- 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.
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(Top photo of a gold bar from Dynacor’s processing facility in Peru: Dynacor Group.)