Dynacor Group Inc. (TSX: DNG) (Dynacor or the Corporation), an international gold ore industrial corporation servicing ASMs (artisanal and small-scale miners), today announced its board of directors approved a 16.666% increase to the Corporation's monthly dividend. The monthly dividend will increase to Canadian 1.166667 cents from 1 cent and on an annual basis to Canadian 14 cents from 12 cents per common share starting in January 2024. This announcement marks Dynacor's 5th dividend increase since the Corporation paid its first dividend to shareholders in October 2018.
This decision follows the publication of our strong Q3-2023 financial results, which showcased a sales increase of 37.8% and a net income boost of 212.5%, surpassing all expectations. Our EPS was US$0.07, with an impressive revenue of US$63.4M. We also reported record gold production exceeding 34,000 AuEq ounces.
Our robust cash from operating activities before change in working capital items of US$3.9 million (US$0.10 per share), as evidenced by these stellar results, has given us the financial flexibility to return more cash to our shareholders. This dividend increase underscores our confidence in the company's growth prospects and stability.
We remain committed to rewarding our shareholders through consistent dividend increases and stock buybacks (137,000 shares repurchased in Q3) as we continue our growth trajectory.
The Corporation's monthly dividend qualifies as an "eligible dividend" for Canadian income tax purposes. The payment and increase of dividends are at the discretion of the Board and will depend on the Corporation's financial results, cash requirements, prospects and other factors deemed relevant by the Board.
Dynacor is a dividend-paying industrial gold ore processor headquartered in Montreal, Canada. The corporation is engaged in gold production through the processing of ore purchased from the ASM (artisanal and small-scale mining) industry. At present, Dynacor operates in Peru, where its management and processing teams have decades of experience working with ASM miners. It also owns a gold exploration property (Tumipampa) in the Apurimac department.
The corporation intends to expand its processing operations in other jurisdictions as well.
Dynacor produces environmentally and socially responsible gold through its PX IMPACT® gold program. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors pay a small premium to our customer and strategic partner for this PX IMPACT® gold. The premium provides direct investment to develop health and education projects for our artisanal and small-scale miner's communities.
Dynacor is listed on the Toronto Stock Exchange (DNG).
Certain statements in the preceding may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.
Shares Outstanding: 38,168,748
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We remain committed to rewarding our shareholders through consistent dividend increases and stock buybacks as we continue our growth trajectory.
For more information, please contact:
Director, Shareholder Relations
Dynacor Group Inc.
T: 514-393-9000 #230