1 Tous les montants dans ce communiqué sont en dollars américains, à moins d’indication contraire. Les montants de % de variation ont été calculés à partir des chiffres arrondis. Certaines additions peuvent être incorrectes du fait des arrondis.
1 Tous les montants dans ce communiqué sont en dollars américains, à moins d’indication contraire. Les montants de % de variation
ont été calculés à partir des chiffres arrondis. Certaines additions peuvent être incorrectes du fait des arrondis.
2 « Bénéfice avant intérêts, impôts et amortissement » est une mesure de rendement non conforme aux Normes internationales
d'information financière (normes IFRS de comptabilité). Il est en conséquence possible que cette mesure ne soit pas comparabl e
avec une mesure similaire d'une autre société. La Société utilise cette information comme indicateur de trésorerie générée par ses
opérations et permet aux investisseurs de comparer la rentabilité de la Société avec d'autres en éliminant l'effet de différentes bases
d'actifs, l'effet dû aux différentes structures fiscales et l'effet des différentes structures de capital. Le BAIIA est calcu lé à la page 13
du MD&A. Voir la section 18 des « Mesures de rendement non conforme aux IFRS » du MD&A de la Société pour l’exercice clos le
31 mars 2025.
3 Marge brute d’opération « Marge brute monétaire par once d’or équivalente » est en US$ et est calculée en soustrayant le coût des
ventes monétaire moyen du prix de vente moyen et est une mesure de rendement non conforme aux Normes internationales
d'information financière (normes IFRS de comptabilité). Il est en conséquence possible que cette mesure ne soit pas comparable
avec une mesure similaire d'une autre société. Voir les « Mesures de rendement non conforme aux IFRS » à la section 18 du MD&A
de la Société.
Dynacor Further Improves Financial Performance with Net Income of
$5.1 Million and Record Quarterly Sales of $80 Million in Q1-2025
Montreal, May 15, 2025 – Dynacor Group Inc. (TSX: DNG) ( “Dynacor” or the “Corporation”) today
announced its unaudited financial and operational results1 for the first quarter ended March 31, 2025.
Q1-2025 Highlights
• Record sales and robust financial results:
o Record sales of $80.0 million, an 18.2% increase from Q1-2024.
o EBITDA² of $7.3 million, a 9.9% decrease from Q1-2024.
o Net income of $5.1 million, a 6.3% increase from Q1-2024.
o Operating cash flows before changes in working capital items of $ 5.8 million, a 3.6% increase
from Q1-2024.
o Cash gross operating margin of $353 per AuEq ounce sold3, compared to $305 in Q1-2024.
• Successful financing: Completed an offering of 5,750,000 common shares at a price of $3.84
(CA$5.50) per share, generating gross proceeds of $22,081,414 (CA$31,625,000) .
• Steady mill performance:
o Processed 43,341 tonnes of ore (482 tpd) compared to 44,006 tonnes in Q1-2024 (484 tpd)
o Produced 27,050 AuEq ounces compared to 31,769 AuEq ounces in Q1-2024.
• 38,500 tonnes of ore supplied, and ore inventory of almost 7,000 tonnes at quarter-end.
• Solid financial position with cash and short-term investments of $59.3 million at the end of Q1 -2025
compared to $25.8 million at year-end 2024.
• Advanced international expansion plans:
o Senegal: Preparatory work for the construction of a 50 tpd pilot plant is proceeding to plan.
o Ecuador: Executed a conditional letter of offer and indicative terms for the purchase of a
1,500 tpd permitted processing plant.
• Increased monthly dividends: Disbursed a monthly dividend representing CA$0.16 per share on an
annual basis or a 3.3% dividend yield based on the current share price.
• Heightened health and safety , environment and social responsibility expertise at Veta Dorada
through 9,735 hours of training.
• Impacted more than 1,000 people through investments in artisanal mining community education and
health.
2025 Outlook versus Actuals
For 2025, the Corporation forecasts:
o Sales between $345-$375 million (YTD $80.0 million).
o Net income between $14-$17 million (YTD $5.1 million).
o Production between 120,000-130,000 AuEq ounces (YTD 27,050 AuEq ounces).
o Capital expenditures of up to $15 million in Peru and Senegal (YTD $1.3 million).
o Other project expenses of $3 million to achieve the 2025 growth plan (YTD $0.5 million).
