- Dynacor Group, a profitable microcap gold stock focused on ore processing, expects to continue its money-making ways in 2024
- The company is forecasting net income between US$12 million and US$15 million (C$0.45 and C$0.56 per share) in 2024, which would mark its fourteenth consecutive year of profitability
- Dynacor is a dividend-paying gold explorer and ore processor active in Peru’s artisanal and small-scale mining industry
- Dynacor stock is up by 32.47 per cent year-over-year, and has gained 134.48 per cent over the past five years
Dynacor Group (TSX:DNG), a profitable microcap gold stock focused on ore processing, expects to continue its money-making ways in 2024.
The Montreal-based company, whose operations currently serve artisanal and small-scale miners (ASMs) in Peru, just released its 2024 guidance. Highlights include:
- A sales increase between 6-14 per cent year-over-year to between US$265 million and US$285 million (C$359 million and C$387 million)
- Net income between US$12 million and US$15 million (C$0.45 and C$0.56 per share)
- Cash flow from operating activities, before changes in working capital items, between US$15 million and US$18 million (C$0.56 and C$0.67 per share)
- Sales and earnings forecasts that assume a gold price range between US$2,000 and US$2,050 per ounce, which is below the price of approximately US$2,182 as of 10:47 am ET
- Capital expenditures of up to US$13 million in 2024, predominantly for new equipment to improve efficiency and tailing pond capacity at its Veta Dorada plant, as well as new projects in other jurisdictions
Dynacor rounded off its projections in Thursday’s news release with a commitment to creating shareholder value by “executing well-planned, low-risk expansions, increasing monthly dividends, and implementing share buybacks that drive cash returns.” This should be music to investors’ ears, given gold’s rosy prospects for near-term and long-term price appreciation, and the company’s history of profitability detailed below.
Dynacor’s profitable track record
Dynacor has grown revenue by 2.5 times over the past six years to more than US$250 million, with net income growing in tandem at a little less than 3X as of Q3 2023.
This trajectory is positioned to continue backed by an in-demand commodity, cash generation to self-fund exploration and production growth, and a management team with decades of experience working with ASM miners.
If you have any long-term money on the sidelines, the stock is certainly one to watch.
Management insights
“Dynacor Group is committed to creating long-term value for our shareholders,” Jean Martineau, Dynacor Group’s president and chief executive officer, said in a statement. “Our team of talented professionals is dedicated to driving growth and implementing cost-efficient measures to support the continued expansion of our ASM gold ore processing business. With this unwavering commitment to excellence, we remain optimistic about the future of our company and confident in the opportunities that lie ahead.”
About Dynacor Group
Dynacor is a dividend-paying gold explorer and ore processor active in Peru’s artisanal and small-scale mining industry. The company offers environmental and socially responsible gold through its PX IMPACT gold program.
Dynacor Group (TSX:DNG) opened with a gain of 1.49 per cent, trading at C$4.08 per share. The stock is up by 32.47 per cent year-over-year, and has gained 134.48 per cent over the past five years.
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