TIDMCNR
RNS Number : 6063L
Condor Gold PLC
07 September 2023
Condor Gold plc
7/8 Innovation Place
Douglas Drive,
Godalming,
Surrey
GU7 1JX
07 September 2023
Condor Gold Plc
("Condor" or "the Company")
Interim Report and Accounts for the Six Months Ended 30 June
2023
Condor Gold plc ("Condor Gold", "Condor", the "Group" or the
"Company"), (AIM: CNR; TSX: COG) presents its unaudited interim
financial report for the six-month periods to 30 June 2023. It has
been posted on the Company's websites www.condorgold.com and
ca.condorgold.com. It is also available on SEDAR at www.sedar.com
.
Highlights for six months to 30 June 2023
-- There continues to be significant interest in the sale of the Company's assets
-- The Company hosted 2 site visits in connection with the sale
of the assets in Nicaragua during the first half of the year. There
are currently 5 non-binding offers.
-- 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.
-- 0.66 g/t gold from an isolated high-level chalcedonic rock
chip sample 400 m west of Cacao deposit indicates continuity of the
hidden, deep-seated high-grade mineralised Cacao deposit to the
west.
-- Up to 6.29 g/t gold from a 0.5 m thick quartz breccia in
artisanal mine workings at the Twin Hills (Dos Gemelos) prospect
confirm mineralisation along the Cacao trend some 2 km east of the
Cacao deposit.
-- 26.1 g/t gold and 200 g/t silver from new artisanal mine
working at the southern end of the main El Paraiso vein trend on
the Rio Luna Concession extends the strike length of medium to
high-grade mineralisation on the El Paraiso structure from 3.5 to
over 4 km.
Post Period Highlights
-- 4 July 2023 the Company announced it had raised GBP1 million
by way of the exercise of warrants by Galloway Limited, a company
wholly owned by Burnbrae Group Limited, which is, in turn, wholly
owned by Jim Mellon, Condor's Chairman, increasing Galloway's
shareholding to 23% of Condor Gold.
-- 21 July 2023 the Company provide an update on the sales process.
Company number: 05587987
CONDOR GOLD PLC
Interim Report and Accounts
For the Six Months Ended 30 June 2023
CONDOR GOLD PLC
CONTENTS OF THE INTERIM REPORT
FOR THE SIX MONTHS TO 30 JUNE 2023
TABLE OF CONTENTS Page
------------------------------------------------------- ----
Highlights [4
Chairman's Statement 5-8
9 -
Review of Operations & Project Overview 20
Statement Regarding Forward Looking and Technical 21 -
Information 23
Condensed Consolidated Statement of Comprehensive
Income 24
Condensed Consolidated Statement of Financial Position 25
Condensed Company Statement of Financial Position 26
Condensed Consolidated Statement of Changes in
Equity 27
Condensed Company Statement of Changes in Equity 28
Condensed Consolidated Cash Flow Statement 29
Condensed Company Cash Flow Statement 30
31 -
Notes to the Condensed Financial Statements 36]
CONDOR GOLD PLC
HIGHLIGHTS
FOR THE SIX MONTHS TO 30 JUNE 2023
Condor Gold plc ("Condor Gold", "Condor", the "Group" or the
"Company"), (AIM: CNR; TSX: COG) presents its unaudited interim
financial report for the six-month period to 30 June 2023. It has
been posted on the Company's website www.condorgold.com and
ca.condorgold.com. It is also available on SEDAR at www.sedar.com
.
Highlights for six months to 30 June 2023
-- There continues to be significant interest in the sale of the Company's assets.
-- The Company hosted 2 site visits in connection with the sale
of the assets in Nicaragua during the first half of the year. There
are currently 5 non-binding offers.
-- 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.
-- 0.66 g/t gold from an isolated high-level chalcedonic rock
chip sample 400 m west of Cacao deposit indicates continuity of the
hidden, deep-seated high-grade mineralised Cacao deposit to the
west.
-- Up to 6.29 g/t gold from a 0.5 m thick quartz breccia in
artisanal mine workings at the Twin Hills (Dos Gemelos) prospect
confirm mineralisation along the Cacao trend some 2 km east of the
Cacao deposit.
-- 26.1 g/t gold and 200 g/t silver from new artisanal mine
working at the southern end of the main El Paraiso vein trend on
the Rio Luna Concession extends the strike length of medium to
high-grade mineralisation on the El Paraiso structure from 3.5 to
over 4 km.
POST PERIOD HIGHLIGHTS
-- 4 July 2023 the Company announced it had raised GBP1 million
by way of the exercise of warrants by Galloway Limited, a company
wholly owned by Burnbrae Group Limited, which is, in turn, wholly
owned by Jim Mellon, Condor's Chairman, increasing Galloway's
shareholding to 23% of Condor Gold.
-- 21 July 2023 the Company provide an update on the sales process.
CONDOR GOLD PLC
CHAIRMAN'S STATEMENT and CEO'S REPORT
FOR THE SIX MONTHS TO 30 JUNE 2023
Dear Shareholder,
I continue to be impressed by the executive team' dedication to
getting our project shovel ready, which is eliciting good interest
in the current sales process.
We are very aware of the value of our assets and will not allow
them to go at anything other than a fair price.
Jim Mellon
Chairman
Date: X September 2023
CEO'S Report
Dear Shareholder,
I am pleased to present Condor Gold Plc's ("Condor", the
"Company" or the "Group") interim report for the 6-month financial
period to 30 June 2023 www.condorgold.com or, if you are viewing
from Canada, ca.condorgold.com.
The focus during the 6 month period to 30 June 2023 has been on
the sale of the Company's assets in Nicaragua. 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
carefully reviewed the Company's options as the Project is
"construction ready" with an18 month construction timeline. The
options included going through a financing and construction phase
as a single asset, single jurisdiction company with no existing
gold production experience. The Board 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 made in the local area, which will regenerate the local
communities. As a result of this strategy, the Board has
reclassified the Nicaraguan assets as held for sale within the
Group and Company Statements of Financial Position. 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.
The last update on the sales process was on 21 July 2023, my
quote in the RNS: "There remains substantial interest from gold
producers to acquire the Company's assets. Wholly owned, fully
permitted, construction ready gold mines with potential production
of 150,000 oz gold per annum, in major Gold Districts, with the
land and a new SAG Mill package purchased and a construction period
of only 18 months are rare. There are currently eight companies
under NDAs, five non-binding offers received and three site visits
completed. Companies under NDAs have access to a virtual data room,
which includes all drill data, technical studies to Feasibility
Study level, details of permits to construct and operate a mine and
financial models. While the sales process is taking longer than
anticipated, new enquires continue to be received and the Board is
confident that a binding agreement will be reached. Investors will
be updated in due course."
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
Technical Report ("2022 FS") on 26 October 2022 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 significantly 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, processing 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.
CONDOR GOLD PLC
CHAIRMAN'S STATEMENT and CEO'S REPORT
FOR THE SIX MONTHS TO 30 JUNE 2023
The plan would be to materially expand production 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
providing an indication of production targets.
The 2022 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.
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 a technical study released in October 2021, when
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.
CONDOR GOLD PLC
CHAIRMAN'S STATEMENT and CEO'S REPORT
FOR THE SIX MONTHS TO 30 JUNE 2023
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 587 sq km 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$250,000 to provide drinking water 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 Environment Permit (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. This includes skills
training. The new mine would potentially create approximately 1,000
jobs during the construction period, with priority to be given to
suitably skilled members of the local community. The upfront
capital cost of approximately US$106 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.
On 4 July 2023 the Company announced it had raised GBP1 million
by way of the exercise of warrants by Galloway Limited, a company
wholly owned by Burnbrae Group Limited, which is, in turn, wholly
owned by Jim Mellon, Condor's Chairman, increasing Galloway's
shareholding to 23% of Condor Gold (See RNS for details).
