January 2018 Investor Presentation

Transcription

1 January 2018 Investor Presentation

2 A Gold Cash Flow Business Model A lower risk gold producer $13M+ CF annualized Paid off US$ 6.3 million of debt in last 5 months A Debt-Free Cash Generator $0.33 cash flow per share annualized 26 consecutive quarters of profit *CF (Cash Flow) based on Q cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25 dynacor.com DNG TSX DNGDF - OTC (Q) 2

3 dynacor.com DNG TSX DNGDF - OTC (Q) 3 Capital Market Summary Market Summary Stock Price (Year High-Low) $ $2.75 Ticker Symbol DNG - TSX Shares Outstanding (Basic) 39M Warrants Nil Average Daily Volume (Shares) 90,513 Monthly Dividend TBD Dividend Yield TBD Director & Senior Management Ownership 4% Capital Structure Market Capitalization 74M Enterprise Value (As of Sept 30, 2017) 82M Debt Nil

4 dynacor.com DNG TSX DNGDF - OTC (Q) 4 Shareholder Return DNG-TSX stock price S/P TSX Global Gold Index Q Implied Share Price See Slide #9 Continues to profit through the cycles of the gold market Built to survive and prosper with or without a gold bull environment 32% annualized return since % 2000% 1800% 1600% 1558% -38% 1400% 1200% 1000% 800% 600% 400% 200% 0% -200%

5 dynacor.com DNG TSX DNGDF - OTC (Q) 5 The Cash Flow Proven Dynacor Model 2 Weigh, assay and screen ore deliveries for gold content at our new modernized plant 3 Pay miners after 24 hours from delivery and process ore through mill 1 Receive ore shipments from more than 400 government registered Peruvian artisanal gold miners Receive payment for gold dore bars from strategic partner, PX Precinox 5 After days of processing 4

6 Record High Gold Production 9,000 8,000 7,000 6,000 5,000 4,000 5,208 Monthly gold production ounces (Jan-Dec 2017) 79,897 ounces produced in ,733 5,181 5,087 6,206 6,895 6,287 7,042 7,192 7,905 7,253 8,910 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec +71% 24,068 ounces produced in Q4-2017, an annualized basis of nearly 100,000 ounces dynacor.com DNG TSX DNGDF - OTC (Q) 6

7 Ore Supply and Deliveries Growing Average Monthly Ore Processing Rate (TPD) in goal ramp up to 360 TPD (tonnes per day) % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *TPD is rounded to the nearest five (5) units dynacor.com DNG TSX DNGDF - OTC (Q) 7

8 Rising Cash Flow & Compelling Value Cash Flow Per Ounce $CAD $CAD CF From Operations CF Per Share CF Multiple Q Q Q Q ,067 2,326 1,917 3, Currently Trading With A Multiple of 8.9 Times Cash Flow dynacor.com DNG TSX DNGDF - OTC (Q) 8

9 Annualizing CF On Last Quarter Report CAD$ (Millions) Cash Flow From Operations Cash Flow Per Share dynacor.com Q Q (TTM) % Last 2 Yrs Price to CF Multiple Range DNG TSX DNGDF - OTC (Q) Q Implied Share Price $3.30 to $4.16 Assumes times $0.33 cash flow per share (TTM) Gross Margin % 13% 12% 14% +40% Q4-16 Q1-17 Q2-17 Q3-17 *CF (Cash Flow) based on Q cash flow from operating activities before change in working capital annualized; US to CAD exchange

10 dynacor.com DNG TSX DNGDF - OTC (Q) 10 Strong Strategic Partner With Swiss Co PX Precinox ( Is one of 10 companies under the PX Group Experts in precious metal refining Mastered the process of high quality refining to finishing A leading Swiss producer of gold bars Partner of the PX Impact Gold Program

11 dynacor.com DNG TSX DNGDF - OTC (Q) 11 Circulating New PX Impact Gold Environmental, social and ethical practices that respect human rights are an integral part of the PX Impact Gold program Guarantees complete traceability across the gold ore supply chain coming from government registered miners in Peru An investment premium flows back to our miner s communities PX Impact Equals Ethical Gold 100% of the premium is paid into the fund and reinvested into Dynacor s mining communities A lasting & positive contribution to the economic, social and environmental development of our mining communities The fund finances projects in health, education, economic dev & the environment of the mining communities

