Dynacor profits from cooperation with artisanal miners
(Kitco News) - Dynacor Gold Mines (TSX: DNG / OTC: DNGDF) today announced that the company completed its fiscal 2020 year recording its 10th consecutive profitable year with a net income of $4.3 million compared to $5.2 million in 2019 and with a 9.3% increase in EBITDA to $11.7 million, including $4.8 million in Q4-2020 ($2,2 million in Q4-2019). Total sales for the year amounted to $101.5 million compared to $102.5 million.
Dynacor said it started 2020 with a strong operational performance which was suddenly stopped by the Covid-19 pandemic. The three-month operation stoppage from March 16 till June 5, 2020, ended, in Q2-2020, a streak of thirty-six consecutive profitable quarters. In Q3, the company successfully resumed its ore purchase and processing activities, immediately returning to profit, and strongly ended 2020.
The company added it was able to retain all of its ore suppliers and to steadily increase its ore purchasing and processing levels ending 2020 with an ore inventory exceeding 8,000 tonnes which represents 24 days of production, ready to face the usual first quarter rainy season.
Dynacor also pointed out that 2020 quarterly dividends paid increased by 50% to CA$0.015 per share and totaling $1.7 million (CA$2.3 million). Starting in February 2021, a CA$0.005 monthly dividend per share is paid replacing the CA$0.015 quarterly dividend. During 2020, dividends paid produced an average yield of 3.36%.
Dynacor is a dividend-paying industrial gold ore processor headquartered in Montreal, Canada. The corporation is engaged in gold production through the processing of ore purchased from the ASM (artisanal and small-scale mining) industry. At present, Dynacor operates in Peru, where its management and processing teams have decades of experience working with ASM miners. It also owns a gold exploration property (Tumipampa) in the Apurimac department.