The unaudited condensed interim consolidated financial statements along with the MD&A are available on the Company'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$ unless stated otherwise. Earnings per share and cash-flow per share are in US$. All variance % are calculated from rounded figures. Some additions might be incorrect due to rounding).
Following a first quarter where the Corporation had to temporarily stop its ore purchases and gold exports, due to new vigorous measures taken by Peruvian Government over illegal gold exports, Dynacor rebounded with the production of 17,608 ounces and the sales of 20,521 ounces of gold during Q2-2014 compared to the production of 17,893 and the sales of 17,808 ounces of gold in Q2-2013. The second quarter sales include sales of gold dore which were produced in Q1 but only exported in Q2-2014 due to the circumstances that prevailed in
During the three-month period ended
As indicated in our
Overall during the quarter, the Huanca gold ore processing plant ran at its full 250 tpd capacity during 44 days in the months of May and June, as ore inventory was still being rebuilt. At the end of the quarter, there was 1,870 DMT of ore in inventory representing 7.5 production days.
Jean Martineau Dynacor's President and CEO stated "Overall Q2-2014 performance is a little short of our expectations due to uncontrollable circumstances that prevailed in
-- Cash on hand of
$11.7Mat June 30, 2014compared to $8.5Mat December 31, 2013; -- Gold and silver sales of $26.8Mcompared to $25.9Min Q2-2013 an
increase of 3.5%; -- Gold production of 17,608 oz compared to 17,893 oz in Q2-2013 a decrease
of 1.6%; -- Net income of
$2.1Min Q2-2014 or $0.06per share compared to $ 0.9Mor $0.03per share in Q2-2013;
-- EBITDA of
-- Cash flow from operating activities before change in working capital
$ 2.4Mor $0.06per share (1) compared to $1.5Mor $0.04per share (1) a 60% increase over Q2-2013;
(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 Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation market share price.
Results from operations:
During the three-month period ended
In Q2-2014, the Huanca plant processed 16,830 DMT of ore compared to 18,785 DMT in Q2-2013 a decrease of 10.4%. Despite this reduced throughput, Dynacor managed to produce a similar volume of gold, with a production of 17,608 ounces compared to 17,893 ounces in Q2-2013, a slight decrease of 1.6% mitigated by the increase grade of ore processed.
The average gold grade for Q2-2014 was 1.10 oz/ DMT compared to 1.01 oz/ DMT in Q2-2013 an increase of 8.9% over Q2-2013.
A total of 20,521 ounces of gold was sold during Q2-2014, compared to 17,808 ounces of gold in Q2-2013 an increase of 15.2%. This increase is attributable to the sales of gold dore which had been produced during Q1-2014 but were only exported in Q2-2014 due to the situation prevailing at the time in
Total sales in Q2-2014 amounted to
During the quarter, average sales price per equivalent ounce Au was
The gross operating margin for the period amounted to
Silver production which is a by-product of the ore processed was 17,990 ounces in Q2-2014 compared to 25,694 in Q2-2013 explained by lower volume of ore processed and lower silver content.
FINANCIAL HIGHLIGHTS For the three-month For the six-month periods ended June 30, periods ended June 30, (in $'000) 2014 2013 2014 2013 ================================================ Sales 26,781 25,870 39,085 59,212 Cost of sales 22,153 22,113 31,901 49,814 Gross operating margin 4,628 3,757 7,184 9,399 General and administrative expenses 1,000 1,002 1,812 1,832 Operating income 3,170 2,291 4,723 6,577 Net income and comprehensive income 2,051 941 2,910 3,919 EBITDA((1)) 3,521 2,382 5,354 6,998 Net Cash flow from operating activities before changes in working capital items 2,430 1,477 3,683 4,613 Cash flow from operating activities 3,796 6,881 5,049 10,721 Earnings per share Basic
$0.06 $0.03 $0.08 $0.11Diluted $0.05 $0.02 $0.07 $0.10Reconciliation of Net comprehensive income to EBITDA ((1)) Net comprehensive income 2,051 941 2,910 3,919 Income taxes 1,041 1,058 1,645 2,263 Financial expenses 27 42 55 134 Depreciation 402 341 744 682
------------------------------------------------ EBITDA 3,521 2,382 5,354 6,998 ================================================
( (1))EBITDA: "Earnings before interest, taxes and depreciation" is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure as an indicator of the cash generated by the operations and allows investor to compare the profitability of the Corporation with others by canceling effects of different assets bases, effects due to different tax structures as well as the effects of different capital structures.
CASH FLOW FROM OPERATING, INVESTING AND FINANCING ACTIVITIES AND WORKING CAPITAL
During the quarter the cash flow from operations before changes in working capital items amounted to
Total cash generated from operating activities amounted to
During the period, the Corporation invested
Additions to exploration and evaluation assets amounted to
2014- Ore processing outlook and update
Ore processing operations
The Corporation has set the following production guidance for 2014:
-- To process 75,000 DMT of gold ore; -- To produce 70,000 ounces of gold.
Total gold production as of
-- Total of 30,832 DMT of gold ore processed (41.1 % of yearly guidance); -- Total of 29,783 ounces of gold produced ( 42.5% of yearly guidance);
Dynacor is a gold and silver ore processing and a gold exploration and mining Corporation active in
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.
Shares outstanding: 36,429,487
FOR FURTHER INFORMATION PLEASE CONTACT:
Dynacor Gold Mines Inc. Jean MartineauPresident and CEO 514-393-9000 ext. 228 Dynacor Gold Mines Inc Dale NejmeldeenInvestor Relations 604.492.0099 M: 604.562.1348 firstname.lastname@example.org Source: Dynacor Gold Mines Inc.