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DNG: Making Progress with International Expansion

What you need to know:
• DNG announced an update today on its expansion plans in Senegal, Ecuador, and Ghana.
• In Senegal, the construction of its 50tpd pilot plant remains on schedule with the first shipments of equipment expected to be on site in mid-November.
• DNG continues to complete early-stage work in Ecuador and Ghana, setting up the Company well to execute on its bold growth plans.

This morning, Dynacor Group (DNG:TSX, DNGDF:OTC) provided an update on its expansion plans in West Africa and Latin America. DNG is making solid strides towards its 2030 goal of $1B in sales. We also provide a preview of Q3 financial results, which will be reported in mid-November. We are maintaining our BUY rating and C$7.50/share target price on Dynacor.

Senegal
Management outlined that the construction of the 50tpd pilot plant in Senegal continues on schedule. The first shipments of the modular plant have left Durban, South Africa and are expected on site in mid-November. DNG stated that phased delivery of the remaining containers on site will continue until January. The construction contractor has been mobilized for site works, including the access road and clearing of the plant area. Engineering work for the tailings pond is progressing, informed by the already completed geotechnical drill program.

Ecuador
DNG highlighted that integration of its subsidiary in Ecuador continues on three fronts: organizational, operational, and community. We discuss this in more detail on page two, but generally, progress in Ecuador is moving quickly. Banking, fiscal, and legal are moving forward, plant assessments are complete, and EPCM contract bids are expected as early as December. A community consultation on the environmental plan is complete and pending approval, while community engagement and training initiatives are underway.

Ghana
Formal proposals are being prepared for Goldbod and Ghana’s government agencies to enable Dynacor’s proposed operations to be classified correctly within the country’s legal and fiscal framework. This is a key step prior to DNG allocating significant capital to these initiatives in Ghana.