Q: How was Dynacor’s Q3? What do you think is fair value for the stock or expectation over the next 12 months thanks.
5i Research Answer:
Q3 sales were $76.2M, and a record, compared with $63.4M last year. Net income was $5.9M or 22c Canadian vs $2.5M or 9c. Volumes rose 7.2% but gold production was lower due to lower grades. Cash operating margin was $365/ounce, up from $235/ounce. Cash flow rose 69.2%. Cash was $42M and DNG bought back 244,700 shares. Results were solid and the stock remains cheap at 8X earnings with a 2.5% dividend. With good execution, buybacks, and a very strong balance sheet, we would expect to see an $8 target, over time, assuming no operational/management issues.