VANCOUVER, British Columbia, May 17, 2022 (GLOBE NEWSWIRE) -- Montreal-based Dynacor Gold Mines (TSX:DNG), a dividend-paying industrial gold ore processor, has released its unaudited condensed interim consolidated financials and MD&A for the quarter ended March 31, 2022. Gold sales for the quarter ended March 31, 2022 came in at US$50.1 million an increase of 22.5% over the US$40.9 reported for the quarter ended March 2021.
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The company also reported record net income of US$5.1 million or $0.13 per share for the quarter, compared to net income of US$2.1 million or US$0.05 per share for the comparable quarter in 2021.
Several factors contributed to the record net income. In mid-2021, Dynacor completed the expansion of its Veta Dorada plant which is now running at its full 430 tpd production capacity, resulting in the tonnage processed increasing by 25.1%. This resulted in an increase in gold production, with 27,691 gold equivalent ounces reported in the current quarter compared to 21,975 gold equivalent ounces produced in the first quarter of 2021, an increase of 26.0%
Following a +10.1% gain over the Peruvian Sol in 2021, the US dollar subsequently lost 6.5% against the Peruvian Sol in the first quarter of 2022. This reversal favorably and significantly impacted the current and deferred tax expenses and accordingly the company’s net income for the quarter.
The company is forecasting gold sales guidance for 2022 in the range of US$200 to $220 million, representing an expected growth of 4 to 14% over 2021 final production sales, which could result in net income in the range of US$11 to 13 million, or US$0.28 to 0.33 per share.
A 25% monthly dividend increase has been paid since January 2022, which on an annual basis, will represent CA$0.10 per share or more than a 3% dividend yield based on the share price at the beginning of 2022. The company has a solid cash position with US$25.7 million on hand at the end of March.
Dynacor, an international gold ore industrial company purchases ore from artisanal and small-scale miners which it processes at its Veta Dorada processing plant which is strategically located fifteen minutes off the Pan American Highway near Chala in southern Peru.
During 2022, the company plans to spend between US$5 to $8 million at the Chala Plant, including plans to further increase capacity later in the year.
The company owns 100% of the advanced stage Tumipampa gold exploration property in south central Peru’s Apurimac department. It also intends to expand its processing operations in other jurisdictions.
Dynacor, a founding partner in the PX IMPACT® gold program, produces environmental and socially responsible gold. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors pay a small premium for this gold which provides direct investment to develop health and education projects for the artisanal and small-scale miner’s communities.
The shares are currently trading at $3.04, with 38.7 million shares outstanding, following the repurchase of 286,000 shares. For more in-depth information on the company’s quarterly financials, please visit the company’s website www.dynacor.com, or contact the company at 514-393-9000 ext 230 or by email at investors@dynacor.com.
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