Member Info for nero120

I didn't say you did barnard, was referring to those that bought in during the large run up circa 2011 (such as patryk). I'd imagine the majority of long term holders are underwater at this point unless you got in very early (or very late).

Either way if you're still in you held through the entirity of a bear market, which arguably still hasn't ended. This is nobodies fault but our own due to our lack of appreciation of market cycles. Live and learn.

Doh autocorrect :/ bill=bull entities=entirety near=bear

The fact that the share price has suffered so greatly since 2011 despite the management adding so much value in that time is indicative of the fact that those investors bought in at the top of a secular bill market and have held through the entities of a bear market. As I've said before, the share price is not the company. Condor has performed admirably through this near market but it would need to do something extremely exceptional to attract large amounts of capital away from the no - lose alternatives supported by the central banks. If MC can pull off the toll mining deal and buy la libertad or come to some other arrangement with b2 then this scenario might materialise, though you can bet if we were in a bull market then Condor would be soaring merely on the rumour. Learn from this experience. Understand the difference between price and value, and be aware of market cycles. No amount of jazzing up a PowerPoint presentation is going to affect the share price materially, this is a fundamental market issue not a company one. For the share price to improve we need our short/medium term goals to be achieved (toll mining, additionally permits, etc) but for it to really soar we need this bear market to end and gold equities to become must haves again. Unfortunately I expect something needs to break a la 2008 in order for that to happen but with property markets everywhere crashing and credit impulse drying up, it looks like a global recession is imminent if not already in progress. Let's see what happens in Q2 2019...

On the contrary Simms, investors like Sprott/Beaty/Melon don't **** the bed as soon as the share price drops like so many PIs do. They are investing for long term value based on a strategy, and take into account things like the mining cycle, bull/bear markets, economic cycles, etc (you know, things that many PIs haven't even heard of before throwing their money at a stock expecting to get rich quick). These guys have invested through many cycles and know how to survive them and thrive.

I would put money on the fact that they are more than happy with the progress made over the past few years, especially in such a difficult market. Condor's management have delivered huge fundamental gains, the fact that the share price does not reflect this over the short-medium term is neither under the control of management, nor is it relevant to these investors.

Eventually the share price will reflect the fundamentals but this could take many years ("the market can remain irrational longer than you can stay solvent"). Experienced investors know this and don't put pressure on management to create short term share price gains at the cost of long term value, like PIs are constantly screaming for...

You have to solve three riddles...

Only joking, just email MC and ask to be put on the list. He is more than happy to communicate with shareholders.

...on today's excellent RNS (posted with permission):

Dear All,

Please see attached an announcement made today regarding metallurgical test work at La India Project conducted at both B2Gold’s plants. Gold recoveries of 95.4% are exceptional. A few comments:
B2Gold asked to conduct the metallurgical tests at the laboratories at their processing plants. Permission was granted on the basis B2Gold shared the metallurgical tests with Condor Gold. This is part of B2Gold's due diligence to see how the ore at La India reacts as it is treated at both El Limon and La Libertad mines.
Condor has worked really hard in the last 2 years at re-building good relationships with B2Gold. Condor’s General Manager, Aiser Sarria worked at for 6 years as a Mine Superintendent at El Limon and is credited with successfully and significantly improving relationships and trust with B2Gold.
My top priority is to generate revenues and early cashflow. The main La India open pit is permitted to produce 600,000 oz gold. Condor is keen to enter a toll refining agreement with B2Gold. This involves mining a “mini pit” within the permitted La India open pit and trucking the ore to either or both B2Gold producing mines. Permitted has commenced for 2 feeder pits of 230,000 oz gold at 5.5g/t gold
B2Gold recently announced a US$50M impairment charge for La Libertad Mine, the valuation gives a mine life from 2019 to 2020. La Libertad should close next year. Furthermore La Libertad has only 1M tonne of reserve at 31st December 2019 and the plant capacity is 2.4Mtpa. 60% of production is “spent ore” which is the processing of old heap leach pads. There is only so long they can keep La Libertad going, AISC $1,225 in 2018, it lost money vs Condor’s AISC $690.
B2Gold also announced a US$34M closure and environmental clean up liability for La Libertad.
It makes sense for Condor to buy La Libertad when the plant closes. It is in excellent condition and is very well run. It will be much easier to tear down, transport and erect a processing circuit that operates well rather than import component parts and assemble a mine in Nicaragua.
The met tests confirm CIP is the best metallurgical process to extract the gold.

Best regards

Mark

And suddenly a company with a ~$20m market cap would become a producer overnight, unlocking production of 120k oz / year at a cost of ~$690 / oz.

Interesting...

Slippery did MC mention anything about why the drop is continuing, is there a new seller that he is aware of?

Seingred no it's not surprising that a stake hasnt been taken by a producer, they are not in the business of speculating on junior explorers. They buy once an asset is ready to be exploited (or if the asset is huge and beyond doubt), they cannot justify to their shareholders "oh it was such a bargain! We just had to splurge $millions on aquiring it! Oh but now we need to give them more money to continue drilling, build a mine, etc".

All the evidence points to a forced seller. Our directors have bought in recently so we know they are not throwing in the towel. Nothing negative has happened on the political front to warrant sales. The fundamentals have not changed, so treat this for what it is, a buying opportunity (if you've got any spare funds).

If the share price is still below 20p going into the new tax year for sure I will be topping up.

