READ TIME: 14 MINUTES
—
DynaResource (OTCQX: DYNR) is a small, cash-flow-positive gold producer at the San José de Gracia project in Sinaloa, Mexico. In a detailed CEO BBQ, new CEO Rohan Hazelton and COO Dave Laing explained how they intend to lift annual output toward 30 000 oz, refinance short-term debt, and run the first serious district-scale drill programme in decades, all while preparing for a major-exchange listing.
TL;DR
- 1. DynaResource is generating cash and net income, with plans to scale to 50,000 oz/year and over 1 Moz in resources.
- 2. A large $20M VAT receivable is stuck with the Mexican government, “If it were recovered, we wouldn’t need any debt.”
- 3. 15,000-meter drill program underway. The company is drilling high-grade underground targets with results expected in late Q3.
- 4. Uplisting planned for Q4 2025. A major exchange listing is in progress to boost visibility and liquidity.
- 5. Mexico seen as stable and supportive Despite headlines, operations in Sinaloa run smoothly with strong community and workforce backing.
Is Rohan the right CEO of DynaResource?
Hazelton highlighted his experience, saying, “I’ve spent almost 25 years in mining … much of that in Mexico.”
His background includes senior roles at major mining companies, and he stressed his operational and financial expertise, which he believes positions him well to lead DynaResource forward.
How is running a small producer different?
Hazelton noted that smaller producers must prioritize cash flow management and efficiency.
He said, “You’ve got to do more with less and be extremely disciplined,” explaining how limited resources demand tight operational control.
Does DynaResource have the right technical team?
Laing described the team as highly experienced, particularly in underground mining.
He stated, “We’ve got a very strong technical team on the ground in Mexico,” and emphasized the importance of having skilled personnel to optimize production and improve mine planning.
Do executives reside in-country?
Hazelton clarified that while he and Laing are not based full-time in Mexico, they travel frequently and maintain close contact with the site.
He said, “We are on site regularly,” ensuring oversight and engagement with local operations.
How much stock do insiders own?
Insiders own 14% on a fully diluted basis.
A small group, about 15 individuals, owns 70% of the company, and two of them account for 50% ownership.
The 5.3 million preferred shares are held by a handful of long-time backers, largely friends and family of the original founders. These preferred shares were created to incentivize continued support during key financing phases. The largest shareholder is a Dallas-based family office, not current management.
Current management owns very little equity directly; most are new hires in the past 3 to 9 months and are receiving compensation through RSUs and options.
How will insiders be aligned with shareholders?
The CEO emphasized that alignment between insiders and shareholders will primarily come through performance-based equity incentives.
While not all operational team members have the capital to buy shares outright, they are being granted equity exposure through mechanisms like RSUs, performance share units (with specific performance triggers), and options tied to share price appreciation. This structure is intended to ensure long-term alignment.
Regarding his own position, the CEO confirmed he purchased shares in the most recent financing (October) and intends to continue acquiring more, either through market purchases or future financings. However, he noted that management often faces blackout periods due to material nonpublic information, such as the recent technical report, which limits their ability to trade.
Who owns the preferred shares?
The preferred shares, accruing a 4% annual dividend, are currently accruing on a non-cash basis. Holders can choose to be paid in cash or shares.
The CEO confirmed ongoing discussions with the holders about potentially settling the accrued dividends in a way that balances shareholder interests and treasury considerations.
Who owns the warrants?
The only existing warrants are believed to be 1-cent warrants issued alongside one of the preferred share series, likely the Series C. These were granted as part of a financing effort to raise around $5 million, which was crucial at the time for advancing an early deposit, initiating mining, and commissioning the mill.
How is executive compensation determined?
Executive compensation is structured around both short-term and long-term performance incentives. In the short term, key performance indicators (KPIs) for this year include:
- – Completion of a technical report (critical for engaging institutional investors and initiating an uplisting process)
- – Meeting operational goals such as production targets and sustaining costs (targeted between $1,850–$2,050)
- – Exploration milestones (budget and meters drilled)
- – Advancing toward an uplisting to a major stock exchange by year-end
Long-term incentives are designed around broader success metrics, including sustained operational or exploration achievements over multiple years, and overall company performance.
Why not take the company private already?
Although the company is closely held and operates much like a private entity, there are no immediate plans to take it private.
The CEO explained that the largest shareholders do not consider this a core holding, making them less inclined to lead a privatization effort. Taking the company private would demand a substantial amount of capital, even at a potentially undervalued level, and shareholders would likely want to see more progress on resource growth and development before considering such a move.
Hazelton said the company will rely on a mix of internal cash flow and targeted external funding.
What is the current rate on the debt?
The current interest rate on the company’s debt is SOFR (Secured Overnight Financing Rate) plus 7.5%, which translates to roughly 13%.
