Canada's Dynacor Q3 sales rise on record throughput

Overview

• Canada ore processor's Q3 sales rose 49% yr/yr on record throughput and higher gold prices

• Q3 net income declined yr/yr as gross margin percentage fell

• Company reaffirmed 2026 sales guidance but lowered net income outlook

Outlook

• Dynacor reaffirms 2026 sales guidance at $530-$580 mln

• Company revises 2026 net income guidance to $16-$18 mln from $22-$26 mln

• Dynacor lowers 2026 capital expenditure guidance to $27-$30 mln from $32.5-$39 mln

Result Drivers

• RECORD THROUGHPUT - Co said higher volumes processed and sold drove record quarterly production and sales

• GOLD PRICE VARIATION - Higher average gold sales price contributed to increased sales, but margin was affected by gold price fluctuations during the quarter

• INVENTORY IMPACT - Gross margin was affected by higher inventory at the start of the quarter, which was mainly purchased at higher gold prices in the previous quarter

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy."

• Wall Street's median 12-month price target for Dynacor Group Inc is C$8.50, about 55.4% above its November 10 closing price of C$5.47

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Nov 9 - Barrick Mining Q3 revenue rises 22% on higher gold prices

• Nov 10 - Canada's Discovery Mining Q3 revenue rises 57% on gold output, prices

• Nov 10 - Canada's Andean Precious Metals Q3 revenue doubles on deferred sales, higher prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)