Q1 Earnings in Line; Well-Positioned to Fund Growth Initiatives

Research evidence excerpt

Q1 Earnings in Line; Well-Positioned to Fund Growth Initiatives

May 14, 2026 | 11:17 ET~

Discovery Silver

DSV-TSX Rating Price: May-13 Target ↑ Total Rtn Silver

Outperform $10.32 $12.50 21%

Kevin O'Halloran, CFA Analyst

kevin.ohalloran@bmo.com (416) 278-7023

Jacob Pinter Associate

Q1 Earnings in Line; Well-Positioned to Fund Growth jacob.pinter@bmo.com (437) 230-2798

Legal Entity: BMO Nesbitt Burns Inc.Initiatives

2YR Price Volume Chart

Bottom Line: 14

Discovery reported Q1 EPS of $0.10, in line with BMO and consensus estimates. Cash 12

costs of $1,417/oz aligned with our forecast, while sustaining costs of $2,041/oz beat 10 8

our $2,311/oz on lower sustaining capital. Cash flow was impacted by an $86.8M tax 6 5040

payment related to 2025; after adjusting this out, operating and free cash flow of 4 30

$129.8M and 62.7M were ahead of our $121M and $25M forecasts, respectively. We 2 10

continue to expect advancement of growth initiatives at Porcupine will add value, and 0 Nov May Nov May 0

reiterate our Outperform rating; target price increases to $12.50. LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

Company Data in C$

Key Points Dividend $0.00 Shares O/S (mm) 810.3

Earnings in line. Discovery reported EPS of $0.10, in line with BMO and consensus Yield 0.0% Market Cap (mm) $8,363

estimates. Revenue of $285M compared to our $292M forecast, while operating cost NAV US$8.74 P/NAV 0.9x

(including royalties) of $83M was below our $85M. Depreciation expense of $31.6M BMO Estimates in $

was below our $44.6M estimate, and offset slightly higher taxes, G&A, and exploration (FY-Dec.) 2025A 2026E 2027E 2028E

expenses compared to our estimates.

Revenue (mm) $653 $1,304↓ $1,376 $1,707

AISC beat our forecast. Cash costs at Porcupine averaged $1,417/oz, roughly in line