Q2 revenue hit $319.1M, adjusted earnings rose to $92.3M, Kidd added one month of output. Guidance is back-half weighted; the Pamour ramp is the swing factor.
Discovery Mining Ltd. (TSX: DSV, OTCQX: DSVSF) reported record second-quarter revenue of $319.1 million, more than double the year-earlier total, and said gold production rose 33%. The quarter included one month of output from the Kidd operations, acquired June 1.
Production totaled 67,309 ounces, up 33% from Q2 2025 and 12% from Q1 2026. Gold sold reached 66,068 ounces versus 42,550 in the year-ago quarter and 59,445 in the first quarter.
Net earnings came in at $52.1 million, or $0.06 a share, against $5.5 million, or $0.01, a year earlier. Adjusted net earnings reached $92.3 million, or $0.11 a share, versus $28.4 million, or $0.04. Reported net earnings stepped down from $81.7 million, or $0.10 a share, in Q1 2026; adjusted earnings rose from $82.7 million in the prior quarter.
"Q2 2026 was a pivotal quarter as we work to substantially grow gold production in Timmins."
Tony Makuch, chief executive, said in the company's earnings release.
Makuch said the company accelerated investment programs to lift output and cut costs. Capital spending reached $86.4 million, nearly double the $44.2 million spent in Q2 2025 and above the $69.9 million from Q1 2026. Outlays went to tailings expansion and improvement along with higher throughput and lower costs at Hoyle Pond and Borden. The remainder is earmarked for advancing Pamour toward commercial production.
Unit costs stayed inside guidance. Operating cash costs ran $1,387 an ounce sold, within the company's $1,250–$1,400 range for the year. All-in sustaining costs, the measure that adds sustaining capital to mine-level expenses, came to $2,154 an ounce against a full-year band of $1,950–$2,250.
Kidd's single month of output lands in the quarter; the asset's full contribution shows up from the third quarter on. The company said the acquisition significantly increases processing capacity and provides exposure to critical minerals. Kidd also brought land and infrastructure, with exploration upside across the Timmins camp.
Discovery kept its 2026 guidance unchanged and said it remains on track. Production of 260,000–300,000 ounces is expected, with operating cash costs of $1,250–$1,400 an ounce and all-in sustaining costs of $1,950–$2,250. Sustaining capital sits at $120 million–$165 million and growth capital at $195 million–$235 million.
The second quarter came in 12% above the first, which puts first-half output near 127,000 ounces. Reaching the low end of the production range needs roughly 133,000 ounces over the final two quarters; the top end calls for 173,000. The back half carries the heavier output, and Pamour is the swing factor in that schedule.
Liquidity of $607.8 million at June 30, including $364.3 million of cash, funds the program. The company has since increased its revolving credit facility to $400 million and extended the maturity to July 30, 2030.
Makuch called the post-quarter drill results at Pamour "very important." The company said those results confirm a large-scale deposit extending over a 4 km strike length, still open in several directions and to depth, with substantial growth potential.
Recent drilling also extended the Main Zone at Borden by more than half a kilometre. The company continues to confirm and expand known mineralization at Dome and TVZ. Owl Creek runs in the same near-mine program.
Discovery's next report covers the third quarter, the first full period since the Kidd acquisition.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.