Dynacor Group: Record Sales, EBITDA and Net Income for 2024
Dynacor Group: Record Sales, EBITDA and Net Income for 2024
Montreal, March 27, 2025 – Dynacor Group Inc. (TSX: DNG) (“Dynacor” or the “Corporation”) today
announced its financial and operational results1 for the year ended December 31, 2024.
2024 Highlights
• Record sales, EBITDA, net income, operating cash flows and cash gross operating margin:
o Sales of $284.4 million, a 13.7% increase from 2023, at the top end of guidance of $265-
$285 million.
o EBITDA 1 of $29.5 million, a 15.7% increase from 2023.
o Net income of $16.9 million, an 11.9% increase from 2023, exceeding guidance of $12-
$15 million.
o Operating cash flows before changes in working capital items of $21.0 million, a 12.9% increase
from 2023.
o Cash gross operating margin of $327 per AuEq ounce sold 3, compared to $257 in 2023.
• Record ore processed:
o Processed 175,872 tonnes (481 tpd) of ore compared to 170,668 tonnes in 2023 (468 tpd).
• Gold production of 117,552 AuEq ounces, compared to 130,001 AuEq ounces in 2023.
• Strong supply of over 167,700 tonnes of ore, and year-end ore inventory of almost 12,000 tonnes.
• Solid financial position with cash and short -term investments of $25.8 million at year -end 202 4
compared to $22.5 million at year-end 2023.
• Advanced international expansion plans:
o Senegal: Purchased a company with a mining concession and completed an environment impact
report.
o Côte d’Ivoire and Ghana: Met with key government ministers, suppliers, and artisanal mining
cooperatives while carrying out geological sampling.
o Peru and Canada: Reorganized talent and appointed management with African expertise,
respectively.
• Continued s hare buy -back program by repurchasing 1,244,800 common shares for $4.0 milli on
(CA$5.4 million).
• Increased monthly dividends to CA$0.14 per share per year, a 16.7% increase from 2023.
• Strengthened environmental governance through certification of Veta Dorada plant under the
International Cyanide Management Code.
• Contributed to artisanal mining community health and education while supporting local
environment through reforestation and clean-up campaigns.
• Ranked on the 2024 TSX30, an annual rating of the 30 top-performing companies on the TSX, with a
three-year share appreciation of 136%.
¹ All figures are in US dollars unless stated otherwise. All variance % are calculated from rounded figures. Some additions might be
incorrect due to rounding.
1 EBITDA: “Earnings before interest, taxes and depreciation” is a non-IFRS financial performance measure with no standard definition
under IFRS Accounting Standards. It is therefore possible that this measure could not be comparable with a similar measure of another
corporation. The Corporation uses this non-IFRS measure as an indicator of the cash generated by the operations and allows investor
to compare the profitability of the Corporation with others by canceling effects of different assets basis, effects due to different tax
structures as well as the effects of different capital structures. EBITDA is calculated on p .16 of th e MD&A. See the “Non -IFRS
Measures” section 15 of the Corporation’s MD&A for the year ended December 31, 2024.
3 Cash gross operating margin per AuEq ounce is in US$ and is calculated by subtracting the average cash cost of sale per equivalent
ounce of Au from the average selling price per equivalent ounce of Au and is a non -IFRS financial performance measure with no
standard definition under IFRS Accounting Standards. It is therefore possible that this measure could not be comparable with a similar
measure of another company. See the “non-IFRS Measures” in section 15 of the Corporation’s MD&A.
2025 So Far and Outlook
• Successfully completed a $22.1 million (CA$31.6 million) public offering in February 2025.
• Generated sales of $51.2 million in the first two months of 2025.
• Initial guidance includes
o Sales between $345-$375 million.
o Net income between $14-$17 million,
o Production between 120-130 thousand AuEq ounces.
o Capital expenditures of up to $15 million in Peru and Africa.
o Other project expenses of $3 million to achieve the 2025 growth plan.
