The Montreal-based buyer of ore produced by artisanal and small-scale miners in Peru for processing at its in-country facilities said the dividend increase was a product of the board's ongoing confidence in the company's specialist business model, which had generated modest but consistent earnings and free cash flow over the years.

Dynacor has reported profits for 34 consecutive quarters.

The company said its focus on optimisation, higher forecast gold production and a stable (or rising) gold price boded well for a strong operating performance in 2020 that would push free cash flow even higher.

Since launching the first dividend on October 1, 2018, the company has distributed to shareholders five cash instalments totalling 5c per share.

Dynacor expects to produce 78,000-80,000oz gold this year, compared with record 2018 total output of 81,314oz and 79,897oz in 2017.

The company's Toronto-quoted shares (TSX:DNG) gained nearly 5% on Wednesday to $1.73, trending towards the 12-month high of $2.00. The company has a market capitalisation of $66 million (US$50 million).