DYNR 10-K & 10-Q changes, risk factors and insider trading
Dynaresource, Inc. · OTC · Metal Mining · CIK 1111741 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Not available: the section could not be located automatically in one of the filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
New heading “Highlights Include:”
New heading “Mineral Reserves”
New heading “Table 1: Mineral Reserves”
New heading “Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.”
New heading “Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.”
New heading “Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.”
New heading “Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76-80% for Au”
New heading “An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, and US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.”
New heading “Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.”
New heading “The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.”
New heading “Totals may not sum due to rounding.”
New heading “Mineral Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.”
New heading “Mineral Resources”
New heading “Table 2: Mineral Resources”
New heading “The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.”
New heading “The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.”
New heading “The Mineral Resource is estimated using S-K 1300.”
New heading “Mined areas as of December 31, 2024, were depleted from the block models.”
New heading “Mineral Resources are exclusive of Mineral Reserves.”
New heading “All numbers are rounded.”
New heading “Economic Analysis”
New heading “Table 3: Key Economic Parameters”
New heading “Sensitivity Analysis”
New heading “Figure 1: After-Tax NPV @ 5% Sensitivity Parameter Values”
New heading “Table 4: After-Tax NPV @5% Sensitivity Graph”
New heading “Note: Assay results referenced in this Annual Report on Form 10-K are based on internal laboratory analyses conducted at the SJG mine plant. They have not been verified by an independent third-party laboratory and do not conform to disclosure standards such as S-K 1300 or NI 43-101.”
New heading “Victoria Target (Tres Amigos Mine Area)”
New heading “Note: The potential quantity and grade of the Victoria target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further work will result in the delineation of a mineral resource.”
New heading “Cautionary Statement: The potential quantity and grade of the Palos Chinos target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the delineation of a mineral resource.”
New heading “OUTLOOK (SJG MINE)”
Largest changes
“The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.”see in full comparison
“Cautionary Statement: The potential quantity and grade of the Palos Chinos target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the delineation of a mineral resource.”see in full comparison
“Note: The potential quantity and grade of the Victoria target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further work will result in the delineation of a mineral resource.”see in full comparison
“Note: Assay results referenced in this Annual Report on Form 10-K are based on internal laboratory analyses conducted at the SJG mine plant. They have not been verified by an independent third-party laboratory and do not conform to disclosure standards such as S-K 1300 or NI 43-101.”see in full comparison
“Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.”see in full comparison
“An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, and US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.”see in full comparison
Full comparison: every changed paragraph (162)
The Company is a minerals investment, management,production, and exploration company, and currently advancing its high-grade SanSJG Jose de Gracia gold projectmine in MéxicoMexico through anits operating subsidiary.subsidiary, DynaMéxico. Activities are focused on exploration, technical evaluation, and project development inaimed support ofat expanding the mineral resource base.
WeThe currentlyCompany conductconducts activitiesoperations in MéxicoMexico through ourits operatingwholly-owned subsidiarysubsidiary, DynaMéxico. WeAs currentlyof ownthe date of this Annual Report on Form 10-K, the Company owns 100% of the outstanding shares of DynaMéxico, andwhich DynaMéxicoin ownsturn 100%claims ofan ownership interest in the mining concessions, equipment, campcamp, and related facilities which comprise the SJG.SJG mine.
In addition to investing inadvancing the continuedSJG advancement and development of its San Juan de Gracia Project,mine, the Company has also focused on strengthening its corporate governance practices, with the objective of meeting the listing requirements of additional stock exchanges in the USUnited States and/or Canada.
Since 2015, the Company has carried out limited site-scale processing and operational activities at the SJG inmine to support of its exploration and evaluation programs. These activities have been aimeddirected attoward enhancing the technical understanding of the deposit, optimizing on-site infrastructure, and supportingadvancing project advancement.development. In 2022, the companyCompany expanded its focus on exploration efforts at the SJG mine with the objective of increasing the project’sits mineral resource base, primarily targeting gold.gold mineralization.
