Dynacor Reports a Quarterly Record Net Income of $5.1 Million in Q1-2022 (US$0.13 or CA$0.16 Per Share) and Sales of $50.1 Million
Dynacor Gold Mines reported its Q1-2022 results with significant growth. Quarterly sales reached $50.1 million, up 22.5% from Q1-2021's $40.9 million. The net income skyrocketed to $5.1 million (US$0.13 per share), a notable rise from $2.1 million (US$0.05 per share) last year. This increase was driven by a 25.1% rise in ore processed and a favorable exchange rate impacting tax expenses. The company remains optimistic with a projected sales range of $200-220 million for 2022.
- Quarterly sales increased by 22.5%, reaching $50.1 million.
- Net income rose to $5.1 million, up from $2.1 million in Q1-2021.
- Gold equivalent production increased by 26% to 27,691 AuEq ounces.
- Gross operating margin improved to $7.5 million (15% of sales) from $5.3 million (13%).
- Strong cash position with $25.7 million on hand.
- Share buyback of 285,836 shares for $0.7 million.
- 25% increase in monthly dividends since January 2022.
- Current tax liabilities increased to $1.994 million from $2.217 million.
- Net cash from operating activities dropped to $0.5 million from $6.8 million in Q1-2021.
- Operating cash flows were negatively impacted by changes in working capital items.
MONTREAL, May 16, 2022 (GLOBE NEWSWIRE) -- Dynacor Gold Mines Inc. (TSX: DNG) (Dynacor or the Corporation) released its unaudited condensed interim consolidated financial statements and the management's discussion and analysis (MD&A) for the first quarter ended March 31, 2022.
These documents have been filed electronically with SEDAR at www.sedar.com and will be available on the Corporation's website www.dynacor.com.
(All figures in this press release are in Ms of US$ 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).
Q1-2022 OVERVIEW AND HIGHLIGHTS
OVERVIEW
Dynacor completed the three-month period ended March 31, 2022 (“Q1-2022”) with quarterly sales of
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9cb09329-0b1b-4031-ac29-1d29e61ed9b7
Due to an increase of
Following a +
HIGHLIGHTS
Operational
- Higher volume processed. Thanks to the 2021 increase in plant processing capacity, to the level of ore inventory at the beginning of the period and to the volume of ore supplied in Q1-2022, the Veta Dorada plant processed a volume of 36,696 tonnes of ore (408 tpd average) compared to 29,327 tonnes in Q1-2021 (326 tpd), a
25.1% increase; - Higher gold production. In Q1-2022, gold equivalent production amounted to 27,691 AuEq ounces compared to 21,975 AuEq ounces in Q1-2021 a
26.0% increase.
Financial
- Solid cash position. Cash on hand of
$25.7 million at the end of Q1-2022 compared to$27.1 million at year end 2021 due to the variance in working capital items; - Higher gold production, gold market price and trend and favorable exchange rate (Peruvian sol against US$) boost overall financial performance. Significant increases in all financial aspects;
- Earning per share in line with financial guidance (considering the non-cash deferred tax recovery). Dynacor recorded a net income of
$5.1 million in Q1-2022 ($0.13 or CA$0.16 per share) compared to$2.1 million ($0.05 or CA$0.06 per share) in Q1-2021; - Increase of
22.5% in Sales. With greater quantities and a higher gold market price, sales amounted to$50.1 million in Q1-2022 compared to$40.9 million in Q1-2021; - Increased gross operating margin. Gross operating margin of
$7.5 million (15.0% of sales) in Q1-2022, compared to$5.3 million (13.0% of sales) in Q1-2021; - Increased operating income. Operating income of
$6.1 million compared to$4.1 million in Q1-2021; - Strong cash gross operating margin. Cash gross operating margin of
$306 per AuEq ounce sold (1) compared to$257 in Q1-2021; - Increased EBITDA. EBITDA (2) of
$6.8 million , compared to$4.6 million in Q1-2021; - Robust cash flows. Cash flows from operating activities before change in working capital items of
$5.2 million ($0.13 per share) (3) compared to$3.1 million ($0.08 per share) in Q1-2021.
Return to Shareholders
- Share buy-back. 285,836 common shares repurchased for
$0.7 million (CA$ 0.9 million ); - Increased dividends. A
25% monthly dividend increase is paid since January 2022. On an annual basis, the 2022 dividend will represent CA$0.10 per share or more than3% dividend yield based on the beginning of 2022 share price.
(1) Cash gross operating margin per AuEq ounce is in US$ 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 basis, 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.
