iolite: Dynacor's AGM Reaffirms Key Concerns - and Leaves More Questions Than Answers

• iolite Partners Ltd., ~7% shareholder in Dynacor, issued a blistering post-AGM statement on June 23, 2026, cataloguing governance, operational, and financial transparency failures.
• The release asserts that despite a historic gold rally and ~US$500M in record sales, Dynacor’s shares languish at 18-month lows; EBIT should be ~US$50M but is materially lower.
• It reveals previously undisclosed mass dismissals: nearly the entire senior executive team at the sole operating subsidiary and ~50% of the 550-person workforce replaced.
• The company’s Northern Peru project – including crusher and ore lab – was sold post-capital raise, yet management called the assets “not strategic”; iolite argues they were critical for traceability and margins.
• Senegal plant costs ballooned from ~US$2M to over US$6M; first production delayed past Q2 2026; original partners (FONSIS, KN Equipments) have departed. Ecuador plant capex estimates at ~US$30M plus US$12M acquisition cost, roughly triple initial projections – first production late 2026.
• 2025 and 2026 production forecast lower than 2024; new projects to add only 75–100 tonnes/day in four years.
• iolite demands an independent chair, forensic operational/governance review, full disclosure of the company’s secretive “independent investigation,” and direct independent shareholder board representation.
• The AGM was virtual-only, shareholder list delivery delayed past regulatory limit, and motions for independent oversight were dismissed by the chair.

The iolite release surfaces multiple material negative items that, if accurate, indicate deeper operational and governance risks than the market has priced in. Key points: - Hidden workforce turmoil: Replacing half the workforce at the sole cash-flowing asset without disclosure constitutes a fundamental information asymmetry. - Project cost overruns and delays: Senegal costs tripled and Ecuador costs tripled relative to earlier signals, calling capital-allocation discipline into question. - Asset sales: The disposal of Northern Peru crusher and lab post-capital raise – assets described by iolite as critical for traceability – raises the possibility of a hidden operational pivot or impairment. - Cash position trending lower: Cash was $31M at March 2026, down from $55M mid-2025, with large capex commitments ahead. - Secret investigation: The board’s refusal to share scope or conclusions of an external review undermines trust. - Unrealized potential: With gold averaging over $4,000/oz, the company’s inability to convert price into meaningful operating income (Q1 2026 op income $13.5M) supports the activist’s contention that underlying profitability is well below feasible levels. The stock closed June 23 at $6.25, marginally above the June 19 close of $6.13, suggesting the full weight of iolite’s allegations had not yet been absorbed (the release crossed after the close). This statement has the potential to reprice the stock downward as doubts about the quality of earnings and governance credibility intensify.

Dynacor Group Inc. is a gold ore processing company serving artisanal and small-scale miners, primarily through its Chala plant (Veta Dorada) in Peru. It produced 113,791 AuEq oz in 2025. It is expanding into Senegal (pilot plant) and Ecuador (acquired Svetlana plant). The company also holds the Tumipampa exploration property in Peru. Revenue is entirely from sale of dore from processed artisanal ore. It markets traceable gold under the PX Impact label and operates community foundation Fidamar.