Dundee Corporation Announces First Quarter 2020 Financial Results

TORONTO, May 12, 2020 (GLOBE NEWSWIRE) — Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) today announced its financial results for the three months ended March 31, 2020.

During the first quarter of 2020, the Corporation recognized a net loss attributable to owners of the Corporation of $166.4 million, or a loss of $1.63 per share. This compares with earnings attributable to owners of the Corporation of $14.9 million in the same period of 2019, representing earnings of $0.21 per share, before the effect of any dilutive securities.

The Corporation’s 84% owned subsidiary, United Hydrocarbon International Corp. (“UHIC”), reported a pre-tax loss of $117.5 million (2019 – earnings of $6.0 million) for the first three months of 2020, mostly relating to the depreciation in the fair value change of the royalty interest and its associated contingent bonus payments.

Operating results during the first quarter of 2020 also reflect a $61.1 million market depreciation (2019 – market appreciation of $30.1 million) in certain of the Corporation’s investments that are carried in the consolidated financial statements at FVTPL.

“During the first quarter we took steps to shield our operations from the impact of COVID-19 but our portfolio was not immune from the unprecedented global demand shock and steep reduction in oil prices. As a result, we took a significant write-down in our investment in UHIC,” said Jonathan Goodman, Chairman and CEO.

“Subsequent to quarter end, we took steps to crystalize the significant increase in value realized by Dundee Precious Metals Inc. (“Dundee Precious”) in the last 18 months. By monetizing a large portion of our holdings in Dundee Precious, we generated cash to improve our liquidity and ongoing efforts to streamline our capital structure, while providing us with capital to support our strategic focus on the junior mining sector,” added Mr. Goodman.

COVID-19 UPDATE
One of the Corporation’s top priorities during the COVID-19 pandemic is the health and well-being of its employees. To that end, the Corporation implemented its business continuity plan in early March in order to maintain business operations during this tumultuous period in both the stock markets and greater society. As a result, all head office employees continue working from home and are expected to do so for the foreseeable future, limiting their personal risks and helping ensure their safety. The Corporation is monitoring information from local health authorities and all levels of government on a daily basis.