Dynacor Reports Record Sales and EBITDA in Q3-2025
Dynacor Reports Record Sales and EBITDA in Q3-2025
Montreal, November 13, 2025 – Dynacor Group Inc. (TSX: DNG) ( “Dynacor” or the “Corporation”)
today announced its unaudited financial and operational results1 for the third quarter ended September 30,
2025.
“This was a solid third quarter that reflects our team’s resolve to deliver strong operational results that are
more representative of the usual Dynacor performance,,” said Jean Martineau, President & CEO. “Despite
ore supply disruptions in the first two weeks in the quarter, we are well on track to meet or beat our full-year
production and financial guidance. The higher gold prices and consistent mill performance generated a
number of new financial records including record quarterly EBITDA. With our strong cash flow generation
and strengthened management team, we continue to cultivate shareholder value through steady execution
of our growth projects. We expect to build on this momentum in the fourth quarter and going into 2026.”
Q3-2025 Highlights
• Robust operations despite two weeks of artisanal miner road blockades in July :
o Processing at full capacity from mid-July (429 tpd), for a total of 39,479 tonnes of ore.
o Production of 28,948 AuEq ounces, in line with recent historical levels.
• Strong financial results due to higher realized gold prices:
o Record sales of $100.5 million in Q3-2025 compared to $76.2 million in Q3-2024.
o Gross margin of $11.7 million (11.7% of sales) in Q3-2025, compared to $10.3 million (13.6% of
sales) in Q3-2024.
o Record EBITDA2 of $9.0 million, compared to $8.9 million in Q3-2024.
o Non-recurring expenses totaling $0.6 million.
o Net income of $5.5 million, compared to $5.9 million in Q3-2024.
o Operating cash flows before changes in working capital items of $6.6 million, similar to Q3-2024.
o Record cash gross operating margin of $440 per AuEq ounce sold3.
1 All figures are in US dollars unless stated otherwise. All variance % are calculated from rounded figures. Some additions might be
incorrect due to rounding.
2 EBITDA: “Earnings before interest, taxes and depreciation” is a non-IFRS financial performance measure with no standard definition
under IFRS Accounting Standards. It is therefore possible that this measure may not be comparable with a similar measure of another
corporation. The Corporation uses this non-IFRS measure as an indicator of the cash generated by the operations and allows investor
to compare the profitability of the Corporation with others by canceling effects of different assets basis, effects due to different tax
structures as well as the effects of different capital structures. EBITDA is calculated on page 15 of the Corporation’s MD&A for the
three- and nine-month periods ended September 30, 2025, with additional information provided in section 18, “Non-IFRS Measures.”
3 Cash gross operating margin per AuEq ounce is in US$ 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 may not be comparable with a similar
measure of another company. Cash ross operating margin per AuEq ounce is calculated on page 13 of the Corporation’s MD&A for
the three - and nine -month periods ended September 30, 2025, with additional information provided in section 18, “Non -IFRS
Measures.”
Q3-2025 Highlights (continued)
• Advancement of high-return expansion projects:
o Ecuador: On July 14, 2025, the Corporation completed the acquisition of 100% of the shares of
the Svetlana processing plant and related assets for a total consideration of $9.75 million. The
acquisition includes plans to upgrade and ramp up the facility to a production capacity of 300
tonnes per day (tpd), before progressively increasing to 500 tpd. Currently, first ore is expected
to be processed in Q4-2026.
o Since then, the Dynacor team has been integrating the new subsidiary in Ecuador on three fronts:
corporate, operational and community.
o The corporate framework continues to advance particularly with regard to its banking,
fiscal and legal systems.
o Technical assessments of the plant have been conducted, and the request for quote
(RFQ) process has begun.
o A community participation session was completed in September, apprising the Svetlana
host community of Dynacor’s environmental management plan.
o Senegal: Construction of the 50 -tpd pilot plant continues on schedule with first shipments of the
modular plant expected on site in mid-November.
o Processing of first ore is expected in late Q1-2026.
o Ghana: Ongoing preparation of formal proposals on Dynacor’s proposed operations for Goldbod
and Ghana’s government agencies.
• Continued focus on shareholder returns: Disbursed a monthly dividend representing CA$0.16 per
share on an annual basis or a 3.46% dividend yield based on the current share price.
• Dispensed 4,781 hours of health, safety and environment training to the Veta Dorada team.
2025 Outlook versus Actuals
The Corporation confirms its following 2025 revised guidance, as issued on August 11, 2025:
• Sales between $340-$350 million (YTD $260.2 million).
