$DNG:CA | Dynacor (TSX:DNG) (US:DNGDF) Over the last five years, the Company has set its own course to success. Our production and gold resource levels are poised for significant growth without debt or share dilution. We have endured periods of low prices and enjoyed other periods of top sector stock price performance. We have had positive cash flow every year, and, with the exception of 2010 when we recorded a paper loss, we have had earnings every year. Dynacor has reached a crossroad in its development. We have attained a milestone level of production: currently producing at approximately 250 tonnes per day (81,000 oz/yr annualized) with a further increase expected via the commissioning of the new 300 tpd Chala plant. I know of very few junior resource companies that have achieved this goal in such a relatively short time without resorting to a single equity financing. This past six months has been trying given the political events of the Peruvian crackdown on illegal mining/milling that triggered a period of instability in the Peruvian mining community. These recent events have had some short term negative effects on our working conditions as noted from our past quarter operational results (Q1-2014: $0.02 EPS). It should be known, Peru is our first choice for an ore-processing and exploration business. We have a time-honored reputation as one of the foremost ore-processers in the area and which we believe will continue to be an excellent country to provide shareholder value. A difficult quarter is now behind us and I am looking ahead with excitement and enthusiasm at Dynacor’s prospects for the future. The North American economy appears to be resilient; showing signs of inflationary pressures thus indicating gold will be front and center before too long. Consequently the gold price appears to be stabilizing and building a new launch pad at $1250 to $1350 per ounce. In the coming quarters, we are anticipating a significant increase in overall gold resources, in our gold and silver production from Huanca and soon to be Chala. In turn, this will have a positive impact on the Company’s gold in the ground valuation, cash flow and earnings. Dynacor will be embarking on a new exploration campaign which, if successful, could add significantly to the Company’s gold resources. Moreover, we are actively evaluating new acquisition opportunities in America with the objective of starting new cash flowing operations. We trust your patience will be rewarded as the market returns to recognize the value in the renewing exploration campaign at Tumipampa together with construction startup of a brand new mill. We remain confident that our disciplined and proactive strategies will continue to create value for your investment in Dynacor. All the best, Dale
Posted on: Mon, 26 May 2014 15:56:38 +0000
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