Discovery Silver (DSV) AI Stock Analysis

• Market Cap: $1.99B
• Dividend Yield: N/A
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.21
• Revenue Growth: N/A
• EPS Growth: -26.88%
• Country: CA
• Employees: 35
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Silver
• EPS (TTM): -0.05
• Shares Outstanding: 796,183,700
• 10 Day Avg. Volume: 3,219,759
• 30 Day Avg. Volume: 2,434,942
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 59.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Discovery Silver's overall stock score reflects a mix of strong technical momentum and promising corporate developments countered by poor financial performance and challenging valuation metrics. The strategic acquisition of the Porcupine Complex enhances future growth prospects, but ongoing losses and cash flow issues remain key risks.

Discovery Silver Business Overview & Revenue Model

Company Description

Discovery Silver Corp., a mineral exploration company, engages in the exploration and development of polymetallic deposits. The company's flagship property is the Cordero silver project, which covers an area of approximately 35,000 hectares located in the Chihuahua state, Mexico. It also holds option agreement to purchase 100% interest in the Puerto Rico, La Kika, Minerva, Monclova, and Santa Rosa projects in Mexico. The company was formerly known as Discovery Metals Corp. and changed its name to Discovery Silver Corp. Discovery Silver Corp. was incorporated in 1986 and is headquartered in Toronto, Canada.

How the Company Makes Money

Discovery Silver generates revenue by exploring, developing, and eventually mining silver deposits, primarily from its Cordero project. The company invests in the exploration and evaluation of mineral properties to delineate substantial silver resources. Once these resources are confirmed and economically viable, Discovery Silver advances to the mining phase, where it extracts and sells silver to generate income. The company may also engage in strategic partnerships or joint ventures with other mining companies to share the costs and risks associated with large-scale mining operations. Revenue is further influenced by global silver prices, which can impact profitability significantly.

Discovery Silver Financial Statement Overview

Summary

Discovery Silver's financial performance is weak, characterized by no revenue and ongoing operational losses. Despite a strong equity position, the reliance on external financing due to negative cash flows is concerning for long-term viability.

Income Statement

Discovery Silver has consistently reported zero revenue, reflecting its current status as a pre-revenue company. The gross profit and net income are negative, highlighting ongoing operational losses. With no revenue growth and negative EBIT and EBITDA margins, the company faces significant profitability challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of approximately 91.1%, indicating low leverage. However, the consistent operating losses are eroding equity. The debt-to-equity ratio remains low, suggesting minimal financial risk from debt, but the lack of revenue generation poses significant risk to maintaining financial stability.

Cash Flow

Discovery Silver experiences negative operating and free cash flows, indicating that it is burning cash without generating inflows from operations. The free cash flow growth rate is negative, reflecting increased cash burn over time. The company relies heavily on financing activities to support its cash flow needs, which could pose sustainability issues if external funding becomes constrained.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-363.74K	-66.26K	-92.19K	-106.76K	-117.67K
	EBIT
-19.44M	-42.65M	-36.50M	-15.95M	-8.05M
	EBITDA
-15.37M	-40.80M	-35.27M	-17.64M	-9.53M
	Net Income Common Stockholders
-15.75M	-39.54M	-34.43M	-19.56M	-11.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.15M	46.74M	70.89M	82.88M	24.00M
	Total Assets
146.07M	91.58M	107.79M	111.56M	53.52M
	Total Debt
410.41K	549.80K	41.09K	87.87K	132.84K
	Net Debt
-58.53M	-45.67M	-54.71M	-67.46M	-23.82M
	Total Liabilities
16.64M	2.43M	1.70M	1.02M	804.47K
	Stockholders Equity
129.42M	89.16M	106.09M	110.54M	52.71M
Cash Flow		Free Cash Flow
-35.37M	-39.51M	-37.32M	-16.18M	-7.97M
	Operating Cash Flow
-1.53M	-39.11M	-31.43M	-15.89M	-7.25M
	Investing Cash Flow
-33.76M	14.59M	-5.89M	-15.06M	-528.44K
	Financing Cash Flow
48.85M	14.48M	24.22M	74.55M	27.08M

Discovery Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DSV, the sentiment is Positive. The current price of 2.5 is above the 20-day moving average (MA) of 2.42, above the 50-day MA of 2.07, and above the 200-day MA of 1.20, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 40.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DSV.

