2. Refers to all-in sustaining costs per ounce sold.
1. Example of Non-GAAP measure. See the section in this press release entitled, “NON-GAAP
MEASURES” for more information.
2. Refers to all-in sustaining costs per ounce sold.
3. Site-level AISC includes corporate G&A allocation and excludes remaining corporate G&A,
share-based compensation costs and corporate-level sustaining capital expenditures.
DISCOVERY REPORTS STRONG EARNINGS
GROWTH AND CASH GENERATION IN
Q4 2025
Cash of $410.7 million at December 31, 2025
February 19, 2026, Toronto, Ontario – Discovery Silver Corp. (TSX: DSV,
OTCQX: DSVSF) (“ Discovery” or the “ Company”) today announced the
Company’s financial and operating results for the fourth quarter ( “Q4
2025”) and full year of 2025 (“FY 2025”). Discovery began reporting the
results of gold production and sales following the Company’s acquisition
(“Acquisition” or “ Porcupine Acquisition ”) of the Porcupine Complex
(“Porcupine”) in and near Timmins, Ontario on April 15, 2025. The
Company’s full financial statements and management discussion &
analysis are available on SEDAR+ at www.sedarplus.ca and on the
Company’s website at www.discoverysilver.com. All dollar amounts are in
US dollars, unless otherwise noted.
Tony Makuch, Discovery’s CEO, commented: “We have built considerable
momentum since acquiring Porcupine last April, with production in Q4
2025 totaling 66,718 ounces and operating cash costs improving to
$1,185/oz. AISC has remained relatively unchanged as we have increased
sustaining capital expenditures to provide needed investment for the
Porcupine operations to achieve their full value potential. Our solid
operating performance, in combination with higher gold pr ices, ha s
resulted in improved profitability and substantial cash flow genera tion.
We ended 2025 with a very strong financial position, with cash totaling
$410.7 million and no debt.
“Another key area of accomplishment has been exploration. Last week,
we reported excellent drilling results across our key Porcupine targets,
including additional high -grade intersections from resource conversion
and extension drilling at Hoyle Pond, Borden and Pamour; district drilling
success at Owl Creek, as well as at the new Broulan target near Pamour;
and very encouraging initial drilling results from our two key near-term
growth projects, Dome and TVZ.
“Looking ahead, we issued our 2026 guidance today with our Q4 2025
results. The guidance includes significant production growth, reflecting
higher output at Hoyle Pond and Borden, as well as increased production
from open pit sources, including both Pamour and Hollinger, where we
are currently resuming operations. Unit costs will be near the top of the
target ranges in the first half of the year and improve significantly over
the final six mont hs as production levels increase, sustaining capital
declines and we benefit from our investments in equipment,
development and infrastructure at our operations . We will also be
investing $55 – $75 million in exploration, which is a direct result of the
success we are achieving and the tremendous upside we see at all our
Porcupine operations and projects.”
75% INCREASE IN ADJUSTED EPS
Net earnings $65.3M or $0. 08/share, with
adjusted net earnings1 of $113.5M or $0.14/share
versus $61.1M or $0.08/share in Q3 2025
6% GROWTH IN GOLD PRODUCTION
66,718 oz produced versus 63,154 oz in Q3 2025
12% IMPROVEMENT IN OPERATING CASH COSTS
Operating cash costs1 of $1,185/oz sold compared
to $1,339/oz in Q3 2025
AISC REFLECTS HIGHER SUSTAINING CAPITAL1
AISC/oz1,2 averaged $2,034; Site-level AISC/oz3
averaged $1,824
INVESTING TO IMPROVE AND GROW PORCUPINE
Sustaining capital expenditures 1 of $33.8M, with
growth capital expenditures 1 of $66.1M versus
$20.8M and $44.4M, respectively, in Q3 2025
STRONG CASH FLOW FROM GOLD SALES
Net cash from operating activities of $163.2M; Free
cash flow1 of $67.9M
20% GROWTH IN CASH POSITION
Cash at December 31, 2025, of $410.7M, with
$250M of liquidity from an undrawn revolving
credit facility and $100M accordion feature
EXPLORATION SUCCESS AT ALL TARGETS
Excellent drill results from resource conversion
and expansion drilling at Hoyle Pond, Borden and