CONDOR GOLD PLC
CHAIRMAN'S STATEMENT and CEO'S REPORT
FOR THE SIX MONTHS TO 30 JUNE 2023
Turning to the financial results for the 2023 interims, the
Group's loss for the period was GBP565,8159 (2022: GBP1,372,390).
The Company raised a total of GBP73,438 after expenses during the
financial period (2022: GBP3,304,002). The net cash balance of the
Group at 30 June 2023 was GBP584,837 (2022: GBP2,453,607). During
the period, there was a GBP2,294,117 foreign exchange loss (2022
GBP3,270,705 gain). This is as a result of significant changes in
USD against GBP. The Board is aware of currency fluctuations and is
working to mitigate any further losses.
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.
Mark Child
CEO
Date: X September 2023
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
LA INDIA PROJECT
Mining Studies
Following completion of the La India open pit Feasibility Study
(FS) in the Autumn of 2022, technical investigations on La India
have been completed, reducing the level of engineering activity on
the project. Follow-up work has focused on support for the sales
process and responding to inquiries from interested parties. Key
areas of effort have included:
-- Alternative production scenario evaluations examining
possibilities for either earlier production from La India, or
considering differing production rates employing the updated
information present in the designs underpinning the FS.
-- Research into potential partner companies within Nicaragua,
including limited due diligence of other operations.
-- Conducting site visits with interested parties and presenting FS findings
-- Maintenance of the data room
Condor expects that further engineering efforts will be limited
in scope, unless otherwise requested by potential investors.
Plant design
As a reminder, the design of the plant and infrastructure was
conducted by Hanlon Engineering of Tucson, Arizona, a division of
GR Engineering Services of Australia. The work included the plant,
support infrastructure, access roads from the pit exit to the mill.
The level of design for the plant was sufficient to provide cost
estimates for capital and operating costs.
The Hanlon deliverables included over 100 drawings covering
Civil, Electrical, Process flow diagrams and general arrangements,
along with the reports detailing the capital cost sections of the
FS and the operating costs for the plant area.
Figure 1: View of Planned 2800 TPD Plant
Dave Crawford
Chief Technical Officer
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
Geology: exploration and mining studies
The Company has focused on conserving cash during the asset sale
process in the first half of 2023 and so only limited exploration
and mining studies have been undertaken during the period. The sale
process itself has provided some useful feedback from three site
visits by interested parties.
Prospecting along the Cacao trend revealed further gold showings
that support the theory that there is a major, fully preserved
epithermal system running underneath the plains of Sebaco. The
plains of Sebaco are a wide valley formed by a downthrown block, or
graben, adjacent to the mineralised hills that host the core La
India open-pit gold resources. Unlike the La India open pit mine
area, the Sebaco graben has been subject to very little erosion
since the period of gold mineralisation, and much of the area has
been covered by alluvium. As a result of this protected geological
situation the epithermal gold mineralisation in the Sebaco graben
is almost fully preserved, in places several hundred metres below
surface, and locally further hidden under alluvium.
The Cacao deposit is at the centre of a string of prospects
lying along a 4 km long structure that appears to link the centre
of the core La India mineralisation with the more northerly, 20 km
long, Andrea gold trend. A near-surface gold-mineralised phreatic
breccia; the Central Breccia prospect occurs at the western end of
the trend, whilst isolated mineralisation at the Twin Hills (Dos
Gemelos) and Santa Barbara prospects to the west of Cacao delineate
the eastern end.
Deep exploratory drilling in 2021 demonstrated that the main
body of the Cacao deposit extends for at least 400 m to the east of
the previously defined strike extent, into an area where there is
no surface expression, extending the total strike length of Cacao
to at least 800 m. The prospecting carried out in the first half of
2023 has identified a new occurrence of high-level chalcedonic
quartz, with a low but positively anomalous gold value of 0.66 g/t
on a new farm track some 400 m in the opposite direction, to the
west of the main Cacao resource. This is significant in that it
demonstrates that the deep-seated mineralisation may well extend to
the west of Cacao where there is little surface expression, as well
as to the east, potentially extending the strike length to a 1200 m
plus long ore body.
Further away from Cacao at the eastern end of the trend, rock
chip samples of up to 6.29 g/t gold from artisanal workings at the
Twin Hills (Dos Gemelos) prospect confirms gold mineralisation and
confirms the prospect as another target for exploration for
deep-seated epithermal mineralisation.
Elsewhere, assay results from on the Rio Luna Concession in
Central Nicaragua returned an assay of 26.1 g/t gold and 200 g/t
silver from a 0.45 m wide quartz-poor stockwork exposed in a small
new artisanal mine working on the principal El Paraiso vein trend,
some 600 m further south along strike from the southernmost
drill-tested prospect. This extends the medium to high-grade area
of interest along the El Paraiso structure from 3.5 to over 4 km
strike length.
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
Mineral resource estimation update in 2022
The mineral resource estimation was updated to include all the
previous year's infill and RC replacement drilling on the principal
La India open pit and the deep exploration drilling at Cacao.
Secondary mineral resources were also updated to reflect the latest
mining costs.
Figure 2: Plan showing the current open pit and underground
mineral resources and fully permitted planned mine site
infrastructure on La India Project. The principal La India, America
and Mestiza vein set mineral resources all fall within the mine
permit area. The San Lucas, Central Breccia, Cristalito-Tatescame
and Cacao mineral resources represent potential additional
satellite mines, all within 6 km of the planned processing
plant.
Luc English
Resident Geologist
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
Permitting
Land Acquisition
During first half of 2023, the land acquisition team focused on
the legalization and transfer of possessory rights to real rights,
an improved legal status, which means that the 55 properties
purchased by Condor continued with a registration process in the
name of Condor's two wholly owned Nicaraguan subsidiaries, La India
Gold S.A. and Condor S.A.
The La India mining project has acquired a total area of
1,014.54 Ha, of which 353.87 Ha have been successfully legalized
through agrarian reform titles and registered in the Property
Registry of Leon; 100% of the properties acquired as possessory
rights are now in the process of being transferred as real rights
in favor of La India Gold S.A. and Condor S.A. As of 30(th) June
2023, Condor owns or controls 99.6% of the required land for the La
India Mine.
Work to complete registration of properties in the Espinito
Mendoza concession (La Mestiza project) is ongoing: 70.50 Ha has
been registered and the remaining 203.04 Ha is in process.
Land Registered: 776.07 Manzanas - 547.14 Ha
Land in process to registered: 501.94 Manzanas - 353.87 Ha
Land in possession: 288.66 Manzanas - 203.51 Ha
Total: 1,566.67 Manzanas - 1,014.54 Ha
Dianer Escobar
Legal Manager
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
Environmental
The collection of environment baseline and permit compliance
data continued throughout the first half of 2023 from the following
data points:
-- An analogue and digital weather monitoring station located within the mine permit area;
-- Surface water flow monitoring with daily readings of water
levels and determination of flows in the two main catchments at La
Simona and at the San Lucas tunnel, including a daily photographic
record of the six weirs within the La India and America concession
areas. This feeds into the site wide water management system for a
future mine;
-- Groundwater level monitoring of forty-four piezometers
located in the concession areas. The data is important for
de-watering of the main la India open pit, final geotechnical pit
angels and managing the water supply for the processing plant;
-- Groundwater and environmental monitoring including sampling
and analysis of water quality at 13 strategic monitoring sites
distributed in the La India concession.
Reforestation efforts included contribution of plants to local
INAFOR and MARENA offices as part of our commitment established in
the Environmental and Social Impact Plan (ESIP) for the delivery of
200,000 plants for the reforestation plan. Condor maintains 9.3
hectares of reforestation in eight areas. In the first half of the
year 2,944 plants were planted and the Condor-run Oro Verde nursery
held an inventory over 5,852 plants at the close of the period
which will be used for reforestation.
