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Discovery Silver
(TSX:DSV)
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Rating:71Outperform
Price Target:
C$14.50
▲(14.53% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong current financial performance (high margins, improving scale, and solid operating cash flow) and supportive technical momentum (price above key moving averages with positive MACD). These positives are tempered by weaker free-cash-flow conversion and near-term cash/capex pressures discussed on the earnings call, plus a relatively expensive valuation (P/E ~28 and no dividend yield support).
Positive Factors
Recent profitability and scale
The sharp improvement in revenue, margins, and operating cash flow indicates meaningful operating scale and stronger earnings quality. If maintained, this enlarged financial base can support ongoing investment, improve resilience, and provide a foundation for compounding production and cash generation.
Negative Factors
Weak free-cash-flow conversion
Although operating cash flow is strong, much of it is being absorbed by capital spending or working-capital needs rather than converting into free cash flow. Persistently weak conversion would reduce internally funded growth capacity and make the ambitious development program more dependent on liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Recent profitability and scale
The sharp improvement in revenue, margins, and operating cash flow indicates meaningful operating scale and stronger earnings quality. If maintained, this enlarged financial base can support ongoing investment, improve resilience, and provide a foundation for compounding production and cash generation.
Read all positive factors
Discovery Silver (DSV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.68B
Dividend YieldN/A
Average Volume (3M)2.46M
Price to Earnings (P/E)27.5
Beta (1Y)3.23
Revenue Growth683.86%
EPS GrowthN/A
CountryCA
Employees968
SectorBasic Materials
Sector Strength58
IndustrySilver
Share Statistics
EPS (TTM)0.35
Shares Outstanding814,117,070
10 Day Avg. Volume2,597,431
30 Day Avg. Volume2,458,627
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)9.20
Price to Sales (P/S)6.32
P/FCF Ratio32.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.50Price Target Upside6.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.43
Revenue Forecast (FY)C$1.31B
Discovery Silver Business Overview & Revenue Model
Company Description
Discovery Silver Corp. is a company primarily engaged in the exploration and development of polymetallic mineral deposits. Its flagship asset is the Cordero silver project, an extensive holding situated in Mexico's Chihuahua state. This significan...
How the Company Makes Money
Discovery Silver’s ability to generate revenue depends on whether it has operating mines in production; specific, current production/revenue details are not available in the provided context, so the company’s exact active revenue streams cannot be...
Discovery Silver Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call highlights a strong operational quarter with record revenue, record gold production, materially higher mill throughput, significant exploration success and the strategic acquisition of Kidd—supported by a robust liquidity position. Offsetting these positives are near-term cash timing effects (notably a one-month Kidd remittance lag), elevated sustaining and growth capital spending that increased AISC and produced a small free cash outflow this quarter, and typical forward-looking execution and permitting risks. Management communicates clear operational momentum and a plan to invest for growth, with expectations that costs will improve in H2 and that 2026 guidance will be met.Positive Updates
Record Revenue and Quarterly Growth
Revenue of $319 million in Q2 2026, a 12% increase quarter-over-quarter and the fourth consecutive quarter of revenue growth; Kidd operations contributed ~$30 million to Q2 revenue after closing on June 1.
Negative Updates
Negative Free Cash Flow This Quarter
Free cash outflow of $11 million in Q2, driven by ramped capital spending ($86M in Q2) and $56 million of working capital changes (including accelerated AP payments tied to ERP implementation).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Quarterly Growth
Revenue of $319 million in Q2 2026, a 12% increase quarter-over-quarter and the fourth consecutive quarter of revenue growth; Kidd operations contributed ~$30 million to Q2 revenue after closing on June 1.
