One-glance verdict
Overvalued
$4.48 our estimate vs market $8.32
86% above our estimate, beyond the bull case
Fundamentals snapshot
Discovery Mining Ltd.
DSVSF · OQX · Basic Materials · Silver
Current price
$8.32
52-week range
$3.25 - $9.79
Market cap
$6.77B
Balance sheet
Healthy
4.95x Stretched
Net cash $355.09M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
- Reward Returns 39.2% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 1/10 years.
What this company does
Discovery Mining Ltd.
Discovery Mining Ltd. is a company that finds and digs up valuable metals, primarily focusing on exploring for silver, gold, zinc, and copper. It makes money mainly by producing and selling the gold it finds. Because the company's income is tied to selling these resources, its financial success often depends on the fluctuating worldwide prices for precious metals.
How the company got here
Founded in 1986, the company operated for many years as an exploration company, meaning its main business was searching for new deposits of metals. A major turning point was its focus on the Cordero project in Mexico, which is one of the world's largest undeveloped silver deposits. More recently, the company transformed itself by acquiring gold-producing mines in Canada, shifting from just exploring for metals to actively mining and selling them. This led to its name change from Discovery Silver Corp. to Discovery Mining Ltd. in June 2026 to reflect its broader focus on both silver and gold.
What it actually does
Discovery Mining is a precious metals company that finds, mines, and prepares metals for sale. Think of them as a business that unearths valuable raw materials—specifically silver, gold, copper, and zinc—from the ground. These metals are then sold on global markets to be used in things like jewelry, electronics, and industrial applications. The company has projects in two main countries: a massive silver deposit it is developing in Mexico and several active gold mines in Canada.
Cordero Project (Silver Development)
This is the company's massive silver project in Chihuahua, Mexico, and it represents the company's future growth in silver. It's currently in the development stage, which means the company is working on getting all the necessary permits and plans in place before it can start full-scale mining. The main goal here is to eventually build a large mine to extract silver, as well as other metals like zinc and lead, from one of the world's biggest known silver deposits. This part of the business doesn't generate significant revenue yet, but it holds a huge amount of potential value for the company's future.
Porcupine Operations (Gold Production)
This is the company's active gold mining business located in Timmins, a famous gold-mining region in Ontario, Canada. Unlike the Cordero project, these mines are already operating and producing gold, which the company sells to generate revenue right now. This segment includes several mines and a processing facility where the gold is separated from the rock. The acquisition of these operations was a major shift, turning Discovery into a company that both produces gold and develops silver projects.
Kidd Operations (Infrastructure and Critical Minerals)
Acquired in June 2026, this segment consists of a mine and a large processing facility, also near Timmins, Ontario. This purchase provides crucial infrastructure (the physical and organizational structures needed for an operation) to support and expand the company's gold production from its Porcupine Operations. It also adds what are known as critical minerals, like copper and zinc, to the company's production profile. This part of the business helps make the gold operations more efficient and adds revenue from other important industrial metals.
What management is betting on now
Management's strategy is focused on two main goals: growing its current gold business and advancing its future silver business. For the gold operations in Canada, the company is investing heavily in expanding production, aiming to more than double its annual gold output by improving its existing mines and facilities. For the Cordero silver project in Mexico, the key priority is to secure all the final permits and financing (the process of raising money for a large project) needed to build the mine. The overall bet is that by having both a cash-generating gold business today and a massive silver project for tomorrow, the company can create significant long-term value.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $4.48 vs current price $8.32
Our most-likely fair value is $4.48 a share — about 46.2% below today's price of $8.32, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $355.1M - more cash than debt. Interest coverage 5.0x.
Net debt
$-355.09M
Interest coverage
4.95x
Discovery Mining Ltd.'s profit covers its interest bill about 5.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
DSVSF
BASELINE
Discovery Mining Ltd.
Total debt $9.20M Interest coverage 4.95x This is the baseline the peer rows are being compared against.
Total debt $841.00M Interest coverage 20.69x +318% vs DSVSF Carries about 4.2x more debt cushion than DSVSF.
Total debt $331.15M Interest coverage 23.64x +378% vs DSVSF Carries about 4.8x more debt cushion than DSVSF.
Total debt $21.48M Interest coverage 12.91x +161% vs DSVSF Carries about 2.6x more debt cushion than DSVSF.
Total debt $713.16M Interest coverage 27.14x +448% vs DSVSF Carries about 5.5x more debt cushion than DSVSF.
Total debt $248.20M Interest coverage 6.11x +23% vs DSVSF Carries about 1.2x more debt cushion than DSVSF.
What you should know
The case for and against DSVSF
2 Rewards
0 Risks
Rewards
-
Returns 39.2% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.84x
Forward P/E
—
P/B
9.29x
P/S
6.07x
EV/EBITDA
9.77x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
66.9%
Operating margin
40.7%
Net margin
21.7%
ROE
39.2%
ROA
15.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
1.96x
Quick ratio
1.52x
Total debt
$9.20M
Total cash
$364.29M
Growth
How the business has been compounding
Revenue TTM
$1.12B
Revenue 5Y CAGR
—
EPS TTM
0.31
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$377.72M
Free CF TTM
$172.19M
FCF margin
15.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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