REG - Condor Gold PLC - Annual Financial Report
17/05/2024 07:00
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RNS Number : 8163O Condor Gold PLC 17 May 2024
Condor Gold Plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey GU7 1JX
Telephone +44 020 74081067
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION (EU) 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM BY VIRTUE OF THE EU (WITHDRAWAL) ACT 2018 ("MAR").
17 May 2024
Condor Gold Plc
("Condor Gold","Condor" or the "Company")
Condor Gold Announces Its Audited Results For The Year Ended 31 December 2023
and Annual General Meeting of Shareholders
Condor Gold (AIM: CNR; TSX: COG) is pleased to announce its audited results
for the year ended 31 December 2023 and provides notification that the Annual
General Meeting of shareholders of the Company will be held at 3:00 p.m. on 28
June 2024 at 7/8 Innovation Place, Godalming, Surrey, GU7 1JX, United Kingdom.
The Company has published the formal notice of meeting (the "Notice") on its
website (www.condorgold.com) together with the related voting proxy form for
use by shareholders. A copy of the Notice, together with the proxy voting
form, the Annual Report for the year ended 31 December 2023 will be posted
to all shareholders who have elected to receive them in hard copy.
Highlights for twelve months to 31 December 2023
· There continues to be significant interest in the sale of the
Company's assets. On 5 December 2023 the Company announced that it was in
receipt of 5 non-binding offers, 3 site visits had been completed and advanced
discussions were taking place with 2 gold producers. Discussions are still
continuing, and the Board is optimistic that a resolution should be concluded
in the near future.
· The current open pit Mineral Resource Estimate is 8,693 kt at 3.2 g/t
gold for 893,000 oz gold in the indicated mineral resource category and 3,026
kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource
category. The underground Mineral Resource Estimate is 979 kt at 6.2 g/t gold
for 194,000 oz gold in the indicated mineral resource category and 5,615 kt at
5.0 g/t gold for 898,000 oz gold in the inferred mineral resource category.
· The current October 2022 Feasibility Study (FS) demonstrates a robust
and economically viable base case for the La India open pit:
o The FS was completed at US$1,600 oz gold, at today's gold price the pit
would push deeper, increasing recovered ounces from open pit mining methods,
the EBITDA increases approximately 100%, the IRR 3 fold.
o Probable Mineral Reserve of 7.3Mt at 2.56g/t gold for 602,000 oz gold
o Production averages 81,545 oz gold per annum for the first 6 years of an
8.4 year mine life
o An Internal Rate of Return ("IRR") of 23% and a post tax, post upfront
capital cost NPV of US$86.9 million using a discount rate of 5% and price of
US$1,600 oz gold (Mineral Reserve Case).
o An IRR of 43% and a post tax, post upfront capital cost NPV of US$205.2
million using a discount rate of 5% and price of US$2,000 oz gold.
o Low initial capital requirement of US$105.5 million (including contingency
and EPCM contract)
o Low average Life of Mine All-in Sustaining Cash Costs of US$1,039 per oz
gold
· Land acquisition continued at the La India open pit and associated
mine site infrastructure. To date, 99.6% of the core areas have been
purchased.
· Site clearance of 14 hectares has been completed for the processing
plant location, including areas for offices, warehouses, a stockpile, and a
buffer zone.
· 400 m west of Cacao deposit a 0.66 g/t gold from an isolated
high-level chalcedonic rock chip sample indicates continuity of the hidden,
deep-seated high-grade mineralised Cacao deposit to the west.
· 2 km east of the Cacao deposit up to 6.29 g/t gold from a 0.5 m thick
quartz breccia in artisanal mine workings confirms mineralisation along the
Cacao trend, which has now been identified along 5km.
· 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.
· On 4 July, 2023 the Company announced it had raised £1 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 Chair, increasing Galloway's shareholding in Condor Gold to 23% of
the ordinary share capital.
· On 12 December, 2023 the Company announced it had raised a total of
£1,851,999 by way of a private placement of new ordinary shares raising
£851,999 and the exercise of £1million worth of warrants by Galloway
Limited, a company wholly owned by Burnbrae Group Limited, which is, in turn,
wholly owned by Jim Mellon, Condor's Chair, increasing Galloway's shareholding
in Condor Gold to 25% of the ordinary share capital.
Post Period Highlights
· As at 16 May 2024, eight companies are under Non-Disclosure
Agreements (NDAs), five non-binding offers received and three site visits
completed. Although none of the non-binding offers have progressed to firm
proposals to date, the Company is in advanced discussions with one gold
producer, while 2 other parties are actively reviewing the Company's assets.
