Dynacor hits gold processing record in Peru

Dynacor hits gold processing record in Peru
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VANCOUVER – Dynacor Gold Mines Inc. [DNG-TSX} on Wednesday reported gold sales of US$15 million for November, 2022, a decrease of 15.3% or US$2.7 million compared to November, 2021.

It attributed the decrease to the lower average gold price and lower quantities of bullion sold due to monthly inventory variations and reduced ore grade in comparison to year-ago levels.

The average selling price for gold in November, 2022, was US$1,752 an ounce, compared to US$1,814 an ounce last year.

The announcement comes after Dynacor recently increased its monthly dividend by 20%. The new dividend of $0.01, paid monthly, or 12 cents a share on an annual basis, represents a yield of 4.27%. It marks the fourth dividend increase since the company paid its initial dividend in October, 2018.

Dynacor is an alternative gold company investment with a proven and profitable business model that involves the processing of ore purchased from the ASM (artisanal small-scale mining) industry in Peru.

Dynacor aims to be an environmentally and socially responsible industrial gold ore processor that is committed to shareholder returns through a monthly dividend stream and stock buyback program.

The company said 2022 cumulative sales at the end of November, 2022, amounted to US$179.7 million, compared to US$180.1 million in the same period in 2021. The year-to-date selling price for gold at the end of November, 2022 was US$1,799 an ounce compared to US$1,793 an ounce in 2021.

As a result of a plant capacity increase during the month, the company processed an all-time monthly record of 13,191 tonnes of ore, up from 12,480 tonnes in November, 2021.

Dynacor operates in Peru, where its management and processing teams have decades of experience working with artisanal miners. Through a subsidiary called Veta Dorada, the company buys ore form Artisinal Small Miners who are enlisted in the formalizing process of the Peruvian government. The Veta Dorada Plant has a processing capacity of 500 TM/D and is located in the Chala District, Arequipa, Peru.

The Veta Dorada plant has been steadily increasing its daily output over the last number of years, allowing Dynacor, via a Peruvian subsidiary, to become the nineth largest gold exporter in Peru.

The company has implemented a compliance system for money laundering prevention and terrorism financing, focused on risks through which acts of corruption and money laundering are also prevented. “In our production areas, there is no child or forced labour,” Dynacor has said. Gold is exported from Lima airport to Switzerland.

On Wednesday, Dynacor shares rose 1.83% or $0.05 to $2.77. The shares are currently trading in a 52-week range of $3.50 and $2.50.

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