Initial guidance excludes ongoing capital expenditure on other projects and opportunities in Latin America
and in Africa.
Guidance is based on the following assumptions:
(1) No increase in processing capacity.
(2) Average market gold price of between $2,800 and $3,000 per ounce.
(3) The ore grade supplied may vary with the evolution of the gold price.
So far in 2025, the Corporation is in line with its outlook.
“I am proud of the Dynacor team’s dedication and focus, delivering record sales, solid production and strong
financials in the first quarter, which can be the weakest quarter of the year due to the wet season. Despite
external market turbulence, we also advanced our expansion plan decisively in the quarter through our
conditional offer of intent to acquire a second plant in Latin America and tight oversight of our growth plans
into Africa,” said Jean Martineau, President & CEO. “We thank shareholders for their continued support in
this year of significant execution and believe that Dynacor has never been better positioned.”
Operations Overview
For the three-month periods
ended March 31,
2025 2024
Volume processed (in tonnes) 43,341 44,006
Tonnes per day 482 484
AuEq ounces produced 27,050 31,769
• The Chala plant continued operating at full capacity.
• Production was impacted by the supply of lower grade ore that is mainly due to the increasing gold
market price.
• The decrease in the AuEq ounces produced is a direct result of the lower head grade processed
compared to the same period in 2024.
• At the end of Q1 -2025, the Corporation’s stockpile held some 7,000 tonnes of ore compared to
12,000 tonnes at year-end 2024, reflecting the lower seasonal volume of ore supply in the period.
Financial Overview
For the three-month periods
ended March 31,
(in $'000) (unaudited) 2025 2024
Sales 79,968 67,733
Cost of sales (70,992) (58,585)
Gross operating margin 8,976 9,148
General and administrative expenses (2,404) (1,704)
Other project expenses (475) (214)
Operating income 6,097 7,230
Financial income net of expenses 210 171
Foreign exchange gain (loss) 276 (59)
Income before income taxes 6,583 7,342
Current income tax expense (1,773) (2,577)
Deferred income tax recovery 339 16
Net income and comprehensive income 5,149 4,781
Earnings per share
Basic $0.13 $0.13
Diluted $0.13 $0.13
Q1-2025 Quarterly Results
• During Q1-2025, the gold price increased from approximately $2, 700/oz in January to approximately
$3,000/oz in March, positively impacting the Q1-2025 financial performance.
• Total sales amounted to $80.0 million compared to $67.7 million in 2024. The $12.3 million increase is
explained by a higher average gold price (+$ 22.3 million), partially offset by lower quantities of gold
ounces sold (-$10.0 million) due to lower grades of ore processed.
• The Q1-2025 gross operating margin reached $ 9.0 million (11.2% of sales) compared to $ 9.1 million
(13.5% of sales) in Q1-2024. Both quarters were positively impacted by the increasing gold market
prices.
• General and administrative expenses amounted to $ 2.4 million in Q1-2025 compared to $1.7 million in
Q1-2024. The increase is attributable to the growing management team to achieve the growth plan, the
increase in salaries and the cost of the special Shareholders meeting that was held on April 16 , 2025.
• Other projects represent the expenses incurred by the Corporation to duplicate its unique business
model in the same or other jurisdictions.
• A $1.4 million income tax expense was also recorded during Q1-2025. The decrease as a percentage
of the net income before taxes is mainly explained by the variance throughout the period of the Peruvian
sol against the US$ which is the Corporation’s functional currency. Future fluctuations will positively or
negatively affect the current and deferred tax at the end of each period.
Cash Flows, Working Capital and Liquidity Overview
Investing activities
• In Q1-2025, Dynacor invested $1.3 million in capital expenditure including $0.8 million to increase the
tailings pond capacity and other additions to maintain or improve the plant efficiency . All investments
were financed with internally generated cash flow.
Financing activities
• Offering of 5,750,000 common shares at a price of $3.84 (CA$5.50) per share, generating gross
proceeds of $22,081,414 (CA$31,625,000) and incurring transaction costs of $1,648,652.