The Board is optimistic that a sale will be concluded in the near future.
Chairman's Statement for the Year Ended 31 December, 2024
Dear Shareholder,
I continue to be impressed by the executive teams' dedication to getting our
project shovel ready. This has elicited considerable interest in the current
sales process, which has been aided by a 20% increase in the gold price since
the lows of 2023.
The focus during the 12-month period to 31 December 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 an 18-month construction timeline.
Such options included going through a financing and construction phase but, as
a single asset, single jurisdiction company without an experienced mine
building team and without gold production from other mines, the Board formed
the view that this would not be in the Company's best interests, and concluded
that it was 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 and significant investment 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 within the 2022
financial year and have remained classified as held for resale in 2023. The
focus for 2024 is to execute a successful sale of the assets while maintaining
a social license to operate at the fully permitted La India Project.
By way of an update on the sales process as at 16 May 2024 there are currently
eight companies under Non-Disclosure Agreements (NDAs), five non-binding
offers received and three site visits completed. Although none of the
non-binding offers have progressed to firm proposals to date, the Company is
in advanced discussions with one gold producer, while 2 other parties are
actively reviewing the Company's assets. The Board is optimistic that a sale
will be concluded in the near future.
Wholly owned, fully permitted, construction ready gold mines, with a
Feasibility Study completed, with potential production of 150,000 oz gold per
annum, in major Gold Districts, with the land acquired and a new SAG Mill
package purchased are rare and in demand by gold producers replenishing
depleting reserves.
Turning to the financial results for the 2023 12-month period, the Group's
loss for the period was £1,701,922 (2022: £2,537,459). The Company raised a
total of £3,250,696 after expenses during the financial period (2022:
£5,574,674). The net cash balance of the Group at 31 December 2023 was
£1,969,249 (2022: £2,444,093). During the period, there was a £2,675,988
foreign exchange loss (2022 £3,232,610 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.
We are very aware of the value of our assets and will not allow them to go at
anything other than a fair price.
I would also like to draw your attention to the Corporate Governance Report on
Pages 31 - 34 which details how we comply with the QCA Code.
Finally, it remains for me to thank our executive and also our team on the
ground in Nicaragua for their unstinting efforts in continuing to maintain and
develop our Project.
Jim Mellon
Chairman
Date: 16 May 2024
Chief Executive Officer's Report
Dear Shareholder,
I am pleased to present Condor Gold Plc's ("Condor", the "Company" or the
"Group") report for the 12-month financial period to 31 December 2023.
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.
The plan is 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 India 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:
· The FS was completed at US$1,600 oz gold, at today's gold price the
pit would push deeper, increasing recovered ounces from open pit mining
methods, the EBITDA increases approximately 100%, the IRR 3 fold.
· 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.
Highlights 1.225 Mtpa PEA La India Open Pit + Feeder Pits:
· The PEA was undertaken at a US$1,550 oz gold price. at today's gold
price the EBITDA roughly doubles
· 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
· The PEA was undertaken at a US$1,550 oz gold price. at today's gold
price the EBITDA roughly doubles
· 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.
Inward Investment Raised
On 4 July 2023 the Company announced it had raised £1 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 eke,
increasing Galloway's shareholding in Condor Gold to 23% of the ordinary share
capital (See RNS for details).
On 12 December, 2023 the Company announced it had raised a total of
£1,851,999 by way of a private placement of new ordinary shares raising
£851,999 and the exercise of £1million worth of warrants by Galloway
Limited, a company wholly owned by Burnbrae Group Limited, which is, in turn,
wholly owned by Jim Mellon, Condor's Chair, increasing Galloway's shareholding
in Condor Gold to 25% of the ordinary share capital.
