January 2018 Investor Presentation - Dynacor Gold Mines
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January 2018 Investor Presentation
A Gold Cash Flow Business Model
A lower risk $0.33
gold producer cash flow
$13M+ CF per share
annualized annualized
A Debt-Free
Cash Generator
Paid off US$ 6.3
26 consecutive
million of debt
quarters of profit
in last 5 months
*CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25
dynacor.com DNG – TSX | DNGDF - OTC (Q) 2
Capital Market Summary
Market Summary
Stock Price (Year High-Low) $1.50 - $2.75
Ticker Symbol DNG - TSX
Shares Outstanding (Basic) 39M
Warrants Nil
Average Daily Volume (Shares) 90,513
Monthly Dividend TBD
Dividend Yield TBD
Director & Senior Management Ownership 4%
Capital Structure
Market Capitalization 74M
Enterprise Value (As of Sept 30, 2017) 82M
Debt Nil
dynacor.com DNG – TSX | DNGDF - OTC (Q) 3
Shareholder Return 2008-2018 Q3-2018
Implied Share
Price
DNG-TSX stock price See Slide #9
S/P TSX Global Gold Index
32%
annualized
return since 2200%
• Continues to profit through the 2008 2000%
cycles of the gold market 1800%
1600%
1558%
1400%
• Built to survive and prosper with or 1200%
1000%
without a gold bull environment 800%
600%
400%
-38% 200%
0%
-200%
dynacor.com DNG – TSX | DNGDF - OTC (Q) 4
The Cash Flow Proven Dynacor Model
Weigh, assay and
3 Pay miners after
2
screen ore 24 hours from
deliveries for delivery and
gold content process ore
at our new through mill
modernized
plant
4
After 10-14
Receive ore days of
processing
1
shipments from
5
more than 400 Receive payment
government for gold dore bars
registered from strategic
Peruvian artisanal partner, PX
gold miners
Precinox
dynacor.com DNG – TSX | DNGDF - OTC (Q) 5
Record High Gold Production
Monthly gold production ounces (Jan-Dec 2017)
8,910
9,000
79,897 ounces
7,905 +71%
8,000 produced in 2017
7,192 7,253
6,895 7,042
7,000 6,733
6,287
6,206 24,068 ounces produced
6,000 in Q4-2017, an
5,208 5,181 5,087 annualized basis of
5,000 nearly 100,000 ounces
4,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 6
Ore Supply and Deliveries Growing
Average Monthly Ore Processing Rate (TPD) in 2017
310 300
2018 goal ramp up to
285 +62%
360 TPD 265
270
265
260 (tonnes per day) 245
235
220
215
210 200
190
185 185
185 180
160
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
*TPD is rounded to the nearest five (5) units
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 7
Rising Cash Flow & Compelling Value
Cash Flow Per Ounce $CAD Q4 Q1 Q2 Q3
$CAD
165
2016 2017 2017 2017
CF From
140 1,067 2,326 1,917 3,268
Operations
115
CF Per
159 0.03 0.06 0.05 0.083
90 136 Share
65 105 CF
51 11 11 9 9
Multiple
40
Currently Trading With A Multiple of
8.9 Times Cash Flow
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 8Annualizing CF On Last Quarter Report
Last 2
Q3 2018 Assumes
CAD$ Q3 2018 Implied
(Millions)
Q3 2017
(TTM)
Yrs Price to CF
Share 10-13
Multiple Range
Price times
Cash Flow $0.33
From 3.3 13.0 $3.30 cash flow
Operations 10-13 to
Cash Flow $4.16 per share
Per Share
0.08 0.33 (TTM)
Gross Margin %
13% 12% 14%+40%
15 10%
10
5
Q4-16 Q1-17 Q2-17 Q3-17
*CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 9Strong Strategic Partner With Swiss Co
PX Precinox (www.pxgroup.com)
• Is one of 10 companies under the PX Group
• Experts in precious metal refining
• Mastered the process of high quality refining to finishing
• A leading Swiss producer of gold bars
• Partner of the PX Impact Gold Program
dynacor.com DNG – TSX | DNGDF - OTC (Q) 10Circulating New PX Impact Gold
Environmental, social and ethical Guarantees complete traceability
practices that respect human rights are an across the gold ore supply chain coming
integral part of the PX Impact Gold program from government registered miners in Peru
An investment PX Impact 100% of the
premium flows back premium is paid into
to our
miner’s
Equals the fund and reinvested
into Dynacor’s mining
communities
Ethical Gold communities
A lasting & positive contribution The fund finances projects
to the economic, social and environmental in health, education, economic dev & the
development of our mining communities environment of the mining communities
dynacor.com DNG – TSX | DNGDF - OTC (Q) 11Strategic Plan
