VANCOUVER, British Columbia, May  16, 2023  (GLOBE NEWSWIRE) -- Montreal-based Dynacor Group Inc (TSX:DNG), a dividend-paying international industrial gold ore processor, has released its unaudited condensed interim consolidated financials and MD&A for the first quarter ended March 31, 2023. Gold sales for the quarter ended March 31, 2023 came in at US$56.7 million, an increase of 13.2% over the US$50.1 million reported for the quarter ended March 31, 2022.

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The latest quarter also benefited from the sale of 1,029 ounces which had been retained in December 2019 for control procedures and released in February 2023. Due to political unrest, mostly in Southern Peru, the company postponed exports from mid-January until February, which explains the monthly sales variance.

The company also reported net income of US$4.5 million or US$0.11 per share for the quarter compared to US$5.1 million or US$0.13 per share for the comparable quarter in 2022, as it was impacted by lower grades, global inflation affecting the unit cost of production and by the overall trend in gold market prices.

Dynacor, an international gold ore industrial company, purchases ore from artisanal and small-scale miners which it processes at its Veta Dorada processing plant which is strategically located fifteen minutes off the Pan American Highway near Chala in southern Peru. Thanks to the high level of ore inventory at the beginning of the year and the increasing volume of ore supplied, the mill has been able to process a record high of more than 41,500 tonnes throughout the quarter with an average of 462 tpd.

Dynacor’s 2023 capital budget is set between US$7.0 and US$10.0 million which includes investments at the Veta Dorada plant to increase equipment efficiency, increase tailing pond capacity, additional vehicles for the ore purchase team and administrative and ore purchasing buildings. The company has also budgeted approximately US$1.0 million to advance other projects in other jurisdictions.

The company in forecasting gold sales in the range of US$210 to US$236 million representing a growth of 6.5% to 20% over 2022 sales, which would result in a net income in the range of US$8.5 to US$11.5 million or US$0.20 to US$0.30 per share.

The company pays a monthly dividend, which was increased by 25% at the beginning of 2022 to CDN$0.10 per share annually and increased again January 2023 to CDN$0.12 annually, which represents an annual dividend yield of 3.9% based on current share price. The company has a solid cash position with US$30.7 million on hand at the end of March.

The company owns 100% of the advanced stage Tumipampa gold exploration property in south central Peru’s Apurimac department.

Dynacor, a founding partner in the PX IMPACT® gold program, produces environmental and socially responsible gold. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors pay a small premium for this gold which provides direct investment to develop health and education projects for the artisanal and small-scale miner’s communities.

The shares are currently trading at $3.05, with 38,428,048 shares outstanding, following the repurchase of 29,080 shares and the issuance of 172,500 shares as a result of the exercise of options.

For more information, visit the company’s website www.dynacor.com, contact the company at 514-393-9000 ext 230 or by email at [email protected].

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