Long-term test-work of selected samples for their potential for
acid rock drainage started in 2020 continued on-site through 2022.
The analysis of these samples is scheduled for completion in the
second quarter of 2023. Due to the low amount of precipitation in
the project area, the collection and preservation of leachate
samples have been rescheduled for the second half of 2023. Condor
maintains 9 leachate samples from each reactor for a total of 27
corresponding samples.
The process for extending the environmental permit for the
America open pit, and renewal of the tree-cutting permits were
initiated with the renewed permits expected in the second half of
the year.
Jamil Robleto Molina
Environment and Hydrology Manager
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
Social
Social licence
The social team continued to work with the community and
artisanal miners to maintain acceptance and support, and to prepare
the local stakeholders for the changes that will come with the
construction and operation of a significant new gold mine of
national importance. The Company has long recognised the importance
of gaining and maintaining a social licence to operate. A new gold
mine will have a huge positive impact on the local economy and it
is in the interest of both the Company and the local communities to
maximise the potential mutual benefits. There are ten communities
within a 10 km radius of the project, three of which lie adjacent
to the planned mine infrastructure and will be directly impacted,
and seven that will have opportunities to indirectly benefit.
A key stage in the creation of a local workforce for the
construction and operation of the mine was concluded with 113 local
members of the community graduating from Company-sponsored training
courses. The courses covered both trades such as heavy equipment
operators, electricians, mechanics, as well as clerical positions
such as warehouse management, accounting, customs management and
basic computer skills.
The Company has continued to build working relations and
communicate with the communities via eight local programs created
by the Company and that involve almost 80% of the local population:
seniors, local businessmen, cooperative artisanal miners,
independent artisanal miners, APROSAIC (local association of
development initiatives), the projects "Water is life", "Youth in
Action" and "Happy Childhood". These groups have been encouraged to
develop self-sustaining projects as well as undertake voluntary
community work including:
-- Medicinal Garden (medicinal plant nursery, with production and sale of natural medicine),
-- Production and sale of piñatas,
-- Village bank (providing loans to members),
-- Savings Programme (where 24 businessmen participated),
-- Litter clean-ups and recycling.
-- Bed and breakfast homestay (nine rooms in five houses).
-- Supporting and providing medical care 'home base' in five
small remote communities in alliance with the Ministry of
Health.
In 2021, the Company invested approximately US$250,000 in a
water purification plant, which provides drinking water for the
local community. The Company's drinking water project continues to
provide 358 homes and 433 families with clean, affordable drinking
water. The deliveries provide an excellent informal point of
contact with a broad spectrum of community members.
As part of Condor's Health, Safety, Environmental and Community
(HSEC) policy, which is aligned with international standards, the
Company also implemented quarterly community assemblies in the
three villages within La India's direct area of influence in order
to present the activities carried out as part of the project and
the exploration activities.
Levinia Sequeira
Social Manager
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
CURRENT CONCESSION HOLDINGS
Nicaragua Projects
Project Concession Ownership Expiry Date Area (km(2))
-------------------- ------------ ---------------
La India Project La India 100% Owned January 2027 68.50
-------------------- ------------ --------------- -------------
Espinito Mendoza 100% Owned November 2026 2.00
-------------------- ------------ ---------------------------------- -------------
Cacao 100% Owned January 2032 11.90
-------------------- ------------ ---------------------------------- -------------
Santa Barbara 100% Owned April 2034 16.20
-------------------- ------------ ---------------------------------- -------------
Real de la Cruz 100% Owned January 2035 7.66
-------------------- ------------ ---------------------------------- -------------
Rodeo 100% Owned January 2035 60.40
-------------------- ------------ ---------------------------------- -------------
La Mojarra 100% Owned June 2029 27.00
-------------------- ------------ ---------------------------------- -------------
La Cuchilla 100% Owned August 2035 86.39
-------------------- ------------ ---------------------------------- -------------
El Zacatoso 100% Owned October 2039 1.00
-------------------- ------------ ---------------------------------- -------------
Tierra Blanca 100% Owned June 2040 32.21
-------------------- ------------ ---------------------------------- -------------
Las Cruces 100% Owned December 2043 142.3
-------------------- ------------ ---------------------------------- -------------
Cerro Los Cerritos 100% Owned June 2044 132.1
-------------------- ------------ ---------------------------------- -------------
Subtotal 587.66
--------------------------------------------------- ---------------- -------------
Boaco Rio Luna 100% Owned June 2035 43.00
------------------ -------------------- ------------ --------------- -------------
RAAN Estrella 100% Owned April 2035 18.00
------------------ -------------------- ------------ --------------- -------------
Nueva Segovia Potrerillos 100% Owned December 2031 12.00
------------------ -------------------- ------------ --------------- -------------
TOTAL 660.66
----------------------------------------------------------------------- -------------
All concessions in Nicaragua are combined exploration and
exploitation concessions.
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
CURRENT MINERAL RESOURCES AND RESERVES
The following Mineral Resource estimations set out Condor's
Mineral Resource Statement as at 28 February 2022 for the La India
Project:
Table showing SRK CIM Compliant Mineral Resource Statement
effective 28 February 2022 for La India Project
MINERAL RESOURCE STATEMENT SPLIT PER VEIN as of February 28, 2022
(7),(8),(9),(10),(11)
Category Area Vein Name Cut-Off gold silver
Name
---------- --------------------- ------------------------ -------- ------------------------- ------------------
Tonnes Au Au (Koz) Ag Grade Ag (Koz)
(kt) Grade (g/t)
(g/t)
---------- --------------------- ------------------------ -------- ------ ------- -------- -------- --------
La India La India/ 0.65 g/t
Indicated Vein Set California(1)(6) (OP) 8,487 3.0 827 6.1 1,669
---------- ---------------------
La India/ 2.0 g/t
California(2) (UG) 391 5.0 63 10.6 134
------ ------- -------- -------- --------
America 0.5 g/t
Vein Set America Mine(3) (OP) 114 8.1 30 4.9 18
---------------------
2.0 g/t
America Mine(4) (UG) 470 7.3 110 4.7 71
------------------------ ----------------------------------------- ------ ------- -------- -------- --------
Mestiza 0.5 g/t
Vein Set Tatiana (3) (OP) 92 12.1 36 19.5 57
---------------------
2.0 g/t
Tatiana (4) (UG) 118 5.5 21 11.3 43
------------------------ ----------------------------------------- ------ ------- -------- -------- --------
La India La India/ 0.65 g/t
Inferred Vein Set California(1)(6) (OP) 893 2.4 69 4.7 134
---------- ---------------------
0.65 g/t
Teresa(1) (OP) 5 6.4 1
------ ------- -------- -------- --------
La India/ 2.0 g/t
California(2) (UG) 1,142 5.6 206 12.2 446
2.0 g/t
Teresa(2) (UG) 85 10.9 30
----------------------------------------- ------ ------- -------- -------- --------
2.0 g/t
Arizona(5) (UG) 399 4.3 56
2.0 g/t
Agua Caliente(5) (UG) 43 9.0 13
------------------------ ----------------------------------------- ------ ------- -------- -------- --------
America 0.5 g/t
Vein Set America Mine(3) (OP) 677 3.1 67 5.5 120
--------------------- ------ ------- -------- -------- --------
2.0 g/t
America Mine(4) (UG) 1,008 4.8 156 6.8 221
------ ------- -------- -------- --------
2.0 g/t
Guapinol(5) (UG) 497 5.9 94
------------------------ ----------------------------------------- ------ ------- -------- -------- --------
Mestiza
Vein Set 0.5 g/t
(9) Tatiana(3) (OP) 220 6.6 47 13.6 97
---------------------
2.0 g/t
Tatiana(4) (UG) 615 3.9 77 8.8 174
------ ------- -------- -------- --------
0.5 g/t
Buenos Aires(3) (OP) 120 9.8 38
2.0 g/t
Buenos Aires(4) (UG) 188 7.1 43
------ ------- -------- -------- --------
2.0 g/t
Espenito(4) (UG) 181 8.4 49
------ ------- -------- -------- --------
Central 0.5 g/t
Breccia Central Breccia(3) (OP) 922 1.9 56
--------------------- ------------------- ------ ------- -------- -------- --------
2.0 g/t
San Lucas San Lucas(5) (UG) 298 5.9 56
--------------------- ------------------- ------ ------- -------- -------- --------
2.0 g/t
Cristalito-Tatescame Cristalito-Tatescame(5) (UG) 185 5.5 33
------------------- ------ ------- --------
0.65 g/t
Cacao Cacao(1) (OP) 190 2.4 15
---------------------
2.0 g/t
Cacao(2) (UG) 975 2.8 86
------------------------ ----------------------------------------- ------ ------- -------- -------- --------
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
(1) The La India and Cacao pits are amenable to open pit mining and
the Mineral Resource Estimates are constrained within Whittle optimised
pits, which SRK based on the following parameters: A Gold price of
USD1,800 per ounce of gold with no adjustments. Prices are based
on experience gained from other SRK Projects. Slope angles defined
by the Company Geotechnical study which range from angle 42 - 48deg.
