Dynacor Group Inc (DNG)

[kiniki]

Check out this NEW video clip coverage on DNG!

http://www.investmentpitch.com/media/763/Dynacor_Gold_Mines_TSX:_DNG_News_Alert/

I have been following Dynacor for 2 yrs and have been consistently
adding it to my holdings over the last year. I will continue to load
up.... I'm long and confident this stock will continue it's positive
performance. Here is why... and in no particular order of importance.

1/ DNG owns a "cash flow machine" the "Acari custom milling plant"
located in Peru . Simply put, they purchase ore from local ma and pa
miners and process it at the Acari mill.

They are ramping up gold sales production to full capacity of 180
tonnes per day in 2011; this should generate between 45-50,000 ounces
of gold sales while maintaining a healthy $200+/oz of cash gross
margins (as compared to last quarter reported $237/oz) for a gold> exploration company.
This works out to 10 - 12 mill gross cash profit in 2011! Which
brings me to point #2.

#2 - share dilution - there isn't any!

That`s right, DNG does NOT dilute share holdings, they have a fully
operational business that earns income and protects the value of your
shares.

I don't know any other jr. exploration company that has cash flow.
Most have to issue more shares to fund their habit. This continually
de values the shares of the initial investors. Over time there ends up
being so many shares that the company is virtually worthless. This is
the Achilles heel of jr exploration companies!

DNG is fully diluted at 39 million shares.( 59% are held by major
institutions and insiders)

#3- Cash flow from the Acari mill is funding a $5.4 million drilling
campaign in 2011 - should see 1st results very soon.

#4-Their 3 properties in Peru. Tumipampa, Casaden and Acari.

Tumipampa their flagship property is located in a "hot spot". Its
located on one of the riches copper/gold belts in Peru and is
surrounded by world class deposits - xstrata's las bambas and southern
copper's los chances. Several publicly traded companies in the area
have been recently bought out or are presently in negotiations.

As NYC Jay Taylor quoted in his last news letter " Dynacor's flagship
Tumipampa property could become a world-class gold-copper deposit." He
says the company's market capitalization could increase by a factor of
10 or even 50 if this potential is realized."

DNG was his #1 stock pick and he also claimed it has the potential to
be a" moon shot". My buying decision does not come from JT, but his
research supports my findings. It also doesn't hurt that JT has a
loyal following which he has built over 20 plus years, which clearly
has an impact and helps get the story out there. He also gave DNG a
glowing report in his last interview on BNN.

Tumipampa has already shown very positive results as they have been
drilling and exploring since 2000 so they know what they are sitting
on (4.5km X 1.5km skarn deposit). The beautiful thing for investors NOW is,
nobody really knows about the company.

I would not be surprised if a big player buys out Tumipampa.

Casaden and Acari have a good story too, but all the emphasis is on
Tumipampa right now.

#5- Management - has stood the test of time. Over the past two years
that I have been following them, they have consistently under promised
and over delivered. Straight up management team out of Montreal. Their
objective is to build a strong solid company and they do NOT have a
p&d mentality.


6-Dynacor made the "top five" of Top Rebounding Canadian Stocks listed
on the Toronto Stock Exchange in 2010 as well as the "top ten" of Best-
Performing Canadian Stocks Year-to-Date list

http://www.nasd100.com/2010/12/top-rebounding-canadian-stocks-dec-26-2010.html

http://www.nasd100.com/2010/12/best-performing-canadian-stocks-year-to-date-dec-28-2010.html

Performance is important because it puts DNG on bigger players
radar.

#7-Market cap is less than other gold exploration companies in the
same region that do not have a dime to speak of in the way of cash
flow to fund their exploration campaigns. Additionally the company's
annualized price to cash flow ratio is quite undervalued when compared
to the gold industry average of 34 times.
http://finance.yahoo.com/news/Using-the-Price-to-Cash-Flow-zacks-4240796903.html?x=0&.v=1.

Dynacor offers the lower risk and value play of a solid cash flowing
business model while at the same time offers the potential to reap theexplosive rewards of an exploration stock via the drill results. The Company is truly in a niche of its own; therefore, market valuation,
in the opinion of many, is not yet justified.