Discovery well capitalised as cash grows
Toronto-listed Discovery Silver grew its cash balance to $341.5-million in the third quarter as higher production and sales from the Porcupine complex lifted earnings and free cash flow.
The company produced 63 154 oz of gold in the quarter, up from 50 552 oz in the previous period, and sold 66 200 oz at an average realised price of $3 489/oz. Revenue rose to $237-million, supporting net earnings of $42.4-million, compared with a $3.9-million loss a year earlier. Free cash flow reached $86.8-million, while operating cash flow totalled $153.5-million.
Operating cash costs were $1 339/oz sold, broadly in line with the prior quarter, and all-in sustaining costs averaged $1 734/oz.
"Driven by strong cash flow generation, we grew our cash position by 35%, to $341.5 million at September 30, 2025. With our current cash, as well as a new revolving credit facility for $250-million, plus a $100-million accordion feature, Discovery is very well capitalised as it moves forward with investment plans aimed at growing production, improving costs and maximising value creation at Porcupine," said CEO Tony Makuch.
Capital spending in the September quarter amounted to $65.2-million, including $44.4-million for growth projects such as pre-stripping at Pamour and longer-term work at the No.6 tailings management area at Dome.
Discovery continued to advance exploration across Porcupine, reporting strong conversion and expansion drilling results at Hoyle Pond, Borden and Pamour, and confirming high-grade mineralisation at Owl Creek, 3 km west of Hoyle Pond. Drilling has also started at the Dome Mine and TVZ Zone, which the company says could form future mining operations as studies progress toward 2026.
Since acquiring the Porcupine complex in April 2025, Discovery has produced 113 706 oz of gold and generated $379-million in revenue in the year to date. The Dome mill is being positioned to return to its 12 000 t/d nameplate capacity by 2028 or earlier.
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