Welcome!

News Feed Item

Dynasty Reports Financial Results for the Three and Six Months Ended June 30, 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/15/14 -- Dynasty Metals & Mining Inc. ("Dynasty" or the "Company") (TSX:DMM)(OTCQX:DMMIF) announces that it has released its unaudited consolidated financial statements for the three and six months ended June 30, 2014. The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, the Company's unaudited consolidated financial statements as at and for the three and six months ended June 30, 2014 and the related notes thereto (the "Financial Statements") and the Company's management's discussion and analysis ("MD&A"), which are available on the Company's website (www.dynastymining.com) and on SEDAR (www.sedar.com).

All dollar amounts in United States dollars unless otherwise stated.

Summary

The Company reported a net loss of $2.1 million for the six months ended June 30, 2014 which comprised of a net loss of $3.2 million for the three months ended June 30, 2014 and the previously reported net profit of $1.1 million for the three months ended March 31, 2014.

The net loss incurred for the three months ended June 30, 2014 was primarily attributable to a decrease in gold production and associated revenue since there was limited access to regions within the Zaruma Gold Project (the "Zaruma Project") deposit containing higher grade gold. As a result, the average grade of material processed reduced from 10.81 grams per tonne ("g/t") during the three months ended March 31, 2014 to 4.42 g/t during the three months ended June 30, 2014.

Subsequent to June 30, 2014 to date, the average grade of material mined has improved with the extractable gold grade averaging approximately 9 g/t, while still mining comparable average daily tonnes as achieved in the second quarter of 2014. The increase in grade has resulted in the Company shipping dore bars from the Zaruma Project containing approximately 4,000 ounces of gold since June 30, 2014.

Although the reduced grade gave rise to disappointing results for the period it was not unexpected given the current stage of ongoing development and the early stage commercial production phase of operations at the Zaruma Project, specifically:


--  a substantial amount of mine development work was performed during the
    period in order to advance the Zaruma mine. Furthermore, since the
    Company's accounting policy is to expense all development work at the
    Zaruma Project as it is incurred this expenditure is included in the
    income statement thereby increasing the loss for the period as compared
    to if the Company had adopted an accounting policy to capitalize these
    expenses; and 
    
--  it is not uncommon to encounter areas of the Zaruma deposit with
    significantly higher or lower grades as compared to the average grade
    previously disclosed in the Company's mineral resource estimate, since
    the resource at Zaruma is known to contain a significant variability in
    grade between different areas, which are often in close proximity to
    each other. This characteristic is not uncommon among other high-grade
    narrow quartz vein deposits. 

It is for this reason that the Company has previously disclosed, and continues to maintain, the expectation that during this early commercial production phase of operations at the Zaruma Project it is unlikely that the Company will achieve a consistent quarterly production profile until the Zaruma mine is developed further and material is mined from multiple veins simultaneously.

As the Company is still in the process of updating its Technical Reports, including in respect of the Zaruma Project, readers are reminded not to rely upon the mineral resource estimates contained in the Company's public filings until such time as Technical Reports supporting such estimates have been filed.

Zaruma Gold Project Operating Results


                                                                            
                                        Six months Three months Three months
                                        ended June   ended June  ended March
                                          30, 2014     30, 2014     31, 2014
                                       (unaudited)  (unaudited)  (unaudited)
----------------------------------------------------------------------------
                                                                            
Gold Revenue                           $15,200,129  $ 5,809,173  $ 9,390,956
                                                                            
Gold sales (ounces)                         11,768        4,531        7,237
                                                                            
Average realized price per ounce       $     1,292  $     1,282  $     1,298
                                                                            
Mined material milled (tonnes)              53,963       37,065       16,898
                                                                            
Average grade (grams/tonne)                   6.42         4.42        10.81
                                                                            
Average recovery (%)                          92.6         90.4         94.7
                                                                            
Gold production (ounces)                    10,319        4,761        5,558
                                                                            
Cash costs (US$/oz Au)(a,b)            $     1,099  $     1,310  $       919
                                                                            
Cash costs (US$/tonne Au)(a,b)         $       210  $       168  $       302
                                                                            
All-in sustaining cash cost (US$/oz                                         
 Au)(a,b)                              $     1,465  $     1,646  $     1,310
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------

a.  Net of by-product credits. 
b.  Non-GAAP measure. For the disclosure of the manner in which these
    measures are calculated and a reconciliation to operating expenditures
    refer to the "Non-GAAP Measures" section of the Company's MD&A for the
    three and six months ended June 30, 2014 available on SEDAR
    (www.sedar.com). 
c.  There are no comparable operating results for the three and six months
    ended June 30, 2013 since the Company commenced accounting for the
    Zaruma Project as being in commercial production commencing on October
    1, 2013 as the project was meeting production milestones to be
    operating, for accounting purposes, in the way intended by Management. 

