Dundee Corporation Announces Third Quarter 2022 Financial Results and Returns to Profit Through Successful Investments

Toronto, Ontario, CANADA


TORONTO, Nov. 11, 2022 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) today announced its financial results for the three and nine months ended September 30, 2022. All currency amounts in this press release are in Canadian dollars except as otherwise indicated.

THIRD QUARTER 2022 RESULTS

  • Closed privatization transaction of Big River Gold Limited with Aura Minerals Inc. (“Aura”) to develop and participate in future cash flows from the Borborema Mine.

  • Reported net income from investments for the third quarter of 2022 of $20.0 million (2021 – loss of $41.0 million). For the nine months ended September 30, 2022, the Corporation reported a net income from investments of $13.7 million (2021 – loss of $50.5 million).

  • Reported net earnings attributable to owners of the Corporation for the third quarter of 2022 of $4.6 million (2021 – loss of $48.2 million), or earnings of $0.04 per share, before the effect of any dilutive securities (2021 – $0.56 per share), including total positive non-cash items of $8.0 million (2021 – negative $49.5 million).

  • For the nine months ended September 30, 2022, the Corporation reported a net loss attributable to owners of the Corporation of $8.9 million (2021 – $79.4 million), or loss of $0.13 per share (2021 – $0.92 per share), including total non-cash items of $2.2 million (2021 – $81.4 million)

Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation, commented:

“Despite continuing to operate in a challenging environment, Dundee closed a transformational transaction in the third quarter of 2022, partnering with Aura, a world-class and ESG-minded operator, to advance the Borborema Gold Project, a development stage mining project in Brazil. The transaction will allow Dundee to participate directly in its pro-rata share of future cash flows generated by this high-quality project.

“Dundee returned to profit in the third quarter, partly due to strong investment performance from one of its core portfolio holdings, Reunion Gold Corporation, who is advancing the world-class Oko West gold project in Guyana. The Oko West project is one of the most exciting new gold discoveries of this cycle with the potential for strong economics and is well funded to accelerate drilling and expand the deposit. In addition, Dundee participated in Magna Mining Inc.’s $20.0 million private placement, advancing $5.0 million to facilitate a key synergistic acquisition of Lonmin Canada Inc., which will add tremendous value through exploration and development potential.”

“Persistently high inflation, concerns over slowing global growth amid monetary tightening, and an ongoing war in Europe that continues to disrupt energy supplies and strain supply chains continue to weigh on risk appetite. These conditions challenged some other areas of Dundee’s investment portfolio, which reduced investment activity and fee generation.”

“We believe the latest market pullback creates an opportunity for Dundee, as we hold to our strong conviction that the need for high quality and sustainably sourced mining assets has never been greater. We remain focused on investing for the long-term and working with our investee companies to maximize asset value and realize their full potential.”

Mr. Goodman concluded: “The entire team at Dundee continues to work hard to execute on all aspects of our strategy. I am encouraged by our ability to sustain and grow our momentum in the fourth quarter of 2022. Our team remains committed to growing the core business, streamlining operations, divesting non-core businesses, and setting Dundee up to deliver long-term, sustainable value for our stakeholders, shareholders and partners. I would like to thank the entire team for their efforts in managing through a period of incredible change.”

FINANCIAL RESULTS  

Operating results during the third quarter of 2022 reflect a $19.8 million market appreciation (2021 – $42.5 million depreciation) in certain of the Corporation’s investments that are carried in the consolidated financial statements at fair value through profit or loss. In addition, net income from investments during the third quarter of 2022 includes $0.2million (2021 – $1.6 million) dividend and interest income distributed from its portfolio investments. Additionally, during the third quarter of 2022, the Corporation recognized earnings from its equity accounted investments, excluding real estate joint ventures, of $1.0 million (2021 – loss of $0.2 million).

OPERATING SUBSIDIARIES’ PERFORMANCE

Goodman & Company, Investment Counsel Inc. (“GCIC”)

GCIC’s AUM decreased from $42.8 million at the end of June 2022 to $37.0 million at the end of September 2022 primarily due to the decline in market values. During the third quarter of 2022, redemptions of AUM were $0.6 million. During the three months ended September 30, 2022, this segment incurred a pre-tax loss of $0.1 million (2021 – $0.7 million).

During the three months ended September 30, 2022, GCIC recognized financial services revenue of $0.1 million (2021 – $0.5 million) from the services provided by Dundee Goodman Merchant Partners, a division of GCIC.

Dundee Sustainable Technologies Inc. (“Dundee Technologies”)

Dundee Technologies incurred a pre-tax loss of $0.9 million (2021 – $0.8 million) during the three months ended September 30, 2022. Revenue during the same period was $1.0 million (2021 – $1.2 million).

AgriMarine Holdings Inc. (“AgriMarine”)

During the three months ended September 30, 2022, AgriMarine reported a pre-tax loss of $6.0 million (2021 – $0.9 million) with sales revenue of $1.0 million (2021 – $1.9 million). During the third quarter of 2022, AgriMarine recognized a $5.3 million impairment charge against certain equipment, reducing their carrying value to their estimated fair value. The impairment charge is included in the reported third quarter pre-tax loss.

SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS

 Carrying Value as at
 Sept 30, 2022   Dec 31, 2021 
Operating subsidiaries$41,141   $45,844 
Equity accounted investments 48,654    24,250 
Investments carried at fair value through profit or loss 199,948    185,297 
Other net corporate account balances 36,906    79,899 
Total shareholders' equity 326,649    335,290 
     
Less: Shareholders' equity attributable to holders of:    
Preference Shares, series 2 (27,667)   (27,667)
Preference Shares, series 3 (50,423)   (50,423)
     
     
Shareholders' equity attributable to holders of Class A    
Subordinate Voting Shares and Class B Shares of the Corporation$248,559   $257,200 
     
     
Number of Class A Subordinate Voting Shares and Class B Shares of the Corporation issued and outstanding   
Class A Subordinate Voting Shares 84,968,090    84,697,363 
Class B Shares 3,114,491    3,114,491 
  88,082,581    87,811,854 
     
Shareholders' Equity on a Per Share Basis$2.82   $2.93 

THIRD QUARTER 2022 CONFERENCE CALL AND WEBCAST DETAILS

Dundee’s management will be hosting a conference call to discuss our quarterly results on Monday, November 14, 2022 at 2:00 pm ET. Analysts and investors are invited to participate using the following dial-in numbers or webcast link:

Participant Number (Toronto): 416-764-8659
Participant number (Toll-free): 1-888-664-6392
Conference ID: 91507280
Audience URL: https://app.webinar.net/pmjGgEB3Lz0

A replay of the conference call will be available until 11:59 pm (ET), November 28, 2022, and can be accessed using the following dial-in numbers:

Participant Number (Toronto): 416-764-8677
Participant number (Toll-free): 1-888-390-0541
Encore ID: 507280 #

The Corporation’s unaudited interim consolidated financial statements as at and for the three and nine months ended September 30, 2022 and 2021, 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.sedar.com 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 including but not limited to, the strategic partnership with Aura Minerals and the future development of the Borborema Gold Project. 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