From initial small-scale operations averaging of 100 tons per 24-hour operating day in 2015, throughput has steadily increased, reaching an average of approximately 700 tons per day in 2024.2025. In 2023 alone, daily processing volumes rose by 30%, from 550 tons to 700 tons.tons per day.
In 2026, the Company expects to operate at an average daily throughput of approximately 800 tons per day, representing management’s target operating rate assuming approximately 90% availability. The processing facility has a maximum instantaneous throughput capacity of approximately 900 tons per day.
SJG Mine TRS
As discussed above, on May 20, 2025, the Company filed with the SEC the TRS for the SJG mine in Sinaloa, Mexico. The TRS includes the Company’s initial Mineral Reserve Estimate, which outlines a high-grade Proven and Probable Mineral Reserve of 250,000 gold ozs for the SJG mine. This initial Mineral Reserve Estimate and TRS was prepared by the independent firm P&E Mining Consultants Inc (“P&E”), and process plant review and operations aspects by D.E.N.M. Engineering Ltd.
Highlights Include:
Proven & Probable Mineral Reserves of 1,607 k tonnes at 4.91 g/t gold, totaling 253,000 gold ounces (see Table 1).
Indicated Mineral Resource of 286 k tonnes at 6.74 g/t gold and Inferred Mineral Resource of 97 k tonnes at 4.37 g/t gold. (see Table 2).
Life of Mine of 7-years based on current Mineral Reserves with excellent potential to extend along strike and adjacent to the existing underground mine infrastructure and in the wider SJG mine property.
After-tax net present value (“NPV”) of the SJG mine is estimated at $84.4 million ($110.0 million pre-tax) under baseline scenarios of 5% discount rate and $2,500/oz Au. At a $3,000/oz gold price the after-tax NPV is estimated at $133.3 million ($183.6 million pre-tax).
An Operating Cash Cost of $1,327 (US$/oz Au Eq) and an All-in Sustaining Cost of $1,720 (US$/oz Au Eq).
Significant Upside - Gold price sensitivity with conservative pricing assumption ($2,500 oz Au ~25% below current spot gold price) used in the TRS.
Growth Potential – Mineral Reserves / Mineral Resources defined for only three of the mineralized structures in the SJG mine property, which historically hosted mining on a total of 20 discrete mineralized structures.
Mineral Reserves
The Mineral Reserves and Mineral Resource for the SJG mine are as follows;
Table 1: Mineral Reserves
Notes:
1.
Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.
2.
Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.
3.
Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.
4.
Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76-80% for Au
5.
An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, and US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.
6.
Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.
7.
The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.
8.
Totals may not sum due to rounding.
9.
Mineral Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.
Mineral Resources
Table 2: Mineral Resources
Notes:
1.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2.
The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3.
The Mineral Resource is estimated using S-K 1300.
4.
Mined areas as of December 31, 2024, were depleted from the block models.
5.
Mineral Resources are exclusive of Mineral Reserves.
6.
All numbers are rounded.
Economic Analysis
For the current 7 year mine life exploiting the Tres Amigos, San Pablo and La Mochomera ore bodies the following were the key economic results from the study.
Table 3: Key Economic Parameters
Sensitivity Analysis
The after-tax NPV sensitivities to ±20% changes in gold metal price, gold head grade, gold metallurgical recoveries, operaing expenses (“OPEX”) and capital expenses (“CAPEX”) are presented in Figure 1 and Table 4 below. The after-tax base case NPV is most sensitive to the gold metal price, followed by gold metallurgical recoveries and gold head grades, followed by OPEX, and then CAPEX.
