• Dynacor (DNG) released its unaudited interim financial statements for the third quarter ended September 30, 2022
  • Sales amounted to $46.0 million in Q3 2022, compared to $61.9 million in Q3 2021
  • The company recorded net income of $0.8 million in Q3 2022 ($0.02 or $0.03 per share) compared to $3.5 million ($0.09 or $0.12 per share) in Q3 2021
  • Dynacor engages in gold production through the processing of ore purchased from the ASM (artisanal and small-scale mining) industry
  • Dynacor Group Inc. (DNG) is down 2.53 per cent trading at $2.70 per share

Dynacor (DNG) released its unaudited interim financial statements for Q3 2022.

Operational highlights

  • The plant processed a volume of 37,410 tonnes of ore (407 tpd average) compared to 36,281 tonnes in Q3-2021 (394 tpd) for a 3.1 per cent increase
  • Gold equivalent production amounted to 27,252 AuEq ounces compared to 31,889 AuEq ounces in Q3 2021, a 14.5 per cent decrease
  • At the end of Q3, ore inventories amounted to over 9,000 tons, representing over 20 days of production

Financial highlights

  • Cash on hand was $31.0 million at the end of Q3 2022 compared to $27.1 million at year end 2021
  • Sales amounted to $46.0 million in Q3 2022, compared to $61.9 million in Q3 2021. This was due to lower volume produced and sold and gold’s lower average market price
  • Gross operating margin of $4.5 million (9.8 per cent of sales) in Q3 2022 versus $7.9 million (12.7 per cent of sales) in Q3 2021
  • Operating income of $3.2 million in Q3 2022 compared to $6.6 million in Q3 2021 due to a decrease in gross margin
  • The company recorded a net income of $0.8 million in Q3 2022 ($0.02 or $0.03 per share) compared to $3.5 million ($0.09 or $0.12 per share) in Q3 2021
  • Cash gross operating margin of $197 per AuEq ounce sold, compared to $242 in Q3 2021
  • EBITDA was $3.8 million, compared to $7.2 million in Q3 2021
  • Cash flows from operating activities before change in working capital items of $2.0 million ($0.05 per share) compared to $4.4 million ($0.11 per share) in Q3 2021

Return to shareholders

  • 213,655 common shares repurchased for $0.5 million in Q3 2022, compared to 59,914 common shares for $0.1 million in Q3 2021
  • Continuation of monthly dividend payments, which had been increased by 25 per cent at the start of 2022 to $0.10 per share per year. It represented a 3.2 per cent dividend yield based on the beginning of 2022’s share price or 3.9 per cent based on the share price at the end of Q3 2022

Cumulative nine-month sales increased by $4.4 million compared to last year. Higher average prices and quantities sold contributed respectively to a $2.4 and $2.0 million increase.

Dynacor engages in gold production through the processing of ore purchased from the ASM (artisanal and small-scale mining) industry.

Dynacor Group Inc. (DNG) is down 2.53 per cent trading at $2.70 per share at 12:39 pm ET.


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