Dynacor Gold Mines Inc. (dynacor) Symbol: DNG Toronto Stock Exchange (TSX)
MONTREAL, Nov. 17 /CNW Telbec/ - Dynacor Gold Mines Inc. (Dynacor TSX:DNG) is pleased to announce record net earnings exceeding $297,000 as well as its financial results for the 3rd quarter of 2008. The consolidated financial statements (all currency figures appear in Canadian dollars unless otherwise specified) along with management's discussion and analysis are available on Dynacor's website at www.dynacorgold.com and the documents have been filed with SEDAR at www.sedar.com.
Highlights for the three-month and the nine-month periods ended September 30, 2008
- Net earnings of $297,528 for the three-month period ended September 30
and of $559,429 for the nine-month period;
- Gold sales increased by 27% to reach 9,508 ounces (as compared to 7,478
ounces in Q3 2007);
- Sales of $8,379,445 for the three-month period ended September 30,
2008, for a total of $23,359,567 since the beginning of the year.
- Working capital of $3,889,346 as of September 30, 2008 ($713,114 as of
September 30, 2007)
Sales
Sales are summarized below:
For the For the For the For the
three-month three-month nine-month period from
period ended period ended period ended May 1 to
September 30 September 30 September 30 September 30
2008 2007 2008 2007
Gold sales
(ounces) 9,508 7,428 25,484 11,050
------------ ------------ ------------ ------------
$ $ $ $
Sales 8,379,445 5,237,366 23,359,567 7,763,517
Cost of sales 7,383,706 4,774,227 20,349,294 7,089,693
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Gross earnings
before amortization 995,739 463,139 3,010,273 673,824
Amortization 75,135 67,226 254,730 67,226
------------ ------------ ------------ ------------
Gross earnings 920,604 395,913 2,755,543 606,598
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Total gold production came from custom milling of gold ore purchased from
many local producers.
For the For the For the For the
three-month three-month nine-month period from
period ended period ended period ended May 1 to
September 30 September 30 September 30 September 30
2008 2007 2008 2007
$CA/ounce
Average selling price 868 690 899 677
Average cash cost 751 633 776 629
------------ ------------ ------------ ------------
Margin before
amortization 117 57 123 48
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Operating Activities for the three-month period ended September 30, 2008
The Company recorded net earnings of $297,528 in comparison with net earnings of $185,953 for the same period in 2007. Gross earnings before amortization were $995,739, compared to $463,139 for Q3 2007. General and administrative expenses were $364,201, which represents a decrease in comparison with Q2 2008 ($477,060).
The income tax burden is composed of the taxes of the Peruvian subsidiary, at a rate of 30%. The effective tax rate is different from statutory rate because the Canadian parent company has recorded a loss and cannot record this tax benefit.
Gold Production from Custom Milling
In 2007, the Company had established a sales goal of 25,000 ounces for 2008. During the third quarter, gold sales were 9,508 ounces adding up to a total of 25,484 ounces for the first nine months of 2008. The Company has therefore, during the third quarter, already surpassed its sales goal for 2008.
Exploration Outlook
Tumipampa
In late 2007, the Company began a 4,000 meter drilling campaign and a surface exploration program. A total of 21 drill holes have been completed. The results compiled so far are very encouraging since they have revealed the continuity and significance of the target structures.
A new Skarn structure has been identified and sampled. Surface samples of the latter structure are very encouraging. The first drill hole in this new Skarn structure shows a gold and copper mineralization, notably gold grades of 15.3g/t over 4.9 meters (real thickness). The Company plans to further drill this Skarn structure. However, before undertaking this new drilling campaign, the Company wishes to carry out a detailed geochemical and geophysical survey as well as to finish its systematic surface sampling program of the property. With all of this data the Company will be able to estimate the size and importance of the Skarn and better the positioning of its future drilling targets. Sampling results and the drilling data obtained so far have been published (see Press Releases dated February 12, July 15 and September 4, 2008).
Mr Alain-Jean Beauregard, a geologist from Geologica Groupe Conseil, acts as the qualified person ("QP") for the Company regarding the sampling procedure, the technical information, and the supervision of fieldwork. As he frequently visits the properties, he can therefore assess, in compliance with 43-101 regulations, of the precision and accuracy of the results and of the mining and geological knowledge relating to the Tumipampa property.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company, that has been active in Peru through its subsidiaries since 1996. The Company's assets include the Acari, Casaden and Tumipampa exploration properties. The Acari mill produces gold by custom milling. Dynacor's strength and competitive advantage comes with the experience and knowledge the Company has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.