Dynacor Outlines Plans for Major Growth

March 10, 2025

Last week, Dynacor Group (DNGDF) released its 2025 forecast, with plans to increase sales by 27% to a record $345M-375M and $3M in net income. In January, the company reported record sales of $284M in 2024, representing a nearly 14% yr/yr jump, as gold prices rose 26% to all-time highs.

The company hopes to further boost sales by upping production to 120,000-130,000 ounces, contingent on the gold price staying in the range of $2,800-3,000. Dynacor President and CEO Jean Martineau also reiterated his goal of reaching $1 billion in sales by 2030 by expanding its business model outside of Peru.

As part of its 5-year strategic plan, the company plans to open 4 new mills in Senegal, Cote d'Ivoire, Ghana and South America (likely Peru or Ecuador) and has already taken or is planning to take significant steps to achieve these goals:

- 6 geological studies have been conducted in Senegal since 2018 to determine viability.

- An environmental impact study was done in Senegal in 2024.

- Construction work on a new 50 tonne/day plant to process ore from artisnal miners in Senegal is set to commence in the first half of 2025 and will be completed in Q1 2026 at a cost of $ 4M.

- Construction of a 300 tonnes/day plant in Senegal will ensue with a $23-$25 million investment.

- Prep work for an environmental impact study is planned to begin in Cote d'Ivoire and/or Ghana.

- Expansion plans in Peru and/or Ecuador will be evaluated.

While DNGDF is up over 200% since our 2021 buy alert, we think the stock's low float, the continuation of monthly dividend payments, the high gold price, and the company's plans to move quickly to increase gold production by 2030 are all good reasons to continue to hold or add to positions this year. Shares reached a record high of $4.69 on February 10 but are now down 23% since then, even though gold is holding above $2,900, representing a potential buying opportunity at today's share price.