TORONTO, March 25, 2025 (GLOBE NEWSWIRE) -- “2024 marked a transformative year for Dundee with broad positive performance in our core strategy 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 third quarter, we sold 11 million shares of our position in G Mining Ventures Corp. (“G Mining”) 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 and repayment of our corporate loan is a significant milestone, reducing our cash outflows, enhancing our financial flexibility and positioning Dundee for continued, sustainable growth for the long-term. As we move into 2025, our focus is increasingly on broadening Dundee’s sources of cash flow. Development of the Borborema Project, where we hold an attractive royalty, is progressing well, according to its operator, Aura Minerals Inc., with ramp-up scheduled for early 2025 and commercial production expected in the latter half of the year. This key milestone marks a pivotal step in reinforcing Dundee’s financial position and highlights our ongoing efforts to establish income streams that support our long-term growth objectives.”
“In addition, we continue to make considerable progress in simplifying Dundee as we shed non-core businesses and investments and free up our capital and talent which can be deployed more strategically. In September, we announced our exit from the investment management business with the divestiture of our flow-through funds which will position us to operate with greater agility in the mining sector. Post year-end, we announced that the ownership group of Android, of which we are 20%, has agreed to sell its interest in the company which demonstrates continued rationalization of the non-core legacy assets and enables us to recycle capital into our core mining business.
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 into 2025 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 YEAR-END 2024 RESULTS
In August 2024, the Corporation sold 11.0 million shares of G Mining Ventures Corp. (“G Mining”) for net proceeds to the Corporation of $95.9 million. Subsequent to year-end, the Corporation sold its remaining 2.9 million shares of G Mining for net proceeds of $45.3 million.
Upon the partial sale of G Mining in August of 2024, the Corporation partially repaid $14.0 million of its outstanding loan with Earlston Investments Corp. in 2024 and paid the remaining $5.0 million of loan principal in 2025.
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.
Subsequent to year-end, Dundee announced the sale of its interest in Android Industries, L.L.C. (“Android”) for cash proceeds of approximately $24.5 million at closing, with additional proceeds payable contingent upon the release of all escrows.
In December 2024, the Corporation announced its exit from the investment management business with the divesture of its flow-through related investment management contracts for nominal consideration, aligning internal resources to our long-term strategic priorities.
In the third quarter of 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. Subsequent to year-end, Dundee exercised warrants to acquire 11.8 million additional common shares of Maritime, increasing Dundee’s undiluted ownership interest to 44%.
Reported net loss from all portfolio investments for the fourth quarter of 2024 of $2.1 million (2023 – loss of $0.8 million). The key drivers during the quarter included a $4.3 million and $2.9 million market depreciation in the Corporation’s investments in Saturn Metals Limited (“Saturn Metals”) and Ausgold Limited (“Ausgold”), respectively, offset by a $3.7 million investment gain in G Mining. For 2024, the Corporation reported net income from portfolio investments of $65.9 million (2023 – loss of $23.0 million). The top performer of 2024 was the $53.6 million fair value gain in Reunion Gold Corporation.
In October 2024, the Corporation announced the completion of the sale of 8,000 shares of TauRx Pharmaceuticals Ltd. 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 fourth quarter of $3.8 million (2023 – $2.5 million). For 2024, the Corporation reported consolidated general and administrative expenses of $16.3 million (2023 – $16.1 million).
Reported net loss attributable to owners of the Corporation for the fourth quarter of 2024 of $8.2 million (2023 – $2.8 million). For 2024, the Corporation reported net earnings attributable to owners of the Corporation of $59.1 million (2023 – loss of $38.8 million), or earnings of $0.64 per share (2023 – a loss of $0.43 per share).