Mark Child
Chief Executive Officer
Date: 16 May 2024
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Notes Year Ended Year Ended
31.12.23 31.12.22
£ £
Administrative expenses (1,701,922) (2,537,459)
Operating loss 5 (1,701,922) (2,537,459)
Finance income 4 14,745 4,899
Loss before income tax (1,687,177) (2,532,560)
Income tax expense 6 - -
Loss for the year (1,687,177) (2,532,560)
Other comprehensive income:
Other comprehensive income to be reclassified to profit or loss in subsequent
periods:
Currency translation differences (2,675,987) 3,232,610
Other comprehensive income/(loss) for the year (2,675,987) 3,232,610
Total comprehensive income/(loss) for the year (4,363,164) 700,050
Loss attributable to:
Non-controlling interest - -
Owners of the parent (1,687,177) (2,532,560)
(1,687,177) (2,532,560)
Total comprehensive income/(loss) attributable to:
Non-controlling interest - -
Owners of the parent (4,363,164) 700,050
(4,363,164) 700,050
Earnings per share expressed in pence per share:
Basic and diluted (in pence) 8 (1.06) (1.60)
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Notes 31.12.23 31.12.22
£ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 9 - -
Intangible assets 10 - -
- -
CURRENT ASSETS
Assets classified as held for sale 11 42,422,705 42,937,116
Trade and other receivables 13 575,389 916,963
Cash and cash equivalents 1,969,249 2,444,093
44,967,343 46,298,172
TOTAL ASSETS 44,967,343 46,298,172
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 15 187,845 406,207
TOTAL LIABILITIES 187,845 406,207
NET CURRENT ASSETS 44,779,498 45,891,965
NET ASSETS 44,779,498 45,891,965
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 31,767,151 31,747,809
Called up share capital
16
Share premium 49,603,132 46,681,635
Exchange difference reserve (1,925,415) 750,572
Retained earnings (34,665,370) (33,288,051)
44,779,498 45,891,965
Non-controlling interest - -
TOTAL EQUITY 44,779,498 45,891,965
The financial statements were approved and authorised for issue by the Board
of directors on 16 May 2024 and were signed on its behalf by:
M L Child - Chief Executive Officer
Company No: 05587987
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2023
Share Capital Share premium Exchange difference reserve Retained earnings Total Non-Controlling Interest Total Equity
£ £ £ £ £ £ £
At 1 January 2022 29,326,143 42,528,627 (2,482,038) (31,198,756) 38,173,976 - 38,173,976
Comprehensive income:
Loss for the year - - - (2,532,560) (2,532,560) - (2,532,560)
Other comprehensive income:
Currency translation differences - - 3,232,610 - 3,232,610 - 3,232,610
Total comprehensive income - - 3,232,610 (2,532,560) 700,050 - 700,050
New shares issued 2,421,666 4,168,008 - - 6,589,674 - 6,589,674
Issue costs - (15,000) - - (15,000) - (15,000)
Share based payment - - - 443,265 443,265 - 443,265
Total transactions with owners, recognised directly in equity 2,421,666 4,153,008 - 443,265 7,017,939 - 7,017,939
At 31 December 2022 31,747,809 46,681,635 750,572 (33,288,051) 45,891,965 - 45,891,965
Comprehensive income:
Loss for the year - - - (1,687,177) (1,687,177) - (1,687,177)
Other comprehensive income:
Currency translation differences - - (2,675,987) - (2,675,987) - (2,675,987)
Total comprehensive income - - (2,675,987) (1,687,177) (4,363,164) - (4,363,164)
New shares issued 19,342 2,921,497 - - 2,940,839 - 2,940,839
Issue costs - - - - - -
Share based payment - - - 309,858 309,858 - 309,858
Total transactions with owners, recognised directly in equity 19,342 2,921,497 - 309,858 3,250,697 - 3,250,697
At 31 December 2023 31,767,151 49,603,132 (1,925,415) (34,665,370) 44,779,498 - 44,779,498
Share premium reserve represents the amounts subscribed for share capital in
excess of the nominal value of the shares issued, net of cost of issue.
The exchange difference reserve is a separate component of Shareholders'
equity in which the exchange differences, arising from translation of the
results and financial positions of foreign operations that are included in the
Group's Consolidated Financial Statements, are reported.
Retained earnings represent the cumulative net gains and losses recognised in
the consolidated income statement.
CONDOR GOLD PLC
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Notes 31.12.23 31.12.22
£ £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment 9 - -
Investments 12 751,977 751,977
Other receivables 13 46,075,477 43,500,630
46,827,454 44,252,607
CURRENT ASSETS
Assets classified as held for sale 11 4,474,402 4,474,402
Trade and other receivables 13 22,862 333,101
Cash and cash equivalents 1,916,322 2,407,187
6,413,586 7,214,690
TOTAL ASSETS 53,241,040 51,467,297
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables 15 190,329 249,357
TOTAL LIABILITIES 190,329 249,357
NET CURRENT ASSETS 6,223,257 6,965,333
NET ASSETS 53,050,711 51,217,940
SHAREHOLDERS' EQUITY 31,767,151 31,747,809
Called up share capital 16 49,603,132 46,681,635
Share premium (28,319,572) (27,211,504)
Retained earnings
TOTAL EQUITY 53,050,711 51,217,940
The loss for the financial year dealt with in the financial statement of the
parent company was £1,417,926 (2022: £2,193,751).
