Dynasty Metals & Mining Inc fka DMM

[elorotoro]

4 years since the last post on this forum.

It has been a long haul for most Dynasty Metals and Mining shareholders.

From the sounds of the forward looking statements the company is making along with the release of the 2cd quarter 2015 financials, it might be a good time look at the possibility of throwing a little money into this play.

Huge potential upside, and as long as the company hits their targetted production goals, little downside risk at present share price.




Q2 News release:
http://www.dynastymining.com/investors/newsreleases/pr_2015_08_14.php

Q2 financial report:

http://www.dynastymining.com/investors/sedar/DMM_Financial_Statements_2015_Q2.pdf

Q2 MD&A:

http://www.dynastymining.com/investors/sedar/DMM_MDA_2015_Q2.pdf



42,461,083 shares issued and outstanding at C$0.60 for current market cap of only C$25.5 million. Processsing plant capacity currently over 300,000 tonne per year is fully operational and completely paid for. An additional $3 million CAPEX will take capacity up to 800,000 tpa.

Updated 43 101 compliant resource estimates were completed in 2014

http://www.dynastymining.com/investors/technical.php


Total resources little changed from older 43-101 reports -
6 million oz of gold and 27 million ounces of silver.

Zaruma Mine is 9th richest grade operating gold mine in the world

Latest company presentation :

http://www.dynastymining.com/investors/presentation.php

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Q2 results were weak as was expected as the company was concentrating on developing declines and underground infrastructure in order to access multiple faces of the resources starting in Q3.

For the first six weeks of Q3 the company has already produced the same amount of gold ounces as they did for the whole of Q2, so they are at least starting to ramp up production. Production is running at 300 - 350 tpd currently.

Assuming 325 tpd average and 3250 reported ounces sold already on Q3, grade is roughly 7.4 gpt assuming a 93% recovery rate in the processsing plant.

Headgrade should be up to 10 gpt headgrade near term as stated by Pres. Bob Washer in June 22 news release.

"Dynasty has reached the point where mining has started to ramp up following the development of the new sections of the decline," commented Mr. Washer. "We are excited that the decline has now reached a suitable position and depth from which we may begin mining both the Soroche and Matalanga veins in the levels below the previous workings, where the head grade is approximately 10 grams per tonne gold. Once we begin extracting ore from the new mining faces, we expect a significant increase in gold and silver production over the next quarter, continuing to the end of 2015."


Company needs to ramp up production tonneage and grade in the near future, as repayment of $4 million loan starts Oct 30, 2015 at $500,000 per month for 8 months.


"Subsequent to June 30, 2015, and up to the date of this news release, the Company has sold approximately 3,250 ounces of gold for proceeds of approximately $3.6 million which have primarily been used to fund the Zaruma Project. In the coming quarters the Company anticipates an increase in production at the Zaruma Project as additional mining faces are accessed and the daily tonnage mined is ramped up towards 500 tpd by the end of the year."

Guidance of 500 tpd in early 2016 and increasing thereafter as more faces are opened is encouraging ...


"With additional mining faces expected to be accessed over the next several quarters, Zaruma is expected to ramp up towards 500 tonnes per day (“tpd”) in early 2016 and continue to increase tonnage through 2016 and into 2017."



Based on company's guidance .... expect to see a minimum of 50,000 oz of gold produced in 2016

500 tpd X 10 gpt X 350 days X 93% recovery rate / 31.1 g/oz = 52,231 oz ( use two weeks downtime for maintenance)

With production expected to ramp up over the course of 2016 and 2017, production should be much higher by year end 2016 ...


Do your due diligence.