Dynacor Reports Q3-2026 Results with Record Production and Progress at Galam and Svetlana Dynacor Group Inc. Wed, November 11, 2026 at 7:45 AM EST 17 min read DNG.TO +0.74% GC=F +0.26% DNGDF -2.33% Dynacor Group Inc. MONTREAL, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Dynacor Group Inc. (TSX: DNG) ("Dynacor" or the "Corporation") today announced its unaudited financial and operational results1 for the third quarter ended September 30, 2026.
"In the third quarter of 2026, we continued to deliver on our commitment to operational excellence and strategy to become a geographically diversified, multi-asset ore processor," said Daniel Misiano, President and CEO. "Record operational performance drove production and sales to the upper end of our guidance despite a stabilising gold environment. Based on continued momentum, we are reaffirming our full-year production and sales guidance and revising our net income guidance. Our inventory reduction and the gold price trend improved margins compared to the second quarter, and these are expected to normalise further in the fourth quarter.
We are steadily advancing our expansion pipeline, with the focus on disciplined growth. Production is ramping up at Galam, and we have launched operations at Svetlana with first ore feed. At Svetlana, commissioning will take slightly longer than planned due to extended equipment lead times but with no impact on our short-term outlook. In view of our three operations, we closed a gold purchase and prepayment facility, further strengthening our balance sheet and providing the financial flexibility to translate their cash flow potential into sustainable cash generation."
Record operational performance driven by robust throughput:
Throughput of 48,373 tonnes (526 tpd), a new quarterly throughput record.
Record quarterly production of 34,716 gold-equivalent (AuEq) oz. on track to meet full-year production guidance.
Reduction of ore inventory to 75% of historical level by quarter-end.
Sales of $149.6 million, the third-highest quarterly sales.
Gross operating margin of $9.0 million, driven by high inventory at the beginning of the period and fluctuating gold prices throughout the period.
The higher inventory at quarter-start was mainly purchased at a higher gold price in the previous quarter.
Gold price was relatively stable in the period: flat in July, before increasing in August and falling in September to $4,150/oz.
Net cash flows from operating activities before changes in working capital items of $4.0 million.
Cash gross operating margin of $285 per AuEq oz sold3.
Improved financial flexibility and balance sheet to fund working capital and capex requirements for three plants:
Cash position of $30.6 million as at September 30, 2026.
Subsequent to quarter-end, the Corporation entered into a $20 million unsecured gold purchase and prepayment facility.
Steady execution of international expansion:
Senegal: Completion of first gold doré pour and commissioning; and ongoing ramp-up of plant to nameplate capacity of 50 tonnes per day.
Ecuador: Launch of Svetlana operations with first ore fed to the crushing circuit; mill rehabilitation some 82% complete; and launch of commissioning.
The Corporation is still awaiting the ruling from the Peruvian Tax Court with regard to its contested tax assessment for the 2015 fiscal year (maximum exposure of $8.6 million).
For more information regarding ongoing Peruvian tax audits and exposure, refer to note 20 "Other commitments and other contingencies" of the Corporation's condensed interim consolidated financial statements as at September 30, 2026 and for the three and nine-month periods ended September 30, 2026 and 2025.
Continued shareholder returns: Disbursed a monthly dividend representing CA$0.16 per share on an annual basis or a 3.1 % dividend yield based on the current share price.
Appointment of Mr. Jonathan Hill as Chief Operating Officer of Dynacor in the quarter.
Signing of a Memorandum of Understanding with the World Gold Council to collaborate on the formalisation of the artisanal and small-scale gold mining sector.
At the end of the quarter, the first gold doré pour was completed at Galam from gold-silver cement from the Merrill-Crowe circuit, with commissioning of all circuits performing within expectations. Construction was also completed and handed over to the operations team. Additional ore stockpiles were secured from new suppliers, supporting the ramp-up of operations in the fourth quarter of 2026. Dynacor expects the Senegal plant to exit the year at full nameplate throughput.
Figure 1: The Team Executing Galam's Inaugural Pour
Rehabilitation of the Svetlana mill has reached 82% completion, with refurbishment of the main equipment in the crushing, grinding and leaching areas fully complete. As of quarter-end, $11.5 million had been spent and $4.0 million committed of the $22-$25 million projected capital expenditure.
Dry commissioning activities were launched at end of October in the crushing, grinding, and leaching circuits and first ore feed was achieved. Hot commissioning is scheduled for December, and ramp-up in Q1-2027.
Supplier network. To accelerate the plant ramp-up, Dynacor is developing a supplier network using its in-house Svetlana purchasing department and through, among others, its partnership with the United Nations' planetGold program.
Regulatory applications advanced in the period, as Dynacor met with Ecuador's Ministry of Production, Foreign Trade, Investments and Fisheries (MPCEI) to continue negotiations on its application for an Investment Protection Agreement.
