Dynacor Reports Net Earnings for Q1 2010
MONTRÉAL, QUÉBEC–(Marketwire – May 11, 2010) – Dynacor Gold Mines Inc. (TSX:DNG) is pleased to report its financial results for the first quarter of 2010 ended March 31, 2010. The unaudited consolidated financial statements (all currency figures appear in Canadian dollars unless otherwise specified) along with management’s discussion and analysis are available on the Company’s website (www.dynacorgold.com) and have been filed electronically on SEDAR (www.sedar.com).
During Q1 2010, Dynacor generated net earnings of $41,387 and a positive cash flow from operations of $635,968. Despite a decrease in the volume of gold that was custom milled, the Company realized a gross margin of $171 per ounce and administrative expenses remained stable as compared to the corresponding quarter in 2009.
« Despite the decrease in sales volume of 3,657 ounces as compared to the first quarter of 2009, the Company nevertheless generated a gross margin of $0.9M as compared to $1.8M in 2009. The return to profitability is a very positive achievement. We have ended the quarter with cash on hand and short-term investments in excess of $1.2M » commented Mr. Pierre Monet, Vice President and Chief Financial Officer of Dynacor Gold Mines Inc.
« Resolving the withholding of tax receivables issue with the Peruvian authorities, would allow the Company to resume the exploration of its Tumipampa property. In the meantime, the Company is looking into obtaining debt financing in order to improve the Company’s operations. Currently, we estimate that the Company will process between 5,000 and 6,000 ounces of gold during the second quarter » added Mr. Jean Martineau, President and Chief Executive Officer of Dynacor Gold Mines Inc.
Q1 2010 HIGHLIGHTS
- Cash flow generated from operating activities before change in non-cash working capital items in the amount of $0.1M ($0.9M in 2009);
- Gross margin before amortization of $171 per ounce compared to $206 per ounce in 2009;
- Net income of $41,387 ($0.8M in 2009);
- Gold sales of 5,342 ounces (8,999 ounces in 2009), a decrease of 41%.
|Principal Financial Information||For the three-month periods|
|(in ‘000)||ended March 31,|
|Cost of sales (excluding amortization)||5,372||8,361|
|General and administrative expenses||453||446|
|Cash flow from operating activities before non-cash working capital items||84||906|
|Cash flow from operating activities||636||174|
|Earnings per share, basic and diluted||$ 0.00||$ 0.03|
Given the promising exploration results obtained, the exploration of Tumipampa in 2010 will focus on the skarn and include geological surface work and detailed geophysics followed by diamond drilling. The pace of exploration work will depend on resolving the sales tax issue and financing.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company, which has been 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