Dynacor Group Inc. (TSX: DNG) has announced its unaudited financial and operational results for the first quarter ended March 31, 2026, achieving record-breaking performance across multiple metrics. The company reported record sales of $154.1 million, a substantial increase from $80.0 million in the same period last year, driven by strong operational performance and higher realized gold prices.
Operational Highlights
The company processed 46,655 tonnes of ore at full capacity, producing 32,791 gold equivalent ounces, a first-quarter historical record. This production was supported by stable ore supply and improved recoveries. President and CEO Jean Martineau stated, 'We delivered a strong start to the year that tracks both our operational and expansion plans. Operations maintained strong ore supply momentum, which, coupled with higher recoveries, resulted in record first-quarter production volumes.'
Financial Performance
Record gross margin reached $17.4 million (11.3% of sales), compared to $9.0 million (11.2% of sales) in Q1-2025. EBITDA hit a record $13.6 million, up from $7.3 million, including $0.8 million in non-recurring expenses. Net income soared to $7.3 million, compared to $5.1 million in the prior year. Operating cash flows before changes in working capital items also set a record at $10.1 million, up from $5.8 million. The cash gross operating margin per gold equivalent ounce sold reached a record $578.
International Expansion Progress
Dynacor is advancing its international expansion with two key projects. In Senegal, the 50-tonnes-per-day pilot plant in Kédougou is approximately 85% complete, with key equipment delivered and permits secured. Commissioning is targeted for Q2-2026, and initial agreements for ore supply are in place. Concrete work on the modular processing plant is near-complete, and structural steel erection is advancing in the crushing and grinding areas. The laboratory is near-complete, and cold commissioning has begun. The tailings storage facility cell is almost complete, with geomembrane placement underway.
In Ecuador, the upgrade of the Svetlana plant infrastructure has been launched, including the tailings dam, ball mill, and crushing area. Most long-lead equipment has been ordered, and permitting is underway. First production from Ecuador is expected in Q4-2026.
Shareholder Returns and Leadership Transition
The company continued its focus on shareholder returns by disbursing a monthly dividend representing CA$0.16 per share on an annual basis, yielding approximately 2.7% based on the current share price. Additionally, CEO Jean Martineau will step down following the June 2026 annual general meeting, with Chief Operating Officer Daniel Misiano set to succeed him.
Dynacor remains on track to deliver stronger production in the second half of the year and achieve its full-year guidance, supported by the upcoming commissioning of the Senegal pilot plant and the Ecuador upgrade.
