Condor Gold Share Discussion Threads

[usmcgs] 17/2/2016 10:36

38/35 +4.3%

[usmcgs] 17/2/2016 10:34

133k buys 8k sells

[usmcgs] 17/2/2016 10:28

4x 25k buys

[goneawol] 17/2/2016 10:25

Shares in Condor Gold (LON:CNR) have doubled in the past four weeks, following two key announcements and a resurgence in the gold price this year.

The first marked the taking down of the “For Sale” sign at Condor’s flagship La India gold project in Nicaragua on 18 January and, on the whole, the market reaction was muted: the shares dipped by a penny to 18p.

The indifference was perhaps understandable. It was fairly widely understood that stock exchange regulations had mitigated against the company in forcing the sales process out into the open and no one mourned the passing of potential early-stage negotiations out of the spotlight and back into the periphery.

That that process has not yielded an actual sale at this stage is hardly a surprise given that markets have weakened and sentiment towards gold remains uncertain.

But what the official end of the sale process also allowed was more information about the upside at La India to be released publicly.

Accordingly, on 22 January, Condor announced the results of a study for La India conducted using the world-famous Whittle pit optimisation methods.

The shares jumped immediately, sparking a substantial rise across five days of straight gains.

The reasons were not hard to identify: the study boosted the net present value of La India by an average of 56% across three different production scenarios and by 78% if the parameters as set out in the previously worked pre-feasibility study are adhered to. The price-to-book ratio averages 0.12 times

What’s more, the internal rate of return was boosted too, and now averages just over 30% across the three given production scenarios.

Underlying those positive financial developments is an improved mining model, which allows for a 27% increase in the indicated ounces that can come into the La India open pit to 866,000.

Allowing for feeder pits, the amount of gold that can be brought into the operation rises by 29% to 1,066,000 ounces following the Whittle study, while adding an underground scenario boosts overall production to over 1.5mln ounces.

The final icing on the cake is that all-in sustaining cash costs remain at under US$700 per ounce under all scenarios and that to date all assumptions have used a US$100 West Texas oil price.

So good news all round, and a corresponding boost to the share price, helped by director Jim Mellon increasing his shareholding to 10.2%

But there’s still much work to be done.

In Nicaragua, the company’s ongoing dialogue with government officials is progressing well and chief executive Mark Child expects to be able to announce satisfactory progress in due course.

More broadly though, market sentiment remains decidedly uncertain, notwithstanding a recent upward tick in the gold price as safe-haven buying has increased.

Mark Child knows this, and he’s been paring back on the company’s expenses accordingly.

There’s £1.1mln in the bank, which means that short-term survival is assured. In the more medium term the trick will be to keep costs down until some sort of deal can be done on La India, on terms satisfactory to everyone.

The problem with sales process that the company has just come out of was, ultimately, timing. Gold came off during the period to a 6 year low in December 2015, and the company’s share price duly fell too, such that when sales process was terminated it was worth much less than when it began.

At one point, the gold at La India was valued at less than US$5.00 per ounce in the ground compared to recent average M&A transaction prices of US$56 per oz in the ground.

And these are not levels that Child would have been comfortable to sell at.

Nonetheless, the sales process did throw up a few positives.

“We had six companies come through the assets and they liked it,” says Child. “The overall resource is two-and-a-half million ounces but it’s a substantially bigger district with over 40 targets. It looks like a big system.”

In due course then a big player might well come in and help to deliver some serious value.

In the meantime though, Child is mulling his options.

After all, there are plenty of other ways that Condor could take La India forward.

“We might look at selling a portion of the asset to someone,” says Child. “If we think we’ve got five million ounces, maybe it’s better to do a joint venture. And there’s also gold streaming, and gold royalties – there’s different types of access to funds.”

What would really be nice though, would be if gold would recover some of the strong upward momentum it enjoyed in the earlier part of this decade.

Child certainly doesn’t rule it out. “I think we’re going to form a major bottom in the gold price this year,” he says.

