Dynacor Gold Mines Inc. (dynacor gold)
Symbol: DNG
Toronto Stock Exchange
MONTREAL, Nov. 15 /CNW Telbec/ - Dynacor Gold Mines Inc. (TSX: DNG) is pleased to announce that for the third quarter ended September 30, 2007, the Company reports gross earnings of $443,280, and net earnings of $185,953, generated from gold sales.
Respectively, for the nine-month period ended September 30, 2007, Dynacor reports gross earnings of $614,598, and net earnings of $143,190.
Dynacor Gold Mines acquired from Malaga inc., through an agreement dated May 1, 2007, all the issued and outstanding shares of Minera Dynacor del Peru S.A.C, a wholly-owned Peruvian subsidiary of Malaga inc., as well as the gold assets of Malaga inc. held by the Peruvian subsidiary. Therefore, Dynacor did not have any activities prior to May 1, 2007, thus having an impact on the results for the nine-month period.
Dynacor Gold reports its financial results for the three-month period ended September 30, 2007 (all currency figures appear in Canadian dollars unless otherwise specified). The consolidated financial statements along with management's discussion and analysis are available for viewing on the Dynacor Gold Mines website at www.dynacor.com, and the documents have been filed with SEDAR at www.sedar.com.
SUMMARY OF FINANCIAL RESULTS FOR THE THIRD QUARTER 2007
- Dynacor Gold generated a positive cash flow of $355,484 from operating activities in Q3 2007, whereas it utilized $467,107 for the nine-month period ended September 30, 2007. The utilization is due to the variance in non-cash working capital items. - Revenue generated from the sale of gold is $5,237,366 for the three-month period ended September 30, 2007. Revenue generated from the sale of gold for the nine-month period ended September 30, 2007 is $7,763,517. - Gold sales deriving from custom milling, at the Acari plant, reached a record level of 7,478 ounces for the three-month period (its subsidiary produced 3,200 ounces in Q3 2006). Sales were 11,050 ounces for the nine-month period ended September 30, 2007 (five months of activities are included since the acquisition of Minera Dynacor del Peru S.A.C). - The average sale price was US$658 per ounce for the three-month period, and US$656 per ounce for the nine-month period. Cost of sales per ounce of gold was US$603 for the three-month period, and US$605 for the nine-month period. The gross margin deriving from gold production for Q3 2007 was $443,280 for the three-month period, and $614,598 for the nine-month period. The increase of the margin is due to the increase of the volume, combined with the increase in the selling price. These increases were offset by the increase of the average cost of sale. - Working capital at September 30, 2007 was $713,114. Also, Dynacor Gold completed a $4,000,000 private financing on October 26, 2007. On October 24, 2007, Dynacor Gold raised $4,000,000 pursuant to the issuance of 10,000,000 common shares and 5,000,000 warrants.
UPDATE ON ACARI
Further to the increase in the price of copper, production of this ore is constantly increasing in the area. Dynacor has begun the construction of a second custom ore processing plant at Acari. This new plant, equipped with flotation units, will process copper, gold, and silver ores, which are abundant in the area. With this second plant, Dynacor should substantially increase its profits in 2008. Moreover, an agreement was signed with a Swiss company for the sale of the entire production of the concentrate produced at this new plant.
Acari Property - clarification
Over the course of the past several years, both exploration and developmental work have been undertaken on the Acari property, in order to define the property's eventual mineral reserves and resources. As well, in 2004, a pre-feasibility study was announced and expected to begin. Unfortunately with the turn of events within the market, the drastic decrease in the price of gold, and as a result, difficulty in undergoing financing, all of the mentioned efforts were brought to a stop. As a result, the previous announced resources must be considered historical and not compliant with NI 43-101. Though these estimates were suggested as NI 43-101 compliant, there were not and should have been used by the company for internal purposes. A qualified person has not done sufficient work to classify these internal estimates as current mineral resources, and therefore are not NI 43-101 compliant and should not be relied upon.
The Company is confident although that these estimates are a good indicator of future results that will be encountered.
COMPANY PROFILE
Dynacor Gold Mines Inc. is a gold exploration and mining company, that has been active in Peru since 1996. The Company's assets include the Acari, Casaden and Tumipampa exploration properties. Moreover, Dynacor Gold owns 100% of the Acari Mill from which it produces gold through custom milling.
Dynacor Gold's strength and advantage comes with the experience and knowledge the Company has developed being involved in Peru for over 11 years. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.