Welcome!

News Feed Item

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

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/14/14 -- 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
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
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. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
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, discussed 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 efficienc...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...