Cash costs per ounce and all-in sustaining cash costs per ounce for the six months ending June 30, 2014 were $1,099 and $1,465 respectively. Cash costs per ounce and all-in sustaining cash costs per ounce for the three months ending June 30, 2014 were $1,310 and $1,646 respectively. Cash costs per ounce and all-in sustaining cash cost per ounce in fiscal 2014 to date have shown a considerable increase compared to the three months ended December 31, 2013 when cash costs per ounce and all-in sustaining cash costs per ounce were $592 and $791 respectively.

The Company's operations consist of a large fixed cost proportion, with the actual cash expenditure not varying a great deal between periods, irrespective of the grade or tonnes of material mined and processed. This means that reported cash cost per ounce measures are highly sensitive to the grade of material mined and processed in a given period. The reduction in grade mined and processed during the six months ending June 30, 2014, as well as the cost of development work which was all expensed, has therefore increased the per ounce cash cost measures.

In the near term, the Company intends to remain focused on developing the main decline with the intent to continue to develop high grade gold veins in the area, thereby providing access to additional mining faces which in turn is expected to improve production. This outlook is based on current operations, mine plans and exploration results, which are subject to change and as such cannot be assured (see "Critical Risk Factors" section of the Company's MD&A for the three and six months ending June 30, 2014).

The following tables show selected consolidated financial information as at June 30, 2014 and December 31, 2013 and for the three and six months ending June 30, 2014 and 2013:


                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                      For the Six   For the Six For the Three For the Three 
                     Months Ended  Months Ended  Months Ended  Months Ended 
                         June 30,      June 30,      June 30,      June 30, 
                          2014(a)       2013(a)       2014(a)       2013(a) 
----------------------------------------------------------------------------
                                                                            
OPERATING REVENUES    $15,676,886   $         -   $ 5,999,302   $         - 
                    --------------------------------------------------------
                                                                            
OPERATING COSTS                                                             
 (Note 4)                                                                   
  Mining and                                                                
   processing          12,534,807             -     6,622,119             - 
  Royalties               752,604             -       379,238             - 
  Depreciation and                                                          
   depletion            2,321,189             -     1,215,739             - 
                    --------------------------------------------------------
                       15,608,601             -     8,217,096             - 
                    --------------------------------------------------------
EARNINGS (LOSS) FROM                                                        
 MINE OPERATIONS           68,285             -    (2,217,794)            - 
EXPENSES                                                                    
  Corporate                                                                 
   administration                                                           
   (Note 5)             2,031,009     2,354,681       917,209     1,108,321 
  Stock-based                                                               
   compensation                                                             
   (Note 11)              134,563        50,051        39,236        (6,747)
                    --------------------------------------------------------
                        2,165,572     2,404,732       956,445     1,101,574 
                    --------------------------------------------------------
EARNINGS (LOSS)                                                             
 BEFORE INCOME TAXES   (2,097,287)    2,404,732    (3,174,239)   (1,101,574)
                                                                            
INCOME TAXES                                                                
  Current tax                                                               
   expense                 27,565             -             -             - 
                    --------------------------------------------------------
                                                                            
NET EARNINGS /                                                              
 (LOSS) FOR THE                                                             
 PERIOD               $(2,124,852)  $(2,404,732)  $(3,714,239)  $(1,101,574)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
BASIC AND DILUTED                                                           
 LOSS PER SHARE           $ (0.05)      $ (0.06)      $ (0.09)      $ (0.03)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Consolidated Statements of Financial Position, as at:


                                                                            
                                                  June 30,     December 31, 
As at:                                                2014             2013 
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
Current assets                                                              
  Cash                                      $      356,633   $    4,913,500 
  Receivables                                       19,817           20,162 
  Prepaid expenses                                 757,950          556,380 
  Inventory                                      4,294,211        4,320,543 
                                          ----------------------------------
                                                                            
                                                 5,428,611        9,810,585 
Advances, deposits and warranties                  306,348          306,348 
Mine properties, plant and equipment            49,326,508       51,309,641 
Exploration and evaluation properties           15,128,900       14,067,965 
                                          ----------------------------------
                                                                            
                                            $   70,190,367   $   75,494,539 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
                                                                            
Current liabilities                                                         
  Accounts payable and accrued liabilities  $    5,299,661   $    6,090,741 
  Taxes payable                                          -        2,426,941 
  Short term loans                               1,000,000        1,132,591 
                                          ----------------------------------
                                                                            
