- Condor Gold's [LON:CNR] shares jumped after it revealed new figures which significantly enhance the economics of its La India project in Nicaragua.

The company says figures in Whittle Consulting's enterprise optimisation study show that the project has an average net present value of USD196.0m compared to Condor Gold's current market capitalisation of US$12m.

The company had been unable to publish the study results because it was in a offer period having put itself up for sale. One of the reasons that the formal sales process was terminated on 18 January was to provide shareholders with the full details of the optimisation study.


- NPV increases on average 56% across three production scenarios and 78% for the PFS case.

- Average NPV USD196m compared to the current market capitalisation USD12m highlights significant undervaluation with a price-to-book ratio 0.06 times

- IRR averages 30% across three production scenarios

- 29% increase to 866k oz gold from 674k oz gold of contained gold of Indicated ounces only in the base case La India open pit, as the pit pushes deeper

- 29% increase to 1,066k oz gold from 827k oz gold contained gold of Indicated and Inferred ounces within La India open pit + two feeder pits

- 18% increase to 1,544k oz gold from 1,313 oz gold of contained gold of Indicated and Inferred within all pits and underground

- 22% increase in average gold production for the first 5 years, ranging from 91,000 oz to 165,000 oz gold per annum across three production scenarios

- The recovered gold over life of mine ranges from 796,000 oz to 1,437,000 oz gold across the 3 production scenarios

- AlI in sustaining cash costs remain under USD700 per oz gold for all production scenarios Chief executive Mark Child said: "We are very pleased to now be able to release the materially improved NPV and IRR figures contained within the optimisation study. The NPV of the PFS case of Indicated ounces gold only, increased 78%. The average NPV increases 56% for three production scenarios compared to the production scenarios within the PFS and PEAs announced in December 2014.

"The average NPV is USD196m compared to the current market capitalisation of USD12M, valuing the Company at a price-to-book ratio of 0.06 times, highlighting the material undervaluation of the Company's shares.

"The IRRs increase to an average of 30%. Indicated ounces of gold within the main La India open pit increase by 29% to 866k oz gold and also by 29% for the main pit + feeder pits to 1,066k oz gold as the pit pushed deeper. The annual gold production for the first 5 years increases on average 22% and ranges from 91,000 oz gold to 165,000 oz gold per annum versus the PFS and PEA studies. The recovered gold over life of mine ranges from 796,000 oz to 1,437,000 oz gold.

"The average pay back of upfront capital costs is between two and three production years highlighting the outstanding economics and versatility of La India Project."

* * *

Griffin Mining [LON:GFM] has confirmed that approval to resume blasting has been given by all appropriate Chinese authorities and operations have fully recommenced at Caijiaying.

* * *

Cairn India, a subsidiary of Vedanta Resources [LON:VED], says Q3 Rajasthan production was up 1.4% QoQ driven by a strong performance of Mangala EOR.

Operational Highlights for the third quarter ended 31 December 2015 include:

- Rajasthan production up 1.4% QoQ to 170,444 boepd, aided by Mangala EOR and Aiswariya infill

- Mangala EOR average production jumped to c. 19 kbopd as injection volumes ramp-up from 200 kbpld to 330 kbpld, as expected

- First cargo of Rajasthan crude oil successfully loaded through Salaya-Bhogat pipeline for MRPL, generating superior realization

- Signed an agreement with GSPL for construction of pipeline from RGT to Palanpur

- Successful testing of three zones in Raageshwari Deep Main establishes a southern extension of the Raageshwari Deep gas field

- Rajasthan water flood operating costs continues to improve, lowered by 6% QoQ to $5.1/boe

Financial Highlights were as follows:

- Revenue of ₹ 2,039 crore (USD 309 mn); 42% lower YoY, primarily due to decline in crude prices

- EBITDA of ₹ 665 crore (USD 101 mn); higher polymer volume injection increases operating cost

- Profit after Tax of ₹ 9 crore (USD 1 mn); impacted by lower operating profit

- Strong Cash and Cash Equivalents position of ₹ 18,470 crore (USD 2.8 bn)

Mr. Mayank Ashar, Managing Director and CEO of Cairn India commented:

"We maintain our strategic objective of generating healthy free cash flow which has been successfully guiding us through the constantly deteriorating oil pricing scenario. Our unwavering commitment to improve cost efficiency continues to help us to navigate through the weak oil price situation and to generate free cash flow. Focus on adoption of advanced technologies remains the key to improve our efficiency and productivity. I'm pleased to inform you that the world's largest EOR project at Mangala is yielding results exactly as we envisaged. We continue to pursue pre-development activities for our growth projects to make them future ready for rapid development on oil prices rebound.

"We are continuously engaging with the Government to take actions to support the oil & gas industry in such a low oil price environment."

* * *

Thor Mining [LON:THR] said Australian company PC Gold Pty Ltd expects a decision late next week on the availability of unconditional financing for the conditional acquisition of Thor's gold interests.

On Dec. 16, 2015, Thor announced the sale of its gold interests to PC Gold for AUD3.5m, plus royalties. The agreement with PC Gold was subject to receipt by that company of an unconditional financing offer from a precious metal private equity fund based in San Francisco, USA.

"Thor has been advised that the financier and PC Gold have conducted their site visit and substantially completed their due diligence. PC Gold has advised Thor that they expect a decision late next week to determine if the financing offer to PC Gold will become unconditional," it said.

Following that determination, PC Gold will advance the balance of the A$150,000 deposit, with A$25,000 already received, and move to completion of definitive documentation for the proposed acquisition.

Thor further advises that the parties have agreed to exclude the Dundas Gold Project rights from the agreement and that PC Gold will restrict its acquisition to the Spring Hill Gold Project.

* * *

The sector's biggest riser was North River Resources [LON:NRRP] - up by more than 22.2% in late trading. The biggest faller was Alexander Mining [LON:AXM] - down by more than 18.1%.

At 3:56pm:

[LON:AQP] Aquarius Platinum Ltd share price was -0.12p at 12.38p

[LON:BEM] Beowulf Mining PLC share price was 0p at 5.2p

[LON:BKY] Berkeley Resources Ltd share price was -0.38p at 23.88p

[LON:CEY] Centamin PLC share price was +0.95p at 62.95p

[LON:CHL] Churchill Mining PLC share price was 0p at 19.75p

[LON:CNR] Condor Gold PLC share price was +4.25p at 24.25p

[LON:CZA] Coal of Africa Ltd share price was 0p at 2.25p

[LON:FDI] Firestone Diamonds PLC share price was 0p at 17.5p

[LON:FRES] Fresnillo PLC share price was +6.5p at 668.5p

[LON:GEMD] Gem Diamonds Ltd share price was +8.75p at 116.75p

[LON:GFM] Griffin Mining share price was +1.63p at 24.63p

[LON:HOC] Hochschild Mining PLC share price was +3p at 48p

[LON:KMR] Kenmare Resources PLC share price was +0.06p at 0.61p

[LON:NRRP] North River Resources PLC share price was +0.02p at 0.08p

[LON:THR] Thor Mining PLC share price was -0p at 0.03p

[LON:VED] Vedanta Resources PLC share price was -0.9p at 212.5p

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