takeover target3 Sep 2020 00:27
Condor Gold is a junior gold developer advancing the La India gold project in Nicaragua, located near Calibre Mining's (OTCQX:CXBMF) El Limon mine. Its goal is to build a mine capable of producing 100,000+ ounces of gold per year, with a 1+ million ounce resource base.
Based on a pre-feasibility study, the mine is estimated to produce 80,000 ounces annually over 7.5 years from a single open pit, at all-in sustaining costs of $700/oz. However, this is based on its probable mineral reserves (675,000 ounces) and does not include the potential to upgrade any of its 1.23 million ounces of resources to reserves through infill drilling.
Here's recent trading activity, and ownership information:
- On August 14, non-executive director James Mellon bought 125,000 shares of stock for $0.505, worth $109,604. Mellon a renowned fund manager, owns 15.4 of Condor Gold, according to the company.
- Ross Beaty owns 5.8% of the company. Beaty is the chairman and founder of Equinox Gold (NYSEMKT:EQX) and Pan American Silver.
I like the company's upside potential at La India, but Condor's stock has extremely low trading volume in the US, so it is a better option for investors with access to its London or Canadian listing (symbol COG on the TSX.) Condor is a small company and is likely several years out from producing cash flow from operations. I view this stock as a speculative takeover candidate.