Discovery Silver (DSV:CA): Short-Term Pain, Long-Term Gain

Zinc mine nugget

bagi1998

Thesis

Discovery Silver (OTCQX:DSVSF) (TSX:DSV:CA) is an exploration stage company whose business model is based on acquiring and exploring mineral properties, which feature strong grades, meaningful size, and access to existing infrastructure in mining-friendly jurisdictions, primarily Mexico.

Parameter 2023 PFS 2021 PEA
After-Tax NPV@5% $1,153 MM $1,160 MM
Internal Rate of Return 28% 38.2%
Mine Life (Life of Mine) 18 years 16 years
Initial CAPEX $455 MM $368 MM
Payback period 4.2 years 2.0 years
Strip Ratio (waste: ore) 2.1:1 2.2:1
Average Annual AgEq production 33 Moz 26 Moz
Total LoM AgEq production 591 Moz 426 Moz
AISC (Years 1-12) $12.82/AgEq oz $11.73/AgEq oz
AISC – LoM $13.62/AgEq oz $12.35/AgEq oz

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