10 Best Fundamentally Strong Penny Stocks to Invest In

4) Dynacor Group Inc. (OTC:DNGDF)

Stock Price as of 4 November: $4.20

3-Year Revenue Growth: ~21.7%

3-Year Net Income Growth: ~30.6%

Average Upside Potential: ~29.5%

Number of Hedge Fund Holders: N/A

Dynacor Group Inc. (OTC:DNGDF) is a dividend-paying industrial gold ore processor, which is headquartered in Montreal, Canada. It is engaged in gold production via the processing of ore purchased from the ASM (artisanal and small-scale mining) industry.

Wall Street analysts believe that organic and acquisitive growth strategy should help Dynacor Group Inc. (OTC:DNGDF) develop its unique business model in other jurisdictions. Since scale does matter in the gold mining industry so that unit costs can be managed, analysts believe that the company remains well-positioned in this regard given its proven history of profit and growth with over 13 consecutive years of profit and 5 plant capacity increases from 300 tpd to 500 tpd since 2018.

The company’s strategic focus revolves around expanding its production capabilities and diversifying its asset portfolio. Dynacor Group Inc. (OTC:DNGDF) plans to make investments of up to US$13 million in capital expenditure. This investment is expected to be used at its Veta Dorada plant for new equipment to improve efficiency, increase tailing pond capacity, and develop new projects in other jurisdictions.

For FY 2024, Dynacor Group Inc. (OTC:DNGDF) expects sales in the range of US$ 265 million – $285 million, reflecting an increase of 6% – 14% on the YoY basis. It expects net income in the range of US$12 million – $15 million. Moving forward, the economies of scale are expected to aid Dynacor Group Inc. (OTC:DNGDF)’s operating margins.

Wall Street remains optimistic about the company’s 2030 targets, which include sales of US$1 billion and 4 new processing plants (up to US$70 million investment in Latin America and Africa). In Q2 2024, Dynacor Group Inc. (OTC:DNGDF) saw total sales of $67.4 million as compared to $64.5 million in Q2 2023. The $2.9 million increase was driven by higher average gold price partially offset by lower quantities of gold ounces sold because of lower grades of ore processed.

Wall Street analysts provided an average price target of $5.44.