling demonstrate it has a long
strike length (> 3.0 km) and that the entire epithermal system
is preserved . Drill intercepts reported in 2017 include 7.85 m at
3.75 g/t gold, 7.85 m at 2.95 g/t gold and 17.1 m at 1.74 g/t gold.
The vein becomes more like La India vein at depth and is as thick,
or thicker.
Thirdly, the Andrea East target (about 8.0 km north of La India)
is now drill-ready and shows excellent grades at surface. It is a
high priority for drilling. Trenches along it demonstrate
significant width and grades. Best intercepts are observed at
LICT15 (4.0 m at 1.79 g/t gold), LICT20 (5.6 m at 1.65 g/t gold)
and LICT21 (3.0 m at 3.6 g/t gold). Grab samples give up to 9.7 g/t
gold. Vein textures are very similar to La India and very
encouraging.
Lastly, Condor sampled an average grade of over 13.5 g/t gold
from 41 artisanal mining sites on the America and Mestiza vein sets
which is a further reminder that the La India Project is a
high-grade gold deposit. There are so many veins in the district
that the Company is effectively 'drowning' in targets and a major
issue is how to prioritise exploration. As the land package,
mapping and sampling coverage grow, it allows us to understand the
big picture. We can then focus on those targets with the best
chance of adding ounces to the permitted mine schedule.
In July 2019, the Government of Nicaragua granted Condor Gold
the 132.1 km(2) Cerro Los Cerritos concession, a major exploration
and exploitation concession adjacent to the La India Project. This
confirms that the government of the country is pro-mining, open for
business and supportive of Condor. It follows the grant of the
142.6 km(2) Las Cruces concession in December 2018. The Cerro Los
Cerritos concession expands the La India Project area by 29%. Cerro
Los Cerritos was available for grant by the government under a
25-year exploration and exploitation concession. We remain
convinced that the La India Project is a major gold district with
the potential to host over 5 million ounces of gold. 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". Both mineralised basement
feeder zones can be projected north-northwest into Cerro Los
Cerritos. Numerous geophysics, soil geochemistry and surface rock
chips indicate the possibility for further mineralisation along
strike.
As a British company, Condor believes in, and promotes,
constructive dialogue for a peaceful resolution of the current
political uncertainty in Nicaragua. Condor continues to have very
constructive meetings with key Ministries that granted the
Environmental Permit for La India open pit and are overseeing the
application for the Environmental Permit for the development and
extraction of ore from the Mestiza and America open pits. During
2019, the Company has focused on supporting its 80 direct and
indirect employees, and their families, who confirmed their desire
to continue to work and maintain stability within their
communities. Condor 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 given to the local
community. The upfront capital cost of approximately US$110 million
would have a significant positive impact on the economy. The
Government and local communities would benefit significantly from
future royalties and taxes.
In November 2019, Mr Ian Stalker joined Condor as a
non-executive Director. As the Company moves towards a construction
decision for new gold mine at Mina La India, Ian's significant
construction and operating experience in a number of producing gold
mines world-wide will be an invaluable guide to Condor Gold. Ian
Stalker is a senior international mining executive with over 45
years of experience in resource development. He has directed over
twelve major gold, base metal, uranium and industrial minerals
projects at various phases, from initial exploration drilling to
production.
In December 2019, Condor sold the non-core Potrerillos
exploration and exploitation concession to Nicoz Resources S.A., a
wholly-owned subsidiary of Mako Mining Corp. (TSX-V: MKO) for a
gross cash consideration of US$ 600,000.
Turning to the financial results for the year 2019, the Group's
loss for the year was GBP1,542,781 (2018: GBP2,299,329). The
Company raised GBP5.8 million during the financial period. The net
cash balance of the Group at 31 December 2019 was GBP2,903,556
(2018: GBP220,975).
The key objective for 2020 is to start the site preparation
before year end. This will involve completing the purchase of all
surface rights within the mine site infrastructure (approximately
50% has been purchased to date) and completing the technical
studies required by MARENA ahead of a construction decision. Offers
have been made for all the surface rights. Production from the
permitted La India open pit is expected to be approximately 600,000
oz gold. In November 2019, the Company submitted the ESIAs applying
for the Environmental Permit to develop and extract ore from the
high grade America and Mestiza open pits. This has the potential to
increase production to 120,000 oz gold per annum (compared to the
PFS) for a seven year life of mine. The Mestiza and America open
pits have, in aggregate, 206 Kt at a grade of 9.9 g/t (66,000 oz
contained gold) in the Indicated category and 1,018 Kt at 4.6 g/t
(152,000 oz contained gold) in the Inferred category.
