TIDMCNR
RNS Number : 2449H
Condor Gold PLC
14 November 2018
Condor Gold plc
7th Floor
39 St. James's Street
London
SW1A 1JD
November 14, 2018
Condor Gold plc
("Condor", "Condor Gold" or the "Company")
Condor Gold plc announces its unaudited results for the three
and nine months ended September 30, 2018
Condor Gold (AIM: CNR; OTCQX: CNFGF; TSX: COG) announces that it
has today published its unaudited financial results for the three
and nine month periods ending September 30, 2018 and the
Management's Discussion and Analysis for the same period.
Both of the above have been posted on the Company's website
www.condorgold.com and are also available on SEDAR at www.sedar.com
.
Highlights for the third quarter of 2018
-- The Ministry of the Environment ("MARENA") completed a
positive review of the Environmental and Social Impact Assessment
("ESIA") at the La India Project in Nicaragua (the "Project") and
formally notified the Company to proceed to a Public Consultation
(a public hearing) on July 13, 2018.
-- The turn out was high; a total of 499 people registered and
attended the Public Consultation at which the technical,
environmental and social aspects of a new mine were presented and
discussed in a transparent manner. During presentations of the
Project to community groups and house-to-house visits the Company
received over 600 expressions of interest in/applications for new
jobs.
-- On August 6, 2018, the Company announced that MARENA had
granted the Company the key Environmental Permit for the Project
for the development, construction and operation of a processing
plant with capacity to process up to 2,800 tonnes per day ("tpd").
Gold production is expected to be between 80,000 and 100,000 ounces
("oz") per annum from a single open pit, representing a US$120
million investment and creating an estimated 1,000 new jobs.
-- Positive rock chip assay results and on-going detailed
geological mapping progress the plan to define a major gold
district around La India Project.
Post Period Highlights
-- SRK Consulting (U.K.) Ltd has been engaged to update the
mineral resource for approximately 12,000m drilling since the
previous mineral resource update from December 2014.
Mark Child, Chairman and Chief Executive of Condor Gold,
commented:
"The construction and operation of a new mine at Mina La India
is now materially de-risked. During the third quarter Condor
received the key Environmental Permit to produce approximately
600,000 oz gold from a single open pit. Annual gold production is
expected to be between 80,000 to 100,000 oz. La India has an open
pit gold mineral reserve in the Probable category of 6.9 million
tonnes ("Mt") at 3.0 grams per tonne ("g/t") gold for 675,000 oz
gold. The economics are attractive. All-in sustaining cash costs of
US$700 per ounce gold compare favorably to the current gold price
of US$1,220 per ounce.
"To put the permitted open pit in context, it represents about
34% of the La India Project's total mineral resource; significantly
more gold may be produced, subject to further drilling, technical
studies and additional permits. The La India Project contains a
mineral resource in the indicated category of 9.6 Mt at 3.5 g/t for
1.08 million oz gold and a total mineral resource in the inferred
category of 8.5 Mt at 4.5 g/t for 1.23 million oz gold. The
indicated mineral resource is inclusive of the mineral reserve.
"Condor has engaged SRK Consulting (U.K.) Ltd to update the
mineral resource for approximately 12,000m drilling since the
previous mineral resource update. Internal studies show a new
high-grade feeder pit. Our strategy is to demonstrate that high
grade feeder pits can materially supplement production from the
main La India open pit."
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS TO 30 SEPTEMBER 2018
Nine Nine Three Three months
months months months to 30.09.17
to 30.09.18 to 30.09.17 to 30.09.18 unaudited
unaudited unaudited unaudited GBP
GBP GBP GBP
Revenue - - - -
Share based payments (501,530) (1,849,568) (35,225) (194,171)
Administrative expenses (1,112,147) (2,034,384) (289,963) (344,302)
Note
Operating loss 3 (1,613,677) (3,883,952) (325,188) (538,473)
Finance income 1,797 - 839 -
Loss before income tax (1,611,880) (3,883,952) (324,349) (538,473)
Income tax expense Note - - - -
4
Loss for the period (1,611,880) (3,883,952) (324,349) (538,473)
============= ============= ============= =============
Other comprehensive
income/(loss):
Currency translation
differences 182,041 735,189 (10,370) (786,028)
------------- ------------- ------------- -------------
Other comprehensive
income/(loss) for the
period 182,041 735,189 (10,370) (786,028)
============= ============= ============= =============
Total comprehensive
loss for the period (1,429,839) (3,148,763) (334,719) (1,324,501)
============= ============= ============= =============
Loss attributable to:
Non-controlling interest - - - -
Owners of the parent (1,611,880) (3,883,952) (324,349) (538,473)
------------- ------------- ------------- -------------
(1,611,880) (3,883,952) (324,349) (538,473)
============= ============= =============
Total comprehensive
loss attributable to:
Non-controlling interest - (6,946) - (2,809)
Owners of the parent (1,429,839) (3,141,817) (334,719) (1,327,310)
------------- ------------- ------------- -------------
(1,429,839) (3,148,763) (334,719) (1,324,501)
=============
Loss per share expressed
in pence per share:
Basic and diluted (in Note
pence) 7 (2.46) (6.52) (0.48) (0.88)
============= ============= ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2018
30.09.18 31.12.17 30.09.17
unaudited audited unaudited
GBP GBP GBP
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 191,881 271,319 275,766
Intangible assets 20,431,673 18,927,968 18,355,741
20,623,554 19,199,287 18,631,507
------------- ------------- -------------
