Another great quarter
MONTREAL, May 16, 2022 (GLOBE NEWSWIRE) -- Dynacor Gold Mines Inc. (TSX: DNG) (Dynacor or the Corporation) released its unaudited condensed interim consolidated financial statements and the management's discussion and analysis (MD&A) for the first quarter ended March 31, 2022. These documents have been filed electronically with SEDAR at www.sedar.com and will be available on the Corporation's website www.dynacor.com. (All figures in this press release are in Ms of US$ unless stated otherwise. All amounts per share are in US$. All variance % are calculated from rounded figures. Some additions might be incorrect due to rounding). Q1-2022 OVERVIEW AND HIGHLIGHTS OVERVIEW Dynacor completed the three-month period ended March 31, 2022 (Q1-2022) with quarterly sales of $50.1 million and a record net income of $5.1 million (US$0.13 per share) compared to sales of $40.9 million and a net income of $2.1 million (US$0.05 per share) for the first quarter of 2021 (Q1-2021). A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9cb09329-0b1b-4031-ac29-1d29e61ed9b7 Due to an increase of 25.1% in tonnage processed combined with a 5.1% higher gold market price the Corporation sales increased by 22.5% compared to Q1-2021. Following a +10.1% gain over the Peruvian Sol in 2021, the US dollar has lost 6.5% against the Peruvian Sol in Q1-2022. This reversal impacted favorably and significantly the Q1-2022 current and deferred tax expenses and accordingly the Corporations Q1-2022 net income. HIGHLIGHTS Operational Higher volume processed. Thanks to the 2021 increase in plant processing capacity, to the level of ore inventory at the beginning of the period and to the volume of ore supplied in Q1-2022, the Veta Dorada plant processed a volume of 36,696 tonnes of ore (408 tpd average) compared to 29,327 tonnes in Q1-2021 (326 tpd), a 25.1% increase; Higher gold production. In Q1-2022, gold equivalent production amounted to 27,691 AuEq ounces compared to 21,975 AuEq ounces in Q1-2021 a 26.0% increase. Financial Solid cash position. Cash on hand of $25.7 million at the end of Q1-2022 compared to $27.1 million at year end 2021 due to the variance in working capital items; Higher gold production, gold market price and trend and favorable exchange rate (Peruvian sol against US$) boost overall financial performance. Significant increases in all financial aspects; Earning per share in line with financial guidance (considering the non-cash deferred tax recovery). Dynacor recorded a net income of $5.1 million in Q1-2022 ($0.13 or CA$0.16 per share) compared to $2.1 million ($0.05 or CA$0.06 per share) in Q1-2021; Increase of 22.5% in Sales. With greater quantities and a higher gold market price, sales amounted to $50.1 million in Q1-2022 compared to $40.9 million in Q1-2021; Increased gross operating margin. Gross operating margin of $7.5 million (15.0% of sales) in Q1-2022, compared to $5.3 million (13.0% of sales) in Q1-2021; Increased operating income. Operating income of $6.1 million compared to $4.1 million in Q1-2021; Strong cash gross operating margin. Cash gross operating margin of $306 per AuEq ounce sold (1) compared to $257 in Q1-2021; Increased EBITDA. EBITDA (2) of $6.8 million, compared to $4.6 million in Q1-2021; Robust cash flows. Cash flows from operating activities before change in working capital items of $5.2 million ($0.13 per share) (3) compared to $3.1 million ($0.08 per share) in Q1-2021. Return to Shareholders Share buy-back. 285,836 common shares repurchased for $0.7 million (CA$ 0.9 million); Increased dividends. A 25% monthly dividend increase is paid since January 2022. On an annual basis, the 2022 dividend will represent CA$0.10 per share or more than 3% dividend yield based on the beginning of 2022 share price. (1) Cash gross operating margin per AuEq ounce is in US$ and is calculated by subtracting the average cash cost of sale per equivalent ounces of Au from the average selling price per equivalent ounces of Au and is a non-IFRS 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 company. (2) EBITDA: Earnings before interest, taxes and depreciation is a non-IFRS 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-IFRS 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 basis, effects due to different tax structures as well as the effects of different capital structures. (3) Cash-flow per share is a non-IFRS 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-IFRS measure which can also be helpful to investors as it provides a result which can be compared with the Corporation market share price.