Dynacor Group Targets 1,000 TPD Milling Capacity With Ecuador, Senegal Push

Dynacor Group TSE: DNG outlined plans to expand its gold and silver processing operations beyond Peru, highlighting recently acquired capacity in Ecuador and a new pilot facility in Senegal as the company seeks to double milling capacity by mid-2028.

During a presentation, a company representative described Dynacor as “a miller, not a miner.” The Montreal-based company purchases ore from formalized or formalizing artisanal and small-scale miners, processes it into gold and silver doré bars, and exports the finished product to refineries in Switzerland.

The representative said Dynacor has operated in Peru for nearly three decades and has developed relationships with more than 750 suppliers over that period. The company emphasizes traceability, documenting the source of ore from registered suppliers through processing and final sale, according to the presentation.

Artisanal mining market

Dynacor said its customer base consists exclusively of artisanal miners that are registered under local regulations or are in the formalization process. The company cited World Gold Council statistics indicating that more than 20 million people are involved in artisanal gold mining and that the sector accounts for more than 20% of annual registered global gold production.

The presenter said artisanal miners may produce at least 750 tonnes of gold annually, while noting that the total could be higher because much of the sector remains informal. Dynacor said the World Gold Council and the London Bullion Market Association have recognized its model as an example of an approach to the artisanal mining ecosystem.

Dynacor’s model relies on purchasing ore at a discount to prevailing LBMA pricing, with adjustments based on ore quality and recovery potential. The company said its in-house laboratory can assess a supplier’s lot within four to six hours, and payments are often made electronically within 24 to 72 hours.

The company representative said this process, along with consistent pricing and prompt payment, has supported supplier loyalty. Dynacor also said that its processing model can help reduce the use of mercury by artisanal miners who enter the formal supply chain.

Expansion in Ecuador and Senegal

Dynacor said it acquired an existing processing plant in Ecuador in July 2025 and expects the facility to begin operations in December. The plant, called Svetlana, has total capacity of 1,500 tonnes per day, though Dynacor initially plans to use only part of that capacity.

The company’s stated goal is to ramp the Ecuador operation to 500 tonnes per day by mid-2028. Combined with its approximately 500-tonne-per-day capacity in Peru, Dynacor said it expects to reach milling capacity of about 1,000 tonnes per day by that point.

Management said the Ecuador expansion is being supported by a procurement team that includes purchasing specialists, a geologist and a mining engineer. The company is also working with government entities, the Central Bank of Ecuador and planetGOLD to identify potential artisanal suppliers.

Dynacor also recently inaugurated Galam, a 50-tonne-per-day pilot plant in Senegal. The facility has been operating for about four weeks and has completed its first pour of gold and silver doré, according to the presentation. The company said the pilot is intended to help it understand market conditions in West Africa and establish relationships with artisanal miners and mining communities.

A decision on a potential second phase in Senegal, which could involve a 300-tonne-per-day facility, is expected in the second half of the following year, the presenter said. Dynacor added that it has a 50-hectare site available for further development.

Capital spending and operational considerations

Dynacor said 2026 has been a significant capital expenditure year, with close to $35 million allocated to investments in Senegal, Ecuador and Peru. The company said it remains focused on delivering its production and financial guidance, with third-quarter results expected in mid-November.

The presenter said volatile gold prices have created challenges this year, particularly in managing inventory and working capital. Dynacor evaluates ore procurement and inventory levels daily because holding too much inventory can expose the business to gold-price movements, the company said.

Management also discussed operational risks including weather, transportation disruptions and security. The company said it has not experienced theft issues to date and maintains procedures intended to limit exposure after gold pours. Doré is not publicly announced in advance and is transported from Peru shortly after pouring, the presenter said.

In response to questions, Dynacor said it sells doré rather than concentrate. The company said this distinguishes it from some competing processing plants, including facilities near its Ecuador operation that offer toll milling and return concentrate to miners.

About Dynacor Group (TSE:DNG)

Dynacor Group is an ore processing company dedicated to producing gold sourced from artisanal miners. Since its establishment in 1996, Dynacor has pioneered a responsible mineral supply chain with stringent traceability and audit standards for the fast-growing artisanal mining industry. By focusing on formalized miners, the Canadian company offers a win-win approach for governments and miners globally. Dynacor operates the Veta Dorada plant and owns a gold exploration property in Peru . The company is expanding to West Africa and within Latin America .

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