“Dundee is pleased to announce a strong and transformative quarter,
marked by broad positive performance in our core investment
portfolio and key initiatives that further align our capital
structure with our long-term growth objectives." said Jonathan
Goodman, President and Chief Executive Officer of Dundee
Corporation. “During the quarter, we sold 11 million shares of our
position in G Mining Ventures Corp. for proceeds of $95.9 million,
which was partially used to redeem both classes of our preferred
shares and substantially pay down our outstanding loan balance. The
redemption of the preferred shares is a significant milestone,
enhancing our financial flexibility and positioning the company for
continued, sustainable growth for the long-term. In addition, we
backstopped an $8.0 million rights offering for Maritime Resources
Corp. to support the company’s strategic plan to substantially
derisk the restart of the Hammerdown Mine and, in the process,
increased our ownership interest in the company to 43% on an
undiluted basis. Furthermore, we have continued to make
progress on divesting our non-core assets with the sale of our
flow-through funds. This will further streamline our operations
and, importantly, allow us to place even greater focus on executing
our core strategy."
“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. Given the opportunity set we are seeing,
while we have more ideas than capital, we remain very focused on
our core asset base. 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, 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 THIRD QUARTER AND FIRST NINE
MONTHS OF 2024 RESULTS
- In August 2024, the Corporation
sold 11,000,000 shares of G Mining Ventures Corp. (“GMIN”) for net
proceeds to the Corporation of $95.9 million. The Corporation
continues to hold 2,919,921 shares of GMIN.
- Upon the sale of GMIN, the
Corporation partially repaid $14.0 million of its outstanding loan
with Earlston Investments Corp.
- In September 2024, the Corporation
paid an aggregate of $46.7 million to exercise its option to redeem
all its outstanding Preference Shares Series 2 and Preference
Shares Series 3 at a price of $25.00 per share and pay the final
associated dividends, saving the Corporation approximately over
$4.0 million per annum in dividend and associated tax
payments.
- In September 2024, Dundee
backstopped an $8.0 million rights offering for Maritime Resources
Corp. (“Maritime”) and made purchases pursuant to private
agreements to acquire approximately 253.0 million common shares of
the company and increase our undiluted ownership interest to 43%.
The Corporation earned 33.2 million compensation warrants for
backstopping the rights offering.
- Reported net income from portfolio
investments for the third quarter of 2024 of $10.1 million (2023 –
loss of $24.7 million). The key drivers of performance during the
quarter included a $5.8 million market appreciation in the
Corporation’s investment in Ausgold Limited (“Ausgold”), a $4.9
million investment gain in Saturn Metals Limited (“Saturn”) and a
$4.6 million investment gain in Greenheart Gold Inc.
(“Greenheart”). For the nine months ended September
30, 2024, the Corporation reported net income from portfolio
investments of $68.0 million (2023 – loss of $22.2 million). The
top performer of 2024 was the $53.6 million fair value gain in
Reunion Gold Corporation.
- On October 7, 2024, the Corporation
announced the completion of the sale of 8,000 shares of TauRx to a
private investor at a price of US$125.00 per share for proceeds of
US$1.0 million (Cdn$1.4 million).
- Reported consolidated general and
administrative expenses for the third quarter of $4.3 million (2023
– $4.6 million). Excluding share-based compensation of $0.8 million
(2023 – $0.5 million), consolidated general and administrative
expenses declined 16% year-over-year. For the nine months ended
September 30, 2024, the Corporation reported consolidated general
and administrative expenses of $12.5 million (2023 – $13.6
million).
- Reported net earnings attributable
to owners of the Corporation for the third quarter of 2024 of $7.3
million (2023 – loss of $26.5 million), or earnings of $0.07 per
share (2023 – a loss of $0.31 per share). For the nine months ended
September 30, 2024, the Corporation reported net earnings
attributable to owners of the Corporation of $67.3 million (2023 –
loss of $36.0 million), or earnings of $0.73 per share (2023 – a
loss of $0.43 per share).
SEGMENTED FINANCIAL RESULTS
Mining Investments
In the third quarter of 2024, the Corporation
reported net earnings before taxes from the mining investments
segment of $10.4 million (2023 – loss of $23.3 million).