Initial guidance excludes ongoing capital expenditure on other projects and opportunities in Latin America
and in Africa. Refer to the MD&A for the year ended December 31, 2024 for more information on the
assertions.
So far in 2025, the Corporation is in line with its forecasts.
“2024 was a year of strong execution in which we accelerated our vision of replicating the Veta Dorada
success story internationally,” said Jean Martineau, President & CEO . “ 2024’s actions allowed us to
mobilize over $20 million in funds in Q1-2025, deliver our fourteenth year of consecutive profit, begin laying
the foundations for tripling production, and be recognized as a top -performing stock in Canada. We are
especially proud of our sustainability progress: our compliance with the International Cyanide Management
Code; the steps towards decarbonizing our Peruvian operations; and receipt of our First Star in the "Carbon
Footprint Peru" Program.
We entered 202 5 in a robust financial position and with a strengthened pipeline that shows significant
potential to deliver value for all stakeholders. Together with our committed team, we are well-positioned for
continued excellence in execution throughout this buildout year.”
Operations Overview
• Throughout 2024, the Chala plant continued working at full pace. The plant was even tested at a higher
daily processing volume during a certain period.
• Production was impacted by the supply of lower grade ore that is mainly due to the increasing gold
market price.
Three-month periods
ended December 31,
For the years ended
December 31,
2024 2023 2024 2023
Volume processed (in tonnes) 41,210 43,836 175,872 170,668
Tonnes per day 448 476 481 468
AuEq ounces produced 27,417 33,906 117,552 130,001
Financial Overview
2024 Annual Figures
• In 2024, the gold price increased from approximately $2,000/oz in January to approximately $2,600/oz
in December, which, together with the higher tonnage processed, positively impacted the 2024 financial
performance.
• Total sales amounted to $284.4 million compared to $250.2 million in 2023. The $34.2 million increase
is explained by a higher average gold price (+$5 3.8 million), partially offset by lower quantities of gold
ounces sold (-$19.6 million) due to lower grades of ore processed.
• The 2024 gross operating margin reached $35.8 million (12.6% of sales) compared to $30.2 million
(12.1% of sales) in 2023. The 2024 gross operating margin was positively impacted by higher sales and
by the positive trend in gold market prices until the fourth quarter.
• General and administrative expenses amounted to $8.3 million in 2024 compared to $7.1 million in 2023.
The increase is mainly explained by the growing management team to achieve the growth plan and the
increased salaries.
• Other projects represent the expenses incurred by the Corporation to duplicate its unique business
model in the same or other jurisdictions.
• A $9.9 million income tax expense was also recorded in 2024. This expense takes into account
$0.6 million of withholding tax paid on dividends received from the subsidiary and $0.6 million of unused
tax losses for which no deferred taxes were recognized. The taxable income is also impacted by the
variance throughout the period of the Peruvian Sol against the US$ 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.
Q4-2024 Quarterly Results
• In Q4-2024, the overall gold price was stable compared to an increase in Q4-2023 which had positively
impacted the Q4-2023 financial performance.
• Total sales amounted to $73.1 million compared to $65.6 million in Q4-2023. The $7.5 million increase
is explained by a higher average gold price (+$18.6 million), partially offset by lower quantities of gold
ounces sold (-$11.1 million) due to lower grades of ore processed.
Three-month periods
ended December 31,
For the years ended
December 31,
(in $'000) 2024 2023 2024 2023
Sales 73,060 65,556 284,405 250,189
Cost of sales (66,748) (57,818) (248,608) (219,989)
Gross operating margin 6,312 7,738 35,797 30,200
General and administrative expenses (2,434) (2,082) (8,305) (7,096)
Other projects expenses (516) (396) (1,377) (1,005)
Operating income 3,362 5,260 26,115 22,099
Financial income net of expenses 253 207 846 750
Foreign exchange gain (loss) (30) 55 (206) 98
Income before income taxes 3,585 5,522 26,755 22,947
Current income tax expense (1,813) (2,166) (9,990) (8,311)
Deferred income tax (expense)
recovery (48) 222 112 432
Net income and comprehensive
income 1,724 3,578 16,877 15,068
Earnings per share
Basic $0.05 $0.09 $0.46 $0.39
Diluted $0.04 $0.09 $0.45 $0.39
• The Q4-2024 tax charge (current and deferred) was negatively impacted by the variance throughout the
period of the Peruvian Sol against the US$ which is the Corporation’s functional currency.
