2010
Dynacor Gold Mines Inc. ( dynacor Symbol : DNG Toronto Stock Exchange (TSX)
Dynacor Gold Mines Generates $1.
Q3-2010
Montréal, November 15, 2010 – the third quarter ended September discussion and analysis are available on the Compan y’s website www.dynacorgold.com; the documents have been filed electroni cally with SEDAR at Dynacor generated $1.3 million in cash flow from operations in Q3 2009. Cash flow from operations before non increase of $2.2 million compared to Dynacor reported a cash flow from operations before non increase of $1.4 million year-over- «Dynacor has surpassed significantly its objective of 7,000 to 9,000 ounces established for the third quarter with sales close to 10,000 ounces and a production above this level. At this pace, on an annual basis, Dynacor would produce more than 40,000 ounces. This ounce will allow us to invest to further increase the vol ume of gold and invest more into the exploration of Tumipampa. Dynacor’s financial position remains strong with a working capital of $3.0 million of wh million is cash and short- term investments.”
Financial Officer of Dynacor Gold Mines Inc.
RECORD GOLD SALES
Dynacor achieved record g old sales last year. It sold 9,977 ounces of gold during the quarter quarter of 2009 and produced 10,576 The gross margin increased by $ 2.7 million compared to the same quarter last year. Cash gross margin per ounce grew to $237 from $101 a year ago.
For the third quarter of 2010, Dynacor generated an EBITDA negative in Q3-2009. Dynacor continues to take the necessary steps to recover th e sales tax receivable withheld, however, it has decided, for conservative purposes, to fully provide for the amount. loss amounted to $1.0 million in Q3 "We are pleased with the third quarter performance as it continues to exceed expectations. We expedite an aggressive exploration campaign great expectations conside ring the
dated August 11, 2009 and January 27, 2010
skarn-porphyry area” added Mr. Jean Martineau, President and Chief Execu tive Officer of Dynacor Gold Mines Inc.
- (1) EBITDA is a non-GAAP measure. See the non dynacor )
Generates $1. 3 million in Cash Flow from Operations in Dynacor Gold Mines Inc. (TSX:DNG) released its financial results for September 30, 2010. The financial statements along with the management’s discussion and analysis are available on the Compan y’s website www.dynacorgold.com; the documents cally with SEDAR at www.sedar.com .
million in cash flow from operations in Q3 -2010 compared to a use of $0.2 in Q Cash flow from operations before non -cash working capital items amounted to compared to Q3-2009. For the nine- month period ended September 30, 2010, a cash flow from operations before non -cash working capital items of -year.
has surpassed significantly its objective of 7,000 to 9,000 ounces established for the third quarter with sales close to 10,000 ounces and a production above this level. At this pace, on an annual basis, Dynacor would produce more than 40,000 ounces. This coupled with the cash gross margin of $237 will allow us to invest to further increase the vol ume of gold and invest more into the exploration of Dynacor’s financial position remains strong with a working capital of $3.0 million of wh term investments.” commented Mr. Pierre Monet, Vice President and Chie f Financial Officer of Dynacor Gold Mines Inc.
old sales of $13.1 million for the quarter, $9.4 million mor e ounces of gold during the quarter compared to 3,321 ounces for the corresponding quarter of 2009 and produced 10,576 ounces of gold , an increase of 182% from the same period last yea r. 2.7 million compared to the same quarter last year. Cash gross margin per a year ago.
For the third quarter of 2010, Dynacor generated an EBITDA (1) of $1.5 million compared to $1. continues to take the necessary steps to recover th e sales tax receivable withheld, however, it has decided, for conservative purposes, to fully provide for the amount. loss amounted to $1.0 million in Q3 -2010 compared to $1.5 million for th e corresponding quarter of 2009. "We are pleased with the third quarter performance as it continues to exceed expectations. We exploration campaign focussed on our flagship Tumipampa property. There are ring the results obtained from surface samples collected and January 27, 2010 ). The property is located in a world class added Mr. Jean Martineau, President and Chief Execu tive Officer of Dynacor Gold GAAP measure. See the non -GAAP reconciliation in Dynacor’s MDA low from Operations in released its financial results for 30, 2010. The financial statements along with the management’s discussion and analysis are available on the Compan y’s website www.dynacorgold.com; the documents 2010 compared to a use of $0.2 in Q 3cash working capital items amounted to $1.0 million, an month period ended September 30, 2010, cash working capital items of $1.8 million, an has surpassed significantly its objective of 7,000 to 9,000 ounces established for the third quarter with sales close to 10,000 ounces and a production above this level. At this pace, on an annual basis, coupled with the cash gross margin of $237 per will allow us to invest to further increase the vol ume of gold and invest more into the exploration of Dynacor’s financial position remains strong with a working capital of $3.0 million of wh ich $2.2 commented Mr. Pierre Monet, Vice President and Chie f than the same period compared to 3,321 ounces for the corresponding, an increase of 182% from the same period last yea r.