Metallurgical recovery assumptions are set at 90.2% for gold, based
on test work conducted to date. Marginal costs of USD24.32/t for
processing, USD7.50/t G&A and USD2.33/t for mining, with consideration
for mining royalties, but without considering revenues from other
metals.
(2) Underground Mineral Resources beneath the open pit are reported
at a cut-off grade of 2.0 g/t Au over a minimum width of 1.0 m. Cut-off
grades are based on a price of USD1,800 per ounce of gold and gold
recoveries of 90.2%, costs of USD24.32/t for processing, USD7.5/t
G&A and USD51.0/t for mining, with consideration for mining royalties,
but without considering revenues from other metals.
----------------------------------------------------------------------------
(3) The America, Central Breccia, La Mestiza pits are amenable to
open pit mining and the Mineral Resource Estimates are constrained
within Whittle optimised pits. No new work has been completed on
the Mineral Resources estimates for these projects since the previous
estimates (2019) which SRK based on the following parameters: A Gold
price of USD1,500 per ounce of gold with no adjustments. Prices are
based on experience gained from other SRK Projects. Slope angles
defined by the Company Geotechnical study which range from angle
40 - 48deg. Metallurgical recovery assumptions are between 91-96%
for gold, based on test work conducted to date. Marginal costs of
USD19.36/t for processing, USD5.69/t G&A and USD2.35/t for mining,
a haul cost of USD1.25/t was added to the Mestiza ore tonnes to consider
transportation to the processing plant, with consideration for mining
royalties, but without considering revenues from other metals.
----------------------------------------------------------------------------
(4) Underground Mineral Resources beneath the America, Central Breccia,
La Mestiza open pits are reported at a cut-off grade of 2.0 g/t Au
over a minimum width of 1.0 m. Cut-off grades are based on a price
of USD1,500 per ounce of gold and gold recoveries of 91% for resources,
costs of USD19.36/t for processing, USD4.55/t G&A and USD50.0/t for
mining, without considering revenues from other metals.
----------------------------------------------------------------------------
(5) Mineral Resources as previously estimated by SRK (22 December
2011), cut-off grade updated to reflect current price and cost assumptions
and using a 2.0 g/t Au over a minimum width of 1.0 m. Cut-off grades
are based on a price of USD1,800 per ounce of gold and gold recoveries
of 90.2% for resources, costs of USD24.32/t for processing, USD7.5/t
G&A and USD51.0/t for mining, with consideration for mining royalties,
but without considering revenues from other metals.
----------------------------------------------------------------------------
(6) The La India deposit Mineral Resource as reported considers the
current maximum limits for potential extraction. The current operating
permits consider a limitation from the current village boundaries,
which have been applied to the Mineral Reserves. It is the QP's opinion
there remains a reasonable prospect that this may be revisited at
a future date once mining commences, and relocation of the La India
village may be required. Further work will be required on the costs
associated to such relocation efforts, along with the potential timelines
to achieve the relocation. In order to achieve this outcome Condor
will need to submit an updated EIA and receive environmental approval,
where this will need to take account stakeholder interests and concerns,
and complete a resettlement process. Such exercises require careful
stakeholder engagement.
----------------------------------------------------------------------------
(7) Back calculated Inferred silver grade based on a total tonnage
of 4,569 Kt as no silver estimates for Teresa, Central Breccia, Arizona,
Agua Caliente, Guapinol, San Lucas, Cristalito-Tatescame or Cacao
inherently involve a degree of rounding and consequently introduce
a margin of error. Where these occur, SRK does not consider them
to be material. All composites have been capped where appropriate.
The Concessions are wholly owned by and exploration is operated by
Condor Gold plc.
----------------------------------------------------------------------------
(8) Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability. All figures are rounded to reflect the relative
accuracy of the estimate and have been used to derive sub-totals,
totals and weighted averages. Such calculations inherently involve
a degree of rounding and consequently introduce a margin of error.
Where these occur, SRK does not consider them to be material. All
composites have been capped where appropriate. The Concessions are
wholly owned by and exploration is operated by Condor Gold plc.
----------------------------------------------------------------------------
(9) Mineral Resources presented do not include any updated Mineral
Resource Estimates on the 2021 Mestiza drilling program completed
and reported on March 10, 2022, as it post-dates the effective date
for the current study. Updated Mineral Resources will be disclosed
in future updates.
----------------------------------------------------------------------------
(10) The reporting standard adopted for the reporting of the MRE
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) as required by
NI 43-101.
----------------------------------------------------------------------------
(11) SRK has completed a site inspection to the deposit by Mr Benjamin
Parsons, MSc (MAusIMM(CP), Membership Number 222568, an appropriate
"independent qualified person" as this term is defined in National
Instrument 43-101.
----------------------------------------------------------------------------
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
Table showing SRK CIM Compliant Mineral Resource Statement
effective 28 February 2022 for the La India Project
SRK MINERAL RESOURCE STATEMENT as of 28 February 2022 (7),(8),(9),(10),
(11)
Area Vein Cut-Off gold silver
Name Name
-------- ----------- --------------- -------------------------- ---------------------
Tonnes Au Grade Au Ag Grade Ag (koz)
Category (kt) (g/t) (koz) (g/t) (7)
----------- -------- ----------- --------------- -------- -------- ------ -------- -----------
Grand 0.5g/t (OP)
Indicated total All veins (3) 206 9.9 66 11.4 75
----------- -------- -------- -------- ------ -------- -----------
0.65 g/t
(OP) (1,6) 8,487 3 827 6.1 1,669
-------- -------- ------ -------- -----------
2.0 g/t
(UG) (2,4,5) 979 6.2 194 7.9 248
-------- -------- ------ -------- -----------
Subtotal Indicated 9,672 3.5 1,088 6.4 1,992
---------------------------- -------- -------- ------ -------- -----------
Grand 0.5g/t (OP)
Inferred total All veins (3) 1,939 3.3 208 3.5 217
----------- -------- -------- -------- ------ -------- -----------
0.65 g/t
(OP) (1,6) 1,087 2.4 84 4.7 134
-------- -------- ------ -------- -----------
2.0 g/t
(UG) (2,4,5) 5,616 5 898 9.5 841
-------- -------- ------ -------- -----------
Subtotal Inferred 8,642 4.3 1,190 8.1(7) 1,193
---------------------------- -------- -------- ------ -------- -----------
(1) The La India and Cacao pits are amenable to open pit mining and
the Mineral Resource Estimates are constrained within Whittle optimised
pits, which SRK based on the following parameters: A Gold price of USD1,800
per ounce of gold with no adjustments. Prices are based on experience
gained from other SRK Projects. Slope angles defined by the Company
Geotechnical study which range from angle 42 - 48deg. Metallurgical
recovery assumptions are set at 90.2% for gold, based on test work conducted
to date. Marginal costs of USD24.32/t for processing, USD7.50/t G&A
and USD2.33/t for mining, with consideration for mining royalties, but
without considering revenues from other metals.