Figure 2: Hopper loading ore into Svetlana's crushing circuit
At quarter-end, the Corporation's production and sales were tracking the upper end of 2026 guidance. Net income and capital expenditure guidance have been revised below.
To achieve the 2026 growth plan and sustain current operations, of which $22-$25 million in Ecuador, $6-$8 million in Peru, $4-$5 million in Senegal and $0.5-$1 million in other jurisdictions.
Except for the impact of non-recurring items, if any. The guidance has been updated to reflect the impact of the gold price in Q2-2026 in addition to current gold prices and variances.
Due to the deferral of certain planned investments to 2027. The tightening of guidance is not expected to impact the Corporation's 2026 operations.
A number of assumptions were made in preparing the 2026 outlook including
Production range includes first ore from the Senegal and Ecuador plants. This estimate assumes that the Svetlana plant processes first ore in Q4-2026 and that operations exit the year at a throughput rate of approximately 150 tpd.
No increase in installed operating capacity in Peru and steady ore supply.
The ore grade supplied may vary with the evolution of the gold price and the purchasing conditions. Final purchasing conditions in Ecuador and Senegal are yet to be determined.
As most of the Corporation's cost of sales relates to the daily purchasing of ore, its margin and net income are favourably (unfavourably) impacted by the inventory level at quarter-start, the gradual appreciation (depreciation) of the gold price, and by the ore supply in the period.
Three-month ended September 30,
Nine-month ended September 30,
During Q3-2026, the Corporation processed a record 48,373 tonnes (526 tpd on average),a new quarterly throughput record and a significant increase compared to Q3-2025.
The strong production in Q3-2026 was mainly driven by the higher tonnes processed compared to Q3-2025.
Three-month ended September 30,
Nine-month ended September 30,
Net income and comprehensive income
Q3-2026 Quarterly Results
During Q3-2026, the gold price increased from an average of approximately $4,100/oz in July to around $4,400/oz in August, before ending the quarter at approximately $4,150/oz.
Total sales amounted to $149.6 million compared to $100.5 million in Q3-2025. The $49.1 million increase is explained by the higher average gold sales price (+$26.3 million), in combination with the higher volumes of gold ounces sold (+$22.8 million) mainly due to the higher throughput.
The Q3-2026 gross operating margin reached $9.0 million (6.0% of sales) compared to $11.7 million (11.7% of sales) in Q3-2025. The current quarter was impacted by the level of ore inventory at the beginning of the quarter and the gold price variance during August and September.
General and administrative expenses totaled $3.2 million in Q3-2026 compared to $3.5 million in Q3-2025 (including $0.5 million of non-recurring expenses).
Foreign exchange result was mainly impacted by the revaluation of monetary assets and liabilities denominated in Peruvian sol due to fluctuations in the Peruvian sol against the US dollar.
A $2.6 million income tax expense was also recorded during Q3-2026, compared to $2.8 million in Q3-2025. The effective tax rate continues to be influenced by the variance throughout the period of the Peruvian sol against the US$, which is the Corporation's functional currency. Future fluctuations will positively or negatively affect the current and deferred tax at the end of each period. The effective tax rate was also influenced by the withholding taxes on dividends received from one of our subsidiaries.
Q3-2026 Year-To-Date Results
During the nine-month period ended September 30, 2026, the gold price increased from approximately $4,400/oz in January to approximately $5,400/oz in February, before declining to approximately $4,150/oz by the end of September, impacting the Corporation's financial results for the period.
Total sales for the nine-month period ended September 30, 2026, amounted to a record $448.1 million, compared to $260.2 million for the same period in 2025. The $187.9 million increase is explained by the higher average gold price (+$126.8 million), in combination with the higher quantities of gold-equivalent ounces sold (+$61.1 million) due to the higher throughput.
General and administrative expenses for the nine-month period ended September 30, 2026, amounted to $11.1 million, compared to $9.2 million for the same period in 2025. The increase is primarily attributable to the expansion of the management team in the context of its international expansion.
Cash Flows, Working Capital and Liquidity Overview
Three-month endedSeptember 30,
Nine-month ended September 30,
Acquisition of property, plant and equipment, net of proceeds from disposal and other
On July 14, 2025, the Corporation completed the acquisition of 100% of the shares of the Svetlana processing plant in Ecuador for a total consideration of $9.75 million and incurred transaction costs of $0.2 million.
In Q3-2026, Dynacor invested $9.5 million in capital expenditure of which $1.9 million was applied toward the construction of the ore-processing pilot plant in Senegal; $6.9 million toward the plant rehabilitation and vehicles in Ecuador; and $0.7 million in Peru, mainly to maintain or improve plant efficiency.
Working Capital and Liquidity
As at September 30, 2026, the Corporation's working capital amounted to $72.6 million, including $30.6 million in cash ($81.9 million, including $33.4 million in cash as at December 31, 2025). The variances are mainly due to the expected decrease in inventory and sales tax receivables.
