Dynacor produced over 13K Oz in 3Q

Dynacor returns to profit,  

Increase of 34% YoY during 3Q 

Dynacor returns to profit in Q3-2020; highest cash gross operating margin per ounce since 2014 of $304 per ounce, a year-over-year (YoY) increase of 34%; operating at full capacity with near-term plans to expand! 

Dynacor Gold Mines has released its unaudited consolidated financial statements and the management’s discussion and analysis (MD&A) for the third quarter ended September 30, 2020. These documents have been filed electronically with SEDAR and will be available on the Corporation’s website. 

After a three-month stoppage due to the Covid-19 crisis, which ended a streak of thirty-six (36) consecutive profitable quarters, the Corporation successfully resumed its ore purchase and processing activities, immediately returning to profits. During Q3-2020, the Corporation gradually increased ore purchases and generated sales of $ 24.1 million recording a net income of $ 1.2 million ($0.03 per share).

Q3, 2020 overview said, the resumption of activities, together with the return of employees and suppliers, was very successful and compliant with the Ministry of Health guidelines. 

Our Covid-19 sanitary protocol contains measures to monitor the risk of exposure to the Covid-19 at our workplaces, as well as establishing prevention and control standards to avoid the appearance and/or the spread of the virus and to ensure the health and safety of our workers, suppliers, customers and visitors. 

Phase two and three of the Peruvian government de-confinement plan started in July and August respectively and although small scale miners reinitiated activities at a slower pace, the Corporation was able to attract available ore, to gradually increase its volume throughput and reached by mid-September its full production capacity rate of 300 tpd. This production level has been maintained since. 

Considering its solid financial situation and the gradual resumption of its activities, the Corporation pursued its dividend policy and declared in September, a 0.015$ CA per share dividend which was paid in October. 

Return to strong volume processed following the Q2-2020 temporary shut-down. Volume of 23,064 tonnes processed compared to 3,244 tonnes in the previous quarter (Q2-2020) and to 26,421 tonnes in Q3-2019, a decrease of 12.7% compared to 2019, due to the gradual resumption of operations; Gold production comparable to Q1-2020 pre-Covid-19 crisis. 

Gold production of 13,421 ounces compared to 1,897 ounces in Q2-2020 and 22,230 ounces in Q3-2019 due to a lower ore volume and lower grade of ore processed; increasing ore inventory level. The Corporation’s readiness to restart operations allowed for aggressive ore purchases help increase inventory level and sustain production.