Discovery Silver Reaffirmed Buy on Strong Q1 Execution, Cost Control, and Growth Upside at Porcupine and Cordero

Kevin O’Halloran, an analyst from BMO Capital, reiterated the Buy rating on Discovery Silver. The associated price target is C$12.50.

Kevin O’Halloran has given his Buy rating due to a combination of factors, including solid first-quarter financial performance and disciplined cost control at the Porcupine operation. Earnings and cash costs closely matched expectations, while all-in sustaining costs came in better than forecast, reflecting lower-than-anticipated sustaining capital requirements and supporting stronger-than-modeled underlying free cash flow once a one-time tax payment is adjusted out.

He also highlights Discovery Silver’s strong balance sheet and liquidity, which should comfortably support ongoing growth and exploration spending at Porcupine. In addition, the long-life production profile at Porcupine, the strategic acquisition of the Kidd Creek assets, and the significant upside potential from the large Cordero silver project in Mexico underpin his view that the shares can re-rate higher as execution continues to improve.

According to TipRanks, O’Halloran is a top 25 analyst with an average return of 71.3% and an 89.94% success rate. O’Halloran covers the Basic Materials sector, focusing on stocks such as First Majestic Silver, SSR Mining, and Coeur Mining.