2011
Dynacor Gold Mines Inc. (dynacor Symbol : DNG Toronto Stock Exchange (TSX)
Dynacor Generates $ in Fiscal 2010 and Names New CFO Montreal, March 31 , 2011 financial statements for the year report that in 2010, it generated non-cash workin g capital items up from $0.5 million statements along with the management's discussion a nd analysis are available on the Compan y's website www.dynacorgold.com, electronically with SEDAR at www.sedar.com.
2010 Highlights
- EBITDA of $3.7M ($1.8M
- Production of gold for the year was 33,525 ounces ( 23,409 ounces in 2009) an increase of 43%.
- Closed debt financing of $1.5M in order to improve the working capital position of the Company.
- Received gross proceeds placement.
- Completed a successful surface sampling campaign of 993 channel samples with grades up to 14.9 g/t of gold and 5.65% of copper. In January 2011 a 16,700 meter drilling campaign was initia
Excluding the provision on the Peruvian sales taxes withheld and the impairment of the deferred development and exploration costs, the Com pany generated earnings of $2.7M for the year. However, as a result of this provisi on for Peruvian sales taxes withhe $1.6M and the impairment of $3.9M, Dynacor generate d a net loss for the year of $2.8M ($6.5M in 2009), a decrease of $3.7M as compared to 2009.
dynacor ) Toronto Stock Exchange (TSX) Generates $ 3.1 M in Cash Flow from Operations and Names New CFO, 2011 – Dynacor Gold Mines Inc. (TSX:DNG) released its for the year -ended December 31, 2010. The C ompany is pleased to it generated $3.1 million in c ash flow from operating activities before g capital items up from $0.5 million in fiscal 2009. The statements along with the management's discussion a nd analysis are available on the y's website www.dynacorgold.com, and the documents have been filed electronically with SEDAR at www.sedar.com.
EBITDA of $3.7M ($1.8M in 2009) resulting in an increase of 106%.
Production of gold for the year was 33,525 ounces ( 23,409 ounces in 2009) an Closed debt financing of $1.5M in order to improve the working capital position of eceived gross proceeds of $4.5M with the issuance of 4.3M units successful surface sampling campaign of 993 channel samples with up to 14.9 g/t of gold and 5.65% of copper. In January 2011 a 16,700 meter drilling campaign was initia ted.
Excluding the provision on the Peruvian sales taxes withheld and the impairment of the deferred development and exploration costs, the Com pany generated earnings of $2.7M for the year. However, as a result of this provisi on for Peruvian sales taxes withhe $1.6M and the impairment of $3.9M, Dynacor generate d a net loss for the year of $2.8M ($6.5M in 2009), a decrease of $3.7M as compared to 2009.
in Cash Flow from Operations released its audited ompany is pleased to ash flow from operating activities before The audited financial statements along with the management's discussion a nd analysis are available on the the documents have been filed in 2009) resulting in an increase of 106%.
Production of gold for the year was 33,525 ounces ( 23,409 ounces in 2009) an Closed debt financing of $1.5M in order to improve the working capital position of the issuance of 4.3M units from a private successful surface sampling campaign of 993 channel samples with up to 14.9 g/t of gold and 5.65% of copper. In January 2011 a 16,700 meter Excluding the provision on the Peruvian sales taxes withheld and the impairment of the deferred development and exploration costs, the Com pany generated earnings of $2.7M for the year. However, as a result of this provisi on for Peruvian sales taxes withhe ld of $1.6M and the impairment of $3.9M, Dynacor generate d a net loss for the year of $2.8M Sales for 2010 amounted to $43.7M, an increase of 6 5% compared to 2009. The sales tax withholding by the Peruvian authorities caused the Company to operate below the installed capacity for the first three quarters. T hough, the $1.5M in debentures concluded in June and October allowed the Company t o increase its procurement of ore which contributed to the increase in the production output and sales which generated additional liquidities enabling the Company to oper ate at close to full capacity at yearend.
The Company generated a sales volume of 33,037 ounc es in the current year representing a 42% increase from 2009 (23,286 ounces). The average selling price of gold increased by 30% in 2010 compared to 2009 from US$9 58 per ounce to US$1,250 per ounce. This increase contributed to the 31% rise in cash gross margin. The Company generated a gross margin of $8.2M for the year ($4.6M in 2009).
