Dynacor Group Inc · TSX:DNG
Dynacor — Investor Presentation (January 2025)
20 slides from Dynacor's investor presentation, January 2025
Slide 1: Investor Presentation January 2025
Investor Presentation January 2025
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 material
Slide 3: Dynacor Group Inc. is an industrial gold ore processor
28 YEARS OF LEADERSHIP 550+EMPLOYEES IN ASM BUSINESS Dynacor Group Inc. is an industrial gold ore processor $277M Q3-2024 LTM SALES $31M Q3-2024 LTM EBITDA (US$) (US$) headquartered in Montreal, Canada. Our company produces gold by processing ore purchased from the ASM (artisanal and small-scale min
Slide 4: Our Story
OUR STORY 1996 1997 1998 2006 2008 Creation of Peruvian Construction of ore First year of production: Expansion of processing Expansion of processing plant subsidiary Minera Dynacor processing plant with 91 kg (2,925 gold plant capacity to 90 TPD. capacity to 170 TPD. del Perú. capacity of 50 tonnes
Slide 5: Dynacor is a Top-Ranking Gold Producer in Peru
DYNACOR IS A TOP-RANKING GOLD PRODUCER IN PERU CANADA Head Office 606 rue Cathcart, Suite 640 Montréal (Québec) H3B 1K9. PERU Nasca Administrative Office Our Subsidiary Head Office: Av. Los Paredones N° 569, Nasca - Ica. Calle Dean Valdivia 148, Edificio Platinum Plaza I, Oficina 601, Veta Dorada Pr
Slide 6: Why Should I Invest in Dynacor?
WHY SHOULD I INVEST IN DYNACOR? Dynacor is a leading industrial company, operating as a processor of gold, with a proven and consistently profitable business model Leading processor of gold from artisanal miners ❑ Peru's largest artisanal and small-scale ore purchaser and processor ❑ Significant mar
Slide 7: Dynacor's Business Model and Competitive Strengths
DYNACOR’S BUSINESS MODEL AND COMPETITIVE STRENGTHS Dynacor is a leading industrial company operating in gold production and has an attractive business model with a natural hedge on gold prices 1. SOURCING ✓ Dynacor has deep expertise in procuring gold ore from artisanal and small-scale miners (ASM)
Slide 8: Our Production Process
| OUR PRODUCTION PROCESS 1 1 | PURCHASING AND ORE CONTROL 2 | PROCESSING Through our subsidiary Veta Dorada, we buy ore from The Veta Dorada Plant has a Artisanal and Small-Scale Miners (ASM) enlisted in the _ _ processing capacity of SOO tm/d. Itis located in the Chala District, Arequipa, Peru. for
Slide 9: Industry-Leading and Well-Tenured Management Team
INDUSTRY-LEADING AND WELL-TENURED MANAGEMENT TEAM Jean Martineau Pierre Lépine Leonard Teoli Daniel Misiano Jorge Luis Cardenas Stéphane Lemarié President & CEO Chairman of the Vice President & CFO COO VP of Business Director of Financial Board Development in LATAM Information and Internal Controls
Slide 10: Strong Growth Driven by Processing Capacity Expansion
STRONG GROWTH DRIVEN BY PROCESSING CAPACITY EXPANSION Gold Production Sales (in AuEq Ounces, FYE Dec. 31) (in US$ M, FYE Dec. 31) 7% 130,001 277 CAGR 124,041 250 110,359 15% 106,862 CAGR 196 198 80,861 82,605 82,216 74,344 69,000 COVID 51,369 105 102 102 102 91 79 2015 2016 2017 2018 2019 2020 2021
Slide 11: Track Record of Consistent and Growing EBITDA, Earnings and FCF Generation
TRACK RECORD OF CONSISTENT AND GROWING EBITDA, EARNINGS AND FCF GENERATION EBITDA Cash Flow1 Fully Diluted EPS (in US$ M, FYE Dec. 31) (in US$ M, FYE Dec. 31) (in US$, FYE Dec. 31) 31 $0.51 23 17% 26 17% 24% CAGR 24 CAGR 19 CAGR $0.39 21 15 15 $0.30 $0.30 11 12 9 11 11 8 8 9 9 8 6 $0.13 6 $0.12 $0.1
Slide 12: YTD Q3-2024 Financial Highlights
YTD Q3-2024 FINANCIAL HIGHLIGHTS YTD YoY (FYE Dec. 31) Q3-FY2024A Q3-FY2023A % Change Units Tonnes Processed TMS 134,662 126,832 +6.2% TPD 491 465 +5.6% Production AuEq oz 90,135 96,095 -6.2% Sales US$ M 211.3 184.6 +14.5% Gross Profit US$ M 29.4 22.5 +30.7% Gross Margin (%) 14.0% 12.2% EBITDA US$ M
Slide 13: 5-Year Strategic Plan: Development of New Processing Activities in Other Jurisdictions
5-YEAR STRATEGIC 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 types of o
Slide 14: Gold Price Progression Over 15 Years
GOLD PRICE PROGRESSION OVER 15 YEARS ❑ With gold price currently around US$2,600 per ounce and Dynacor’s natural hedge on gold price, market conditions are favorable to expansion projects. 14
Slide 15: Market Summary (Symbol DNG - TSX)
MARKET SUMMARY (Symbol DNG –TSX) Closing Share Price (December 31, 2024) – 1 year price returns 44%, annualized 5 years price C$5.75 returns 28% (December 31, 2024) Shares Outstanding – Approx. 36.4 million Monthly dividends C$0.01333 per month (dividend yield 2.78%) Market Cap – Approx. C$210 milli
Slide 16: DNG - Stock Progression Over 15 Years
DNG - STOCK PROGRESSION OVER 15 YEARS Dynacor stock price has significantly outpaced the growth in the price of gold since 2010 ~6% Gold Price CAGR ~24% DNG Stock Price CAGR (BoY 2010 – EoY 2024) (BoY 2010 – EoY 2024) 16
Slide 17: Dividends and Share Buybacks
DIVIDENDS AND SHARE BUYBACKS: ❑ C$0.16 per share (C$0.01333 per month). Dividend yield 2.78%. ❑ Sixth 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). 17
Slide 18: 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 19: 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 20: Head Office and Contact Details
Head Office 606 rue Cathcart, Suite 640 Montréal (Québec) H3B 1K9 CANADA www.dynacor.com investors@dynacor.com 514.393.9000 #232