Discovery Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$1.93B	-1.47	-21.02%	3.74%	0.80%	-29.57%
DSV	48 Neutral	$1.99B	―	-17.23%	―	―	-26.88%

Discovery Silver Corporate Events

Discovery Silver Corp. Strengthens Executive Team with Strategic Appointments

Discovery Silver Corp. has announced key management appointments, including Pierre Rocque as Chief Operating Officer and Jennifer Wagner as Executive Vice President, Corporate Affairs and Sustainability. These appointments, effective immediately, bring experienced professionals from the mining industry to the executive team, aiming to advance the company’s operations, particularly following the recent acquisition of the Porcupine Complex. The new team members have a proven track record from their previous roles at Kirkland Lake Gold, where they significantly increased gold production, indicating a positive impact on Discovery’s future growth and industry positioning.

Spark’s Take on TSE:DSV Stock

According to Spark, TipRanks’ AI Analyst, TSE:DSV is a Neutral.

Discovery Silver’s stock score reflects a mix of strong technical indicators and promising corporate events offset by poor financial performance and challenging valuation metrics. The acquisition of the Porcupine Complex enhances its growth outlook, but ongoing losses and cash flow issues remain key risks.

To see Spark’s full report on TSE:DSV stock, click here.

Discovery Silver Completes Acquisition of Porcupine Complex, Boosting Gold Production

Discovery Silver Corp. has completed its acquisition of Newmont Corporation’s Porcupine Complex, positioning itself as a new Canadian-based gold producer. This acquisition enhances Discovery’s gold production capabilities in the prolific Timmins mining camp and adds substantial mineral resources with exploration potential. The company plans to leverage its increased financial strength, following a $575 million financing package, to invest in the Porcupine assets, aiming to grow production, extend mine life, and lower costs. Discovery’s strategic focus is on re-establishing Porcupine as a Tier 1 asset in the global gold industry, supported by a strong balance sheet and a commitment to responsible mining practices.

Spark’s Take on TSE:DSV Stock

According to Spark, TipRanks’ AI Analyst, TSE:DSV is a Neutral.

Discovery Silver’s score is driven by strong technical momentum and promising corporate events, offset by poor financial performance and challenging valuation metrics. The strategic acquisition of Porcupine Complex enhances its growth outlook, but ongoing losses and cash flow issues remain key risks.

To see Spark’s full report on TSE:DSV stock, click here.

Discovery Silver Gains Shareholder Approval for Strategic Acquisition

Discovery Silver Corp. has received overwhelming shareholder approval for the issuance of shares related to its acquisition of Newmont Corporation’s Porcupine Complex. This strategic acquisition, expected to close in the first half of 2025, will significantly enhance Discovery’s operational footprint in the gold sector, transforming it into a prominent gold producer with substantial growth potential in the renowned Timmins gold camp.

Discovery Silver Reports Transformative Year with Cordero Progress and Porcupine Acquisition

Discovery Silver Corp. reported its financial results for Q4 and FY 2024, highlighting a transformative year as it aims to become a major North American precious metals producer. The company has made significant progress on its Cordero project in Mexico, a leading silver development project, and is optimistic about advancing towards construction by the end of the year. Additionally, Discovery is set to acquire Newmont Corporation’s Porcupine Complex, transforming it into a new Canadian gold producer with multiple operations and substantial growth potential. This acquisition, along with a US$575 million financing package, positions Discovery for significant leverage in gold and silver markets and improved financial strength.

Discovery Silver to Discuss Strategic Acquisition in Investor Presentation

Discovery Silver Corp. is set to host an investor presentation on March 3, 2025, to discuss its acquisition of the Porcupine Complex in Ontario, which marks a significant step in becoming a leading North American precious metals company. This acquisition, combined with their existing Cordero project, is expected to enhance their market position by expanding their gold production capabilities and providing substantial growth and exploration opportunities.

Discovery Silver Secures C$247.5 Million Through Public Offering

Discovery Silver Corp. has successfully completed a C$247.5 million public offering of subscription receipts, signaling strong investor confidence in its recent acquisition of Newmont Corporation’s Porcupine Complex in Ontario. This acquisition is set to establish Discovery as a new Canadian gold producer, enhancing its operational capacity with a diversified portfolio and strengthening its financial position for future growth, particularly with its significant projects in Canada and Mexico.