Performance from the mining portfolio investments generated income
of $9.0 million (2023 – loss of $25.6 million), which is included
in net earnings or loss from this segment. Notable performers
during the quarter include gains of $5.8 million in Ausgold, $4.9
million in Saturn and $4.6 million in Greenheart, respectively,
offset by a $9.8 million loss in GMIN. The share of income from
equity accounted mining investments during the third quarter of
2024 was $0.7 million (2023 – $3,000).
During the first nine months of 2024, the
Corporation reported net earnings before taxes from the mining
investments segment of $65.8 million (2023 – loss of $22.4
million). Performance from the mining investments portfolio
contributed $65.1 million (2023 – loss of $22.7 million) to net
earnings or loss before taxes in this segment. The key driver of
performance during this period was a $53.6 million market
appreciation in the Corporation’s investment in Reunion Gold
Corporation. The share of loss from equity accounting mining
investments during the first nine months 2024 was $0.1 million
(2023 – $1.9 million).
Corporate and others
The Corporation reported pre-tax losses from the
corporate and others segment, including non-core subsidiaries, of
$2.0 million (2023 – $3.5 million) during the three months ended
September 30, 2024. During the first nine months of 2024, the
corporate and others segment reported pre-tax earnings of $6.0
million (2023 – loss of $11.7 million).
The fair value of non-mining portfolio
investments in the corporate and others segment increased by $1.2
million (2023 – $0.9 million) during the third quarter of the
current year. The fair value of portfolio investments in this
segment increased by $2.8 million (2023 – $0.5 million) during the
first nine months of 2024.
In the third quarter, the segment’s non-mining
equity accounted investments reported pre-tax earnings of $0.7
million (2023 – loss of $0.6 million). During the same period, the
segment’s subsidiaries reported pre-tax losses of $0.4 million
(2023 – $1.1 million). During the first nine months of 2024, the
segment’s non-mining equity accounted investments and subsidiaries
reported pre-tax losses of $0.4 million (2023 – $2.1 million) and
$1.2 million (2023 – $3.1 million), respectively.
Mining Services
During the three months ended September 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 $0.8 million (2023 –
$0.6 million). During the first nine months of 2024, Dundee
Technologies incurred a pre-tax loss of $3.4 million (2023 – $3.1
million).
SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS
|
|
|
|
|
|
Carrying value as at |
September 30, 2024 |
|
December 31, 2023 |
|
Mining Investments |
|
|
|
|
Portfolio investments |
$ |
96,530 |
|
$ |
126,671 |
|
|
Equity accounted investments |
|
27,262 |
|
|
15,731 |
|
|
Royalty |
|
18,921 |
|
|
18,921 |
|
|
|
|
|
142,713 |
|
|
161,323 |
|
|
Corporate and Others |
|
|
|
|
Corporate |
|
39,418 |
|
|
18,342 |
|
|
Portfolio investments ‒ other |
|
71,311 |
|
|
68,482 |
|
|
Equity accounted investments ‒ other |
|
26,921 |
|
|
28,874 |
|
|
Real estate joint ventures |
|
2,977 |
|
|
2,852 |
|
|
Subsidiaries |
|
4,862 |
|
|
7,738 |
|
|
|
|
|
145,489 |
|
|
126,288 |
|
|
Mining Services |
|
|
|
|
Subsidiaries |
|
3,036 |
|
|
2,439 |
|
|
Equity accounted investment |
|
- |
|
|
98 |
|
|
|
|
|
3,036 |
|
|
2,537 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
$ |
291,238 |
|
$ |
290,148 |
|
|
Less: Shareholders' equity attributable to holders of: |
|
|
|
|
|
Preference Shares, series 2 |
|
- |
|
|
(27,667 |
) |
|
|
Preference Shares, series 3 |
|
- |
|
|
(18,125 |
) |
|
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO CLASS A SUBORDINATE
SHARES AND CLASS B SHARES OF THE CORPORATION |
$ |
291,238 |
|
$ |
244,356 |
|
|
|
|
|
|
|
|
Number of shares of the Corporation issued and outstanding: |
|
|
|
|
|
Class A Subordinate Shares |
|
86,279,255 |
|
|
85,832,805 |
|
|
|
Class B Shares |
|
3,114,491 |
|
|
3,114,491 |
|
|
Total number of shares issued and outstanding |
|
89,393,746 |
|
|
88,947,296 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY ON A PER SHARE BASIS * |
$ |
3.26 |
|
$ |
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 nine months ended
September 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 RelationsT: (416) 864-3584E:
ir@dundeecorporation.com
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