Click here to close now.

SYS-CON MEDIA Authors: Wade Williamson, Lori MacVittie, VictorOps Blog, Liz McMillan, Elizabeth White

News Feed Item

Dynasty Reports Financial Results for the Three and Six Months Ended June 30, 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/15/14 -- Dynasty Metals & Mining Inc. ("Dynasty" or the "Company") (TSX:DMM)(OTCQX:DMMIF) announces that it has released its unaudited consolidated financial statements for the three and six months ended June 30, 2014. The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, the Company's unaudited consolidated financial statements as at and for the three and six months ended June 30, 2014 and the related notes thereto (the "Financial Statements") and the Company's management's discussion and analysis ("MD&A"), which are available on the Company's website (www.dynastymining.com) and on SEDAR (www.sedar.com).

All dollar amounts in United States dollars unless otherwise stated.

Summary

The Company reported a net loss of $2.1 million for the six months ended June 30, 2014 which comprised of a net loss of $3.2 million for the three months ended June 30, 2014 and the previously reported net profit of $1.1 million for the three months ended March 31, 2014.

The net loss incurred for the three months ended June 30, 2014 was primarily attributable to a decrease in gold production and associated revenue since there was limited access to regions within the Zaruma Gold Project (the "Zaruma Project") deposit containing higher grade gold. As a result, the average grade of material processed reduced from 10.81 grams per tonne ("g/t") during the three months ended March 31, 2014 to 4.42 g/t during the three months ended June 30, 2014.

Subsequent to June 30, 2014 to date, the average grade of material mined has improved with the extractable gold grade averaging approximately 9 g/t, while still mining comparable average daily tonnes as achieved in the second quarter of 2014. The increase in grade has resulted in the Company shipping dore bars from the Zaruma Project containing approximately 4,000 ounces of gold since June 30, 2014.

Although the reduced grade gave rise to disappointing results for the period it was not unexpected given the current stage of ongoing development and the early stage commercial production phase of operations at the Zaruma Project, specifically:


--  a substantial amount of mine development work was performed during the
    period in order to advance the Zaruma mine. Furthermore, since the
    Company's accounting policy is to expense all development work at the
    Zaruma Project as it is incurred this expenditure is included in the
    income statement thereby increasing the loss for the period as compared
    to if the Company had adopted an accounting policy to capitalize these
    expenses; and 
    
--  it is not uncommon to encounter areas of the Zaruma deposit with
    significantly higher or lower grades as compared to the average grade
    previously disclosed in the Company's mineral resource estimate, since
    the resource at Zaruma is known to contain a significant variability in
    grade between different areas, which are often in close proximity to
    each other. This characteristic is not uncommon among other high-grade
    narrow quartz vein deposits. 

It is for this reason that the Company has previously disclosed, and continues to maintain, the expectation that during this early commercial production phase of operations at the Zaruma Project it is unlikely that the Company will achieve a consistent quarterly production profile until the Zaruma mine is developed further and material is mined from multiple veins simultaneously.

As the Company is still in the process of updating its Technical Reports, including in respect of the Zaruma Project, readers are reminded not to rely upon the mineral resource estimates contained in the Company's public filings until such time as Technical Reports supporting such estimates have been filed.

Zaruma Gold Project Operating Results


                                                                            
                                        Six months Three months Three months
                                        ended June   ended June  ended March
                                          30, 2014     30, 2014     31, 2014
                                       (unaudited)  (unaudited)  (unaudited)
----------------------------------------------------------------------------
                                                                            
Gold Revenue                           $15,200,129  $ 5,809,173  $ 9,390,956
                                                                            
Gold sales (ounces)                         11,768        4,531        7,237
                                                                            
Average realized price per ounce       $     1,292  $     1,282  $     1,298
                                                                            
Mined material milled (tonnes)              53,963       37,065       16,898
                                                                            
Average grade (grams/tonne)                   6.42         4.42        10.81
                                                                            
Average recovery (%)                          92.6         90.4         94.7
                                                                            
Gold production (ounces)                    10,319        4,761        5,558
                                                                            
Cash costs (US$/oz Au)(a,b)            $     1,099  $     1,310  $       919
                                                                            
Cash costs (US$/tonne Au)(a,b)         $       210  $       168  $       302
                                                                            
All-in sustaining cash cost (US$/oz                                         
 Au)(a,b)                              $     1,465  $     1,646  $     1,310
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------

a.  Net of by-product credits. 
b.  Non-GAAP measure. For the disclosure of the manner in which these
    measures are calculated and a reconciliation to operating expenditures
    refer to the "Non-GAAP Measures" section of the Company's MD&A for the
    three and six months ended June 30, 2014 available on SEDAR
    (www.sedar.com). 
c.  There are no comparable operating results for the three and six months
    ended June 30, 2013 since the Company commenced accounting for the
    Zaruma Project as being in commercial production commencing on October
    1, 2013 as the project was meeting production milestones to be
    operating, for accounting purposes, in the way intended by Management. 

