Discovery Silver (OTCPK:DSVS.F) 2025 Conference Transcript

Summary of Discovery Silver Conference Call Company Overview - Company: Discovery Silver (OTCPK:DSVS.F) - Industry: Mining, specifically gold and silver production Key Points and Arguments 1. Transformational Year: 2026 is highlighted as a transformational year for Discovery Silver, marked by the acquisition of Porcupine Gold assets in Timmins, Ontario, which was completed in April 2026 [1][2] 2. First Quarter Performance: The company reported its first quarter as a gold producer with solid operational performance and significant free cash flow, indicating strong market response to the acquisition [2] 3. Valuation Analysis: The net present value (NPV) of the acquisition is estimated between $2.5 billion to $3.5 billion, with the company trading at approximately 0.8x to 0.9x this value, suggesting an attractive entry point compared to established Canadian producers [3][4] 4. Key Value Drivers: Five key value drivers are identified: - Upside potential from existing operations at Hallpond, Borden, and Panmoor - Dome deposit with 11 million ounces of resources adjacent to processing facilities - TVZ underground deposit with aggressive exploration plans - Cordero, one of the largest undeveloped silver deposits globally [4][5][16] 5. Production Growth: The company anticipates over 50% production growth, projecting production to exceed 500,000 ounces once growth opportunities are executed [6][9] 6. Investment Opportunities: Significant investments are planned to increase mining rates and mill capacity, with expectations to ramp up production rates at Hall Pond and Borden, and expand mill throughput from 12,000 tons per day to 30,000 tons per day [8][9] 7. Exploration Plans: A robust exploration program is underway, with plans to ramp up to 20 drill rigs and a current program of 140,000 meters, aiming for an inaugural resource estimate for TVZ in 2026 [15][18] 8. Cordero Project: Cordero is positioned as a major asset with an NPV of $2.5 billion at $35 silver, with optimism for permit approval by the end of the year [16][18] 9. Capital Expenditure: Estimated capital expenditures for Cordero are projected to be between $700 million to $750 million, while the mill expansion at Dome is estimated at $200 million to $300 million [22][24] 10. Share Structure: The company has 800 million shares outstanding, with significant institutional shareholders including Eric Sprott, BlackRock, and T. Rowe Price [28][29] Additional Important Information - Market Context: The company is optimistic about the regulatory environment in Mexico, particularly regarding open-pit mining, which has seen improved conditions under the new administration [19][20] - Future Outlook: The next twelve months are expected to be catalyst-rich, with updates on technical reports, exploration results, and project developments anticipated [18]