Discovery Reports 50,552 Ounces of Gold Production, $27.3 Million of Free Cash Flow¹ in Q2 2025

Core Viewpoint - Discovery Silver Corp. has reported its financial and operational results for Q2 2025, marking its first quarter as a Canadian gold producer following the acquisition of the Porcupine Complex. The company achieved significant production and financial performance, with plans for further growth and investment in operations [2][3][34]. Financial Performance - Q2 2025 revenue totaled $142.0 million from gold sales of 42,550 ounces at an average realized price of $3,337 per ounce [8][14]. - Net earnings for Q2 2025 were $5.5 million ($0.01 per share), compared to a net loss of $5.1 million in Q2 2024 [6][8]. - Adjusted net earnings were $28.4 million ($0.04 per share), reflecting the impact of acquisition-related costs and foreign exchange losses [8][13]. - Free cash flow for Q2 2025 was $27.3 million, a significant improvement from negative free cash flow in the previous year [10][12]. Production Highlights - Gold production for Q2 2025 was 50,552 ounces, with contributions from Hoyle Pond (16,112 oz), Borden (27,286 oz), and Pamour (7,154 oz) [6][8][30]. - Operating cash costs averaged $1,334 per ounce sold, while all-in sustaining costs (AISC) averaged $2,123 per ounce sold [10][14]. - The company processed 508,791 tonnes at the Dome Mill with an average grade of 3.39 g/t and a recovery rate of 91.3% [18][19]. Capital Expenditures and Investments - Total capital expenditures for Q2 2025 were $44.2 million, with $16.1 million allocated to sustaining capital and $28.1 million to growth capital [10][12]. - Key investment programs included enhancements at Dome Mill and ramping up production at Pamour [4][10]. Future Outlook - The company aims to increase production levels in the latter half of 2025 and plans to ramp up capital investment and exploration programs [5][34]. - A total of 140,000 meters of drilling is targeted for 2025 to support resource conversion and establish an initial reserve statement for the mines [35][36]. Operational Overview - The Porcupine Operations cover approximately 1,400 km in and near Timmins, Ontario, including multiple mine properties and exploration targets [15][40]. - The Dome Mill has a nameplate capacity of approximately 12,000 tonnes per day, with recent operational challenges addressed during a maintenance shutdown [16][18]. Cordero Project - The Cordero Project is one of the world's largest undeveloped silver deposits, with significant investments made to advance its development [32][34]. - The company is awaiting approval for its Environmental Impact Assessment to further progress the Cordero project [39].