Dynacor Gold Mines Inc. (dynacor)
Toronto Stock Exchange (TSX)
MONTREAL, Nov. 16 /CNW Telbec/ - Dynacor Gold Mines Inc. (TSX:DNG) is pleased to report its financial results for the three-month period ended September 30, 2009. The financial statements (all currency figures appear in Canadian dollars unless otherwise specified) along with the management's discussion and analysis are available on the Company's website www.dynacorgold.com; the documents have been filed electronically with SEDAR at www.sedar.com.
Dynacor continued its custom milling operations despite the reduction in the procurement of gold ore. This reduction was caused by the sales tax withheld by the Peruvian tax authorities which has in turn resulted in a reduction of liquidity. The Company operated at a production level inferior to its capacity throughout the quarter. Dynacor has recorded a provision of $1.0M and applied it to the sales tax receivable and income taxes payable in order to cover any future claims. This explains, in large part, the net loss of $1.5M for the quarter. The Company expects to resolve the sales tax withholding issue by the end of the year. "This will allow the Company to accelerate the development and exploration work at the Tumipampa property and increase the procurement of gold ore for transformation", stated Mr. Jean Martineau, President and CEO.
Q3 2009 HIGHLIGHTS
- Net Loss of $1.5M.
- Gold sales of 3,321 ounces (9,508 ounces in 2008), a decrease of 65%
compared to the corresponding period of 2008.
- Gross margin per ounce, before amortization, of $101 compared to
$103 for the corresponding period of 2008.
- Cash, cash equivalents and short term investments of $1.1M.
- Cash flow used for operating activities in the amount of $0.2M.
- Net loss per share of $0.05 for the quarter; however, earnings per
share of $0.03 for the twelve-month period ended September 30, 2009.
Dynacor sold more than 18,000 ounces of gold for the nine month period ended September 30, 2009, furthermore the Company estimates that it will process between 4,000 and 6,000 ounces of gold in the next quarter. The Company plans to gradually increase its custom milling production to achieve full capacity in 2010.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company 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 Malaga, 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.
SOURCE DYNACOR GOLD MINES INC.
For further information: For further information: Jean Martineau, President & CEO, Dynacor Gold Mines Inc., (514) 288-3224; Dale Nejmeldeen, Investor Relations, Dynacor Gold Mines Inc., (778) 574-2806, firstname.lastname@example.org