Discovery Silver hits new high on first quarterly results as producer

[Ben Graham]

Discovery Silver (TSX: DSV) climbed to an all-time high on Tuesday after reporting strong results for the most recent quarter and its first as a gold producer.

During the second quarter, the company completed its $425 million acquisition of the Porcupine operation in Ontario from Newmont (NYSE: NEM, TSE: NGT), the world’s leading gold producer. The Porcupine complex covers a 1,400 km² land package in and near Timmins, and includes the Hoyle Pond and Borden underground mines, the Pamour open-pit mine, and the Dome milling facility.

From April 15, the date of acquisition close, to June 30, the Porcupine complex delivered total gold production of 50,552 oz., at all-in sustaining costs of $2,123 per oz. sold and average realized gold price of $3,337 per oz.

With first production in the books, the Toronto-based Discovery posted a net income of $5.5 million, versus a net loss of $5.1 million in the same quarter last year and a loss of $6.5 million the previous quarter. When adjusted for costs related to the Porcupine acquisition, its net earnings would swell to $28.4 million, compared to just $3 million in both Q2 2024 and Q1 2025.

“During the quarter, we integrated systems, strengthened management structures and began implementing investment programs at Porcupine aimed at improving existing operations and pursuing growth opportunities,” Discovery CEO Tony Makuch stated in the earnings release.

He added that the company made several key investments during Q2, including upgrades to the Dome facility, ramp-up of the Pamour mine towards commercial production levels, and optimization of the Hoyle Pond and Borden operations. It also began deploying drills as part of an extensive exploration program focused on near-mine and district targets to grow the resource base.

“Looking ahead, we are targeting production levels to increase in the final two quarters of the year,” Makuch said. Last year, the Porcupine operation contributed 284,000 oz. to Newmont’s total production.

Shares of Discovery Silver gained as much as 6.8% to a new high of C$3.92 apiece following the Q2 2025 results release. By 11:00 a.m. ET, it had pulled back to around C$3.87 with a market capitalization of C$3.1 billion ($2.2 billion).