It's absolutely NOT Beaty. He's a billionaire who invests in assets when they are cheap and sells them when they are expensive, not the other way around, he would certainly not be throwing away money due to lack of liquidity!! He knows the sector probably better than anyone and would not sell a majority holding at a loss when the fundamentals of the company have IMPROVED.

FFS people stop losing your **** and pull it together, the company is not the damn share price.

Question now is who bought them?

EL is spot on. Any offer would immediatly halt the fall in the share price and if it is at a significant premium would set a short term price target that the market would likely fill.

However, I don't think an offer is likely. Any serious player knows that the majority shareholders in Condor are long term holders that know the true value of our assets and would not sell the company at a criminal discount. The offer would be rejected at no advantage to B2.

I think that the toll mining deal is far more beneficial to B2 as it would improve the profitability of La Libertad in the short term which would please their shareholders. Then if they do want to wind the mine up next year/the year after then there is always the potential to do a deal with Condor having established a working commercial relationship with.

EL & Tester, if we drill it's not for the benefit of the market, it's to make us a more lucrative target for takeover by a major. Regardless of whether the share price increases with drilling news (it doesn't as EL stated), a major cannot ignore us if our resource hits 5m oz+, and when the big money comes in the herd will follow and drive up the share price, not the other way round in my opinion.

If we do get the toll mining deal I'd be very keen to see a huge drilling program announced to prove up as much as possible of the land package, all funded by the toll mining income so no more dilution. If we can prove up 5m+ oz with > 200k oz / year production with lowest quartile AISC then I reckon we'd be looking at a SOLG-type move for this share price as the majors would be jumping at the change to get a piece.

We know we have a lot more gold than our reserves state, we just have to prove it without major dilution, especially at the current share price. Toll mining income wouldn't be enough to make a material difference to the cost of building a mine, but it would make a huge difference to paying for much needed exploration drilling.

(posted with permission)

Dear All,

The significant of today’s announcement is that Condor is permitting two high grade feeder pits with 218,000 oz gold at 5.5 g/t gold to supplement the mine feed from the fully permitted La India open pit and processing plant. Open pit production increases 50% to 120,000 oz gold per annum for 7 years, but more importantly much higher grade is added, which will increase the NPV, IRR and reduce the payback period. The permitted La India open pit has 3g/t gold and All-in-sustaining cash costs (AISC) $690. Mestiza open pit is 121,000 oz gold at 8.6g/t gold and America open pit is 97,000 oz gold at 3.8g/t gold. AISC will be reduced by adding the much higher grade feeder pits.

In addition, there is an underground resource of 1.2M oz gold at 5.5g/t gold. This will be permitted and added to a mine plan once open pit production commences. The sweet spot on the economics will be taking the highest grade underground, say above 7g/t material as access becomes easier as the open pits are mined and adding it to the open pit material. Should be easy to add 30,000 oz to 40,000 oz gold from underground in due course.

Regards

Mark

Me three, it was always my strategy to be in until sale day or production. Though I must confess I didn't think it would take this long, but that's my choice in holding throughout a painful bear market correction - nothing to do with MC's actions.

Expecting the current share price to match true value on a highly illiquid and speculative share just shows the naivety (and perhaps desperation?) of PIs.

https://www.youtube.com/watch?v=9fBCOsqzBig

Must listen, excellent discussion.

Something that hasn't been mentioned yet. If MC can secure a toll mining agreement with B2G then it will raise Condor's profile massively, especially on the TSX. In recent Cambridge House discussion forums, both Rick Rule and Marin Katusa have talked about B2G as they are both shareholders, and they think they are ripe for takeover themselves in the net gold bull market.

Condor's low profile and lack of awareness of the potential has always been an issue here, if investors such as they become aware of Condor and it's potential because of a toll mining agreement with B2G then that alone could be a gamechanger, let alone the benefits of the income from toll mining.

will they object/protest as it looks as though CNR is "stealing the gold from under their noses" Remember our environmental permits were granted on the proviso that we build a mine, so even if we were to extract some of the gold for processing elsewhere we still have to start building the mine once bfs is complete and funding secured, otherwise we lose the permits. I'm sure the locals would be more than happy to start working and earning sooner rather than later, even if the ore they are digging up is being processed elsewhere in the short term. An interesting point though, what will the government's response be to us extracting la India gold for processing at la libertad? I'm sure Mark has already considered this, otherwise it would be a non starter.

(posted with permission)

It is excellent news, Condor’s La India Project now has identified a new high grade feeder pit of 129,000 oz gold at 8.4g/t gold on Mestiza. The total resource in 4 feeder pits totals is circa 280,000 oz gold and can add 30k to 40k oz gold per annum to production from the main permitted La India open pit. This re-sizes the annual production from open pits to 120,000 oz gold per annum for 7 years. This is a 50% increase in annual production form the Pre-Feasibility Study of 80,000 oz gold per annum. In addition there is 1.2M oz gold in underground material that can be brought into a mine plan. We remain confident we are on a 5M oz gold district.

Discussions are advancing to get some early production and cashflow by trucking ore to two nearby processing plants that have space capacity. This means we can get into production without the expense of building a new mine. We will use contract mining and haulage operators.

In 2018, at B2Gold’s La Libertad mine, head grade (the grade of the material at the processing plant) for the year was 1.19 g/t gold. The head grade on Mestiza is almost 4 times higher

Best regards

Mark