Figure 1: After-Tax NPV @ 5% Sensitivity Parameter Values
Table 4: After-Tax NPV @5% Sensitivity Graph
What changed in the latest 10-Q
Risk Factors
We could not find a separate Risk Factors item in the latest 10-Q. Some companies leave it out of quarterly reports; see the annual 10-K risk factors and the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
New heading “Results for the Six Months (“Year to date” or “YTD”) Ended June 30, 2026 and 2025”
Largest changes
“Results for the Six Months (“Year to date” or “YTD”) Ended June 30, 2026 and 2025”see in full comparison
“During the second quarter of 2026, the Company continued to advance the optimization program at the SJG mine. This program identified the ongoing poor safety and operational performance of one of the two underground mining contractors engaged. The decision was made early in the second quarter to terminate this contractor and work with the remaining underground contractor to safely take over 100% of the Company’s underground development and ore production requirements. …”see in full comparison
“Stock-based compensation expense was $831,834 and $826,664 for the six months ended June 30, 2026 and 2025 respectively. The expense primarily relates to the vesting of restricted stock awards and other equity awards granted in prior periods. The increase in stock based compensation expense in the second quarter of 2026 reflects the normal run off of expense associated with the vesting schedules of previously granted awards, with no significant new equity grants issued during the quarter.”see in full comparison
“Other (income) expense for the six months ended June 30, 2026 and 2025 were $(856,478), and $1,450,199, respectively. Included in 2026 was interest expense of $800,793, mark-to-market gain on the derivative liability of $892,173, currency translation gain of $1,416,022, and other expense of $650,924. Included in 2025 was interest expense of $775,677, mark-to-market loss on the derivative liability of $267,649, currency translation gain of $162,866 and other income of $569,739.”see in full comparison
“Revenue for the six months ended June 30, 2026 and 2025 was $29,484,231 and $29,582,687, respectively. For the six months ended June 30, 2026, the gold sales reduced to 7,815 ounces compared to 11,321 ounces for the same period of 2025. This reduction was offset by the higher realized gold prices per ounce of gold sold of $3,773 in YTD 2026 compared to $2,613 in YTD 2025, resulting in the revenue balance in line for the comparable period.”see in full comparison
“Accretion expense for the six months ended June 30, 2026 and 2025 was $81,722 and $9,972, respectively. Mainly connected to the Company’s asset retirement obligation, related to estimated costs to decommission the milling plant and tailings pond at the estimated life of the mines in operation at the establishment of the ARO in 2025 as a result of the expansion of the milling operation.”see in full comparison
Full comparison: every changed paragraph (44)
From initial small-scale operations averaging 100 tons per 24-hour operating day in 2015, throughput has steadily increased, reaching an average of approximately 710 tons per day in 2025. For 2026, the Companies objective is to increase average daily throughput to between 750 to 800 tons per day with current installed optimized processing capacity of 3 ball mills only. During the firstsecond Quarterquarter 2026 average process plant throughput was a pleasing 767754 tons per day within targeted range.
Quarterly Results for the Three and Six Months Ended MarchJune 31,30, 2026 and 2025:
The decrease in the gold feed grade at the processing facility during the firstsecond quarter of 2026 resulted from a planned reduction in the mining of certain high-grade zones indue accordance withto the minecompany plan,terminating one underground mining contractor for poor safety and production performance, as well as higher than expected dilution encountered in the processed material. Increased throughput at the SJG process plant also contributed to a greater volume of lower-grade ore being treated.processed.
2026 FIRSTSECOND QUARTER HIGHLIGHTS
During the second quarter of 2026, the Company continued to advance the optimization program at the SJG mine. This program identified the ongoing poor safety and operational performance of one of the two underground mining contractors engaged. The decision was made early in the second quarter to terminate this contractor and work with the remaining underground contractor to safely take over 100% of the Company’s underground development and ore production requirements. It is anticipated that this change over will take 3 to 6 months to complete and an immediate positive impact has been a significant decrease in total project manning due to the elimination of duplicate positions, due to having two overlapping underground mining contractors.
During the first quarter of 2026, the Company continued to advance the optimization program at the SJG mine. This program The plan of operation for 2026 includes the continued enhancement and is focused on increasing process plant throughput and recoveries, improving maintenance and equipment utilization, and ultimately enhancing operational efficiencies and profit margins at the SJG mine. Operational results for Q1Q2 2026 showed marked improvement performance across several critical operational metrics (particularly in mill ore processing tonnes per day and unit costs) due to the ongoing optimization program.
