Discovery Mining (DSV) Q4 2023 earnings summary

Executive summary

• The February 2024 feasibility study positions Cordero as the world’s largest undeveloped silver project by reserves and expected annual production, with a 19-year mine life and attractive projected economics.

• 2023 work advanced engineering, design, drilling, and environmental and social studies; the Environmental Impact Statement was submitted in August.

• The 2024 priority is to further de-risk Cordero, complete permitting, and arrange project financing; cash was C$58.9M at Dec. 31, 2023, and management cited a current balance of ~C$52M.

Financial highlights

• Net loss was C$4.54M in Q4 2023 vs. C$5.67M in Q4 2022; FY 2023 net loss was C$10.41M vs. C$15.75M in 2022.

• Basic and diluted loss per share was C$0.02 in Q4 2023 vs. C$0.01 in Q4 2022; FY loss per share was C$0.04 vs. C$0.12 in 2022.

• At Dec. 31, 2023, total assets were C$146.1M vs. C$91.6M a year earlier; total current liabilities were C$12.2M vs. C$2.0M.

Outlook and guidance

• 2024 work includes FEED, additional permitting, local water-treatment plant engineering, surface-rights and infrastructure de-risking, and 2,500m of planned exploration drilling.

• Targeting submission of the Change of Land Use application in Q3 2024; work also addresses land, power supply, and water permits.

• The plan is to complete permitting and arrange financing for Cordero while advancing project de-risking.