Discovery Mining (DSV) Q2 2026 earnings summary

Executive summary

• Achieved record gold production of 67,309 oz in Q2 2026, up 33% year-over-year and 12% from Q1, driven by higher throughput, operational improvements, and the Kidd acquisition.

• Completed the acquisition of Kidd operations, adding copper, zinc, and silver production, contributing $29.7M–$30M in revenue and enabling future growth and processing flexibility.

• Maintained robust liquidity of $607.8M at quarter-end, with no debt and an expanded $400M revolving credit facility.

• Delivered strong exploration results at Pamour, Dome, TVZ, Owl Creek, and Borden, supporting resource expansion and future production growth.

• Progressed major capital projects, including tailings expansion, fleet upgrades, infrastructure investments, and ERP system implementation.

Financial highlights

• Q2 2026 revenue reached $319.1M, up 12% quarter-over-quarter and more than double Q2 2025, marking the fourth consecutive quarter of growth.

• Adjusted earnings were $92.3M ($0.11/share), up from $82.7M in Q1 and $28.4M in Q2 2025; adjusted EPS rose 11% quarter-over-quarter.

• EBITDA was $170M, stable versus Q1 and up from $55.2M in Q2 2025, with Kidd's contribution offsetting lower realized gold prices.

• Free cash outflow of $11.4M, reflecting ramped-up capital expenditures and working capital changes due to ERP implementation and Kidd acquisition timing.

• Cash balance at quarter-end was $364M, with total liquidity exceeding $750M after upsizing the revolving credit facility.

Outlook and guidance

• Tracking well to achieve full-year 2026 guidance of 260,000–300,000 oz gold, with expectations for improved unit costs and higher production in H2.

• Full-year gold operating cash costs expected at $1,250–$1,400/oz and AISC at $1,950–$2,250/oz.

• Capital expenditures for 2026 planned at $195–$235M for growth, $25–$75M for exploration, and $120–$165M for sustaining capital.

• Anticipate continued strong operational and financial performance, supported by robust liquidity and ongoing investment in growth projects.