The capital works program to add a primary gravity gold circuit to the processing plant, involved the installation of three new Falcon gravity concentrators installed downstream of the ball mills to recover a significant portion of the free gold present in the San Pablo, San Pablo Sur, Tres Amigos and La Mochomera deposits. The three new Falcon concentrator units are performing as design recovering approximately 30% of the gold in a specific gravity gold concentrate (average ~300 g/t Au) which achieves a higher payability factor. The target for 2026 is for the process plant to achieve a processing rate between 750 to 800 tpd.tpd and for the first 6 months of 2026 an average of 758 tonnes per day has been achieved.
Process plant reliability during the quarter was on target at 91%, which included several planned major maintenance shutdowns. Milled ore for Q1Q2 2026 was 69,81667,347 tons (approximately 767740 tons per day) within the target objective for 2026 of between 750 to 800 tons per day.. With the current high ball mill availability, the Company is evaluating cost-effective strategies to utilize additional processing capacity of approximately 50 wet tons per day. Gold metal recoveries for the quarter averaged 74%,69.71%, similarhigher tothan the 74%74.6% gold recovery achieved in Q1Q2 2025. Higher gravity gold recovery in the quarter was offset by lower head grades.
Mine development for Q1Q2 2026 was onbelow budget due to termination of one of the mining contractors during the quarter, with 3,2191,804 meters of development completed, compared to 3,1723,804 meters in Q4Q2 2025. The completion of new development drifts enabled the Company to maintain more than 20 stopes in production by the end of the quarter. This additional mining flexibility is expected to positively impact ore tonnage and grades in the second half of 2026. The Company has also completed a capital works program to enhance mine ventilation across all three mines which included connecting the Mochomera and San Pablo Sur mines which has had an immediate impact on the working environment. Improved ventilation time has resulted in an improvement in working conditions and faster re-entry times following blasting activities. Planning for a central Raise Bore ventilation shaft was cancelled due to unfavorable geotechnical conditions and this planned ventilation location was moved to Palo Chinos. This capital works program will involve approximately 100 metres of horizontal decline development andwith 30 meters of vertical development and, in addition to helping ventilationventilation, will bring mine development closer to the Purisima historical works. Numerous exploration targets have been identified in this southern area of the mineral field. This ventilation development will also be a platform for underground exploration.
To date approximately 45,00065,000 tonnes of high-grade ore have been extracted from this high-grade structure. In addition, a new ore drive was completed on the upper levels of the Tres Amigos North Zone which is an area well known for free gold occurrences, providing access to a new high-grade ore face. Mining from this face is expected to continue throughout 2026. This new access will also enable future diamond drilling to test the north and south extensions of the deposit, with the goal of increasing inventory. In Q2 2026 approximately 58% of the process plant feed was sourced from the Tres Amigos area.
This new access will also enable future diamond drilling to test the north and south extensions of the deposit, with the goal of increasing inventory. In Q1, 2026 approximately 37% of the process plant feed was sourced from the Tres Amigos area.
Throughout Q1Q2 2026, the Company continued mining multiple faces at the San Pablo and San Pablo Sur deposit while advancing development toward the deeper southern extensions of these deposits. San Pablo and San Pablo Sur are expected to be minor sources of gold production through the second half of 2026, with approximately 15%5 to 10% of the process plant feed sourced from these workings. There is the additional upside potential in these deposits and what is particularly promising is the South Extension at the 500 level, which could yield high-grade ("Bonanza”-style) gold mineralization in the short to mid-term.
The La Mochomera vein is also expected to be a significant source of gold production in 2026, and in Q1Q2 2026 the La Mochomera mine development provided approximately 48%38% of the process plant ore feed, with especially promising high-grade potential at depth. During 2025, development activities intersected a previously unrecognized high-grade mineralized structure, now designated as the "532 Vein” and mine extraction from this vein in Q1Q2 2026 added to the Mochomera production profile.
