Dynacor Group Reports Record Quarterly Sales of $67.7 Million and a Net Income of $4.8 Million in Q1-2024 (US$0.13 or CA$0.17 Per Share)
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240516127576/en/
(Graphic: Business Wire)
These documents have been filed electronically with SEDAR+ at www.sedarplus.com and will be available on the Corporation's website www.dynacor.com.
(All figures in this press release are in Ms of US$ 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).
Q1-2024 OVERVIEW AND HIGHLIGHTS
OVERVIEW
In 2023, second half of January planned exports had been postponed to February explaining the high sales level in February and lower sales in January.
HIGHLIGHTS
Operational
- Higher ore volume supplied. Total ore volume supplied exceeded 43,000 tonnes during the quarter, a 19.9% increase compared to Q1-2023. At the end of Q1-2024, the ore inventory level represented more than 40 days of production;
- Higher volume processed. Thanks to the level of ore inventory at the beginning of the period and to the volume of ore supplied, the Veta Dorada plant processed a volume of 44,006 tonnes of ore (484 tpd average) compared to 41,566 tonnes in Q1-2023 (462 tpd), a 5.9% increase;
- Higher gold production. In Q1-2024, gold equivalent production amounted to 31,769 AuEq ounces compared to 29,299 AuEq ounces in Q1-2023 a 8.4% increase.
Financial
-
Constant increases in gold prices from March and high operational performance positively impacted the Q1-2024 financial performance. The gold price has increased from 2,075 $/oz in
January 2024 to 2,207 $/oz inMarch 2024 , as well, the higher tonnage processed positively impacted the sales figures; -
Increase of 19.4% in sales. Sales amounted to
$67.7 million compared to$56.7 million in Q1-2023; -
Increase of 16.7% in gross operating margin. Gross operating margin amounted to
$9.1 million (13.5% of sales), compared to$7.8 million (13.8% of sales) in Q1-2023; -
Increased of 19.5% in operating income. Operating income of
$7.2 million in Q1-2024, compared to$6.1 million in Q1-2023; -
Increased cash gross operating margin. Cash gross operating margin of
$305 per AuEq ounce sold(1) compared to$283 in Q1-2023, a 7.8% increase; -
Record EBITDA up 17.4%. EBITDA (2) of
$8.1 million , compared to$6.9 million in Q1-2023; -
Increase of 15.4% in cash-flow per share. Cash-flows from operating activities before change in working capital items of
$5.6 million ($0.15 per share) (3) compared to$5.0 million ($0.13 per share) in Q1-2023; -
Increased net income of
$4.8 million in Q1-2024 ($0.13 or CA$0.17 per share), compared to the$4.5 million net income ($0.11 or CA$0.15 per share) in Q1-2023. -
Solid cash position. Cash on hand of
$27.7 million at the end of Q1-2024 compared to$22.5 million at year end 2023.
Return to Shareholders
-
Increased share buy-back. 926,800 common shares repurchased for
$2.7 million (CA$3.7 million) in Q1-2024, compared to 29,080 common shares for$0.1 million (CA$0.1 million) in Q1-2023; -
Increased dividends. A 16.7% monthly dividend increase is paid since
January 2024 . On an annual basis, the 2024 dividend will represent CA$0.14 per share or 2.6% dividend yield based on the current share price.
(1) |
Cash gross operating margin per AuEq ounce is in US$ 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 Accounting Standards. 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 Accounting Standards. 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 Accounting Standards. 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
Consolidated Statement of net income and comprehensive income |
||
|
For the three-month periods
|
|
(in $'000) (unaudited) |
2024 |
2023 |
|
|
|
Sales |
67,733 |
56,733 |
Cost of sales |
(58,585) |
(48,904) |
Gross operating margin |
9,148 |
7,829 |
General and administrative expenses |
(1,704) |
(1,553) |
Other projects expenses |
(214) |
(224) |
Operating income |
7,230 |
6,052 |
Financial income net of expenses |
171 |
153 |
Foreign exchange gain (loss) |
(59) |
50 |
Income before income taxes |
7,342 |
6,255 |
Current income tax expense |
(2,577) |
(1,979) |
Deferred income tax recovery |
16 |
191 |
Net income and comprehensive income |
4,781 |
4,467 |
|
|
|
Earnings per share |
|
|
Basic |
|
|
Diluted |
|
|
Total sales amounted to a record level of
The Q1-2024 gross operating margin increased by 16.7% and amounted to
General and administrative expenses amounted to
As budgeted, other projects represent the expenses incurred by the Corporation to duplicate its unique business model in other jurisdictions.
The Q1-2024 net income was also affected by the recording of a
Reconciliation of non-IFRS measures |
||
(in $'000) (unaudited) |
For the three-months periods ended |
|
|
2024 |
2023 |
Reconciliation of net income and comprehensive income to EBITDA |
|
|
Net income and comprehensive income |
4,781 |
4,467 |
Income taxes expense (current and deferred) |
2,561 |
1,788 |
Financial income net of expenses |
(171) |
(153) |
Depreciation |
885 |
784 |
EBITDA |
8,056 |
6,886 |
CONSOLIDATED CASH FLOW FROM OPERATING, INVESTING AND FINANCING ACTIVITIES AND WORKING CAPITAL AND LIQUIDITY
Operating activities
For the three-month period ended
Investing activities
During the three-month period ended
Financing activities
In Q1-2024, monthly dividends totaling CA$0.035 per share were disbursed for a total consideration of
In Q1-2024, 926,800 common shares were repurchased under the Corporation normal course issuer bid share buyback program for a total cash consideration of
In Q1-2024, the Corporation issued 62,925 common shares following the exercise of purchase options for a consideration of
Working capital and liquidity
As at
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at
(in $'000) (unaudited) |
|
As at
|
As at
|
|
|
2024 |
2023 |
Cash |
|
27,675 |
22,481 |
Accounts receivable |
|
12,013 |
13,328 |
Inventories |
|
27,321 |
31,925 |
Prepaid |
|
841 |
277 |
Property, plant and equipment |
|
24,496 |
24,590 |
Right-of-use assets |
|
591 |
613 |
Exploration and evaluation assets |
|
18,570 |
18,566 |
Total assets |
|
111,507 |
111,780 |
|
|
|
|
Trade and other payables |
|
13,530 |
15,357 |
Current tax liabilities |
|
2,230 |
1,799 |
Asset retirement obligations |
|
3,746 |
3,724 |
Deferred tax liabilities |
|
661 |
677 |
Lease liabilities |
|
602 |
636 |
Shareholders' equity |
|
90,738 |
89,587 |
Total liabilities and equity |
|
111,507 |
111,780 |
OUTLOOK 2024
Ore processing
For 2024, the Corporation forecasted sales (1) ranging between
(1) |
Using a market gold price ranging between |
Capex
ABOUT
The corporation intends to expand its processing operations in other jurisdictions as well.
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
Shares Outstanding: 36,568,356
Website: http://www.dynacor.com
Twitter: http://twitter.com/DynacorGold
View source version on businesswire.com: https://www.businesswire.com/news/home/20240516127576/en/
For more information, please contact:
Director, Shareholder Relations
T: 514-393-9000 #230
E: investors@dynacor.com
Source: