DYNACOR GROUP (DNG) Investor Presentation summary

Company overview

• Over 28 years of experience in the artisanal and small-scale mining (ASM) gold processing sector, with operations headquartered in Montreal and primary activities in Peru.

• Employs more than 550 people and is Peru’s largest ASM ore purchaser and processor.

• 2023 gold equivalent production reached 130,000 ounces, ranking among Peru’s top 10 gold producers.

• Expansion into Africa underway, with a pilot plant project in Senegal announced for 2024.

• Recognized for a strong ESG focus, including certified clean gold and community investments.

Financial performance

• Q3-2024 LTM sales reached US$277M, EBITDA US$31M, and cash flow (excl. WC) US$23M.

• Fully diluted EPS for Q3-2024 LTM was US$0.51, with a 25% revenue CAGR from 2019–2023.

• YTD Q3-2024 sales grew 14.5% YoY to US$211.3M, with gross profit up 30.7% and net income up 32.2%.

• Maintains a debt-free capital structure and strong cash position (US$42M as of Q3-2024).

• Share price closed at C$5.75 (Dec 31, 2024), with a market cap of C$210M and a 44% one-year return.

Growth strategy and operations

• Five phases of capacity expansion since 2018, with current processing capacity at 500 TPD in Peru.

• Strategic plan targets US$1B in sales and 500,000 oz AuEq annual production by 2030, focusing on Africa and LATAM.

• Business model leverages a natural hedge on gold prices and deep ASM relationships.

• Consistent EBITDA, FCF, and earnings growth for 13 consecutive years.

• Active dividend policy (C$0.16/share annualized, 2.78% yield) and share buyback program (1.1M shares in 2023).