HI there,
It looks like Dynacor hasn't exactly been a strong performer. Yes, it has bounced off lows in a big way, but it is flat over the past few years. This is likely a result of flat gold production. As a microcap, it won't generate much attention if it isn't growing at a good clip, or at the very least has an attractive asset base. That being said, at $1,800 an ounce it is likely that profitability will increase in a big way over the next few quarters.
On the bright side, not many microcaps are actually producing and turning a profit and DNG is heading towards its 10th year of profitability. Likewise, it has no debt and USD$16.1 million in cash. Perhaps the most impressive point however, is that it has not diluted shareholders - a rarity in the microcap space. In fact, it last issued shares back in 2010. To top things off, it pays a reasonable dividend which it raised by 50% last year.
From what i can tell, it looks like it is planning on expanding its Peru operations and enter into Senegal's ASM industry. I believe it is the latter you are referring to as it recently announced it has completed its DD and will build an ore-processing plant in the country. From what i can tell, there is significant untapped potential for several small scale miners to supply gold ore to Dnacor. The project is small in scale with only 3 miners on board, but has big potential to expand with approximately 76 ASM operations in the area. It seems like the expansion was well researched as it has been reviewing Senegal since 2018. Given its success in Peru, there is no reason it can't replicate that success in Senegal. The only downfall, is that Senegal is likely to come with additional geopolitical risk.
What isn't clear is what the project will cost, and what the expected production will be. Since this appears to be a pilot project, it is likely that it will be self-funded but there is no confirmation of this. If this is a nine-digit project, DNG will need financing. I think there are still too many unknowns to provide an educated opinion on whether or not this is a good idea. However, it does seem to have potential from what I have read thus far. Likewise, if it can deliver growth, than perhaps the markets will once again take notice of the company. Flat production in this space isn't going to cut it.
Mat