Condor Gold Share Discussion Threads

[book5] 28/2/2021 16:47

We are drilling our main resource at the India.
It makes sense to drill la mestiza too.

I hope we lease some of our land to the miners till we buy some land for them somewhere.

There is peace in the village, this is very important.
Exciting times
Gla

[book5] 28/2/2021 16:46

We are drilling our main resource at the India.
It makes sense to drill la mestiza too.

[aleoap] 27/2/2021 23:41

Good interview on Kitco News via YouTube with Michael Gentile. Particularly liked the middle segment where he outlines the 6 key points he looks for in a junior miner under $100 - $150m and I believe we have a strong case in CNR to satisfy those criteria. Once CNR achieve 100% ownership of land I will be significantly adding to my position. The current sentiment that gold is going lower here is a positive indicator for me. I believe very shortly we will see it do the opposite. Gold continuing to go down when many other commodities e.g. coffee, soybeans, timber, copper are breaking out is non-sensical, although manipulation is manipulation I suppose..

[book5] 26/2/2021 21:43

The miners know their land contains lots and lots of gold, it was selected by goverment geotechnical engineers.
Lets see what the cores say.

[888icb] 26/2/2021 19:17

I am sure we have all read what it says in the official RNS but the point you wish to ignore for some unknown reason is that the principle reason that Jim Mellon gave his £2 million was for drilling to increase the resource. This will increase the value of Condor’s gold which in turn will make it more attractive to bidders who will know that the holy grail 5 million ozs of gold is a nailed on certainty. Jim Mellon offered that money to Mark who hadn’t asked for it.
I place more importance on the comments made by Jim and Mark in his last interview. You will I presume be aware of the history of Mark and Jim’s relationship. Jim has effectively bankrolled Condor since the start of this project and as the largest shareholder essentially can call the shots if he wishes.
But you are obviously free to place importance where you wish and we can agree to disagree. Others can form their own views from our debate.
Time for a gin and tonic. I hope you have a good weekend.

[connect5] 26/2/2021 17:24

FWIW 'seemore' I'm more than happy to read and digest your well reasoned posts!

[seemore] 26/2/2021 17:07

tester,

we agree about the undervaluation, that is why I am here. And we agree about the solution - move to production. The market will respond when the company has a clear and compelling story but not until. Hoping that is coming soon.

888,

The landowners do not need me to tell them they are in a strong position. Why else do you think it has taken so long and still counting? And, I am sure they take their own legal and commercial advisers who won't waste time reading bulletin boards like this.

As regards the purpose of the fund raise, I place more importance on the official RNS from the company than on a brief comment by JM in the middle of a wide ranging piece. "The placement proceeds will be used to advance the La India Project towards production and expand the gold mineral resource." and "The placement proceeds will be used to complete engineering and other technical studies, purchase the remaining 5% of the land in and around the minesite infrastructure, place a deposit on a processing plant, finance a 4,000m infill drilling program currently underway with two drill rigs within the high grade starter pits within the permitted la India open pit. The extra cash also allows Condor to continue with exploration activity aimed at demonstrating the potential for a 5 million oz Gold District at La India Project: the Company will commence a 5,000m drilling program on the Cacao vein in the near future."

As ever, events and markets will determine what happens next. Loyalty / disloyalty, ramping / deramping doesn't come into it.

You will be pleased to hear that I am done for now. Have a nice weekend.

[book5] 26/2/2021 16:48

888
Miners have legal advice + resolution.
They have put their price to sell.
It is up to us if we want to buy or not.

Mc has wildly changed its talk: From compensation for a life of lost earnings, to cpo?! What do u think the miners think when the hear that? Trust me they are perfectly calm and trust in God.

It is us that need to put our house in order and no rely on the goverment. We are buying a mining concession from.another company.

Are the conditions of the enviromental permit that we buy all land before we start mining?? Better hurry then, we have lost months, no many months left before permit expires. Imho, to extend the permit, as a minimum, we need to demonstrate to the goverment we have an agreed plan with the miners showing how we are going to buy all land.

