Dynacor: Strong Fourth Quarter Caps Record Financial Performance and Expanded Growth Pipeline in 2025
Dynacor: Strong Fourth Quarter Caps Record Financial Performance
and Expanded Growth Pipeline in 2025
Montreal, March 26, 2026 – Dynacor Group Inc. (TSX: DNG) (“Dynacor” or the “Corporation”) today
announced its financial and operational results1 for the year and quarter ended December 31, 2025.
“2025 was a transformational year for Dynacor,” said Jean Martineau, President & CEO. “In addition to
record financial results, we successfully delivered key financing, operational, corporate and expansion
milestones, with operational outperformance at year-end. Together, this strengthened foundation enhances
our scale and scope and provides a pathway to increasing long -term stakeholder value. In particular, the
strategic acquisition of the Svetlana plant leverages our Latin American expertise, unlocking synergies and
diversifying our business in a distinct but complementary market. Through integration, streamlined
operations and efficiency ini tiatives, we aim to maximise the value of these two plants over the next two
years.
With no debt, a solid balance sheet, strong operational momentum and a refreshed team, we enter 2026
well-positioned to execute on our growth pipeline."
2025 Highlights¹
• Production of 113,791 gold -equivalent ounces (“AuEq ounces”), exceeding revised annual guidance,
and in line with historical levels.
• Record financial results driven by strong gold pricing and execution:
• Sales of $397.6 million (“M”) in 2025 (increasing 39.8% over 2024) at an average realised gold
price of $3,497/oz.
• Operating cash flows before changes in working capital items of $25.4M ($0.61 per share)
compared to $21.0M ($0.57 per share) in 2024.
• EBITDA2 of $33.0M in 2025 compared to $29.5M in 2024.
o Excluding non-recurring expenses of $4.2M ($1.9M non-cash), EBITDA would have totaled
a record $37.2M.
• Net income of $21.3M compared to $16.9M in 2024 and diluted EPS of $0.50.
• Strategic acquisition of the Svetlana plant in Ecuador secured with Q1-2025 financing of $22.1M
(C$31.6M).
• Fast-tracked international expansion:
• Launched integration and operations upgrade of Svetlana. First ore is scheduled for Q4-2026.
• Advanced the pilot plant in Senegal from planning to on -site delivery of equipment. First ore is
expected in Q2-2026.
• Signed an MOU with a potential joint venture partner and submitted proposal to Ghana’s Gol dBod.
1 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 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 d ue to different tax
structures as well as the effects of different capital structures. EBITDA is calculated on page 20 of the Corporation’s MD&A for the
year ended December 31, 2025, with additional information provided in section 17, “Non-IFRS Measures.”
• Reinforced management capacity and processes in Peru.
• Increased monthly dividends to CA$0.16 per share per year, a 14.3% increase from 2024.
• Strong safety performance, with a 23% improvement in lost-time injury frequency rates (“LTIFR”).
• Preventative measures prioritized, with 31,000 hours of health and safety training provided to the
Veta Dorada team and 8,500 hours to artisanal miners.
• Strengthening of leadership team in Canada: Expansion of Montreal leadership team with key
appointments aimed at strengthening operational excellence and driving business expansion in addition to
a planned CFO transition.
Q4-2025 Highlights
• Record revenue of $137.4M, an 88.0% increase compared to Q4-2024.
• Record operating cash flows before changes in working capital items of $8.8M (or $0.21 per share), a
significant increase compared to $2.8M ($0.08 per share) in the prior-year period.
• Record net income of $7.2M (+$5.5M versus Q4-2024), and diluted EPS of $0.17 (+$0.13 versus Q4-
2024).
• Production of 32,838 AuEq ounces, a 20.0% increase compared to Q4-2024.
“In 2025, we delivered a record financial performance, marking our 15th consecutive year of profitability.
As we transition from one to three managed operations, we are reorganising our business, strengthening
internal controls and processes, and building a new team with the expertise to drive additional efficiencies,”
said Stéphane Lemarié, CFO.
