🧾 What This Document Is

This is an 8-K filing, which is a current report companies use to announce major news to investors. This specific filing contains the company's official press release detailing their financial and operational results for the fourth quarter and full year of 2025. Think of it as a "report card" for the year, showing how their gold mine performed.

🏢 What The Company Does

👉 In simple terms, DynaResource is a small gold mining company. They operate and are actively developing the San Jose de Gracia (SJG) mine in Mexico. They dig gold ore out of the ground, process it at their mill, and sell the resulting gold concentrate. They trade on the OTCQX market under the ticker symbol DYNR.

💰 Financial Highlights

Here’s the money story for 2025. The big takeaway is a dramatic turnaround from loss to profit.

• Revenue: Increased 26% to $58.5 million in 2025, up from $46.5 million in 2024.
• Net Income: They swung to a profit! Full-year 2025 net income was $3.8 million, compared to a net loss of $8.5 million in 2024.
• Adjusted EBITDA: This is a key cash flow metric. It jumped to $12.1 million for the year, a huge improvement from negative $1.3 million in 2024.
• Q4 Momentum: The fourth quarter was strong, with $1.4 million in net income and $4.7 million in Adjusted EBITDA. This was the fifth straight quarter of positive Adjusted EBITDA.

👉 Why it matters: This isn't just about more sales. The company significantly improved its costs and efficiency, turning top-line revenue growth into real bottom-line profit.

🚀 Key Moves & Operational Progress

The financial results were driven by smart work at the mine. Here’s what they accomplished:

• Mining More, But Lower Grade: They mined 287,878 tons of ore in 2025 (up from 233,782 in 2024). However, the average gold grade (richness) of the ore was 3.46 grams per ton, down from 4.07 g/t in 2024. They are processing more rock to get the gold.
• New Tech Boosted Recovery: They installed new Falcon gravity concentrators in the plant. This helped increase the gold recovery rate in Q4 to 75.69%, up from 73% in Q3. This means they're extracting more gold from the same amount of ore.
• Discovery & Development: The mining team found two new high-grade gold veins (Victoria and 532 Vein). They also significantly increased underground development to 1,057 meters per month in Q4 (from 383 m/month a year earlier), giving them access to more mining areas ("stopes").

👉 Why it matters: They're not just digging the same holes. They're actively optimizing the mine, finding new ore sources, and using technology to get more gold out of what they mine. This operational savvy is what drove the profits.

📦 Financial Position & Cash Flow

The company's cash flow picture improved dramatically, which is crucial for a mining operation.

• Operating Cash Flow: For the full year, cash generated from operations was $5.8 million, compared to cash used of $8.0 million in 2024.
• Working Capital: They ended the year with positive changes in working capital, contributing to the healthier cash flow.
• Investment in the Future: They are spending on "capital works" – like the new Falcon units and mine development – to fuel future growth.

👉 Why it matters: Positive cash flow means the mine's daily operations are now funding the company's bills and some of its growth projects, reducing reliance on outside financing.

🔮 What's Next: The 2026 Outlook

Management is focused on continuing the momentum into 2026.

• Production Goal: They aim to increase the mill's processing rate to 750-800 tons per day (it averaged 718 tpd in 2025).
• Key Mines: San Pablo Sur, La Mochomera, and Tres Amigos will be the main sources of ore, with Palos Chinos also contributing high-grade material.
• Infrastructure: Planning is underway for a fourth stage of their tailings dam and a potential third storage facility to handle long-term waste.
• Exploration: Development will continue to test extensions of known veins and explore new targets, especially in the southern part of the property.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Demonstrated ability to turn operational improvements into strong financial results.
• Active discovery of new high-grade veins extends the mine's life and potential.
• New gravity recovery circuit is working, improving efficiency.
• Positive cash flow provides more financial flexibility.

⚠️ Risks:

• Gold Price Dependent: As a gold miner, their profits are heavily tied to the market price of gold.
• Grade Decline: The average ore grade is lower than in previous years, meaning they must process more tons to maintain production.
• Execution Risk: Hitting their higher throughput target (750-800 tpd) in 2026 requires continued smooth operations.
• Junior Miner Scale: As a "junior" producer, they have more limited financial resources than major mining companies.

🧠 The Analogy

Think of DynaResource like a classic car restoration project. In 2024, they had a solid but underperforming engine (the mine). In 2025, instead of just driving it harder, they meticulously tuned it up—improving the fuel system (recovery tech), finding more horsepower in new modifications (new veins), and optimizing how it runs (operational efficiency). The result? The car now runs stronger, more reliably, and is actually making money for its owner, not just costing them.

📇 Key Contacts & People

• Rohan Hazelton, President & CEO
• Katherine Pryde, Investor Relations Manager
  • Phone: +1 972-869-9400
  • Email: [email protected]
• Company Website: www.dynaresource.com

🧩 Final Takeaway

DynaResource successfully transformed its San Jose de Gracia mine in 2025 from a loss-making operation into a profitable, cash-generating business through focused cost management, operational optimization, and new discoveries. The key for investors now is whether they can scale these improvements in 2026.