Welcome!

News Feed Item

Dynacor Announces Total Sales of $112.1 Million and Net Income of US$ 9.1 Million ($0.25 per Share) in Fiscal 2013

MONTREAL, QUEBEC -- (Marketwired) -- 03/28/14 -- Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the Corporation) a Corporation with gold and silver ore processing operations and exploration projects in Peru, has released its audited consolidated financial statements for the year-ended December 31, 2013. The Corporation is pleased to report that in 2013, it recorded a net income of $9.1 M ($0.25 per share) compared to $7.7 M ($0.22 per share) in 2012 and cash flow from operating activities before changes in working capital items of $10.3 M ($0.29 per share) compared to $9.2 M ($0.26 per share) in 2012.

The audited consolidated financial statements along with the management's discussion and analysis are available on the Corporation's website www.dynacorgold.com, and the documents have been filed electronically with SEDAR at www.sedar.com.

All figures in this press release are in millions of US$ except where noted. Earnings per share and gross operating margin per ounce are in US$. All variance % are calculated with rounded figures.

2013 HIGHLIGHTS


--  Record annual gold production of 76,883 oz compared to 61,274 oz in
    2012; 
--  Record gold and silver sales of $112.1M in 2013 compared to $105.0M in
    2012, a 6.8% increase; 
--  Net income of $9.1M in 2013 ($0.25 per share) compared to $7.7M ($0.22
    per share) in 2012; 
--  EBITDA of $15.4M compared to $14.0M in 2012; 
--  Cash flow from operating activities before change in working capital
    items of $10.3M ($0.29 per share) (1) in 2013 compared to $9.2 M ($0.26
    per share) (1) in 2012; 
--  Cash on hand of $8.5 M at year end compared to $3.3 M at December 31,
    2012; 
--  Exploration: Tumipampa delivers spectacular results in 2013;  

(1)  Cash-flow per share is a non-GAAP financial performance measure with no
     standard definition under IFRS. It is therefore possible that this     
     measure could not be comparable with a similar measure of another      
     Corporation. The Company uses this non-GAAP measure which can also be  
     helpful to investors as it provides a result which can be compared with
     the Company market share price.                                        

Results from operations:

During the year ended December 31, 2013, the Corporation increased its net shareholder equity by 42.6% from $22.3 M in 2012 to $31.8 M in 2013. This increase results from the internal growth generated by the ore processing activities which delivered in 2013 all-time record results.

During 2013, the Huanca plant ran at an average rate of 228 tpd, since its capacity was raised at 230 tpd and then 240 tpd during the third and fourth quarter of 2013. This gave way to another record financial and production year.

The Corporation recorded a net income of $9.1M ($0.25 per share) compared to $7.7M and $0.22 per share in 2012.

During the year, the Corporation produced 76,883 ounces of gold compared to 61,264 in 2012 a 25.5% increase. The increase in gold production compared to 2012 is explained by a higher tonnage and higher gold content of ore processed. During the year the grades of ore processed averaged 1.04oz/DMT (32.36 g/t Au) compared 0.9 oz/DMT (28.00 g/t Au) in 2012.

Total sales for the year amounted to $112.1M (77,266 ounces of gold sold) compared to $105.0M (59,910 ounces sold) in 2012, an increase of 6.8% over 2012. Variation is explained by increased gold production of 25.5% which were offset by a decrease in gold selling price of 15.6%. The average selling price of gold was $1,412 per ounce in 2013 compared to $1,674 in 2012.

Silver production was down from 157,862 ounces in 2012 to 131,685 ounces in 2013 mainly due to lower silver content in the ore processed.

The gross operating margin for the period amounted to $20.5 M (18.3%) compared to $17.8 M (17.0%), an increase of 14.8% over 2012. This increase is explained by higher tonnage processed, higher grades of ore processed and lower depreciation expense as tailing pond was completely depreciated before the end of the year.

The gold cash gross operating margin per ounce was at $264 in 2013 compared to $295 in 2012, a 10.5% decrease over the period, mainly due to a decrease in the price of gold.

FINANCIAL HIGHLIGHTS


                                               For years ended December 31, 
(in $'000)                                             2013            2012 
                                            --------------------------------
                                            --------------------------------
                                                                            
Sales                                               112,127         104,994 
Cost of sales                                        91,641          87,148 
Gross operating margin                               20,486          17,846 
General and administrative expenses                   3,932           3,429 
Operating income                                     14,819          12,608 
Net income and comprehensive income                   9,125           7,716 
EBITDA(1)                                            15,415          13,957 
                                                                            
Net Cash flow from operating activities                                     
 before changes in working capital items             10,307           9,229 
                                                                            
Cash flow from operating activities                  12,518           3,929 
                                                                            
Earnings per share                                                          
Basic                                                 $0.25           $0.22 
Diluted                                               $0.24           $0.21 
                                                                            
Reconciliation of Net comprehensive income                                  
 to EBITDA (1)                                                              
                                                                            
