Bay Street News

Dundee Corporation Delivers Exceptional Q2 Results and a Major Portfolio Transaction Demonstrating Great Success in Its Core Strategy

TORONTO, Aug. 13, 2024 (GLOBE NEWSWIRE) — “Dundee is pleased to announce an outstanding quarter, as well as a transaction for our largest investment, Reunion Gold, marking a strong first half of 2024,” said Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation. “The transaction with G Mining Ventures Corp. delivered significant value to our shareholders, as well as a compelling future re-rating opportunity driven by multiple near-term catalysts. Today, Dundee announced the sale of a significant portion of our investment in G Mining Ventures Corp. A portion of the proceeds will be used to satisfy the mandatory prepayment requirement of the loan with Earlston Investments Corp. (“Earlston”), in accordance with the terms of our loan agreement. The combined value of Dundee’s remaining holding in G Mining Ventures Corp. and proceeds from today’s sale transaction exceeds our current market capitalization, presenting a compelling investment opportunity in our stock. We would like to thank Earlston for their support which has been instrumental in driving the Corporation’s success.”

“Our success in the current quarter underscores the strength of our core strategy, driven by strong investment performance amidst record gold prices and continued progress on cost reduction efforts. We foresee numerous opportunities on the horizon, as the market, in our opinion, continues to undervalue companies engaged in the discovery and development of high-quality precious metals, as well as base metals, and strategic resources. We see a compelling value proposition in the disconnect between metals prices and mining stocks, as well as future projected shortages in key metals needed to build tomorrow’s ambitious infrastructure projects. We are committed to long-term investments in high-quality projects, acting as advisors and partners to our investee companies to maximize asset value and achieve their full potential.”

Mr. Goodman concluded: “The entire team at Dundee continues to work diligently to implement and execute our strategy across all fronts. I am encouraged by our ability to sustain and grow our momentum in 2024 as we look forward to the opportunities ahead of us. Our team remains committed to growing the core business, streamlining operations, divesting our remaining non-core businesses and investments, and positioning Dundee to deliver long-term, sustainable value for our stakeholders, shareholders and partners. I would like to thank the entire team for their hard work in navigating a time of continued evolution.”

SOLID SECOND QUARTER AND FIRST HALF 2024 RESULTS

SEGMENTED FINANCIAL RESULTS  

Mining Investments

In the second quarter of 2024, the Corporation reported net earnings from the mining investments segment of $46.1 million (2023 – $10.6 million). Performance from the mining portfolio investments generated income of $46.4 million (2023 – $11.5 million), which is included in net earnings from this segment. The key driver of performance during the current quarter was a $44.6 million market appreciation in the Corporation’s investment in Reunion Gold Corporation. The share of losses from equity accounted mining investments during the second quarter of 2024 was $0.3 million (2023 – $0.9 million).

During the first six months of 2024, the Corporation reported net earnings before taxes from the mining investments segment of $55.4 million (2023 – $0.9 million). Performance from the mining investments portfolio contributed $56.2 million (2023 – $2.9 million) to net earnings before taxes in this segment. The share of loss from equity accounting mining investments during the first half of 2024 was $0.8 million (2023 – $1.9 million).

Corporate and others

The Corporation reported pre-tax earnings from the corporate and others segment, including non-core subsidiaries, of $8.4 million (2023 – loss of $5.0 million) during the three months ended June 30, 2024. The segment benefitted from a $13.4 million gain associated with the disposal of its 84%-owned subsidiary, United Hydrocarbon International Corp., for nominal consideration. The gain was the result of a transfer from accumulated other comprehensive income to net earnings and had no impact on shareholders’ equity. During the first half of 2024, the corporate and others segment reported pre-tax earnings of $8.0 million (2023 – loss of $8.3 million).

The fair value of portfolio investments in the corporate and others segment decreased by $1.2 million (2023 – $1.5 million) during the second quarter of the current year. The fair value of portfolio investments in this segment increased by $1.7 million (2023 – decreased by $0.3 million) during the first half of 2024.

In the second quarter, the segment’s equity accounted investments and subsidiaries reported pre-tax losses of $1.2 million (2023 – $0.6 million) and $0.1 million (2023 – $0.7 million), respectively. During the first half of 2024, the segment’s equity accounted investments and subsidiaries reported pre-tax losses of $1.1 million (2023 – $1.5 million) and $0.8 million (2023 – $2.0 million), respectively.

Mining Services

During the three months ended June 30, 2024, the mining services segment, comprised of the Corporation’s 78%-owned subsidiary, Dundee Sustainable Technologies Inc. (“Dundee Technologies”), reported a pre-tax loss of $1.3 million (2023 – $1.2 million). During the first half of 2024, Dundee Technologies incurred a pre-tax loss of $2.5 million (2023 – $2.4 million).

SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS  
           
Carrying value as at June 30, 2024   December 31, 2023  
Mining Investments        
Portfolio investments   $ 176,493     $ 126,671    
Equity accounted investments     14,957       15,731    
Royalty     18,921       18,921    
        210,371       161,323    
Corporate and Others        
Corporate     16,761       18,342    
Portfolio investments ‒ other     70,152       68,482    
Equity accounted investments ‒ other     27,122       28,874    
Real estate joint ventures     2,896       2,852    
Subsidiaries     5,838       7,738    
        122,769       126,288    
Mining Services        
Subsidiaries     2,761       2,439    
Equity accounted investment           98    
        2,761       2,537    
           
SHAREHOLDERS’ EQUITY   $ 335,901     $ 290,148    
Less: Shareholders’ equity attributable to holders of:        
   Preference Shares, series 2     (27,575 )     (27,667 )  
   Preference Shares, series 3     (18,125 )     (18,125 )  
SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO CLASS A SUBORDINATE SHARES AND CLASS B SHARES OF THE CORPORATION   $ 290,201     $ 244,356    
           
Number of shares of the Corporation issued and outstanding:        
  Class A Subordinate Shares     86,198,534       85,832,805    
  Class B Shares     3,114,491       3,114,491    
Total number of shares issued and outstanding     89,313,025       88,947,296    
           
SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS *   $ 3.25     $ 2.75    

*  Shareholders’ Equity on a per share basis is calculated as total shareholders’ equity per the financial statements, less the carrying amount of Preference shares, series 2 and series 3, and divided by the total number of Class A and Class B shares issued and outstanding.

The Corporation’s unaudited interim consolidated financial statements as at and for three and six months ended June 30, 2024 and 2023, along with the accompanying management’s discussion and analysis, have been filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) and may be viewed by interested parties under the Corporation’s profile at www.sedarplus.ca or the Corporation’s website at www.dundeecorporation.com.

ABOUT DUNDEE CORPORATION:

Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.

FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Dundee Corporation’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee Corporation’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Annual Information Form of Dundee Corporation and subsequent filings made with securities commissions in Canada. Dundee Corporation does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Investor and Media Relations
T: (416) 864-3584
E: ir@dundeecorporation.com


Bay Street News