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A Gold Cash Flow Business Model
A lower riskgold producer
$13M+ CFannualized
$0.33 cash flow per share annualized
Paid off US$ 6.3 million of debt in last 5 months
26 consecutive quarters of profit
*CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25
A Debt-Free Cash Generator
DNG – TSX | DNGDF - OTC (Q)dynacor.com 2
Capital Market Summary
Market Summary
Stock Price (Year High-Low) $1.50 - $2.75
Ticker Symbol DNG - TSX
Shares Outstanding (Basic) 39M
Warrants Nil
Average Daily Volume (Shares) 90,513
Monthly Dividend TBD
Dividend Yield TBD
Director & Senior Management Ownership 4%
Capital Structure
Market Capitalization 74M
Enterprise Value (As of Sept 30, 2017) 82M
Debt Nil
DNG – TSX | DNGDF - OTC (Q)dynacor.com 3
Shareholder Return 2008-2018
-200%
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
1800%
2000%
2200%
DNG-TSX stock priceS/P TSX Global Gold Index
1558%
-38%
32% annualized return since
2008• Continues to profit through the cycles of the gold market
• Built to survive and prosper with or without a gold bull environment
DNG – TSX | DNGDF - OTC (Q)dynacor.com 4
Q3-2018Implied Share
PriceSee Slide #9
The Cash Flow Proven Dynacor Model
1Receive ore
shipments from
more than 400government registered
Peruvian artisanal gold miners
Weigh, assay and screen ore
deliveries for gold content
at our new modernized
plant
Pay miners after 24 hours from
delivery and process ore through mill
After 10-14 days of
processing
Receive payment for gold dore bars
from strategic partner, PX
Precinox
23
45
DNG – TSX | DNGDF - OTC (Q)dynacor.com 5
Record High Gold Production
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
5,208
6,733
5,181 5,087
6,206
6,895
6,287
7,0427,192
7,905
7,253
8,910
4,000
5,000
6,000
7,000
8,000
9,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly gold production ounces (Jan-Dec 2017)
24,068 ounces produced in Q4-2017, an
annualized basis of nearly 100,000 ounces
+71%79,897 ounces
produced in 2017
6
Ore Supply and Deliveries Growing
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
185
220
200
180185
215
190
245
265270
265
300
160
185
210
235
260
285
310
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Monthly Ore Processing Rate (TPD) in 2017
2018 goal ramp up to
360 TPD(tonnes per day)
+62%
*TPD is rounded to the nearest five (5) units
7
Rising Cash Flow & Compelling Value
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
51
136105
159
40
65
90
115
140
165
Cash Flow Per Ounce $CAD$CAD
Q4 2016
Q1 2017
Q2 2017
Q3 2017
CF From Operations
1,067 2,326 1,917 3,268
CF Per Share
0.03 0.06 0.05 0.083
CF Multiple
11 11 9 9
Currently Trading With A Multiple of
8.9 Times Cash Flow
8
Annualizing CF On Last Quarter Report
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
CAD$(Millions)
Q3 2017 Q3 2018
(TTM)
Last 2Yrs Price to CF
Multiple Range
Q3 2018 Implied Share Price
Cash Flow From
Operations 3.3 13.0
10-13
$3.30 to
$4.16Cash Flow Per Share
0.08 0.33
Assumes 10-13 times $0.33
cash flow per share
(TTM)
10% 13% 12% 14%
51015
Q4-16 Q1-17 Q2-17 Q3-17
Gross Margin % +40%
9*CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25
Strong Strategic Partner With Swiss Co
PX Precinox (www.pxgroup.com)
• Is one of 10 companies under the PX Group
• Experts in precious metal refining
• Mastered the process of high quality refining to finishing
• A leading Swiss producer of gold bars
• Partner of the PX Impact Gold Program
DNG – TSX | DNGDF - OTC (Q)dynacor.com 10
Circulating New PX Impact Gold
A lasting & positive contributionto the economic, social and environmental development of our mining communities
Environmental, social and ethical practices that respect human rights are an
integral part of the PX Impact Gold program
Guarantees complete traceabilityacross the gold ore supply chain coming
from government registered miners in Peru
The fund finances projectsin health, education, economic dev & the environment of the mining communities
An investment premium flows back
to our miner’s
communities
100% of the premium is paid into
the fund and reinvested into Dynacor’s mining
communities
PX ImpactEquals
Ethical Gold
DNG – TSX | DNGDF - OTC (Q)dynacor.com 11
Strategic Plan
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
Short Term Strategy > 3 – 12 Months• Self fund throughput growth to 360 TPD (CAPEX <$1M)• Propel Dynacor to largest gold ore processer in Peru (currently #2) • Define new dividend policy• Execute drill plan & advance flagship gold project, Tumipampa
