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 Complex from Newmont, effective April 15, 2025.

• The Porcupine Complex contributed $142 million in revenue and $31.4 million in net income after taxes since acquisition.

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

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

• Raised $175 million in equity financing and secured a $300 million royalty agreement to fund the acquisition and working capital.

Financial highlights

• 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.

• Net earnings for Q2 2025 were $5.5 million ($0.01 per share), compared to a net loss of $5.1 million in Q2 2024.

• Revenue for Q2 2025 was $142 million, with operating cash flow reaching $67.1 million and EBITDA at $55.2 million.

• Cash and cash equivalents increased to $252.5 million at June 30, 2025, rising to $279 million shortly after.

• Total assets rose to $1.56 billion at June 30, 2025, from $85.4 million at December 31, 2024.

Outlook and guidance

• Higher production is expected in Q3 and Q4, with continued ramp-up in exploration and capital expenditures.

• 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.

• Deferred consideration of $150 million to be paid in four annual installments starting December 2027.