• In Q1-2025, monthly dividends of CA$0.01 33 totaling CA$0.04 per share were disbursed for a total
consideration of $ 1.1 million (CA$1.7 million). In Q1-2024, monthly dividends of CA$0.01 167 totaling
CA$0.035 per share were disbursed for a total consideration of $1.0 million (CA$1.3 million).
Working Capital and Liquidity
• As at March 31, 202 5, the Corporation’s working capital amounted to $ 82.6 million, including
$59.3 million in cash and short -term investments ($5 8.9 million, including $2 5.8 million in cash and
short-term investments as at December 31, 2024).
For the three-month
periods ended March 31,
(in $'000) (unaudited) 2025 2024
Operating activities
Net income adjusted for non-cash items 5,799 5,651
Changes in working capital items 9,686 3,940
Net cash from operating activities 15,485 9,591
Investing activities
Acquisition of property, plant and equipment and others (1,304) (718)
Net cash used in investing activities (1,304) (718)
Issuance of common shares 20,433 -
Repurchase of common shares - (2,752)
Dividends paid (1,115) (969)
Other 56 55
Net cash from (used in) financing activities 19,374 (3,666)
Change in cash during the period 33,555 5,207
Effect of exchange rate changes on cash (76) (13)
Cash, beginning of the period 19,819 22,481
Cash, end of the period 53,298 27,675
Consolidated Statement of Financial Position
As at March 31, 202 5, total assets amounted to $ 147.2 million ($ 125.3 million as at
December 31, 2024). Major variances since year -end 2024 come from the significant increase in cash
following the issuance of common shares in February 2025 and the decrease in ore inventory due to the
rainy season which impacts the ore supply.
(in $'000) (unaudited)
As at
March 31,
As at
December 31,
2025 2024
Cash 53,298 19,819
Short-term investments 5,999 5,999
Accounts receivable 21,004 23,747
Inventories 19,162 29,376
Prepaid expenses and other assets 1,359 361
Property, plant and equipment 26,593 26,160
Exploration and evaluation assets 18,570 18,570
Right-of-use assets 1,045 1,070
Other non-current assets 159 159
Total assets 147,189 125,261
Trade and other payables 16,763 18,185
Asset retirement obligations 3,757 3,732
Current tax liabilities 1,290 2,125
Deferred tax liabilities 226 565
Lease liabilities 1,104 1,108
Share unit plan liabilities 333 389
Shareholders' equity 123,716 99,157
Total liabilities and shareholders’ equity 147,189 125,261
Annual General Meeting
The Corporation will hold its Annual General Meeting (AGM) for shareholders at 10 am on June 17, 2025.
Webcast and further details on the AGM will be provided in the notice of meeting.
About Dynacor
Dynacor Group is an industrial ore processing company dedicated to producing gold sourced from
artisanal miners. Since its establishment in 1996, Dynacor has pioneered a responsible mineral supply
chain with stringent traceability and audit standards for the fast -growing artisanal mining industry. By
focusing on fully and part -formalized miners, the Canadian company offers a win -win approach for
governments and miners globally. Dynacor operates the Veta Dorada plant and owns a gold exploration
property in Peru. The company plans to expand to West Africa and within Latin America.
The premium paid by luxury jewellers for Dynacor’s PX Impact® gold goes to Fidamar Foundation, an
NGO that mainly invests in health and education projects for artisanal mining communities in Peru. Visit
www.dynacor.com for more information.
Forward-Looking Information
Certain statements in the preceding may constitute forward -looking statements, which involve known
and unknown risks, uncertainties and other factors that may cause the actual results, performance, or
achievements of Dynacor, or industry results, to be mat erially different from any future result,
performance or achievement expressed or implied by such forward -looking statements. These
statements reflect management’s current expectations regarding future events and operating
performance as of the date of this news release.
Contact:
For more information, please contact:
Ruth Hanna
Director, Investor Relations
T: 514-393-9000 #236
Website: http://www.dynacor.com
Renmark Financial Communications Inc.
Bettina Filippone
T: (416) 644-2020 or (212) 812-7680
Website: www.renmarkfinancial.com