Simultaneously, the Company has conducted technical mining studies
to see if it is possible to generate production much earlier by
mining a "mini pit" within the permitted La India open pit and
trucking the mineralised ore to a nearby processing plant to be
processed. However, at the time of writing it is uncertain whether
a toll milling agreement can be reached. There are significant
benefits of transitioning Condor from an exploration and
development company to a gold producer in the near future. The most
obvious for shareholders is the generation of revenues and cashflow
and the experience Condor will gain from managing contract miners
together with bulk metallurgical tests and an advanced
understanding of the geology. Maintaining a social licence to
operate is highly important and Condor will continue with its
extensive social programmes in the local community. The historic
mine at Mina La India closed in 1956, resulting in a high level of
poverty in the village of La Cruz de la India. Adding a higher
average open pit grade of 4.7 g/t gold from the satellite feeder
pits to the mill feed from the permitted La India open pit of 3.0
g/t gold will enhance the Project NPV, IRRs, reduce the payback
period and reduce the already low All In Sustaining Cash Cost of
US$690 per oz gold as detailed in the PFS.
M L Child
Chairman & CEO
Date: 12 March 2020
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2019
Year Year Ended
Ended 31.12.18
31.12.19
GBP GBP
Administrative expenses (1,529,348) (2,067,413)
Loss on disposal of subsidiary - (234,210)
Operating loss (1,529,348) (2,301,623)
Finance income 4,567 2,294
Loss before income tax (1,524,781) (2,299,329)
Income tax expense - -
Loss for the year (1,524,781) (2,299,329)
============= ============
Other comprehensive income:
Other comprehensive income to
be reclassified to profit or loss
in subsequent periods:
Currency translation differences (1,706,724) 144,006
------------- ------------
Other comprehensive (loss) / income
for the year (1,706,724) 144,006
============= ============
Total comprehensive loss for the
year (3,231,505) (2,155,323)
============= ============
Loss attributable to:
Non-controlling interest - -
Owners of the parent (1,524,781) (2,299,329)
------------- -------------
(1,524,781) (2,229,329)
============= =============
Total comprehensive loss attributable
to:
Non-controlling interest - -
Owners of the parent (3,231,505) (2,155,323)
------------- -------------
(3,231,505) (2,155,323)
============= =============
Earnings per share expressed in
pence per share:
Basic and diluted (in pence) (1.86) (3.49)
============= =============
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
31.12.19 31.12.18
GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 585,950 211,064
Intangible assets 20,909,637 20,644,243
21,495,587 20,855,307
------------- -------------
CURRENT ASSETS
Trade and other receivables 143,279 219,077
Cash and cash equivalents 2,903,556 220,975
3,046,835 440,052
------------- -------------
TOTAL ASSETS 24,542,422 21,295,359
============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 757,102 251,316
------------- -------------
TOTAL LIABILITIES 757,102 251,316
============= =============
NET CURRENT ASSETS 2,289,733 188,736
------------- -------------
NET ASSETS 23,785,320 21,044,043
============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital 18,932,704 13,435,868
Share premium 33,953,693 33,662,309
Exchange difference reserve (746,933) 959,791
Retained earnings (28,354,144) (27,013,925)
23,785,320 21,044,043
============= =============
Non-controlling interest - -
TOTAL EQUITY 23,785,320 21,044,043
============= =============
The financial statements were approved and authorised for issue
by the Board of directors on 12 March 2020 and were signed on its
behalf by:
M L Child - Chairman
Company No: 05587987
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2019
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 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 year - - - (2,299,329) (2,299,329) - (2,299,329)
Other
comprehensive
income:
Currency
translation
differences - - 144,006 - 144,006 - 144,006
Total
comprehensive
income - - 144,006 (2,299,329) (2,155,323) - (2,155,323)
------------ ---------- ----------- ------------ ----------- --------------- -----------
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 - - - 544,613 544,613 - 544,613
Recycle through
profit
or loss on
disposal
of subsidiary - - 234,210 - 234,210 - 234,210
Transactions with
non-controlling
interest - - - (85,056) (85,056) 85,056 -
------------ ---------- ----------- ------------ ----------- --------------- -----------
Total transactions
with owners,
recognised
directly in
equity 1,162,791 1,236,260 234,210 459,557 3,092,818 85,056 3,177,874
------------ ---------- ----------- ------------ ----------- --------------- -----------
At 31 December
2018 13,435,868 33,662,309 959,791 (27,013,925) 21,044,043 - 21,044,043
------------ ---------- ----------- ------------ ----------- --------------- -----------
Comprehensive
income:
Loss for the year - - - (1,524,781) (1,524,781) - (1,524,781)
Other
comprehensive
income:
Currency
translation
