Thirteen Years of Consecutive Profit – Dynacor’s Unique Business Model Unlocks Steady Growth

Thirteen Years of Consecutive Profit – Dynacor’s Unique Business Model Unlocks Steady Growth

[Music] dandor is a dividend paying gold producer that purchases gold from smallscale artisanal miners in 2023 the company had sales over over 250 million up 26% from the year prior dinor ticker DG on the TSX president and CEO is Jean Latino Jean welcome to Koo well good morning it’s pleasure to be with you today please expl explain the business model at dinor well this is a particular business model because we we don’t find it anywhere in the world in fact we operate a mill uh where we process all that we buy from aronal Miner so we’re not a miner uh as as is we don’t operate any mine we just buy the or produced by artisanal Miner 100% of our feed come from these artisanal miners uh evid listed in the uh formalizing process all formalized miners in the country so we buy it we process it we extract the gold and we export it in Switzerland now you’ve uh the business plan has been working well you had note in your presentations you’ve had 13 years of consecutive profit yes we’ve been operating this Mill since 1998 but at the beginning the gold price was very low it was just to help Finance exploration we did at the time but uh right now we’ve been uh profitable for the last 13 years in fact and last year we were the ninth gold exporter from Peru including all the mining uh companies now Jean uh your company is a Pro specialist why is it important to know the country and the community where you work well you know we are buying or from uh artisanal miners all over the country from North to South so we have you know the country very well and it’s a it’s a very special uh business model because we work with individual miners all over the country so you have to know your uh your your miners your guys uh you have to establish a very good relationship with them to earn their their trust and uh and so on so it’s it’s a long shot and we have to be very close to them we have to work with them on a transparent and a very transparent way to to earn their trust and keep them uh working with us what’s the PX impact gold program Sean well in uh we exported a go to a refinery in Switzerland called priso and with them we establish a program where their clients accept or some of their clients accept to pay a premium over the gold price and this premium is 100% invested in a NGO that we have created through called fedar and this NGO and invest in uh Artis Alon minor uh villages uh in education mostly in education in hell to to improve their uh their life over there so uh it’s it’s financed by these uh these final client and uh this year for example we’re generating almost $1 million in in this way to invest in these different countries in in these different villages in the in the country now John you have some aggressive plans to grow the company at dinor yes because we have developed this business model over the years and it it’s not easy because when you operate a mill uh in a mine you don’t want to mix your ore with other ore because your recovery rate will will shrink uh substantially so in our case we’re buying or from more than 700 different uh uh group of miners it means 700 different mines and we have to mix that to to operate so you have to know what you uh you can buy at what condition you can buy it and how to mix that after that to process it and have a regular and very high recovery rate so as we built a Kno how over that uh with this over the years now we feel that we uh we can expand that and you know that today in the world it’s said that you have probably more than 20 million Aton miners in the world so there is a lot of place for expansion and as we build this KN how now we want to expand that in other countries in Latin and America and in uh Africa too and we have been contacted by different uh government over the over over these uh these continents to to go there and build that because it’s probably the best way to formalize the Aral Miners and avoid them to use mercury to extract the gold now gold is hitting several time highs this year what does that mean for dinor well it means that it’s exactly as for big miners uh for big mines uh as the price is higher the miners are able to extract gold at a lower grade so it means that the production the general production can increase and is increasing so with the higher gold price you have more artison Miner and these AR miners will produce more or lastly Sean what are some Milestones over the next 12 months well in fact we’re looking always to increase our Milling capacity in the country in Peru where we are now so we expect uh probably by next year to be able to increase that again we’re looking to increase in uh to to start new operations in other Latin American country actually we’re looking in in Ecuador for example so we hope to have in coming uh year and a half two years production uh in that country and we’re looking to expand in Western Africa mainly in Sagle uh Ivory Coast and Ghana we’re looking at these three countries today and we expect to build a a pilot plan uh later this year in Sagal to start with to to see how these miners are operating there what under what condition we can operate with them and after that buil a bigger Mill in these countries to uh to to operate there and produce in these countries Joan thank you very much for your time well thank you very much been a pleasure with to be with you today my name is Michael McRae you’re watching Takeo mining

Dynacor is helping artisanal miners market their gold as being environmental and socially responsible, said Jean Martineau, president and CEO of Dynacor.

In late April Martineau spoke to Kitco Mining.

Dynacor (TSX:DNG) is a dividend-paying industrial gold ore processor headquartered in Montreal, Canada. The corporation is engaged in gold production through the processing of ore purchased from the ASM (artisanal and small-scale mining) industry. At present, Dynacor operates in Peru, where its management and processing teams have decades of experience working with ASM miners. Martineau said the model is unique, and it is unusual since it has weathered the usual boom and busts in the mining sector.

“It’s a particular business model, because we don’t find it anywhere in the world,” said Martineau. ”We’ve been profitable for the past 13 years.”

Dynacor produces environmental and socially responsible gold through its PX IMPACT® gold program. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors pay a small premium to our customer and strategic partner for this PX IMPACT® gold. The premium provides direct investment to develop health and education projects for our artisanal and small-scale miner’s communities.

Dynacor intends to expand its processing operations in other jurisdictions as well. It also owns a gold exploration property (Tumipampa) in the Apurimac department.

00:00 – Dynacor’s core business is artisanal mining
01:16 – 13 years of consecutive profits
01:47 – Dynacor is a Peru specialist
02:33 – What’s PX Impact?
03:29 – Growth plans at Dynacor
04:58 – Gold is hitting all-time highs
05:25 – Milestones at Dynacor over the next 12 months
__________________________________________________________________
Kitco News is the gold standard in precious metals, commodities, cryptocurrencies, mining, and financial news.

SUBSCRIBE to our channel to stay up to date on the latest market and industry news.

For breaking news, views, charts, and data on precious metals, cryptocurrencies, and financial markets – visit us at https://www.kitco.com

To get market updates on the go, download the Kitco Gold Live! APP – https://applications.kitco.com

Stay connected:

Twitter – https://twitter.com/kitconewsnow
Instagram – https://www.instagram.com/kitconews
Facebook – https://www.facebook.com/KitcoNews
LinkedIn – https://www.linkedin.com/company/kitconews
StockTwits – https://stocktwits.com/kitconews

Live gold price and chart: https://www.kitco.com/gold-price-today-usa/
Live silver price and chart: https://www.kitco.com/Silver-price-today-USA/
Live crypto market data: https://www.kitco.com/price/crypto/

Learn more about Kitco News: https://www.kitco.com/news/about/

For more information on advertising, sponsorship and marketing promotions – please visit our online media kit at: www.kitco.com/advertising

Disclaimer: The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News.