Click here to close now.



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
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...