Dynacor Reports Net Earnings of $780,000 (0.03 per Share) for Q2 2010
MONTREAL, QUEBEC–(Marketwire – Aug. 12, 2010) – Dynacor Gold Mines Inc. (TSX:DNG) released its financial results for the second quarter ended June 30, 2010. The financial statements along with the management’s discussion and analysis are available on the Company’s website www.dynacorgold.com; the documents have been filed electronically with SEDAR at www.sedar.com.
For the second quarter of 2010, Dynacor generated net earnings of $0.8M ($0.03 per share), and earnings before interest, taxes, depreciation and amortization «EBITDA» of $1.2M ($0.04 per share),as well as, a positive cash flow from operations before changes in non-cash working capital items of $0.8M. The Company also realized a cash gross margin of $217 per ounce during the quarter.
« As a result of the long-term debt concluded during the quarter, Dynacor was able to increase the volume of gold ore processed which in turn, resulted in an increase of sales volume of 1,406 ounces over Q2-2009. The net earnings of $0.8M and the positive working capital of $2.1M will allow ,therefore to further increase the volume of gold ore processed in the custom milling plant in the coming months. » commented Mr. Pierre Monet, Vice President and Chief Financial Officer of Dynacor Gold Mines Inc.
« With these excellent results and the positive cash flow, we will be able to accelerate the exploration work at the Tumipampa property. In addition, with the increased production volume already realized and the potential to further increase production in the coming months, the geology group is in the process of developing an exploration program which is more aggressive than was originally established. » added Mr. Jean Martineau, President and Chief Executive Officer of Dynacor Gold Mines Inc.
Q2 2010 HIGHLIGHTS
- Cash flow generated from operating activities before change in non-cash working capital items in the amount of $0.8M ($0.8M in 2009)
- Gross margin before amortization of $217 per ounce compared to $284 per ounce in 2009
- Net Income of $0.8M ($0.6M in 2009)
- EBITDA of $1.2M ($1.0M in 2009)
- Gold sales of 7,234 ounces (5,828 ounces in 2009), an increase of 24%
|Key Financial Information||For the three-month
on June 30,
|For the six-month
on June 30,
|Cost of sales (excluding amortization)||7,495||4,772||12,867||13,133|
|General and administrative expenses||470||348||923||794|
|Cash flow from operating activities before non-cash working capital items||778||775||862||1,681|
|Cash flow from operating activities||(1,132||)||(297||)||(496||)||(124||)|
|Earnings per share, basic and diluted||$0.03||$0.02||$0.03||$0.05|
The Company estimates that it will process between 7,000 and 9,000 ounces of gold for the next quarter. Dynacor will accelerate the exploration of Tumipampa in the third quarter 2010 by focusing on the skarn and will perform geological surface work and detailed geophysics followed by diamond drilling.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. The Company’s assets include the Acari, Casaden and Tumipampa exploration properties. The Acari mill produces gold by custom 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 Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance as of the date of this news release.
Dynacor Gold Mines Inc.
President & CEO
Dynacor Gold Mines Inc.
514-288-3224 / 778-574-2806