Dynacor production down by 16.1% YoY
Dynacor Gold Mines Inc, a Corporation with a similar volume processed (20,814 tonnes in Q1-2019 vs. 21,035 tonnes in Q1-2018) our production is down by 16.1% compared to Q1-2018 (16,000 ounces in Q1-2019 vs. 19,072 ounces in Q1-2018). This decrease is mainly explained by a 13.1% decrease in the average grade of the available ore purchased and processed.
At Operational front, volume of ore processed of 20,814 tonnes of ore DMT compared to 21,035 DMT in Q1-2018. Gold production of 16,000 ounces, a decrease of 16.1% compared to Q1-2018 due to the reduced grades.
Yet, Dynacor Gold booked for 32nd consecutive quarter of profits.
Sales of $22.9 M in Q1-2019, a decrease of 13.9% compared to Q1-2018 and Gross operating margin of $2.8 M (12.2%) in Q1-2019, a decrease of 22.2% compared to Q1-2018. Over all Net income of $1.2 M ($0.03 per share) in Q1-2019, a decrease of 25.0% compared to Q1-2018.
Jean Martineau President and CEO commented: “A longer rainy season in Peru lasting from early January to mid April 2019 affected general gold production from artisanal miners in the country including areas of higher-grade procurement. The grade of available ore was also lower than usual. This had a direct impact on our Q1 production. Nevertheless, the first quarter production has historically been the lowest production quarter for the Corporation. Therefore, we maintain our production forecast which we will monitor over the next months’’.
2019 is given the expected increase in ore volume and with similar grades supplied to the plant in the last two years; the Corporation expects to produce between 82,000 and 92,000 ounces of gold in 2019.