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
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze 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. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that A&I Solutions has been named “Bronze 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. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that EARP will exhibit at 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. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Tappest will exhibit MooseFS at 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. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).