Dynacor Reports Q2-2025 Results and Advances International Expansion Plan
Dynacor Reports Q2-2025 Results and Advances International
Expansion Plan
Montreal, August 11, 2025 – Dynacor Group Inc. (TSX: DNG) (“Dynacor” or the “Corporation”) today
announced its unaudited financial and operational results1 for the second quarter ended June 30, 2025,
and achievement of key milestones for its 2030 international expansion plan.
“In the second quarter of 2025, Dynacor achieved important milestones that position us well for the future,”
said Jean Martineau, President & CEO. “While advancing work on the pilot plant in Senegal, we carried out
positive due diligence for the Svetlana p lant in Ecuador and signed an MOU with a partner in Ghana. The
acquisition of Svetlana is a particularly important step towards our 2030 goal of reaching $1 billion in sales.
At the same time, operations saw an unseasonably soft quarter with ore supply hea dwinds in the latter
months. Given the slow quarter and external factors extending into mid -July, we have updated our annual
production and sales guidance. We are already seeing improvement in the third quarter and anticipate a
stronger second half for Veta Dorada.”
Q2-2025 Highlights
• Financial:
o Sales of $79.7 million, the second-highest quarterly sales.
o EBITDA2 of $5.7 million.
o Non-recurring expenses totaling $1.4 million, including $0.8 million in non-cash items.
o Net income of $3.5 million.
o Operating cash flows before changes in working capital items of $4.2 million.
o Cash gross operating margin of $332 per AuEq ounce sold3.
o Results benefited from the favourable variance of both the Canadian dollar and the Peruvian sol
against the US dollar.
• Operational:
o Lower ore supply than the historical standard partially attributable to temporary
government-mandated curfew on artisanal miner s (ASM) in northern Peru and planned
maintenance.
o Processed 38,152 tonnes of ore (419 tpd).
o Produced 24,955 AuEq ounces.
• Solid liquidity with $58.4 million in cash and short-term investments compared to $25.8 million at year-
end 2024.
1 All figures are in US dollars unless stated otherwise. All variance % are calculated from rounded figures. Some additions might be
incorrect due to rounding.
All figures are in US dollars unless stated otherwise. All variance % are calculated from rounded figures. Some additions mig ht be
incorrect due to rounding.
2 EBITDA: “Earnings before interest, taxes and depreciation” is a non-IFRS financial performance measure with no standard definition
under IFRS Accounting Standards. It is therefore possible that this measure could not be comparable with a similar measure of another
corporation. The Corporation uses this non-IFRS measure as an indicator of the cash generated by the operations and allows investor
to compare the profitability of the Corporation with others by canceling effects of different assets basis, effects due to different tax
structures as well as the effects of different capital structures. EBITDA is calculated on p .15 of the MD&A. See the “Non -IFRS
Measures” section 18 of the Corporation’s MD&A for the three- and six-month periods ended June 30, 2025.
3 Cash gross operating margin per AuEq ounce is in US$ 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 18 of the Corporation’s MD&A.
Q2-2025 Highlights (suite)
• International expansion plans:
o Senegal: Placed orders for key pieces of equipment and progressed work for construction of the
50-tpd pilot plant.
o Ghana: Signed a 12-month Memorandum of Understanding (MOU) joint venture agreement with
partner Ansong Askew Ltd.
o Ecuador: Subsequent to quarter -end, completed due diligence and signed a Share Purchase
Agreement to acquire 100% of the shares of the Svetlana processing plant and assets for
$9.75 million.
• Disbursed a monthly dividend representing CA$0.16 per share on an annual basis or a
3.2% dividend yield based on the current share price.
• Dispensed 8,198 hours of health, safety and environment training to the Veta Dorada team.
• Released 2024 ESG report, the fourth in line with Global Reporting Initiative (GRI) standards.
2025 Outlook versus Actuals
For 2025, the Corporation has updated its production forecast, reflecting the disruption to its ore supply in
Q2 from the government-mandated curfew on artisanal miners in certain regions of northern Peru and the
impact on initial Q3 production from temporary road blockades. As a result, the Corporation’s sales for 2025
are expected to come in on the lower end of the initial guidance range.