---------------------------------------------------------------------------------------------------
(2) Underground Mineral Resources beneath the open pit are reported
at a cut-off grade of 2.0 g/t Au over a minimum width of 1.0 m. Cut-off
grades are based on a price of USD1,800 per ounce of gold and gold recoveries
of 90.2%, costs of USD24.32/t for processing, USD7.5/t G&A and USD51.0/t
for mining, with consideration for mining royalties, but without considering
revenues from other metals.
---------------------------------------------------------------------------------------------------
(3) The America, Central Breccia, La Mestiza pits are amenable to open
pit mining and the Mineral Resource Estimates are constrained within
Whittle optimised pits. No new work has been completed on the Mineral
Resources estimates for these projects since the previous estimates
(2019) which SRK based on the following parameters: A Gold price of
USD1,500 per ounce of gold with no adjustments. Prices are based on
experience gained from other SRK Projects. Slope angles defined by the
Company Geotechnical study which range from angle 40 - 48deg. Metallurgical
recovery assumptions are between 91-96% for gold, based on test work
conducted to date. Marginal costs of USD19.36/t for processing, USD5.69/t
G&A and USD2.35/t for mining, a haul cost of USD1.25/t was added to
the Mestiza ore tonnes to consider transportation to the processing
plant, with consideration for mining royalties, but without considering
revenues from other metals.
---------------------------------------------------------------------------------------------------
(4) Underground Mineral Resources beneath the America, Central Breccia,
La Mestiza open pits are reported at a cut-off grade of 2.0 g/t Au over
a minimum width of 1.0 m. Cut-off grades are based on a price of USD1,500
per ounce of gold and gold recoveries of 91% for resources, costs of
USD19.36/t for processing, USD4.55/t G&A and USD50.0/t for mining, without
considering revenues from other metals.
---------------------------------------------------------------------------------------------------
(5) Mineral Resources as previously estimated by SRK (22 December 2011),
cut-off grade updated to reflect current price and cost assumptions
and using a 2.0 g/t Au over a minimum width of 1.0 m. Cut-off grades
are based on a price of USD1,800 per ounce of gold and gold recoveries
of 90.2% for resources, costs of USD24.32/t for processing, USD7.5/t
G&A and USD51.0/t for mining, with consideration for mining royalties,
but without considering revenues from other metals.
---------------------------------------------------------------------------------------------------
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
(6) The La India deposit Mineral Resource as reported considers the
current maximum limits for potential extraction. The current operating
permits consider a limitation from the current village boundaries,
which have been applied to the Mineral Reserves. It is the QP's opinion
there remains a reasonable prospect that this may be revisited at
a future date once mining commences, and relocation of the La India
village may be required. Further work will be required on the costs
associated to such relocation efforts, along with the potential timelines
to achieve the relocation. In order to achieve this outcome Condor
will need to submit an updated EIA and receive environmental approval,
where this will need to take account stakeholder interests and concerns
and complete a resettlement process. Such exercises require careful
stakeholder engagement.
(7) Back calculated Inferred silver grade based on a total tonnage
of 4,555 Kt as no silver estimates for Teresa, Central Breccia, Arizona,
Agua Caliente, Guapinol, San Lucas, Cristalito-Tatescame or Cacao.
inherently involve a degree of rounding and consequently introduce
a margin of error. Where these occur, SRK does not consider them to
be material. All composites have been capped where appropriate. The
Concessions are wholly owned by and exploration is operated by Condor
Gold plc
----------------------------------------------------------------------------
(8) Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability. All figures are rounded to reflect the relative
accuracy of the estimate and have been used to derive sub-totals,
totals and weighted averages. Such calculations inherently involve
a degree of rounding and consequently introduce a margin of error.
Where these occur, SRK does not consider them to be material. All
composites have been capped where appropriate. The Concessions are
wholly owned by and exploration is operated by Condor Gold plc.
----------------------------------------------------------------------------
(9) Mineral Resources presented do not include any updated Mineral
Resource estimates on the 2022 Mestiza drilling program completed
and reported on March 10, 2022, as it post-dates the effective date
for the current study. Updated Mineral Resources will be disclosed
in future updates.
----------------------------------------------------------------------------
(10) The reporting standard adopted for the reporting of the MRE 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) as required by NI 43-101.
----------------------------------------------------------------------------
(11) SRK has completed a site inspection to the deposit by Mr Benjamin
Parsons, MSc (MAusIMM(CP), Membership Number 222568, an appropriate
"independent qualified person" as this term is defined in National
Instrument 43-101.
----------------------------------------------------------------------------
Table showing CIM Compliant Mineral Reserve Statement effective
31 March 2022 for the La India Open Pit Project.
Mineral Reserve Tonnage Au Grade Ag Grade Contained Contained Ag
Classification Au
(Mt dry) (g/t) (g/t) (koz) (koz)
------------------ -------- -------- -------- --------- ------------
Proven
------------------ -------- -------- -------- --------- ------------
Probable 7.32 2.56 5.31 602 1,250
------------------ -------- -------- -------- --------- ------------
Proven + Probable 7.32 2.56 5.31 602 1,250
------------------ -------- -------- -------- --------- ------------
1. Based on a cut-off grade of 0.6 g/t Au, gold price of
US$1,600/oz and Ag price of US$20/oz.,
2. Average ore loss and dilution are estimated at 3% and 8%,
respectively,
3. 91% Au and 56% Ag metallurgical recovery,
4. Waste tonnes within the open pit is 96 Mt at a strip ratio of
13.2:1 (waste to ore);
5. The open pit Mineral Reserves assume complete mine
recovery;
6. Topography as of March 31, 2022;
7. The Mineral Reserve estimate has been completed under the
supervision of Mr Fernando P Rodrigues of SRK, BSc, MBA MMSAQP
#01405QP of SRK Consulting, Inc. in accordance with NI 43-101 and
generally accepted Canadian Institute of Mining, Metallurgical and
Petroleum "Estimation of Mineral Resource and Mineral Reserves Best
Practices" guidelines ("CIM Guidelines"). Mr Rodrigues has
sufficient experience to act as an independent qualified person in
accordance with NI 43-101. Mr Rodrigues has not been to site.
CONDOR GOLD PLC
REVIEW OF OPERATIONS AND PROJECT OVERVIEW
FOR THE SIX MONTHS TO 30 JUNE 2023
SUMMARY OF CURRENT PERMITTED OPEN PITS - LA INDIA PROJECT(1)
Category Area Name Cut-Off Gold
----------- ----------- -----------------------------
Tonnes Au Grade Au (Koz)
(Kt) (g/t)
----------- ----------- ------- --------- ---------
0.5
g/t
Indicated La India (OP) 8,377 3.1 837
----------- ------- --------- ---------
0.5
g/t
America (OP) 114 8.1 30
----------- --------------------- ------- --------- ---------
0.5
g/t
Mestiza (OP) 92 12.1 36
----------- --------------------- ------- --------- ---------
Total 8,583 3.3 903
---------------------- ---------- ------- --------- ---------
0.5
g/t
Inferred La India (OP) 883 2.4 68
----------- ----------- --------- ------- --------- ---------
0.5
g/t
America (OP) 667 3.1 67
----------- --------------------- ------- --------- ---------
0.5
g/t
Mestiza (OP) 341 7.7 85
----------- --------------------- ------- --------- ---------
Total 1,901 3.6 220
---------------------- ---------- ------- --------- ---------
0.5
g/t
Total La India (OP) 9,260 3.0 905
----------- ----------- --------- ------- --------- ---------
0.5
g/t
America (OP) 791 3.8 97
----------- --------------------- ------- --------- ---------
0.5
g/t
Mestiza (OP) 433 8.6 121
----------- --------------------- ------- --------- ---------
Total 10,484 3.3 1,123
---------------------- ---------- ------- --------- ---------
(1) See Company RNS dated 6 May, 2020
CONDOR GOLD PLC
STATEMENT REGARDING FORWARD-LOOKING AND TECHNICAL
INFORMATION
FOR THE SIX MONTHS TO 30 JUNE 2023
Certain statements contained in this document constitute
forward-looking information under applicable Canadian securities
laws. These statements relate to future events or future
performance. All statements other than statements of historical
fact may be forward-looking statements. Forward-looking statements
are often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "objectives",
"strategies", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. The Company
believes the expectations reflected in those forward-looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in its document should not be unduly relied
upon.
