- In its Q3 2024 report, Dynacor Group (TSX:DNG) announced achieving record sales of US$76.2 million and a net income of US$5.9 million
- The company noted that this marks a significant increase from the US$63.4 million in sales and US$2.5 million in net income reported in the same quarter last year
- The company reported a decrease in gold equivalent production, reaching 30,002 AuEq ounces compared to 34,103 AuEq ounces in Q3 2023, attributed to lower ore grades processed
- Dynacor Group stock (TSX:DNG) last traded at C$5.44
In its Q3 2024 report, Dynacor Group (TSX:DNG) announced achieving record sales of US$76.2 million and a net income of US$5.9 million.
In a news release, the company noted that this marks a significant increase from the US$63.4 million in sales and US$2.5 million in net income reported in the same quarter last year.
During Q3 2024, its Chala plant operated at full capacity, processing an average of 519 tonnes per day (tpd), a notable increase from 484 tpd in Q3 2023. The Veta Dorada plant processed a total of 47,721 tonnes of ore, reflecting a 7.2 per cent increase year-over-year.
Operational highlights
- Gold production: The company reported a decrease in gold equivalent production, reaching 30,002 AuEq ounces compared to 34,103 AuEq ounces in Q3 2023, attributed to lower ore grades processed.
- Ore inventory: There was a reduction in ore inventory levels due to increased throughput and a decrease in the volume of ore supplied.
Financial highlights
- Record sales: Dynacor’s sales rose by 20.2 per cent, reaching US$76.2 million in Q3 2024.
- Gross operating margin: The gross operating margin hit a record US$10.3 million, representing 13.6 per cent of sales, up from US$7.0 million (11.0 per cent of sales) in Q3 2023.
- Operating income: Operating income increased by 56.9 per cent, totaling US$8.0 million compared to US$5.1 million in the previous year.
- Cash gross operating margin: The cash gross operating margin improved to US$365 per AuEq ounce sold, a 55.3 per cent increase from US$235 in Q3 2023.
- Record EBITDA: Dynacor reported an EBITDA of US$8.9 million, up 53.4 per cent from US$5.8 million in Q3 2023.
- Cash flow: Cash flows from operating activities before changes in working capital reached US$6.6 million, a 69.2 per cent increase from US$3.9 million in Q3 2023.
- Solid cash position: The company ended the quarter with US$42.0 million in cash, compared to US$22.5 million at the end of 2023.
Return to shareholders
Dynacor also announced a share buy-back program, repurchasing 244,700 common shares for US$0.9 million in Q3 2024, compared to 137,700 shares for US$0.3 million in Q3 2023. Additionally, a 16.7 per cent increase in monthly dividends has been implemented since January 2024, with an annual dividend expected to yield $0.14 per share.
Looking ahead, Dynacor forecasts sales between US$265 million and US$285 million for the year, representing a growth of 6-14 per cent over 2023. Net income is projected to range from US$12 million to US$15 million, which includes US$2.7 million in expenses for advancing projects in other jurisdictions. The company is currently on track to exceed its sales and net income forecasts for 2024.
About Dynacor
Dynacor is a dividend-paying industrial gold ore processor primarily focused on the artisanal and small-scale mining industry in Peru. The company also owns the Tumipampa and Anta exploration properties in southern Peru.
Dynacor Group stock (TSX:DNG) last traded at C$5.44 and has grown 36 per cent since the year began.
Join the discussion: Find out what everybody’s saying about this gold stock on the Dynacor Group Inc. Bullboard and check out Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo of a gold bar from Dynacor’s processing facility in Peru: Dynacor Group.)
