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Dynacor Gold Mines Inc (TSX:DNG)

Summary

Dynacor Gold Mines is a Toronto Stock Exchange listed gold production company based in Montreal, Canada. The company is focused on the production of gold in its ore processing facilities in Peru.

Market Overview

$2.01 (1.560%)
Vol 38,637.00
10 Days Avg Vol 37,169.00
3 Mo Avg Vol 24,528.50
52 Wk Lo/Hi $1.82 - $3.71
YTD Price Gain % -19.28%
12 Wks Moving Avg 2.015444
200 Days Moving Avg 2.198175
Market Cap 77,917,471

Company Background

Dynacor Gold Mines Inc. is a gold production corporation headquartered in Montreal, Canada. The corporation is engaged in production through its government certified ore processing operations. At present, Dynacor produces and explores in Peru where its management team has decades of experience and expertise. In 2016, Dynacor produced 73,476 ounces of gold, a 9% increase as compared with 2015 (67,603 ounces in 2015). In 2017, the corporation is targeting 88-92,000 ounces of gold production, a 20% increase from the previous calendar year.

Highlights

  • A Profitable Gold Ore Processing Company.
  • Tight share structure (38.7 million).
  • Proven track record:
    • 23 consecutive quarterly profits throughout volatile gold market.
    • 18 years of gold processing experience in Peru.
    • 59% increase in gold production over last five years.
    • 222% increase in share price over the last five years.
  • Achieved a quarterly gold production record of 21,014 ounces in the fourth quarter, 2016.

Share Structure

As of December 31, 2016
Shares Issued 38M
Warrants 0
Options 1.2M
Fully Diluted 39.2M
Working Capital $15.7M

Other Information

Production and Projects:

Gold Ore Processing

  • Voted as Peru’s top gold ore processing company.
  • Process:
  1. Purchases ore at a discount to spot price from A.S.M. (government registered suppliers).
  2. Processes ore over a course of 10-12 days in our new plant Veta Dorada.
  3. Delivers gold ore bars to Swiss buyer located in Peru.
  4. Receives payment from Swiss buyer at spot price.
  • 10 Year Tailings Life With Additional 15 Year Option.
  • Located in mining friendly region of Peru.
  • Highly supported by local communities.

Exploration

  • 3 exploration assets (100% owned):
    • Tumipampa (Advanced): 9,755 ha, flagship project
    • Anta: 3,800 ha
    • Casaden: 1,664 ha
  • Tumipampa
    • 60 km south of the city of Abancay in the Tumipampa region, Circa District, province of Abancay, Apurimac department and about 500 km southeast of Lima, Peru.
    • US$ 8 billion in mine development and 3.6 billion tons of ore surround Tumipampa.

Management Profiles

Jean Martineau

President & CEO

Jean Martineau has been the CEO and president of Dynacor Gold Mines since 2006 when the company was founded. Jean Martineau has worked in the Canadian mining industry for more than 25 years as a director of junior exploration companies and as an investment broker. During the last 20 years he has focused on South America and has acquired an in depth knowledge in the management of natural resource companies in South America. His Latin American expertise has been of prime importance in the development of Dynacor Gold Mines’ operations in Peru.

Leonard Teoli

Vice-President & CFO

Léonard Teoli began his carrier with Price Waterhouse, in 1987 where he served clients in the mining industry until 1996. From 2003 to 2008 he was CFO of Diabras Exploration where he participated in the start-up in 2006 of a pilot mining operation in Mexico. Since then he acted as consultant and CFO for a couple of exploration companies with project in Canada and Morocco. He joined Dynacor’ management team as Vice-President and CFO after cumulating over 20 years of experience as an accounting and finance executive with several Canadian junior mining companies involved in exploration project worldwide. He is a member of the Canadian Institute of Chartered Accountants since 1990.

Alonso Sanchez

Chief Geologist

Alonso Sanchez holds a MSc in Geology and a degree in Engineering from the Universidad National de Ingeniería (1995). He worked for 11 years for Buenaventura S.A.A. (Peru), the largest mining Peruvian mining company; 5 years as mine geologist and 6 years as exploration geologist. He has an in-depth knowledge of epithermal gold, silver, tin, tungsten and polymetallic deposits, as well as Skarn-type deposits in both Peru and Bolivia. He acts as the qualified person (“QP”) for the Company, and is a geologist affiliated to the American Institute of Professional Geologists (AIPG).