Mining & Metals
Dynacor Reports Record Q1 Results and Says "Tracking Its 2026 Guidance"
Dynacor Group (DNG.TO), an ore processing company dedicated to producing gold sourced from artisanal miners, on Thursday reported record results for the first quarter due to "strong operations and higher realized gold prices" and said it is "tracking its 2026 guidance".For Q1, the company had record net income of $7.323 million or $0.17 basic and diluted, compared to $5.149 million or $0.13 for both in Q1 2025.Among other highlights, Dynacor cited record sales of $154.1 million compared to $80.0 million in Q1 2025; record gross margin of $17.4 million (11.3% of sales), compared to $9.0 million (11.2% of sales); and record EBITDA of $13.6 million, compared to $7.3 million in Q1-2025, including $0.8 million in non-recurring expenses.The company cited at-capacity processing for a total of 46,655 tonnes of ore; and production of 32,791 AuEq ounces, setting a first-quarter historical record.It also cited "steady execution" of international expansion; continued focus on shareholder returns, a disbursed a monthly dividend representing C$0.16 per share on an annual basis or a 2.7 % dividend yield based on the current share price; and lanned CEO succession, with Jean Martineau to step down following June 2026 annual general meeting and be succeeded by Daniel Misiano, currently Chief Operating Officer."We delivered a strong start to the year that tracks both our operational and expansion plans," said Jean Martineau, President & CEO. "Operations maintained strong ore supply momentum, which, coupled with higher recoveries, resulted in record first-quarter production volumes. Supported by the higher gold pricing, this operational outperformance translated into record earnings per share and operating cash flow. With initial production from two new plants set to come online this year, including the first from Senegal later this quarter, we remain firmly on track to deliver stronger production in the second half of the year and achieve our full-year guidance."On 2026 outlook versus actuals, Dynacor said at quarter-end, its performance was tracking its 2026 guidance: sales between $530-$580 million (YTD $154.1 million); net income between $22-$26 million (YTD $7.3 million); production between 125,000-135,000 AuEq ounces (YTD 32,791 AuEq ounces); capital expenditure of $32.5-$39 million to achieve the 2026 growth plan and sustain Peru operations (YTD $3.9 million) of which $22-$25 million in Ecuador, $6-$8 million in Peru; and $4-$5 million in Senegal and $0.5-$1 million in other jurisdictions.A number of assumptions were made in preparing the 2026 outlook, the company noted.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, it also noted.Shares in Dynacor edged up $0.02 or 0.3% in Canada yesterday.
$DNG.TO
