Dynacor Group Inc T.DNG

Assessment

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At 9X earnings, DNG is quite cheap for the sector. With a 2.55% dividend that has shown some growth, a debt-free balance sheet ($27M cash) and good stock momentum, it looks good. There is only one analyst (sponsored by the company). DNG is a good little small cap gold company. Q1 Revenue of $67.7M beat estimates by 2%. DNG sees sales of $265M+ this year and it has a 10% share buyback in place. Gold sales rose 31% in April. Its small size adds risk but the fundamentals look fine here. We would consider it buyable for small cap gold investors and would rank it high amongst small caps and mid-point for the sector as a whole. (5iResearch)

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  $US Dynacor 2023 Dynacor 2022 Newlox plant 2 Newlox plant 1 Avg volume tpd 468 413 150 80 Gold oz produced 130,001 110,359 20

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A few more comments in response to a recent question. GLTA The sector of course can be cyclical, and small cap metals companies can at times languish for years. Insiders own 9.5% of DNG and two entities own a combined 24%, so trading can be thin adding to volatility. There are always operational and environment risks in the sector (see VGCX for how bad it can get at times). But if one can accept