DYNACOR GOLD MINES INC. 5 YEAR PERFORMANCE REVIEW Quarter Ended September 30, 2017

Transcription

1 DYNACOR GOLD MINES INC. YEAR PERFORMANCE REVIEW uarter Ended September 3, 2

2 FIVE YEAR PERFORMANCE REVIEW The following charts look at a five year review of Dynacor s calendar year quarterly performance in many different valuation metrics. It includes such areas as fundamental financial valuations and stock price performance. FORWARD LOOKING INFORMATION Certain statements in the forgoing 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 Dynacor, 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 review.

3 Gold Price ($US/oz) 1,8 1,18 1,629 1,6 1,4 1,4 1,32 1,284 1,294 1,288 1,33 1,282 1,196 1,2 1,219 1,29 1,192 1,26 1,18 1,4 1,219 1,2 1,28 1,16 GOLD PRICE PER OUNCE ($US) The chart above shows the average quarterly $US market price of gold over a five-year period , 1,64

4 Canadian/US Exchange Rate CANADIAN/US EXCHANGE RATE Dynacor reports its financial results in US dollars. The operational labour costs are in local Peruvian sol, ore purchases are discounted to the international price of gold and in US dollars while the majority of corporate expenses are in Canadian dollars Canadian/US Exchange Rate

5 22, 1,6, 1,4,8 18,63 2,2 19,41 19,221,893,68 19,2 19,923 19,844,8,94,6,8,2 19,1 21,, 18,18 2,21, 1,2 11,, 4 1, GOLD PRODUCTION OUNCES During the third quarter ended September 3, 2, Dynacor s gold production increased to a total of 2,21 ounces of gold. The Corporation expects that gold production will continue to trend higher over the next four quarters. Gold Production (oz) Gold Production (oz) 1,8 Gold Price Per Ounce ($US/oz)

6 Gold Price Per Ounce ($US/oz) 2 1,18 1, ,4 1, ,2 1,28 1, , 1,4 1,26 1,219 1,18 1,2 1,192 1,196 1,219 1,29 1,294 1,288 1,284 1,33 1,32 1,4 AVERAGE TPD (TONNES PER DAY) During the third quarter ended September 3, 2, the Corporation averaged a daily ore throughput rate of 233 TPD (tonnes per day) and on route to fulfilling its 3 TPD mill capacity. 6 Gold Production (oz) 1,629 1,6 1,8 Average TPD (tonnes per day)

7 Gross Sales ($US thousands) 29,341 31,43 33,342 3, 2,8 28,1 26,81 24,8 1,4 2,3 24,18 2,1 18,48 2,22 18,41 22,34 21,429 2,42 21,21 26,96 24,2 2, 21,4,34 1,2 1, GROSS SALES ($US THOUSANDS) During the third quarter ended September 3, 2, Dynacor reported sales of $US 26.8 million. 4 1, Gross Sales ($US thousands) 1,6 4, 1,8

8 1,64 1,629 1,6 % 1,4 1,282 6% % 1 4 % % 1% % % % 1,2 1,28 1,16 % 2 1 % % 19% % 19% 19% % 21% 21% 1 4 % % % 19% 1, 1,4 1,26 1,219 1,18 1,2 1,192 1,196 1,219 1,29 1,294 1,288 1,284 11% 1,33 1,32 1,4 GROSS OPERATING MARGIN (%) During the third quarter ended September 3, 2, Dynacor generated a gross operating margin of.8%, slightly lower compared to same period 2, (.2%) due to lower sales and an increase in operating per unit cost. 8 % Gross Operating Margin (%) 22% 1,18 1,8 Gross Operating Margin (%)

9 Net Income ($US thousands),1 4, 4,668 4,6 3, 3,868 3,8 1,4 3,31 3, 2,982 2,6 3,1 2, ,239 GROSS OPERATING MARGIN & NET INCOME ($US THOUSANDS) During the third quarter ended September 3, 2, net income was slightly down from a year ago due to reduced gross operating margins together with an increase in depreciation expenses and interest charges. 9 3, 1, 2 1,31 1, , , 1, ,824 2,1 2,1 2,18 3, 2,98 2,84 3, 2,14 1,2 3, 2,2 1,6, Gross Op Margin ($US thsds) 6, 6,,483,642,89 1,8 Gross Operating Margin ($US thousands)

10 Price to Cash Flow Multiple Cash Flow Per Ounce ($US) Price to Cash Flow Multiple CASH FLOW PER OUNCE ($US) Cash flow in the third quarter ended September 3, 2 rose to $ per ounce. Cash flow generated during the quarter was $. per share, which is equivalent to an annualized rate of $.28 per share. 1

11 Earnings Per Share ($US) Price To Earnings Multiple 24 EARNINGS PER SHARE & PRICE TO EARNINGS MULTIPLE ($US) In the third quarter ended September 3, 2, the Corporation earned US$.3 per basic share with an average PE (price to earnings multiple) of 23 times. 11 Earnings Per Share ($US) Price To Earnings Multiple

12 Enterprise Value ($US millions) EBITDA ($US millions) Enterprise Value/EBITDA ratio 9 ENTERPRISE VALUE/EBITDA RATIO In the third quarter ended September 3, 2, Dynacor s enterprise value (EV) (market cap + total liabilities - cash - gold bars) is $US 66 million. Enterprise Value EV/EBITDA Ratio ($US)

13 Net Income ($US thousands) 3, , 1, ,66 1, ,1 1,824 1,361 1, , 2, , ,182 2,84 2,18 2, Average Share Price ($CAN) 3. NET INCOME & AVERAGE SHARE PRICE Dynacor s average share price during the third quarter ended September 3, 2 was CAD$ 2.2 per share. As of the time of this writing (December, 2) Dynacor s share price is CAD$ 1.6 per share. Net Income ($US thousands) Average Share Price ($CAN)

14 Dynacor Gold Mines Inc. is a gold production corporation headquartered in Montreal, Canada. The corporation is engaged in production through its government approved ore processing operations. At present, Dynacor produces and explores in Peru where its management team has decades of experience and expertise. In 2, Dynacor produced 3,46 ounces of gold, a 9% increase as compared with 2 (6,63 ounces in 2). Dynacor trades on the Toronto Stock Exchange (DNG) and the OTC in the United States under the symbol (DNGDF). The September 3, 2 financial statements and analysis are available on the corporation s website. The documents have been filed electronically with S E D A R.