In particular, this document contains forward-looking statements
pertaining to the following:
-- mineral resource and mineral reserve estimates;
-- targeting additional mineral resources and expansion of deposits;
-- the impact of the redesigned La India open pit on the
technical viability, economic attractiveness and anticipated gold
production of the La India Project;
-- the Company's expectations, strategies and plans for the La
India Project, including the Company's planned exploration and
development activities;
-- the results of future exploration and drilling and estimated
completion dates for certain milestones;
-- successfully adding or upgrading mineral resources and
successfully developing new deposits;
-- production and processing estimates;
-- future financial or operating performance and condition of
the Company and its business, operations and properties; and
-- any other statement that may predict, forecast, indicate or
imply future plans, intentions, levels of activity, results,
performance or achievements.
The actual results could differ materially from those
anticipated in these forward-looking statements or information as a
result of the risk factors set forth below and elsewhere in this
document:
-- mineral exploration, development and operating risks;
-- estimation of mineralisation, mineral resources and mineral reserves;
-- environmental, health and safety regulations of the resource industry;
-- competitive conditions;
-- permitting and licencing risks;
-- operational risks;
-- negative cash flow;
-- liquidity and financing risks;
-- funding risk;
-- material contract risks;
-- exploration costs;
-- uninsurable risks;
-- conflicts of interest;
-- exercise of statutory rights and remedies;
-- risks of operating in Nicaragua;
-- government policy changes;
-- ownership risks;
-- artisanal miners and community relations;
-- difficulty in enforcement of judgments;
-- the Company's staggered board of directors;
-- market conditions;
-- stress in the global economy;
-- current global financial condition;
-- exchange rate and currency risks;
-- commodity prices;
-- reliance on key personnel;
CONDOR GOLD PLC
STATEMENT REGARDING FORWARD-LOOKING AND TECHNICAL
INFORMATION
FOR THE SIX MONTHS JUNE 30, 2023 (CONTD.)
-- dilution risk; and
-- payment of dividends; and
-- other risks and uncertainties described under the heading
"Risk Factors" in the Company's annual information form for the
fiscal year ended December 31, 2022, dated March 27, 2023 and
available under the Company's profile at www.sedar.com.
Statements relating to "mineral reserves" or "mineral resources"
are deemed to be forward-looking statements or information, as they
involve the implied assessment, based on certain estimates and
assumptions, that the reserves and resources described can be
profitably produced in the future. Readers are cautioned that the
foregoing lists of factors are not exhaustive. The forward-looking
statements contained in this document are expressly qualified by
this cautionary statement.
Although the forward-looking statements contained in this
document are based upon assumptions which the Company believes to
be reasonable, the Company cannot assure holders of ordinary shares
of the Company that actual results will be consistent with these
forward-looking statements. With respect to forward-looking
statements contained in this document, the Company has made
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. The Company has included
the above summary of assumptions and risks related to
forward-looking information provided in this document in order to
provide holders of ordinary shares of the Company with a more
complete perspective
on the Company's future operations and such information may not
be appropriate for other purposes. The Company's actual results,
performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits the Company will
derive therefrom. These forward-looking statements are made as of
the date of this document and the Company disclaims any intent or
obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities
laws.
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.
On 25 February 2022 the Company announced an updated Mineral
Resource Estimate ("MRE") at La India. The MRE as at 25 February
2022 is 9.67 million tonnes ("M tonnes" or "Mt") at 3.5 g/t gold
for 1,088,000 oz gold in the Indicated category and 8.6M tonnes at
4.3g/t gold for 1,190,000 oz gold in the Inferred category. The MRE
did not show a material change in the number of ounces of gold
reported in the Indicated Category or Inferred Category. The
methods applied to conducting the geological modelling and
estimation for the MRE have not changed from those described in the
Technical Report. Given that there has been no material change to
the MRE, the Mineral Resource Estimate as disclosed in the
Technical Report was not materially impacted by this update. More
information relating to the updated MRE is supported by the press
release titled "Mineral Resource Update on La India Project,
Nicaragua, including initial declaration of new open pit mineral
resource at Mestiza" dated 17 August 2022 which is available on
SEDAR under the Company's issuer profile. The MRE 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 MRE update was
reviewed and approved by Andrew Cheatle, P. GEP, a qualified person
within the meaning of NI 43-101.
CONDOR GOLD PLC
STATEMENT REGARDING FORWARD-LOOKING AND TECHNICAL
INFORMATION
FOR THE SIX MONTHS JUNE 30, 2023 (CONTD.)
David Crawford, Chief Technical Officer of the Company, and
Andrew Cheatle, a non-executive Director of the Company, each of
whom is a Qualified Person as defined by NI 43-101, have approved
the written disclosure in this document.
Qualified Person: Andrew Cheatle has supervised the preparation
of the geological information in this report. He has circa 30 years
of relevant experience in mineral exploration and development and
provides consulting services in that field to various companies in
the gold exploration and/or development sectors.
Andrew Cheatle is satisfied that the results are verified, based
on an inspection of the results from activities carried out in 2022
as set out in this document, including of drill core, a review of
the sampling procedures, the credentials of the professionals
completing the work and the visual nature of the geology within a
district where he is familiar with the style and type of
mineralization.
Quality Assurance and Control: Samples generated from soil
sampling and drilling activities are shipped directly in
security-sealed bags to Bureau Veritas preparation facility in
Managua (ISO 9001). Samples shipped also include intermittent
standards and blanks. Pulp samples are subsequently shipped to
Bureau Veritas Acme Laboratories in Vancouver, Canada for analysis.
For the drilling assays used for Mineral Resource estimations, five
percent of pulp samples are prepared and analysed by ALS Minerals
in Vancouver, Canada (ISO 17025:2017 and ISO 9001:2015) and Bureau
Veritas Laboratories (ISO 17025:2005 and ISO 9001:2015).
Metallurgical tests were done on quartered core samples for La
India, America and Central Breccia. No systematic mineralogy
analysis has been carried out.
