Any time I have a question I email him and he responds promptly, like he does for any shareholder. I'm happy with the way the company is run and with my investment here, unlike yourself as you constantly feel the need to let everyone know, like anyone cares at all.
Haha you absolutely full of bs slim, I've never ever been to a roadshow or condor presentation, let alone met or spoken to MC!!! Are you a labour mp by any chance because you have about as much credibility as one!
Perhaps your problem is you invested knowing nothing about the company or the gold market, and now because you didn't get rich quick and don't have the balls to sell you're angry at everyone, especially MC. Well completely by accident you invested in a decent well run company that despite a prolonged bear market hasn't gone bust, and hilariously you don't even realise it!! One born every minute I suppose...
Totally agree Simms. Mark has always acted to avoid undue dilution, why would he all of a sudden chose to dilute current shareholders out of existence, especially when he and other major shareholders who aren't billionaires would also be diluted and lose all reward for years of hard work. Current calibre shareholders have been screwed, no two ways about it. I haven't researched it but I'd be interested to know how senior management were affected by the deal, I very much doubt they suffered the same dilution. I would be livid had I been holding there through the entire bear market only to have my shareholding reduced to nearly 10% of what it was!
Rothrock, I'm not sure why all of a sudden you're so bearish but in my opinion you have things wrong. Mark said in the presentation at the denver gold forum (BRILLIANT presentation, his best yet I think, hit all the key points and really sold Condor well) that we have £5m in the bank which should cover BFS and land purchases. We already have a great working relationship with the IFC, they are an obvious candidate for financing the mine - especially considering Condor have been fastidious in keeping to the IFC's performance standards and now that the IFC have sold all their equity holdings in order to concentrate on financing projects through debt.
Regarding the toll mining situation, we already know that B2Gold requested ore from La India and recorded metallurgy tests of 12.1g/t gold and 95.4% recovery, plus Mark inspected La Libertad earlier this year. I'm fairly certain an agreement was reached with B2Gold Nicaragua but was blocked by B2's head office, obviously due to the fact that negotiations were being finalised with Calibre to sell the mines to them. In *my* opinion, Mark's reason for meeting with Calibre's CFO at Beaver Creek and CEO at Denver Gold Forum was to discuss the toll mining agreement that was reached in principle with B2Gold Nicaragua, and I am fairly certain they will want to continue that agreement in for the same reason that B2 agreed to it.
Remember, there are no mineral reserves at La Libertad only resources, and the mine has 12 months ore remaining at the current production rate of 6,400tpd. The latest NI 43-101 on Calibre's website recommends 30,000m of drilling which will take 12 month at least to complete and then another 12 months minimum to get into a mine plan. Once that's all done they still have to get it permitted and that can take years as we know!! Calibre need to reduce the AISC on those mines and their presentation at Beaver Creek displayed huge reductions (50%+) by H2 2019. How exactly are they going to hit those targets given the above?! If it was that easy then why wouldn't B2 have already reduced their AISC significantly?
I see no reason why Calibre wouldn't want to agree a toll mining deal with Condor, and if the Calibre management are as top quality as everyone says then they will want it sorted asap as it is clearly in both parties interest.
Email from Mark this morning:
I met Calibre Mining’s CEO and CFO respectively at the Denver Gold Forum and Precious Metals Summit. They have done an excellent job in raising CAD 102M by way of a private placement in Calibre Mining shares. The deal to buy B2Gold’s mines was announced on 2nd July, with the placement taking much longer that expected to complete, over 11 weeks and only finalised this week. The gold price is +17% since the 2 July (slide 6) and this definitely helped raise the money. Calibre has a proven management team has an excellent reputation and created significant money for many investors with the sale of Newmarket Gold for CAD 1 Billion, they have been able to attract investors who have backed them before. The transaction is expected to be completed on 15 Oct with Calibre shares trading on 21 Oct. it is excellent news that this Group is investing US$100M in Nicaragua.
Calibre Mining had 42.8M shares in issue pre the transaction. 170M new shares issued in the Placement to raise CAD 102M + 88M shares issued to B2Gold as part of the purchase consideration and circa 18M shares to be issued when the US$10M convertible issued to B2Gold is converted. Total 276M new shares being issued or 6.45 times the current number of shares in issue or put another way, existing Calibre shareholders own 13.4% of Calibre post transaction
Regards from Nicaragua
Just in addition, I found this B2 report on La Libertad from March 2015:
"The mining permit for Jabali Antenna is expected to be granted in the second quarter of 2015"... oops! Permits can be a tricky business as we all know.
Awax, I did glance through the calibre presentation. The part that stood out to me was that on page 11 they claim they can bring down El Limon's AISC from US$1567 to US$645... err, wow! That's a remarkable achievement, I wonder how they plan on doing that exactly, especially considering that in October last year, B2Gold conducted a life of mine study for El Limon concluding that it would cost $35m to extend El Limon’s life-of-mine to 21 years, bringing AISC down to US$900 per oz (excluding capital costs):
This study includes the El Limon central zone discovery (5.13m tonnes @ 4.92gpt = 812,000oz), so I'm not sure where Calibre are getting such optimistic figures from... Also, has the pit even been permitted? What about Jabali Antenna? I'm not up to date with these, but this article from April this year reckons "Production from the new Jabali Antenna pit is expected to start in the second half of 2019, subject to the successful completion of B2Gold’s resettlement activities and receipt of the Jabali Antenna openpit permit":
We all know how long the permitting process can take in Nic. Now I suppose it's possible that Calibre can achieve everything they are promising but it looks crazy optimistic to me. Naturally I wish them luck, and hope that Condor and Calibre can work together for mutual benefit and to benefit the people of Nicaragua.
