TORONTO, Nov. 12, 2021 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) today announced its financial results for the three and nine months ended September 30, 2021. All currency amounts in this press release are in Canadian dollars except as otherwise indicated.
THIRD QUARTER 2021 RESULTS
- Demonstrated significant progress in rationalizing non-core legacy portfolio by completing the sale of the beef division of Blue Goose Capital Corp. (“Blue Goose”) subsequent to quarter end for total proceeds of $71.1 million, including $8.1 million completed during the third quarter of 2021, and paid down $32.3 million in consolidated debt.
- Reduced total corporate G&A costs by 10% compared to the third quarter of 2020 (6% excluding stock-based compensation).
- Cash provided from operating activities was positive $0.9 million (2020 – negative $3.2 million)
- On a consolidated basis, the Corporation reported cash of $84.1 million as at September 30, 2021 (June 30, 2021 – $90.9 million).
- Generated consolidated revenues of $4.8 million (2020 – $5.1 million).
- Incurred a net loss attributable to owners of the Corporation of $48.2 million (2020 – earnings of $15.9 million), or a loss of $0.56 per share (2020 – earnings of $0.14 per share) including total non-cash items of $49.5 million.
Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation, commented:
“Dundee made significant progress in the third quarter of 2021 against all three of our strategic pillars: doing more mining deals, rationalizing our legacy portfolio of non-core assets, and streamlining our cost structure.”
“I am pleased with the way our entire Dundee investment team remained active in identifying, de-risking, and investing in mining companies with solid value propositions during the third quarter. Despite slower deal flow across the mining sector in the quarter, the DGMP team were finders in a number of financings. We increased positions in high-quality, well-run mining companies such as Magna Mining and Mako Gold, with shares of Magna accumulated in the fourth quarter. While the mining equity markets experienced relative softness in the quarter, we remain focused on investing for the long-term and working with our investee companies as advisors and partners to maximize asset value and realize their full potential.”
Mr. Goodman continued, “We were extremely successful in further rationalizing our legacy portfolio by completing the sale of Blue Goose’s beef division, which closed after quarter end. Closing this deal represents a substantial milestone as Blue Goose was a major piece of our legacy portfolio. The aggregate proceeds of $71.1 million, including $8.1 in the third quarter, and subsequent repayment of debt significantly deleverages our balance sheet, reduces quarterly expenses, and frees up our team’s time and resources to focus more closely on our core mining investment business. We will continue to look for ways to further rationalize our non-core legacy portfolio and will update the market on our progress on an ongoing basis.”
“We made further progress in driving down our Corporate G&A run rate in the third quarter of 2021. We see a clear path to additional G&A improvements in leasehold costs, IT costs, insurance costs, and other items. We remain laser-focused on reducing run-rate G&A as well as funding to subsidiaries.”
Mr. Goodman concluded, “Dundee continues to execute on all aspects of our transformation strategy. I am encouraged by our ability to sustain and grow our momentum through the first three quarters of 2021 and I look forward to a strong finish to the year. Our team remains committed to growing the core business and setting Dundee up to deliver long-term, sustainable value for our stakeholders, shareholders, and partners.”
https://www.globenewswire.com/news-release/2021/11/12/2333678/0/en/Dundee-Corporation-Announces-Significant-Progress-on-Company-Transformation-and-Reports-Q3-2021-Financial-Results.html