Dynacor Gold Releases 2022 Guidances, Expects Significant Growth Again This Year
Dynacor Gold Mines (TSX: DNG) is expecting 2022 to be a banner year. The company has released its 2022 financial guidance as of this morning, with the firm expecting significant growth over its results posted last year.
The firm expects to generate between US$200 million and $220 million in total sales for the oncoming year, which is a 4-14% increase over the results exhibited last year, while being a significant 8-16% improvement in the firms prior revised sales guidance for 2021, indicating that the company expects growth to continue. Net income meanwhile is expected to be between US$11 million to US$13 million, a steep 22-37% improvement over the guidance for 2021.
The improvement in both revenue and net income is expected to directly translate to improved cash flow for the company. Dynacor is currently projected US$14 million to US$16 million in cash flow from operating activities throughout the fiscal year. The company meanwhile expects to spend between US$5 million and US$8 million in capital spending during the year.
Capital spending is expected to consist of an 8 hole, 2,735 metre drilling program at the firms Peruvian gold property, as well as capacity expansions at its processing plant.
The guidance follows the company seeing significant growth in 2021, with the firm posting a 93% increase in year over year sales with revenues of US$195.9 million, beating even the high end of its revised guidance, which sat at US$190.0 million. The year also saw the firm cross the 100,000 gold ounce production mark for the first time. The strong improvement followed capacity expansions at its Veta Dorada processing plant, which is expected to again be expanded this year.
Dynacor Gold Mines last traded at $3.18 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
