Discovery Silver (DSV) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered strong gold production growth, with 66,718 oz produced and 64,479 oz sold, driving a 16% sequential revenue increase to $274M and adjusted EPS up 75% to $0.14 per share from the prior quarter.

• Net earnings for Q4 were $65.3M, with adjusted net earnings of $113.5M, reflecting improved profitability and operational momentum.

• Ended Q4 with $411M in cash and $660M in total liquidity, including an undrawn $250M revolver and no debt.

• Full-year 2025 revenue reached $653M, with net earnings of $106.8M and adjusted net earnings of $200M.

• Completed the Porcupine Complex acquisition in April 2025, transforming into a Canadian gold producer with multiple operations.

Financial highlights

• Q4 2025 revenue: $274M; EBITDA: $126M; net earnings: $65.3M; adjusted net earnings: $113.5M ($0.14/share); EBITDA margin: 46%.

• Operating cash flow in Q4 was $163M, up from $153M in Q3; free cash flow was $68M after $99.9M in capital expenditures.

• Q4 cash costs per ounce sold: $1,185; AISC: $2,034/oz, with AISC impacted by higher sustaining capital.

• FY 2025 free cash flow: $172.2M; net cash from operating activities: $377.7M.

• Cash balance increased 20% quarter-over-quarter, closing at $411M.

Outlook and guidance

• 2026 gold production guidance: 260,000–300,000 oz, with output weighted to H2 as cost improvements and capital investments take effect.

• 2026 operating cash costs expected at $1,250–$1,400/oz; AISC at $1,950–$2,250/oz, with costs declining in H2.

• Sustaining capital: $120M–$165M; growth capital: $195M–$235M; exploration: $55M–$75M; Cordero fees/capital: $90M–$100M.

• Exploration budget to increase significantly in 2026, targeting ~280,000 m of drilling, mainly in Ontario.

• Unit costs expected to start high and decline through the year; capital investment run rate from Q4 2025 to continue, front-loaded in 2026.