                                                 6,299,661        9,650,273 
Provision for closure and restoration            1,882,181        1,845,452 
                                          ----------------------------------
                                                                            
                                                 8,181,842       11,495,725 
                                          ----------------------------------
Shareholders' equity                                                        
  Capital stock                                 89,059,365       89,059,365 
  Contributed surplus                           14,075,949       13,941,386 
  Deficit                                      (41,126,789)     (39,001,937)
                                          ----------------------------------
                                                                            
                                                62,008,525       63,998,814 
                                          ----------------------------------
                                                                            
                                            $   70,190,367   $   75,494,539 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liquidity

As at June 30, 2014 the Company had cash resources of $0.4 million and a working capital deficit (current assets less current liabilities) of $0.8 million compared to cash resources of $4.9 million and a working capital surplus of $0.2 million as at December 31, 2013.

Included within short term loans, and within the calculation of working capital, is a $1 million Promissory Note from corporations represented by the Company's President and Chief Executive Officer. The Promissory Note bears no interest, is repayable on demand and is secured by way of a General Security Agreement over certain assets of the Company.

Since June 30, 2014 the Company has shipped dore bars containing approximately 4,000 ounces of gold from the Zaruma Project, with an approximate value of $5.2 million, which have either been sold or are in transit to the refinery and are soon expected to be available for sale.

About Dynasty Metals & Mining

Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador.

The Company is currently focused on developing its Zaruma Gold Project, at which the Company is engaged in intermittent production. The Company also has the following non-producing assets: the Jerusalem Project and Dynasty Goldfield Project.

Brian Speechly, a Fellow of AusIMM (Australian Institute of Mining and Metallurgy), a director of the Company and a "qualified person" within the definition of that term in the National Instrument 43-101, has supervised the preparation of and has verified the technical information contained in this news release.

Forward-Looking Information

This news release contains statements which are, or may be deemed to be, "forward-looking information" which are prospective in nature. Often, but not always, forward-looking information can be identified by the use of forward-looking words such as "plans", "expects" or "does not expect", "is expected", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Such information in this news release includes, without limitation, statements regarding Dynasty's future plans and expectations relating to the Zaruma mine development and mineral extraction Forward-looking information is not based on historical facts, but rather on then current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including assumptions relating to the Company's ability to continue progress through its declines with minimal or no interruption, that the Company will be able to continue its progress in respect of its mines as planned, that the Company will continue to sell processed gold and silver at levels that allow it to fund the continued development of its mining projects and sustain its operations, that the Company will have access to capital if required, that all necessary approvals and arrangements will be obtained, renewed and/or finalized in a satisfactory manner in order to continue developing the Company's projects, and that the Company's equipment will operate at expected levels. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause Dynasty's actual results, revenues, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important risks that could cause Dynasty's actual results, revenues, performance or achievements to differ materially from Dynasty's expectations include, among other things: (i) risks related to prior mining activity at its mines and declines, (ii) uncertainties relating to mineral resource estimates (iii) risks related to availability of capital on satisfactory terms, (iv) risks related to being an early stage producer; (v) risks related to Dynasty's lack of history in producing metals from Dynasty's mineral exploration properties and its ability to successfully establish mining operations or profitably produce precious metals; (vi) that Dynasty will be unable to successfully negotiate agreements with the holders of surface rights on areas covered by Dynasty's project concessions; (vii) changes in the market prices of gold, silver, and other minerals, which, in the past, have fluctuated widely and which could affect the profitability of Dynasty's operations and financial condition; (viii) risks related to governmental regulations, including taxation statutes; (ix) risks related to Dynasty's primary properties being located in Ecuador, including political, economic, and regulatory instability; (x) uncertainty in Dynasty's ability to obtain and maintain certain permits necessary to the Company's current and anticipated operations; and other risks found in Dynasty's Annual Information Form for the year ended December 31, 2013, which is available on SEDAR at www.sedar.com. Other than in accordance with its legal or regulatory obligations, Dynasty is not under any obligation and Dynasty expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, 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. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
The unique combination of Amazon Web Services and Cloud Raxak, a Gartner Cool Vendor in IT Automation, provides a seamless and cost-effective way of securely moving on-premise IT workloads to Amazon Web Services. Any enterprise can now leverage the cloud, manage risk, and maintain continuous security compliance. Forrester's analysis shows that enterprises need automated security to lower security risk and decrease IT operational costs. Through the seamless integration into Amazon Web Services, ...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions with...
"What is the next step in the evolution of IoT systems? The answer is data, information, which is a radical shift from assets, from things to input for decision making," stated Michael Minkevich, VP of Technology Services at Luxoft, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
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.
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 ...