Dynacor Gold Mines (DNG) AI Stock Analysis

• Market Cap: C$229.21M
• Dividend Yield: 2.92%
• Average Volume (3M): 107.45K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.11
• Revenue Growth: 23.58%
• EPS Growth: -21.41%
• Country: CA
• Employees: 575
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.17
• Shares Outstanding: 41,903,770
• 10 Day Avg. Volume: 101,030
• 30 Day Avg. Volume: 107,451
• PEG Ratio: 0.58
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 13.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$7.51
• Price Target Upside: 69.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.58
• Revenue Forecast (FY): C$493.69M

• Rating: 78 Outperform
• Price Target: C$5.50 ▲(24.15% Upside)

Dynacor Gold Mines is a strong performer with robust financial health and positive technical indicators. The stock's undervaluation and attractive dividend yield further enhance its appeal. However, cash flow issues need to be addressed for long-term sustainability.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strong demand and operational efficiency, suggesting a solid market position and potential for future growth.

Expansion Plans

The strategic expansion in West Africa and Latin America positions Dynacor for substantial long-term growth, enhancing its market presence and revenue potential.

Financial Stability

A low debt-to-equity ratio demonstrates strong financial stability, providing the company with flexibility to invest in growth opportunities without significant financial risk.

Negative Factors

Cash Flow Challenges

The negative free cash flow growth indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives sustainably.

Margin Pressure

Decreasing margins suggest pressure on profitability, which may impact the company's ability to maintain competitive pricing and invest in future growth.

Earnings Volatility

The decline in EPS growth reflects earnings volatility, which could affect investor confidence and the company's ability to reinvest in its operations effectively.

Dynacor Gold Mines Business Overview & Revenue Model

Company Description

Dynacor Gold Mines Inc. is a mining company based in Canada, primarily engaged in the exploration and processing of gold in Peru. The company operates in the gold mining sector through its flagship processing plant, which processes ore from local artisanal and small-scale miners. Dynacor is known for its focus on building a sustainable business model that supports local communities and adheres to environmentally responsible practices.

How the Company Makes Money

Dynacor Gold Mines generates revenue primarily through the processing of gold ore from artisanal and small-scale miners. The company's processing plant has the capacity to treat a significant volume of ore, allowing it to earn a fee for the services provided to these miners. Additionally, Dynacor sells the gold it produces to various buyers, including refiners and other gold market participants. The company benefits from strategic partnerships with local miners, which ensure a steady supply of ore. Factors contributing to its earnings include the efficiency of its processing operations, fluctuations in gold prices, and the demand for gold in the marketplace.

Dynacor Gold Mines Financial Statement Overview

Summary

Dynacor Gold Mines demonstrates solid financial health with consistent revenue growth and strong profitability margins. The company maintains a stable balance sheet with low leverage and high return on equity. However, the significant drop in free cash flow growth is a concern that needs to be addressed.

Income Statement

Dynacor Gold Mines shows a consistent revenue growth trend, with a TTM revenue growth rate of 4.14%. The company maintains healthy profitability margins, with a gross profit margin of 12.01% and a net profit margin of 5.81% in the TTM. However, there is a slight decline in gross profit margin compared to previous periods, which could indicate rising costs or pricing pressures.

Balance Sheet

The company has a strong balance sheet with a very low debt-to-equity ratio of 0.0089, indicating minimal leverage and financial risk. The return on equity is robust at 16.59%, reflecting efficient use of equity capital. The equity ratio stands at a healthy level, suggesting a stable financial position with a good proportion of equity financing.

Cash Flow

Dynacor's cash flow performance is mixed. While the operating cash flow to net income ratio is strong at 1.21, indicating good cash generation relative to net income, the free cash flow growth rate has significantly declined by 49.85% in the TTM. This decline in free cash flow could impact future investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	333.25M	284.40M	250.19M	197.55M	195.91M	101.53M
Gross Profit	34.16M	35.80M	30.20M	24.43M	27.06M	13.61M
EBITDA	27.69M	30.80M	26.61M	21.53M	23.46M	11.65M
Net Income	15.80M	16.88M	15.07M	12.01M	11.78M	4.33M
Balance Sheet
Total Assets	166.60M	125.26M	111.78M	96.90M	91.36M	76.30M
Cash, Cash Equivalents and Short-Term Investments	36.24M	24.88M	22.48M	25.41M	26.91M	11.87M
Total Debt	688.53K	1.11M	635.69K	701.23K	343.97K	706.75K
Total Liabilities	37.81M	26.10M	22.19M	16.62M	19.35M	13.55M
Stockholders Equity	128.78M	99.16M	89.59M	80.28M	72.01M	62.74M
Cash Flow
Free Cash Flow	-20.42M	10.87M	3.04M	2.57M	18.42M	10.34M
Operating Cash Flow	-3.03M	16.13M	9.61M	6.23M	21.87M	11.22M
Investing Cash Flow	-16.87M	-11.16M	-6.45M	-3.51M	-3.21M	-769.83K
Financing Cash Flow	14.34M	-7.56M	-6.28M	-4.22M	-3.41M	-5.33M

