TORONTO, May 13, 2024 (GLOBE NEWSWIRE) — Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) today announced its financial results for the three months ended March 31, 2024. All currency amounts in this press release are in Canadian dollars, except as otherwise indicated.
FIRST QUARTER 2024 RESULTS
- Reported net income from portfolio investments for the first quarter of 2024 of $12.6 million (2023 – loss of $7.5 million). The key driver of performance during the quarter was an $8.4 million market appreciation in the Corporation’s investment in Reunion Gold Corporation (“Reunion”). Subsequent to March 31, 2024, Reunion Gold Corporation and G Mining Ventures Corp. announced they have entered into a definitive agreement to combine the two companies. Reunion shareholders will receive estimated share consideration valued at $0.65 per Reunion common share plus shares of a newly-created gold explorer (“SpinCo”). This represents a premium of 29% based on G Mining’s and Reunion’s closing price and 10-day VWAP on the Toronto Stock Exchange and TSX Venture Exchange as at April 19, 2024, respectively, without accounting for value of SpinCo. The Corporation held 183.3 million common shares of Reunion, representing a 15% interest in Reunion.
- Reported consolidated general and administrative expenses for the first quarter of $4.1 million (2023 – $4.8 million), representing a 15% year-over-year decline as Dundee sustains momentum with cost-cutting initiatives into 2024.
- Reported net earnings attributable to owners of the Corporation for the first quarter of 2024 of $7.2 million (2023 – loss of $11.4 million), or earnings of $0.07 per share (2023 – loss of $0.14 per share).
Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation, commented:
“Dundee is pleased to report a return to profit in the first quarter of 2024, driven by strong investment performance amidst record gold prices and continued progress on cost reduction efforts. We anticipate more opportunities ahead as the market, in our view, continues to overlook the significant value of companies engaged in the discovery and development of high-quality precious metals, as well as base metals, and strategic resources. We see substantial opportunities in the sector given the disconnect between metals prices and mining stocks. We remain focused on investing in top quality projects for the long-term while working with our investee companies as advisors and partners to maximize asset value and realize their full potential.”
“Subsequent to March 31, 2024, we were pleased to announce our support of a transaction with an implied premium of 29% for our top investment holding, Reunion Gold Corporation. This transaction delivers significant current value to our shareholders as well as a compelling future re-rating opportunity driven by multiple near-term catalysts. The value of Dundee’s holding in Reunion approaches our current market capitalization, presenting a compelling investment opportunity in the stock.”
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.”
SEGMENTED FINANCIAL RESULTS
Mining Investments
In the first quarter of 2024, the Corporation reported net earnings from the mining investments segment of $9.3 million (2023 – loss of $9.7 million). Performance from the mining portfolio investments generated income of $9.7 million (2023 – loss of $8.7 million), which is included in net earnings or loss from this segment. The key driver of performance during the current quarter was an $8.4 million market appreciation in the Corporation’s investment in Reunion Gold Corporation.
The share of losses from equity accounted mining investments during the first quarter of 2024 was $0.5 million (2023 – $1.0 million).
Mining Services
During the three months ended March 31, 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 $1.2 million (2023 – $1.3 million). During the quarter, Dundee Technologies continued with the construction of a pilot plant at its Thetford Mines facilities, for the electronic waste recovery project with Enim Technologies Inc.
Corporate and others
The Corporation reported a pre-tax loss from the corporate and others segment, including non-core subsidiaries, of $0.4 million (2023 – $3.3 million) during the three months ended March 31, 2024.
The fair value of portfolio investments in the corporate and others segment increased by $2.8 million during the first quarter of the current year (2023 – $1.2 million).
The segment’s equity accounted investments reported its share of pre-tax income of $0.1 million (2023 – loss of $0.9 million), while the segment’s subsidiaries reported a pre-tax loss of $0.6 million (2023 – $1.3 million).
| SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS* | |||||||
| Carrying value as at | March 31, 2024 | December 31, 2023 | |||||
| Mining Investments | |||||||
| Portfolio investments | $ | 133,758 | $ | 126,671 | |||
| Equity accounted investments | 15,273 | 15,731 | |||||
| Royalty | 18,921 | 18,921 | |||||
| 167,952 | 161,323 | ||||||
| Mining Services | |||||||
| Subsidiaries | 2,421 | 2,439 | |||||
| Equity accounted investment | – | 98 | |||||
| 2,421 | 2,537 | ||||||
| Corporate and Others | |||||||
| Corporate | 16,996 | 18,342 | |||||
| Portfolio investments ‒ other | 71,310 | 68,482 | |||||
| Equity accounted investments ‒ other | 29,222 | 28,874 | |||||
| Real estate joint ventures | 3,034 | 2,852 | |||||
| Subsidiaries | |||||||
| Continuing operations | 6,029 | 7,738 | |||||
| Held-for-sale | 340 | – | |||||
| 126,931 | 126,288 | ||||||
| SHAREHOLDERS’ EQUITY | $ | 297,304 | $ | 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 | $ | 251,604 | $ | 244,356 | |||
| Number of shares of the Corporation issued and outstanding: | |||||||
| Class A Subordinate Shares | 85,711,707 | 85,832,805 | |||||
| Class B Shares | 3,114,491 | 3,114,491 | |||||
| Total number of shares issued and outstanding | 88,826,198 | 88,947,296 | |||||
| SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS | $ | 2.83 | $ | 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. |
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The Corporation’s unaudited interim consolidated financial statements as at and for three months ended March 31, 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
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