Dynasty Reports Financial Results for the Three Months Ended March 31, 2013
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/15/13 -- Dynasty Metals & Mining Inc. ("Dynasty" or the "Company") (TSX: DMM)(OTCQX: DMMIF) announces that it has released its condensed interim consolidated financial statements for the three months ended March 31, 2013. 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 months ended March 31, 2013 and the related notes thereto and the Company's management's discussion and analysis, 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.
The following tables show selected consolidated financial information as at and for the three months ended March 31, 2013.
Consolidated Statements of Financial Position, as at:
March 31 December 31
(Unaudited) 2013 2012
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ASSETS
Current assets
Cash $ 160,986 $ 433,364
Receivables 58,216 54,021
Prepaid expenses 899,687 805,202
Inventory 3,309,890 3,064,284
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4,428,779 4,356,871
Advances and deposits 135,964 86,764
Mine properties, plant and equipment 54,928,654 55,564,745
Exploration and evaluation properties 13,886,772 12,836,750
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$ 73,380,169 $ 72,845,130
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 6,974,162 $ 6,453,096
Short term loans 1,843,694 600,000
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8,817,856 7,053,096
Provision for closure and restoration 1,693,637 1,676,998
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10,511,493 8,730,094
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Shareholders' equity
Capital stock 89,059,365 89,059,365
Contributed surplus 13,450,117 13,483,319
Deficit (39,730,806) (38,427,648)
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62,868,676 64,115,036
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$ 73,380,169 $ 72,845,130
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Condensed Interim Consolidated Statements of Loss and Comprehensive Loss:
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For the three For the three
Months Ended Months Ended
March 31 March 31
(Unaudited) 2013 2012
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EXPENSES
Administrative salaries and benefits $ 248,955 $ 242,555
Amortization and accretion 92,876 163,637
Bank interest and fees 24,777 42,656
Insurance 66,270 47,078
Management fees 71,195 73,415
Office and general 235,775 233,400
Professional fees 296,403 418,274
Rent, utilities and maintenance 66,345 26,218
Shareholder communication 19,851 31,541
Stock-based compensation 56,798 435,380
Transfer agent and filing fees 48,224 36,811
Travel and entertainment 75,689 88,640
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(1,303,158) (1,889,605)
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Loss and comprehensive loss for the
period (1,303,158) (1,889,605)
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Troy ounces of gold sold 4,922 4,575
Troy ounces of silver sold 16,030 7,129
Total Sales(a) $ 8,472,082 $ 7,894,197
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(a) - Since operations at the Company's Zaruma Gold Project are in the pre-
commercial phase, the proceeds from the sale of precious metals, net of
production expenses and taxes, are credited to mine development costs and
not recorded in the Company's consolidated statements of operations as
permitted under International Financial Reporting Standards.
Production and Sales
For the three months ended March 31, 2013, the Company received proceeds of $8.5 million from the sale of approximately 5,000 ounces of processed gold and 16,000 ounces of processed silver derived from intermittent operations at its processing plant in Zaruma during the continued development of the Zaruma mines.
Subsequent to March 31, 2013, and up to the date of this news release, the Company exported approximately 3,350 ounces of gold and 7,500 ounces of silver with an aggregate approximate value of $5.0 million.
Mining
The Company continues to concentrate development activities on the main mine "Cabo de Hornos" which provides the best access to the in situ resource. To date, a significant amount of the material mined has come from old workings, generally not included in the Company's resource estimate, using hand held drilling and trackless mining methods. The Company is currently mining and delivering to the plant an average of approximately 450 tonnes of resource and non-resource material of varying grades per day.
During the three months ended March 31, 2013 the Company successfully dewatered the decline at "Cabo de Hornos" to the current mine level and was able to recommence the decline development in this area. The Company expects to be required to continue dewatering as the decline progress downwards, however the volume of water is expected to be less as the Company moves beneath the abandoned mine workings.
The advance of the declines in the current year has allowed the Company to start accessing and mining higher grade areas contained in the Company's resource, particularly the Matalanga vein resulting in an increase in the average grade of the material mined and delivered to the plant, compared to the second half of last year. The Company expects to gain access to additional higher grade veins, contained in the resource, as the declines continue to be developed during the current year, which is expected to result in increased mine production. This outlook is based on current operations, mine plans and exploration results, which are subject to change and cannot be assured (see "Critical Risk Factors" of the Company's Management's Discussion and Analysis, dated March 27, 2013, which is available at www.sedar.com).
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 has the intermittent production at its developing Zaruma Gold Project, the advanced-stage Jerusalem Project, and a highly prospective exploration project, the Dynasty Copper-Gold Belt, which includes the advanced-stage Dynasty Goldfield.
For further information regarding the Company's Zaruma project readers should refer to the Company's Independent Technical Report entitled "Independent Preliminary Assessment - Zaruma Project - El Oro Province" dated August 21, 2006, available on SEDAR at www.sedar.com.
Luis Bravo, a member of AUSIMM (Australian Institute of Mining and Metallurgy) and a "qualified person" within the definition of that term in the National Instrument 43-101, has supervised the preparation of 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, including, without limitation, statements regarding Dynasty's future plans and expectations relating to the Cabo de Hornos mine including accessing higher grades of precious metals as the Company advances through declines. 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, that the Company will have access to capital if required, that all necessary approvals and arrangements will be obtained 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. Often, but not always, forward-looking information can be identified by the use of forward-looking words such as "plans", "expects", "estimates", "forecasts", "projects", "intends", "anticipates" 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 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 Dynasty's mines and declines, (ii) uncertainties relating to our mineral resource estimates (iii) risks related to availability of capital on satisfactory terms, (iv) risks related to being an early stage producer; (ii) 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; (v) that Dynasty will be unable to successfully negotiate agreements with the holders of surface rights on areas covered by Dynasty's project concessions; (vi) 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; (vii) risks related to governmental regulations, including taxation statutes; (viii) risks related to Dynasty's primary properties being located in Ecuador, including political, economic, and regulatory instability; (ix) uncertainty in Dynasty's ability to obtain and maintain certain permits necessary to the Company's current and anticipated operations and other risks disclosed in Dynasty's Annual Information Form for the year ended December 31, 2012 and other public filings, which is available on the System for Electronic Document Analysis and Retrieval (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 information, whether as a result of new information, future events or otherwise.
Contacts:
Dynasty Metals & Mining Inc.
Murray Oliver
Toll Free: 1 888-735-3881 (North America only)
(604) 687-7810
info@dynastymining.com
www.dynastymining.com
Brisco Capital Partners Corp.
Scott Koyich
(403) 262-9888
Scott@briscocapital.com
