Vancouver, British Columbia--(Newsfile Corp. - October 21, 2021) - Montreal-based Dynacor Gold Mines (TSX: DNG) (OTC Pink: DNGDF), a dividend-paying industrial gold ore processor, reported its second consecutive monthly record for gold sales. Unaudited sales of gold for the month of September 2021 came in at US$25.8 million or approximately CDN$32.7 million. This is an increase of US$5.7 million or 28% over the August gold sales and an increase of US$14.8 million or 135% over the September 2020 gold sales.
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Third quarter sales amounted to US$61.9 million or CDN$78.0 million, compared to US$24.1 million or CDN$32.0 million for the third quarter in 2020. Total sales to date in 2021 have reached US$145.6 million compared to US$63.0 million for the first three quarters of 2020. The September 2021 sales included US$2.9 million pertaining to the export of a partial release of the gold bars previously retained by customs, which followed the return of two gold bars in July.
In 2019, in an effort to stop the exportation of illegally mined gold, Peruvian authorities seized a large quantity of gold, from at least three gold exporting companies, subject to submitting supporting documents relating to the gold production. It is essential to note that Dynacor, a significant processor of gold ore, was not a target of this investigation, and that Dynacor currently purchases ore from more than 600 registered artisanal miners and the small-scale mining industry or "ASMs".
The new monthly all-time high in sales is due to the continuous processing at the full 430 tonnes per day capacity at the recently expanded Veta Dorada plant along with a healthy gold market price, with the company receiving an average selling price of US$1,767 per ounce of gold in September. The Veta Dorada plant is strategically located fifteen minutes off the Pan American Highway near Chala in southern Peru.
In September, the company announced revised financial guidance with projected sales of between US185 and US$190 million for 2021, assuming the average price for gold remains around US$1,785 per ounce, and the company continues to receive a consistent average grade of ore. It also assumes a stable exchange rate between the Peruvian sol, and the US and Canadian dollars, with the US/Canadian exchange rate averaging US$1:00 to CDN$1:25.
Dynacor, a founding partner in the PX IMPACT® gold program, produces environmental and socially responsive gold. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors pay a small premium for this gold which provides direct investment to develop health and education projects for the artisanal and small-scale miner's communities.
With decades of experience in Peru, consistently operating and exporting gold since 1998, the company intends to expand its processing operations to other jurisdictions. The company also owns the advanced stage Tumipampa gold exploration property in south central Peru's Apurimac department.
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