CURRENT ASSETS
Trade and other receivables 312,626 320,974 580,942
Cash and cash equivalents 878,272 946,261 2,020,493
------------- ------------- -------------
1,190,898 1,267,235 2,601,435
------------- ------------- -------------
TOTAL ASSETS 21,814,452 20,466,522 21,232,942
============= ============= =============
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 322,218 445,030 354,019
------------- ------------- -------------
TOTAL LIABILITIES 322,218 445,030 354,019
============= ============= =============
NET CURRENT ASSETS 868,680 822,205 2,247,416
------------- ------------- -------------
NET ASSETS 21,492,234 20,021,492 20,878,923
============= ============= =============
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT
Called up share capital Note
8 13,435,868 12,273,077 12,273,076
Share premium 33,662,309 32,426,049 32,426,047
Exchange difference reserve 763,616 581,575 1,374,661
Retained earnings (26,369,559) (25,174,153) (25,109,211)
21,492,234 20,106,548 20,964,573
============= ============= =============
TOTAL EQUITY ATTRIBUTABLE TO:
Non-controlling interest - (85,056) (85,650)
21,492,234 20,021,492 20,878,923
============= ============= =============
CONDOR GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 SEPTEMBER 2018
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
2017 10,582,129 28,875,061 632,526 (23,075,118) 17,014,598 (78,704) 16,935,894
Comprehensive
income:
Loss for the
period - - - (3,883,952) (3,883,952) - (3,883,952)
Other
comprehensive
income:
Currency
translation
differences - - 742,135 - 742,135 (6,946) 735,189
Total
comprehensive
income - - 742,135 (3,883,952) (3,141,817) (6,946) (3,148,763)
New shares
issued 1,690,947 3,550,986 - - 5,241,933 - 5,241,933
Share based
payment - - - 1,849,859 1,849,859 - 1,849,859
At 30 September
2017 12,273,076 32,426,047 1,374,661 (25,109,211) 20,964,573 (85,650) 20,878,923
----------- ----------- ------------ ------------- ------------ ---------------- ------------
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
period - - - (1,611,880) (1,611,880) - (1,611,880)
Other
comprehensive
income:
Transactions
with
non-controlling
interest - - - (85,056) (85,056) 85,056 -
Currency
translation
differences - - 182,041 - 182,041 - 182,041
Total
comprehensive
income 182,041 (1,696,936) (1,514,895) 85,056 (1,429,839)
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 - - - 501,530 501,530 - 501,530
At 30 September
2018 13,435,868 33,662,309 763,616 (26,369,559) 21,492,234 - 21,492,234
----------- ----------- ------------ ------------- ------------ ---------------- ------------
CONDOR GOLD PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 SEPTEMBER 2018
Nine months Nine months
to 30.09.18 to 30.09.17
unaudited unaudited
GBP GBP
Cash flows from operating activities
Loss before tax (1,611,880) (3,883,952)
Share based payment 501,530 1,849,859
Depreciation charges 91,350 75,601
Impairment charge of intangible - -
fixed assets
Finance income (1,797) -
------------- -------------
(1,020,797) (1,958,492)
(Increase)/decrease in trade
and other receivables 8,351 (35,691)
Increase/(decrease) in trade
and other payables (122,813) 2,468
Net cash absorbed in operating
activities (1,135,259) (1,991,715)
------------- -------------
Cash flows from investing activities
Purchase of intangible fixed
assets (1,314,117) (2,506,191)
Purchase of tangible fixed assets (13,571) (118,216)
Interest received 1,797 -
Net cash absorbed in investing
activities (1,325,891) (2,624,407)
------------- -------------
Cash flows from financing activities
Net proceeds from share issue 2,399,051 5,241,933
Net cash generated in financing
activities 2,399,051 5,241,933
------------- -------------
Increase / (decrease) in cash
and cash equivalents (62,099) 625,811
Cash and cash equivalents at
beginning of period 946,261 583,610
Exchange losses on cash and
bank (5,890) 811,072
------------- -------------
Cash and cash equivalents at
end of period 878,272 2,020,493
- 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
Numis Securities Limited John Prior and James Black
+44 (0) 20 7260 1000
Blytheweigh Tim Blythe, Camilla Horsfall and Megan
Ray
+44 (0) 20 7138 3204
About Condor Gold plc:
Condor Gold plc was admitted to AIM on 31 May 2006. The Company
is a gold exploration and development company with a focus on
Central America.
In August 2018, the Company announced that the Ministry of the
Environment 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, The EP
is considered to be the master permit for mining operations in
Nicaragua. Condor published a Pre-Feasibility Study ("PFS") on its
wholly owned La India Project in Nicaragua 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 million tonnes ("Mt") at 3.0 grams per tonne ("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 in the
indicated category of 9.6 Mt at 3.5 g/t for 1.08 million oz gold
and a total mineral resource in the inferred category of 8.5 Mt at
4.5 g/t for 1.23 million oz gold. 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.
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 such term is
defined in NI 43-101.
David Crawford, Chief Technical Officer of the Company and a
Qualified Person as defined by NI 43-101, has approved the written
disclosure in this press release.
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 Company's plans, the
increase in future gold production at La India, the mineral
resources, mineral reserves and production rate and operational
activities 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, 2017 dated March 29, 2018, available
under the Company's SEDAR profile at www.sedar.com.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. The Company disclaims any intention
or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
QRTFMMMMVFRGRZM
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