Dynacor Group Inc · TSX:DNG
Dynacor — Investor Presentation (January 2018)
18 slides from Dynacor's investor presentation, January 2018
Slide 1: January 2018 Investor Presentation
January 2018 Investor Presentation
Slide 2: A Gold Cash Flow Business Model
A Gold Cash Flow Business Model A lower risk $0.33 gold producer cash flow $13M+ CF per share annualized annualized A Debt-Free Cash Generator Paid off US$ 6.3 26 consecutive million of debt quarters of profit in last 5 months *CF (Cash Flow) based on Q3-2017 cash flow from operating activities befo
Slide 3: Capital Market Summary
Capital Market Summary Market Summary Stock Price (Year High-Low) $1.50 - $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 Capitali
Slide 4: Shareholder Return 2008-2018
Shareholder Return 2008-2018 Q3-2018 Implied Share Price DNG-TSX stock price See Slide #9 S/P TSX Global Gold Index 32% annualized return since 2200% • Continues to profit through the 2008 2000% cycles of the gold market 1800% 1600% 1558% 1400% • Built to survive and prosper with or 1200% 1000% witho
Slide 5: The Cash Flow Proven Dynacor Model
The Cash Flow Proven Dynacor Model Weigh, assay and 3 Pay miners after 2 screen ore 24 hours from deliveries for delivery and gold content process ore at our new through mill modernized plant 4 After 10-14 Receive ore days of processing 1 shipments from 5 more than 400 Receive payment government for
Slide 6: Record High Gold Production
Record High Gold Production Monthly gold production ounces (Jan-Dec 2017) 8,910 9,000 79,897 ounces 7,905 +71% 8,000 produced in 2017 7,192 7,253 6,895 7,042 7,000 6,733 6,287 6,206 24,068 ounces produced 6,000 in Q4-2017, an 5,208 5,181 5,087 annualized basis of 5,000 nearly 100,000 ounces 4,000 Ja
Slide 7: Ore Supply and Deliveries Growing
Ore Supply and Deliveries Growing Average Monthly Ore Processing Rate (TPD) in 2017 310 300 2018 goal ramp up to 285 +62% 360 TPD 265 270 265 260 (tonnes per day) 245 235 220 215 210 200 190 185 185 185 180 160 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *TPD is rounded to the nearest five (5) u
Slide 8: Rising Cash Flow & Compelling Value
Rising Cash Flow & Compelling Value Cash Flow Per Ounce $CAD Q4 Q1 Q2 Q3 $CAD 165 2016 2017 2017 2017 CF From 140 1,067 2,326 1,917 3,268 Operations 115 CF Per 159 0.03 0.06 0.05 0.083 90 136 Share 65 105 CF 51 11 11 9 9 Multiple 40 Currently Trading With A Multiple of 8.9 Times Cash Flow dynacor.co
Slide 9: Annualizing CF On Last Quarter Report
Annualizing CF On Last Quarter Report Last 2 Q3 2018 Assumes CAD$ Q3 2018 Implied (Millions) Q3 2017 (TTM) Yrs Price to CF Share 10-13 Multiple Range Price times Cash Flow $0.33 From 3.3 13.0 $3.30 cash flow Operations 10-13 to Cash Flow $4.16 per share Per Share 0.08 0.33 (TTM) Gross Margin % 13% 1
Slide 10: Strong Strategic Partner With Swiss Co
Strong Strategic Partner With Swiss Co PX Precinox (www.pxgroup.com) • 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 dynacor.c
Slide 11: PX Impact Equals Ethical Gold
Circulating New PX Impact Gold Environmental, social and ethical Guarantees complete traceability practices that respect human rights are an across the gold ore supply chain coming integral part of the PX Impact Gold program from government registered miners in Peru An investment PX Impact 100% of t
Slide 12: Strategic Plan
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
Slide 13: Our Exploration Asset, Tumipampa
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 dynacor.com DNG – TSX | DNGDF - OTC (Q) 13
Slide 14: Concession Map
Concession Map BEER CREEK GOLDEN IDEAL GOLD MINING SUPER STRONG FRESNILLO PERU PROYECTO TUMIPAMPA MINERA DEL NORTE SA CONCESSION TAPAIRIHUAJA TRIVEÑO (VETADORADA)SOUTHERNPERU BARRICK DISEMINADO TUMIPAMPA MAP FRESNILLO PERU V 2014 TUMIPAMPA SOUTHERN TUMIPAMPA TUMIPAMPA X 2014 BARRICK IV 2014 VB 2014
Slide 15: Geological Map Of Disseminated Zone
Geological Map Of Disseminated Zone Caliza Km-Fe Laguna patacocha N Cuarzomonzonita 19.49 g/t Au 18.18 g/t Au 3.57 g/t Au 11.30 g/t Au 8.21 g/t Au Veta Cuyana7.63 g/t Au 10.94 g/t Au 3.17 g/t Au 5.06 g/t Au 16.79 g/t Au 4.56 g/t Au Mármol Km-Fe 28.60 g/t Manto Au Lucha ANOMALIA 5 ANOMALIA 2 31.16 g/
Slide 16: Investment In Dynacor
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 n
Slide 17: Forward Looking Statements
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”, “c
Slide 18: Canadian | TSX: DNG American | OTC (Q): DNGDF dynacor.com | investors@dynacor.com
Canadian | TSX: DNG American | OTC (Q): DNGDF dynacor.com | investors@dynacor.com Director, Investor Relations Dale Nejmeldeen (604) 492 0099