In the 1st qtr of 2014, as expected from earlier company guidance issued with Q4 2033 results that Q1 2014 would have substantially lower production, and lower grades compared with the previous qtr, the company still managed to earn net profits of $1,049,388 on sales of 7237 ounces of gold and 14,218 ounces of silver.

The company is essentially debt free now, with only $1,000,000 owed to CEO Bob Washer, who loaned the company the money in an interest free promissory note while the company was struggling with cash flow last year.

Q1 financials

http://www.dynastymining.com/investors/sedar/DMM_MDA_2014_Q1.pdf

Q1 MD&A

http://www.dynastymining.com/investors/sedar/DMM_MDA_2014_Q1.pdf

Zaruma Gold Project Operating Results for 1st Quarter 2014

(a,b)

$919

Cash costs (US$/tonne Au)

(a,b)

$302

All-in sustaining cash cost (US$/oz Au)

(a,b)

$1,310

As at March 31, 2014 the Company had cash resources of $3.3 million and a working capital surplus (current assets less current liabilities) of $1.3 million compared to cash resources of $4.9 million and a working capital surplus of $50.5 million as at December 31, 2013.

Included within accounts payable as at March 31, 2014 is approximated $2.5 million of corporate income and employee participation taxes relating to the year ended December 31, 2013. Subsequent to the period end these taxes were paid in full by the due date which was mid-April 2014. Included within short term loans is a $1 million Promissory Note from corporations represented by the Company’s President and Chief Executive Officer. The Promissory Note bears no interest, is repayable on demand and is secured by way of a General Security Agreement over certain assets of the Company.

As at the date of this report the Company has no contractual capital commitments, however the Company plans to spend most of its remaining working capital and earnings from operations on the continued development of portals to better access the resources and the associated expansion costs and working capital needed at the Zaruma Gold Project, and, to the extent that additional funds are available, on the exploration and development of its other mineral properties. The Company’s budgeted expenditures may increase or decrease depending upon several factors, some of which are not within the control of management, including the future availability of capital.