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iolite Partners Ltd. Issues Letter to Fellow Shareholders Urging them to WITHHOLD their votes in the election of Mr. Pierre Lépine (Chairman) at Dynacor's Annual General Meeting
iolite Capital Management AG, a Switzerland-based investment manager, which beneficially owns, co...
About this update from Dynacor Group Inc
[{"type":"text","content":"iolite Partners Ltd. Issues Letter to Fellow Shareholders Urging them to WITHHOLD their votes in the election of Mr. Pierre Lépine (Chairman) at Dynacor’s Annual General Meeting\n\n\n .bwalignl { text-align: left }\n.bwblockalignl { margin-left: 0px; margin-right: auto }\n.bwcellpmargin { margin-bottom: 0px; margin-top: 0px }\n.bwlistdisc { list-style-type: disc }\n.bwpadl0 { padding-left: 0px }\n.bwtablemarginb { margin-bottom: 10px }\n.bwvertalignt { vertical-align: top }\n \n\n\n\n iolite Capital Management AG, a Switzerland-based investment manager, which beneficially owns, controls or directs approximately 10% of the issued and outstanding common shares of Dynacor Group Inc. (TSX:DNG), issued an open letter to fellow shareholders of Dynacor, urging them to WITHHOLD their votes in the election of Mr. Pierre Lépine, Chairman, at Dynacor’s Annual General Meeting on June 17, 2025.\n \n\n\n Dynacor’s Key Failings\n \n\n\n\n\n Underperformance:\n \n Since the January capital raise, Dynacor’s share price has declined 21%, despite a 26% increase in the gold price and a 43% rise in the junior gold miner index.\n \n\n\n Persistent undervaluation:\n \n The company continues to trade at a steep discount to peers — with a 2.9x EV/EBITDA multiple (5-year average: 3.4x) versus 8–10x for the sector. Its cash-adjusted P/E is below 5x, compared to 10–15x for comparable businesses.\n \n\n\n Eroding margins:\n \n Despite record Q1 sales (+18% YoY) and significant mark-to-market gains on inventory, the cash margin declined from 17.2% to 14.0%, the gross margin from 13.5% to 11.2%, and the EBITDA margin from 12.0% to 8.8%. Gross profit was flat at US$9 million, and EBITDA fell from US$8 million to US$7 million.\n \n\n\n Deteriorating operational momentum:\n \n April 2025 sales are down 8.8% YoY, despite a 38.8% YoY increase in the gold price and full plant utilization.\n \n\n\n Erratic capital management:\n \n In just six months, the company: 1) suspended share buybacks, 2) increased the dividend, 3) conducted a discounted capital raise to friendly parties, 4) signaled further dilution, 5) resumed buybacks.\n \n\n\n Erosion of trust:\n \n Hostile and misleading communication underscores a deeper problem — a disregard for transparency, accountability, and shareholder interests.\n \...