Dynacor has released its unaudited condensed interim consolidated financials and MD&A
Montreal-based Dynacor Gold Mines (TSX:DNG), a dividend-paying industrial gold ore processor, has released its unaudited condensed interim consolidated financials and MD&A for the quarter ended March 31, 2022. Gold sales for the quarter ended March 31, 2022 came in at US$50.1 million an increase of 22.5% over the US$40.9 reported for the quarter ended March 2021.
The company also reported record net income of US$5.1 million or $0.13 per share for the quarter, compared to net income of US$2.1 million or US$0.05 per share for the comparable quarter in 2021. Dynacor’s current trailing 12-month earnings per share increases to US$0.38 or C$0.47 and is on target with the company’s 2022 earnings guidance.
Several factors contributed to the record net income. In mid-2021, Dynacor completed the expansion of its Veta Dorada plant which is now running at its full 430 tpd production capacity, resulting in the tonnage processed increasing by 25.1%. This resulted in an increase in gold production, with 27,691 gold equivalent ounces reported in the current quarter compared to 21,975 gold equivalent ounces produced in the first quarter of 2021, an increase of 26.0%
Following a +10.1% gain over the Peruvian Sol in 2021, the US dollar subsequently lost 6.5% against the Peruvian Sol in the first quarter of 2022. This reversal favorably and significantly impacted the current and deferred tax expenses and accordingly the company's net income for the quarter.
The company is forecasting gold sales guidance for 2022 in the range of US$200 to $220 million, representing an expected growth of 4 to 14% over 2021 final production sales, which could result in net income in the range of US$11 to 13 million, or US$0.28 to 0.33 per share.
A 25% monthly dividend increase has been paid since January 2022, which on an annual basis, will represent CA$0.10 per share or more than a 3% dividend yield based on the share price at the beginning of 2022. The company has a solid cash position with US$25.7 million on hand at the end of March.