Cash costs per ounce and all-in sustaining cash costs per ounce for the six months ending June 30, 2014 were $1,099 and $1,465 respectively. Cash costs per ounce and all-in sustaining cash costs per ounce for the three months ending June 30, 2014 were $1,310 and $1,646 respectively. Cash costs per ounce and all-in sustaining cash cost per ounce in fiscal 2014 to date have shown a considerable increase compared to the three months ended December 31, 2013 when cash costs per ounce and all-in sustaining cash costs per ounce were $592 and $791 respectively.

The Company's operations consist of a large fixed cost proportion, with the actual cash expenditure not varying a great deal between periods, irrespective of the grade or tonnes of material mined and processed. This means that reported cash cost per ounce measures are highly sensitive to the grade of material mined and processed in a given period. The reduction in grade mined and processed during the six months ending June 30, 2014, as well as the cost of development work which was all expensed, has therefore increased the per ounce cash cost measures.

In the near term, the Company intends to remain focused on developing the main decline with the intent to continue to develop high grade gold veins in the area, thereby providing access to additional mining faces which in turn is expected to improve production. This outlook is based on current operations, mine plans and exploration results, which are subject to change and as such cannot be assured (see "Critical Risk Factors" section of the Company's MD&A for the three and six months ending June 30, 2014).

The following tables show selected consolidated financial information as at June 30, 2014 and December 31, 2013 and for the three and six months ending June 30, 2014 and 2013:


                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                      For the Six   For the Six For the Three For the Three 
                     Months Ended  Months Ended  Months Ended  Months Ended 
                         June 30,      June 30,      June 30,      June 30, 
                          2014(a)       2013(a)       2014(a)       2013(a) 
----------------------------------------------------------------------------
                                                                            
OPERATING REVENUES    $15,676,886   $         -   $ 5,999,302   $         - 
                    --------------------------------------------------------
                                                                            
OPERATING COSTS                                                             
 (Note 4)                                                                   
  Mining and                                                                
   processing          12,534,807             -     6,622,119             - 
  Royalties               752,604             -       379,238             - 
  Depreciation and                                                          
   depletion            2,321,189             -     1,215,739             - 
                    --------------------------------------------------------
                       15,608,601             -     8,217,096             - 
                    --------------------------------------------------------
EARNINGS (LOSS) FROM                                                        
 MINE OPERATIONS           68,285             -    (2,217,794)            - 
EXPENSES                                                                    
  Corporate                                                                 
   administration                                                           
   (Note 5)             2,031,009     2,354,681       917,209     1,108,321 
  Stock-based                                                               
   compensation                                                             
   (Note 11)              134,563        50,051        39,236        (6,747)
                    --------------------------------------------------------
                        2,165,572     2,404,732       956,445     1,101,574 
                    --------------------------------------------------------
EARNINGS (LOSS)                                                             
 BEFORE INCOME TAXES   (2,097,287)    2,404,732    (3,174,239)   (1,101,574)
                                                                            
INCOME TAXES                                                                
  Current tax                                                               
   expense                 27,565             -             -             - 
                    --------------------------------------------------------
                                                                            
NET EARNINGS /                                                              
 (LOSS) FOR THE                                                             
 PERIOD               $(2,124,852)  $(2,404,732)  $(3,714,239)  $(1,101,574)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
BASIC AND DILUTED                                                           
 LOSS PER SHARE           $ (0.05)      $ (0.06)      $ (0.09)      $ (0.03)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Consolidated Statements of Financial Position, as at:


                                                                            
                                                  June 30,     December 31, 
As at:                                                2014             2013 
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
Current assets                                                              
  Cash                                      $      356,633   $    4,913,500 
  Receivables                                       19,817           20,162 
  Prepaid expenses                                 757,950          556,380 
  Inventory                                      4,294,211        4,320,543 
                                          ----------------------------------
                                                                            
                                                 5,428,611        9,810,585 
Advances, deposits and warranties                  306,348          306,348 
Mine properties, plant and equipment            49,326,508       51,309,641 
Exploration and evaluation properties           15,128,900       14,067,965 
                                          ----------------------------------
                                                                            
                                            $   70,190,367   $   75,494,539 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
                                                                            
Current liabilities                                                         
  Accounts payable and accrued liabilities  $    5,299,661   $    6,090,741 
  Taxes payable                                          -        2,426,941 
  Short term loans                               1,000,000        1,132,591 
                                          ----------------------------------
                                                                            
                                                 6,299,661        9,650,273 
Provision for closure and restoration            1,882,181        1,845,452 
                                          ----------------------------------
                                                                            
                                                 8,181,842       11,495,725 
                                          ----------------------------------
Shareholders' equity                                                        
  Capital stock                                 89,059,365       89,059,365 
  Contributed surplus                           14,075,949       13,941,386 
  Deficit                                      (41,126,789)     (39,001,937)
                                          ----------------------------------
                                                                            
                                                62,008,525       63,998,814 
                                          ----------------------------------
                                                                            
                                            $   70,190,367   $   75,494,539 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liquidity

As at June 30, 2014 the Company had cash resources of $0.4 million and a working capital deficit (current assets less current liabilities) of $0.8 million compared to cash resources of $4.9 million and a working capital surplus of $0.2 million as at December 31, 2013.

