GODALMING,
Both of the above have been posted on the Company’s website www.condorgold.com and are also available under the Company’s SEDAR profile at www.sedar.com.
Highlights for the three and six months to
- On
March 10, 2022 , the Company announced that all assay results have been received for an 8,004 m infill drilling programme on the fully permitted high-grade La Mestiza Open Pit Mineral Resource atLa India Project .- 6.3 m true width at 6.84 g/t gold from 31.45 m (drill hole LIDC568), approximately 50 m below surface outcrop (which occurs on a rise).
- 4.1 m true width at 15.23 g/t gold from 47.80 m (drill hole LIDC514) approximately 40 m below surface.
- 3.6 m true width at 29.1 g/t gold from 105.70 m (drill hole LIDC471) approximately 85 m below surface.
- A significant new drill intercept within the
La India Open Pit of 34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill depth including 6.0 m at 4.3 g/t gold, 2.0 m at 5.3 g/t gold and 3.65m at 8.75g/t gold (drill hole LIGT536). 28.7 m true width at 2.62 g/t gold in the hanging-wall of historic mine workings (drill hole LIGT528) (collectively, the “New Drill Intercepts”). - Completed the technical studies needed for a Definitive Feasibility Study covering the La India open pit, the processing plant facility and location, tailings storage facility, waste dump locations, explosive magazine, power supply, surface hydrology, hydrogeology (dewatering the pit), geochemistry, metallurgy, environmental and social.
- Continued with acquisitions of land 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.
- Completion in June of a private placement of 11,607,149 units of the Company at a price of 28p per unit, including a Directors’ subscription of 1,833,573 units to raise in aggregate gross proceeds of £3,250,000 before expenses. Each unit was comprised of one new ordinary share with a nominal or par value of 20p per share and one-half of one ordinary share purchase warrant. Each whole warrant, which is unlisted and fully transferable, entitles the holder thereof to purchase one ordinary share at a price of 35p for a period of 36 months. The Placing was arranged directly by the Company with institutional and other investors and its broker SP Angel.
“Condor made significant advances during the 6 month period de-risking the fully permitted
Chairman’s Statement For The Three And Six Months to
Dear Shareholder,
I am pleased to present Condor Gold Plc’s (“Condor”, the “Company” or the “Group”, www.condorgold.com or if you are viewing from
The focus during the 6 month period has been the finalisation of the technical studies at
On 4th
During the first half of 2022, the Company has been focused on de-risking
- A new geological model to FS level has been completed. It includes a lithological, weathering and structure model. It incorporates approximately 3,500 m of infill drilling completed in 2021.
- The Tailings Storage Facility (“TSF”) and 2 water retention ponds have been fully designed and engineered with drawings one step short of “issued for construction”, which is beyond a FS level detail of design.
Tierra Group Inc ,Denver, Colorado has completed site visits and is conducting the engineering studies. 23 geotechnical drill holes and 55 geotechnical test pits have been completed. - The stormwater attenuation structure at La Simona has been designed to FS level.
- Completion of the design of the site wide water balance (“SWWB”), including a surface water management plan by
SRK Consulting (UK) Limited (“SRK”). SRK’s work includes the area of the permitted La India, America and Mestiza open pits. The ultimate objective of the exercise is to produce engineering plans for the installation of the physical components of a management system, including the piping, pumping and structural requirements that will satisfy Nicaraguan authorities and at the same time meet the design standards for a feasibility study. The SWWB will include consideration of the pit dewatering contributions (i.e. subsurface hydrology). SRK’s remit includes an emphasis on training and capacity building for the local Condor team to ensure full ownership and facilitate implementation and sustainability of the SWWB. - Hydrogeology / pit water management - Condor successfully intercepted the deepest level of the 1950s-era underground mine workings, providing confidence that the said workings are suitable to tap in to, in order to draw down ground water levels and support depressurization of the pit slopes. A test borehole close to the historical mineshaft was drilled in
November 2021 and additional boreholes were drilled to the south and are locations for the long-term pumping station. - The processing plant designs to FS level have been completed by Hanlon Engineering (owned by GR Engineering Services in
Australia ) using the newSAG Mill packaged purchased by Condor inFebruary 2021 . The processing plant designed has been laid out with the ability to double capacity from 2,800tpd. - Site preparation and clearance of 14 hectares around the location of the processing plant has been completed.
