Dynacor Gold Mines Inc.
, Stock Forum
) shares plunged 18.4% Wednesday after the company said it has decided to suspend ore purchases from its suppliers. However, the company said its wholly-owned Huanca gold ore processing plant in Peru will continue to operate at full capacity using stockpiled ore over the next three weeks.
Dynacore is an ore processing and gold exploration company which has been active in Peru since 1996. The company differentiates itself from companies that are purely engaged in exploration because it generates income and cash flow from ore processing operations in Peru.
Trading at $1.68 on Wednesday, Dynacor has a market cap of $61 million, based on 36.3 million shares outstanding. The 52-week range is $2.20 and 84 cents.
The Montreal-based company said a crackdown on illegal gold exports from Peru has reinforced the inspection process at ports and airports that are used for the export of gold and now require much more detailed information than was previously the case.
“This has created a rather confused situation which the corporation expects will be clarified by the authorities shortly,’’ the company said in a press release.
Dynacor is one of the leading gold ore processing companies in Peru. The company said it only purchases gold ore from government-registered suppliers and complies with all government regulations at all steps of its gold and silver processing operations.