Mr. Jonathan Goodman reports

DUNDEE CORPORATION HOLDS THE LINE ON COST REDUCTION, ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

Dundee Corp. has released its financial results for the three months and year ended Dec. 31, 2023. All currency amounts in this press release are in Canadian dollars, except as otherwise indicated.

Fourth quarter and year-end 2023 results

• Reported a net loss from portfolio investments for the fourth quarter of 2023 of $800,000 (2022 -- income of $39.9-million). For the year ended Dec. 31, 2023, the corporation reported a net loss from portfolio investments of $23.0-million (2022 -- income of $53.6-million). The key driver of performance during the year was the market depreciation in holdings of Centaurus Metals Ltd., Ausgold Ltd., warrants of Magna Mining Inc. and Reunion Gold Corp. of $11.6-million, $4.1-million, $3.2-million and $1.9-million, respectively.
• Reported consolidated general and administrative expenses for the current quarter of $2.5-million (2022 -- $7.1-million), representing a 65-per-cent year-over-year decline as Dundee sustains momentum with cost-cutting initiatives. For the year ended Dec. 31, 2023, the corporation reported consolidated general and administrative expenses of $16.1-million (2022 -- $25.3-million), representing a 37-per-cent decline from the prior year.
• Purchased for cancellation 914,040 of the corporation's outstanding cumulative floating rate first preference shares, Series 3 (Series 3 shares), under a substantial issuer bid for aggregate proceeds of $18.7-million. The quantity purchased represented 55.8 per cent of the Series 3 shares issued and outstanding before giving effect to the substantial issuer bid. The corporation secured loan proceeds of $14.0-million to partially finance the purchase and provide more flexibility around long-term commitments.
• Reported a net loss attributable to owners of the corporation for the fourth quarter of 2023 of $2.8-million (2022 -- earnings of $26.0-million).
• For the year ended Dec. 31, 2023, the corporation reported a net loss attributable to owners of the corporation of $38.8-million (2022 -- earnings of $17.1-million), or a loss of 43 cents per share (2022 -- earnings of 15 cents per share).

Jonathan Goodman, president and chief executive officer of Dundee, commented:

"Dundee navigated a challenging market landscape for junior mining in 2023 despite a generally robust environment for commodity prices. Persistent inflationary pressures, poor investor sentiment and lack of capital availability to the junior mining industry contributed to a notable decrease in risk appetite in the sector and posed a significant headwind for our investment portfolio during 2023. Encouragingly, portfolio investment losses decelerated in the fourth quarter. With the price of gold now hovering near its all-time high of over $2,100 per ounce, we remain steadfast in our conviction that the market is underestimating the value of companies engaged in the discovery and development of high-quality precious metals, as well as base metals and strategic resources. We see substantial opportunities in the sector given the disconnect between gold prices and the stocks. We remain focused on investing in top quality projects for the long-term while working with our investee companies as advisers and partners to maximize asset value and realize their full potential.

"Meanwhile, Dundee continued to make progress on the factors within its control, namely around cost reduction. We are happy to report a material reduction in our cash general and administrative expenses during 2023. Further, by retiring more than half the issued and outstanding Series 3 shares at the end of the year, we took a big step towards rightsizing our balance sheet and reducing long-term cash commitments.

"In 2023, we continued to move forward with our strategic plan. Dundee elected to terminate its joint venture arrangement in Borborema Inc. in exchange for a net smelter royalty on the sale of any product from Borborema, up to two million ounces of gold. The royalty gives Dundee a direct line of sight on anticipated future cash flows from the Borborema project without any additional capital investment."

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 2024 as we look forward to the opportunities ahead of us. Our team remains committed to growing the core business, streamlining operations, divesting our remaining non-core businesses and investments, 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."

Segmented financial results

Mining investments

In the fourth quarter of 2023, the corporation reported a net loss from the mining investments segment of $1.6-million (2022 -- earnings of $12.0-million). Performance from the mining investments portfolio incurred a $1.3-million loss (2022 -- income of $12.3-million), which is included in the net loss from this segment. The share of losses from equity accounted mining investments during the current quarter of 2023 and 2022 was $300,000.

During 2023, the corporation reported a net loss from the mining investments segment of $24.0-million (2022 -- earnings of $23.0-million). Performance from the mining investment portfolio contributed $24.0-million to the net loss in this segment (2022 -- income of $23.5-million). The share of loss from equity accounted mining investments during 2023 was $2.2-million (2022 -- $500,000). Offsetting the loss in this segment, the corporation recognized a $2.3-million gain during 2023 relating to the termination of the corporation's 20-per-cent equity interest in the Borborema gold project joint venture in exchange for a net smelter royalty as non-monetary consideration.

Mining services

During the three months ended Dec. 31, 2023, the mining services segment, comprised of the corporation's 78-per-cent-owned subsidiary, Dundee Sustainable Technologies Inc., reported a pre-tax loss of $1.2-million (2023 -- $1.0-million).

During the year, DST reported a pretax loss of $4.3-million (2022 -- $3.5-million), including $3.1-million (2022 -- $3.9-million) revenue generated from technical services to customers in the mining industry to evaluate processing alternatives using its proprietary technologies and for general mineral processing services. In addition, DST recognized a $900,000 gain on the sale of a non-strategic operation and assets located at its Thetford Mines technical facilities.

In 2023, Dundee Technologies completed the detailed engineering of a GlassLock Process project with a top-tier gold producer in Ghana. They also invested $75,000 cash and a $1.6-million in-kind contribution into Enim Technologies Inc., a Quebec-based company focused on the treatment of electronic waste material. In addition, Dundee Technologies extended the maturity date of its convertible debenture to May 15, 2025.

Corporate and others

The corporation reported a pre-tax loss from the corporate and others segment, including non-core subsidiaries, of $300,000 (2022 -- earnings of $22.8-million) during the three months ended Dec. 31, 2023. During this period, the corporation reported head office general and administrative expenses of $2.8-million (2022 -- $2.1-million). During the year, the corporate and others segment reported a pretax loss of $12.0-million (2022 -- earnings of $15.1-million). Corporate head office general and administrative expenses declined to $11.1-million (2022 -- $12.9-million) in 2023.

The fair value of portfolio investments in the corporate and others segment increased by $500,000 during the fourth quarter (2022 -- $27.6-million). The fair value of portfolio investments in the corporate and others segment increased by $1.1-million during 2023 (2022 -- $30.0-million).

Other subsidiaries and equity accounted investments reported a loss of $100,000 and income of $300,000, respectively, to this segment's total pretax loss during the fourth quarter of 2023 (2022 -- loss of $4.7-million and income of $1.3-million, respectively). During the year, other subsidiaries and equity accounted investments contributed $3.2-million and $1.9-million, respectively, to this segment's total pretax loss (2022 -- loss of $9.2-million and income of $4.8-million, respectively).

The corporation's audited consolidated financial statements as at and for years ended Dec. 31, 2023, and 2022, along with the accompanying management's discussion and analysis, as well as the annual information form, have been filed on SEDAR+ and may be viewed by interested parties under the corporation's profile or the corporation's website.

About Dundee Corp.

Dundee is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol DC.A. Through its operating subsidiaries, Dundee is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.

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