Agreed EL, I was a little surprised that despite recently sounding bullish on condor, RR suddenly decides to dump half his shares, yet nothing has fundamentally changed during that time. My initial thought was that simply he bought in hoping for a re-rate based on a quick toll deal, and perhaps since that hasn't materialised as quickly as he liked it was time to move on. Fair enough.
Even if what RR says is true and Calibre plan to spend even more cash with a huge drill program, it will still be years of exploration and permitting before even a piece of that ore can be fed into El Limon or La Libertad, and until then those mines are losing money. The real question is, why wouldn't Calibre agree to a toll mining deal? If they think to acquire Condor in a distressed sale then surely that ship has sailed, Condor has access to financing that have kept it afloat throughout the entirety of this bear market when many other gold explorers have folded, and not only have Condor survived but have managed to expand and derisk the project significantly. It seems irrational that Calibre would be that malicious or foolish for no real benefit.
Whilst either of these mines have capacity, it seems mutually beneficial for Condor and Calibre to agree a toll mining deal. But regardless of that, progress on building the mine at La India will continue. MC might not be a big name in the gold community but he has serious players backing him, not least of which is the government of Nicaragua who want the mine built.
Absolutely brilliant news for Nicaragua and Condor! Hopefully it is the start of an easing of tension between the US gov and Ortega, who I bet was fairly pleased with the news himself... Troika of Tyranny really Bolton? Don't let the door hit you on the way out!
Absolutely. I bought it as a very on the silver price catching up to the gold price, primary silver miners like FR are highly leveraged. I'll probably hold the position for a while, not sure how soon the silver price will move but when it does it will rocket.
Look at those producers fly: BTO +12%, YRI + 6.5%, FR +9.5%! These are billion dollar companies and they are rocketing higher now that the metals prices have been unleashed. Yet this is nothing compared to what the tiny juniors will do when the crowd arrives. Just a little more patience required.
Sorry, thought we were talking about the last day. Yes most gold equities have risen as the gold price appreciated over the past few months, some haven't though including Condor (and SOLG). I expect they will all catch up at some point. But look at some of the majors, Yamana have almost doubled over the last few months, up nearly 8% currently.
However that's nothing compared to what juniors will do when money starts to pile in...
Lets not get silly Seingred, CEY is up 0.3% (yes, I follow it). The other AIM goldie I follow, SOLG, is up 0.38%. In the green but barely.
Any investment capital that has moved into goldies, and I really don't think many have yet, has gone into majors. We're a long way away from institutional investment capital buying up juniors. It will happen eventually as the gold price continues upwards, but it will take time.
Relax everyone, Condor is well positioned for the coming bull market in gold. We need a bit of buying volume to clear out the MMs which appear to be holding us under 20p at the moment. News would help but I maintain that the macro picture is what will really set a fire under the share price.
"The end game is a high gold price north of $2000/oz, consolidated assets in Nicaragua with all mines built at peak production, and a final merger with one of the largest gold operators."
My thoughts exactly Diamond Dave, great post!
Slim, I empathise with your situation, and Mark is certainly guilty of the cardinal sin of attemping to predict price and timing at the same time, as we know he was sorely wrong in this regard. However, that doesn't make him a bad CEO, pretty much *everyone* gets price prediction wrong and in fact he's been criticised in the past for not "talking up" the share enough. It seems you really can't please all the people all of the time.
Mark should be fairly judged, and in fact you can bet he very much is by large experienced investors like JM and RB. RB has said many times that management and resource are the two most important factors in any gold company, so he must be pretty confident in Mark to have bought in with so much competition out there.
Absolutely criticise him for how he runs the company as this is what will return shareholder value at the end of the day, but I would say be fair and try not to be too resentful regarding his price predictions made in the past. In fact I think he's learned his lesson as he hasn't made a prediction like this in a while.
Seingred, I agree that the bear market is over now, and if I said we were still in a bear market recently then I was incorrect. Since late last year gold equities have been doing well thanks to the increasing gold price, unfortunately not Condor however compared to other junior explorers.
We are being held back, I believe, by a large amount of cheap shares held by MMs after the IIs selling out and PIs selling at the bottom now. Until we see some buying volume to buy up these cheap shares we'll continue to drift lower.
On the plus side, the lower we drift the more enticing a prospect Condor becomes, as deep pocketed investors and IIs start to reallocate to gold equities and see an easy multi bagger here as the bull market really gets going, and it's only just barely begun.
Isapension, judging by the quality of the "arguments" criticising Mark lately I'm not sure that certiain investors *are* aware that CEOs don't actually control share prices. There are valid criticisms that can be levelled at Mark, unfortunately not many here seem to be capable of articulating them.
As for him not caring about small investors, I would say that his actions over the years have demonstrated that he does care about how Condor is run, which includes all investors, the people of La India and other invested parties. That doesn't make him a saint and I can understand why the recent options grants rubbed salt into the wounds of the depressed share price due to two IIs selling out recently. Though I don't think he's getting rich at shareholders expense. £110k salary is hardly big bucks these days for any experienced professional based in London, and the options still have to be exercised which means more cash out of his pocket.
As long as senior management have plenty of skin in the game here I am willing to forgive him not voluntarily not taking up the remuneration he is entitled to. However, if he was hugely increasing those amounts throughout the bear market, that would have me concerned...