Condor Gold Share Discussion Threads

[steeplejack] 21/10/2013 07:59

Clearly, the current POG means that any bid is likely to be less than one would have hoped for a couple of years ago.However,with costs around $575 oz,Condor remains in a very strong position,in a relatively friendly Nicaraguan mining climate.I don't see finance as a problem given these considerations.Remember,Dattels is in on the act.

[saturdaygirl] 21/10/2013 07:55

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[2vdm] 21/10/2013 07:51

Any views on the Investors Chronicle article about need for gold price to recover v CNR's residual cash "If not, investors will be nervously eyeing Condor's diminishing cash pile, which stood at £5.1m as at 30 June." What is the risk that as we move towards a BFS CNR are forced to accept a lower bid or have to raise more cash, just to survive?

[jeanesy2] 21/10/2013 07:46

Dont expect much reaction in share price today. Resource upgrade is due any day now . Onwards and upwards please.

[saturdaygirl] 21/10/2013 07:37

RNS .. No unpleasant suprises here !



Mark Child, Chairman and CEO commented:

"Condor has completed metallurgical studies to the Pre-Feasibility Study level of confidence, which show good recovery rates, further de-risking the La India Project. La India Vein Set gold recoveries range from 90% to 92% and the America Vein Set from 94% to 95%. These recovery estimates include a 2% reduction from the reported extractions to allow for plant inefficiencies. Most importantly, there are no unpleasant surprises. SRK Consulting (U.S.) Inc has recommended that gold mineralised ore can be processed by industry-standard whole-ore cyanidation with a standard carbon-in-pulp (CIP) process flowsheet".

[888icb] 21/10/2013 07:34

Another box ticked by CNR. A bid gets closer every day.

[serious punter] 21/10/2013 07:31

Metallurgurical test Results Out :0)

[hedgehog 100] 20/10/2013 15:33

Condor Gold was featured in an "Investors Chronicle" article on Friday 18th. October entitled "The Ideal AIM Portfolio)".

The article includes four tables of different categories of picks:

Value picks (8 companies)
Growth picks (6 companies)
Blue chip picks (4 companies)
Blue sky picks (7 companies)

The seven blue sky picks are GRPH, NANO, HCM, CNR, FAST, BOD, & IOF.

This is what the article says about CNR:

"Condor gold's (CNR) La Linda gold-silver project in the relatively pro-mining nation of Nicaragua as [sic] one of the most promising undeveloped deposits controlled by an exploration company on AIM. So far, Condor has discovered 2.38m ounces of gold and 2.28m ounces of silver at the project, which Condor believes would support a 150,000 ounce per year open pit and underground mining operation. Importantly, estimated cash operating costs of $575 an ounce are in the lower quartile.
The price of gold is the biggest factor in the investment equation, however. The yellow metal has fitfully tumbled from a high of $1,900 an ounce in late 2011 to $1,310 today. If gold can mount a serious recovery in the near future, the fortunes of Condor and its shareholders would undoubtedly be transformed. If not, investors will be nervously eyeing Condor's diminishing cash pile, which stood at £5.1m as at 30 June."

[saturdaygirl] 20/10/2013 12:10

Gold may rise 22.5% but the miners will rise two or three fold with the gold price , CNR being in a particularly good position with a 23000m drilling update due this month .A few reasons to consider CNR at this time with posts from Jibbo
on LSE ,Clive Maund and Morris Hubbartt .





Jibbo LSE
7 Oct '13
CNR



1. There are only 37.87 million shares in issue. The M'Cap is just £50 million and is significantly discounted to the current NPV of £5.50p per share (Edison recently valued CNR at £6.14p per share). Mark Child owns more than 9% of the company so has plenty of 'skin in the game' and Regent Pacific, an investment vehicle for renowned entrepreneurs Jim Mellon and Stephen Dattels have bought 10% of the company after conducting significant due diligence. That is a significant vote of confidence.

2. CNR has 2.4 million oz of high grade gold (4.6g/t) in one location (760k oz of Indicated) and is one of very few resources of that size and grade in the world. The La India District has been increased in size by 44% to an impressive 280km2 of highly prospective land (as shown by the recent geophysics results).

3. CNR has completed a 23,800m drill programme this year and at least 2.7 million oz (with 1.5 million of Indicated) is achievable this year. 1700m of geotechnical drilling has been completed on the India open pit and that will hopefully improve the angles of the pit walls from 40/42 to nearer 50/50 degrees to make them steeper, thus increasing the contained gold by between 25% to 50% and improving the already excellent economics of the project further. The results are due in the next few weeks.

4. Metallurgical tests have now indicated an excellent recovery rate of 94.5%. That compares very favourably with other low cost producers such as MML 89% and AR. 90%. A 540 page report is due in two to four weeks time.

5. CNR already has the biggest resource in mining friendly Nicaragua, despite the presence of B2Gold, which is well established in the country and is also highly profitable. CNR's La India district holds at least 5 million ounces, but probably a lot more and the broker Ocean Equities has suggested that although CNR already has a 2.4 million oz resource, the company has just been' chiselling at the tip of the (gold) iceberg at La India'.

6. The PEA suggested some very robust economics for the project. Based on the current resource a 152,000 oz pa mine with a life of 13 years is already possible (the largest in Nicaragua), with a POST tax NPV of £5.50 per share. High IRR of 33% and an estimated pre-production capital cost of US$180.5m for mine construction and processing construction, with a 3 year pay back period. By the end of this year those figures should be significantly enlarged and improved upon after the completion of a minimum of 23,800m of drilling (but hopefully more if Mestiza is also drilled this year). The aim will be to significantly increase the amount of open-pit ounces so that the PFS can 'front load' the cheaper open pit ounces in the early years of the mine life to pay for underground development later in the cycle.

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Jibbo LSE
7 Oct '13
CNR

Possible sale value


Extorre had a PFS for 1.35 million ounces of indicated gold equivalent resources and 1.05 million ounces of inferred resources and it was bought for $170 per oz. We should soon have (all being well) as much as 1.5 million oz of Indicated and more than 1 million of Inferred. They were operating in the less politically stable Argentina so our resource should be more valuable. If we were to be sold for $170 per oz with 40 million shares in issue and 2.7 million oz that would be £7.60 per share. From memory gold was around the $1600 at the time of the Extorre deal so we should expect less. At $120 per oz we would get £5.40 per share. I think that £4 to £5 is achievable but we could do better if gold were to rally strongly in the next few months.

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Clive Maund
Posted on 08 October 2013


Gold and silver price charts both show classic bottoms says top technical analyst Clive Maund


The well respected chartist Clive Maund who is no gold bug and does his work strictly by the rules of technical analysis concludes that the current price charts for both gold and silver show classic price bottoms for the two precious metals (see below).



The graphs below speak for themselves. The reverse head-and-shoulders pattern is a classic trend reversal pattern. It has been observed many times before in financial charts.





Given the close alliance between the two monetary metals it should be no surprise to see a more volatile version of the same thing in the silver chart:




Could investors be fretting about the stock market when they ought to be just getting on with buying more gold and silver? If the technical charts are right then that is the only conclusion.

Besides is not the more obvious outcome of the Washington debacle this week a last minute solution? That would send stocks soaring back up and take the precious metals up too. QE to infinity is rocket fuel for asset price inflation and gold and silver are the classic inflation hedges.

Maybe that is the fundamental backdrop to this piece of technical analysis.

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Morris Hubbartt
18 October





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[alex hawk] 20/10/2013 11:13

I expect to see at least 22.5% in the next 12 days never mind 12 months - is that what you meant? JORC anticipation should get this moving in the next few weeks

[pillion] 20/10/2013 10:44

CNR will prove to be a good investment for those buying at this time

I expect to see at least 22.5 % increase over the next 12 months;
No advice intended

[warmsun] 18/10/2013 22:51

Thanks very much.

[2vdm] 18/10/2013 16:27

Thanks SG. All looking interesting.

[saturdaygirl] 18/10/2013 12:36

psolomons

And don`t forget Mark Child has been seen with the B2Gold CEO sharing a beer in Managua . I can`t help feeling MC is taking his time as most of our news has been late in the hope that the Gold price recovers before we get an offer , why would you want to sell your best asset at the bottom of the market ?

[plasybryn] 18/10/2013 12:24

Thanks SatGirl.
Only one attendee then.
Just a matter of time now.
Looking good for Medusa, Centamin. Condor & perhaps EMED (mainly copper)

[psolomons] 18/10/2013 11:11

I would be amazed if MC wasn't already talking to potential buyers of the company. There must be a regular dialogue between many of the top miners, especially those in Nicaragua.
I would suggest it's just the price to be finalised which will hopefully be deturmined after a 'Dutch Auction' between a number of interested parties and the POG.
MC can't indicate this, the price would go balistic.

[saturdaygirl] 17/10/2013 21:47

Time to compare CNR to the others , you think we had it rough here !

[saturdaygirl] 17/10/2013 20:25

2vdm

I think British Bulls are hinting the underlying pressure is up .

As we all expect towards the end of the month .

[saturdaygirl] 17/10/2013 20:16

Plasybryn

This is from the LSE thread today

Wondergoals
Posts: 1,180

MC presentation today

Today 14:52

Just back from seeing MC in action. Very good. Here are some highlights:

- Recent drilling
- should enable resource upgrade v soon, expecting 1m+ oz in open pit to be improved to indicated (from around 50/50 inferred / indicated)
- indication overall grades may improve (already good)
- should support 100k+ oz pa from open pit in 1st 5-6 yrs which reduces capital costs / greatly improves payback
- Recent geophysics confirmed potential of wider project - only about 10% explored so far and 3-4 specific new exploration targets identified
- Recent geophysics improves pit angles, reduces cash cost / oz
- Hydrology studies likely to allow further improvement of angles of 1-3 degrees + associated recovery and cost reduction
- Metallurgy report received - 'great metallurgy' i.e. very good recovery rates and straightforward process - will be announced shortly
- Remaining studies required for PFS have been awarded to SRK within last week and will be moving forward asap
- Aiming for PFS in 1st half of 2014
- Have sufficient cash for at least next 12 months ie PFS to BFS (assumes no additional drilling)

In response to question about will CNR take project through to production MC very honest, said the team he has assembled has been to do these phases of work through to BFS. The Co would need to reinvent itself to become a producer. that may be possible - they will consider in detail once PFS is completed. EMPHASISED HIS + BOARD'S FOCUS & RESPONSIBILITY IS TO MAXIMISE SHAREHOLDER VALUE - so decisions will be made which deliver this.

Hope helpful. Anyone else there? Have I missed anything important / got anything wrong?

(Having seen and heard MC today + discussed with some people who are in the business there today and who understand the detail, I am happy to re-instigate my Strong Buy opinion on CNR (not that it ever went away!)

[plasybryn] 17/10/2013 19:55

Looking forward to tonight's feedback

[plasybryn] 17/10/2013 19:54

Looking forward to tonight's feedback.

[jeanesy2] 17/10/2013 19:21

Better volume today. Onwards and upwards tmw please !

[warmsun] 17/10/2013 09:25

share price undervalued....and probable takeover target...a perfect storm... :)