Dynacor Conference Call (Part 3 of 5)

Screen Shot 2016-06-10 at 8.37.57 AM
Two new 150 tpd ball mills at Veta Dorada 

Stakeholder: How long will the price war last?

Dynacor: We have been through these pricing situations many times before. We would expect this not to last long given our clear-cut advantages. If the price war occurs, it could possibly stretch out to a couple months.

Our expectations are that by the second quarter of operation at Veta Dorada any pricing and operational transfer matters will be behind us. Therefore production together with margins should noticeably increase in the second quarter of Chala’s operation.

Stakeholder: Is there a long learning curve in operating the new Veta Dorada mill?

Dynacor: No. The new mill is the exact same process as the old mill. In fact while waiting for our final permit, we are taking advantage of the time by working out any start up issues. We have already started the pre commissioning phase and will shortly release a series of videos displaying the process testing. We have had a team of operators over the last month checking everything over. Firstly, the mill runs without any rock. Secondly, this week we will check the operating process with rock and water. Upon receipt of the final operating permit, which we expect this summer, the new mill will have been thoroughly tested many times and fully operational. This will enable us to have a very smooth start up.

Stakeholder: Can we expect to see profit margins increase immediately?

Dynacor: Not quite immediate as the plan is to start initially running ore through at a rate of 200 and 225 tpd while closely monitoring everything before moving beyond to full capacity. Due to this start up process, we should not expect to see the new and higher profit margins until the end of the first quarter of Veta Dorada’s operation.

Stakeholder: What about silver sales and especially the drop in the last quarter?

Dynacor: Due to the addition of our new buyer from Europe, there was a delay in the silver transactions during the first quarter. Much of what was produced during the quarter was sold in April and therefore will be part of the second quarter sales. The lower silver sales in the first quarter also lowered our profit by a bit. Still, the silver we receive is a by-product meaning we do not have any control over the amount of silver production. It is an extra bonus that comes with each delivery. We purchase the ore for its gold content. However, when our production and net profits increase, silver will start to play a larger role in our bottom line.

Stakeholder: What are the next steps?
Stay tuned for part 4 of 5…


Published by


Please note that when you enter this blog directly or indirectly that you do so at your own risk. This blog may contain certain forward-looking statements and information. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Readers should not place undue reliance on forward-looking statements or information included herein. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. This cautionary statement qualifies all forward-looking statements and information made available via this blog. Dynacor Gold Mines does not accept or assume any responsibility or liability whatsoever for, the data protection policy, the content, the data or the technical operation of the blog and/or any linked websites. Further, you acknowledge and agree that you assume all risks resulting from entering and/or using the blog and/or any linked websites. By entering the blog, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against Dynacor Gold Mines, and release, discharge, indemnify and hold harmless Dynacor Gold Mines, its officers, employees, directors and agents from any and all liability including but not limited to liability for loss, damages, expenses and costs arising out of or in connection with entering and/or using the blog and/or any linked websites and any data and/or content contained therein. Such waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s