• Net income between $14-$17 million (YTD $14.1 million).
• Production between 105,000-110,000 AuEq ounces (YTD 80,953 AuEq ounces).
• Other project expenses of $3 million to achieve the 2025 growth plan (YTD $1.2 million).
The Corporation anticipates that total 2025 capital expenditures will come in below its revised guidance of
approximately $12 million in Peru and Senegal, and $17 million in Ecuador, as certain planned investments
are expected to be completed in 2026.
Guidance is based on the following assumptions:
(1) No increase in processing capacity and steady ore supply.
(2) Average market gold price of between $3,200 and $3,400 per ounce.
(3) The ore grade supplied may vary with the evolution of the gold price and the purchasing conditions.
As most of the Corporation's cost of sales relate to the daily purchasing of ore, its margin and net income
are impacted by the inventory level at quarter-start, the gradual path of the gold price, and by the ore supply
in the period.
Operations Overview
• During Q3-2025, despite ore supply in the first half of July being impacted by roadblocks erected by
protesting artisanal miners, the Corporation processed over 39,000 tonnes (429 tpd on average). This
is in comparison to 519 tpd in Q3-2024 when processing throughput had temporarily been increased by
about 10% to 550 tpd . Excluding the temporary disruption caused by the roadblocks, the Corporation
would have processed over 43,000 tonnes (472 tpd on average), in line with historical processing levels.
• Year-to-date production was also im pacted by the lower tonnes processed in Q2 -2025 due to curfews
imposed on artisanal miners in northern Peru and the supply of lower-grade ore in Q1-2025.
Financial Overview
Q3-2025 Quarterly Results
• During Q3 -2025, the gold price increased from approximately $ 3,300/oz in August to approximately
$3,700/oz in September. This positively impact ed the Q 3-2025 financial performance , particularly in
September.
• Total sales amounted to $ 100.5 million compared to $ 76.2 million in Q3-2024. The $ 24.3 million
increase is explained by the higher average sales gold price (+$ 29.0 million), partially offset by lower
quantities of gold ounces sold (-$4.7 million) due to the lower tonnage of ore processed.
Three-month periods
ended September 30,
Nine-month periods
ended September 30,
2025 2024 2025 2024
Volume processed (in tonnes) 39,479 47,721 120,973 134,662
Tonnes per day 429 519 443 491
AuEq ounces produced 28,948 30,002 80,953 90,135
Three-month periods
ended September 30,
Nine-month periods
ended September 30,
(in $'000) (unaudited) 2025 2024 2025 2024
Sales 100,515 76,181 260,189 211,345
Cost of sales (88,793) (65,838) (232,345) (181,860)
Gross operating margin 11,722 10,343 27,844 29,485
General and administrative expenses (3,513) (2,040) (9,232) (5,871)
Other project expenses (234) (320) (1,225) (861)
Operating income 7,975 7,983 17,387 22,753
Financial income net of expenses 219 254 731 611
Write-off of exploration and evaluation
assets - - (8) (18)
Foreign exchange gain (loss) 13 8 1,678 (176)
Income before income taxes 8,207 8,245 19,788 23,170
Current income tax expense (2,914) (2,759) (6,103) (8,177)
Deferred income tax (expense) recovery 163 385 389 160
Net income and comprehensive
income 5,456 5,871 14,074 15,153
Earnings per share
Basic $0.13 $0.16 $0.34 $0.41
Diluted $0.12 $0.16 $0.33 $0.41
Q3-2025 Quarterly Results (continued)
• The Q3-2025 gross operating margin reached $11.7 million (11.7% of sales) compared to $10.3 million
(13.6% of sales) in Q3-2024. Both the level and the trend in the gold price impact our gross operating
margin. Gross operating margin in Q 3-2025 was also impacted by non -recurring expenses, including
reorganization expenses.
• General and administrative expenses totaled $3. 5 million in Q 3-2025 compared to $2. 0 million in
Q3-2024. T he increase is primarily attributable to the expansion of the management team , higher
salaries to reinforce management capacity and processes in the context of its international expansion
and non-recurring expenses related to reorganization expenses.
• Other projects represent the expenses incurred by the Corporation to duplicate its unique business
model in the same or other jurisdictions. These costs are expensed as incurred until the projects reach
the construction stage, at which point they are capitalized.
• A $2.8 million income tax expense was also recorded during Q3-2025, similar to the prior year. The
effective tax rate continues to be influenced by the variance throughout the period of the Peruvian sol
against the US$ , 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.