In an ideal scenario, the company would like to restructure this into a four-year term loan with a six-month grace period to ease short-term cash flow pressure.
How is the relationship with Ocean Partners managed?
Hazelton described the offtake relationship with Ocean Partners as positive and long-standing. He said, “They’ve been supportive partners,” and noted regular communication and stable terms.
What does the off-take agreement look like?
The company’s off-take agreement is described as a fairly standard gold concentrate contract, without floor or ceiling pricing mechanisms. The key commercial terms include a tiered payability structure based on concentrate grade. If the company meets its target grade of 45 grams per tonne or higher, it receives just under 94.5% payability.
How can they fix liquidity of the stock?
The company has seen some improvement in liquidity over the past 3 to 6 months as awareness of the story has grown, but trading remains limited. A major reason is that most shareholders still hold their shares in certificate form, not in street form, which reduces market activity.
Will they list on another exchange?
Yes, the company plans to uplist to a major stock exchange, likely in Q4 of this year, with October or November being the most realistic timeline.
Because the company is already listed and SEC-registered, the process is expected to take about four to six months. With the recent completion of a current technical report and up-to-date disclosures, the company believes it now meets the listing criteria for most major exchanges.
Why is DynaResource’s stock down?
The CEO explained that some of the larger sales, particularly in August and September, were driven by non-strategic reasons, such as estate sales, where the sellers had no strong investment conviction or long-term view on the company. These one-off sales had an outsized impact due to the stock’s low liquidity, according to Rohan.
Why start the process only just now and not earlier?
Hazelton said the focus was previously on stabilizing operations.
“We needed to get the mine running well first,” he stated, noting that now is the right time to expand awareness and engagement.
What’s the business plan for DynaResource?
Within the next 2–3 years, the goal is to grow into a 50,000-ounce-per-year operation with 1 to 1.5 million ounces in the ground, potentially enabling a mill expansion to 1,100–1,200 tons per day.
As the company advances, leadership anticipates a key decision point: either accepting a strong acquisition offer or leveraging an improved share price to pursue growth through acquisitions.
What happens here over the next 6 months?
DynaResource aims to hit 800 tons/day, 4 g/t gold, and 80% recovery by year-end.
To boost recovery, they’re installing three new Falcon gravity concentrators at the San José plant to better capture free gold. The equipment will be commissioned by end of July, improving performance in the second half of the year.
Why was gold production down in Q1?
Gold production in Q1 2025 fell 17% year-over-year despite higher throughput due to a lack of prior underground development.
When the new team came on in January, they found the mine underdeveloped, with only eight working areas. Since then, they’ve expanded to over 22, improving flexibility and future production.
Will they hit their production goals for 2025?
Despite the slower start in Q1, management still expects to meet their 30,000-ounce gold production target for 2025, supported by improved grades and increased underground development.
Why has the grade dropped?
Grades dropped to 3.6 g/t in Q1, down from last year’s 4.0 g/t average, due to limited working areas early in the year. However, with underground development now caught up and multiple high-quality working zones open, grades have already rebounded to around 4.0 g/t, and management expects to maintain that level going forward.
Are they expecting power outages?
Yes, the company expects potential power outages during the upcoming wet season, as experienced in Q4 last year.
However, they told Resource Talks they are prepared with a 1.5 MW on-site diesel power station and an additional rental generator as backup.
What’s the CAPEX for the additional Falcon units?
The total CAPEX for the three new Falcon gravity concentrators was approximately $350,000, including full installation.
The units also enable future expansion, such as adding an intensive cyanide leach circuit to produce gold doré on site, which would cost an additional $300,000–$400,000.
What is the next bottleneck for gold production?
There are no immediate bottlenecks, according to the company.
Planning is underway to support future growth. The team is already permitting an additional tailings dam and has installed a new screen and placed a deposit on a new crusher to strengthen the comminution circuit. The current plant can handle up to 950 tpd, but a consistent 850-900 tpd is more realistic.
What is the tailings situation?
DynaResource currently uses a traditional tailings pond system, common in Mexico, with about 3 to 4 years of capacity remaining in the current cell. A Phase 4A expansion is already environmentally approved, though it requires uphill pumping, which adds to operating costs.
The company is also exploring a new downhill tailings site in a previously mined area to reduce energy use and environmental impact.
Are the local communities happy with DynaResource?
DynaResource says it has strong support from the local community of San José de Gracia.
Around 140 locals are employed, including professionals who have returned after studying elsewhere. Water is not a contentious issue, as they have a secure agreement to draw year-round water from a nearby large river.
What exploration are they planning?
DynaResource is eager to ramp up drilling to replace and grow its gold resources.
