TSX:DNG

Stock Analysis Report

Dynacor Gold Mines

Executive Summary

Dynacor Gold Mines Inc., an ore processing and exploration company, produces gold and silver in Peru.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Dynacor Gold Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DNG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.5%

DNG

4.7%

CA Metals and Mining

0.1%

CA Market


1 Year Return

3.8%

DNG

5.4%

CA Metals and Mining

4.5%

CA Market

Return vs Industry: DNG underperformed the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: DNG matched the Canadian Market which returned 4.5% over the past year.


Shareholder returns

DNGIndustryMarket
7 Day10.5%4.7%0.1%
30 Day8.6%4.2%0.9%
90 Day16.7%14.1%3.7%
1 Year6.5%3.8%6.0%5.4%7.8%4.5%
3 Year-14.7%-17.8%0.2%-1.5%18.2%7.5%
5 Year2.2%-1.6%26.6%22.9%33.7%14.2%

Price Volatility Vs. Market

How volatile is Dynacor Gold Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dynacor Gold Mines undervalued compared to its fair value and its price relative to the market?

10.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DNG (CA$1.89) is trading above our estimate of fair value (CA$1.24)

Significantly Below Fair Value: DNG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DNG is good value based on its PE Ratio (10.2x) compared to the Metals and Mining industry average (17.4x).

PE vs Market: DNG is good value based on its PE Ratio (10.2x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DNG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DNG is good value based on its PB Ratio (0.9x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Dynacor Gold Mines forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dynacor Gold Mines has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Dynacor Gold Mines performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNG has high quality earnings.

Growing Profit Margin: DNG's current net profit margins (5.3%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: DNG's earnings have declined by -3.5% per year over the past 5 years.

Accelerating Growth: DNG's earnings growth over the past year (11.9%) exceeds its 5-year average (-3.5% per year).

Earnings vs Industry: DNG earnings growth over the past year (11.9%) underperformed the Metals and Mining industry 11.9%.


Return on Equity

High ROE: DNG's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dynacor Gold Mines's financial position?


Financial Position Analysis

Short Term Liabilities: DNG's short term assets ($29.0M) exceed its short term liabilities ($6.5M).

Long Term Liabilities: DNG's short term assets ($29.0M) exceed its long term liabilities ($4.6M).


Debt to Equity History and Analysis

Debt Level: DNG is debt free.

Reducing Debt: DNG had no debt 5 years ago.

Debt Coverage: DNG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DNG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DNG has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DNG's debt is covered by short term assets.


Next Steps

Dividend

What is Dynacor Gold Mines's current dividend yield, its reliability and sustainability?

3.15%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DNG's dividend (3.15%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: DNG's dividend (3.15%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DNG has been paying a dividend for less than 10 years.

Growing Dividend: DNG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.1%), DNG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.3yrs

Average management tenure


CEO

Jean Martineau (69yo)

12.3yrs

Tenure

US$431,739

Compensation

Mr. Jean E. Martineau serves as Member of Advisory Board at TomaGold Corporation. He has been a Director of Argex Titanium Inc. since June 27, 2018. He has been the Chief Executive Officer and President of ...


CEO Compensation Analysis

Compensation vs Market: Jean's total compensation ($USD326.74K) is above average for companies of similar size in the Canadian market ($USD154.65K).

Compensation vs Earnings: Jean's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jean Martineau
President12.3yrsUS$431.74k2.23% $1.6m
Léonard Teoli
VP & CFO8.3yrsUS$304.78k0.59% $429.4k
Jorge Cárdenas
Vice-President of Operations1.5yrsUS$191.30k0.12% $90.5k
Dale Nejmeldeen
Director of Investor Relations0yrsno datano data
René Branchaud
Corporate Secretary13.1yrsUS$1.32k0.32% $235.5k

10.3yrs

Average Tenure

Experienced Management: DNG's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean Martineau
President12.3yrsUS$431.74k2.23% $1.6m
Réjean Gourde
Independent Director2.1yrsUS$83.43k0.064% $47.2k
Pierre Lépine
Chairman of the Board2.3yrsUS$73.37k0.22% $162.5k
Eddy Canova
Independent Director11.1yrsUS$62.32k0.080% $58.6k
Marc Duchesne
Independent Director4.7yrsUS$72.72k0.094% $69.2k
Roger Demers
Independent Director11.1yrsUS$76.17k0.22% $163.7k
Isabel Rocha
Independent Director1.8yrsUS$69.09k0.024% $17.4k

4.7yrs

Average Tenure

Experienced Board: DNG's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DNG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dynacor Gold Mines Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dynacor Gold Mines Inc.
  • Ticker: DNG
  • Exchange: TSX
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$73.308m
  • Shares outstanding: 38.79m
  • Website: https://www.dynacor.com

Number of Employees


Location

  • Dynacor Gold Mines Inc.
  • 625 René-Lévesque Boulevard West
  • Suite 1105
  • Montreal
  • Quebec
  • H3B 1R2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNGTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2007
DGFDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2007
DNGD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2007

Biography

Dynacor Gold Mines Inc., an ore processing and exploration company, produces gold and silver in Peru. The company also explores for copper and precious metals. Its flagship property is the Tumipampa property covering an area of 10,001 hectares located in the province of Abancay, Peru. The company was formerly known as Dynacor Mines Inc. and changed its name to Dynacor Gold Mines Inc. in April 2007. Dynacor Gold Mines Inc. was incorporated in 2006 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:19
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.