DynaResource, Inc.

What they do

The company acquires, develops and operates precious metal properties and produces and sells precious metals. Its sole producing asset is the San Jose de Gracia mine, which processes ore into gold-silver concentrate that is crushed, ground and upgraded to remove waste and non-precious metals. The concentrate is transported and sold to a third party for further processing, with pricing based on assayed gold content and the London PM gold fix, subject to a payability discount and final settlement adjustments. As of December 31, 2025 DynaResource had one wholly owned U.S. subsidiary and four wholly owned Mexican subsidiaries.

Revenue drivers

• Gold contained in concentrate from the SJG mine — During 2025 the company reported delivery and sale of 20,848 ounces of gold contained in concentrate, all originating from the San Jose de Gracia mine; this is the company's entire reported revenue source.
• Silver produced alongside gold — The SJG product is a gold-silver concentrate and the company states it is substantially dependent on both gold and silver prices, though the 10-K excerpt quantifies only gold ounces sold.
• Gold price realizations and payability — Concentrate sells at a discount (payability adjustment) to the prevailing spot price based on the London PM gold fix, so realized revenue per ounce depends on spot pricing and contract terms.
• Commodity hedging arrangements under the Offtake Agreement — The company periodically enters collars and fixed-price hedges on anticipated production; these shift realized pricing rather than add volume, and produced approximately negative $1.1 million in fiscal 2025 and negative $2.6 million in fiscal 2025 from two separate arrangements.

Recent performance

Annual revenue rose from $35.6M in 2023 to $46.5M in 2024 and $58.5M in 2025, while net income went from a $14.5M loss in 2023 to an $8.5M loss in 2024 and $3.8M of income in 2025. Operating cash flow was negative $17.7M in 2023 and negative $8.0M in 2024 before turning positive at $5.8M in 2025. Quarterly revenue was $14.1M in Q3 2025, $14.8M in Q4 2025, $18.0M in Q1 2026 and $11.4M in Q2 2026. At June 30, 2026 the company reported total assets of $61.7M, total liabilities of $51.6M and shareholder equity of $4.2M, with $1,767,144 of cash on the June 30, 2026 balance sheet versus $4,171,891 at December 31, 2025.

Strategy

Management states the company aims to develop its exploration assets using operational cash flow from gold concentrate production. The 10-K describes a proposed 2026 exploration program for the San Jose de Gracia mine as a stated plan. The company uses commodity pricing arrangements under its Gold Concentrate Purchase Agreement to manage gold and silver price exposure, including a September 2024 fixed-price hedge on 9,000 ounces at $2,495 per ounce and an August 2025 collar on 6,000 ounces with a $3,200 put strike and $3,500 call strike. Two further collar arrangements were entered in November and December 2025 covering anticipated 2026 production. No specific 2026 capital expenditure or production targets were provided in the excerpted material.

Risks

• Dependence on gold and silver prices — All revenues come from selling gold and silver, and management states a period of sustained lower prices would materially and adversely affect results and cash flows.
• Single-asset concentration — The company has one producing property, the SJG mine in Sinaloa, Mexico, so any interruption there would affect essentially all of its revenue.
• Liquidity and thin equity — At June 30, 2026 cash was $1,767,144 against total liabilities of $51.6M and shareholder equity of $4.2M, and management identifies the possibility of insufficient capital to operate or further explore the SJG mine.
• Foreign operations and regulation in Mexico — The company cites risks inherent in owning and operating mining properties in foreign countries, including environmental and governmental regulation and potential government orders suspending operations.

Outlook

The 10-K describes management's plans to develop exploration assets from operating cash flow at the SJG mine and a proposed 2026 exploration program there. The company has hedged a portion of anticipated 2026 gold production with collar arrangements entered in November and December 2025. Management identifies risks including commodity price volatility, potential inability to retain qualified mill staff, shipment delays and insufficient capital. No numeric production, revenue or cost guidance is provided in the excerpted filings.