Q3-2025 Year-To-Date Results
• During the nine-month period ended September 30, 2025, the gold price increased from approximately
$2,700/oz in January to approximately $3, 700/oz in September, which positively impacted the
Corporation’s financial results for the period.
• Total sales for the nine-month period ended September 30, 2025, amounted to a record $260.2 million,
compared to $ 211.3 million for the same period in 2024. The $ 48.9 million increase is explained by
higher average gold price (+$ 75.2 million), partially offset by lower quantities of gold ounces sold
(-$26.3 million).
• On a year-to-date basis, both the gross operating margin and general and administrative expenses were
impacted by non -recurring expenses totaling $ 2.4 million, including $0. 8 million in non -cash items,
related to reorganization and asset rationalization activities, as well as costs associated with the special
and annual shareholder meetings held in Q2-2025.
Cash Flows, Working Capital and Liquidity Overview
Investing activities
• On July 14, 2025, the Corporation completed the acquisition of 100% of the shares of the Svetlana
processing plant and related assets for a total consideration of $9.75 million and incurred transaction
costs of $0.2 million.
• In Q3-2025, Dynacor invested $ 3.2 million in capital expenditure of which $1.7 million was applied
toward the construction of the ore -processing pilot plant in Senegal and $0.9 million in Peru, mainly to
maintain or improve plant efficiency.
• The Corporation will primarily use the remaining proceeds from the issuance of common shares in
Q1-2025 to fund the construction of the pilot plant in Senegal.
Working Capital and Liquidity
• As at September 30, 202 5, the Corporation’s working capital amounted to $ 77.6 million, including
$36.9 million in cash ($58.9 million, including $2 5.8 million in cash and short-term investments as at
December 31, 2024).
• Higher gold prices contributed to stronger sales, while also increasing working capital requirements,
mainly due to higher sales tax receivables and inventories.
(in $'000) (unaudited)
Three-month periods
ended September 30,
Nine-month periods
ended September 30,
2025 2024 2025 2024
Operating activities
Net income, adjusted for non-cash items 6,601 6,678 16,556 18,144
Changes in working capital items (12,947) 3,665 (6,110) 11,468
Net cash from (used in) operating activities (6,346) 10,343 10,446 29,612
Investing activities
Acquisition of the Svetlana plant (9,948) - (9,948) -
Change in short-term investments 2,998 - 5,998 -
Acquisition of property, plant and
equipment, net of proceeds of disposition
and other (3,262) (1,322) (5,384) (3,622)
Net cash from (used in) investing activities (10,212) (1,322) (9,334) (3,622)
Financing activities
Issuance of common shares - - 20,433 -
Repurchase of common shares (541) (934) (1,703) (3,829)
Dividends paid (1,219) (934) (3,543) (2,841)
Other 104 19 178 143
Net cash from (used in) financing activities (1,656) (1,849) 15,365 (6,527)
Change in cash during the period (18,214) 7,172 16,477 19,463
Effect of exchange rate fluctuations on
cash (297) 46 581 8
Cash, beginning of the period 55,388 34,734 19,819 22,481
Cash, end of the period 36,877 41,952 36,877 41,952
Consolidated Statement of Financial Position
As at September 30, 202 5, total assets amounted to $ 166.6 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; the increase in accounts receivable due to the
timing of trade receivable collections ; and additions to property, plant and equipment stemming from the
acquisition of the Svetlana processing plant . The increase in total liabilities mainly results from the
recognition of asset retirement obligations recorded as part of the Svetlana acquisition.
(in $'000) (unaudited) As at September 30, As at December 31,
2025 2024
Cash 36,877 19,819
Short-term investments - 5,999
Accounts receivable 30,941 23,747
Inventories 29,182 29,376
Prepaid expenses and other assets 961 361
Current tax assets 1,040 -
Property, plant and equipment 48,375 26,160
Exploration and evaluation assets 18,575 18,570
Right-of-use assets 646 1,070
Other non-current assets - 159
Total assets 166,597 125,261
Trade and other payables 21,321 18,185
Asset retirement obligations 15,133 3,732
Current tax liabilities - 2,125
Deferred tax liabilities 176 565
Lease liabilities 689 1,108
Share unit plan liabilities 493 389
Shareholders' equity 128,785 99,157
Total liabilities and shareholders’ equity 166,597 125,261
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 the fast -growing artisanal mining industry. By
focusing on 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 is expanding 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