Consolidated Statements of Financial Position
As at September 30, 2026, total assets amounted to $177.5 million ($181.5 million as at December 31, 2025). Major variances since year-end 2025 are mainly explained by additions to property, plant and equipment, partially offset by the decrease in sales tax receivables. The decline in trade and other payables is primarily due to the variance in unpaid inventories.
Total liabilities and shareholders' equity
Dynacor Group is an ore-processing company dedicated to producing gold sourced from artisanal miners. Since our establishment in 1996, Dynacor has pioneered a responsible mineral supply chain with stringent traceability and audit standards for the fast-growing artisanal mining industry. By focusing on formalized miners, the Canadian company offers a win-win approach for governments and miners globally. Dynacor operates the Veta Dorada plant and owns a gold exploration property in Peru. The company is expanding to West Africa and within Latin America.
The premium paid by luxury jewellers for Dynacor's PX Impact® gold goes to Fidamar Foundation, an NGO that mainly invests in health and education projects for artisanal mining communities in Peru. Visit www.dynacor.com for more information.
Cautionary Statement on Forward-Looking Information
Certain statements in the preceding may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.
Statements related to Dynacor projected revenues, earnings, growth rates, revenue and expansion plans, the estimated liability resulting from the tax reassessment by SUNAT, the result of the court hearing, the timing of delivery of the tax court decision and the Corporation's defense of its position are forward looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "believes", "expects", "will", "intends", "projects", "anticipates", "estimates", "predicts", "aims", "targets", "would", "could", "may", "should", "likely", "plans", "forecasts", "continues", or similar terms or the negative thereof are intended to assist in identification of these forward-looking statements. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and may cause actual results to differ materially from those anticipated in such forward-looking statements. Therefore, readers are cautioned not to place undue reliance upon any such forward-looking statements.
Forward-looking statements reflect management's current beliefs and are based on information currently available to Dynacor. They are based on the following material assumptions, which management considers reasonable as of the date of this document: gold price; exchange rate; supply and quality of feedstock; operating and capital costs consistent with current estimates; timely receipt and renewal of required permits and licences; and no material change in the regulatory, tax or political environment in Perou, Ecuador and Senegal.
Many factors could cause the actual results of the Corporation to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements, including, without limitation, each of the following factors, which are discussed in further detail in the Corporation's most recent annual information form available on SEDAR+ (www.sedarplus.ca): metal price volatility, foreign exchange rate and interest rate fluctuations, unexpected variations in geological conditions of a property or erroneous geological data, political, country and exportation risks, tax matters, supply and quality of feedstock, water supply, labour and employment relations, production and cost estimates, access to capital markets and future financing; execution of expansion; reputational risk; environmental matters, licenses and permits, competition, dependence on management, insurance risk, litigation, anti-corruption laws, mining industry and mining projects; risks related to statutory and regulatory compliance, cybersecurity threats, share price volatility, increased costs and compliance risks of being a public corporation and pandemics. The forward-looking statements contained herein are made as of the date of this document and are expressly qualified in their entirety by this cautionary statement. The Corporation disclaims any obligation to update or revise these forward-looking statements except as required by applicable law.
Ruth HannaDirector, Investor Relations T: 514-393-9000 #236E: investors@dynacor.comWebsite: http://www.dynacor.com
Renmark Financial Communications Inc.Bettina FilipponeT: (416) 644-2020 or (212) 812-7680E: bfilippone@renmarkfinancial.com Website: www.renmarkfinancial.com
1 All figures are in US dollars unless stated otherwise. All variance % are calculated from rounded figures. Some additions might be incorrect due to rounding.
2 EBITDA: "Earnings before interest, taxes and depreciation" is a non-IFRS financial performance measure with no standard definition under IFRS Accounting Standards. It is therefore possible that this measure may not be comparable with a similar measure of another corporation. The Corporation uses this non-IFRS measure as an indicator of the cash generated by the operations and allows investors to compare the profitability of the Corporation with others by canceling effects of different asset bases, effects due to different tax structures as well as the effects of different capital structures. EBITDA is calculated on page 18 of the Corporation's MD&A for the three- and nine-month periods ended September 30, 2026, with additional information provided in section 17, "Non-IFRS Measures."
3 Cash gross operating margin per AuEq ounce is in US$ and is calculated by subtracting the average cash cost of sale per equivalent ounce of Au from the average selling price per equivalent ounce of Au and is a non-IFRS financial performance measure with no standard definition under IFRS Accounting Standards. It is therefore possible that this measure may not be comparable with a similar measure of another company. Cash gross operating margin per AuEq ounce is calculated on page 16 of the Corporation's MD&A for the three and nine-month periods ended September 30, 2026, with additional information provided in section 17, "Non-IFRS Measures."
Photos accompanying this announcement are available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/28c2c68e-26e5-4e74-9210-92e76235af7ehttps://www.globenewswire.com/NewsRoom/AttachmentNg/ecf7ade6-aee3-4797-abfb-0b39eaded27c