Cash Flows, Working Capital and Liquidity Overview
Investing activities
• In 2024, Dynacor invested $5.2 million in capital expenditure including $1.8 million to increase the tailing
pound capacity. Other capital expenditure investments comprised additions to the plant and purchasing
of rolling stocks. All investments were financed with internally generated cash flow.
• Investing activities also comprise $6.0 million in short -term investments ( marketable securities with
investment periods exceeding 90 days which can be redeemed at any time without penalties).
Financing activities
• In 2024, monthly dividends of CA$0.01167 representing an annual total of CA$0.14 per share were
disbursed for a total consideration of $3.8 million (CA$5.2 million). In 2023, monthly dividends of
CA$0.01 representing a total of CA$0.12 per share were disbursed for a total consideration of
$3.4 million (CA$4.6 million).
• In 2024, 1,244,800 common shares were repurchased under the Corporation’s normal course issuer bid
share buyback program for a total cash consideration of $4.0 million (CA$5.4 million) (1,127,397 shares
for a total cash consideration of $2.9 million (CA$3.9 million) in 2023).
Three-month periods
ended December 31,
For the years ended
December 31,
(in $'000) 2024 2023 2024 2023
Operating activities
Net income adjusted from non -cash
items 2,817 4,416 20,961 18,571
Change in working capital items (16,294) (10,982) (4,826) (8,963)
Net cash from (used) in operating
activities (13,477) (6,566) 16,135 9,608
Investing activities
Acquisition of property , plant and
equipment and others (1,535) (716) (5,157) (6,450)
Short-term investments (5,999) - (5,999) -
Net cash used in investing activities (7,534) (716) (11,156) (6,450)
Repurchase of common shares (141) (2,418) (3,970) (2,891)
Dividends (921) (831) (3,762) (3,399)
Others 33 9 176 10
Net cash from (used in) financing
activities (1,029) (3,240) (7,556) (6,280)
Change in cash during the period (22,040) (10,522) (2,577) (3,122)
Effect of exchange rate changes on cash (93) 1 (85) 8
Cash, beginning of the period 41,952 33,002 22,481 25,595
Cash, end of the period 19,819 22,481 19,819 22,481
Working Capital and Liquidity
• As at December 31, 2024, the Corporation’s working capital amounted to $58.9 million, including
$25.8 million in cash and short -term investments ($50.8 million, including $22.5 million in cash at
December 31, 2023).
Consolidated Statement of Financial Position
As at December 31, 202 4, total assets amounted to $ 125.3 million ($ 111.8 million as at
December 31, 2023). Major variances since year-end 2023 come from the significant increase in accounts
receivables (sales tax mainly collected subsequent to year-end).
(in $'000)
As at
December 31,
As at
December 31,
2024 2023
Cash 19,819 22,481
Short-term investments 5,999 -
Accounts receivable 23,747 13,328
Inventories 29,376 31,925
Prepaid expenses and other assets 361 277
Property, plant and equipment 26,160 24,590
Right-of-use assets 1,070 613
Exploration and evaluation assets 18,570 18,566
Other non-current assets 159 -
Total assets 125,261 111,780
Trade and other payables 18,185 15,357
Asset retirement obligations 3,732 3,724
Current tax liabilities 2,125 1,799
Deferred tax liabilities 565 677
Lease liabilities 1,108 636
Share unit plan liabilities 389 -
Shareholders' equity 99,157 89,587
Total liabilities and Shareholders’ equity 125,261 111,780
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 t he 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 materially 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