“I think that China will continue to devalue this year. I think we have hit a tipping point as gold redemptions out of ETFs in the last 3 years were snapped up in China and won’t come out of China; in recent weeks there have been net inflows into ETFs. We’re in a transitional year. Now’s the time to be in the metal.”

hxxp://www.proactivein vestors.co.uk/companies/news/122624/condor-gold-on-a-tear-after-optimisation-study-122624.html

[usmcgs] 17/2/2016 10:20

Hmmm could be a decision on El Salv. soon. Don't believe the rampers. If there is a negative decision it will effect the share price here

[jeanesy] 17/2/2016 10:20

Was that filtered coffee Cavendish? !! Time for playground boys and girls!!

[goneawol] 17/2/2016 10:04

Condor Gold on a tear after optimisation study

[usmcgs] 17/2/2016 09:58

"Good progress being made" is in the eye of the beholder. Still no sign of even the public consultation yet. This could still be months away

[usmcgs] 17/2/2016 09:28

If the Environmental permit was such a certainty, then it will already be priced in.

Dear oh dear Jibbo

[usmcgs] 17/2/2016 08:58

still not got the hang of the filter button

Feeling lonely on lse. No one welcoming you lol

Your stories belong in the land of make believe lol

[cavendish234] 17/2/2016 08:53

Playbox Pre-school
The gates are open at the church hall Mcgregor

[cavendish234] 17/2/2016 08:35

Put your dark glasses on it hides your cube head

When you get to pre-school this morning get them to learn you how to spell BRAVE
Why should I add my name

you are brave

[usmcgs] 17/2/2016 08:26

Cavendish has just created yet another id on lse

"Hi nice to have joined today I post on advfn nomally as cavendish234 better to be up front with people before I start not like some"

1. Normally posts as .........
2. Upfront before he starts lol. I am more than upfront. With the amount of ids, that you have I think you have a mental illness.

Your back on filter by the way as you're full of it. Still waiting to here about all these people you went out drinking with, from the Naval base or the section name lol

[cavendish234] 17/2/2016 08:22

John may have nailed it

[cavendish234] 17/2/2016 08:15

Could you just see USMCGS working in an office high flying City job as Mcgregor the tea boy with his sunglasses on scary teeth and cube head

and grey hair


Customer "Coffee please"

Mcgregor " there you go"

Customer " this is tea I asked for coffee

Mcgregor " No it is coffee that is what you asked for and that is what you have "

Customer "No it is tea I know the difference"

McGregor " well you don't,I am an expert in these matters and I know the difference"

Customer " okay taste it"

McGregor " Sorry you are filtered "

[usmcgs] 17/2/2016 07:45

Jibbo the fortune Teller. How can he say with certainty that a cornerstone investor would cough up? Even if they did we all know what happened the last time. They agreed agreed one price and then went even lower.

As for money to last another 8 months drifting along who really believes that. After a 300 % rise the share price is now drifting lower and lower. The market knows the company needs money and that it will be sooner rather than later

[usmcgs] 16/2/2016 16:22

goneawol walks into a bar with an arm going in 1 ear and out of the other

Person asks him what's wrong.

Goneawol replies "Goneawol"

[usmcgs] 16/2/2016 16:21

Below the spread so they don't want to take them from you

[goneawol] 16/2/2016 16:14

"usmcgs 15 Feb'16 - 10:00 - 13859 of 13898

Still nothing on the public consultation ref EIA. Public consultation doesn't seem to have even started as it has not been in local press and nothing been let out."
_____________________________________________________________________________

Local press? which ones have you checked?
Do MARENA or the regions publish notices?

[usmcgs] 16/2/2016 16:06

Below spread to sell 32.5p

[usmcgs] 16/2/2016 15:53

Cries of desperation join lse lol

You can almost hear the pleading .... believe us believe us ..... pleaseeeee lol

Deal for assets instead of plc lol

As if that couldn't have been done before lol

[usmcgs] 16/2/2016 15:47

Nicaraguan ministers been at presentations with MC before so don't believe the rampers.

Wonder what will happen if there is no news then