dynacor gold mines inc (DNG) Snapshot

Dynacor Gold Mines Inc. announce it has begun the first preparative steps in view of the construction of its new 300 tpd plant at Chala, in southern Peru. Upon receipt of the final construction permit from the Ministry of Energy and Mines, Dynacor will begin the construction of this new plant. The plant is expected to be commissioned eight months thereafter. Pre-construction activities includes: As of April 15th 2013, Dynacor has begun preparing the 100 hectare site for the construction of its ore-processing plant. The following activities are now underway: Water storage tanks and pumping systems are being installed to pump water from the company's water wells which are situated at a distance of about 6 km from the plant site; A perimeter security fence is being built as well as access gates; Housing facilities for the company's employees and for the construction crews are being built; Dynacor signed an agreement with the municipality of Chala to assist in the construction of a 10 km road that will connect Old Chala to New Chala. This road will pass directly in front of the company's Chala ore-processing plant. The new 300 tpd mill will require two 2100 x 2400 ball mills. A first one has been purchased and shipped to Lima; the second one has been ordered and is being built. Heavy construction equipment has also been ordered.

Dynacor Gold Mines Inc. announced that its annual and special meeting of the shareholders will be hled on June 12, 2013, to ratify, confirm and approve the corporation's new by-law No. 2013-01 regarding the advance notice.

Dynacor Gold Mines Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported sales of $33,342,000 compared to $23,644,000 a year ago. Operating income was $4,286,000 compared to $2,606,000 a year ago. Net income was $2,978,000 or $0.08 per basic and diluted share, compared to $1,732,000 or $0.05 per basic and diluted share, a year ago. EBITDA was $4,617,000 compared to $2,885,000 a year ago. Adjusted EBITDA was $4,617,000 compared to $2,885,000 a year ago. Cash flow from operating activities was $3,840,000 compared to $1,071,000 a year ago. During the period, the company invested $0.3 million compared to $0.4 million in first quarter 2012 in the acquisition of property, plant and equipment to be used at the current plant and for the land site preparation for the construction of the new plant at Chala. Additions to exploration and evaluation assets amounted to $0.5 million in first quarter 2013 compared to $0.1 million in first quarter 2012. The increase is explained by the ongoing exploration program which includes the surface drilling and the cross-cut in the gold veins. During first quarter 2013, the company achieved an historical quarterly best production of 20,027 ounces of gold an increase of 7.7% from the previous quarter and of 52.8% over the first quarter 2012 production of 13,111 ounces. Furthermore, the production growth trend continued as the company generated a record-breaking month in March, producing 7,119 ounces. The increase in production compared to first quarter 2012 is due to higher than expected ore grades which was supplied at the company's Huanca (Acari) processing plant during the period. During the period, the company's plant operated at its full capacity of 220 tpd processing 18,677 DMT of ore compared to 17,558 in first quarter 2012.