SEGMENTED FINANCIAL RESULTS
Mining Investments
In the fourth quarter of 2024, the Corporation reported a net loss before taxes from the mining investments segment of $4.2 million (2023 – $1.6 million). Performance from the mining portfolio investments incurred a total loss of $2.6 million (2023 – $1.3 million), which is included in net earnings or loss from this segment. Key drivers during the quarter included a $4.3 million and $2.9 million market depreciation in the Corporation’s investments in Saturn Metals and Ausgold, respectively, offset by a $3.7 million investment gain in G Mining Ventures Corp. (“G Mining”). The share of losses from equity accounted mining investments during the fourth quarter of 2024 was $1.6 million (2023 – $0.3 million).
During 2024, the Corporation reported net earnings before taxes from the mining investments segment of $61.6 million (2023 – loss of $24.0 million). Performance from the mining investments portfolio contributed $62.5 million (2023 – loss of $24.0 million) to net earnings or loss before taxes in this segment. The key driver of performance during the current year was a $53.6 million market appreciation in the Corporation’s investment in Reunion Gold Corporation, prior to the business combination with G Mining. The share of losses from equity accounting mining investments during 2024 was $1.7 million (2023 – $2.2 million).
Corporate and others
The Corporation reported a pre-tax loss from the corporate and others segment, including non-core subsidiaries, of $0.5 million (2023 – $0.3 million) during the three months ended December 31, 2024. During 2024, the corporate and others segment reported pre-tax earnings of $5.5 million (2023 – loss of $12.0 million).
The fair value of non-mining portfolio investments in the corporate and others segment increased by $0.5 million (2023 – $0.5 million) during the fourth quarter of the current year. The fair value of portfolio investments in this segment increased by $3.4 million (2023 – $1.1 million) during 2024.
In the fourth quarter, the segment’s non-mining equity accounted investments reported pre-tax earnings of $1.9 million (2023 – $0.3 million). During the same period, the segment’s subsidiaries reported pre-tax losses of $0.1 million (2023 – $0.1 million). During 2024, the segment’s non-mining equity accounted investments reported pre-tax earnings of $1.5 million (2023 – loss of $1.9 million), while subsidiaries reported pre-tax losses of $1.3 million (2023 – $3.2 million).
Mining Services
During the three months ended December 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 $4.5 million (2023 – $1.2 million), which included a $2.9 million impairment charge to intangible assets and receivables. During 2024, Dundee Technologies incurred a pre-tax loss of $7.9 million (2023 – $4.3 million).
SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS
Carrying value as at December 31,
2024
2023
Mining Investments
Portfolio investments
$
95,490
$
126,671
Equity accounted investments
30,013
15,731
Royalty
18,921
18,921
144,424
161,323
Corporate and Others
Corporate
32,976
18,342
Portfolio investments ‒ other
70,495
68,482
Equity accounted investments ‒ other
30,240
28,874
Real estate joint ventures
2,364
2,852
Subsidiaries
3,403
7,738
139,478
126,288
Mining Services
Subsidiaries
(208
)
2,439
Equity accounted investment
-
98
(208
)
2,537
SHAREHOLDERS' EQUITY
$
283,694
$
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
$
283,694
$
244,356
Number of shares of the Corporation issued and outstanding:
Class A Subordinate Shares
86,269,735
85,832,805
Class B Shares
3,114,491
3,114,491
Total number of shares issued and outstanding
89,384,226
88,947,296
SHAREHOLDERS' EQUITY ON A PER SHARE BASIS *
$
3.17
$
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 audited consolidated financial statements as at and for years ended December 31, 2024 and 2023, along with the accompanying management’s discussion and analysis, as well as the Annual Information Form, 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 mining-focused holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. The Corporation is primarily engaged in acquiring mineral resource assets. The Corporation operates with the objective of unlocking value through strategic investments in mining projects globally. Our team conducts due diligence in order to assess the geological, technical, environmental, and financial merits and risks of each project and looks to deploy capital where it can either seek to generate investment returns or where the Corporation can collaborate with operating partners and take strategic partnerships through direct interests in mining operations.
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.