“Our 2025 achievements position us exceptionally well to take full advantage of the current supportive
market environment. While record-high gold has significantly enhanced our financial performance, it also
boosts working capital requirements. O ur 2026 outlook provides for record production and financials,
underpinned by strict capital expenditure controls and operational optimisation to maximise margins and
cash generation. Notwithstanding the record prices and clean balance sheet, c apital allocation will remain
disciplined and directly tied to value drivers – growth, efficiency and resilience.”
International Expansion Update
Senegal – Work on the pilot plant is advancing on schedule with site work continuing in tandem with
shipments on site. Deliveries of the modular plant made so far on site include the Merrill Crowe circuit, jaw
crusher, leaching tanks, offices and laboratory. All remaining equipment is either in Dakar or in transit to it.
Site preparations to host the plant are progressing to plan. Work includes the concrete foundation pour,
tailings pond cells, fencing and the access road. The water borehole to supply the plant has been
completed. Building on its multi-year discussions with key players, the Corporation is in pricing discussions
with local ASM sites to supply the ore feedstock needed for the pilot plant. Processing of first ore remains
on track for Q2-2026.
Ecuador –Since closing the acquisition of the Svetlana processing plant, the Dynacor team has been
integrating the new subsidiary in Ecuador on multiple fronts:
o Process plant retrofit - The detailed engineering contract has been awarded for the remediation of
the historical tailings ponds and the upgrade of the active tailings pond. Dynacor’s self -performing
project team is already on site, which will favour local Ecuador suppliers. The main Requests for
Quotation are being prepared for the critical path activities.
o Dynacor’s subsidiary in Ecuador was set up and named Sumacor-EC after quarter-end, recruitment
of key personnel has begun, and first operational hires are already on site.
2026 Outlook
2026
guidance
Sales (in $M”) 530 - 580
Production (in thousands of AuEq oz) 125 - 135
Net income (in $M) 22 - 26
Capital expenditure
Sustaining capex (in $M) – Peru 6 - 8
Capex (in $M) - Senegal 4 - 5
Capex (in $M) - Ecuador 22 - 25
Capex (in $M) - Other 0.5 - 1
Production
• Production range of 125,000 -135,000 AuEq ounces includes first ore from the Senegal and Ecuador
plants. This estimate assumes that the Svetlana plant processes first ore in Q4-2026 and that operations
exit the year at a throughput rate of approximately 150 tpd. Svetlana operations will be relaunched at
300 tonnes per day, and commercial production is expected to be achieved in Q1-2027. The Corporation
expects to ramp up the facility to a production capacity of 300 tpd, before progressively increasing to
500 tpd.
Capital expenditures
• Sustaining capital expenditures for 2026 in Peru are expected to be approximately $7 million, of which
the majority is related to upgrade of the tailings pond, employee and water supply facilities.
• Capital expenditure in Ecuador includes capital investment of $7 million that was deferred from
2025.The bulk of the expenditure relates to the upgrade of the Svetlana plant tanks, cyclones, tailings
and laboratory. Capex expenditure does not include the rehabilitation of two historical tailings ponds.
• Capital expenditure in Senegal includes a portion of the Engineering, Procurement and Construction
cost for the pilot plant and laboratory, and acquisition of a mobile fleet for the 50 tpd pilot plant.
• Other capex includes capital expenditure on other projects in West Africa.
Net income
• Net income guidance includes the impact of the production ramp-ups in Ecuador and Senegal.
Other capital requirements
• Delivery of shareholder returns through monthly dividends of CA$0.01333 per common share (CA$0.16
annually)
A number of assumptions were made in preparing the 2026 outlook including
• Price of gold: $4,200 per ounce
• No increase in installed operating capacity in Peru and steady ore supply.
• The ore grade supplied may vary with the evolution of the gold price and the purchasing conditions.
Final purchasing conditions in Ecuador and Senegal are yet to be determined.
