MONTREAL, Aug. 11, 2025 (GLOBE NEWSWIRE) — 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 plant 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 headwinds 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:
- Sales of $79.7 million, the second-highest quarterly sales.
- EBITDA2 of $5.7 million.
- Non-recurring expenses totaling $1.4 million, including $0.8 million in non-cash items.
- Net income of $3.5 million.
- Operating cash flows before changes in working capital items of $4.2 million.
- Cash gross operating margin of $332 per AuEq ounce sold3.
- Results benefited from the favourable variance of both the Canadian dollar and the Peruvian sol against the US dollar.
- Operational:
- Lower ore supply than the historical standard partially attributable to temporary government-mandated curfew on artisanal miners (ASM) in northern Peru and planned maintenance.
- Processed 38,152 tonnes of ore (419 tpd).
- 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.
Q2-2025 Highlights (suite)
- International expansion plans:
- Senegal: Placed orders for key pieces of equipment and progressed work for construction of the 50-tpd pilot plant.
- Ghana: Signed a 12-month Memorandum of Understanding (MOU) joint venture agreement with partner Ansong Askew Ltd.
- 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
| 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 | ||
- 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
| Three-month periods ended June 30, |
Six-month periods ended June 30, |
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| (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 | ) | ||||||