Dynacor Group Inc · TSX:DNG
Dynacor — Investor Presentation (October 2020)
22 slides from Dynacor's investor presentation, October 2020
Slide 1: Corporate Presentation October 2020
Corporate Presentation October 2020
Slide 2: 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”, “possibl
Slide 3: A Proven Leader in Corporate Social Responsibility
A Proven Leader in Corporate Social Responsibility • Funding, participating and developing the ASM’s (artisanal small-scale mining) education, health and social services through our PX IMPACT® certified clean gold program • The impact of Dynacor’s activities and the well-being of artisanal mining co
Slide 4: Dynacor's PX IMPACT Clean Gold Program
Dynacor’s PX IMPACT® Clean Gold Program • Environmental, social and ethical practices that respect human rights are an integral part of the PX IMPACT® clean gold program • An investment premium paid by PX Precinox customers on the PX IMPACT® clean gold program • A lasting & positive contribution to
Slide 5: In 2019, Dynacor funded via its PX IMPACT program S/. 572,000
In 2019, Dynacor funded via its PX IMPACT® program S/. 572,000 Peru, Nuevos Soles USD 171,000 • Miguel Grau school, Alto Molino, Rio Grande district, Condesuyos province, Arequipa region: construction materials for the development of new classrooms; • Jardin de Amor school, La Aguadita, Chala distri
Slide 6: Fine Luxury Watchmakers Pay A Premium For Certified Clean Gold
Fine Luxury Watchmakers Pay A Premium For Certified Clean Gold from Dynacor’s PX IMPACT® • Dynacor’s PX IMPACT® buyers are willing to pay for the guarantee of our gold’s traceability and purity in the form of a purchase premium • This business to business approach in the gold supply chain is the fir
Slide 7: About Dynacor
dynacor.com About Dynacor • A dividend paying gold company • Environmentally and socially responsible gold sales through its PX IMPACT® gold program • Fine luxury watchmakers pay premiums for certified clean PX IMPACT® gold • Produces gold from the purchase and process of ore from the ASM (artisanal
Slide 8: Working towards 10th Consecutive Year of Profit
dynacor.com Working towards 10th Consecutive Year of Profit • Plans to leverage 22 plus years of expertise and expand business model globally • Strategic partnership with Swiss based refiner, PX Precinox | PX GROUP • Strong balance sheet with no debt and USD 20.6 million in cash reserves (as of June
Slide 9: Our Business Cycle of Success
dynacor.com Our Business Cycle of Success 7
Slide 10: Gold Pouring Operations in Peru since 1998
dynacor.com Gold Pouring Operations in Peru since 1998 2016 Ore-Processing Expansion Overview ❑ USD 16 million CAPEX ❑ New and modern 300 TPD (tonnes per day) plant opened in 2016 ❑ Designed for up to 600 TPD expansion ❑ CIP (carbon-in-pulp) circuit includes weighing, assaying, crushing and milling
Slide 11: EPS History (CAD)
dynacor.com EPS History (CAD) 0.22 0.26 0.19 0.16 0.17 0.10 0.12 0.12 0.13 2011 2012 2013 2014 2015 2016 2017 2018 2019 9
Slide 12: The Gold Average Selling Price Picture
dynacor.com The Gold Average Selling Price Picture $1,700 $1,600 $1,607 $1,500 $1,400 $1,392 $1,300 $1,262 $1,244 $1,249 $1,200 $1,157 $1,100 $1,000 2015 2016 2017 2018 2019 2020 Q1/Q2 USD Per oz Linear (USD Per oz) 10
Slide 13: Gross Operating Margin & Net Income Per Equivalent Gold Ounce Sold
dynacor.com Gross Operating Gros Operating Margin per oz Net Income per oz Margin & Net Income $350 Per Equivalent Gold Ounce Sold $300 284 Correlation To Gold 258 $250 Price (US/oz) 236 234 2011-2019 $200 US/oz 185 176 159 $150 123 115 $100 87 71 72 58 $50 47 45 $0 $1,000 $1,100 $1,200 $1,300 $1,40
Slide 14: Net Income (US$/oz)
dynacor.com Net Income (US/oz) $100 $1,393 $1,400 $80 Net Income/oz $1,200 Gold Price/oz $60 $71 $47 $45 $47 $58 $40 $1,000 2015 2016 2017 2018 2019 NOTE: Net income per ounce is a non-IFRS financial performance measure with no standard definition under IFRS. 12
Slide 15: Dividend & NCIB History – Cash Return to Shareholders
dynacor.com DIVIDEND & NCIB HISTORY – CASH RETURN TO SHAREHOLDERS DIVIDEND: The following dividends were declared by the Company: - • June 9, 2020 - CA$0.015 per qualifying common share resulting in a total dividend amounting to $426,922 (CA$581,809) paid on July 3, 2020. • March 4, 2020 - CA$0.015
Slide 16: Dividends
Dividends In 2019, Dynacor declared an increase in the quarterly dividend payment by 50% dynacor.com Soon approaching the Corporation’s eighth consecutive dividend payment The dividend policy is a key component to Dynacor’s strategy to return cash to shareholders. $0.017 $0.015 $0.013 $0.011 $0.015
Slide 17: TSX Listed Gold Producing Companies That Pay Dividends
dynacor.com TSX Listed Gold Producing Companies That Pay Dividends Based on $1.93 CA per share as of 2020-09-22 15 Reference: TSX.COM (YTD)
Slide 18: 2020-2021 Upshifting To International Status
2020-2021 Upshifting dynacor.com To International Status SENEGAL: Partnership with sovereign fund and mill manufacturer PERU: Main operations with approximately 80,000 ounces of gold production per year. Plans to expand 16
Slide 19: Senegal's ASM Industry Rapidly Gaining Ground
dynacor.com Senegal’s ASM Industry Rapidly Gaining Ground • Senegal, with a high-growth economy of 6%, is one of Africa’s most stable and gold-rich countries hosting upwards of 10,000 ASMs • Mining in Senegal at the artisanal level started in the Sabodala area in the 1960s, but it took place more ex
Slide 20: Other Assets (Exploration Properties)
dynacor.com Other Assets (Exploration Properties) 1) Tumipampa (South Central Peru) ❑ Advanced stage exploration property ❑ ASM mining team extracting ore for deliveries to our plant ❑ Awaiting drilling permit from Peruvian Ministry of Energy and Mines ▪ The first phase of twelve (12) holes: ➢ Total
Slide 21: Corporate Snapshot Q2-2020
Corporate dynacor.com Snapshot Market Summary Q2-2020 Stock Price (Q2-2020: VWAP) $1.68 CA | $1.24 US Ticker Symbol DNG – TSX Shares Outstanding (Basic) 39M Warrants Nil Quarterly Dividend 0.015 CA Dividend Yield 3% Insider Ownership (As of August 31, 2020) 8% Capital Structure Market Capitalization
Slide 22: Dynacor Gold Mines Inc.
DYNACOR Gold Mines Inc. Head Office 625 René-Lévesque Blvd West, Suite 1200 Montreal (Quebec) H3B 1R2 CANADA investors@dynacor.com 514.393.9000 #230