I have been saying for moths , we need to give away land and be confident we will find more resources in the future. Instead we are no negotiating, and started drilling recently.

By blocking public earth roads to other peoples land, and to goverment land, Condor may need to do extra negotiations to be able to permantly close these roads once production starts. That may cost us money too.

It seems we should have targeted cacao 10 years ago rather than la india that is like a beehive of miners.

[888icb] 26/2/2021 16:43

Seemore
I think we are all agreed that Mark is working with his legal team on the ground to achieve the purchase of all the land as quickly as possible for a fair price. If you were Mark would you want the landowners to be asking for more money because your shareholders were telling you to be generous or pay whatever it takes in a public forum.
Comments like that are gift to the landowners. If I was in Marks place I would wish that you kept your thoughts to yourself and let him do his job without people supplying ammunition that makes his job more difficult.
Jim Mellon instigated the last placing as the largest shareholder and I think we should believe his own words as to why he put £2 million in. Mark didn’t ask for that money so presumably he didn’t need it for land purchases which should in any event have been completed by then.

[tester2020] 26/2/2021 16:26

Seemore - yes, and Marathon Gold currently has a £323M market cap vs Condors market cap of £57M .. it aims to produce 175,000oz per year at 1.5g/t.. compare that to Condor initial production of 120koz per year at 3g/t.. the higher grade means much lower costs. Yet Marathon is still 2.5 years away from production.. Their initial CAPEX to construct a plant is $272M compared to Condors $120M..

Personally, I now dont care whether or not Condor is bought out.. I would actually prefer to see it move towards production for a more realistic valuation of its asset.

I am simply outlining why I think this company is so undervalued RIGHT NOW because I think its worth 80p-100p as it stands, without any offer at all..

regards
T2020

[book5] 26/2/2021 15:49

Overperforming
Hopefuly a good rns soon

[seemore] 26/2/2021 15:36

Tester,

Thanks for your info on Cardinal Resources. I was unaware of that case. But it isn't quite the same situation. CNR doesn't have 5m oz, it only says it thinks it will have one day. If you haven't already, do check out Marathon Gold MOZ.TO. They now have 4m oz, it is high grade o/p, it is in Canada, initial capex c$200m. For most of their life they were set up only to be sold but it didn't happen. I don't say that CNR will never be bought, just that it will not be bought soon at a massive premium, so best not to have that as your investment case. And for the company to press on to cash flow / production and deal with any potential buyers if and when it happens.

888,

I am aware of what JM said on MI. I am also aware that the RNS said the money was for several things, incl land purchase. You implied yesterday that I knew nothing about negotiation, I don't need to impress you with my CV. But it is obvious, even to me, that when I have to get the other party to sell me their land, I am not going to tell you how much I am willing to pay! CNR has to face the fact that the landowners have the whip hand. They have no pressing need to sell the land, they don't have to worry about where CNR gets the money from and they know it is backed by billionaires. The only thing they have to worry about is asking too much that the Gov sides with the company. In my experience, in situations of a forced purchase, delay leads to a higher price. Time is also an opportunity cost for CNR. Maybe the Gov has mislead us but now best to be generous and get the job done quickly. If this is not the approach that MC is taking, I will be very surprised.

[diggybee] 26/2/2021 13:28

I agree. Plus disconcerting that a lot of needless energy being spent on spinning something that's gaining no traction. Need the land. Need a hole. Need that hole to have gold at the bottom. Simple as that.

[888icb] 26/2/2021 12:30

1airbag
As I have posted twice now Jim Mellon personally stated that the £2 million he provided was for drilling to increase the total resource. It was therefore not for land purchase. The company already had the money for the land purchases.

[book5] 26/2/2021 12:19

Tester
Indeed, we have the fire power, and knowledge of resources (cacao,...others) to solve the land problem.
I believe we were mislead by the goverment.
Surely we will get the land sooner or later.
Regards
B.