differences - - (1,706,724) - (1,706,724) - (1,706,724)
Total
comprehensive
income - - (1,706,724) (1,524,781) (3,231,505) - (3,231,505)
------------ ---------- ----------- ------------ ----------- --------------- -----------
New shares issued 5,496,836 323,934 - - 5,820,770 - 5,820,770
Issue costs - (32,550) - - (32,550) - (32,550)
Share based
payment - - - 184,562 184,562 - 184,562
Total transactions
with owners,
recognised
directly in
equity 5,496,836 291,384 - 184,562 5,972,782 - 5,972,782
------------ ---------- ----------- ------------ ----------- --------------- -----------
At 31 December
2019 18,932,704 33,953,693 (746,933) (28,354,144) 23,785,320 - 23,785,320
------------ ---------- ----------- ------------ ----------- --------------- -----------
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
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
31.12.19 31.12.18
GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 15 515
Investments 751,977 751,977
Other receivables 27,017,925 24,394,310
-------------- --------------
27,769,917 25,146,802
-------------- --------------
CURRENT ASSETS
Other receivables 22,850 22,324
Cash and cash equivalents 2,336,235 191,166
-------------- --------------
2,359,085 213,490
-------------- --------------
TOTAL ASSETS 30,129,002 25,360,292
============== ==============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 180,074 182,561
-------------- --------------
TOTAL LIABILITIES 180,074 182,561
-------------- --------------
NET CURRENT ASSETS 2,179,011 30,929
-------------- --------------
NET ASSETS 29,948,928 25,177,731
============== ==============
SHAREHOLDERS' EQUITY
Called up share capital 18,932,704 13,435,868
Share premium 33,953,693 33,662,309
Retained earnings (22,937,469) (21,920,446)
TOTAL EQUITY 29,948,928 25,177,731
============== ==============
The loss for the financial year dealt with in the financial
statement of the parent company was GBP1,201,585 (2018:
GBP1,531,642).
The financial statements were approved and authorised for issue
by the Board of directors on 12 March 2020 and were signed on its
behalf by:
M L Child - Chairman
Company No: 05587987
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2019
Share Share premium Retained Total
capital earnings
GBP GBP GBP GBP
At 1 January 2018 12,273,077 32,426,049 (20,933,417) 23,765,709
----------- -------------- ------------- ------------
Comprehensive income:
Loss for the period - - (1,531,642) (1,531,642)
Total comprehensive
income - - (1,531,642) (1,531,642)
----------- -------------- ------------- ------------
New shares issued 1,162,791 1,337,210 - 2,500,001
Issue costs - (100,950) - (100,950)
Share based payment - - 544,613 544,613
Total transactions with
owners recognised directly
in equity 1,162,791 1,236,260 544,613 2,943,664
----------- -------------- ------------- ------------
At 31 December 2018 13,435,868 33,662,309 (21,920,446) 25,177,731
----------- -------------- ------------- ------------
Comprehensive income:
Loss for the period - - (1,201,585) (1,201,585)
Total comprehensive
income - - (1,201,585) (1,201,585)
----------- -------------- ------------- ------------
New shares issued 5,496,836 323,934 - 5,820,770
Issue costs - (32,550) - (32,550)
Share based payment - - 184,562 184,562
Total transactions with
owners recognised directly
in equity 5,496,836 291,384 184,562 5,972,782
----------- -------------- ------------- ------------
At 31 December 2019 18,932,704 33,953,693 (22,937,469) 29,948,928
----------- -------------- ------------- ------------
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
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2019
Year Ended Year-Ended
31.12.19 31.12.18
GBP GBP
Cash flows from operating activities
Loss before tax (1,524,781) (2,299,329)
Share based payment 184,562 544,613
Recycle through profit or loss
on disposal of subsidiary - 234,210
Depreciation 85,272 77,739
Exchange differences (90,626) (8,318)
Finance income (4,567) (2,294)
(1,350,140) (1,453,379)
Decrease in trade and other
receivables 75,798 101,900
Increase / (Decrease) in trade
and other payables 505,786 (193,715)
Net cash used in operating activities (768,556) (1,545,194)
------------ ------------
Cash flows from investing activities
Purchase of tangible fixed assets (476,255) (15,422)
Purchase of intangible fixed
assets (1,865,395) (1,566,015)
Interest received 4,567 2,294
Net cash used in investing activities (2,337,083) (1,579,143)
------------ ------------
Cash flows from financing activities
Net proceeds from share issue 5,788,220 2,399,051
Net cash from financing activities 5,788,220 2,399,051
------------ ------------
Increase / (Decrease) in cash
and cash equivalents 2,682,581 (725,286)
------------ ------------
Cash and cash equivalents at
beginning of year 220,975 946,261
Cash and cash equivalents at
end of year 2,903,556 220,975
============ ============
CONDOR GOLD PLC
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2019
Year Ended Year Ended
31.12.19 31.12.18
GBP GBP
Cash flows from operating activities
Loss before tax (1,201,585) (1,531,642)
Share based payment 184,562 544,613
Depreciation 500 957
Finance income (4,567) (2,294)
(1,021,090) (988,366)