Included within short term loans, and within the calculation of working capital, is a $1 million Promissory Note from corporations represented by the Company's President and Chief Executive Officer. The Promissory Note bears no interest, is repayable on demand and is secured by way of a General Security Agreement over certain assets of the Company.

Since June 30, 2014 the Company has shipped dore bars containing approximately 4,000 ounces of gold from the Zaruma Project, with an approximate value of $5.2 million, which have either been sold or are in transit to the refinery and are soon expected to be available for sale.

About Dynasty Metals & Mining

Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador.

The Company is currently focused on developing its Zaruma Gold Project, at which the Company is engaged in intermittent production. The Company also has the following non-producing assets: the Jerusalem Project and Dynasty Goldfield Project.

Brian Speechly, a Fellow of AusIMM (Australian Institute of Mining and Metallurgy), a director of the Company and a "qualified person" within the definition of that term in the National Instrument 43-101, has supervised the preparation of and has verified the technical information contained in this news release.

Forward-Looking Information

This news release contains statements which are, or may be deemed to be, "forward-looking information" which are prospective in nature. Often, but not always, forward-looking information can be identified by the use of forward-looking words such as "plans", "expects" or "does not expect", "is expected", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Such information in this news release includes, without limitation, statements regarding Dynasty's future plans and expectations relating to the Zaruma mine development and mineral extraction Forward-looking information is not based on historical facts, but rather on then current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including assumptions relating to the Company's ability to continue progress through its declines with minimal or no interruption, that the Company will be able to continue its progress in respect of its mines as planned, that the Company will continue to sell processed gold and silver at levels that allow it to fund the continued development of its mining projects and sustain its operations, that the Company will have access to capital if required, that all necessary approvals and arrangements will be obtained, renewed and/or finalized in a satisfactory manner in order to continue developing the Company's projects, and that the Company's equipment will operate at expected levels. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause Dynasty's actual results, revenues, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important risks that could cause Dynasty's actual results, revenues, performance or achievements to differ materially from Dynasty's expectations include, among other things: (i) risks related to prior mining activity at its mines and declines, (ii) uncertainties relating to mineral resource estimates (iii) risks related to availability of capital on satisfactory terms, (iv) risks related to being an early stage producer; (v) risks related to Dynasty's lack of history in producing metals from Dynasty's mineral exploration properties and its ability to successfully establish mining operations or profitably produce precious metals; (vi) that Dynasty will be unable to successfully negotiate agreements with the holders of surface rights on areas covered by Dynasty's project concessions; (vii) changes in the market prices of gold, silver, and other minerals, which, in the past, have fluctuated widely and which could affect the profitability of Dynasty's operations and financial condition; (viii) risks related to governmental regulations, including taxation statutes; (ix) risks related to Dynasty's primary properties being located in Ecuador, including political, economic, and regulatory instability; (x) uncertainty in Dynasty's ability to obtain and maintain certain permits necessary to the Company's current and anticipated operations; and other risks found in Dynasty's Annual Information Form for the year ended December 31, 2013, which is available on SEDAR at www.sedar.com. Other than in accordance with its legal or regulatory obligations, Dynasty is not under any obligation and Dynasty expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting we...
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Even though it’s now Microservices Journal, long-time fans of SOA World Magazine can take comfort in the fact that the URL – soa.sys-con.com – remains unchanged. And that’s no mistake, as microservices are really nothing more than a new and improved take on the Service-Oriented Architecture (SOA) best practices we struggled to hammer out over the last decade. Skeptics, however, might say that this change is nothing more than an exercise in buzzword-hopping. SOA is passé, and now that people are ...
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the dat...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
SYS-CON Events announced today that Emcien will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Emcien’s vision is to let anyone use data to know the future. Emcien has built an automated, predictive analysis product that improves the lives of real people. Emcien allows people to automate their data analysis so they can build a better future.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at...
Chef and Canonical announced a partnership to integrate and distribute Chef with Ubuntu. Canonical is integrating the Chef automation platform with Canonical's Machine-As-A-Service (MAAS), enabling users to automate the provisioning, configuration and deployment of bare metal compute resources in the data center. Canonical is packaging Chef 12 server in upcoming distributions of its Ubuntu open source operating system and will provide commercial support for Chef within its user base.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.