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2023
Six months Six months
to 30.06.23 to 30.06.22
unaudited unaudited
GBP GBP
Revenue - -
Share based payments (162,425) (288,906)
Administrative expenses (810,702) (1,085,069)
Operating loss (973,127) (1,373,975)
Finance income 7,312 1,585
Loss before income tax (965,815) (1,372,390)
Income tax expense - -
Loss for the period (965,815) (1,372,390)
============= =============
Other comprehensive
income/(loss):
Currency translation
differences (2,294,117) 3,270,705
------------- -------------
Other comprehensive
income/(loss) for the
period (2,924,117) 3,270,705
============= =============
Total comprehensive
income/(loss) for the
period (3,259,932) 1,898,315
============= =============
Earnings per share
expressed in pence per
share:
Basic and diluted (in Note
pence) 7 (0.61) (0.92)
============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30.06.23 31.12.22 30.06.22
unaudited audited unaudited
GBP GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment - - 7,818,025
Intangible assets - - 32,752,758
- - 40,570,783
------------- ------------- -------------
CURRENT ASSETS
Assets classified as held for
sale 41,785,894 42,937,116 -
Trade and other receivables 634,310 916,963 862,775
Cash and cash equivalents 584,837 2,444,093 2,453,607
------------- ------------- -------------
43,005,041 46,298,172 3,316,382
------------- ------------- -------------
TOTAL ASSETS 43,005,041 46,298,172 43,887,165
============= ============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 137,145 406,207 221,966
------------- ------------- -------------
TOTAL LIABILITIES 137,145 406,207 221,966
============= ============= =============
NET CURRENT ASSETS 42,867,896 45,891,965 3,094,416
------------- ------------- -------------
NET ASSETS 42,867,896 45,891,965 43,665,199
============= ============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital 31,748,067 31,747,809 31,707,573
Share premium 46,754,815 46,681,635 43,451,199
Exchange difference reserve (1,543,545) 750,572 788,667
Retained earnings (34,091,441) (33,288,051) (32,282,240)
TOTAL EQUITY 42,867,896 45,891,965 43,665,199
============= ============= =============
CONDOR GOLD PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30.06.23 31.12.22 30.06.22
unaudited audited unaudited
GBP GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment - - 4,309,955
Investments 751,977 751,977 751,977
Other receivables 44,944,687 43,500,630 41,614,215
45,696,664 44,252,607 46,676,147
------------- ------------- -------------
CURRENT ASSETS
Assets classified as held for
sale 4,474,402 4,474,402 -
Trade and other receivables 77,772 333,101 81,971
Cash and cash equivalents 542,713 2,407,187 2,390,197
------------- ------------- -------------
5,094,887 7,214,690 2,472,168
------------- ------------- -------------
TOTAL ASSETS 50,791,551 51,467,297 49,148,315
============= ============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 147,626 249,357 343,663
------------- ------------- -------------
TOTAL LIABILITIES 147,626 249,357 343,663
============= ============= =============
NET CURRENT ASSETS 4,947,261 6,965,333 2,128,505
------------- ------------- -------------
NET ASSETS 50,643,925 51,217,940 48,804,652
============= ============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital 31,748,067 31,747,809 31,707,573
Share premium 46,754,815 46,681,635 43,451,199
Retained earnings (27,858,957) (27,211,504) (26,354,120)
TOTAL EQUITY 50,643,925 51,217,940 48,804,652
============= ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2023
Share Share Exchange Retained
capital premium difference earnings
reserve Total equity
GBP GBP GBP GBP GBP
------------ ----------- ------------ ------------- -------------
At 1 January
2022 29,326,143 42,528,627 (2,482,038) (31,198,756) 38,173,976
------------ ----------- ------------ ------------- -------------
Loss for the
period - - - (1,372,390) (1,372,390)
Other comprehensive - - - - -
income:
Currency translation
differences - - 3,270,705 - 3,270,705
Total comprehensive
income - - 3,270,705 (1,372,390) 1,898,315
------------ ----------- ------------ ------------- -------------
New shares issued 2,381,430 922,572 - - 3,304,002
Issue costs - - - - -
Share based payment - - - 288,906 288,906
------------ ----------- ------------ ------------- -------------
Total contributions
by & distributions
to owners of
the parent, recognised
directly in equity 2,381,430 922,572 - 288,906 3,592,908
At 30 June 2023 31,707,573 43,451,199 788,667 (32,282,240) 43,665,199
------------ ----------- ------------ ------------- -------------
At 1 January
2023 31,747,809 46,681,635 750,572 (33,288,051) 45,891,965
------------ ----------- ------------ ------------- -------------
Loss for the
period - - - (965,815) (965,815)
Other comprehensive - - - - -
income:
Currency translation
differences - - (2,294,117) - (2,294,117)
Total comprehensive
income - - (2,294,117) (965,815) (3,259,932)
------------ ----------- ------------ ------------- -------------
New shares issued 258 73,180 - - 73,438
------------ ----------- ------------ ------------- -------------
Issue costs - - - - -
------------ ----------- ------------ ------------- -------------
Share based payment - - - 162,425 162,425
------------ ----------- ------------ ------------- -------------
Total contributions
by & distributions
to owners of
the parent, recognised
directly in equity 258 73,180 - 162,425 235,863
------------ ----------- ------------ ------------- -------------
At 30 June 2023 31,748,067 46,754,815 (1,543,545) (34,091,441) 42,867,896
------------ ----------- ------------ ------------- -------------
CONDOR GOLD PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2023
Share Share premium Retained Total
capital earnings
GBP GBP GBP GBP
At 1 January 2022 29,326,143 42,528,627 (25,461,018) 46,393,752
----------- -------------- ------------- ------------
Comprehensive income:
Loss for the period - - (1,182,008) (1,182,008)
Total comprehensive
income - - (1,182,008) (1,182,008)
----------- -------------- ------------- ------------
New shares issued 2,381,430 922,572 - 3,354,002
Issue costs - - - -
Share based payment - - 288,906 288,906
Total transactions with
owners recognised directly
in equity 2,381,430 922,572 288,906 3,592,908
----------- -------------- ------------- ------------
At 30 June 2022 31,707,573 43,451,199 (26,354,120) 48,804,652
----------- -------------- ------------- ------------
At 1 January 2023 31,747,809 46,681,635 (27,211,504) 51,217,940
Comprehensive income:
Loss for the period - - (809,878) (809,878)
Total comprehensive
income - - (809,878) (809,878)
----------- -------------- ------------- ------------
New shares issued 258 73,180 - 73,438
Issue costs - - - -
Share based payment - - 162,425 162,425
Total transactions with
owners recognised directly
in equity 258 73,180 162,425 235,863
----------- -------------- ------------- ------------
At 30 June 2023 31,748,067 46,754,815 (27,858,957) 50,643,925
----------- -------------- ------------- ------------
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2023
Six months Six months
to 30.06.23 to 30.06.22
unaudited unaudited
GBP GBP
Loss before tax (965,815) (1,372,390)
Share based payment 162,425 288,906
Depreciation charges 27,461 34,301
Finance income (7,312) (1,585)
------------- -------------
(783,241) (1,050,768)
Increase in trade and other
receivables 282,653 (87,082)
(Decrease)/increase in trade
and other payables (269,062) (26,210)
Net cash used in operating activities (769,650) (1,164,060)
------------- -------------
Cash flows from investing activities
Purchase of intangible fixed
assets (1,067,405) (1,805,216)
Purchase of tangible fixed assets (11,014) (62,363)
Interest received 7,312 1,585
Net cash used in investing activities (1,071,107) (1,865,994)
------------- -------------
Cash flows from financing activities
Net proceeds from share issue 73,438 3,304,002
Net cash generated from financing
activities 73,438 3,304,002
------------- -------------
Increase/(decrease) in cash
and cash equivalents (1,767,319) 273,948
Cash and cash equivalents at
beginning of period 2,444,093 2,072,046
Exchange gains on cash and bank (91,937) 107,613
------------- -------------
Cash and cash equivalents at
end of period 584,837 2,453,607
------------- -------------
CONDOR GOLD PLC
CONDENSED COMPANY STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2023
Six months Six months
to 30.06.23 to 30.06.22
unaudited unaudited
GBP GBP
Cash flows from operating activities
Loss before tax (809,878) (1,182,008)
Share based payment 162,425 288,906
Finance income (4,899) (1,585)
(652,352) (894,687)
(Increase) / Decrease in trade
and other receivables 255,329 (48,642)
Increase / (Decrease) in trade
and other payables (101,731) 174,207
Net cash used in operating activities (498,754) (769,122)
------------ ------------
Cash flows from investing activities
Purchase of tangible fixed assets - -
Interest received 4,899 1,585
Loans to subsidiaries (1,444,057) (2,102,735)
Net cash used in investing activities (1,439,158) (2,101,150)
------------ ------------
Cash flows from financing activities
Proceeds from share issue
73,438 3,304,002
------------ ------------
Net cash from financing activities 73,438 3,304,002
------------ ------------
Increase / (Decrease) in cash
and cash equivalents (1,864,474) 433,730
------------ ------------
Cash and cash equivalents at
beginning of year 2,407,187 1,956,467
Cash and cash equivalents at
end of year 542,713 2,390,197
============ ============
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2023
1. COMPLIANCE WITH ACCOUNTING STANDARDS
Basis of preparation
This condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union and also as issued by the International
Accounting Standards Board ("IASB"). It has been prepared using
accounting policies consistent with International Financial
Reporting Standards ("IFRS") and should be read in conjunction with
the annual financial statements for the year ended 31 December 2022
which have been prepared in accordance with IFRS as adopted by the
EU and as issued by the IASB.