Medium Term Strategy > 2 – 5 Years• Expand throughput growth to 600+ TPD• Bring to fruition low risk development plan on gold project, Tumipampa• Establish world renown brand as socially accountable high quality gold • Target yield contraction through responsible shareholder dilution plan and
per share growth (a sustainable/steady dividend history)
12
Our Exploration Asset, Tumipampa
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
• 500 km southeast of
Lima
• 9,756 ha
• Surface results pending
• Drilling planned for
2018 (drill results)
• 21,610 meters of drill
results
• 2,881 meters of
underground workings
13
Concession Map
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
CONCESSION MAP
TUMIPAMPA IV 2014
TUMIPAMPA III 2014
TUMIPAMPA VB 2014
TUMIPAMPAVI 2014
TUMIPAMPA VII 2014
TUMIPAMPA VIII 2014
PROYECTO TUMIPAMPA
MERIDIAN(HORIZONTE)
BARRICK
GOLDENIDEALGOLD
MINING
SUPERSTRONG
MERIDIAN(HORIZONTE)
MERIDIAN(HORIZONTE)
ORTEGA
TRIVEÑO
ORTEGA
ORTEGA ORTEGA
ORTEGA
CHANCADORA CENTAURO
IAM GOLD
SOUTHERNPERU
TAPAIRIHUAJA(VETADORADA)SOUTHERNPERU
BARRICKFRESNILLO PERU
SOUTHERNBARRICK
ANGLOAMERICAN
FRESNILLO PERU
BEER CREEK
CONCESIONES TUMIPAMPA
9755.60 Aprox. Has -Área neta
Total 22 Concesiones
Escala Gráfica
PETITORIOS EN DISPUTADESDE EL 2014
0 1 2km
ZONAS LIBRES
CONCESIONES PERSONASNATURALES Y/O PPM
TUMIPAMPA IX 2014
TUMIPAMPAX 2014
TUMIPAMPAXI 2014
TUMIPAMPAXII 2014
NICOLE 11
DISEMINADOTUMIPAMPA
V 2014
MINERA DEL NORTE SA
14
Geological Map Of Disseminated Zone
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
0 1 KM
N
Sym >=Minimum <Maximum
0.00 < 0.05
0.05 0.10
0.10 0.30
0.30 1.00
1.00 3.00
>= 3.00 100.00
Au (gr/tn)
Mármol
Km-Fe
Cuarzomonzonita
Laguna
patacocha
31.16 g/t AuVeta sondoro
22.09 g/t Au
7.38 g/t Au
4.86 g/t Au
9.01 g/t Au3.66 g/t Au
3.35 g/t Au
SECCION L 37800
35. 58 g/t AuBx. Adriana
11.30 g/t Au5.06 g/t Au4.56 g/t Au
19.49 g/t Au
3.17 g/t Au3.57 g/t Au
6.15 g/t Au
8.21 g/t Au7.63 g/t Au
18.18 g/t Au
16.79 g/t Au
10.94 g/t Au
28.60 g/t Au
Caliza Km-Fe
1.26 %/Cu
LEYENDA
BOFEDAL
CUARZO MONZONITA
MARMOL (Ki- Fe)
CALIZA (Ki-Fe)
CUARCITA
FALLA
VETAS
CUARZO DIORITA
EXOSKARN
CUATERNARIOLAGUNASANOMALIA CARGABILIDAD
Manto LuchaANOMALIA 2
ANOMALIA 3
ANOMALIA 4
ANOMALIA 1
ANOMALIA 5
ANOMALIA 6
Veta Cuyana
Cuerpo Sumac
15
Investment In Dynacor
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com
Near Term Catalysts
✓Recent debt free status removes interest from 2018 financials✓Lower costs and higher earnings with greater gold production✓2018 quarterly financials comparing to 2017 start up year ✓Annualized CF per share of CAD $0.33 (P/CF range 10-13X)✓Defining new dividend policy (increases ROI) ✓Renewing Tumipampa drill campaign (drill results)
16
Forward Looking Statements
dynacor.com DNG – TSX | DNGDF - OTC (Q)dynacor.com 17
This presentation contains certain forward-looking statements regarding operational information, futureexploration and development plans and anticipated future production. Words such as, potential”, “building”“inferred”, “if”, “will”, “expect”, “forecast”, “estimate”, “consider”, “may”, “possible” and similar expressions havebeen used to identify these forward-looking statements. These statements are management’s current beliefs andare based on information currently available to management.
Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actualresults to differ materially from the results discussed in the forward-looking statements including, but not limitedto, changes in general economic, political and market conditions and other risk factors. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions,management cannot assure that actual results will be consistent with these forward-looking statements. Investorsshould not place under reliance forward-looking statements.
Forward-looking statements and other information contained herein concerning the metals and mining industryand Dynacor’s general expectations concerning the industry are based on estimates prepared by managementusing data from publicly available industry sources as well as from private sources, industry analysis and onassumptions based on data and knowledge of the this industry which the Company believes to be reasonable.However, this data is inherently imprecise. While Dynacor is not aware of any misstatements regarding anyindustry data presented herein, the industry involves risks and uncertainties and is subject to change based onvarious factors. There is no certainty the projections will be met.
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