Dynacor Eyes Global Expansion After Record-Breaking 2025 Performance

MONTREAL, QC – January 19, 2026 – Dynacor Group Inc. (TSX: DNG) today announced record-breaking preliminary sales and production figures for 2025, signaling a year of strong operational recovery and setting the stage for an aggressive global expansion in 2026. The industrial gold ore processor surpassed its initial sales guidance for the third consecutive year and is now channeling its momentum into new facilities in Ecuador and Senegal, marking a pivotal shift in its long-term growth strategy.

In a statement, President and CEO Jean Martineau celebrated the results, attributing them to a robust final quarter. “Strong gold-equivalent production of 32,838 ounces in Q4-2025 helped deliver another record year for sales, while beating our revised annual production guidance,” he said. “2026 marks an important year forward for Dynacor as we begin unlocking the potential of our diversification strategy. With this year’s capital expenditure program and material increase in installed capacity, we are positioning the company for long-term growth.”

A Record Year Forged in Peru

Dynacor's 2025 performance underscores a period of significant achievement and operational resilience. The company reported record annual sales of $397.6 million, driven by the production of 113,791 gold-equivalent (AuEq) ounces, which exceeded its revised guidance for the year. The average realized price per ounce of gold sold stood at $3,494.

The fourth quarter was particularly instrumental in achieving these results. Production of 32,838 AuEq ounces represented a 20% increase compared to the same period in 2024 and marked the company’s strongest production quarter in two years. This powerful finish demonstrates a swift rebound from what the company described as “adverse Q2-Q3 ore supply events,” which included temporary government-mandated curfews on artisanal miners in parts of Peru that created supply headwinds.

The ability to navigate these challenges and still deliver record-breaking financial results for a third straight year has solidified the company’s reputation for operational excellence at its Veta Dorada plant in Peru and has built a strong foundation for its next chapter.

The Diversification Gambit: Ecuador and Senegal

The centerpiece of Dynacor's forward-looking strategy is its expansion beyond its traditional Peruvian stronghold. The company is making substantial capital investments to establish a foothold in both Latin America and West Africa, aiming to replicate its successful business model in new jurisdictions.

In Ecuador, Dynacor has committed between $22 million and $25 million in capital expenditure for 2026 to retrofit the recently acquired Svetlana plant. This investment, which includes $7 million deferred from 2025, will focus on upgrading critical infrastructure such as tanks, cyclones, and tailings facilities. The company expects to process the first ore from the Svetlana plant in the fourth quarter of 2026, with a target of relaunching operations at 300 tonnes per day and achieving commercial production in the first quarter of 2027.

Simultaneously, Dynacor is advancing a pilot project in Senegal. With a planned 2026 capital expenditure of $4 million to $5 million, the company is moving from planning to the on-site delivery of equipment for a 50-tonne-per-day pilot plant. First ore processing in Senegal is anticipated in early Q2-2026. This West African entry is further supported by the signing of a Memorandum of Understanding with a potential joint venture partner and ongoing discussions with Ghana’s GoldBod, signaling a broader regional ambition.

This multi-continent expansion is a clear strategic effort to diversify its operational footprint, mitigate single-country geopolitical and supply risks, and tap into new, underserved artisanal mining communities.

Analyzing the Ambitious 2026 Outlook

Looking ahead, Dynacor has issued ambitious guidance for 2026, projecting sales to rise significantly to a range of $530 million to $580 million. Production is forecast to be between 125,000 and 135,000 AuEq ounces, incorporating the initial contributions from the new plants in Ecuador and Senegal. Projected net income is targeted between $22 million and $26 million.

A key assumption underpinning this guidance is an average gold price of $4,200 per ounce. While this is higher than the average price realized in 2025, it appears notably conservative when compared to current market conditions and forecasts from major financial institutions. With spot gold prices already trading above this level in January 2026 and analysts at firms like JP Morgan and Goldman Sachs predicting average prices could approach or exceed $5,000 per ounce, Dynacor may have built a significant cushion into its projections. If gold prices remain strong, the company is well-positioned to potentially outperform its own ambitious guidance.

For investors, the company has also reaffirmed its commitment to shareholder returns, planning to continue its monthly dividend of C$0.01333 per common share, equating to C$0.16 annually.

The Artisanal Model: Balancing Profit and Principle

Dynacor operates a unique business model that distinguishes it from traditional mining corporations. It does not own mines but instead functions as an industrial processor, purchasing ore exclusively from government-formalized artisanal and small-scale miners (ASM). This approach emphasizes a responsible and traceable supply chain, a feature increasingly demanded by the market, particularly luxury jewelers.

Central to this ethical framework is the company’s PX Impact® gold program. A premium paid by buyers for this certified gold is directed to the Fidamar Foundation, a non-governmental organization that invests in health and education projects within the Peruvian mining communities that supply Dynacor. This model creates a symbiotic relationship, offering miners a fair and stable market for their ore while promoting sustainable community development.

However, this reliance on the ASM sector carries inherent risks. The operational disruptions experienced in Peru during 2025 serve as a reminder of the sector's vulnerability to regulatory shifts, social unrest, and logistical challenges. As Dynacor expands into Ecuador and Senegal, it will need to navigate new regulatory landscapes and establish trust with local mining communities. The company itself notes that final ore purchasing conditions in these new regions are “yet to be determined,” a critical variable that will be key to the success of its global diversification. The ultimate test for Dynacor will be its ability to successfully export its model of profitability and principle to these new frontiers.