What you need to know: • DNG reported Q1 financial results that were in line with our expectations on production and beat on financial metrics. • Q1 revenue was $80.0M compared to our estimate of $77.4M and Q1 OCF (before WC) was $5.8M compared to our estimate of $4.0M. • Management remains on track for its 2025 guidance, implying that production will ramp up through the remainder of the year. • We believe that the stock offers great value at these levels (3x EBITDA). Yesterday after market close, Dynacor Group (DNG:TSX, DNGDF:OTC) announced its Q1 financial results, which were largely in line with our expectations. The quarter was again driven by the increased gold price, turning a 2% YoY decline in tonnes, into a 18% YoY increase in sales. Margins were largely improved compared to Q4, encouraging us that DNG can get back to the margins posted in H1/24 over the coming quarters and years. We are maintaining our BUY rating and C$7.50/share target price on Dynacor. Key Highlights • Tonnes processed for Q1 came in at 43.3Kt (-2% YoY, +5% QoQ), in line with our estimate of 44.0Kt. • Production for the quarter was 27.1Koz AuEq (-15% YoY, -1% QoQ), compared to our estimate of 27.6Koz. • Q1 sales came in at $80.0M (+18% YoY, +9% QoQ), beating our estimate of $77.4M, largely due to the higher gold price. Our model assumed a gold price of $2,800/oz vs. the $2,878/oz realized by DNG. • Gross cash margin for the quarter was 12%, in line with our forecast of 12%. This came as an improvement to the 10% reported last quarter, but still below the 15-16% reported in Q1-Q3/24. • OCF (before working capital) was $5.8M (7% of revenue) in Q1 vs. our estimate of $4.0M. Similar to gross cash margins, margins improved from the 4% margin in Q4/24 but were still below the 8-9% in Q1-Q3/24. • Net income for Q1 came in at $5.1M vs. our estimate of $3.1M and $4.8M in Q1/24. • Capex for the quarter was $1.3M, lower than our estimate of $3.5M. We remind readers of DNG’s capex guidance of up to $15M, implying a ramp up through the remainder of 2025. • The Company finished the quarter with $59.3M in cash and equivalents and $1.1M in debt, after generating >$14M in FCFF.