DNG: Strong 2025 Guidance & Fast-Tracked Growth Plans
What you need to know:• DNG reported its 2025 guidance which includes revenue of $345-375M (+27% on realized sales) and net income of $14-17M.
• Dynacor has received EIA approval to begin construction of a 50,000tpd pilot plant in Senegal and plans to be finished construction by Q1/26.
• DNG plans $1B in sales by 2030, representing a ~3x from 2024E sales.
• We remain bullish on DNG going into 2025 and beyond as its kicks off its plans for expansion in both Latin America and West Africa.
This morning, Dynacor Group (DNG:TSX, DNGDF:OTC) announced its 2025 guidance, including revenue of $345-375M and net income of $14-17M. This came ahead of our expectations on revenue driven by the increased gold price, while the net income was lower than expected due to investments in growth. On February 11th, DNG provided an update on plans to expand into Western Africa and Latin America. This comes as part of the Company’s five-year plan to achieve $1B in sales by 2030. We are maintaining our BUY rating and target price on Dynacor at C$7.50/share.
2025 Financial Guidance
Based on the many growth initiatives that DNG is planning (see section below), 2025 will be a year of planning and permitting with still limited capital allocation to these initiatives. Highlights from the guidance include:
• Production of 120-130Koz AuEq vs. 120.1Koz in 2024E (+4% YoY at the midpoint) and our estimate of 146.2Koz.
• Revenue of $345-375M (+27% on 2024 realized sales) assuming a gold price of $2,800-3,000/oz. This compares to our estimate of $292.5M (assuming $2,000/oz).
• Net income of $14-17M compared to our estimate of $19.5M and $18.0M in 2024E. The lower profitability is due to the focus on accelerating future growth, spending an additional $3M in operating costs for expansion plans.
• $5-7M in capex in Senegal and $5-8M in sustaining capex in Peru, totalling $10-15M vs. our estimate of $14M. Capex at the Veta Dorada plant in Peru will be principally used to upgrade equipment, the tailings post, and the employee base camp. The $5-7M of capex in Senegal includes groundwork, procurement, construction, and installation of a 50tpd pilot plant.
• DNG also plans to complete an environmental impact study in one of our target countries.
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