Dundee Corporation’s transformation shows progress and generates profits in the first quarter of 2022

TORONTO, May 11, 2022 (GLOBE NEWSWIRE) — Dundee Society (TSX: DC.A) (the “Company” 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 otherwise indicated.

FIRST QUARTER 2022 RESULTS

• Reported net income on investments of $46.6 million (loss of $10.9 million in 2021).

• Reported net income attributable to owners of the Company 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). Taking into account the effect of dilutive securities, the Company reported earnings of $0.33 per share for the current fiscal year.

• Reduced the company’s total general and administrative expenses 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 Company reported cash of $76.2 million as of March 31, 2022 (December 31, 2021 – $93.9 million).

Jonathan Goodman, President and CEO of Dundee Corporation, said:

“Dundee is pleased to report positive investment results in the first quarter of 2022 as we continue to make progress against our three strategic pillars: closing more mining deals, streamlining our portfolio of non-core assets and streamlining our cost structure. . During the period, Dundee was rewarded for its focus on thorough due diligence, with its portfolio investments delivering strong performance amid global financial weakness.

“I am pleased with the way our entire Dundee investment team has remained active in identifying, de-risking and investing in mining companies with strong value propositions. During the first quarter, we increased our positions in high quality and well managed mining companies such as Reunion Gold, Centaurus Metals and Ausgold, among others. Subsequent to the end of the quarter, 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.

The story continues

“With recent geopolitical events and a global pandemic exposing the fragility of global supply chains and financial systems, we strongly believe that the need for high quality, sustainably sourced mining assets has never been greater. We remain focused on investing for the long term and working with our beneficiary 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 execution rate in the first quarter of 2022. We see a clear path to further G&A improvements in lease costs, information, insurance costs and other items. We remain focused on reducing general and administrative costs as well as on the financing of subsidiaries. »

Mr. Goodman concluded: “The entire Dundee team continues to work hard to implement all aspects of our transformation strategy. I am encouraged by our ability to maintain and build momentum in the first quarter of 2022. Our team remains committed to growing the core business and preparing Dundee to deliver sustainable, long-term value to our stakeholders, shareholders and partners. I want to thank the whole team for their efforts to get through a period of incredible change.

FINANCIAL RESULTS

Results of operations during the first quarter of 2022 reflect a market appreciation of $44.8 million (market depreciation of $11.5 million in 2021) of certain of the Company’s investments that are recorded in consolidated financial statements at fair value through profit or loss. Additionally, net investment income during the first quarter of 2022 includes $1.8 million (2021 – $0.7 million) of dividends and interest income distributed from its portfolio investments. In addition, during the first quarter of 2022, the Company recorded a loss on its equity accounted investments, excluding real estate joint ventures, of $0.6 million (gain of $0.6 million). dollars in 2021).

PERFORMANCE OF OPERATING SUBSIDIARIES

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

GCIC’s assets under management grew from $57.9 million at the end of December 2021 to $64.0 million at the end of March 2022. In the first three months of 2022, GCIC raised capital of $13.2 million dollars through the launch of a new tax-assisted limited partnership, CMP 2022 Resource Limited Partnership. AUM redemptions 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 – profit of $0.2 million).

During the quarter ended March 31, 2022, GCIC recorded financial services revenue of $1.1 million ($0.7 million in 2021) from 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 a 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) on revenue of $1.3 million (2021 – $1.5 million). As depressed and unpredictable market conditions associated with COVID-19 ease, reduced harvest volumes have resulted in lower sales revenue compared to the same period in 2021.

EQUITY PER SHARE

FIRST QUARTER 2022 CONFERENCE CALL AND WEBCAST DETAILS

Dundee management will host a conference call to discuss our quarterly results on Thursday, May 12, 2022 at 10:00 a.m. ET. Analysts and investors are invited to participate using the following call numbers or webcast link:

Participant number (local): 416-764-8659
Participant number (toll-free): 1-888-664-6392
Conference ID: 84524620
Audience URL: https://produceredition.webcasts.com/starthere.jsp?ei=1547286&tp_key=1c7b70d4db

A replay of the conference call will be available until 11:59 p.m. (ET) on May 26, 2022 and can be accessed using the following dial-in numbers:

Again (local): 416-764-8677
Again (free of charge): 1-888-390-0541
Encore ID: 524620#

The Company’s unaudited interim consolidated financial statements as at March 31, 2022 and 2021 and for the three months ended March 31, 2022 and 2021, together with the related management’s report have been filed on the Electronic Data, Analysis and (“SEDAR”) and can be viewed by interested parties under the Company’s profile at www.sedar.com or the Company’s website at www.dundeecorporation.com

ABOUT DUNDEE CORPORATION:

Dundee Corporation is an independent Canadian 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 creating long-term sustainable value as a trusted partner in the mining industry with over 30 years of experience in accretive mining investments.

FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking information within the meaning of applicable securities laws, 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 the control of Dundee Corporation, which could cause actual results and events to differ materially. of those disclosed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in Dundee Corporation’s Annual Information Form and subsequent filings with securities commissions in Canada. Dundee Corporation undertakes no 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 MORE INFORMATION, PLEASE CONTACT:

Investor Relations and Media
Such. : (416) 864-3584
Email: ir@dundeecorporation.com