The financial statements were approved and authorised for issue by the Board
of directors on 16 May 2024 and were signed on its behalf by:
M L Child - Chief Executive Officer
Company No: 05587987
CONDOR GOLD PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
AS AT 31 DECEMBER 2023
Share capital Share premium Retained earnings Total
£ £ £ £
At 1 January 2022 29,326,143 42,528,627 (25,461,018) 46,393,752
Comprehensive income:
Loss for the period - - (2,193,751) (2,193,751)
Total comprehensive income - - (2,193,751) (2,193,751)
New shares issued 2,421,666 4,168,008 - 6,589,674
Issue costs - (15,000) - (15,000)
Share based payment - - 443,265 443,265
Total transactions with owners recognised directly in equity 2,421,666 4,153,008 443,265 7,017,939
At 31 December 2022 31,747,809 46,681,635 (27,211,504) 51,217,940
Comprehensive income:
Loss for the period - - (1,417,926) (1,417,926)
Total comprehensive income - - (1,417,926) (1,417,926)
New shares issued 19,342 2,921,497 - 2,940,839
Issue costs - - - -
Share based payment - - 309,858 309,858
Total transactions with owners recognised directly in equity 19,342 2,921,497 309,858 3,250,697
At 31 December 2023 31,767,151 49,603,132 (28,319,572) 53,050,711
Share premium reserve represents the amounts subscribed for share capital in
excess of the nominal value of the shares issued, net of cost of issue.
Retained earnings represent the cumulative net gains and losses recognised in
the Company's income statement.
CONDOR GOLD PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Note Year Ended Year-Ended
31.12.23 31.12.22
£ £
Cash flows from operating activities
Loss before tax (1,687,177) (2,532,560)
Share based payment 17 309,858 443,265
Depreciation - 68,315
Exchange differences (84,368) 3,187
Finance income 4 (14,745) (4,899)
(1,476,432) (2,022,692)
Decrease / (Increase) in trade and other receivables 341,574 (141,270)
(Decrease) / Increase in trade and other payables (218,362) 158,031
Net cash used in operating activities (1,353,220) (2,005,931)
Cash flows from investing activities
Purchase of tangible fixed assets - held for sale 11 (64,691) (446,853)
Purchase of intangible fixed assets - held for sale 11 (2,012,517) (3,754,742)
Interest received 4 14,745 4,899
Net cash used in investing activities (2,062,463) (4,196,696)
Cash flows from financing activities
Net proceeds from share issue 16 2,940,839 6,574,674
Net cash from financing activities 2,940,839 6,574,674
(Decrease) / Increase in cash and cash equivalents (474,844) 372,047
Cash and cash equivalents at beginning of year 2,444,093 2,072,046
Cash and cash equivalents at end of year 1,969,249 2,444,093
CONDOR GOLD PLC
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Year Ended Year Ended
31.12.23 31.12.22
£ £
Cash flows from operating activities
Loss before tax (1,417,926) (2,193,751)
Share based payment 17 309,858 443,265
Finance income 4 (14,745) (4,899)
(1,122,813) (1,755,385)
Decrease / (Increase) in trade and other receivables 310,239 (299,772)
(Decrease) / Increase in trade and other payables (59,028) 79,901
Net cash used in operating activities (871,602) (1,975,256)
Cash flows from investing activities
Purchase of tangible fixed assets 9 - (164,447)
Interest received 4 14,745 4,899
Loans to subsidiaries 18 (2,574,847) (3,989,150)
Net cash used in investing activities (2,560,102) (4,148,698)
Cash flows from financing activities
Proceeds from share issue 16 2,940,839 6,574,674
Net cash from financing activities 2,940,839 6,574,674
(Decrease) / Increase in cash and cash equivalents (490,865) 450,720
Cash and cash equivalents at beginning of year 2,407,187 1,956,467
Cash and cash equivalents at end of year 1,916,322 2,407,187
Basis of consolidation
The Group financial statements consolidate the accounts of its subsidiaries;
Condor S.A., La India Gold S.A., and La India Inversiones S.A. under the
acquisition method. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control commences
until the date control ceases. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the
entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date on which
control ceases.