Initial 2025 Guidance Updated 2025 Guidance H1-2025
Sales $345-$375 million $340-$350 million $159.7 million
Net income $14-$17 million No Change $8.6 million
Production (AuEq oz) 120-130,000 oz 105-110,000 oz 52,005 oz
Capital expenditures
(Peru & Senegal) $15 million $12 million $2.6 million
Capital expenditures
(Ecuador) - $17 million¹ -
Other project expenses $3 million No Change $1 million
¹ Includes $9.75 million to purchase the Svetlana plant in Ecuador, disbursed after quarter-end. Acquisition
of the plant was funded with the proceeds from the issuance of common shares in Q1 -2025.
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 in initial guidance has been
updated to between $3,200 and $3,400 per ounce.
(3) The ore grade supplied may vary with the evolution of the gold price.
Operations Overview
• Despite a curfew imposed on some regions in northern Peru during the quarter and planned
maintenance, the Corporation processed more than 38,000 tonnes during Q2 -2025 which represents
an average of 419 tpd.
• The Q2-2025 production compared to Q2-2024 was mainly impacted by lower tonnages processed while
the Q1-2025 production was mainly impacted by the supply of lower grade ore.
Financial Overview
Q2-2025 Quarterly Results
• A higher inventory level at the beginning of Q2 -2024 allowed the Corporation to benefit more from the
timing of higher gold prices, whereas a lower inventory level at the beginning of Q2 -2025 reduced the
positive impact.
• Total sales amounted to $79.7 million compared to $67.4 million in Q2-2024. The $12.3 million increase
is explained by the higher average gold price realised (+$23.4 million), partially offset by lower quantities
of gold ounces sold (-$11.1 million) due to the lower tonnage of ore processed.
Three-month periods
ended June 30,
Six-month periods
ended June 30,
2025 2024 2025 2024
Volume processed (in tonnes) 38,152 42,935 81,493 86,941
Tonnes per day 419 472 450 478
AuEq ounces produced 24,955 28,364 52,005 60,133
Three-month periods
ended June 30,
Six-month periods
ended June 30,
(in $'000) (unaudited) 2025 2024 2025 2024
Sales 79,706 67,431 159,674 135,164
Cost of sales (72,560) (57,437) (143,552) (116,022)
Gross operating margin 7,146 9,994 16,122 19,142
General and administrative expenses (3,315) (2,127) (5,719) (3,831)
Other project expenses (517) (327) (991) (541)
Operating income 3,314 7,540 9,412 14,770
Financial income net of expenses 302 186 512 357
Write-off of exploration and evaluation
assets (8) (18) (8) (18)
Foreign exchange gain (loss) 1,390 (125) 1,665 (184)
Income before income taxes 4,998 7,583 11,581 14,925
Current income tax expense (1,416) (2,841) (3,189) (5,418)
Deferred income tax (expense) recovery (113) (241) 226 (225)
Net income and comprehensive
income 3,469 4,501 8,618 9,282
Earnings per share
Basic $0.08 $0.12 $0.21 $0.25
Diluted $0.08 $0.12 $0.21 $0.25
Q2-2025 Quarterly Results (continued)
• The Q2-2025 gross operating margin reached $ 7.1 million (9.0% of sales) compared to $ 10.0 million
(14.8% of sales) in Q2-2024. Both the level and the movement in the gold price impact our gross
operating margin. Gross operating margin in Q2 -2025 was also impacted by non -recurring expenses,
including reorganization expenses and asset rationalization expenses.
• General and administrative expenses totaled $3.3 million in Q2 -2025 compared to $2.1 million in Q2 -
2024. The increase is primarily attributable to the expansion of the management team and higher
salaries to reinforce management capacity and processes in th e context of its international expansion
and non-recurring expenses related to the special and annual shareholder meetings held in Q2 -2025.