As most of the Corporation's cost of sales relate to the daily purchasing of ore, its margin (and net income)
is impacted by the inventory level at quarter -start, the favourable, gradual appreciation of the gold price,
and by the ore supply in the period.
Operations Overview
• Q4-2025 saw a strong operational performance, with almost 45,000 tonnes processed and
32,838 AuEq ounces produced, at the top of the historical production range.
• For the year 2025, the Corporation processed over 165,000 tonnes (455 tpd on average), compared to
481 tpd in 2024. Earlier in the year, operations were primarily impacted by a month -long government
curfew on regional ASM and planned maintenance in Q2-2025, as well as two weeks of artisanal miner
road blockades in July 2025.
Financial Overview
Three-month periods
ended December 31,
For the years ended
December 31,
2025 2024 2025 2024
Volume processed (in tonnes) 44,926 41,210 165,898 175,872
Tonnes per day (tpd) 488 448 455 481
AuEq ounces produced 32,838 27,417 113,791 117,552
Three-month periods
ended December 31,
For the years ended
December 31,
(in $'000) 2025 2024 2025 2024
Sales 137,406 73,060 397,595 284,405
Cost of sales (121,942) (66,748) (354,287) (248,608)
Gross operating margin 15,464 6,312 43,308 35,797
General and administrative expenses (4,826) (2,434) (14,058) (8,305)
Other project expenses (1,284) (516) (2,509) (1,377)
Operating income 9,354 3,362 26,741 26,115
Financial income net of expenses (10) 253 721 864
Write-off of exploration and evaluation
assets - - (8) (18)
Foreign exchange gain (loss) 558 (30) 2,236 (206)
Income before income taxes 9,902 3,585 29,690 26,755
Current income tax expense (3,282) (1,813) (9,385) (9,990)
Deferred income tax (expense) recovery 595 (48) 984 112
Net income and comprehensive
income 7,215 1,724 21,289 16,877
Earnings per share
Basic $0.17 $0.05 $0.51 $0.46
Diluted $0.17 $0.04 $0.50 $0.45
2025 Annual Results
• In 2025, the gold price increased from approximately $2, 700/oz in January to approximately $ 4,300/oz
in December which positively impacted the 2025 financial performance.
• Total sales amounted to $397.6 million compared to $284.4 million in 2024. The $113.2 million increase
is explained by a higher average gold price (+$127.4 million), partially offset by lower quantities of gold
ounces sold (-$14.2 million) due to the lower tonnage of ore processed.
• The 2025 gross operating margin reached $ 43.3 million (1 0.9% of sales) compared to $3 5.8 million
(12.6% of sales) in 202 4. The increase reflects the higher average gold price and the upward trend in
gold prices during the year . Gross operating margin in 2025 was partially impacted by non -recurring
items, including reorganization expenses.
• General and administrative expenses totaled to $14.1 million in 2025 compared to $8.3 million in 2024.
The increase is primarily attributable to the expansion of the management team and the higher salaries
reflecting the enhanced management capacity and p rocesses in the context of its international
expansion. The increase is also attributable to non-recurring expenses related both to the reorganization
of the Peruvian subsidiary and to the legal and other costs incurred in relation to the dissident
shareholder.
• Other projects represent the expenses incurred by the Corporation to duplicate its unique business
model in the same or other jurisdictions including the write-off of certain capitalized costs.
• The foreign exchange gain is mainly attributable to the variance throughout the year of the Canadian
dollar against the US dollar.
• An $8.4 million income tax expense was also recorded in 202 5, compared to $9.9 million in 2024. The
income tax expense is impacted by the variance throughout the period of the Peruvian Sol against the
US$ which is the Corporation’s functional currency. Future fluctuations will positively or negatively affect
the current and deferred tax expense at the end of each period.
Q4-2025 Quarterly Results
• During Q4-2025, the gold price increased from approximately $ 4,100/oz in October to approximately
$4,300/oz in December. This positively impacted the Q4-2025 financial performance.
• Total sales amounted to $ 137.4 million compared to $ 73.1 million in Q4-2024. The $ 64.3 million
increase is explained by the higher average sales gold price (+$ 49.7 million), combined with a higher
quantity of gold ounces sold (+$14.6 million).