With the development progress achieved in Q4 2025 and the increase in mining faces now available to the Company, management remains confident in the ongoing progress and long-term performance of the SJG mine. The Company’s focus for 2026 is to improve production and grade through the implementation of additional and ongoing operational enhancements and development work.
While the Company made significant headway in 2025, optimization efforts will continue to focus on improving gold ore grades to the mill, throughput rates, and recoveries. San Pablo Sur, San Pablo, La Mochomera, Palos Chinos and the Tres Amigos ore bodies are expected to remain the main contributors to production in the year ahead. Further development in these areas will also be a key focus to access additional high-grade zones and additional mining faces. The Company's full-year 2026 production outlook is uncertain as it will depend on the successful transition and ramp-up of its new mining contractor, together with continued operational improvements throughout the remainder of the year.
Results for the Three Months Ended MarchJune 31,30, 2026 and 2025
REVENUE: Revenue for the three months ended MarchJune 31,30, 2026 and 2025 was $18,047,699$11,436,532 and $13,696,401,$15,886,286, respectively. The increasedecrease was primarily due to a decrease in the average grade in Q2 2026 of 2.45 g/t compared to 3.63 in Q2 2025, partially offset by a higher realized gold prices.prices per ounce of gold sold of $3,480 in Q2 2026 compared to $2,781 in Q2 2025.
OPERATING COSTS: Operating costs for the three months ended MarchJune 31,30, 2026 and 2025 were $10,681,774$9,952,106 and $10,171,638,$10,490,801, respectively, primarily due to higherlower tonnage mined and processed.processed of 65,656 tonnes in Q2 2026 compared to 74,002 tonnes in Q2 2025.
GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses for the three months ended MarchJune 31,30, 2026 and 2025 were $1,373,528$1,448,781 and $1,250,244,$1,794,294, respectively. These represent corporate overhead not directly attributable to site operations, including management, accounting, and legal expenses. IncreasesThe decrease to general and administrative expenses in Q1Q2 2026 primarily relate to an increase in consulting and professional fees relateddue to thecost Company’scutting legal matters.measures.
STOCK-BASED COMPENSATION EXPENSE: Stock-based compensation expense was $183,179$648,655 and $251,707$574,957 for the three months ended MarchJune 31,30, 2026 and 2025 respectively. The expense primarily relates to the vesting of restricted stock awards and other equity awards granted in prior periods. The decreaseincrease in stock based compensation expense in the firstsecond quarter of 2026 reflects the normal run off of expense associated with the vesting schedules of previously granted awards, with no significant new equity grants issued during the quarter.
DEPRECIATION AND DEPLETION: Depreciation and depletion expense for the three months ended MarchJune 31,30, 2026 and 2025 were $528,720$469,304 and $162,566,$245,971, respectively. With the Company’s transition from Exploration Stage to Production Stage under S-K 1300, in 2025, the Company began capitalizing mine development costs and commenced depreciation and depletion charges on a units-of- production basis.
ACCRETION EXPENSE. Accretion expense for the three months ended MarchJune 31,30, 2026 and 2025 was $34,640$47,082 and $4,986, respectively. Mainly connected to the Company’s asset retirement obligation, related to estimated costs to decommission the milling plant and tailings pond at the estimated life of the mines in operation at the establishment of the ARO in 2025 as a result of the expansion of the milling operation.
OTHEROther EXPENSE: Other(income) expense for the three months ended MarchJune 31,30, 2026 and 2025 were $1,297,412$(2,153,890) and $309,476,$1,140,723, respectively. Included in 2026 was interest expense of $398,513,$648,655, mark-to-market gain on the derivative liability of $71,373,$820,800, currency translation lossgain of $124,751,$1,540,773 and other expenseincome of $845,521.$194,597. Included in 2025 was interest expense of $376,834,$398,843, mark-to-market gainloss on the derivative liability of $71,373,$339,022, currency translation lossgain of $15,155$178,021 and other incomeexpense of $11,140.$580,879.
