Discovery Silver (DSV) Q2 2025 earnings summary

Executive summary

• Q2 2025 marked the first quarter as a US dollar reporting issuer and as a new Canadian gold producer following the acquisition of the Porcupine operations from Newmont, with 50,552 ounces of gold produced in 76 days and 42,550 ounces sold, the remainder held in inventory for Q3 sale.

• The quarter was transitional, involving integration of systems, management reorganization, and the start of key investment and exploration programs targeting operational improvements and growth.

• Net earnings reached $5.5 million ($0.01 per share) versus a net loss of $5.1 million in Q2 2024; adjusted net earnings were $28.4 million ($0.04 per share).

• Operations covered 76 days, including a two-week scheduled mill shutdown.

Financial highlights

• Q2 2025 revenue was $142.0 million from gold sales at an average realized price of $3,337/oz.

• Adjusted net earnings were $28.4 million ($0.04 per share), excluding $16.6 million in acquisition-related costs and $4.7 million in FX losses.

• EBITDA for Q2 was $55.2 million, a significant turnaround from losses in Q2 2024 and Q1 2025.

• Operating cash flow reached $67 million; free cash flow was $27 million, with higher potential if all produced gold had been sold.

• Cash balance at quarter-end was $252.5 million, rising to $279 million shortly after, with working capital of $225.9 million and a $100 million undrawn credit facility.

Outlook and guidance

• Higher production is expected in Q3 and Q4, with continued ramp-up in exploration and capital expenditures, and 140,000 metres of drilling planned in 2025 to support resource conversion and reserve statements.

• Commercial production at Pamour is targeted for Q4 2026, with normalized output of 150,000 oz/year thereafter.

• Technical studies for reserves at Hoyle Pond, Borden, and Pamour are planned for mid-2026.

• Well-capitalized to fund growth at Porcupine and Cordero, with $279 million in cash as of the press release date.

• Awaiting environmental approval for the Cordero project in Mexico, with technical review completed.