• The Q4-2025 tax expense (current and deferred) was positively impacted by the variance throughout
the period of the Peruvian Sol against the US$ which is the Corporation’s functional currency.
Cash Flows, Working Capital and Liquidity Overview
Investing Activities
• 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, paid in cash, and incurred
transaction costs of $0.2 million.
• In 2025, Dynacor invested $8.9 million in capital expe nditure of which $3.9 million was applied toward
the construction of the ore-processing pilot plant in Senegal and $4.6 million in Peru, mainly to sustain
or improve plant efficiency.
• The Corporation will primarily use the remaining $1.2 million in proceeds from the issuance of common
shares to complete the construction of the pilot plant in Senegal.
Financing Activities
• In 2025, monthly dividends of CA$0.01 333 representing an annual total of CA$0.1 6 per share were
disbursed for a total consideration of $ 4.8 million (CA$ 6.7 million). In 202 4, monthly dividends of
CA$0.01167 representing a total of CA$0.14 per share were disbursed for a total consideration of
$3.8 million (CA$5.2 million).
• In 2025, 508,500 common shares were repurchased under the Corporation’s normal course issuer bid
share buyback program for a total cash consideration of $1.7 million (CA$2.3 million) (1,244,800 shares
for a total cash consideration of $4.0 million (CA$5.4 million) in 2024).
(in $'000)
Three-month periods
ended December 31,
For the years ended
December 31,
2025 2024 2025 2024
Operating activities
Net income, adjusted for non-cash items 8,802 2,817 25,358 20,961
Changes in working capital items (7,275) (16,294) (13,385) (4,826)
Net cash from (used in) operating activities 1,527 (13,477) 11,973 16,135
Investing activities
Acquisition of the Svetlana plant - - (9,948) -
Change in short-term investments - (5,999) 5,999 (5,999)
Acquisition of property, plant and
equipment, net of proceeds from disposal
and other (3,533) (1,535) (8,917) (5,157)
Net cash used in investing activities (3,533) (7,534) (12,866) (11,156)
Financing activities
Issuance of common shares - - 20,433 -
Repurchase of common shares - (141) (1,703) (3,970)
Dividends paid (1,199) (921) (4,742) (3,762)
Other (100) 33 78 176
Net cash from (used in) financing activities (1,299) (1,029) 14,066 (7,556)
Change in cash during the period (3,305) (22,040) 13,173 (2,577)
Effect of exchange rate fluctuations on
cash (84) (93) 496 (85)
Cash, beginning of the period 36,877 41,952 19,819 22,481
Cash, end of the period 33,488 19,819 33,488 19,819
Working Capital and Liquidity
• As at December 31, 202 5, the Corporation’s working capital amounted to $81.9 million, including
$33.4 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.
Consolidated Statement of Financial Position
As at December 31, 202 5, total assets amounted to $ 181.5 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 increase in accounts receivable and
inventory attributable to higher gold prices; 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 and the increase in
accounts payable reflects the higher inventory levels.
(in $'000) As at December 31, As at December 31,
2025 2024
Cash 33,488 19,819
Short-term investments - 5,999
Accounts receivable 37,221 23,747
Inventories 39,016 29,376
Prepaid expenses and other assets 516 361
Current tax assets 2,158 -
Property, plant and equipment 49,442 26,160
Exploration and evaluation assets 18,575 18,570
Right-of-use assets 625 1,070
Deferred tax assets 418 -
Other non-current assets - 159
Total assets 181,459 125,261
Trade and other payables 30,417 18,185
Asset retirement obligations 14,830 3,732
Current tax liabilities - 2,125
Deferred tax liabilities - 565
Lease liabilities 520 1,108
Share unit plan liabilities 790 389
Shareholders' equity 134,902 99,157
Total liabilities and shareholders’ equity 181,459 125,261
About Dynacor
Dynacor Group is an 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: renmarkfinancial.com