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Dundee Corporation Announces Second Quarter 2022 Financial Results

T.DC.A

TORONTO, Aug. 10, 2022 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) today announced its financial results for the three and six months ended June 30, 2022. All currency amounts in this press release are in Canadian dollars except as otherwise indicated.

SECOND QUARTER 2022 RESULTS

  • Reported net loss from investments for the second quarter of 2022 of $52.9 million (2021 – income of $1.3 million). For the six months ended June 30, 2022, the Corporation reported a net loss from investments of $6.3 million (2021 – $9.6 million).

  • Reported net loss attributable to owners of the Corporation for the second quarter of 2022 of $44.5 million (2021 – $11.5 million), or loss of $0.52 per share (2021 – $0.14 per share) including total non-cash items of $41.6 million (2021 – $15.0 million).

  • For the six months ended June 30, 2022, the Corporation reported a net loss attributable to owners of the Corporation of $13.4 million (2021 – $31.2 million), or loss of $0.17 per share (2021 – $0.37 per share) including total non-cash items of $10.1 million (2021 – $31.9 million).

  • On a consolidated basis, the Corporation reported cash and cash equivalents of $66.0 million as at June 30, 2022.

Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation, commented:

“Dundee operated in a challenging environment in the second quarter of 2022. Accelerating inflation, concerns over slowing global growth amid monetary tightening, and an ongoing war in Europe that continues to disrupt energy supplies and strain supply chains took a toll on risk appetite. The recent flight from risk assets weighed on Dundee’s investment portfolio and reduced investment activity and fee generation.”

“We believe the latest market pullback creates an opportunity for Dundee, as we hold to our strong conviction that the need for high quality and sustainably sourced mining assets has never been greater. We remain focused on investing in the long-term and working with our investee companies as advisors and partners to maximize asset value and realize their full potential.”

Mr. Goodman concluded, “The entire team at Dundee continues to work hard to execute on all aspects of our transformation strategy. I am encouraged by our ability to sustain and grow our momentum in the second quarter of 2022. Our team remains committed to growing the core business, streamlining operations, divesting non-core businesses, and setting Dundee up to deliver long-term, sustainable value for our stakeholders, shareholders and partners. I would like to thank the entire team for their efforts in managing through a period of incredible change.”

FINANCIAL RESULTS

Operating results during the second quarter of 2022 reflect a $53.2 million market depreciation (2021 – $0.8 million market appreciation) in certain of the Corporation’s investments that are carried in the consolidated financial statements at fair value through profit or loss. In addition, net loss from investments during the second quarter of 2022 is net of $0.3 million (2021 – $0.5 million) dividend and interest income distributed from its portfolio investments. Additionally, during the second quarter of 2022, the Corporation recognized earnings from its equity accounted investments, excluding real estate joint ventures, of $0.7 million (2021 – loss of $0.2 million).

OPERATING SUBSIDIARIES’ PERFORMANCE

Goodman & Company, Investment Counsel Inc. (“GCIC”)

GCIC’s AUM decreased from $64.0 million at the end of March 2022 to $42.8 million at the end of June 2022. During the second quarter of 2022, redemptions of AUM were $1.3 million. During the three months ended June 30, 2022, this segment incurred a pre-tax loss of $1.0 million (2021 – $0.2 million).

During the three months ended June 30, 2022, GCIC recognized financial services revenue of $0.3 million (2021 – $0.9 million) from the services provided by Dundee Goodman Merchant Partners, a division of GCIC.

Dundee Sustainable Technologies Inc. (“Dundee Technologies”)

Dundee Technologies incurred a pre-tax loss of $0.9 million (2021 – $0.8 million) during the three months ended June 30, 2022. Revenue during the same period was $1.0 million (2021 – $1.4 million).

AgriMarine Holdings Inc. (“AgriMarine”)

During the three months ended June 30, 2022, AgriMarine reported a pre-tax loss of $1.3 million (2021 – $0.9 million) with sales revenue of $1.4 million (2021 – $1.7 million).

SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS

Carrying Value as at
Jun 30, 2022 Dec 31, 2021
Operating subsidiaries $ 45,424 $ 45,844
Equity accounted investments 29,728 24,250
Investments carried at fair value through profit or loss 188,191 185,297
Other net corporate account balances 58,685 79,899
Total shareholders' equity 322,028 335,290
Less: Shareholders' equity attributable to holders of:
Preference Shares, series 2 (27,667 ) (27,667 )
Preference Shares, series 3 (50,423 ) (50,423 )
Shareholders' equity attributable to holders of Class A
Subordinate Voting Shares and Class B Shares of the Corporation $ 243,938 $ 257,200
Number of Class A Subordinate Voting Shares and Class B Shares of the Corporation issued and outstanding
Class A Subordinate Voting Shares 85,010,882 84,697,363
Class B Shares 3,114,491 3,114,491
88,125,373 87,811,854
Shareholders' Equity on a Per Share Basis $ 2.77 $ 2.93


The Corporation’s unaudited interim consolidated financial statements as at and for the three and six months ended June 30, 2022 and 2021, along with the accompanying management’s discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) and may be viewed by interested parties under the Corporation’s profile at www.sedar.com or the Corporation’s website at www.dundeecorporation.com.

ABOUT DUNDEE CORPORATION:

Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.

FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Dundee Corporation’s current expectations regarding future events including but not limited to, the strategic partnership with Aura Minerals and the future development of the Borborema Gold Project. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee Corporation’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Annual Information Form of Dundee Corporation and subsequent filings made with securities commissions in Canada. Dundee Corporation does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Investor and Media Relations
T: (416) 864-3584
E: ir@dundeecorporation.com


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