Discovery Silver (TSX: DSV, OTCQX: DSVSF) had a busy year, and Q4 really highlighted how far the company has come. After completing the acquisition of Newmont’s Porcupine operations in April, the company produced 66,718 ounces of gold in the quarter, bringing the total from the acquisition to 180,424 ounces. If you include production before the deal, Porcupine ended up with 234,702 ounces for the year, a solid start for a company that had been primarily focused on silver.
Production and Exploration Takeaways
Production was up roughly 6% from Q3, mainly thanks to better grades at Hoyle Pond and more tonnes processed at Pamour, which is still ramping up. They poured 67,010 ounces and sold 64,479 ounces at around $4,157 per ounce. Nothing flashy but steady growth is exactly what you want to see when integrating a new operation.
Exploration continues to be a bright spot. Drilling at Hoyle Pond and Borden returned some high-grade hits, Pamour showed promise along strike, and Owl Creek had encouraging district-level results. CEO Tony Makuch noted 19 drills were active at year-end so we can probably expect more updates soon. It is one thing to buy a mine, it is another to keep finding ounces in the ground, and Discovery seems to be doing both.
Financial Position
Discovery wrapped the year with $410 million in cash and zero debt, which is rare for a company growing this quickly. Add in a $250 million revolving credit facility with a $100 million accordion feature, and management has serious flexibility if they want to accelerate growth or pursue other acquisitions.
They also finalized a Resource Development Agreement with the Taykwa Tagamou Nation. It is a smart move, having local support can smooth operations and reduce risk even if it is easy to overlook in the numbers.
What’s Next
Full-year guidance for 2026 comes with the Q4 results in February, but a few things are worth watching. First, Pamour’s ramp-up. If that goes smoothly, production should continue climbing. Second, ongoing drilling could add more ounces, particularly at Owl Creek. Finally, the company has the cash and credit to act on opportunities, whether that is exploration, expansions, or acquisitions.
Bottom line, Discovery is not just a silver story anymore. With gold production ramping and exploration hitting, they have positioned themselves as a growth-oriented precious metals play worth keeping on the radar.