(Increase) / Decrease in trade
and other receivables (526) 49,068
Decrease in trade and other
payables (2,487) (119,725)
Net cash used in operating activities (1,024,103) (1,059,023)
------------ ------------
Cash flows from investing activities
Interest received 4,567 2,294
Loans to subsidiaries (2,623,615) (2,064,413)
Net cash used in investing activities (2,619,048) (2,062,119)
------------ ------------
Cash flows from financing activities
Proceeds from share issue 5,788,220 2,399,051
Net cash from financing activities 5,788,220 2,399,051
------------ ------------
Increase / (Decrease) in cash
and cash equivalents 2,145,069 (722,091)
------------ ------------
Cash and cash equivalents at
beginning of year 191,166 913,257
Cash and cash equivalents at
end of year 2,336,235 191,166
============ ============
- 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.
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 eighteen 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 technical and scientific information in this press release
has been reviewed, verified and approved by Andrew Cheatle, P.Geo.,
a Non-Executive Director of the Company, who 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 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 Mineral Resources, the
Mineral Reserves and future production rates, plans and
expenditures 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, 2018 dated March 22, 2019, 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.
Technical Glossary
Mineral Resource
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories. An Inferred Mineral Resource has a lower level of
confidence than that applied to an Indicated Mineral Resource. An
Indicated Mineral Resource has a higher level of confidence than an
Inferred Mineral Resource but has a lower level of confidence than
a Measured Mineral Resource.
A Mineral Resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other
geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling.
Material of economic interest refers to diamonds, natural solid
inorganic material, or natural solid fossilized organic material
including base and precious metals, coal, and industrial
minerals.
The term Mineral Resource covers mineralization and natural
material of intrinsic economic interest which has been identified
and estimated through exploration and sampling and within which
Mineral Reserves may subsequently be defined by the consideration
and application of Modifying Factors. The phrase 'reasonable
prospects for eventual economic extraction' implies a judgment by
the Qualified Person in respect of the technical and economic
factors likely to influence the prospect of economic extraction.
The Qualified Person should consider and clearly state the basis
for determining that the material has reasonable prospects for
eventual economic extraction. Assumptions should include estimates
of cutoff grade and geological continuity at the selected cut-off,
metallurgical recovery, smelter payments, commodity price or
product value, mining and processing method and mining, processing
and general and administrative costs. The Qualified Person should
state if the assessment is based on any direct evidence and
testing.
Interpretation of the word 'eventual' in this context may vary
depending on the commodity or mineral involved. For example, for
some coal, iron, potash deposits and other bulk minerals or
commodities, it may be reasonable to envisage 'eventual economic
extraction' as covering time periods in excess of 50 years.
However, for many gold deposits, application of the concept would
normally be restricted to perhaps 10 to 15 years, and frequently to
much shorter periods of time.
Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource
for which quantity and grade or quality are estimated on the basis
of limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
An Inferred Mineral Resource has a lower level of confidence
than that applying to an Indicated Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
An Inferred Mineral Resource is based on limited information and
sampling gathered through appropriate sampling techniques from
locations such as outcrops, trenches, pits, workings and drill
holes. Inferred Mineral Resources must not be included in the
economic analysis, production schedules, or estimated mine life in
publicly disclosed Pre-Feasibility or Feasibility Studies, or in
the Life of Mine plans and cash flow models of developed mines.
Inferred Mineral Resources can only be used in economic studies as
provided under NI 43-101.
There may be circumstances, where appropriate sampling, testing,
and other measurements are sufficient to demonstrate data
integrity, geological and grade/quality continuity of a Measured or
Indicated Mineral Resource, however, quality assurance and quality
control, or other information may not meet all industry norms for
the disclosure of an Indicated or Measured Mineral Resource. Under
these circumstances, it may be reasonable for the Qualified Person
to report an Inferred Mineral Resource if the Qualified Person has
taken steps to verify the information meets the requirements of an
Inferred Mineral Resource.