OTHERTotal COMPREHENSIVE INCOME (LOSS): Comprehensivecomprehensive income (loss) includes the Company’s net income (loss) plus the unrealized foreign currency translation (loss) gain for the period. The Company’s othertotal comprehensive income (loss) for the three months ended MarchJune 31,30, 2026 and 2025 were $620,139$347,712 and ($37,992),$1,509,636, respectively.
Results for the Six Months (“Year to date” or “YTD”) Ended June 30, 2026 and 2025
Revenue for the six months ended June 30, 2026 and 2025 was $29,484,231 and $29,582,687, respectively. For the six months ended June 30, 2026, the gold sales reduced to 7,815 ounces compared to 11,321 ounces for the same period of 2025. This reduction was offset by the higher realized gold prices per ounce of gold sold of $3,773 in YTD 2026 compared to $2,613 in YTD 2025, resulting in the revenue balance in line for the comparable period.
Operating costs for the six months ended June 30, 2026 and 2025 were $20,633,880 and $20,662,439, respectively, primarily due to similar tonnage mined and processed of 140,894 tonnes in YTD 2026 compared to 138,034 tonnes in YTD 2025.
General and administrative expenses for the six months ended June 30, 2026 and 2025 were $2,822,309 and $3,044,538, respectively. These represent corporate overhead not directly attributable to site operations, including management, accounting, and legal expenses. The decrease to general and administrative expenses in Q2 2026 primarily relate to due to cost cutting measures.
Stock-based compensation expense was $831,834 and $826,664 for the six months ended June 30, 2026 and 2025 respectively. The expense primarily relates to the vesting of restricted stock awards and other equity awards granted in prior periods. The increase in stock based compensation expense in the second quarter of 2026 reflects the normal run off of expense associated with the vesting schedules of previously granted awards, with no significant new equity grants issued during the quarter.
Depreciation and depletion expense for the six months ended June 30, 2026 and 2025 were $998,024 and $408,537, respectively. With the Company’s transition from Exploration Stage to Production Stage under S-K 1300, in 2025, the Company began capitalizing mine development costs and commenced depreciation and depletion charges on a units-of- production basis.
Accretion expense for the six months ended June 30, 2026 and 2025 was $81,722 and $9,972, respectively. Mainly connected to the Company’s asset retirement obligation, related to estimated costs to decommission the milling plant and tailings pond at the estimated life of the mines in operation at the establishment of the ARO in 2025 as a result of the expansion of the milling operation.
Other (income) expense for the six months ended June 30, 2026 and 2025 were $(856,478), and $1,450,199, respectively. Included in 2026 was interest expense of $800,793, mark-to-market gain on the derivative liability of $892,173, currency translation gain of $1,416,022, and other expense of $650,924. Included in 2025 was interest expense of $775,677, mark-to-market loss on the derivative liability of $267,649, currency translation gain of $162,866 and other income of $569,739.
Total comprehensive income includes the Company’s net income (loss) plus the unrealized foreign currency translation gain for the period. The Company’s total comprehensive income for the six months ended June 30, 2026 and 2025 were $3,501,996 and $2,073,020, respectively.
As of MarchJune 31,30, 2026, the Company had negative working capital of $33,380,539$38,360,011 comprised of current assets of $8,182,362$6,563,491 and current liabilities of $41,562,901.$44,923,502. This represented an increase of $1,644,831$6,624,303 from the Company’s negative working capital of $31,735,708 as of December 31, 2025, primarily due a higher accounts payable and accrued liabilities and lower cash position as of MarchJune 31,30, 2026.
Net cash provided by operating activities for the threesix months ended MarchJune 31,30, 2026 was $2,038,148$3,681,135 compared to $1,825,105$2,961,710 during the threesix months ended MarchJune 31,30, 2025. The improvement in the cash flow from operations was primarily attributable to the Company’s income generated in the threesix months of 2026, driven by increased revenue.net income.
Cash used in investing activities for the threesix months ended MarchJune 31,30, 2026 totaled $2,792,467$4,522,920 compared to $2,657,884$5,921,315 during the threesix months ended MarchJune 31,30, 2025. Mainly due a higher capitalization of mine development costs in Q1 2026, in comparison with Q1 2025.
