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

Contacts:
Jean Martineau
President and CEO
Dynacor Gold Mines Inc.
514-288-3224 ext. 228

Dale Nejmeldeen
Investor Relations
Dynacor Gold Mines Inc.
604.492.0099
M: 604.562.1348
[email protected]

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
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained , Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.