All the Group's companies have 31 December as their year-end. Consolidated
financial statements are prepared using uniform accounting policies for like
transactions.
Intercompany transactions, balances and unrealised gains on transactions
between Group companies are eliminated.
Going concern
The Group reviews its going concern status, via comparisons to budgets, cash
flow forecasts, and access to further financing. At the balance sheet date,
the Group had £1,969,249 of cash. In common with many exploration and
development companies, the Company raises finance for its exploration and
technical studies and appraisal activities in discrete tranches to finance its
activities for limited periods only. The directors have identified that
further funding will be required to finance the Group's in-fill drilling and
resources expansion programme in Nicaragua and, inter alia, compliance with
the conditions of the Environmental Permit awarded in regard to the La India
open pit in 2018. The Directors are confident that the Company will be able to
raise these funds, however there is no binding agreement in place to date. The
Directors have also considered significant cost saving exercises to preserve
cashflows. In addition, the timing, quantum, and structure of any asset sale
is currently uncertain. These conditions may cast doubt on the Group and
Company's ability to continue as a going concern. It is not the Company's
intention to cease trading after the potential sale of the Nicaraguan assets.
The Directors have prepared a cash flow forecast which assumes that the Group
and Company is not able to raise additional funds within the going concern
period and if that was the case, the forecasts demonstrate that austerity
measures can be implemented to reduce the Group and Company's cash outflows to
the minimal contracted and committed expenditure while also maintaining the
Group's licences and permits. These forecasts assume that Directors and Key
management personnel salaries are deferred and/or reduced as part of the
austerity measures - notwithstanding the above, further funding would
nonetheless be required in order to continue into operational existence for at
least 12 months from the date of approval of this report and therefore a
material uncertainty exists, which the auditors have made reference to in
their audit report. Based on their assessment of the financial position, the
Directors however have a reasonable expectation that the Group and Company
will be able to continue in operational existence for the next twelve months
and continue to adopt the going concern basis of accounting in preparing these
financial statements.
- Ends -
For further information please visit www.condorgold.com or contact:
Condor Gold plc
Mark Child, CEO
+44 (0) 20 7493 2784
Beaumont Cornish Limited Roland Cornish and James Biddle
+44 (0) 20 7628 3396
SP Angel Corporate Finance Ewan Leggat
LLP
+44 (0) 20 3470 0470
H&P Advisory Limited Andrew Chubb,
Matt Hasson, Jay Ashfield
+44 207 907 8500
Adelaide Capital (Investor Deborah Honig
Relations)
+1-647-203-8793
About Condor Gold plc:
Condor Gold plc was admitted to AIM in May 2006 and dual listed on the TSX in
January 2018. The Company is a gold exploration and development company with a
focus on Nicaragua.
The Company's principal asset is La India Project, Nicaragua, which comprises
of a large, highly prospective land package of 588 sq km comprising of 12
contiguous and adjacent concessions. The Company has filed a feasibility study
technical report dated 25 October 2022 and entitled "Condor Gold Technical
Report on the La India Gold Project, Nicaragua, 2022" (the "2022 FS") which is
available on the Company's SEDAR profile at www.sedar.com and was prepared in
accordance with the requirements of NI 43-101. The 2022 FS indicated that La
India Project hosts a high-grade Mineral Resource Estimate ("MRE") of 9,672 kt
at 3.5g/t gold for 1,088,000 oz gold in the indicated mineral resource
category and 8,642 kt at 4.3 g/t gold for 1,190,000 oz gold in the inferred
mineral resource category. The open pit MRE is 8,693 kt at 3.2 g/t gold for
893,000 oz gold in the indicated mineral resource category and 3,026 kt at 3.0
g/t gold for 291,000 oz gold in the inferred mineral resource category. Total
underground MRE is 979 kt at 6.2 g/t gold for 94,000 oz gold in the indicated
mineral resource category and 5,615 kt at 5.0 g/t gold for 98,000 oz gold in
the inferred mineral resource category.
The 2022 FS replaces the previously reported Preliminary Economic Assessment
("PEA") as presented in the Technical Report filed on SEDAR in October 2021 as
the current technical report for the La India project.
