TORONTO, Aug. 12, 2025 (GLOBE NEWSWIRE) -- "This quarter, we began recognizing revenue from our royalty interest in the Borborema Gold Project, signaling the start of a new, recurring revenue stream. While still early days, this milestone reflects tangible progress toward our strategy of building a more cash-generative business," said Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation. "With recurring cash flow now beginning to support our core cost base, we are in a stronger position to allocate capital toward growth, which reinforces our ability to drive shareholder value."
"Over the years, we've positioned ourselves to be liquid, flexible, and guided by a disciplined and technically grounded investment process. Our preparation and discipline allowed us to capitalize on key opportunities in the second quarter, including the backstopping of SPC Nickel's $3.5 million rights offering and participation in the private placements by Maritime Resources and Saturn Metals. After quarter end, we added to our position in Ausgold Limited by participating in a private placement to advance their compelling Katanning Gold Project."
Mr. Goodman concluded: "We ended the quarter with a strong cash position, no debt at the parent level, and the addition of a royalty revenue stream that will strengthen our financial position going forward. We are proud of what we have accomplished this quarter and remain focused on the opportunity ahead. None of this progress would be possible without the dedication, focus and sharp execution of our team - they continue to be the driving force behind everything we achieve."
SECOND QUARTER AND FIRST HALF OF 2025 RESULTS
- Reported net income from all portfolio investments for the second quarter of 2025 of $17.4 million (2024 - $45.3 million). The key driver of the current quarter's positive performance was the investment in Saturn Metals Limited ("Saturn Metals"), contributing $9.3 million to net income. Other notable performers during the quarter included investments in New World Resources Limited ("New World Resources") and Ausgold Limited ("Ausgold"), delivering $3.7 million and $3.2 million investment gains, respectively. New World Resources benefitted from an active takeover contest during the quarter, with escalating offer prices reaching AUD$0.067 per share, driving the gain in that investment with the final valuation for that company highlighting the scarcity of high-quality, development stage copper assets. For the six months ended June 30, 2025, the Corporation reported net income from portfolio investments of $45.6 million (2024 - $57.8 million).
- On April 10, 2025, Aura Minerals Inc. announced the start of operations at its Borborema Gold Project, with ramp-up activities expected to continue through the third quarter of 2025. In the second quarter of 2025, Aura sold 1,190 ounces of produced gold, generating $79,000 in royalty income for the Corporation.
- Reported share of income from equity accounted investments of $8.3 million for the second quarter of 2025, driven mainly by the recognition by Magna Mining Inc. of a $36.6 million bargain purchase gain on its recent acquisition of a producing copper mine and past-producing mines, in addition to other exploration properties, from a subsidiary of KGHM International Ltd. ("KGHM"). Dundee recognized $7.7 million for its share of the related equity income during the quarter. The gain was a result of the assets and operations acquired being non-core to KGHM. The purchase price allocation giving rise to the gain is preliminary and has yet to be finalized.
- In April 2025, the Corporation participated in the $20.0 million private placement announced by Maritime Resources Corp. ("Maritime"), whereby the Corporation invested $8.8 million to acquire 117.3 million units of Maritime. Each unit comprises one common share and one half of one common share purchase warrant (each whole warrant, a "Warrant") of Maritime. In a separate private transaction, the Corporation acquired non-convertible senior secured notes of Maritime with a principal amount of US$2.0 million, maturing on August 14, 2025, along with accrued interest. Subsequent to June 30, 2025, Maritime repaid the Corporation in full the outstanding balance of its senior secured notes, US$3.0 million, plus accrued interest.
- During the second quarter of 2025, the Corporation participated in a AUD$23.0 million private placement announced by Saturn Metals, with Dundee purchasing 28.1 million ordinary shares in exchange for AUD$6.0 million. Subsequent to June 30, 2025, Ausgold announced a AUD$35.0 million private placement to advance their Katanning Gold Project towards a final investment decision, of which the Corporation subscribed for AUD$2.0 million to acquire 3.5 million Ausgold shares.
- Reported consolidated general and administrative expenses for the second quarter of 2025 and 2024 of $4.2 million. Excluding share-based compensation of $1.5 million (2024 - $1.4 million), consolidated general and administrative expenses declined 3.9% year-over-year. For the six months ended June 30, 2025, the Corporation reported consolidated general and administrative expenses of $8.8 million (2024 - $8.3 million).
