Dynacor Begins Plant Shipments to Senegal; Continues Ecuador Integration

The October 30, 2025 news release provides an operational update on Dynacor's international expansion plans in Senegal, Ecuador, and Ghana. The company reiterated its long-term goal of generating over US$1 billion in sales by 2030.

Key operational details include: - Senegal: Construction of the 50-tonne-per-day (tpd) pilot plant is on schedule. The first shipments of plant equipment have departed from Durban, South Africa. Site work, including the access road and plant area clearing, is now underway. - Ecuador: The integration of the recently acquired plant is progressing, with work being done on the corporate structure, operational refurbishment, and stakeholder engagement, including the environmental management plan approval process.

This news is a routine, incremental update on the company's previously announced expansion plans. While positive in that it confirms projects are proceeding as scheduled, it has a low material impact. The market is already aware of these projects, which were the stated use of proceeds from the controversial C$31.6 million financing in February 2025.

Viewed in the context of the past year's events, this news appears intended to shift investor focus toward future growth and away from two critical, unresolved issues:

1. Deteriorating Core Operations: The Q2-2025 financial results (released August 11) confirmed the claims made by activist shareholder iolite Partners. Despite record sales driven by high gold prices, net income fell 23% YoY, and the gross operating margin dropped significantly. The company was forced to cut its full-year 2025 production guidance by over 12% due to ore supply issues and "planned maintenance" at its sole revenue-generating asset, the Veta Dorada plant in Peru. This operational decline is a major concern that the current news does not address.

2. Ongoing Governance Battle: The company has been embroiled in a public and costly proxy battle with iolite Partners, a ~10% shareholder. iolite has repeatedly criticized management for what it terms "erratic capital management," "eroding margins," and a "credibility collapse." While management won the proxy vote in April 2025, the Chairman was re-elected in June with only 61% support, signaling significant shareholder dissatisfaction. On September 5, 2025, iolite renewed its call for the CEO and Chairman to be replaced following the weak Q2 results.

The current update on expansion progress, while welcome, does not mitigate the substantial risks associated with the operational health of its main cash-generating asset and the ongoing instability at the governance level. The news confirms capital is being deployed as planned, but it fails to reassure investors that the fundamental problems in the core business are being resolved.

Dynacor Group Inc. is an industrial gold ore processor, not a mining company. Its business involves purchasing ore from Artisanal and Small-Scale Miners (ASMs) in Peru and processing it at its wholly-owned Veta Dorada Carbon-In-Leach (CIL) plant. This plant is the company's flagship asset and currently generates 100% of its revenue and profit. The company is now executing an ambitious international expansion plan to become a multi-asset processor, with a stated goal of producing 500,000 ounces of gold and generating US$1 billion in sales by 2030. Key expansion projects are underway in Senegal (pilot plant construction) and Ecuador (plant acquisition).