Dynacor Group Inc DNGDF

Ink Research

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May 30, 2022

Morning Report: Dynacor Gold shines in the INK Edge rankings

Today we revisit Dynacor Gold Mines (DNG), last featured here on January 26th, which takes the #3 spot in the May edition of our Top Mining & Crypto report, up from #19 in April. Dynacor purchases gold ore from local government-registered artisanal ore producers and processes it at its wholly-owned Veta Dorada milling facility in Chala, Peru.

When Dynacor reported Q2 results on May 16th, net income came in at US$0.13 per share, up from US$0.05 in Q1 2021. Management attributes the growth to higher gold production, gold market price and trend and favourable exchange rate for the Peruvian sol against the USD. Importantly, gross operating margin grew to US$7.5 million (15.0% of sales) versus US$5.3 million (13.0% of sales) in the comparable period. Dynacor has a monthly dividend of $0.0083 per common share ($0.10 per share annualized), good for an indicated annual dividend yield of 3.2%.

Going forward, Dynacor reaffirmed its 2022 forecast of US$200 to US$220 million in expected sales representing 4% to 14% over 2021 final production sales. It expects 2022 net income of US$0.28 to US$0.33 per share and has plans for capital expenditures of US$5 to US$8 million later in 2022 to increase capacity at its Chala Plant.

Meanwhile, insiders have been acquiring shares through options exercises and Dynacor has been buying back shares.

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Here's the BNN coverage. GLTA Insiders are buying the dip in oil and metals sector: INK Research's Ted Dixon  Ted Dixon, CEO of INK Research, joins BNN Bloomberg to discuss where he is seeing insider buying in the energy and metals space. Companies include Crescent Point Energy, Gear Energy and Dynacor Gold. https://www.bnnbloomberg.ca/video/insiders-are-buying-the-dip-in-oil