Q3 2025 NET EARNINGS AND EPS
Net earnings of $42.4M ($0.05/share) versus net loss of $3.9M ($0.01/share) in Q3 2024; Adjusted net earnings1 totaled $61.1 million or $0.08/share.
GOLD PRODUCTION IN Q3 2025
63,154 oz produced compared to 50,552 oz in Q2 2025 (from April 16, June 30).
OPERATING CASH COSTS IN LINE WITH EXPECTATIONS
Operating cash costs1 of $1,339/oz sold versus $1,341/oz in Q2 2025.
ATTRACTIVE MARGINS DRIVE PROFITABILITY AND CASH FLOW
All-in sustaining costs ("AISC")1 averaged $1,734/oz sold compared to an average realized gold price1 of $3,489/oz; Site-level AISC2 averaged $1,699/oz sold.
STRONG CASH FLOW FROM GOLD SALES
Net cash from operating activities of $153.5M; Free cash flow1 of $86.8M.
SOLID CASH POSITION TO SUPPORT OPERATIONS AND GROWTH PLANS
Cash at September 30, 2025, totaled $341.5M, with working capital of $224.2 million.
NEW REVOLVING CREDIT FACILITY ("RCF") PROVIDES INCREASED LIQUIDITY
New RCF will allow Discovery to borrow up to $250 million, with an accordion feature for an additional $100 million. The agreement is expected to close in Q4 2025.
ENCOURAGING EXPLORATION RESULTS RELEASED SUBSEQUENT TO QUARTER END
Resource conversion and expansion drilling at Hoyle Pond, Borden and Pamour returns excellent results; Encouraging drill results at Owl Creek confirm potential for significant high-grade mineralization west of Hoyle Pond.
Example of Non-GAAP measure. See the section in this press release entitled, "NON-GAAP MEASURES" for more information.
Site-level AISC includes corporate G&A allocation and excludes remaining corporate G&A, share-based compensation costs and corporate-level sustaining capital expenditures.
TORONTO, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Discovery Silver Corp. (TSX:DSV, OTCQX:DSVSF) ("Discovery" or the "Company") today announced the Company's financial and operating results for the third quarter ("Q3 2025") and first nine months ("YTD 2025") of 2025. Discovery began reporting the results of gold production and sales following the Company's acquisition ("Acquisition" or "Porcupine Acquisition") of the Porcupine Complex ("Porcupine") in and near Timmins, Ontario on April 15, 2025. The Company's full financial statements and management discussion & analysis are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.discoverysilver.com. All dollar amounts are in US dollars, unless otherwise noted.
Tony Makuch, Discovery's CEO, commented: "During Q3 2025, we generated solid operating and financial results while at the same time continuing to integrate systems, align policies and procedures, strengthen management structures and advance investment programs at Porcupine. A key highlight of the third quarter was cash flow, with net cash from operating activities of $153.5 million and free cash flow1 totaling $86.8 million. Strong cash flow resulted from a 56% increase in gold sales, to 66,200 ounces from 42,550 ounces the previous quarter, and an increase in the average realized gold price1, to $3,489 per ounce sold. 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 capitalized as it moves forward with investment plans aimed at growing production, improving costs and maximizing value creation at Porcupine.
"A key component of the tremendous potential at Porcupine involves exploration. Last week, we issued our first exploration update, which included excellent drill results from resource conversion and expansion drilling at Hoyle Pond, Borden and Pamour, as well as very encouraging results at Owl Creek, which confirm the presence of high-grade mineralization three kilometers to the west of Hoyle Pond. We also announced the commencement of drilling programs at Dome Mine and the TVZ Zone. Dome and TVZ have the potential to become two new mining operations that could substantially grow production and value creation in Timmins. Drilling at Dome and TVZ is being conducted as part of studies to more thoroughly evaluate the projects, with these studies targeted for completion in 2026."
