Dynacor Reports Record Sales and EBITDA in Q3-2025

Core Viewpoint - Dynacor Group Inc. reported solid operational results for Q3-2025, achieving record quarterly EBITDA and strong sales driven by higher gold prices despite initial ore supply disruptions [2][5]. Q3-2025 Highlights - The company processed 39,479 tonnes of ore at an average of 429 tonnes per day, with production of 28,948 AuEq ounces, consistent with historical levels [5][7]. - Record sales reached $100.5 million, a 32% increase from $76.2 million in Q3-2024, attributed to higher gold prices [5][15]. - Gross margin was $11.7 million (11.7% of sales), compared to $10.3 million (13.6% of sales) in Q3-2024 [5][15]. - Record EBITDA of $9.0 million was reported, slightly up from $8.9 million in Q3-2024 [5][15]. - Net income was $5.5 million, down from $5.9 million in Q3-2024 [5][15]. 2025 Outlook - The company confirmed its revised guidance for 2025, expecting sales between $340-$350 million and net income between $14-$17 million [5][6]. - Production is projected to be between 105,000-110,000 AuEq ounces for the year [5][6]. Operational Developments - The acquisition of the Svetlana processing plant in Ecuador for $9.75 million was completed, with plans to upgrade its capacity to 300 tonnes per day [5][20]. - Construction of a 50-tpd pilot plant in Senegal is on schedule, with first ore processing expected in late Q1-2026 [5][20]. - The company continues to focus on shareholder returns, maintaining a monthly dividend of CA$0.16 per share [5][6]. Financial Overview - Total assets increased to $166.6 million as of September 30, 2025, up from $125.3 million at the end of 2024 [18][21]. - Cash at the end of the period was $36.9 million, compared to $19.8 million at the end of 2024 [20][21]. - The company recorded a net cash used in operating activities of $6.3 million for Q3-2025 [14][16]. Market Conditions - The average gold price rose from approximately $3,300/oz in August to $3,700/oz in September, positively impacting financial performance [15][10]. - Year-to-date, the gold price increased from approximately $2,700/oz in January to $3,700/oz in September, contributing to record sales [15][10]. Community Engagement - The company conducted a community participation session in September to inform the Svetlana host community about its environmental management plan [5][20]. Summary of Financial Performance - General and administrative expenses increased to $3.5 million in Q3-2025, primarily due to management expansion and reorganization costs [15][10]. - The effective tax rate is influenced by fluctuations in the Peruvian sol against the US dollar, affecting current and deferred tax liabilities [15][10].