The interim results for the six months to 30 June 2023 are
unaudited and the accounts in this interim report do not therefore
constitute statutory accounts in accordance with Section 434 of the
Companies Act 2006.
Statutory accounts for the year ended 31 December 2022 have been
filed with the Registrar of Companies and the auditor's report was
unqualified and did not contain any statement under Section 498(2)
or 498(3) of the Companies Act 2006. The statutory accounts
contained a material uncertainty in respect of going concern which
referred to the Group's need to raise further funding in order to
progress exploration activity. There were no other matters drawn to
the attention of the users of the financial statements in the
auditor's report.
The interim financial information for the six months ended 30
June 2023 was approved by the Board on X September 2023.
The directors do not propose an interim dividend.
The directors consider the going concern basis to be appropriate
based on cash flow forecasts and projections and current levels of
commitments, and cash and cash equivalents. Additionally, the
company raised GBP1,000,000 as a result of an exercise in warrants
in July 2023. It is expected this will fund future plans for at
least 6 months. The company continues to enjoy the support of its
chairman, Jim Mellon. The comparative period presented is that of
the six months ended 30 June 2022.
The Directors are of the opinion that due to the nature of the
Group's activities and the events during that period these are the
most appropriate comparatives for the current period. Copies of
these financial statements are available on the Company's website
and on www.Sedar.com.
2. ACCOUNTING POLICIES
The interim financial information for the six months ended 30
June 2023 has been prepared on the basis of the accounting policies
set out in the most recently published financial statements for the
Group for the year ended 31 December 2022, which are available on
the Company's website www.condorgold.com and on SEDAR at
www.sedar.com , as the Company does not anticipate the addition of
new standards to the Group's results for the year ended 31 December
2022 would materially impact the results.
3. REVENUE AND SEGMENTAL REPORTING
The Group has not generated any revenue during the period. The
Group's operations are located in the United Kingdom and
Nicaragua.
The following is an analysis of the carrying amount of segment
assets, and additions to plant and equipment, analysed by
geographical area in which the assets are located.
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2023
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the six-month
period ended 30 June 2023 are as follows:
UK Nicaragua Consolidation
Six months Six months Six months
to 30.06.2023 to 30.06.2023 to 30.06.2023
GBP GBP GBP
RESULTS
Operating loss (942,557) (30,570) (973,127)
Finance income 7,312 - 7,312
Income tax - - -
Loss for period (935,245) (30,570) (965,815)
---------------- --------------- ---------------
Assets
All transactions between each reportable segment are accounted
for using the same accounting policies as the Group uses.
UK Nicaragua Consolidation
30.06.2023 30.06.2023 30.06.2023
GBP GBP GBP
ASSETS
Total assets 5,844,460 37,999,560 43,844,020
UK Nicaragua Consolidation
30.06.2023 30.06.2023 30.06.2023
GBP GBP GBP
LIABILITIES
Total liabilities (147,626) 10,481 (137,145)
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2023
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group's results by reportable segment for the six-month
period ended 30 June 2022 are as follows:
UK Nicaragua Consolidation
Six months Six months Six months
to 30.06.2022 to 30.06.2022 to 30.06.2022
GBP GBP GBP
RESULTS
Operating loss (1,288,746) (85,229) (1,373,975)
Finance income 1,585 - 1,585
Income tax - - -
Loss for period (1,287,161) (85,229) (1,372,390)
---------------- --------------- ---------------
Assets and liabilities
All transactions between each reportable segment are accounted
for using the same accounting policies as the Group uses.
UK Nicaragua Consolidation
30.06.2022 30.06.2022 30.06.2022
GBP GBP GBP
ASSETS
Total assets 7,531,696 37,025,917 44,557,613
UK Nicaragua Consolidation
30.06.2022 30.06.2022 30.06.2022
GBP GBP GBP
LIABILITIES
Total liabilities (343,663) 121,697 (221,966)
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2023
4. TAXATION
There is no current tax charge/(credit) for the period. The
condensed financial statements do not include a deferred tax asset
in respect of unused tax losses as the Directors are unable to
assess that there will be probable future taxable profits available
against which the unused tax losses can be utilised.
5. INTANGIBLE FIXED ASSETS
During the six months ended 30 June 2023, the Group acquired
assets with a cost of GBP1,067,405 (six months ended 30 June 2022:
GBP1,805,216).
6. EQUITY-SETTLED SHARE OPTION SCHEME AND WARRANTS
The estimated fair value of the options and warrants granted and
charged to profit or loss in the period was;
Six Six
months months
to 30.06.2023 to 30.06.2022
unaudited unaudited
GBP GBP
Share options charge 162,425 288,906
The fair value of options has been recognised within profit or
loss, on a pro-rata basis over the vesting period. This fair value
has been calculated using the Black-Scholes option pricing model.
The latest inputs into the model were as follows:
2023 2022
Share price 25.5p 25.5p
Exercise price 33p 33p
Expected volatility 35.6% 35.6%
Expected life (yrs.) 5 5
Risk free rate 0.5% 0.5%
Expected dividend yield - -
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2023
7. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the loss
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
A reconciliation is set out below:
Six months Six months
to 30.06.23 to 30.06.22
Basic EPS
Loss for the period (965,815) (1,372,390)
Weighted average number
of shares 158,739,611 147,667,937
Earnings per share (in
pence) (0.61) (0.92)
============= ===============
In accordance with IAS 33, as the Group has reported a loss
for the period, diluted earnings per share are not included.
8. CALLED-UP SHARE CAPITAL
30.06.23 30.06.22
GBP GBP
Allotted and fully paid
180,790,824 Ordinary shares of GBP0.001p
each and 158,629,530 Deferred shares
of GBP0.199 (30 June 2022: 158,916,429
ordinary shares of 20p each) 31,748,067 31,707,573
============= ===============
CONDOR GOLD PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2023
Share issuances in the six months ended 30 June 2023 were as
follows:
Nature of Issue price Date of share Number of Total Cumulative
issuance per Ordinary issuance shares issued number of
share ordinary shares
issued
1 January
Opening 2023 180,532,491
Bonus issue 24 pence 11 April 2023 258,333 180,790,824
During the period, there was a bonus issue of shares issued to
the CEO, Mark Child as part of his remuneration package.
9. RELATED PARTY TRANSACTIONS
During the half year the Company received consultancy advice
from the following related parties:
Company Related party Six Six
months months
to 30.06.2023 to 30.06.2022
GBP GBP
-------------------------- ----------------- --------------- ---------------
Burnbrae Limited Jim Mellon 12,500 12,500
Burnbrae Limited Denham Eke 7,500 -
Promaco Limited Ian Stalker 17,475 20,400
AMC Geological Advisory Andrew Cheatle 10,417 4,167
10. SEASONALITY OF THE GROUPS OPERATIONS
There are no seasonal factors which affect the trade of any
company in the Group.
11. POST BALANCE SHEET EVENTS
In July 2023, GBP1,000,000 was raised as a result of an exercise
in warrants. The warrants were exercised by the Chairman, Jim
Mellon.
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END
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