January 2018 Investor Presentation A Gold Cash Flow Business Model - - PowerPoint PPT Presentation
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
A lower risk gold producer $13M+ CF annualized $0.33 cash flow per share annualized Paid off US$ 6.3 million of debt in last 5 months 26 consecutive quarters of profit
*CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25
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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
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0% 200% 400% 600% 800% 1000% 1200% 1400% 1600% 1800% 2000% 2200%
DNG-TSX stock price S/P TSX Global Gold Index
1558%
32% annualized return since 2008
cycles of the gold market
without a gold bull environment
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Q3-2018
Implied Share Price See Slide #9
Receive ore shipments from more than 400 government registered Peruvian artisanal gold miners Weigh, assay and screen ore deliveries for gold content at our new
modernized plant
Pay miners after
24 hours from
delivery and process ore through mill After 10-14
days of
processing Receive payment for gold dore bars from strategic
partner, PX Precinox
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dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 5,208 6,733 5,181 5,087 6,206 6,895 6,287 7,042 7,192 7,905 7,253 8,910
4,000 5,000 6,000 7,000 8,000 9,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly gold production ounces (Jan-Dec 2017) 24,068 ounces produced in Q4-2017, an annualized basis of nearly 100,000 ounces +71% 79,897 ounces produced in 2017
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dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 185 220 200 180 185 215 190 245 265 270 265 300
160 185 210 235 260 285 310
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average Monthly Ore Processing Rate (TPD) in 2017 2018 goal ramp up to
(tonnes per day) +62%
*TPD is rounded to the nearest five (5) units
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51 136 105 159
40 65 90 115 140 165
Cash Flow Per Ounce $CAD $CAD Q4 2016 Q1 2017 Q2 2017 Q3 2017 CF From Operations 1,067 2,326 1,917 3,268 CF Per Share 0.03 0.06 0.05 0.083 CF Multiple 11 11 9 9 Currently Trading With A Multiple of
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CAD$ (Millions) Q3 2017 Q3 2018 (TTM) Last 2 Yrs Price to CF Multiple Range Q3 2018 Implied Share Price Cash Flow From Operations 3.3 13.0 10-13 $3.30 to $4.16 Cash Flow Per Share 0.08 0.33
10% 13% 12% 14% 5 10 15 Q4-16 Q1-17 Q2-17 Q3-17 Gross Margin % +40%
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*CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25
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A lasting & positive contribution
to the economic, social and environmental development of our mining communities
Environmental, social and ethical
practices that respect human rights are an integral part of the PX Impact Gold program
Guarantees complete traceability
across the gold ore supply chain coming from government registered miners in Peru
The fund finances projects
in health, education, economic dev & the environment of the mining communities
An investment premium flows back
to our miner’s communities
100% of the premium is paid into
the fund and reinvested into Dynacor’s mining communities
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per share growth (a sustainable/steady dividend history)
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Lima
2018 (drill results)
results
underground workings
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CONCESSION MAP
TUMIPAMPA IV 2014 TUMIPAMPA III 2014 TUMIPAMPA VB 2014 TUMIPAMPA
VI 2014
TUMIPAMPA VII 2014 TUMIPAMPA VIII 2014
PROYECTO TUMIPAMPA
MERIDIAN (HORIZONTE) BARRICK GOLDEN IDEAL GOLD MINING SUPER STRONG MERIDIAN (HORIZONTE) MERIDIAN (HORIZONTE) ORTEGA TRIVEÑO ORTEGA ORTEGA ORTEGA ORTEGA CHANCADORA CENTAURO IAM GOLD SOUTHERN PERU
TAPAIRIHUAJA (VETADORADA)
SOUTHERNPERU BARRICK FRESNILLO PERU SOUTHERN BARRICK ANGLOAMERICAN FRESNILLO PERU BEER CREEK CONCESIONES TUMIPAMPA 9755.60 Aprox. Has -Área neta Total 22 Concesiones Escala Gráfica PETITORIOS EN DISPUTA DESDE EL 2014 1 2km ZONAS LIBRES CONCESIONES PERSONAS NATURALES Y/O PPM TUMIPAMPA IX 2014 TUMIPAMPA
X 2014
TUMIPAMPA
XI 2014
TUMIPAMPA
XII 2014
NICOLE 11 DISEMI MINAD NADO TUMIPAMPA V 2014 MINERA DEL NORTE SA
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1 KM
N
Sym >=Minimum <Maximum 0.00 < 0.05 0.05 0.10 0.10 0.30 0.30 1.00 1.00 3.00 >= 3.00 100.00
Au (gr/tn)
Mármol Km-Fe Cuarzomonzonita Laguna patacocha
31.16 g/t Au Veta sondoro 22.09 g/t Au 7.38 g/t Au 4.86 g/t Au 9.01 g/t Au 3.66 g/t Au 3.35 g/t Au
SECCION L 37800
11.30 g/t Au 5.06 g/t Au 4.56 g/t Au 19.49 g/t Au 3.17 g/t Au 3.57 g/t Au 6.15 g/t Au 8.21 g/t Au 7.63 g/t Au 18.18 g/t Au 16.79 g/t Au 10.94 g/t Au 28.60 g/t Au
Caliza Km-Fe
1.26 %/Cu
LEYENDA
BOFEDAL CUARZO MONZONITA MARMOL (Ki- Fe) CALIZA (Ki-Fe) CUARCITA FALLA VETAS CUARZO DIORITA EXOSKARN CUATERNARIO LAGUNAS ANOMALIA CARGABILIDAD
Manto Lucha
ANOMALIA 2 ANOMALIA 3 ANOMALIA 4 ANOMALIA 1 ANOMALIA 5 ANOMALIA 6
Veta Cuyana Cuerpo Sumac
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✓ 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)
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This presentation contains certain forward-looking statements regarding
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
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
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.
Canadian | TSX: DNG American | OTC (Q): DNGDF dynacor.com | investors@dynacor.com Director, Investor Relations Dale Nejmeldeen (604) 492 0099