SUMMARY OF Q3 AND YTD 2025 PERFORMANCE
Three months ended
Nine months ended
In $ thousands except per share amounts
September 30, 2025
September 30, 2024
June 30,2025
September 30, 2025
September 30, 2024
Revenue
236,961
—
142,010
378,971
—
Production costs
106,807
—
54,919
161,726
—
Earnings (loss) before income taxes
71,114
(3,860)
24,510
89,172
(9,503)
Net earnings (loss)
42,439
(3,860)
5,534
41,521
(9,503)
Basic earnings (loss) per share
0.05
(0.01)
0.01
0.06
(0.02)
Diluted earnings (loss) per share
0.05
(0.01)
0.01
0.06
(0.02)
Cash flow from (used in) operating activities
153,488
(1,192)
67,081
214,492
(12,206)
Cash investment on mine development and PPE
(66,675)
(2,280)
(39,766)
(110,208)
(7,723)
Three months ended
Nine months ended
September 30, 2025
September 30, 2024
June 302025
September 30, 2025
September 30, 2024
Tonnes milled
808,688
—
508,791
1,317,480
—
Average Grade (g/t Au)
2.69
—
3.39
2.96
—
Recovery (%)
90.3
—
91.3
90.7
—
Gold produced (oz)
63,154
—
50,552
113,706
—
Gold sold (oz)
66,200
—
42,550
108,750
—
Average realized price ($/oz sold)(1)
$
3,489
$
—
$
3,337
$
3,430
$
—
Operating cash costs per ounce sold ($/oz sold)(1)(2)
$
1,339
$
—
$
1,341
$
1,340
$
—
AISC per ounce sold ($/oz sold)(1)(2)(3)
$
1,734
$
—
$
2,074
$
1,863
$
—
Adjusted net earnings(1)
$
61,090
$
(2,336
)
$
28,434
$
86,479
$
(6,414
)
Adjusted net earnings per share(1)
$
0.08
$
(0.01
)
$
0.04
$
0.13
$
(0.02
)
Free cash flow(1)
$
86,813
$
(3,472
)
$
27,315
$
104,284
$
(19,929
)
(1) Example of Non-GAAP measure. See the section in this press release entitled, "NON-GAAP MEASURES" for more information. (2) For Q2 2025, ounces sold and the cash payments in the operating cash costs per ounce sold and AISC per ounce sold calculations that related to the Franco Royalty arrangement have been excluded. See the section in this press release entitled, "NON-GAAP MEASURES" for more information. (3) YTD 2025 results exclude G&A expense, share-based compensation costs and sustaining capital expenditures and lease expense incurred prior to April 15, 2025, the completion date of the Porcupine Acquisition.
Q3 2025
Revenue in Q3 2025 totaled $237.0 million that resulted from gold sales of 66,200 ounces at an average realized gold price1 of $3,489 per ounce.
EBITDA1,2 of $122.1 million compared to a loss before interest, taxes and depreciation and amortization of $3.9 million in Q3 2024 and EBITDA of $55.2 million in Q2 2025. The significant improvement in EBITDA compared to the previous quarter largely reflected the favourable impact on earnings of a 67% increase in revenue from Q2 2025 and a reduction in corporate G&A costs.
Net earnings totaled $42.4 million, or $0.05 per basic share, versus a loss of $3.9 million, or $0.01 per basic share, in Q3 2024 and net earnings of $5.5 million, or $0.01 per basic share, in Q2 2025.
Adjusted net earnings1 totaled $61.1 million, or $0.08 per basic share, compared to adjusted net loss of $2.3 million, or $0.01 per basic share, in Q3 2024 and adjusted net earnings of $28.4 million, or $0.04 per basic share, the previous quarter. The main differences between net earnings and adjusted net earnings in Q3 2025 related to the exclusion from adjusted net earnings of the after-tax impacts of $18.5 million of purchase price allocation ("PPA") adjustments, $3.3 million related to transition services agreement ("TSA") costs and $1.6 million of transaction-specific business development costs, partially offset by the exclusion of $9.2 million of foreign exchange gains.
Solid operating performance in Q3 2025:
Production of 63,154 ounces compared to 50,552 ounces the previous quarter (76 days from April 16, 2025 to June 30, 2025)
Gold sales of 66,200 ounces versus 42,550 ounces in Q2 2025
Production costs of $106.8 million compared to $54.9 million the previous quarter (Q3 2025 production costs included the $18.5 million of PPA adjustments ($nil in Q2 2025) and $3.3 million of TSA costs ($2.4 million in Q2 2025).
Operating cash costs1 averaged $1,339 per ounce sold versus $1,341 per ounce sold in Q2 2025
All-in sustaining costs1 ("AISC") averaged $1,734 per ounce sold compared to $2,074 per ounce sold the previous quarter; Site-level AISC in Q3 2025 averaged $1,699 per ounce sold versus $1,849 per ounce sold in Q2 2025. See the Operating cash costs and AISC tables in the Non-GAAP Measures section near the end of this press release for more information.
Cash flows included net cash from operating activities of $153.5 million, which compared to net cash used in operating activities of $1.2 million in Q3 2024 and net cash from operating activities of $67.1 million the previous quarter.
