11:31 AM EDT, 08/12/2025 (MT Newswires) -- (Adds comment and updates shares.)

Discovery Silver ( DSVSF ) was last seen up 6.3% on Tuesday after the company said it swung to a profit in the second quarter, driven by the company's April acquisition of the Porcupine mine in Ontario.

The company said it earned US$5.5 million, or US$0.01 per share, improving from a loss of US$5.1 million, or US$0.01, in the year-prior period.

Adjusted earnings stood at US$28.4 million, or US$0.04 per share, compared to a loss of US$2.1 million, or a loss of US$0.01 per share, recorded in the previous year.

Revenue was US$142.0 million while gold production totaled 50,552 ounces.

"Q2 2025 was Discovery's first quarter as a Canadian gold producer," chief executive Tony Makuch said. "During the quarter, we integrated systems, strengthened management structures and began implementing investment programs at Porcupine aimed at improving existing operations and pursuing growth opportunities."

The company said it aims to increase production levels in the final two quarters of the year while ramping up capital investment and exploration programs at Porcupine.

National Bank of Canada kept its outperform rating and $4.50 price target for Discovery in place following the release.

The bank said the rating considers the embedded potential of the Porcupine project to deliver significant free cash flows to fund growth and expansion opportunities across Discovery Silver's ( DSVSF ) portfolio.

The target price was based on 5.0x EV/EBITDA 2026 (50%) and 0.80x P/NAV (50%), which is comparable to intermediate peers in National Bank's coverage. It also balances the company's near-term performance, with the medium-term growth trajectory and optionality on the Cordero project.

Discovery Silver ( DSVSF ) shares were last seen up $0.21 to $3.90 on the Toronto Stock Exchange.

Price: 3.92, Change: +0.25, Percent Change: +6.81