Read all positive updates
Company Guidance
The company said it is tracking well to achieve its 2026 guidance and reiterated detailed financial and operational targets: Q2 delivered record gold production of 67,300 oz (12% above Q1) with ~66,000 oz mined and sold, 904,000 t milled (up ~30% QoQ) with >11,000 tpd on 49 days and >12,000 tpd on 11 days, 1.1 million t mined in the quarter and 14 million t in stockpiles; Q2 revenue was $319M (Kidd contributed ~$30M), EBITDA was $170M, adjusted earnings $92.3M ($0.11/share), operating cash flow ~$130M and free cash outflow $11M (impacted by $56M working‑capital timing). Unit‑costs were discussed as highest in H1 and expected to improve in H2: company cash cost was $1,387/oz sold and AISC $2,154/oz sold (site‑level cash cost $1,878/oz; site AISC $2,028/oz); milling cost $21.50/t (14% better QoQ). Q2 capex was $86M; the year’s capital plan includes growth capital of $195–235M (including $25–35M capitalized exploration) and sustaining capital of $120–165M. Management reiterated growth ambitions — targeting >0.5M ozpa over the next 3–5 years (ex‑Cordero), potential +40,000 ozpa from the C circuit, Pamour redevelopment beyond the prior ~150,000 ozpa profile, and Dome potential >200,000 ozpa — and noted liquidity of $364M cash and total post‑quarter liquidity >$750M (RCF upsized to $400M).Discovery Silver Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.30B | 912.73M | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 604.89M | 389.93M | -379.06K | -363.74K | -289.34K | -191.75K |
| EBITDA | 659.81M | 377.94M | -20.40M | -15.37M | -40.80M | -35.27M |
| Net Income | 280.62M | 149.24M | -20.90M | -15.75M | -41.10M | -35.47M |
Balance Sheet | ||||||
| Total Assets | 2.39B | 1.79B | 85.39M | 109.98M | 68.25M | 84.53M |
| Cash, Cash Equivalents and Short-Term Investments | 363.70M | 409.92M | 20.60M | 44.63M | 34.84M | 55.59M |
| Total Debt | 83.35M | 6.59M | 1.02M | 309.01K | 409.75K | 32.22K |
| Total Liabilities | 1.66B | 1.17B | 7.57M | 12.53M | 1.81M | 1.34M |
| Stockholders Equity | 728.31M | 626.34M | 77.82M | 97.44M | 66.45M | 83.20M |
Cash Flow | ||||||
| Free Cash Flow | 155.33M | 175.21M | -21.25M | -26.63M | -29.45M | -29.27M |
| Operating Cash Flow | 494.07M | 384.34M | -14.42M | -1.15M | -29.14M | -24.65M |
| Investing Cash Flow | -350.66M | -465.73M | -6.83M | -25.42M | 10.87M | -4.62M |
| Financing Cash Flow | -5.45M | 475.57M | 715.14K | 36.78M | 10.79M | 18.99M |
Discovery Silver Technical Analysis
Positive
12.66
Price Trends
10.08
Positive
9.45
Positive
9.28
Positive
Market Momentum
0.84
Negative
66.45
Neutral
78.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DSV, the sentiment is Positive. The current price of 12.66 is above the 20-day moving average (MA) of 11.99, above the 50-day MA of 10.08, and above the 200-day MA of 9.28, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 78.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DSV.
Discovery Silver Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
89 Outperform | C$5.76B | 37.05 | 25.26% | ― | 264.86% | ― | |
81 Outperform | C$5.05B | 9.93 | 22.20% | ― | 6.47% | 126.03% | |
73 Outperform | C$14.28B | 29.69 | 12.27% | 0.22% | 96.21% | ― | |
72 Outperform | C$29.45B | 15.51 | 19.51% | 1.33% | 37.01% | 127.34% | |
71 Outperform | C$10.68B | 27.46 | 43.47% | ― | 683.86% | ― | |
71 Outperform | C$3.81B | 94.76 | 3.54% | 0.20% | 59.20% | -44.71% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:DSV
Discovery Silver
13.12
8.64
192.86%
TSE:AG
First Majestic Silver
28.97
15.94
122.37%
TSE:FVI
Fortuna Mining Corp
17.05
6.23
57.58%
TSE:PAAS
Pan American Silver
71.04
22.29
45.71%
TSE:SVM
Silvercorp Metals
17.22
10.36
150.98%
TSE:AYA
Aya Gold & Silver
39.97
24.88
164.88%
Discovery Silver Corporate Events
Business Operations and Strategy
Discovery Mining Extends High-Grade Gold Zones at Borden Mine
Positive
Aug 10, 2026
Discovery Mining reported strong exploration results from 21 new drill holes at its Borden Mine, part of a 255,000–285,000 metre program aimed at converting and expanding resources in the Main and East Lower zones. Underground drilling deliv...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.