The following table provides a summary of Dynacor’s financial performance in 2010 in comparison with 2009: 2010 2009
Gold production (in ounces) 33,525 23,409 +43%
Gold sales (in ounces) 33,037 23,286 +42%
Sales ($ millions) 43.7 26.5 +65%
Gross margin (US$ per ounce) 236 180 +31%
Gross margin ($ millions) 8.2 4.6 +78%
Net loss ($ millions) (2.8) (6.5) n/a
Cash flow ($ millions) 3.1 0.5 +520%
CASH FLOW, FINANCING ACTIVITIES AND WORKING CAPITAL
During the year, the cash flow from operations before changes in non-cash working capital items was $3.1M compared to $0.5M in 2009. During t he year, the Company received proceeds of $1.5M from the issuance of two debentur es and in December 2010, the Company completed a private placement of 4.3M units at a price of $1.05 per unit for a cash consideration of $4.5M. In December 2010, the Company reimbursed the $2.6M promissory note payable to Malaga Inc.
As at December 31, 2010, the working capital was $4 .8M compared to $0.4M in 2009, an improvement of $4.4M.
Mr. Jean Martineau, President and Chief Executive O fficer of Dynacor Gold Mines Inc. commenting on the Company’s 2010 performance and st ated "We are pleased with our exceptional 2010 results as they continue to exceed our beginning of year projections. Thanks to our strong financial position, we can now expedite an aggressive exploration campaign focussed on our flagship Tumipampa propert y. There are great expectations considering the results obtained from surface sampl es collected (see press release dated August 11, 2009, January 27, 2010, March 7, 2011 ) and our initial drilling results (see Press release dated March 22, 2011). The property i s located in a world class copper and gold skarn-porphyry area. We are looking forward to further drilling results as our drilling campaign unfolds."
2011 OUTLOOK Dynacor's focus is to continue using its cash resou rces generated from its custom milling operation to build long-term value for its sharehol ders through growth of its exploration properties. In the short term, the Company estimate s that in 2011 it will process approximately 45,000 ounces of gold and thus financ e its aggressive drilling campaign on its Tumipampa property in the amount of $5.5M.
APPOINTMENT OF A NEW VICE-PRESIDENT AND CFO
The Board of Directors is pleased to announce the appointment of Joey Trombino as Vice- President and Chief Financial Officer. The Board al so wishes to thank Pierre Monet for his exceptional services to the company since 2007. Pie rre Monet resigned from his position as Dynacor Gold’s Vice-President and CFO in order t o focus his career as the newly appointed President of Malaga Inc. He will however continue to serve the Company as a Special Advisor to Jean Martineau, President and CEO.
Joey Trombino is an experienced financial executive who joined Dynacor Gold in February 2009 as Director of Finance. Prior to this, Mr. Tro mbino was Vice-President and Chief Financial Officer of Positron Technologies and had worked in several private and public companies in senior positions. He started his caree r at KPMG and has been a member of the Canadian Institute of Chartered Accountants since 1990.
Jean Martineau commenting on the nomination stated “I am very pleased to have Joey on board as our new Vice-President and CFO since he ha s acquired a solid knowledge of Dynacor over the past two years. I would also like to specially thank Pierre Monet for his work with us over the past 4 years. He has contribu ted enormously to the development of the Company and I wish him all the best and lots of success in all of his future endeavours”. ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company ac tive in Peru through its subsidiaries since 1996. The Company's assets include the Acari, Casaden and Tumipampa exploration properties. Dynacor’s gold mill produces gold by cu stom milling. Dynacor's strength and competitive advantage comes with the experience and knowledge the Company has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.
FORWARD LOOKING INFORMATION
Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Dyna cor, or industry results, to be materially different from any future result, perfor mance or achievement expressed or implied by such forward-looking statements. These s tatements reflect management's current expectations regarding future events and operating performance as of the date of this news release.
For more information, please contact : Dynacor Gold Mines Inc.
Jean Martineau
President & CEO #510-2000 McGill College Montreal, Quebec, H3A 3H3 T: 514-288-3224 Fernand Lefrançois Investor Relations Dynacor Gold Mines Inc.
T: 514 288-3224 / 418 614-3467
Dale Nejmeldeen
Investor Relations
Dynacor Gold Mines Inc.
T: 778.574.2806 | M:
604.562.1348 F: 604.608.9223 E:[email protected]