Short Term Strategy > 3 – 12 Months
• Self fund throughput growth to 360 TPD (CAPEX 2 – 5 Years
• Expand throughput growth to 600+ TPD
• Bring to fruition low risk development plan on gold project, Tumipampa
• Establish world renown brand as socially accountable high quality gold
• Target yield contraction through responsible shareholder dilution plan and
per share growth (a sustainable/steady dividend history)
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 12Our Exploration Asset, Tumipampa • 500 km southeast of Lima • 9,756 ha • Surface results pending • Drilling planned for 2018 (drill results) • 21,610 meters of drill results • 2,881 meters of underground workings dynacor.com dynacor.com DNG – TSX | DNGDF - OTC (Q) 13
Concession Map
BEER CREEK
GOLDEN
IDEAL
GOLD
MINING
SUPER
STRONG
FRESNILLO PERU PROYECTO TUMIPAMPA
MINERA DEL NORTE SA
CONCESSION
TAPAIRIHUAJA TRIVEÑO
(VETADORADA)SOUTHERNPERU
BARRICK
DISEMINADO
TUMIPAMPA MAP
FRESNILLO PERU V 2014
TUMIPAMPA
SOUTHERN TUMIPAMPA TUMIPAMPA
X 2014
BARRICK IV 2014 VB 2014
ANGLOAMERICAN ORTEGA
TUMIPAMPA
TUMIPAMPA III 2014 XI 2014
MERIDIAN TUMIPAMPA CONCESIONES
SOUTHERN (HORIZONTE) ORTEGA ORTEGA MERIDIAN VI 2014 TUMIPAMPA
PERU
(HORIZONTE) 9755.60 Aprox. Has -Área
NICOLE 11 neta
TUMIPAMPA Total 22 Concesiones
TUMIPAMPA IX 2014
IAM GOLD VII 2014
ORTEGA CONCESIONES PERSONAS
NATURALES Y/O PPM
TUMIPAMPA
TUMIPAMPA
VIII 2014 ZONAS LIBRES
ORTEGA XII 2014
CHANCADORA CENTAURO MERIDIAN
(HORIZONTE) BARRICK PETITORIOS EN DISPUTA
DESDE EL 2014
0 1 2km
Escala Gráfica
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 14Geological Map Of Disseminated Zone
Caliza Km-Fe
Laguna
patacocha
N
Cuarzomonzonita 19.49 g/t Au
18.18 g/t Au 3.57 g/t Au 11.30 g/t Au
8.21 g/t Au
Veta Cuyana7.63 g/t Au 10.94 g/t Au 3.17 g/t Au 5.06 g/t Au
16.79 g/t Au 4.56 g/t Au
Mármol
Km-Fe 28.60 g/t Manto
Au Lucha ANOMALIA 5
ANOMALIA 2
31.16 g/t Au 6.15 g/t Au
Veta sondoro
22.09 g/t Au ANOMALIA 1 ANOMALIA 3
7.38 g/t Au ANOMALIA 6
4.86 g/t Au 3.35 g/t Au
9.01 g/t Au
3.66 g/t Au SECCION L 37800
1.26 %/Cu Cuerpo Sumac ANOMALIA 4
35. 58 g/t Au
Bx. Adriana
LEYENDA
CALIZA (Ki-Fe)
BOFEDAL
CUARZO MONZONITA
CUARZO DIORITA
MARMOL (Ki- Fe)
CUARCITA Au (gr/tn)
EXOSKARN 0 1 KM Sym >=Minimum = 3.00 100.00
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 15Investment In Dynacor
Near Term Catalysts
✓ Recent debt free status removes interest from 2018 financials
✓ Lower costs and higher earnings with greater gold production
✓ 2018 quarterly financials comparing to 2017 start up year
✓ Annualized CF per share of CAD $0.33 (P/CF range 10-13X)
✓ Defining new dividend policy (increases ROI)
✓ Renewing Tumipampa drill campaign (drill results)
dynacor.com
dynacor.com DNG – TSX | DNGDF - OTC (Q) 16Forward Looking Statements This presentation contains certain forward-looking statements regarding operational information, future exploration and development plans and anticipated future production. Words such as, potential”, “building” “inferred”, “if”, “will”, “expect”, “forecast”, “estimate”, “consider”, “may”, “possible” and similar expressions have been used to identify these forward-looking statements. These statements are management’s current beliefs and are based on information currently available to management. Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the forward- looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place under reliance forward-looking statements. Forward-looking statements and other information contained herein concerning the metals and mining industry and Dynacor’s general expectations concerning the industry are based on estimates prepared by management using data from publicly available industry sources as well as from private sources, industry analysis and on assumptions based on data and knowledge of the this industry which the Company believes to be reasonable. However, this data is inherently imprecise. While Dynacor is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met. dynacor.com dynacor.com DNG – TSX | DNGDF - OTC (Q) 17
Canadian | TSX: DNG
American | OTC (Q): DNGDF
dynacor.com | investors@dynacor.com
Director, Investor Relations
Dale Nejmeldeen (604) 492 0099You can also read
