|By Marketwired .||
|March 28, 2014 01:31 PM EDT||
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.
-- 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.
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
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.
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.
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.
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)
Shares outstanding: 36,373,587
President and CEO
Dynacor Gold Mines Inc.
514-288-3224 ext. 228
Dynacor Gold Mines Inc.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 28, 2017 02:45 AM EST Reads: 13,979
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Feb. 28, 2017 02:30 AM EST Reads: 1,839
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 28, 2017 02:15 AM EST Reads: 7,089
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Feb. 28, 2017 02:15 AM EST Reads: 5,075
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 28, 2017 02:15 AM EST Reads: 697
Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infrastructure through automation. Ayehu solutions have been deployed by major enterprises worldwide, and currently, support thousands of IT processes across the globe. The company has offices in New York, California, and Isr...
Feb. 28, 2017 02:15 AM EST Reads: 821
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Feb. 28, 2017 01:45 AM EST Reads: 2,039
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...
Feb. 28, 2017 01:15 AM EST Reads: 2,816
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Feb. 27, 2017 11:45 PM EST Reads: 910
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Feb. 27, 2017 11:00 PM EST Reads: 9,165
Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said "No to LUNs." With Tintri they manage only virtual machines, in a fraction of the footprint and at far lower cost than conventional storage. Tintri offers the choice of all-flash or hybrid-flash platform, converged or stand-alone structure and any hypervisor. Rather than obsess with storage, leaders focus on the business app...
Feb. 27, 2017 10:15 PM EST Reads: 748
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
Feb. 27, 2017 10:00 PM EST Reads: 1,306
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Feb. 27, 2017 09:15 PM EST Reads: 4,177
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Feb. 27, 2017 08:00 PM EST Reads: 7,970
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Feb. 27, 2017 07:45 PM EST Reads: 1,646