Discovery Silver Announces Impressive Fourth Quarter 2025 Financial Results
Discovery Silver Corp., a prominent mining company listed on the TSX under the symbol DSV and on OTCQX as DSVSF, has released its financial and operating results for the fourth quarter of 2025 and the full fiscal year 2025. The company, which acquired the Porcupine Complex in Timmins, Ontario in April 2025, reported substantial growth across key metrics, highlighting a period of strong performance and strategic investment.
Financial Performance Highlights
The company demonstrated remarkable financial strength in Q4 2025. Net earnings reached $65.3 million, equivalent to $0.08 per share. More impressively, adjusted net earnings soared to $113.5 million, or $0.14 per share, representing a significant 75% increase compared to the previous quarter's $61.1 million or $0.08 per share. This substantial improvement in profitability reflects both operational efficiency and favorable market conditions.
Cash generation remained a standout feature, with the company ending the quarter with $410.7 million in cash as of December 31, 2025. This represents a robust 20% growth in cash position, bolstering the company's financial stability. Additionally, Discovery Silver maintains $250 million of liquidity through an undrawn revolving credit facility, along with a $100 million accordion feature, providing ample financial flexibility for future initiatives.
Operational Achievements and Production Metrics
On the operational front, Discovery Silver reported a 6% increase in gold production, with 66,718 ounces produced in Q4 2025 compared to 63,154 ounces in the previous quarter. This growth demonstrates the successful integration of the Porcupine acquisition and the company's ability to enhance production capabilities.
The company also achieved a 12% improvement in operating cash costs, which decreased to $1,185 per ounce sold from $1,339 per ounce in Q3 2025. This cost reduction reflects operational efficiencies and improved management of resources. All-in sustaining costs per ounce averaged $2,034, while site-level AISC per ounce averaged $1,824, indicating disciplined cost management despite increased capital investments.
Strategic Investments and Capital Expenditures
Discovery Silver has been actively investing in its Porcupine operations to drive future growth. Sustaining capital expenditures totaled $33.8 million, with growth capital expenditures reaching $66.1 million, compared to $20.8 million and $44.4 million respectively in the previous quarter. These investments are aimed at improving and expanding the Porcupine Complex to unlock its full value potential.
The company generated strong cash flow from gold sales, with net cash from operating activities reaching $163.2 million and free cash flow totaling $67.9 million. This robust cash generation supports both ongoing operations and strategic expansion plans.
Exploration Success and Future Outlook
Exploration efforts have yielded excellent results across multiple targets. The company reported successful drill results from resource conversion and expansion drilling at Hoyle Pond, Borden, and Pamour. Continued success at Owl Creek and encouraging initial results from Dome, TVZ, and Broulan Pit further demonstrate the company's exploration capabilities and growth potential.
Looking ahead to 2026, Discovery Silver has provided guidance that includes solid production growth and continued investments. The company anticipates back-half weighted production of 260,000 to 300,000 ounces, with operating cash costs per ounce projected between $1,250 and $1,400. All-in sustaining costs per ounce are expected to range from $1,950 to $2,250. The company plans front-half weighted sustaining capital expenditures of $120 million to $165 million and growth capital expenditures of $195 million to $235 million.
Leadership Perspective
Tony Makuch, CEO of Discovery Silver, commented on the results, stating, "We have built considerable momentum since acquiring Porcupine last April, with production in Q4 2025 totaling 66,718 ounces and operating cash costs improving to $1,185 per ounce. Our solid operating performance, in combination with higher gold prices, has resulted in improved profitability and substantial cash flow generation. We ended 2025 with a very strong financial position, with cash totaling $410.7 million and no debt."
Makuch further emphasized the company's exploration achievements, noting, "Another key area of accomplishment has been exploration. Last week, we reported excellent drilling results across our key Porcupine targets, including additional high-grade intersections from resource conversion and extension drilling at Hoyle Pond, Borden and Pamour; district drilling success at Owl Creek, as well as at the new Broulan target near Pamour; and very encouraging initial drilling results from our two key near-term growth projects, Dome and TVZ."
The company's full financial statements and management discussion and analysis are available on SEDAR+ at www.sedarplus.ca and on the company's website at www.discoverysilver.com. All dollar amounts reported are in US dollars unless otherwise specified.
