FREE

DNG: Increasing Target Price on 2026 Guidance

What you need to know:
• DNG reported preliminary Q4 and 2025 operating results, as well as 2026 guidance, both coming in strong.
• The Company produced 113.8Koz of gold in 2025, above our estimate of 108.3Koz and record sales of $397.6M vs. our expected $347.6M.
• 2026 production guidance is 125-135Koz, with contribution from the Senegal pilot plant (starting in Q2) and the Svetlana plant in Ecuador (starting in Q4), setting DNG up for solid growth in 2026 and beyond.

This morning, Dynacor Group Inc. (DNG:TSX, DNGDF:OTC) reported preliminary Q4 and full-year operating results alongside initial 2026 guidance, delivering another record year for sales while exceeding both our estimates and its revised annual production guidance. Strong Q4 performance helped offset ore supply disruptions experienced earlier in the year, and continued operational optimization, combined with early contributions from new growth initiatives in Ecuador and Senegal, position Dynacor for a meaningful uplift in production and sales in 2026, supported by elevated gold prices. We are maintaining our BUY rating and increasing our target price to C$9.50/share (prev. C$7.50/share) on DNG.

Q4 & Full-Year 2025 Highlights
• Production of 113.8Koz AuEq, exceeding revised guidance (upper end of 110Koz AuEq) and ~5% above our estimate of 108.3Koz, though slightly below 117.6Koz AuEq produced in 2024, reflecting temporary ore supply constraints earlier in the year.
• Record sales of $397.6M, well above initial guidance of $375M and revised guidance of $345–350M, and above our expectation of $347.6M (+14% beat), representing a ~40% YoY from $284.4M in 2024, driven primarily by higher realized gold prices.
• DNG realized an average gold price of $3,494/oz in 2025.
• Q4 production was 32.8Koz AuEq (+20% YoY) and the second strongest Q4 in DNG’s history, supported by improved recoveries and operating efficiencies.
• Advancement of growth initiatives, including the acquisition and retrofit of the Svetlana plant in Ecuador (initial production expected in Q4/26) and continued progress on the 50tpd pilot plant in Senegal, with first ore expected in early Q2/26.