Dynacor Advances Expansion Projects, Ecuador Plant Rehabilitation 65% Complete

Dynacor Group Inc. (DNG) released an operational update covering its projects in Ecuador, Senegal, and Peru, noting that no revenue, margin, cost-per-ounce, or cash flow figures were disclosed.

In Ecuador, the Svetlana project is 65% complete overall and remains on time and on budget. Milling equipment installation is fully complete, while the crushing circuit is 85% finished. Mill feed is nearly 65% complete, leaching operations are at approximately 70%, and apron support fabrication has begun. As of August 30, 2026, the project has incurred US$9.5 million against a 2026 capital budget of US$22–$25 million, representing roughly 38–43% of the budget spent at the 65% completion mark.

Pre-commissioning for Svetlana is planned for October, with first ore feed scheduled for the same month. Commissioning is expected to continue through the fourth quarter of 2026, targeting an initial gold pour in Q4-2026. The commercialization permit has been approved by the mining regulator ARCOM, while approval from the Ministry of Environment and Energy (MAE) is pending and expected in Q4-2026. Additionally, Dynacor signed an agreement with CNEL EP for a 6-MW grid connection feeding the Svetlana substation, primarily utilizing hydro-backed renewable energy. The geomembrane on the tailings facility has been repaired, and the working tailings storage facility is expected to be operational by month-end.

In Senegal, the Galam project (50 tpd) has completed all commissioning activities and is currently ramping up. The company is sourcing additional stock from new suppliers and making preparations for an inaugural gold pour, with operator positions being filled. No specific date for the gold pour has been provided, and no pour has been reported as having occurred.

At the Veta Dorada project in Peru, ore inventory reduction is ongoing and is expected to reach 75% of the historical average by quarter-end. No production, grade, or cost data was provided for this site.

CEO Daniel Misiano described the execution as successful and stated that expansions will add materially to 2027 production. He added that the company looks forward to providing more visibility on Africa's potential.

Dynacor Group Inc. (DNG) released no new financial information, guidance, or capital plans. The company confirmed that US$9.5 million of the Ecuador budget has been spent. Other developments included the approval of the ARCOM commercialization permit, the signing of a CNEL EP 6-MW grid agreement, the completion of milling at Svetlana, and the completion of commissioning in Senegal.

The most significant market-relevant disclosure was the absence of a date for the Senegal inaugural gold pour. The event was previously targeted for August 2026 and then Q3-2026, but no new timeline was provided.

The confirmation that Svetlana is "on time and on budget," with US$9.5 million spent against a US$22-$25 million budget, serves as a rebuttal to public allegations that Ecuador capital expenditures have ballooned to roughly US$30 million, triple earlier estimates.

The stock has fallen from C$6.61 on the day of the Q2 print, Aug 13, 2026, to C$5.32 on Sept 23, 2026, a decline of about 19.5%. This follows a -9.2% single-day reaction on Aug 14. The market has already repriced the margin problem, and an as-expected construction update will not reverse that trend.

Dynacor Group Inc. (TSX: DNG), headquartered in Montreal and founded in 1996, operates a business model centered on purchasing and processing gold-bearing ore from formalized artisanal and small-scale miners. The company produces doré for sale under stringent traceability and audit standards. Its revenue-generating core is the Veta Dorada operation in Chala, Peru, which has supplied effectively all revenue to date. The site reported a throughput of 518 tonnes per day (tpd) in the first quarter of 2026 and 531 tpd in the second quarter of 2026, marking a record output above design capacity.

In July 2025, Dynacor acquired the Svetlana project in Ecuador for US$9.75 million in cash plus US$0.2 million in transaction costs. Operated through subsidiary Sumacor-EC, the asset features a 1,500-tpd plant with a prior restart plan targeting 300 tpd, ramping to 500 tpd. Rehabilitation is 65% complete, with first ore feed scheduled for October 2026 and the first gold pour targeted for the fourth quarter of 2026. Commercial production was previously indicated for the first quarter of 2027.

The company also operates a 50-tpd pilot plant at Galam in Kédougou, Senegal, which has completed commissioning and is currently ramping up. This facility is intended to serve as the blueprint for future commercial plants in Africa. In Ghana, discussions are underway with GoldBod regarding a proposed operating structure, though no agreement has been disclosed. Meanwhile, the Tumipampa gold exploration property in Peru remains in a deferred state, with drilling postponed due to pending permits and community agreements.

On the corporate and ESG front, PX Impact® gold carries a premium from luxury jewellers, with proceeds directed to the Fidamar Foundation for health and education projects in Peruvian artisanal mining communities. In terms of scale, the company reported FY2025 sales of US$397.6 million at an average realized price of US$3,494 per ounce, based on 113,791 AuEq ounces produced. Management has publicly targeted more than US$1 billion in sales by 2030, representing a more than 250% increase on 2024 figures.