• Other projects represent the expenses incurred by the Corporation to duplicate its unique business
model in the same or other jurisdictions.
• The foreign exchange gain is mainly attributable to the variance throughout the period of the
Canadian dollar against the US dollar.
• A $1.5 million income tax expense was also recorded during Q2-2025. The decrease as a percentage
of the net income before taxes is notably explained by the variance throughout the period of the Peruvian
sol against the US$ which is the Corporation’s functional currency , as well as a non-recurring deferred
tax expense. Future fluctuations will positively or negatively affect the current and deferred tax at the
end of each period.
Q2-2025 Year-To-Date Results
• During the six -month period ended June 30, 2025, the gold price increased from approximately
$2,700/oz in January to approximately $3,400/oz in June, which impacted the Corporation’s financial
results for the period.
• Total sales for the six -month period ended June 30, 2025, amounted to a record $159.7 million,
compared to $135.2 million for the same period in 2024. The $ 24.5 million increase is explained by
higher average gold price (+$ 45.6 million), partially offset by lower quantities of gold ounces sold
(-$21.1 million).
Cash Flows, Working Capital and Liquidity Overview
Investing activities
• In Q2-2025, Dynacor invested $1.3 million in capital expenditure of which $0.8 million was disbursed in
Peru, mainly to maintain or improve plant efficiency . The remaining $0.5 million investment was for the
construction of the ore-processing pilot plant in Senegal.
• The Corporation will use the proceeds from the issuance of common shares in Q1 -2025 to fund the
construction of the pilot plant in Senegal and the acquisition and rehabilitation of the plant in Ecuador .
Working Capital and Liquidity
• As at June 30, 2025, the Corporation’s working capital amounted to $84.7 million, including $58.4 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).
(in $'000) (unaudited)
Three-month periods
ended June 30,
Six-month periods
ended June 30,
2025 2024 2025 2024
Operating activities
Net income, adjusted for non-cash items 4,156 5,815 9,955 11,466
Changes in working capital items (2,849) 3,863 6,837 7,803
Net cash from operating activities 1,307 9,678 16,792 19,269
Investing activities
Change in short-term investments 3,000 - 3,000 -
Acquisition of property, plant and
equipment, net of proceeds of disposition
and other (818) (1,582) (2,122) (2,300)
Net cash from (used) in investing activities 2,182 (1,582) 878 (2,300)
Financing activities
Issuance of common shares - - 20,433 -
Repurchase of common shares (1,162) (143) (1,162) (2,895)
Dividends paid (1,209) (938) (2,324) (1,907)
Other 18 69 74 124
Net cash from (used) in financing activities (2,353) (1,012) 17,021 (4,678)
Change in cash during the period 1,136 7,084 34,691 12,291
Effect of exchange rate fluctuations on
cash 954 (25) 878 (38)
Cash, beginning of the period 53,298 27,675 19,819 22,481
Cash, end of the period 55,388 34,734 55,388 34,734
Consolidated Statement of Financial Position
As at June 30, 202 5, total assets amounted to $ 146.4 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 o f common shares in February 2025 ; the decrease in accounts receivable due to
the timing of exports and collection of sales taxes and the decrease in ore inventory due to the level of ore
supplied compared to the volume processed.
(in $'000) (unaudited) As at June 30, As at December 31,
2025 2024
Cash 55,388 19,819
Short-term investments 2,998 5,999
Accounts receivable 17,952 23,747
Inventories 23,210 29,376
Prepaid expenses and other assets 1,161 361
Current tax assets 445 -
Property, plant and equipment 25,997 26,160
Exploration and evaluation assets 18,575 18,570
Right-of-use assets 662 1,070
Other non-current assets - 159
Total assets 146,388 125,261
Trade and other payables 16,395 18,185
Asset retirement obligations 3,681 3,732
Current tax liabilities - 2,125
Deferred tax liabilities 339 565
Lease liabilities 696 1,108
Share unit plan liabilities 392 389
Shareholders' equity 124,885 99,157
Total liabilities and shareholders’ equity 146,388 125,261
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 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