Message from the President,
Dear Shareholders,
In 2020 we experienced one of the most severe global health and economic crises in recent centuries. The rapid expansion of Covid-19 in Peru led us to adopt unprecedented restrictive actions, as the mining and industrial sectors were among the most affected by the pandemic.
After discontinuing all operations for three months (from March 16th to June 5th), Dynacor successfully resumed mineral purchasing and processing activities, generating profits immediately.
We also managed to protect our financial situation to ensure a successful return to operations. We quickly got back all our suppliers, which allowed us to close 2020 with financial results better than expected in these circumstances.
Considering the unique situation caused by the pandemic, this is a significant achievement accomplished with the support of all our employees.
We consider that employees are the basis of the company’s growth, so we have managed to keep 100% of the staff with all their work benefits. To safeguard employees and suppliers’ health and to provide a safe
environment to carry out our activities, we also established a strict Covid-19 sanitary protocol, which allowed us to avoid a major virus outbreak in operations.
While the evolution of the Covid-19 pandemic continues to pose global challenges, which we hope will diminish with the start of vaccination, Dynacor is off to a strong start in 2021. We will execute this year on
the projects we could not develop in 2020.
We plan a year of significant growth with the Expansion Project, increasing our Chala mill processing capacity. We have started expansion work to scale our nameplate capacity from a 300 t/d to 430 t/d, an increase of 43%.
Our initial expectation was to see production increase in the last quarter of this year. However, due to the significant increase in mineral purchases, we are fast-tracking the Expansion Project completion schedule to the end of the second quarter. We are also working on several measures to improve the mill efficiency and lower operating costs.
We look forward to a successful 2021, with a projected significant sales increase compared to 2020 We are also making progress in creating with our client PX-Precinox traceability software for the gold
produced. Regarding the PX-Impact Program, we have created the International Fund to Help Artisanal Miners (Fidamar), a non-profit organization that contributes to the well-being and the sustainable development of artisanal small-scale miners.
One of the first contributions of Fidamar has been the donation of an ambulance to the Local Community Civil Association of Health Administration of Chala (CLAS Chala-Arequipa) to improve emergency care and timely safeguard the health of the area inhabitants.
To continue growing steadily and leading the gold ore processing market, we have established a management team dedicated to Sustainable Development. Environmental and social sustainability is integral to our business strategy.

Dynacor continues to produce stable financial and operating results which allow us to offer cash returns to our shareholders in the form of monthly dividends, and to have a stock buyback program. We believe that
it is essential to give value back to our shareholders.
I appreciate the commitment of the Dynacor employees and the Board of Directors in their guidance on environmental, social, and corporate governance, and I highly value our shareholders, their trust in the
company which has allowed us to position ourselves as the world prominent environmentally and socially
responsible gold producer for the ASM industry.

(S) Jean Martineau
President and CEO, Dynacor Gold Mines inc.

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https://dynacor.com/management-discussion-and-analysis-december-31-2020/