Condor Gold {AIM: CNR} has written off its investment in El Salvador, due to the mining moratorium imposed by that country.
This has nearly doubled the reported financial loss for this year.
Drilling at La India, Nicaragua.
Condor Gold’s pre-tax loss almost doubles due to El Salvador write down
Condor Gold {AIM: CNR} reported a pretax loss, almost double that of 2016, driven by the impairment of its activities in El Salvador.
Condor Gold reported a pretax loss of £7.7 million for 2016, a significant widening from the £3.1 million loss reported a year earlier.
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The increase was almost entirely down to the £4.1 million impairment of the company’s El Salvador assets, following the government’s decision to ban metallic mining in the region and all related activities, after a long-running moratorium on mining activities.
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Administrative expenses increased to £3.6 million from £3.1 million the prior year. The company currently does not produce any revenue, as it is the exploration and development phase.
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Condor Gold has focused its operations on its La India Project in Nicaragua, completing 719.6 meters of drilling on the Cacao prospect in November, and identifying wide dilation zones for gold bearing fluids.
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Shares in Condor Gold fell from 61p to 55p on announcement of the news, but have since recovered that initial loss. This was helped by a 90,000 share purchase by large investor Jim Mellon at 60p.