MONTREAL, Aug. 16, 2021 (GLOBE NEWSWIRE) -- Dynacor Gold Mines Inc. (TSX: DNG / OTC: DNGDF) (Dynacor or the Corporation) released its unaudited consolidated financial statements and the management's discussion and analysis (MD&A) for the second quarter ended June 30, 2021.
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).
Q2-2021 OVERVIEW AND HIGHLIGHTS
OVERVIEW
Dynacor completed the three-month period ended June 30, 2021 (“Q2-2021”) reporting a new quarterly sales record with $42.8 million in sales and a net income of $2.2 million (US$ 0.06 per share), still ahead of its annual guidance, compared to sales of $8.0 million and a net loss of (-$0.7 million) (-US$0.02 per share) in the second quarter of 2020 (“Q2-2020”). Without mitigating the very solid Q2-2021 performance, the Q2-2020 comparative figures had been significantly impacted by the Covid-19 crisis with the temporary shut-down of the Veta Dorada plant resulting in the only quarterly loss recorded by the Corporation since 2010.
The Corporation ore purchasing, and processing activities continued to be very strong with 31,280 tonnes of ore purchased and 30,374 tonnes processed.
With growing volumes of gold sold, the Corporation was able to increase its quarterly sales for the fourth consecutive quarter.
Considering the fast growth of its ore purchase volume, the Corporation decided to move ahead with the construction on the plant expansion which was originally planned for the third quarter. The expansion work has been completed in June well ahead of time and under budget.
The plant was fully commissioned and successfully ran at 400 tonnes per day (“tpd”) during 11 days in June. Subsequent to the quarter end, the daily throughput was increased to the maximum capacity of 430 tpd. The mill has been operating at full capacity for the last five weeks.
HIGHLIGHTS
Operational
- Ore inventory covering one month of production. With a new record quarter of ore purchased (31,280 tonnes in Q2-2021) and despite the increase in volume processed, the Corporation maintained a level of inventory exceeding 11,000 tonnes. This represents a 41.5% increase vs. the end of 2020.
- Highest quarterly volume processed. In Q2-2021, despite down-time periods due to maintenance or plant expansion activities, the Veta Dorada plant processed a historical high volume of 30,374 tonnes of ore (334 tpd average) compared to 29,327 in Q1-2021 (326 tpd) and 3,244 tonnes (136 tpd) in Q2-2020. (Considering 91 days in Q2-2021, 90 days in Q1-2021 and 24 potential working days due to Covid-19 restrictions plant shut-down in Q2-2020);
- Another quarter-to-quarter production increase. During Q2-2021, gold equivalent production amounted to 25,172 AuEq ounces compared to 21,975 AuEq in Q1-2021 (14.5% increase) and 1,935 AuEq ounces in Q2-2020.
Financial
- Record quarterly sales. With slightly higher average selling prices (+1.8%) and higher quantities sold (+2.7%), compared to the last record quarter (Q1-2021), sales amounted to $42.8 million in Q2-2021 compared to $40.9 million in Q1-2021 and $8.0 million in Q2-2020;
- Increased gross operating margin. Gross operating margin of $6.5 million (15.2% of sales) in Q2-2021, compared to $5.3 million (13.0% of sales) in Q1-2021 and nil in Q2-2020;
- Strong net income. Net income and comprehensive income of $2.2 million (US$0.06 per share) similar to Q1-2021 ($2.1 million) and compared to a net loss of (-$0.7 million) in Q2-2020;
- Record cash gross operating margin. The Q2-2021 cash gross operating margin in surpassing $300 per AuEq ounce sold (1) compared to $257 in Q1-2021 and $117 in Q2-2020;
- Quarter to quarter increase in EBITDA(2). $5.0 million compared to $4.6 million in Q1-2021 (a 8.7% increase) and nil in Q2-2020;
- Stable cash-flow from operating activities before change in working capital items. Cash flow from operating activities before change in working capital items of $3.2 million (US$0.08 per share) (3), stable for the third consecutive quarter and compared to nil in Q2-2020;
- Solid cash position. Cash on hand of $13.4 million at June 30, 2021 compared to $11.9 million at year-end 2020.
Cash Return to Shareholders
- 33% increase in monthly dividend from June 2021. During Q2-2021, dividends totaling $0.5 million (CA$0.6 million) were paid including a CA$0.0067 monthly dividend in June 2021.
(1) Cash gross operating margin per AuEq ounce is in US$ 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 bases, 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.
https://www.globenewswire.com/news-release/2021/08/16/2281009/0/en/Dynacor-Reports-a-New-Record-Quarter-With-Sales-of-42-8-Million-and-a-Net-Income-of-2-2-Million-US-0-06-Per-Share-CA-0-07-in-Q2-2021-Ahead-of-Annual-Guidance.html