A newly cash-flowing Timmins gold consolidator using unhedged Canadian free cash flow to self-fund one of the world’s largest undeveloped silver projects—if Mexico permits cooperate.
Overview
Discovery Silver has undergone a rapid transformation from a single-asset, development-stage silver explorer into a profitable, dual-jurisdiction precious metals company anchored by Canadian gold cash flow and levered to Mexican silver upside. The April 2025 acquisition of Newmont’s Porcupine Complex in Timmins, Ontario, immediately repositioned the business as a meaningful mid-tier gold producer, generating $653.2M revenue in FY2025 (from mid-April close through year-end) on 173,229 oz sold at a $3,701/oz realized price. Production is sourced from a diversified set of operations—Hoyle Pond (high-grade underground), Borden (modern underground with long-haul logistics), and Pamour (open pit in pre-strip ramp). In March 2026, the company signed a definitive agreement to acquire Glencore’s Kidd Operations, framed as a strategic infrastructure acquisition designed to relieve processing constraints, reduce haul distances, and enable a clear path to >500koz/yr gold as new gold circuits are added at Kidd and Dome mill is repurposed to treat Dome-mine ore. While current free cash flow is entirely Canadian and gold-driven, the longer-term strategic anchor is the 100%-owned Cordero project in Chihuahua, Mexico—one of the world’s largest undeveloped silver assets (302Moz proven & probable reserves; 779Moz AgEq resource). The central equity narrative is “self-funding growth”: use unhedged Porcupine free cash flow to fund the ~$606M initial capex needed to build Cordero, avoiding the heavy dilution and expensive debt that typically burden developers, while eventually serving bullion markets with doré and (later) smelters with silver/zinc/lead concentrates.