Discovery Silver Strikes Gold with Porcupine, Fuels Ambitious Growth Plan

TORONTO, ON – February 19, 2026 – Less than a year after its transformative acquisition of the Porcupine gold complex, Discovery Silver Corp. has reported blockbuster fourth-quarter and full-year 2025 results, cementing its new identity as a major Canadian gold producer and silencing any doubts about the high-stakes pivot. The company announced soaring profits, a 75% jump in adjusted earnings per share, and a robust, debt-free balance sheet flush with over $410 million in cash.

The impressive financial performance, driven by strong production and a bullish gold market, is now set to fuel an aggressive expansion strategy. Discovery has unveiled ambitious 2026 guidance that includes a significant production increase and hundreds of millions of dollars in capital investment aimed at more than doubling its annual gold output to over half a million ounces in the coming years.

“We have built considerable momentum since acquiring Porcupine last April, with production in Q4 2025 totaling 66,718 ounces and operating cash costs improving to $1,185/oz,” said Tony Makuch, Discovery’s CEO, in a statement. “Our solid operating performance, in combination with higher gold prices, has resulted in improved profitability and substantial cash flow generation. We ended 2025 with a very strong financial position, with cash totaling $410.7 million and no debt.”

The Porcupine Gold Rush: A Transformation Realized

The Q4 results underscore the profound impact of the Porcupine acquisition from Newmont, which closed in April 2025. Before the deal, Discovery was known primarily as a silver exploration and development company focused on its massive Cordero project in Mexico. The Porcupine deal instantly transformed it into a multi-asset precious metals producer with significant operations in the prolific Timmins, Ontario gold camp.

Fourth-quarter results paint a clear picture of this success. Gold production rose 6% over the previous quarter to 66,718 ounces. More impressively, the company demonstrated improving operational efficiency, with operating cash costs falling 12% to $1,185 per ounce sold. This combination, supercharged by a surging gold price that saw the company realize an average of $4,157 per ounce in the quarter, led to a surge in profitability. Adjusted net earnings hit $113.5 million, or $0.14 per share, a 75% increase from the $0.08 per share reported in Q3 2025.

For the full year, the impact is even more stark. The company posted net earnings of $106.8 million, a dramatic reversal from the $15.2 million net loss reported in 2024. This operational success generated substantial free cash flow of $67.9 million in the fourth quarter alone, swelling the company's treasury and providing the financial firepower for its next phase of growth.

A Two-Front Strategy: Balancing Gold Production with Silver Ambitions

While the market's attention is fixed on the glittering results from its Canadian gold operations, Discovery is executing a sophisticated dual-asset strategy. The powerful cash flow generated by the Porcupine Complex is not only being reinvested to grow gold production but also serves to de-risk and advance the company's original flagship asset: the world-class Cordero silver project in Chihuahua, Mexico.

The 2024 Feasibility Study for Cordero outlined a project of massive scale, with the potential to produce an average of 37 million silver-equivalent ounces annually over its first 12 years. With an initial capital cost of $606 million, the project requires significant funding that was a major hurdle for a pre-production developer. Now, with a profitable gold operation in its portfolio, the path to financing and developing Cordero appears much clearer.

The company is continuing to de-risk the project, with its Environmental Impact Statement currently under review by Mexican authorities. The 2026 guidance earmarks $90-$100 million in fees and capital for Cordero, a significant portion of which is for the anticipated payment of a land use permit fee. This demonstrates a clear commitment to advancing the silver project in parallel with its Canadian gold expansion, positioning Discovery as a unique investment vehicle with exposure to both near-term gold production growth and long-term, large-scale silver potential.

Investing for a Half-Million Ounce Future

Discovery is wasting no time in deploying its newfound financial strength. The company's 2026 guidance outlines a plan for aggressive investment aimed at unlocking the full potential of the Porcupine camp. Gold production is targeted to grow to between 260,000 and 300,000 ounces for the year, a significant step up from the post-acquisition 2025 total of 180,424 ounces.

Underpinning this growth is a massive capital expenditure program. The company plans to spend $120-$165 million on sustaining capital and a further $195-$235 million on growth projects at Porcupine. These investments are targeted at critical infrastructure and development, including buttressing and expanding the capacity of the No. 6 tailings management area (TMA6), continued pre-stripping at the Pamour open pit to ramp it up to commercial operation, and acquiring new mobile equipment to improve efficiency at the Hoyle Pond and Borden underground mines.

Furthermore, a hefty exploration budget of $55-$75 million has been allocated for 2026, supported by excellent recent drilling results across numerous targets. With 20 drill rigs currently active, the company is focused on converting and expanding resources at its operating mines and testing new regional targets like Owl Creek and the Broulan Pit. This aggressive investment in both brownfield and greenfield exploration is a core component of the strategy to extend mine life and build a sustainable production pipeline.

While these heavy, front-half weighted investments will lead to higher all-in sustaining costs (AISC) in the short term, projected at $1,950-$2,250 per ounce for 2026, the company expects costs to improve significantly in the latter half of the year as production ramps up. This spending is the necessary foundation for Discovery's stated goal: to more than double gold production to over half a million ounces per year, establishing itself firmly in the ranks of leading mid-tier gold producers.