- Reported net earnings attributable to owners of the Corporation for the second quarter of 2025 of $19.9 million (2024 - $52.9 million), or earnings per share on a diluted basis of $0.20 (2024 - $0.55). For the six months ended June 30, 2025, the Corporation reported net earnings attributable to owners of the Corporation of $44.4 million (2024 - $60.1 million), or earnings per share on a diluted basis of $0.46 (2024 - $0.62).
SEGMENTED FINANCIAL RESULTS
Mining Investments
In the second quarter of 2025, the Corporation reported net earnings before taxes from the mining investments segment of $27.1 million (2024 - $46.1 million). Performance from the mining portfolio investments generated income of $18.8 million (2024 - $46.4 million). The share of income from equity accounted mining investments during the second quarter of 2025 was $8.2 million (2024 - loss of $0.3 million). Drivers of performance are described in the highlights above. During the same period, the Corporation reported its first net income from the royalty interest in the Borborema Gold Project of $49,000, which included $79,000 of royalty revenue.
During the first half of 2025, the Corporation reported net earnings before taxes from the mining investments segment of $56.9 million (2024 - $55.4 million). Performance from the mining portfolio investments generated income of $48.4 million (2024 - $56.2 million). The share of income from equity accounted mining investments during the first six months of 2025 was $8.5 million (2024 - loss of $0.8 million).
Corporate and others
The Corporation reported a pre-tax loss from the corporate and others segment, including non-core subsidiaries, of $6.8 million (2024 - earnings of $8.4 million) during the three months ended June 30, 2025. The fair value of non-mining portfolio investments in the corporate and others segment decreased by $1.4 million (2024 - $1.2 million) during the second quarter of the current year and was driven almost exclusively by the investment revaluation of Dundee's ownership in TauRx Pharmaceuticals Ltd. During the same period, the segment's non-mining equity accounted investments reported pre-tax earnings of $49,000 (2024 - loss of $1.2 million).
During the first half of 2025, the Corporation reported a pre-tax loss from the corporate and others segment of $10.9 million (2024 - earnings of $8.0 million). The fair value of non-mining portfolio investments in the segment decreased by $2.8 million (2024 - increased by $1.7 million). During the same period, the segment's non-mining equity accounted investments reported pre-tax earnings of $0.1 million (2024 - loss of $1.1 million).
Mining Services
During the second quarter of 2025, the mining services segment, comprised of the Corporation's 78%-owned subsidiary, Dundee Sustainable Technologies Inc., reported a pre-tax loss of $0.5 million (2024 - $1.3 million). During the first half of 2025, this segment reported a pre-tax loss of $2.2 million (2024 - $2.5 million).
SHAREHOLDERS' EQUITY ON A PER SHARE BASIS
| Carrying value as at | June 30, 2025 | December 31, 2024 | ||||||
| Mining Investments | ||||||||
| Portfolio investments | $ | 121,695 | $ | 95,490 | ||||
| Equity accounted investments | 47,100 | 30,013 | ||||||
| Royalty | 18,891 | 18,921 | ||||||
| 187,686 | 144,424 | |||||||
| Corporate and Others | ||||||||
| Corporate | 45,079 | 32,976 | ||||||
| Portfolio investments ? other | 67,252 | 70,495 | ||||||
| Equity accounted investments ? other | - | 30,240 | ||||||
| Real estate joint ventures | 2,270 | 2,364 | ||||||
| Subsidiaries | (249 | ) | 3,403 | |||||
| Equity accounted investments ? Held-for-Sale | 28,716 | - | ||||||
| 143,068 | 139,478 | |||||||
| Mining Services | ||||||||
| Subsidiaries | (598 | ) | (208 | ) | ||||
| (598 | ) | (208 | ) | |||||
| SHAREHOLDERS' EQUITY ATTRIBUTABLE TO CLASS A SUBORDINATE | ||||||||
| SHARES AND CLASS B SHARES OF THE CORPORATION | $ | 330,156 | $ | 283,694 | ||||
| Number of shares of the Corporation issued and outstanding: | ||||||||
| Class A Subordinate Shares | 86,838,696 | 86,269,735 | ||||||
| Class B Shares | 3,114,491 | 3,114,491 | ||||||
| Total number of shares issued and outstanding | 89,953,187 | 89,384,226 | ||||||
| SHAREHOLDERS' EQUITY ON A PER SHARE BASIS | $ | 3.67 | $ | 3.17 | ||||
The Corporation's unaudited interim consolidated financial statements as at and for the three and six months ended June 30, 2025 and 2024, 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.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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor and Media Relations
T: (416) 864-3584
E: ir@dundeecorporation.com
