Vancouver, British Columbia–(Newsfile Corp. – August 17, 2021) – Montreal-based Dynacor Gold Mines (TSX: DNG) (OTC Pink: DNGDF) has reported unaudited record quarterly gold sales. Sales for the second quarter ending June 30, 2021 increased from $8.0 million to $42.8 million, an increase of 435% over the same quarter in 2020, ahead of the company’s guidance, with all numbers in US funds. Net income was $2.2 million or $0.06 per share, compared to a net loss of ($700,000) or ($0.02) per share in the second quarter of 2020.
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Without mitigating the solid performance in the most recent quarter, the second quarter performance in 2020 was significantly impacted by the Covid-19 crisis with the temporary shut-down of the Veta Dorada plant, resulting in the only quarterly loss recorded by the company since 2010.
The company processes gold ore purchased from artisanal miners and the small-scale mining industry or “ASMs” in Peru, with more than 600 registered ASMs currently supplying ore. Ore purchasing and processing continued to be very strong, with 31,280 tonnes of ore purchased, a new record, and 30,374 tonnes processed, the highest quarterly volume processed despite down-time periods due to maintenance and plant expansion activities.
The inventory of ore on hand for processing exceeded 11,000 tonnes at the end of the quarter, representing close to one month’s supply, a 41.5% increase over the inventory at the end of 2020. Given this fast growth in ore purchase volume, management advanced the construction of the Veta Dorada plant expansion, which was originally scheduled for the third quarter.
The expansion, budgeted at $1.8 million and funded through internally generated cash flow, was completed in June. well ahead of schedule and under budget. The plant was fully commissioned and successfully ran at 400 tonnes per day during 11 days in June, an increase from the previous 345 tonnes per day throughput. Subsequent to the end of the quarter, the daily throughput reached the maximum capacity of 430 tonnes per day, at rate it has been operating at for the last 5 weeks.
Gold equivalent production in the latest quarter amounted to 25,172 ounces, an increase of 14.5% over the 21,975 ounces reported in the first quarter, and the 1,935 ounces produced in the second quarter of 2020, the quarter impacted by Covid-19.
As at June 30, 2021, the company had $13.4 million in cash on hand, up from $11.9 million at the end of December. In February, the company replaced the CDN$0.015 quarterly dividend with a monthly dividend of CDN$0.005, which was recently increased by 33% to CDN$0.0067 monthly.
With decades of experience in Peru, the company intends to expand its processing operations to other jurisdictions. It also owns a gold exploration property in the Apurimac department.
For more information, please visit the company’s website www.dynacor.com, or contact the company at 514-393-9000 ext 230 or by email at [email protected].
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