2.7 million compared to the same quarter last year. Cash gross margin per compared to $1. 0 million continues to take the necessary steps to recover th e sales tax receivable withheld, however, it has decided, for conservative purposes, to fully provide for the amount. Therefore, net e corresponding quarter of 2009.
"We are pleased with the third quarter performance as it continues to exceed expectations. We can our flagship Tumipampa property. There are samples collected (see press release world class copper and gold added Mr. Jean Martineau, President and Chief Execu tive Officer of Dynacor Gold
Q3 2010 HIGHLIGHTS
- Production of gold for the quarter 10,576 ounces (3,756
- Gold sales of 9,977 ounces (3,321 ounces in 2009), an increase of 200%
- EBITDA (1) of $1.5M (negative EBITDA of $1.0M in Q3
- Cash flow generated from operating activities befor e change in non $1.0M compared to a use of $1.2
- Increase of $2.3M in operating income ($1.5M compar ed to a loss of $0.8M in Q3
- Gross margin before amortization of $237 per ounce compared to $101 per ounce in Q3
- Peruvian sales tax receivable withheld
Key Financial Information (in $'000)
Sales
Cost of sales (excluding amortization) Gross margin General and administrative expenses Earnings (loss) before provision on the Peruvian sales taxes withheld and current income taxes Net loss EBITDA (1) Cash flow from operating activities before non-cash working capital items Cash flow from operating activities Loss per share, basic and diluted
OUTLOOK
Dynacor's focus is to continue using its cash resources from its custom milling operation to build lon g value for its shareholders through growth of its exploration properties.
In the short term, t he Company estimates 11,000 ounces of gold. Dynacor campaign. The Company expects to issue shortly, an update on its commencement at Tumipampa.
- (1) EBITDA is a non-GAAP measure. See the non Production of gold for the quarter 10,576 ounces (3,756 ounces in Q3-2009) Gold sales of 9,977 ounces (3,321 ounces in 2009), an increase of 200% of $1.5M (negative EBITDA of $1.0M in Q3 -2009) Cash flow generated from operating activities befor e change in non -cash working capital items use of $1.2 M in Q3-2009 Increase of $2.3M in operating income ($1.5M compar ed to a loss of $0.8M in Q3 Gross margin before amortization of $237 per ounce compared to $101 per ounce in Q3 Peruvian sales tax receivable withheld was fully provisioned.
For the three -month periods ended on September 30, For the periods ended on September
2010 2009 2010
13,099 3,670 28,536
Cost of sales (excluding amortization) 10,657 3,299 23,524
2,345 (329) 4,736
General and administrative expenses 540 420 1,
Earnings (loss) before provision on the Peruvian sales taxes withheld and current
1,381 (1,066) 2,861
(911) (1,529) (90)
1,516 (967) 3,178
Cash flow from operating activities before
cash working capital items 955 (1,250) (1,817)
Cash flow from operating activities 1,276 (237)
per share, basic and diluted ($0.03) ($0.05) ($ 0.0
Dynacor's focus is to continue using its cash resources from its custom milling operation to build lon g value for its shareholders through growth of its exploration properties.
he Company estimates in the fourth quarter 2010 it wi ll process between Dynacor is continuing geological surface work, followed by expects to issue shortly, an update on its drill campaign program nearing GAAP measure. See the non -GAAP reconciliation in Dynacor’s MDA cash working capital items , Increase of $2.3M in operating income ($1.5M compar ed to a loss of $0.8M in Q3 -2009) Gross margin before amortization of $237 per ounce compared to $101 per ounce in Q3 -2009 For the nine -month periods ended on September 30, 2010 2009 28,536 20,350 23,524 16,433 4,736 3,031
1, 463 1,214
2,861 1.107
- (90) (167) 3,178 1,380 (1,817) 431 780 (361)
0.0 0) ($0.01)
Dynacor's focus is to continue using its cash resources from its custom milling operation to build lon g -term ll process between 10,000 and followed by a diamond drilling drill campaign program nearing
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company ac tive in Peru through its subsidiaries since 1996. T he Company’s assets include the Acari, Casaden and Tumipampa exploration properties. The produces gold by custom milling. Dynacor’s strengt 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 unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Dynacor, or industry results or achievement expressed or implied by such forward management’s current expectations regarding future events and operating performance as of the this news release.
For more information, please contact
Jean Martineau
President & CEO
Dynacor Gold Mines Inc.
514 288-3224
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company ac tive in Peru through its subsidiaries since 1996. T he Company’s assets include the Acari, Casaden and Tumipampa exploration properties. The produces gold by custom milling. Dynacor’s strengt h 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. 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 For more information, please contact : Dale Nejmeldeen Investor Relations Dynacor Gold Mines Inc.
514 288-3224 | 778 574-2806 [email protected] Dynacor is a gold exploration and mining company ac tive in Peru through its subsidiaries since 1996. T he Company’s assets include the Acari, Casaden and Tumipampa exploration properties. The Company’s mill h 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. looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or, to be materially different from any future result , performance looking statements. These statements reflect management’s current expectations regarding future events and operating performance as of the date of