- Pit Geotechnical – approximately 2,800 m of geotechnical drilling was completed by
December 2021 . Pit angles to FS level have been received and designed by SRK. This involved oriented core drilling, followed by televiewer logging. SRK’s geotechnical report is currently subject to a third party review. - Mine and waste dump schedules for a number of mining scenarios have been completed to a level that can be submitted to MARENA. The FS level mine and waste dump schedules have been completed.
- The power studies completed to FS level. Several meetings have been held with the
Ministry of Energy andMines . National grid electricity pylons are located 700 meters from the processing plant. Government is building a new electricity sub-station 12km from the processing plant; designs for supplying grid power via the new sub-station are underway. - The compensation plan under the local law is to replace every tree removed with 10 new trees. Condor has a tree nursery which currently has approximately 8,000 trees.
The Company’s twin strategy remains the construction and operation of a base case processing plant with capacity of up to 2,800 tonnes per day (“tpd”) capable of producing approximately 100,000 oz of gold per annum using the complete new
The Company continues to enhance its social engagement and activities in the community, thereby maintaining our social licence to operate. Condor has strengthened its community team and stepped up social activities and engagement. The main focus locally is the drinking water programme, implemented in
As of the date of this document, the ability of the Company to operate has not been materially affected by the on-going Covid-19 pandemic. The situation is kept under close review by management and the Board; certain measures have and will be taken as appropriate to ensure the health and safety of employees and contractors in this regard and to reduce the potential spread of the virus within the local community.
In
Turning to the financial results for the six months to
To conclude, Condor made significant advances during the 6 month period de-risking the fully permitted
Chairman and CEO
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS TO
Six months to unaudited £ | Six months to unaudited £ | Three months to unaudited £ | Three months to unaudited £ | ||||||||||
Revenue | - | - | - | - | |||||||||
Share based payments | (288,906 | ) | (199,591 | ) | (126,747 | ) | (111,320 | ) | |||||
Administrative expenses | (1,085,069 | ) | (814,269 | ) | (579,094 | ) | (390,022 | ) | |||||
Operating loss | (1,373,975 | ) | (1,013,860 | ) | (705,841 | ) | (501,342 | ) | |||||
Finance income | 1,585 | - | 1,330 | - | |||||||||
Loss before income tax | (1,372,390 | ) | (1,013,860 | ) | (704,511 | ) | (501,342 | ) | |||||
Income tax expense | - | - | - | - | |||||||||
Loss for the period | (1,372,390 | ) | (1,013,860 | ) | (704,511 | ) | (501,342 | ) | |||||
Other comprehensive income/(loss): | |||||||||||||
Currency translation differences | 3,270,705 | (624,628 | ) | 2,605,881 | (202,236 | ) | |||||||
Other comprehensive income/(loss) for the period | 3,270,705 | (624,628 | ) | 2,605,881 | (202,236 | ) | |||||||
Total comprehensive income/(loss) for the period | 1,898,315 | (1,638,488 | ) | 1,901,370 | (703,578 | ) | |||||||
Earnings per share expressed in pence per share: | |||||||||||||
Basic and diluted (in pence) | Note 7 | (0.92 | ) | (0.78 | ) | (0.48 | ) | (0.37 | ) | ||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
unaudited £ | audited £ | unaudited £ | ||||||
ASSETS: | ||||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment | 7,818,025 | 7,473,433 | 7,495,031 | |||||
Intangible assets | 32,752,758 | 28,100,980 | 24,096,294 | |||||
40,570,783 | 35,574,413 | 31,591,325 | ||||||
CURRENT ASSETS | ||||||||
Trade and other receivables | 862,775 | 775,693 | 196,347 | |||||
Cash and cash equivalents | 2,453,607 | 2,072,046 | 3,005,389 | |||||
3,316,382 | 2,847,739 | 3,201,736 | ||||||
TOTAL ASSETS | 43,887,165 | 38,422,152 | 34,793,061 | |||||
LIABILITIES: | ||||||||
CURRENT LIABILITIES | ||||||||
Trade and other payables | 221,966 | 248,176 | 134,519 | |||||
TOTAL LIABILITIES | 221,966 | 248,176 | 134,519 | |||||
NET CURRENT ASSETS | 3,094,416 | 2,599,563 | 3,067,217 | |||||
NET ASSETS | 43,665,199 | 38,173,976 | 34,658,542 | |||||
SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT | ||||||||
Called up share capital | 31,707,573 | 29,326,143 | 26,983,286 | |||||
