05:21 PM EST, 11/25/2025 (MT Newswires) -- Dynacor Group ( DNGDF ) shareholder iolite on Thursday released a sharply critical assessment of Dynacor's ( DNGDF ) latest financial results, saying company's third-quarter report masked weakening fundamentals and what it called an "alarming lack of transparency".

The Switzerland-based firm, which is Dynacor's ( DNGDF ) largest shareholder, alleged the miner's reported top-line performance does not reflect underlying issues it believes are deteriorating across the business. Iolite said that gaps in disclosure, governance shortcomings and operational concerns have created a widening disconnect between revenue growth and future viability.

Dynacor ( DNGDF ), which operates merchant gold mills in South America, reported third-quarter net income of US$5.5 million, or US$0.12 per share, down from US$5.9 million, or US$0.16, in the same period last year. iolite said profitability continued to weaken despite what it described as exceptionally favorable market conditions. Dynacor ( DNGDF ) noted that its earnings decline came even as gold prices rallied about 40% during the quarter.

Revenue rose to US$100.5 million, up 32% year over year, with the company saying the entire gain was driven by the surge in gold prices rather than operational performance.

iolite again called upon Dynacor ( DNGDF ) chief executive Jean Martineau and chairman Pierre Lepine to resign immediately "as the first step to restoring credibility, rebuilding trust, and safeguarding shareholder value." It demanded their resignations in June, filing a formal complaint with the Quebec Autorite des marches financiers over what it said were potential disclosure violations by Dynacor ( DNGDF ).

The investment company alleged employee-related expenses surged 35% year-on-year "without credible justification", while US$0.9 million was spent on vaguely described "plant efficiency" initiatives.

"Incomplete and shifting explanations for underperformance, hostility toward concerned shareholders, and total silence regarding the announced restructuring" and internal investigation all point to a serious failure of oversight, accountability and transparency," it added.

Dynacor ( DNGDF ) did not immediately respond to an email message asking for comment on iolite's allegations.

The company's shares closed unchanged at $4.55 on the Toronto Stock Exchange.