Cash (used in) provided by financing activities for the threesix months ended MarchJune 31,30, 2026 and 2025 was $907,512$(1,588,090) and $1,029,108,$133,756, respectively. Mainly as result of payment of credit line combined with the operating leasing payments in the related period.
Through MarchJune 31,30, 2026, the Company’s available liquidity and operations have been financed primarily through its operations and the revenue generated from the sale of product.
Although the Company has incurred positive net income and net cash inflows from operating activities for the threesix months ended MarchJune 31,30, 2026, there were many expenditures associated with investing activities which were made that were not expended for the production of revenue during the current period, such as underground development and mine expansion costs. If these expenses had not been made, the Company’s net decrease in cash would have been minimized. Future capital requirements will depend on many factors, including the Company’s rate of mining, milling, and exploration activities and growth. To the extent that existing capital and revenue growth are not sufficient to fund future activities, the Company may need to raise capital through additional equity or debt financings. Additional funds may not be available on terms favorable to the Company or at all. Failure to raise additional capital, if needed, could have a material adverse effect on the Company’s financial position, results of operations and cash flows.
As of MarchJune 31,30, 2026, the Company had no off-balance sheet arrangements that would have a material adverse effect on its financial condition, results of operations, or liquidity.
The Company plans to commence its exploration drilling program from underground in the laterlatter half of 2026 with firm quotes achieve to undertake this work received. Management and geologists will make decisions based on drill results, corporate strategies, market conditions, surface mapping, sampling, and target generation. The Company has contracted with a "Qualified Person,” within the meaning of S-K 1300, to interpret the collected data and compile a formal Mineral Resource Estimate update which was filed on May 20, 2025.
Primary capital expenditures in 2026 will be directed toward increasing underground infrastructure development and enhancing processing capacity at the SJG mine. Average underground capitalized development in Q1Q2 2026 was 383602 meters per month, compared to 673 meters per month in Q1Q2 2025. Processing systems have been upgraded through the installation of new Falcon Gravity gold concentrators and the repurposing of the original grinding mill. Replacement of the Primary Crusher with a new higher capacity machine which was purchased in 2025 is currently scheduled for installation for early Q3 2026. Additional equipment acquisitions and infrastructure improvements have also enhanced site access and operational capacitycapacity, and the company is targeting an average daily production rate of between 750 to 800 tpd.
The Company is implementing a major Ventilation Upgrade in the La Mochomera and San Pablo mines with the installation of approximately 100 metres of mine development and a 30 metre raise ventilation shaft. Works for this shaft are scheduled to finish in the second half of 2026 with 60 metres of the mine development completed during Q2 2026.
The Company intends to prioritize exploration of high-grade underground targets that can be readily incorporated into the mine plan, as well continue the regional program to better understand the broader potential of the SJG land package. Additionally, planning for deeper and lateral drilling between the San Pablo and Tres Amigos veins has highlighted the potential to extend high-grade underground resources at the SJG mine, especially in areas previously considered discontinuous due to faulting. The Company has identified opportunities to develop San Pablo, San Pablo Sur, La Mochomera, and Tres Amigos exploration potential. At the La Mochomera deposit, the Company plans to explore southward toward the historic Palos Chinos and Purisima mines, which operated over 100 years ago as high-grade producers. Of note is the Palos Chinos exploration target, located within 40 meters of the existing La Mochomera mine infrastructure. A 4,000 metre drill program has been designed for these targets which is planned to commence in the laterlatter half of 2026.
DYNR insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 2 Form 4 filings (2 insiders, 1 trade date, 3,913,889 shares, about $0) and open-market sales in 0 filings. Net open-market shares: 3,913,889 (purchases minus sales); net value about $0.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-01 | Rose Matthew K |
Open-market purchase | 1,913,889 | — | — |
| 2026-09-01 | Nichol Gareth |
Open-market purchase | 2,000,000 | — | — |
Well-known investors holding DYNR (13F)
None of the 59 investors we track reported a position in their latest 13F.