Free cash flow1 totaled $86.8 million versus free cash flow of ($3.5) million in Q3 2024 and $27.3 million in Q2 2025.
Capital expenditures1 in Q3 2025 totaled $65.2 million, with an additional $1.4 million of finance leases. Of the $65.2 million, $20.8 million related to sustaining capital expenditures1, while $44.4 million were growth capital expenditures1. Sustaining capital expenditures were largely focused on capital development at Hoyle Pond and Borden and construction work to raise and buttress the No. 6 tailings management area ("TMA6") at the Dome property. Growth capital expenditures primarily related to pre-stripping at Pamour and longer-term investments at the TMA6.
Cash at September 30, 2025, totaled $341.5 million compared to $252.5 million at June 30, 2025, with the increase in cash mainly resulting from the $86.8 million of free cash flow generated during Q3 2025.
Working capital1 at September 30, 2025 totaled $224.2 million as compared to working capital of $17.0 million at December 31, 2024 and $225.9 million at June 30, 2025. The 35% increase in cash during Q3 2025 was offset by lower inventory levels as well as higher current tax payable, employee-related benefits and other current liabilities in accounting for the change in working capital compared to June 30, 2025.
(1) Represents cash capital expenditures incurred during Q3 2025
YTD 2025
Discovery did not generate revenue or earnings from mine operations in YTD 2024 or Q1 2025.
Gold production totaled 113,706 ounces, while gold sales totaled 108,750 ounces. Revenue of $379.0 million resulted from gold sales and an average realized price of $3,430 per ounce. Production costs totaled $161.7 million. Operating cash costs averaged $1,340 per ounce sold, while AISC per ounce sold averaged $1,863.
EBITDA was $171.0 million versus a loss before interest, taxes and depreciation and amortization of $9.5 million in YTD 2024, with earnings generated following the Porcupine Acquisition in Q2 2025 mainly accounting for the significant improvement in EBITDA performance.
Net earnings totaled $41.5 million, or $0.06 per basic share, versus net loss of $9.5 million, or $0.02 per basic share, in YTD 2024, with the prior year net loss largely resulting from corporate G&A costs, share-based compensation expense and foreign exchange losses during YTD 2024.
Average basic shares outstanding were 648.0 million shares versus 399.5 million shares for the same period a year earlier, with the increase mainly due to the impact of the 401.8 million shares issued during Q2 2025 in relation to the Porcupine Acquisition and the Company's Financing Package.
Adjusted net earnings were $86.5 million, or $0.13 per basic share, respectively, compared to adjusted net loss of $6.4 million, or $0.02 per share, in YTD 2024. The difference between net earnings and adjusted net earnings in YTD 2025 mainly reflected the exclusion from adjusted net earnings of the after-tax impacts of $21.8 million of transaction-specific business development expenses primarily related to the Porcupine Acquisition, the $18.5 million of PPA adjustments and $5.7 million of TSA costs.
Net cash from operating activities in YTD 2025 totaled $214.5 million, while free cash flow totaled $104.3 million.
Total capital expenditures totaled $112.5 million, with an additional $2.2 million of finance leases. Of the $112.5 million of capital expenditures, $37.0 million related to sustaining capital expenditures and $75.5 million were growth capital expenditures. Porcupine accounted for $70.8 million of growth capital expenditures in YTD 2025, mainly reflecting pre-stripping at Pamour and TMA6 expenditures. Growth capital expenditures at Cordero totaled $4.7 million, which largely related to land acquisition.
(1) Example of Non-GAAP measure. See the section of this press release entitled, "NON-GAAP MEASURES" for more information.(2) Refers to earnings before interest, taxes and depreciation and amortization.
Income Statement Summary
Three months ended
Nine months ended
September 30,2025
September 30,2024
June 30,2025
September 302025
September 30,2024
Revenue
$
236,961
$
-
$
142,010
$
378,971
$
-
Production costs
106,807
-
54,919
161,726
-
Depreciation and amortization
35,826
-
16,384
52,210
-
Royalties
3,619
-
1,916
5,535
-
Earnings from mining operations
90,709
-
68,791
159,500
-
Expenses
General and administration
6,661
2,017
22,877
35,012
5,658
Exploration
5,972
158
830
6,827
375
Impairment
2,140
—
—
2,140
—
Share-based compensation
1,398
676
1,953
4,518
2,022
Earnings from operations
74,538
(2,851
)
43,131
111,003
(8,055
)
Other
Other income (loss)
9,301
(1,327
)
(6,879
)
2,611
(2,778
)
Finance Items
Finance expense, net
(12,725
)
318
(11,742
)
(24,442
)