Share premium | 43,451,199 | 42,528,627 | 40,858,206 | |||||
Exchange difference reserve | 788,667 | (2,482,038 | ) | (2,986,729 | ) | |||
Retained earnings | (32,282,240 | ) | (31,198,756 | ) | (30,196,221 | ) | ||
TOTAL EQUITY | 43,665,199 | 38,173,976 | 38,658,542 | |||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT
Share capital | Share premium | Exchange difference reserve | Retained earnings | Total equity | |||||
£ | £ | £ | £ | £ | |||||
At | 23,732,526 | 37,175,626 | (2,362,101 | ) | (29,381,952 | ) | 29,164,099 | ||
Loss for the period | - | - | - | (1,013,860 | ) | (1,013,860 | ) | ||
Other comprehensive income: | - | - | - | - | - | ||||
Currency translation differences | - | - | (624,628 | ) | - | (624,628 | ) | ||
Total comprehensive income | - | - | (624,628 | ) | (1,013,860 | ) | (1,638,488 | ) | |
New shares issued | 3,250,760 | 3,682,580 | - | - | 6,933,340 | ||||
Issue costs | - | - | - | - | - | ||||
Share based payment | - | - | - | 199,591 | 199,591 | ||||
Total contributions by & distributions to owners of the parent, recognised directly in equity | 3,250,760 | 3,682,580 | - | 199,591 | 7,132,931 | ||||
At | 26,983,286 | 40,858,206 | (2,986,729 | ) | (30,196,221 | ) | 34,658,542 |
At | 29,326,143 | 42,528,627 | (2,482,038 | ) | (31,199,756 | ) | 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 | 31,707,573 | 43,451,199 | 788,607 | (32,282,240 | ) | 43,665,199 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO
Six months to unaudited £ | Six months to unaudited £ | ||||
Loss before tax | (1,372,390 | ) | (1,013,860 | ) | |
Share based payment | 288,906 | 199,591 | |||
Depreciation charges | 34,301 | - | |||
Finance income | (1,585 | ) | - | ||
(1,050,768 | ) | (814,269 | ) | ||
Increase in trade and other receivables | (87,082 | ) | (81,938 | ) | |
(Decrease)/increase in trade and other payables | (26,210 | ) | (131,893 | ) | |
Net cash used in operating activities | (1,164,060 | ) | (1,028,100 | ) | |
Cash flows from investing activities | |||||
Purchase of intangible fixed assets | (1,805,216 | ) | (2,662,661 | ) | |
Purchase of tangible fixed assets | (62,363 | ) | (4,494,661 | ) | |
Interest received | 1,585 | - | |||
Net cash used in investing activities | (1,865,994 | ) | (7,157,586 | ) | |
Cash flows from financing activities | |||||
Net proceeds from share issue | 3,304,002 | 6,933,340 | |||
Net cash generated from financing activities | 3,304,002 | 6,933,340 | |||
Increase/(decrease) in cash and cash equivalents | 273,948 | (1,252,346 | ) | ||
Cash and cash equivalents at beginning of period | 2,072,046 | 4,159,391 | |||
Exchange gains on cash and bank | 107,613 | 98,344 | |||
Cash and cash equivalents at end of period | 2,453,607 | 3,005,389 | |||
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS TO
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
The interim results for the three and six months to
Statutory accounts for the year ended
The interim financial information for the three and six months ended
The directors do not propose an interim dividend.
While it is noted that the Company will require further finance within 12 months of the date of release of these financial statements, the Directors consider the going concern basis to be appropriate based on cash flow forecasts and projections and current levels of commitments, cash and cash equivalents, together with the ability of the Company to raise finance in
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 three and six months ended
3. REVENUE AND SEGMENTAL REPORTING
The Group has not generated any revenue during the period. The Group’s operations are located in the
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.
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group’s results by reportable segment for the six-month period ended
Six months to £ | Six months to £ | Consolidation Six months to £ | ||||||
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 | ) |
The Group’s results by reportable segment for the three-month period ended
Three months to £ | Three months to £ | Consolidation Three months to £ | ||||||
RESULTS | ||||||||
Operating loss | (646,250 | ) | (59,591 | ) | (705,841 | ) | ||
Interest income | 1,330 | - | 1,330 | |||||
Income tax | - | - | - | |||||
Loss for period | (644,920 | ) | (59,591 | ) | (704,511 | ) |
Assets
All transactions between each reportable segment are accounted for using the same accounting policies as the Group uses.
