Discovery Mining (DSV) Q2 2026 earnings summary

Executive summary

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

• Completed Kidd Operations acquisition, contributing $29.7–$30 million in revenue, expanding processing capacity, and adding critical minerals exposure.

• Exploration success at Pamour, Dome, TVZ, Owl Creek, and Borden supported resource expansion and future production growth.

• Progressed major capital projects, including tailings expansion, fleet upgrades, mill upgrades, and infrastructure investments at key sites.

• Maintained strong liquidity with $364–$607.8 million in cash at quarter-end and no debt.

Financial highlights

• Q2 2026 revenue reached $319–$319.1 million, a 12% increase quarter-over-quarter and more than double Q2 2025.

• Adjusted earnings were $92.3 million ($0.11/share), up from $82.7 million in Q1 and $28.4 million in Q2 2025.

• EBITDA was $170 million, stable versus Q1 and up from $55.2 million in Q2 2025.

• Free cash outflow of $11–$11.4 million, reflecting ramped-up capital expenditures and working capital changes.

• Operating cash flow for Q2 2026 was $74–$130 million, partially offset by working capital adjustments and capital investments.

Outlook and guidance

• Tracking well to achieve full-year 2026 gold production guidance of 260,000–300,000 oz, 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–$235 million for growth, $25–$35 million for exploration, and $120–$165 million for sustaining capital.

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