Indicated Mineral Resource
An Indicated Mineral Resource is that part of a Mineral Resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient detail to
support mine planning and evaluation of the economic viability of
the deposit.
Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing and is sufficient to
assume geological and grade or quality continuity between points of
observation.
An Indicated Mineral Resource has a lower level of confidence
than that applying to a Measured Mineral Resource and may only be
converted to a Probable Mineral Reserve.
Mineralization may be classified as an Indicated Mineral
Resource by the Qualified Person when the nature, quality, quantity
and distribution of data are such as to allow confident
interpretation of the geological framework and to reasonably assume
the continuity of mineralization. The Qualified Person must
recognize the importance of the Indicated Mineral Resource category
to the advancement of the feasibility of the project. An Indicated
Mineral Resource estimate is of sufficient quality to support a
Pre-Feasibility Study which can serve as the basis for major
development decisions.
Mineral Reserve
Mineral Reserves are sub-divided in order of increasing
confidence into Probable Mineral Reserves and Proven Mineral
Reserves. A Probable Mineral Reserve has a lower level of
confidence than a Proven Mineral Reserve.
A Mineral Reserve is the economically mineable part of a
Measured and/or Indicated Mineral Resource. It includes diluting
materials and allowances for losses, which may occur when the
material is mined or extracted and is defined by studies at
Pre-Feasibility or Feasibility level as appropriate that include
application of Modifying Factors. Such studies demonstrate that, at
the time of reporting, extraction could reasonably be
justified.
The reference point at which Mineral Reserves are defined,
usually the point where the ore is delivered to the processing
plant, must be stated. It is important that, in all situations
where the reference point is different, such as for a saleable
product, a clarifying statement is included to ensure that the
reader is fully informed as to what is being reported.
The public disclosure of a Mineral Reserve must be demonstrated
by a Pre-Feasibility Study or Feasibility Study.
Mineral Reserves are those parts of Mineral Resources which,
after the application of all mining factors, result in an estimated
tonnage and grade which, in the opinion of the Qualified Person(s)
making the estimates, is the basis of an economically viable
project after taking account of all relevant Modifying Factors.
Mineral Reserves are inclusive of diluting material that will be
mined in conjunction with the Mineral Reserves and delivered to the
treatment plant or equivalent facility. The term 'Mineral Reserve'
need not necessarily signify that extraction facilities are in
place or operative or that all governmental approvals have been
received. It does signify that there are reasonable expectations of
such approvals.
'Reference point' refers to the mining or process point at which
the Qualified Person prepares a Mineral Reserve. For example, most
metal deposits disclose mineral reserves with a "mill feed"
reference point. In these cases, reserves are reported as mined ore
delivered to the plant and do not include reductions attributed to
anticipated plant losses. In contrast, coal reserves have
traditionally been reported as tonnes of "clean coal". In this coal
example, reserves are reported as a "saleable product" reference
point and include reductions for plant yield (recovery). The
Qualified Person must clearly state the 'reference point' used in
the Mineral Reserve estimate.
Probable Mineral Reserve
A Probable Mineral Reserve is the economically mineable part of
an Indicated, and in some circumstances, a Measured Mineral
Resource. The confidence in the Modifying Factors applying to a
Probable Mineral Reserve is lower than that applying to a Proven
Mineral Reserve.
The Qualified Person(s) may elect, to convert Measured Mineral
Resources to Probable Mineral Reserves if the confidence in the
Modifying Factors is lower than that applied to a Proven Mineral
Reserve. Probable Mineral Reserve estimates must be demonstrated to
be economic, at the time of reporting, by at least a
Pre-Feasibility Study.
Pre-Feasibility Study (Preliminary Feasibility Study)
The CIM Definition Standards requires the completion of a
Pre-Feasibility Study as the minimum prerequisite for the
conversion of Mineral Resources to Mineral Reserves.
A Pre-Feasibility Study is a comprehensive study of a range of
options for the technical and economic viability of a mineral
project that has advanced to a stage where a preferred mining
method, in the case of underground mining, or the pit
configuration, in the case of an open pit, is established and an
effective method of mineral processing is determined. It includes a
financial analysis based on reasonable assumptions on the Modifying
Factors and the evaluation of any other relevant factors which are
sufficient for a Qualified Person, acting reasonably, to determine
if all or part of the Mineral Resource may be converted to a
Mineral Reserve at the time of reporting. A Pre-Feasibility Study
is at a lower confidence level than a Feasibility Study.
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.
END
FR SFAFWEESSELD
(END) Dow Jones Newswires
March 13, 2020 03:00 ET (07:00 GMT)
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