“We can’t wait to get in there and start the drill rig turning,” said the technical lead, highlighting urgency. Key targets include the newly identified Victoria vein, just 40 meters from current workings, and the historic Pelos Chinos zone. The team is also excited about bonanza-style targets in previously mined areas: “There’s some very, very exciting targets… previously mined gold.” Drilling is expected to begin soon.
Why hasn’t anyone already explored this land package?
The land package remained underexplored due to a misguided focus on low-grade open-pit potential rather than high-grade underground opportunities.
“They had some really nice grades underground and it was sort of neglected,” said Dave Keough.
The project also flew under the radar, even within the mining sector. “No one actually knew about this in the mining street… it was a sort of asset that went underneath the radar.”
What’s the budget for exploration?
DynaResource has budgeted $2 to $2.5 million for exploration this year, aiming to drill approximately 15,000 meters.
“About $90 a meter all-in cost,” said Keough, noting that most of the planned drilling will target short, 200–300 meter underground holes.
How much more drilling do they need?
DynaResource aims to drill 15,000 meters by June next year, starting with one underground rig and potentially adding a second. The focus is on short, targeted underground holes, improving efficiency over past open-pit-oriented drilling. By drilling directly from underground, they expect to double historical efficiency:
“We’re estimating about 10 ounces per meter now, compared to 5 ounces per meter in the past.” The company’s broader goal is to steadily build a 10–15 year mine life. “I’d be very disappointed if within a year or two we couldn’t have a resource inventory of at least half a million ounces,” said Keough.
When will assays come out?
The company plans to release exploration assay results periodically, with the first batch expected in late Q3. “I think what we would be looking to do would be a periodic update on our overall exploration program… maybe every other month,” said Hazelton.
Material results, especially from surface drilling or greenfield-style targets, will be disclosed sooner, while underground results may be grouped into broader updates.
Is operating a gold mine in Mexico challenging?
DynaResource sees Mexico as a strong and improving jurisdiction for mining. “We’ve been operating without disruption in Sinaloa for nine years,” said management.
They also noted recent positive shifts under the new presidential administration: “We’re definitely seeing improvements… permits that weren’t previously getting permitted are now being released.” As well, Keough added, “We have a very highly skilled workforce… and people lined up to work here,” and added, “The skill levels of the miners is world class.”
Are they feeling political pressure?
DynaResource reports no direct political pressure despite broader concerns in the media.
“We’ve seen no disruption, and we’re not feeling that pressure,” management said, adding that foreign miners remain welcome in Mexico: “At least half of the Mexican mining industry is foreign-owned, much of it Canadian.” They acknowledged some negative headlines, like talk of nationalization or a ban on open-pit mining, but described these as misunderstandings or unenforced proposals. “If there was truly a ban on open-pit mining, then half the mines in Mexico wouldn’t be operating today.”
How is the security situation?
DynaResource reports no significant security concerns at its operation in Sinaloa.
“We don’t have any special security… and I feel safe,” said management, noting that recent unrest has been confined to areas near Culiacán, far from their site.
Why did Dave get involved with DynaResource?
Dave joined DynaResource because he saw it as an undervalued, hidden gem with real geological potential and a strong team.
Dave stressed that the quality of the ore body and grades offered a low-risk opportunity to unlock value. He also praised the on-site team: “I can’t speak highly enough of the caliber of the operating people we have.”
What are their marketing plans?
Though operations are generating earnings, the company still has debt obligations and aims to accelerate growth through exploration and production. “We’re working on improving the balance sheet… and if we want to grow, we’ll need access to capital.” The goal is to establish investor awareness early, so if and when they pursue public funding, “we’re not going to the market for the first time with no one having heard of the story.”
What keeps them up at night?
For Rohan, the biggest concern is a $20 million VAT receivable from the Mexican government that remains largely uncollected.
“That’s a huge asset sitting on the balance sheet… if it were being recovered on a timely basis, the company wouldn’t need any debt,” said management. While some progress has been made, about $1 million collected so far this year, it’s been slow, partly due to government delays and partly internal.
DynaResource interview with CEO, Rohan Hazelton & COO, David Keough
VERY IMPORTANT WARNING
Please note that although none of the companies mentioned herein have paid Resource Talks for the creation of this content, this website is a business that charges for the creation and publication of content. This means there will always be a potential conflict of interest which means you can never rely on anything said herein.
By consuming this content, you acknowledge that Resource Talks and/or its affiliates and/or their personnel may own, have owned, or will own interests in and/or may have a business relationship with some or all companies/entities mentioned/featured in this publication. You further acknowledge that entities which may be referenced or featured in this publication or their related parties may hold an interest in Resource Talks or its affiliates, which may create further conflict of interest.
The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.