[tester2020] 26/2/2021 12:06

book5 - we have spoken about this before (see other site for my thoughts on land) but $1.2M or £900k for the co-operative land is surely not beyond a company who has £8M in the bank at the moment.. ? Especially if it unlocks progress being made towards $100M a year in cashflow in 2 years time..

seemore - regarding a bid premium? See the recent example of this company.. Cardinal Resources which has explored and developed a 5m ounce reserve in Ghana, Africa. In March 2020, a Russian investment group started to indicate its interest in the company and offered shareholders AUD 0.46 for each share. The offer represented a 43% premium compared to the average stock price in the week prior to the bid. Competing offers were launched by Shangdong Gold the state-owned Chinese mining firm, Dongshan Investments, a Russian-Emirati investment house, and Engineers & Planners, a Ghanaian mining company.



The final price in January this year was $400M dollars or AUD$1.07 per share paid by Shangdong as they already owned almost 15% of the company. My point being is that you never know what can happen once a few parties get involved.. And that premiums are paid for 5Moz projects.. The capital cost of the project was estimated at $275-425M - Condors capital costs are much lower than that, at $120M CAPEX. The shares were trading at AUD$0.25 in March 2020 and were sold for AUD$1.075. A rise of 450%.

regards
T2020

[book5] 26/2/2021 11:22

Associates want to sell.
But Cooperative supports local miners in their plea for land.
Apparently The cooperative has asked $6000per associate (there are 187, but majority dont work) and la Mestiza. If la mestiza is not possible then land around Nance Dulce
Nance dulce has poor grades and is currently mined by their landlords: mainly Los Chonas, and a bit by Henry.
Condor has not responded to the cooperative selling price.
Cooperative land is towards the centre of our development and apparently is very rich, it was the first to be drilled to 70m. La mestiza is at the north end, so 5 hectares over there would not be as disruptive for our operations.
Miners are not aware there is gold in Cacao

[1airbag] 26/2/2021 11:15

How much will they need to pay for the remaining land? Do we know.
He said they have £8m cash at Condor.

I think Seemore is correct, the JM money is to buy the last of the land.

[seemore] 26/2/2021 11:13

888,

I have no insight into the apparent change of direction and real intention of starting to drilling Cacao, I am just speculating. And, I am pandering to my belief that the surest way to realise value is to accelerate the realisation of cash flow and production and that ownership of all land is key to this.

There may be some arrangement with a third party to acquire CNR if the company proves up more gold. But I doubt that such an arrangement will produce the sort of premium that this board expects. It would be more of a had enough of this, take what you can get exit. All the signs are that JM is in this for the long haul and as it is small potatoes for him and needs little of his time, why would he get fed up with it?

I don't know of any recent cases where an undeveloped resource, short of a bankable study, has been bought for a large premium. Does anybody else?

Whatever, share prices do not rise because existing holders have a belief in the potential. That needs a story that the market can understand and believe that will attract new buyers. Sadly, CNR doesn't have that atm. The fact that existing holders who all want the company to succeed can advance different views of what the company is trying to achieve is evidence enough that the conditions needed for a sustained rise in the share price do not currently exist.

I wish it weren't so, but the price action is confirming that it currently is. It is also confirming, IMO, a preparedness to respond if the company gets its act together, as long as the story comes fairly soon. Absent that, there is the risk that the downtrend that reversed a year ago will resume. Especially when the fall in share prices across the sector has left a lot of good companies at bargain prices.

[book5] 26/2/2021 07:51

I sent my suggestion to
[e-mail]
Hopefuly Mark receives it.

Markets down, we should outperform
Gla

[888icb] 26/2/2021 00:33

Seemore,
I can help you with your imagined sketch and also challenge your views on Cacao(which is Ross Beatty’s favourite part of the whole project and he has provided his geologist to work on it) by reposting something I posted earlier in the week

On the publicity front Jim Mellon yesterday in his Mellon on the Markets column in Master Investor Magazine says you should own gold silver and platinum which should form a good part of your portfolio. He confirms he liked Condor Gold and that he has just taken half a placement to enable it to do further drilling to find more resources on top of it’s already large proven reserves.
Interesting that he focuses on the reserves and doesn’t mention production

So Jim stated he gave the money for drilling to increase the resources. Cacao is expected to contain an impressive amount of gold and its for Condor.

