"We delivered a strong start to the year that tracks both our operational and expansion plans," said Jean Martineau, President & CEO. "Operations maintained strong ore supply momentum, which, coupled with higher recoveries, resulted in record first-quarter production volumes. Supported by the higher gold pricing, this operational outperformance translated into record earnings per share and operating cash flow. With initial production from two new plants set to come online this year, including the first from Senegal later this quarter, we remain firmly on track to deliver stronger production in the second half of the year and achieve our full-year guidance."
Q1-2026 Highlights
Excellent operational performance, driven by stable feed and improved recoveries:
At-capacity processing for a total of 46,655 tonnes of ore.
Production of 32,791 AuEq ounces, setting a first-quarter historical record.
Excellent financial results due to strong operations and higher realized gold prices:
Record sales of $154.1 million in Q1-2026 compared to $80.0 million in Q1-2025.
Record gross margin of $17.4 million (11.3% of sales) in Q1-2026, compared to $9.0 million (11.2% of sales) in Q1-2025.
Record EBITDA2 of $13.6 million, compared to $7.3 million in Q1-2025, including $0.8 million in non-recurring expenses.
Record net income of $7.3 million, compared to $5.1 million in Q1-2025.
Record operating cash flows before changes in working capital items of $10.1 million, compared to $5.8 million in Q1-2025.
Record cash gross operating margin of $578 per AuEq ounce sold3.
Record cash flows from operating activities before changes in working capital per share of 0.24$ in Q1-2026 compared to 0.15$ in Q1-2025.
Steady execution of international expansion:
Senegal: 50-tpd pilot plant approximately 85% complete, key equipment delivered and permits secured, and initial agreements for ore supply are in place for Q2-2026 targeted commissioning.
Ecuador: Upgrade of Svetlana plant infrastructure launched (tailings dam, ball mill and crushing area), most long lead equipment ordered and permitting underway, with first production expected in Q4-2026.
Continued focus on shareholder returns: Disbursed a monthly dividend representing CA$0.16 per share on an annual basis or a 2.7 % dividend yield based on the current share price.
Planned CEO succession: Mr. Jean Martineau to step down following June 2026 annual general meeting (AGM) and be succeeded by Mr. Daniel Misiano, currently Chief Operating Officer.
SenegalThe 50-tpd pilot plant in Kédougou continues to advance on schedule. Concrete work on the modular processing plant is near-complete, and erection of structural steel is advancing well in the crushing and grinding areas. Construction of the processing plant is about 85% complete, and civil works for the ball mill module have ended. Procurement is almost complete, with most equipment on site already. Mechanical installation of the crushing area is ongoing, and all required permits are in place to begin commissioning in Q2-2026.
Laboratory and tailings status: The laboratory is near-complete, and cold commissioning has begun while awaiting the initial ore samples. The tailings storage facility (TSF) cell is almost complete, and placement of the geomembrane has begun.Operational readiness: Dynacor is recruiting local operations and technical teams to support the plant start. Initial agreements have been made with local ore suppliers for the pre-commissioning stockpile.
Figure 1: Leach tank work advancing at the Senegal modular pilot plant.
EcuadorOn July 14, 2025, the Corporation completed the acquisition of 100% of the shares of the Svetlana processing plant and related assets for a total cash consideration of $9.75 million. The acquisition includes plans to upgrade and ramp up the facility to a production capacity of 300 tpd, before progressively increasing to 500 tpd. Integration and upgrade work is progressing well with the aim of processing first ore in Q4-2026.
Figure 2: Replacing the carbon regeneration kiln at Svetlana in Ecuador.
Processing plant upgrade: Work on the plant infrastructure was launched in the quarter with the mechanical and electrical constructor teams both mobilised on site. Refurbishment of the crushing area is ongoing including fitting of new chutes and a conveyor belt. An audit of the ball mill has been completed. Most long-lead items have been secured. Local recruitment has commenced.
Civil engineering work has begun for the remediation of the two decommissioned tailings storage facilities (TSFs) and the upgrade of the third active TSF.
Dynacor has applied for a commercialization permit and expects to submit its application for an Investment Protection Agreement shortly with the government of Ecuador. All required permits should be in place in Q4 2026.
2026 Outlook versus Actuals
At quarter-end, the Corporation's performance was tracking its 2026 guidance:
Sales between $530-$580 million (YTD $154.1 million).
Net income between $22-$26 million (YTD $7.3 million).
Production between 125,000-135,000 AuEq ounces (YTD 32,791 AuEq ounces).
Capital expenditure of $32.5-$39 million to achieve the 2026 growth plan and sustain Peru operations (YTD $3.9 million) of which $22-$25 million in Ecuador, $6-$8 million in Peru, $4-$5 million in Senegal and $0.5-$1 million in other jurisdictions.
A number of assumptions were made in preparing the 2026 outlook including
Production range includes first ore from the Senegal and Ecuador plants. This estimate assumes that the Svetlana plant processes first ore in Q4-2026 and that operations exit the year at a throughput rate of approximately 150 tpd.
Price of gold: $4,200 per ounce
No increase in installed operating capacity in Peru and steady ore supply.
The ore grade supplied may vary with the evolution of the gold price and the purchasing conditions. Final purchasing conditions in Ecuador and Senegal are yet to be determined.
As most of the Corporation's cost of sales relate to the daily purchasing of ore, its margin (and net income) is impacted by the inventory level at quarter-start, the favourable, gradual appreciation of the gold price, and by the ore supply in the period.
Operations Overview
For the three-month periods ended March 31,
2026
2025
Volume processed (in tonnes)
46,655
43,341
Tonnes per day (tpd)
518
482
AuEq ounces produced
32,791
27,050
During Q1-2026, the Corporation processed nearly 46,700 tonnes (518 tpd on average), at the higher end of its historical range, reflecting increased throughput compared to Q1-2025.
Strong production in Q1-2026 was mainly driven by higher tonnes processed and higher recoveries compared to Q1-2025.
Financial Overview
For the three-month periods ended March 31,
(in $'000) (unaudited)
2026
2025
Sales
154,087
79,968
Cost of sales
(136,695
)
(70,992
)
Gross operating margin
17,392
8,976
General and administrative expenses
(3,863
)
