Dundee Corporation (TSX: DC.A) (the “Corporation”
or “Dundee”) today announced its financial results for the three
months ended March 31, 2022. All currency amounts in this press
release are in Canadian dollars except as otherwise indicated.
FIRST QUARTER 2022 RESULTS
- Reported net income from
investments of $46.6 million (2021 – loss of $10.9 million).
- Reported net earnings attributable
to owners of the Corporation of $31.1 million (2021 – loss of $19.7
million), or earnings of $0.34 per share before the effect of any
dilutive securities (2021 – loss of $0.23 per share). Including the
effect of dilutive securities, the Corporation reported earnings of
$0.33 per share for the current year.
- Reduced total corporate G&A
costs by 9% compared to the first quarter of 2021, excluding the
impact of stock-based compensation (1% including the impact of
stock-based compensation).
- On a consolidated basis, the
Corporation reported cash of $76.2 million as at March 31, 2022
(December 31, 2021 – $93.9 million).
Jonathan Goodman, President and Chief Executive
Officer of Dundee Corporation, commented:
“Dundee is pleased to show positive investment
results in the first quarter of 2022, as we continue to make
progress against all three of our strategic pillars: doing more
mining deals, rationalizing our legacy portfolio of non-core
assets, and streamlining our cost structure. During the period,
Dundee was rewarded for its focus on deep-dive due-diligence, with
its portfolio investments delivering a solid performance against a
backdrop of global financial weakness.”
“I am pleased with the way our entire Dundee
investment team remained active in identifying, de-risking and
investing in mining companies with solid value propositions. During
the first quarter, we increased positions in high-quality, well-run
mining companies such as Reunion Gold, Centaurus Metals, and
Ausgold among others. Subsequent to quarter end, Dundee was
extremely pleased to announce a strategic partnership with Aura
Minerals to develop and participate in future cash flows from the
Borborema Gold Project.”
“With recent geopolitical events and a global
pandemic exposing the fragility of global supply chains and
financial systems, 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 in the long-term and
working with our investee companies as advisors and partners to
maximize asset value and realize their full potential.”
Mr. Goodman continued, “We continued to make
progress in reducing our corporate G&A run rate in the first
quarter of 2022. We see a clear path to additional G&A
improvements in leasehold costs, IT costs, insurance costs and
other items. We remain laser-focused on reducing run-rate G&A
as well as funding to subsidiaries.”
Mr. Goodman concluded, “The entire team at
Dundee continues to work hard to execute on all aspects of our
transformation strategy. I am encouraged by our ability to sustain
and grow our momentum in the first quarter of 2022. Our team
remains committed to growing the core business 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 first quarter of
2022 reflect a $44.8 million market appreciation (2021 – $11.5
million market 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 first quarter of 2022 includes
$1.8 million (2021 – $0.7 million) dividend and interest income
distributed from its portfolio investments. Additionally, during
the first quarter of 2022, the Corporation recognized a loss from
its equity accounted investments, excluding real estate joint
ventures, of $0.6 million (2021 – earnings of $0.6 million).
OPERATING SUBSIDIARIES’
PERFORMANCE
Goodman & Company, Investment Counsel Inc.
(“GCIC”)
GCIC’s AUM increased from $57.9 million at the
end of December 2021 to $64.0 million at the end of March 2022.
During the first three months of 2022, GCIC raised capital of $13.2
million from launching a new tax-assisted limited partnership, CMP
2022 Resource Limited Partnership. Redemptions of AUM during the
same period of 2022 were $7.2 million. During the three months
ended March 31, 2022, this segment incurred a pre-tax loss of $0.3
million (2021 – earnings of $0.2 million).
During the three months ended March 31, 2022,
GCIC recognized financial services revenue of $1.1 million (2021 –
$0.7 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
$0.7 million (2021 – $0.8 million) during the three months ended
March 31, 2022. Revenue during the same period was $1.1 million
(2021 – $0.7 million). On March 1, 2022, Dundee Technologies
announced the closing of a private placement for total
consideration of $0.6 million.
AgriMarine Holdings Inc. (“AgriMarine”)
During the three months ended March 31, 2022,
AgriMarine reported a pre-tax loss of $1.1 million (2021 – $0.9
million) with sales revenue of $1.3 million (2021 – $1.5 million).
While depressed and unpredictable market conditions associated with
COVID-19 are abating, a reduction in harvest volumes resulted in
lower sales revenues compared to the same period in 2021.
SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS
|
|
Carrying Value as at |
|
|
|
Mar 31, 2022 |
|
|
Dec 31, 2021 |
|
Operating subsidiaries |
$ |
43,818 |
|
$ |
45,844 |
|
Equity accounted investments |
|
24,014 |
|
|
24,250 |
|
Investments carried at fair value through profit or loss |
|
243,588 |
|
|
185,297 |
|
Other net corporate account balances |
|
55,385 |
|
|
79,899 |
|
Total shareholders' equity |
|
366,805 |
|
|
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 |
$ |
288,715 |
|
$ |
257,200 |
|
|
|
|
|
|
|
|
Number of Class A Subordinate Voting Shares and Class B Shares of
the Corporation issued and outstanding |
|
Class A Subordinate Voting Shares |
|
84,697,363 |
|
|
84,697,363 |
|
Class B Shares |
|
3,114,491 |
|
|
3,114,491 |
|
|
|
|
87,811,854 |
|
|
87,811,854 |
|
|
|
|
|
|
Shareholders' Equity on a Per Share Basis |
$ |
3.29 |
|
$ |
2.93 |
|
FIRST QUARTER 2022 CONFERENCE CALL AND WEBCAST
DETAILS
Dundee’s management will be hosting a conference
call to discuss our quarterly results on Thursday, May 12, 2022 at
10:00 am ET. Analysts and investors are invited to participate
using the following dial-in numbers or webcast link:
Participant Number (Local):
416-764-8659Participant number (Toll-free):
1-888-664-6392Conference ID:
84524620Audience URL:
https://produceredition.webcasts.com/starthere.jsp?ei=1547286&tp_key=1c7b70d4db
A replay of the conference call will be
available until 11:59 pm (ET) May 26, 2022, and can be accessed
using the following dial-in numbers:
Encore (Local):
416-764-8677Encore (Toll-free):
1-888-390-0541Encore ID: 524620#
The Corporation’s unaudited interim consolidated
financial statements as at and for the three months ended March 31,
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 RelationsT: (416) 864-3584E:
ir@dundeecorporation.com
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