RE: Webinar6 Aug 2020 13:06
Would you want to be out of this stock for the next few months and try and buy in closer to shovels in the ground....share price then????
https://www.proactiveinvestors.co.uk/companies/news/926006/condor-gold-looks-to-finance-la-india-early-next-year-and-may-by-then-be-supported-by-cash-flow-from-toll-treated-ore-926006.html
Precisely what the economics of this operation would look like remain unclear at the moment, but what is known is that there is a plant nearby that was recently sold by B2Gold because the associated mine was running out of ore and a 2,200 tonnes per day ball mill is on idle. If Child could construct some sort of deal with Condor’s near-neighbour by the end of the year, then it could be that even while the financing is being put in place for the main La India project and construction is getting underway, cash could be coming in.
That would be a welcome sign for a market that has waited patiently through the permitting and economic modelling processes, and would represent a real statement of intent for the company in the years ahead.
Because as chief executive of Condor, Child isn’t just planning a quick and dirty operation here. Rather, La India has been given a complete environmental overhaul, it’s managing to avoid any resettlement, and because the district play could end up producing as much as five million ounces the company could be around for a long time.
With US$2,000 gold in Condor’s sails, there’ll certainly be plenty of incentive to keep the exploration programmes going after the production starts rolling in, although shareholders may well decide that in due course a nice chunky dividend ought to be forthcoming too.
In the meantime, the company is sitting pretty, following the injection of £7.6mln in new cash in June via a placement and the exercise of warrants, so there’s unlikely to be any dilution any time soon.
It’ll be an interesting few months, and Condor could look very different by the end of the year.
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