ENP Newswire -
Release date- 15082014 -
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
The Company reported a net loss of
The net loss incurred for the three months ended
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
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
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
As the Company is still in the process of updating its Technical Reports, including in respect of the
Cash costs per ounce and all-in sustaining cash costs per ounce for the six months ending
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
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.
Included within short term loans, and within the calculation of working capital, is a
The Company is currently focused on developing its
For further information please visit the Company's website at www.dynastymining.com
Tel: (604) 687-7810
Toll Free: 1 888-735-3881
Tel: (403) 262-9888
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
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.
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