Dynacor Gold Mines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DNG, the sentiment is Positive. The current price of 4.43 is below the 20-day moving average (MA) of 4.80, below the 50-day MA of 4.59, and below the 200-day MA of 4.65, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 76.61 is Negative, neither overbought nor oversold. The STOCH value of 92.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DNG.

Dynacor Gold Mines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNG	78 Outperform	C$229.21M	10.04	13.91%	2.92%	23.58%	-21.41%
STGO	73 Outperform	C$482.90M	6.36	35.92%	―	104.75%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TAU	55 Neutral	C$599.18M	-145.57	-1.82%	―	―	-251.92%
ITH	51 Neutral	C$592.47M	-97.94	-7.47%	―	―	-26.52%
MFG	36 Underperform	C$300.59M	-29.57	-22.27%	―	―	50.13%
GOLD	27 Underperform	C$381.80M	-23.36	-10.17%	―	―	37.78%

Dynacor Gold Mines Corporate Events

Dynacor Group Announces December 2025 Dividend Payment

Dynacor Group Inc. announced its December 2025 monthly dividend of C$0.01333 per common share, payable on December 19, 2025, to shareholders of record as of December 9, 2025. This marks the company’s 69th dividend and highlights its commitment to providing returns to shareholders. The dividend is classified as an ‘eligible dividend’ for Canadian tax purposes, and its continuation depends on the company’s financial performance and strategic considerations.

Dynacor Achieves Record Q3 Sales and Advances Global Expansion

Dynacor Gold Mines reported record sales and EBITDA for the third quarter of 2025, despite facing ore supply disruptions. The company achieved strong financial results due to higher gold prices and consistent mill performance, with record sales of $100.5 million and EBITDA of $9.0 million. Additionally, Dynacor is advancing its expansion projects in Ecuador, Senegal, and Ghana, which are expected to enhance its production capacity and operational footprint.

Dynacor Declares November 2025 Dividend, Reinforcing Shareholder Commitment

Dynacor Group Inc. has declared its monthly dividend for November 2025, amounting to C$0.01333 per common share, payable on November 19, 2025. This marks the 68th dividend and the 58th monthly payment to shareholders. The dividend is classified as an ‘eligible dividend’ for Canadian tax purposes. The decision to pay and increase dividends is subject to the Board’s discretion based on financial results and other relevant factors. This announcement underscores Dynacor’s consistent financial performance and commitment to shareholder returns, reflecting its stable position within the artisanal gold mining industry.

Dynacor Expands Operations in West Africa and Latin America

Dynacor Group Inc. is advancing its expansion strategy in West Africa and Latin America, with significant developments in Senegal and Ecuador. In Senegal, the construction of a 50-tpd pilot plant is on track, with initial shipments underway and site preparations progressing. In Ecuador, the company is integrating its subsidiary through organizational, operational, and community efforts, including establishing a corporate framework and engaging with local communities. These initiatives are expected to significantly boost Dynacor’s sales, projecting over US$1 billion by 2030, marking a substantial increase from 2024 figures.

Dynacor Group Announces October 2025 Dividend Payment

Dynacor Group Inc. announced its October 2025 dividend payment of C$0.01333 per common share, marking its 67th dividend and 57th monthly payment. The dividend, classified as an eligible dividend for Canadian tax purposes, will be paid on October 16, 2025, to shareholders of record by October 9, 2025. The decision to pay and increase dividends is at the discretion of the Board, depending on financial results and other factors. This announcement reflects Dynacor’s ongoing commitment to shareholder returns and its stable financial performance, reinforcing its position in the gold processing industry.