RESULTS FROM OPERATIONS
Extract from the unaudited Consolidated Statement of net income and comprehensive income
| For the three-months periods ended March 31, | ||||||
| (in $'000) (unaudited) | 2022 | 2021 | ||||
| Sales | 50,080 | 40,909 | ||||
| Cost of sales | (42,555) | (35,606) | ||||
| Gross operating margin | 7,525 | 5,303 | ||||
| General and administrative expenses | (1,397) | (1,208) | ||||
| Other project expenses | (41) | (16) | ||||
| Operating income | 6,087 | 4,079 | ||||
| Financial income and expenses | (56) | (51) | ||||
| Foreign exchange loss | (18) | (100) | ||||
| Income before income taxes | 6,013 | 3,928 | ||||
| Current income tax expense | (1,515) | (1,554) | ||||
| Deferred income tax expense | 628 | (268) | ||||
| Net income and comprehensive income | 5,126 | 2,106 | ||||
| Earnings per share | ||||||
| Basic | $0.13 | |||||
| Diluted | $0.13 | |||||
The
The Q1-2022 gross operating margin amounted to
General and administrative expenses amounted to
The Q1-2022 current tax provision was positively affected by the variance of the Peruvian Sol against the US$ generating a
The Q1-2022 net income was also favorably affected by the recording of a
Reconciliation of non-IFRS measures
| (in $'000) (unaudited) | For the three-month periods ended March 31, | |
| 2022 | 2021 | |
| Reconciliation of net income and comprehensive income to EBITDA | ||
| Net income and comprehensive income | 5,126 | 2,106 |
| Income taxes expense (current and deferred) | 887 | 1,821 |
| Financial expenses | 56 | 51 |
| Depreciation | 683 | 643 |
| EBITDA | 6,752 | 4,621 |
CONSOLIDATED CASH FLOW FROM OPERATING, INVESTING AND FINANCING ACTIVITIES AND WORKING CAPITAL AND LIQUIDITY
Operating activities
For the three-month period ended March 31, 2022, the cash flow from operations, before changes in working capital items, amounted to
Investing activities
During the three-month period ended March 31, 2022, the Corporation invested
Financing activities
In Q1-2022, monthly dividends totaling CA
In Q1-2022, 285,836 common shares were repurchased under the Corporation normal course issuer bid share buyback program for a total cash consideration of
In Q1-2022, the Corporation issued 172,500 common shares following the exercise of purchase options for a consideration of
Working capital and liquidity
As at March 31, 2022, the Corporation’s working capital increased to
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at March 31, 2022, total assets amounted to
| (in $'000) (unaudited) | As at March 31, | As at December 31, |
| 2022 | 2021 | |
| Cash | 25,723 | 27,099 |
| Accounts receivable | 12,361 | 8,407 |
| Inventories | 15,101 | 14,764 |
| Property, plant and equipment | 20,744 | 20,759 |
| Right-of-use assets | 302 | 341 |
| Exploration and evaluation assets | 18,516 | 18,516 |
| Other assets | 1,917 | 1,471 |
| Total assets | 94,664 | 91,357 |
| Trade and other payables | 11,926 | 11,680 |
| Asset retirement obligations | 3,492 | 3,553 |
| Current tax liabilities | 1,994 | 2,217 |
| Deferred tax liabilities | 927 | 1,555 |
| Lease liabilities | 314 | 343 |
| Shareholders' equity | 76,011 | 72,009 |
| Total liabilities and equity | 94,664 | 91,357 |
FOLLOW-UP OUTLOOK 2022
Ore processing
For 2022, the Corporation forecasted sales (1) in the range of
For 2022, Dynacor should incur capital expenditures ranging between
The Corporation is continuing to assess other opportunities of growth in Peru as well as in other jurisdictions.
(1) Using opening 2022 market gold price
ABOUT DYNACOR
Dynacor is a dividend-paying industrial gold ore processor headquartered in Montreal, Canada. The corporation is engaged in gold production through the processing of ore purchased from the ASM (artisanal and small-scale mining) industry. At present, Dynacor operates in Peru, where its management and processing teams have decades of experience working with ASM miners. It also owns a gold exploration property (Tumipampa) in the Apurimac department.
The corporation intends to expand its processing operations in other jurisdictions as well.
Dynacor produces environmental and socially responsible gold through its PX IMPACT® gold program. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors pay a small premium to our customer and strategic partner for this PX IMPACT® gold. The premium provides direct investment to develop health and education projects for our artisanal and small-scale miner’s communities.
Dynacor is listed on the Toronto Stock Exchange (DNG).
FORWARD-LOOKING INFORMATION
Certain statements in the preceding 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.
Shares Outstanding: 38,751,747
Website: http://www.dynacor.com
Twitter: http://twitter.com/DynacorGold
PDF available: http://ml.globenewswire.com/Resource/Download/d8e38a25-8aa7-479b-b4f2-af1217450a81
FAQ
What were Dynacor Gold Mines' Q1-2022 sales figures?
What is Dynacor Gold Mines' net income for Q1-2022?
How did Dynacor Gold Mines increase its gold production in Q1-2022?
What impact did the exchange rate have on Dynacor Gold Mines' financials in Q1-2022?
What is Dynacor Gold Mines' financial outlook for 2022?
