Dynacor upbeat about preliminary Q4 operating results

Executive Summary

• Dynacor Group Inc. reported preliminary fourth-quarter and full-year 2025 operating results, beating both revised production guidance and initial sales guidance for the third consecutive year.
• The company provided a 2026 outlook projecting sales of $530-$580 million and production of 125,000-135,000 AuEq ounces, driven by new contributions from Ecuador and Senegal.
• Strategic updates include the acquisition and retrofitting of the Svetlana plant in Ecuador (initial production expected Q4-2026) and the advancement of the Senegal pilot plant (first ore expected early Q2-2026).

Key Details

• 2025 Full-Year Performance:
  • Delivered gold-equivalent (AuEq) production of 113,791 ounces, exceeding revised annual production guidance.
  • Generated record sales of $397.6 million, exceeding initial sales guidance.
  • Realized an average price of $3,494 per gold ounce sold.
• Q4 2025 Performance:
  • Produced 32,838 AuEq ounces, representing a 20% increase compared to Q4 2024 and the second-best fourth-quarter result in company history.
  • Improved recoveries and efficiencies due to operational changes implemented during the quarter.
• 2026 Guidance:
  • Sales: $530 million to $580 million.
  • Production: 125,000 to 135,000 AuEq ounces.
  • Net Income: $22 million to $26 million.
• Capital Expenditures (2026):
  • Peru: $6 million to $8 million (sustaining capex, primarily tailings pond and water supply upgrades).
  • Senegal: $4 million to $5 million (EPC costs for pilot plant/lab and mobile fleet).
  • Ecuador: $22 million to $25 million (includes $7 million deferred from 2025; bulk relates to Svetlana plant upgrades).
  • Other: $0.5 million to $1 million (West Africa projects).
• Project Updates:
  • Ecuador: Acquired Svetlana plant; retrofitting underway. Initial production expected in Q4-2026. Operations to relaunch at 300 tonnes per day, with commercial production expected in Q1-2027.
  • Senegal: Pilot plant advanced from planning to on-site equipment delivery. First ore expected early Q2-2026. Signed an MOU with a potential joint venture partner and began discussions with Ghana's GoldBod.
• Assumptions for 2026 Outlook:
  • Gold price assumption: $4,200 per ounce.
  • No increase in installed operating capacity in Peru; steady ore supply assumed.
  • Ore grade may vary based on gold price and purchasing conditions.
• Shareholder Returns:
  • Monthly dividends of 1.333 cents per common share (16 cents annually).
• Financial Reporting:
  • Full-year 2025 financial results to be reported on or about March 26, 2026.

Notable Quotes

• "Strong gold-equivalent production of 32,838 ounces in Q4-2025 helped deliver another record year for sales, while beating our revised annual production guidance. The commitment and quality of our team enabled us to rebound quickly from adverse Q2-Q3 ore supply events and deliver our strongest production quarter of the past two years." — Jean Martineau, President and CEO
• "Twenty twenty-six marks an important year forward for Dynacor as we begin unlocking the potential of our diversification strategy. With this year's capital expenditure program and material increase in installed capacity, we are positioning the company for long-term growth." — Jean Martineau, President and CEO