Net comprehensive income                              9,125           7,716 
Income taxes                                          5,179           4,708 
Financial expenses                                      182             398 
Depreciation                                          1,062           1,320 
Impairment of exploration andevaluation                                     
 assets                                                   -              44 
Gain on revaluation of asset retirement                                     
 obligations                                           (133)              - 
Revaluation of warrants                                   -            (229)
                                            --------------------------------
EBITDA                                               15,415          13,957 
                                            --------------------------------
                                            --------------------------------
                                                                            
(1)  EBITDA: "Earnings before interest, taxes, depreciation and             
     amortization, revaluation of warrants and impairment" is a non-GAAP    
     financial performance measure with no standard definition under IFRS.  
     It is therefore possible that this measure could not be comparable with
     a similar measure of another Corporation. The Corporation uses this    
     non-GAAP measure as an indicator of the cash generated by the          
     operations and allows investor to compare the profitability of the     
     Corporation with others by canceling effects of different assets bases,
     effects due to different tax structures as well as the effects of      
     different capital structures.                                          

CASH FLOW FROM OPERATING, INVESTING AND FINANCING ACTIVITIES AND WORKING CAPITAL

Operating Activities

During the year the cash flow from operations before changes in working capital items amounted to $10.3 M ($0.29 per share) compared to $9.2M ($0.26 per share) in 2012. Total cash generated from operating activities amounted to $12.5 M compared to $3.9 M in 2012. Changes in working capital items amounted to $2.2M (-$5.3M in 2012) resulting mainly from a decrease of $6.2 M in inventory, an increase of $4.3M in trade and other receivables since the Corporation had accumulated six months of recoverable Peruvian sales tax credits, for which major part was recovered subsequent to year-end. At December 31, 2013 ore inventory represented 19 days of production compared to 24 at year-end 2012.

Investing Activities

During the year the Corporation invested $3.7M ($1.6 M in 2012) for the acquisition of property, plant and equipment to be used at the current Huanca plant, including an additional $0.8 M for the extension of the tailing pond and for pre-construction expenditure at Chala. Investment to date for Chala amounts to $2.0 M and includes: environmental, hydrogeological water and tailings studies, permitting expenses, consultant fees, equipment purchases, construction of workers camp, water well, a communication tower and a power line that will connect the site to the national grid.

Additions to exploration and evaluation assets during the year amounted to $2.3 M ($0.8M in 2012) as the Corporation ran its planned exploration program at Tumipampa and for which excellent results were published in 2013 and 2014.

Financing activities

During 2013, the Corporation did not complete any share issue financing (nil in 2012). A total of 345,944 options were exercised for proceeds of $0.1M (300,000 options for gross proceeds of $0.1M in 2012).

The Corporation became debt-free following the payment of the second quarter interest and reimbursement in June of the outstanding long term debt which had matured.

Liquidity and working capital

The delay in obtaining the construction permit for the Chala plant led to an increase in the Corporation's cash balance in 2013. The Corporation's working capital amounted to $17.4M of which $8.5M was in cash ($13.3M of which $3.3M in cash at December 31, 2012).

As of December 31, 2013, the Corporation had no financial commitment besides those disclosed in the section Long Term Liabilities and Contractual Obligations and has no restrictions in transferring funds from Peruvian subsidiaries to the parent Corporation.

2014- Ore processing outlook

During the first quarter of 2014, the Corporation's gold ore processing operations were slowed down due to energetic and unprecedented measures taken by the Peruvian Authorities to combat illegal gold mining and illegal gold exports from Peru. Consequently and despite the fact that the Corporation is solely purchasing ore from registered miners, it faced delays, due to general increased measures at customs, in exporting its gold dore production. This situation led to a temporary stoppage of ore purchases and a production slow-down. This situation has temporally affected the Corporation and accordingly its Q1-2014 financial results. The Corporation has now resumed its gold ore processing operations and gold exports and expects the operations to run at full capacity in the upcoming weeks.

Exploration outlook

Following the excellent exploration results obtained in 2013 from the cross cut and underground drilling of the Manto Dorado and the three other high grade veins Dynacor is planning to intensify its exploration of Tumipampa in 2014 and into 2015 with an expected program of approximately $4.5M.

ABOUT DYNACOR GOLD MINES INC.

Dynacor is a gold and silver ore processing and a gold exploration and mining Corporation active in Peru through its subsidiaries since 1996. The Corporation differentiates itself from pure exploration companies as it also generates income and cash flow from its wholly owned gold ore processing plant in Peru. The Corporation's assets include five exploration properties, including the Tumipampa property, as well as its now 250 tpd gold and silver ore processing mill at Huanca. Dynacor's mill produces gold from the processing of ore purchased from many registered miners. Dynacor's strength and competitive advantage comes with the experience and knowledge the Corporation has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.

FORWARD LOOKING INFORMATION

Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.

Dynacor Gold Mines Inc. (TSX:DNG)

Website: http://www.dynacorgold.com

Twitter: http://twitter.com/DynacorGold

Facebook: facebook.com/DynacorGoldMines

Shares outstanding: 36,373,587

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...