[book5] 25/2/2021 21:48

My main contacts said:

Till today condor has not sit to negotiate with the cooperative. He believes CNR is / was waiting for goverment help.

I suggested to him:

To kick start the project, why we dont propose to the miners to lend to them an area of the Mestiza, say 5 hectares, for 2 years till we find other suitable land for them. I believe the Mestiza is around 40 hectares。

He liked the idea but said that the miners would need to use mules / horses to bring the rocks to other road that runs outside condor mine's perimeter. So it would be possible but more difficult than current route. This is a similar route to the one that was used by the miners working on the land of Daniel Rojas when condor closed the road.

He said in Cacao the access for the miners would not be an issue。

[connect5] 25/2/2021 21:39

'Quark3' you're lucky or clever to have invested recently, either way welcome and good luck to you. Just imagine what it's like for the likes of us who have been here a decade and counting! Some of us would have qualified as monks for the patience we've had to show here! Good to hear all views and possibilities from the knowledgeable posters here and 'Book5' with his contacts, we are very fortunate and I hope this comes good for you and other folk that lost in Arian silver and are invested here like another pal of mine. ATB & GLA as always!

[quark3] 25/2/2021 21:16

I expect a company to under promise and over deliver, not the other way around. Far better in my view to not give milestones than to fail to meet them. I don't want a running commentary, Mark put himself under pressure by stating a year end date for all land purchase and also gave an advantage to the landowners who obviously knew of that promise.
But look, this shouldn't detract from MC's other achievements, he has made very good progress over the year or so I have been a shareholder, which I guess makes me a latecomer to the party! We are at an exciting phase of development and I do have great hopes that the company will meet expectations. My worst ever investment was a classic "jam tomorrow" company - Arian sliver - and CNR is not another Arian, but please Mark, if you tell us something will happen... make it happen.

[seemore] 25/2/2021 20:42

Book5,

As I said in my previous post, it makes sense to me to be as generous to the miners as we need to be because 1) without owning their land we don't have a project (I believe) and 2) we need good relations with the locals for the mine to be a success 3) I don't believe the Nic gov will act on our behalf unless they think the miner's demands are unreasonable, erring on the side of CNR overpaying rather than underpaying

If replacement land to enable the miners to carry on is part of a fair and reasonable deal, go with that. As you say, if we really believe this is a 5m oz district, a small fraction of that is not material over the life of the project.

Or, pay them a higher price for the land.

What about offering the miners a royalty? i.e. cash upfront and x% of future revenue?

I don't have a view on whether the land should be Mestiza or somewhere else. I can see why the miners would want it but that is the same reason why CNR would want to keep it. It is the highest grade of the three permitted starter pits which makes it the most suitable for first production, either for toll milling or own account and equally the highest payback per hour of work for the miners.

I do not see 500k oz at Cacao as making an attractive bid more imminent or adding that much to the price, so it is not clear to me why it has gone from later to now to do more drilling. Hence, I still have a suspicion that the reason for drilling Cacao now is to offer some or all of that to the miners after we have shown that it contains plenty of gold, near surface. I think you have said that Cacao has never been worked by them, so they would see Cacao as a pig in a poke if they were offered it without drilling. Unfortunately, if a deal for the land requires Cacao drilling to be done and analysed, it is not going to be a quick solution.

I can best summarise my position, in the following (imagined!) sketch

JM: Mark, it seems to be taking a lot more time than we expected to get all the land. What's the problem?
MC: Yes, Chairman. Unfortunately, the miners are being a lot more demanding than we thought and the Gov is staying out of it, at least for now. We don't now have enough cash to buy the land and do all the other pre production jobs.
JM: Well, we can't expect the miners to give up their livelihoods cheaply and, anyway, we need them onside for years to come. How much do you need to get the job done?
MC: I think it is going to take as much as £4m extra
JM: OK, here's £2m. You find the other £2m then get it done. Don't come back for more.
MC: Thanks, Chairman