Discovery Mining Reports Record Revenue of $371.372 Million in the Third Quarter
Key Facts
Discovery Mining reported third-quarter 2026 results on November 10, posting revenue of $371.372 million and adjusted earnings of $0.10 per share. Chief Executive Tony Makuch said the period saw record gold production and sales, solid earnings and strong cash flow. The quarter included the first full period of results from Kidd operations, which the company acquired on June 1, 2026. Earnings before interest, taxes, depreciation and amortization were $181.4 million, up 49% year over year and 7% from the previous quarter. Makuch said cash rose 24% to $450.7 million on September 30. The results reflect revenue and production growth, alongside an expanded operating footprint after Kidd was included.
Revenue increased from $236.961 million in the third quarter of 2025 to $371.372 million, also exceeding the $319.094 million reported in the second quarter. Adjusted earnings per share rose from $0.08 a year earlier, but came in below $0.11 in the previous quarter. Third-quarter net earnings were $58.441 million, or $0.07 per share, compared with $42.439 million and $0.05 per share in the same period of 2025. In the first nine months of 2026, net earnings were $192.269 million, versus $41.521 million in the same period a year earlier. Earnings before interest, taxes, depreciation and amortization increased from $122.1 million a year earlier to $181.4 million, and from $170 million in the second quarter to the third-quarter level.
The company produced 70,564 ounces of gold in the third quarter, up 12% from the same period of 2025 and 5% from the second quarter of 2026. Sales totaled 71,200 ounces, compared with 69,004 ounces a year earlier and 66,068 ounces in the previous quarter. The increase in production and sales coincided with higher production costs per ounce year over year. Cash operating cost for gold was $1,470 per ounce sold, compared with $1,339 in the third quarter of 2025. All-in sustaining costs also rose to $2,293 per ounce, from $1,734 a year earlier. This puts record production growth alongside a notable increase in cost per ounce compared with the same period.
Operating activities generated $203.3 million in cash in the third quarter, compared with $153.5 million a year earlier and $74.0 million in the second quarter. Free cash flow was $86.9 million for the period. The company attributed the improvement in cash flow to a positive $56.5 million impact from working capital changes, compared with a negative $56.1 million impact in the second quarter. It said the shift reflected a return to normal payment timing after payments were accelerated in the previous quarter as part of the ERP system rollout. Cash was $450.7 million on September 30, up 24% from the previous quarter, while total liquidity reached $844.2 million. On June 30, the company had reported cash of $364.3 million and total liquidity of $607.8 million.
The company said its 2026 gold production guidance remains between 260,000 and 300,000 ounces, but it expects to finish the year at the upper end of its cash operating cost guidance range for gold. Cordero charges were updated after the project completed federal environmental permitting steps. The company received a land-use change permit on September 28, followed by environmental impact assessment approval on October 5. It plans to update the 2024 feasibility study's capital and cost estimates in the coming months. This provides a framework for tracking expected project spending alongside the path of operating costs and production for the rest of the year.