The 2021 PEA considered the expanded Project inclusive of the exploitation of
the Mineral Resources associated to the La India, Mestiza, America and Central
Breccia deposits. 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 PEA
Scenario B presented a post-tax, post upfront capital expenditure NPV of
US$418 million, with an IRR of 54% and 12 month pay-back period, assuming a
US$1,700 per oz gold price, with average annual production of 150,000 oz gold
per annum for the initial 9 years of gold production. The open pit mine
schedules were optimised from designed pits, bringing higher grade gold
forward resulting in average annual production of 157,000 oz gold in the first
2 years from open pit material and underground mining funded out of cashflow.
The 2021 PEA Scenario A presented a post-tax, post upfront capital expenditure
NPV of US$302 million, with an IRR of 58% and 12 month pay-back period,
assuming a US$1,700 per oz gold price, with average annual production of
approximately 120,000 oz gold per annum for the initial 6 years of gold
production. The Mineral Resource estimate and associated Preliminary Economic
Assessment contained in the 2021 PEA are considered a historical estimate
within the meaning of NI 43-101, a qualified person has not done sufficient
work to classify such historical estimate as current, and the Company is not
treating the historical Mineral Resource estimate and associated studies as
current, and the reader is cautioned not to rely upon this data as such.
Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability. The Company believes that the historical Mineral Resource
estimate and Preliminary Economic assessment is relevant to the continuing
development of the La India Project.
In August 2018, the Company announced that the Ministry of the Environment in
Nicaragua had granted the Environmental Permit ("EP") for the development,
construction and operation of a processing plant with capacity to process up
to 2,800 tonnes per day at its wholly-owned La India gold Project ("La India
Project"). The EP is considered the master permit for mining operations in
Nicaragua. Condor has purchased a new SAG Mill, which has mainly arrived in
Nicaragua. Site clearance and preparation is at an advanced stage.
Environmental Permits were granted in April and May 2020 for the Mestiza and
America open pits respectively, both located close to La India. The Mestiza
open pit hosts 92 Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in
the Indicated Mineral Resource category and 341 Kt at a grade of 7.7 g/t gold
(85,000 oz contained gold) in the Inferred Mineral Resource category. The
America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the
Indicated Mineral Resource category and 677 Kt at a grade of 3.1 g/t gold
(67,000 oz) in the Inferred Mineral Resource category. Following the
permitting of the Mestiza and America open pits, together with the La India
open pit Condor has 1.12 M oz gold open pit Mineral Resources permitted for
extraction.
Disclaimer
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
TSX Matters
The Company is relying on the exemption provided for pursuant to Section
602.1 of the TSX Company Manual (the "Manual") from the requirements of the
Manual and the TSX relating to the issue of New Shares Ordinary, including the
requirements of Section 613 of the Manual, as the Company is an "Eligible
Interlisted Issuer" as defined in the Manual.
Qualified Persons
The technical and scientific information in this press release has been
reviewed, verified and approved by Andrew Cheatle, P.Geo., a director of
Condor Gold plc, and Gerald D. Crawford, P.E., the Chief Technical Officer of
Condor Gold plc, each of whom is a "qualified person" as defined by NI 43-101.
Nominated Adviser
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
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:
future development and production plans, projected capital and operating
costs, mine life and production rates, metal or mineral recovery estimates,
Mineral Resource, Mineral Reserve estimates at the La India Project, the
potential to convert Mineral Resources into Mineral Reserves. the Company's
plans to sell the assets of the Company or seek alternatives to an asset sale
and the construction timeline of the La India project upon receipt of
financing. Forward-looking information is often, but not always, identified by
the use of words such as: "seek", "anticipate", "plan", "continue",
"strategies", "estimate", "expect", "project", "predict", "potential",
"targeting", "intends", "believe", "potential", "could", "might", "will" and
similar expressions. Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions of
management at the date the statements are made including, among others,
assumptions regarding: future commodity prices and royalty regimes;
availability of skilled labour; timing and amount of capital expenditures;
future currency exchange and interest rates; the impact of increasing
competition; general conditions in economic and financial markets;
availability of drilling and related equipment; effects of regulation by
governmental agencies; the receipt of required permits; royalty rates; future
tax rates; future operating costs; availability of future sources of funding;
ability to obtain financing and assumptions underlying estimates related to
adjusted funds from operations. Many assumptions are based on factors and
events that are not within the control of the Company and there is no
assurance they will prove to be correct.
Such forward-looking information involves known and unknown risks, which may
cause the actual results to be materially different from any future results
expressed or implied by such forwardlooking information, including, risks
related to: mineral exploration, development and operating risks; estimation
of mineralisation and resources; 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, 2021 dated March 29, 2022 and available under
the Company's SEDAR profile at www.sedar.com (http://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.
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