12 Strategic Plan Short Term Strategy > 3 12 Months Self fund throughput growth to 360 TPD (CAPEX <$1M) Propel Dynacor to largest gold ore processer in Peru (currently #2) Define new dividend policy Execute drill plan & advance flagship gold project, Tumipampa Medium Term Strategy > 2 5 Years Expand throughput growth to 600+ TPD Bring to fruition low risk development plan on gold project, Tumipampa Establish world renown brand as socially accountable high quality gold Target yield contraction through responsible shareholder dilution plan and per share growth (a sustainable/steady dividend history) dynacor.com DNG TSX DNGDF - OTC (Q) 12

13 Our Exploration Asset, Tumipampa 500 km southeast of Lima 9,756 ha Surface results pending Drilling planned for 2018 (drill results) 21,610 meters of drill results 2,881 meters of underground workings dynacor.com DNG TSX DNGDF - OTC (Q) 13

14 Concession Map BEER CREEK GOLDEN IDEAL GOLD MINING SUPER STRONG FRESNILLO PERU TAPAIRIHUAJA (VETADORADA)SOUTHERNPERU BARRICK FRESNILLO PERU TRIVEÑO PROYECTO DISEMINADO MINERA DEL NORTE SA V 2014 CONCESSION MAP SOUTHERN BARRICK ANGLOAMERICAN ORTEGA X 2014 III 2014 IV 2014 XI 2014 VB 2014 SOUTHERN PERU MERIDIAN (HORIZONTE) IAM GOLD CHANCADORA CENTAURO ORTEGA ORTEGA ORTEGA ORTEGA MERIDIAN (HORIZONTE) MERIDIAN (HORIZONTE) NICOLE 11 IX 2014 BARRICK VI 2014 XII 2014 VII 2014 VIII 2014 CONCESIONES Aprox. Has -Área neta Total 22 Concesiones CONCESIONES PERSONAS NATURALES Y/O PPM ZONAS LIBRES PETITORIOS EN DISPUTA DESDE EL km Escala Gráfica dynacor.com DNG TSX DNGDF - OTC (Q) 14

15 Geological Map Of Disseminated Zone Laguna patacocha Caliza Km-Fe N Mármol Km-Fe Cuarzomonzonita g/t Au 8.21 g/t Au Veta Cuyana7.63 g/t Au g/t Au g/t Au g/t Manto Au Lucha g/t Au 3.57 g/t Au 3.17 g/t Au ANOMALIA g/t Au 5.06 g/t Au 4.56 g/t Au ANOMALIA g/t Au Veta sondoro g/t Au ANOMALIA g/t Au 6.15 g/t Au ANOMALIA 3 ANOMALIA g/t Au 3.35 g/t Au 1.26 %/Cu Cuerpo Sumac g/t Au Bx. Adriana 9.01 g/t Au 3.66 g/t Au ANOMALIA 4 SECCION L LEYENDA CALIZA (Ki-Fe) BOFEDAL CUARZO MONZONITA CUARZO DIORITA MARMOL (Ki- Fe) CUARCITA EXOSKARN CUATERNARIO LAGUNAS ANOMALIA CARGABILIDAD FALLA VETAS dynacor.com 0 1 KM DNG TSX DNGDF - OTC (Q) Au (gr/tn) Sym >=Minimum <Maximum 0.00 < >=

16 Investment In Dynacor Near Term Catalysts Recent debt free status removes interest from 2018 financials Lower costs and higher earnings with greater gold production 2018 quarterly financials comparing to 2017 start up year Annualized CF per share of CAD $0.33 (P/CF range 10-13X) Defining new dividend policy (increases ROI) Renewing Tumipampa drill campaign (drill results) dynacor.com DNG TSX DNGDF - OTC (Q) 16

17 Forward Looking Statements This presentation contains certain forward-looking statements regarding operational information, future exploration and development plans and anticipated future production. Words such as, potential, building inferred, if, will, expect, forecast, estimate, consider, may, possible and similar expressions have been used to identify these forward-looking statements. These statements are management s current beliefs and are based on information currently available to management. Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the forwardlooking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place under reliance forward-looking statements. Forward-looking statements and other information contained herein concerning the metals and mining industry and Dynacor s general expectations concerning the industry are based on estimates prepared by management using data from publicly available industry sources as well as from private sources, industry analysis and on assumptions based on data and knowledge of the this industry which the Company believes to be reasonable. However, this data is inherently imprecise. While Dynacor is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met. dynacor.com DNG TSX DNGDF - OTC (Q) 17

18 Canadian TSX: DNG American OTC (Q): DNGDF dynacor.com Director, Investor Relations Dale Nejmeldeen (604)