£ | £ | Consolidation £ | |||
ASSETS | |||||
Total assets | 7,531,696 | 37,025,917 | 44,557,613 |
£ | £ | Consolidation £ | |||
LIABILITIES | |||||
Total liabilities | (343,663) | 121,697 | (221,966) |
3. REVENUE AND SEGMENTAL REPORTING - continued
The Group’s results by reportable segment for the six-month period ended
Six months to £ | Six months to £ | Consolidation Six months to £ | ||||||
RESULTS | ||||||||
Operating loss | (907,876 | ) | (105,984 | ) | (1,013,860 | ) | ||
Finance income | - | - | - | |||||
Income tax | - | - | - | |||||
Loss for period | (907,876 | ) | (105,984 | ) | (1,013,860 | ) |
The Group’s results by reportable segment for the three-month period ended
Three months to £ | Three months to £ | Consolidation Three months to £ | ||||||
RESULTS | ||||||||
Operating loss | (461,202 | ) | (40,140 | ) | (501,342 | ) | ||
Interest income | - | - | - | |||||
Income tax | - | - | - | |||||
Loss for period | (461,202 | ) | (40,140 | ) | (510,342 | ) |
Assets and liabilities
All transactions between each reportable segment are accounted for using the same accounting policies as the Group uses.
£ | £ | Consolidation £ | |||
ASSETS | |||||
Total assets | 7,969,350 | 26,689,192 | 34,658,542 |
£ | £ | Consolidation £ | ||||||
LIABILITIES | ||||||||
Total liabilities | (94,896 | ) | (233,404 | ) | (328,300 | ) |
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
During the three months ended
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 months to unaudited £ | Six months to unaudited £ | Three Months to unaudited £ | Three Months to unaudited £ | ||||
Share options charge | 288,906 | 199,591 | 126,747 | 111,320 |
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:
2022 | 2021 | |||
Share price | 25.5 | 48p | ||
Exercise price | 33p | 48p | ||
Expected volatility | 35.6% | 35.6% | ||
Expected life (yrs.) | 5 | 5 | ||
Risk free rate | 0.5% | 0.5% | ||
Expected dividend yield | - | - | ||
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 to | Six months to | |||||
Basic EPS | ||||||
Loss for the period | (1,372,390 | ) | (1,013,860 | ) | ||
Weighted average number of shares | 147,667,937 | 129,714,411 | ||||
Earnings per share (in pence) | (0.92 | ) | (0.78 | ) | ||
Three months to | Three months to | |||||
Basic EPS | ||||||
Loss for the period | (704,511 | ) | (501,342 | ) | ||
Weighted average number of shares | 147,757,526 | 134,825,204 | ||||
Earnings per share (in pence) | (0.48 | ) | (0.37 | ) | ||
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 | ||||||
£ | £ | |||||
Allotted and fully paid | ||||||
158,916,429 Ordinary shares of 20p each ( | 31,707,573 | 26,983,286 | ||||
Share issuances in the six months ended
Nature of issuance | Issue price per Ordinary share | Date of share issuance | Number of shares issued | Total Cumulative number of ordinary shares issued |
Opening | 146,630,715 | |||
Option exercise | 300,000 | 146,930,715 | ||
Private placement | 11,607,149 | 158,537,864 | ||
On
9. RELATED PARTY TRANSACTIONS
During the half year the Company received consultancy advice from the following related parties:
Company | Related party | Six months to £ | Six months to £ | Three months to £ | Three months to £ |
- | - | - | - | ||
12,500 | 12,500 | 6,250 | 6,250 | ||
AMC Geological Advisory | 20,400 4,167 | 23,156 - | 8,700 4,167 | 25,500 - | |
10. SEASONALITY OF THE GROUPS OPERATIONS
There are no seasonal factors which affect the trade of any company in the Group.
For further information please visit www.condorgold.com or contact:
+44 (0) 20 7493 2784 | |
+44 (0) 20 7628 3396 | |
+44 (0) 20 3470 0470 +44 (0) 20 7907 8500 | |
BlytheRay | +44 (0) 20 7138 3204 |
About
On
In
Environmental Permits were granted in April and
Disclaimer
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
Qualified Persons
The technical and scientific information in this press release has been reviewed, verified and approved by
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
Reference is made to the Company’s press release dated
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: Development Plans for the
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
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.
Source:
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