Dynacor Group Inc · TSX:DNG
Dynacor — Investor Presentation (September 2024)
22 slides from Dynacor's investor presentation, September 2024
Slide 1: Corporate presentation September 2024
Corporate presentation September 2024
Slide 2: Caution Regarding Forward Looking Statements / Non-IFRS Measures
Caution Regarding Forward Looking Statements / Non-IFRS Measures Statements contained in this presentation that are not historical facts are regarded as forward- looking statements. These statements may involve risk, uncertainties and other factors that could cause actual results to differ materia
Slide 3: Dynacor Group Inc. is a dividend-paying industrial gold ore processor
Dynacor Group Inc. is a dividend-paying industrial gold ore processor headquartered in Montreal, Canada. Our company produces gold by processing ore purchased from the ASM (artisanal and small-scale mining) industry. We currently operate in Peru, where we have decades of experience working with ASM
Slide 4: Peru: Production 2023 - Ranking Top Producers in Peru
RANKING TOP PRODUCERS IN PERU o As Peru's largest ASM ore purchaser and processor, we are poised for further growth and market leadership. o Ranked in the top ten gold producers in Peru. PERU: PRODUCTION 2023 Month Jan Feb Mar Apr May Jun Jun Aug Sep Oct Nov Dec Ranking Top Producers 10° 9° 9° 9° 9°
Slide 5: Why Should I Invest in Dynacor?
WHY SHOULD I INVEST IN DYNACOR? Proven history of profit and growth with more than 13 consecutive years of profit and 5 plant capacity increases from 300 tpd to 500 tpd since 2018. Organic and acquisitive growth strategy: develop our unique business model in other jurisdictions. Return to investors
Slide 6: Our Story
OUR STORY 2008 Expansion of processing plant capacity to 170 TPD. 1996 1997 1998 2006 Annual gold production Creation of Peruvian Construction of ore First year of production: 91 Expansion of processing exceeds the first ton subsidiary Minera Dynacor processing plant with kg (2,925 gold equivalent p
Slide 7: Corporate Values, Vision and Mission
CORPORATE VALUES Respects Ethical behavior Environmental responsibility VISION AND MISSION Dynacor intends to become the world’s leading processor of gold produced from ore purchased from artisanal miners, in an environmental and socially responsible manner. We produce environmental and so
Slide 8: Our Production Process
1 | PURCHASING AND ORE CONTROL 2 | PROCESSING Through ‘ur subsidiary Veta Dorada, we buy ore from ‘The Veta Dorada Plant has a Artisanal and Small-Scale Miners (ASM) enisted in the processing capacity of S00 formaling process of the Peruvian governmert. ‘ny. tisiocated in the Chala District, Arequpa
Slide 9: Management
MANAGEMENT Jean Martineau Leonard Teoli Jorge Luis Cardenas President and CEO Vice President and CFO Vice President of business development in Latin America 8
Slide 10: 2023 and YTD Q2-2024 Highlights
2023 and YTD Q2-2024 HIGHLIGHTS Our gold production was 130,000 AuEq ounces in 2023 (61,500 Au eq ounces YTD Q2-2024). In 2023, we achieved US$250 million in sales, marking a robust 27% increase from 2022 ($135 million YTD Q2-2024). We reported a net income of US$15,1 million (US$0.39 earnings
Slide 11: Earnings Guidance
Earnings Guidance 2024 US$265-285M in sales (6-14% increase compared to 2023) (*). Net income of US$12-15M (between US$0.33 and US$0.41 per share) (C$0.45 and C$0.56 per share) (*). Cash-flow from operating activities (before changes in working capital items) of US$15-18M (between US$0.41 and
Slide 12: AuEq Ounces Produced
AuEQ OUNCES PRODUCED ~ 10 years rounded gold production (in AuEq ounces) 140 000 130000 120000 107000 110000 100 000 81000 83000 82000 80000 71000 go99 74000 60000 51000 40000 Tv 3 20000 Oo 0 & ) Xo} A“ <2 a o y Ae) id Sy a a Sy Sy Vv Vv’ Vv - £ £ aS - £ aS - aS @ Dynacor 1
Slide 13: Sales and Net Income
SALES AND NET INCOME Ten years sales and net income in US$ million 102 105 103 102 Pon bbebeees 2014 2015 2016 2017 2018 2019 2020 2021 2022 MME Netincome =@=Sales 250 15 2023 30 20 10 @ Dynacor 12
Slide 14: EBITDA and Cash-Flow from Operating Activities
EBITDA AND CASH-FLOW FROM OPERATING ACTIVITIES (*) before changes in working capital items 13
Slide 15: Strategic Plan - 5 Years Plan: Development of New Processing Activities
STRATEGIC PLAN – 5 YEARS PLAN : DEVELOPMENT OF NEW PROCESSING ACTIVITIES IN OTHER JURISDICTIONS Dynacor business model relies on: Natural hedge on gold price 25 years + experience in ore processing business and accumulated know-how Strong team at all level Mastering processing of different t
Slide 16: Gold Price Progression Over 15 Years
GOLD PRICE PROGRESSION OVER 15 YEARS With a gold market price currently approaching 2,500 US$ per ounce and Dynacor’s natural hedge on gold price, market conditions are favorable to expansion projects. 15
Slide 17: Market Summary (Symbol DNG - TSX)
MARKET SUMMARY (Symbol DNG –TSX) Closing Share Price (September 4, 2024) – 1 year price returns 58.41%, annualized 5 years C$4.99 price returns 20.92% (September 4, 2024) Shares Outstanding – Approx. 36.4 million Monthly dividends C$0.166667 cents per month (dividend yield 2.80%) Market Cap – Approx
Slide 18: DNG - Stock Progression Over 15 Years
DNG - STOCK PROGRESSION OVER 15 YEARS 17
Slide 19: Dividends and Share Buybacks
DIVIDENDS AND SHARE BUYBACKS: C$0.14 per share (C$0.166667 cents per month). Dividend yield 2.80%. Fifth dividend increase since October 2018. Active share buyback program; ~1.1M shares purchased ~US$3M in 2023 (~4.9M shares purchased ~US$11M since 2018). 18
Slide 20: Proven Leader in Corporate Social Responsibility
PROVEN LEADER IN CORPORATE SOCIAL RESPONSIBILITY: Our PX IMPACT® certified clean gold program demonstrates our active involvement in funding, participating, and developing education, health, and social services within ASM communities VIRTUOUS Fidamar 2023: CIRCLE Health Education • Total investment
Slide 21: Dedicated to environmental compliance
We are dedicated to environmental compliance, as evidenced by our Environmental Management Plan, which ensures adherence to Peruvian mining laws. We have implemented CSR activities that demonstrate our commitment to social responsibility, being the only processing plant that has conducted 4 ESG repo
Slide 22: Head Office
Head Office 625 René-Lévesque Blvd West, Suite 1200, Montreal (Quebec) H3B 1R2 CANADA investors@dynacor.com 514.393.9000 #232 www.dynacor.com
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