Q: Haven't seen a question about Dynacor for several months. Their most recent earnings report showed significant increases in production, revenue and earnings, a dividend increase and pretty low p/e ratio for a gold stock. The Senegal plant is on track for Q2 of this year. Wondering what you think of it as an investment. Would you rank it behind ARIS, OGC and PAAS?
5i Research Answer:
DNG remains cheap at 6X forward earnings and good revnue growth is expected wiht the help of higher gold prices. The balance sheet continues to look strong with $33 mln in cash and essentially no debt. They recently had a positive update on some plant expansions as well. They are going through a CEO transition but it appears to be orderly. Overall we htink it looks good. The biggest drawback is just that it operates in higher risk jurisdictions.