Pamour, continued success at Owl Creek, and
encourage initial results from Dome , TVZ and
Broulan Pit
2026 GUIDANCE INCLUDES SOLID PRODUCTION
GROWTH, INVESTMENTS FOR THE FUTURE
2026 guidance includes back half weighted
production of 260 – 300 koz; operating cash
costs/oz of $1,250 – $1,400, AISC/oz of $1,950 –
$2,250; front half weighted sustaining capital
expenditures of $ 120M – $165M and growth
capital expenditures of $195M – $235M
NEWS RELEASE
2
SUMMARY OF Q4 AND FY 2025 PERFORMANCE
Three months ended Year ended
(in $ thousands except per share amounts)
December 31,
2025
December 31,
2024
September 30,
2025
December 31,
2025
December 31,
2024
Revenue 274,242 — 236,961 653,213 —
Production costs 73,814 — 106,807 235,540 —
Earnings (loss) before income taxes 60,349 (5,663) 71,114 149,521 (15,167)
Net earnings (loss) 65,289 (5,663) 42,439 106,810 (15,167)
Basic earnings (loss) per share 0.08 (0.01) 0.05 0.16 (0.04)
Diluted earnings (loss) per share 0.08 (0.01) 0.05 0.15 (0.04)
Cash flow from (used in) operating activities 163,231 (2,937) 153,488 377,723 (15,141)
Cash investment on mine development and
PPE (95,324) 479 (66,675) (205,532) (7,245)
Three months ended Year ended
December 31,
2025
December 31,
2024
September 30,
2025
December 31,
2025
December 31,
2024
Tonnes milled 892,818 — 808,688 2,210,297 —
Average Grade (g/t Au) 2.58 — 2.69 2.80 —
Recovery (%) 90.2 % — 90.3 % 90.5 % —
Gold produced (oz) 66,718 — 63,154 180,424 —
Gold sold (oz)(1) 64,479 — 66,200 173,229 —
Average realized price ($/oz sold)(2) $ 4,157 $ — $ 3,489 $ 3,701 $ —
Operating cash costs per ounce sold ($/oz
sold)(2) $ 1,185 $ — $ 1,339 $ 1,267 $ —
AISC per ounce sold ($/oz sold)(2)(3) $ 2,034 $ — $ 1,734 $ 1,925 $ —
Adjusted net earnings(2) $ 113,495 $ (4,320) $ 61,090 $ 199,974 $ (10,736)
Adjusted net earnings per share(2) $ 0.14 $ (0.01) $ 0.08 $ 0.29 $ (0.03)
Free cash flow(2) $ 67,907 $ (2,458) $ 86,813 $ 172,191 $ (22,386)
(1) The difference between ounces produced and ounces sold largely reflects the delivery of in-kind ounces under the Franco-Nevada royalty
arrangement.
(2) Example of Non-GAAP measure. See the section in this press release entitled, “NON-GAAP MEASURES” for more information.
(3) 2025 results exclude G&A expense, share-based compensation costs and sustaining capital expenditures and lease expense incurred
prior to April 15, 2025, the completion date of the Porcupine Acquisition.
Q4 2025
• Revenue in Q4 2025 increased 16% from the previous quarter to $274.2 million, reflecting gold sales of
64,479 ounces and an average realized gold price1 of $4,157 per ounce.
• Net earnings totaled $65.3 million, or $0.08 per basic share compared to net loss of $5.7 million, or $0.01
per basic share, in Q4 2024 and net earnings of $42.4 million, or $0.05 per basic share, in Q3 2025.
• Adjusted net earnings1 totaled $113.5 million, $0.14 per basic share, which compared to net loss of $4.3
million, or $0.01 per basic share, in Q4 2024, and adjusted net earnings of $61.1 million, or $0.08 per basic
share, the previous quarter; Adjusted net earnings in Q4 2025 differed from net earnings due mainly to
the exclusion from adjusted net earnings of a one-time $45.0 million reclamation expense for non -
operating mine sites, a $10.9 million expense related to shares issued for the Taykwa Tagamou Nation
(“TTN”) Resource Development Agreement (see Discovery press release dated October 21, 2025 for more
3
information), $4.0 million of foreign exchange losses, $3.0 million related to a transaction services
agreement (“TSA”) with Newmont Corporation, and $2.2 million of purchase price allocation adjustments.
• EBITDA1,2 of $126.0 million compared to a loss before interest, taxes and depreciation and amortization
of $5.6 million in Q4 2024 and EBITDA of $122.5 million in Q3 2025; EBITDA increased from the previous
quarter as the favourable impact of higher revenue and lower production costs more than offset the
reduction from a one-time $45.0 million reclamation expense related to non-operating mine sites due to
a one-time accounting remeasurement.
• Solid operating performance in Q4 2025:
o Production of 66,718 ounces increased 6% from the previous quarter.
o Gold sales of 64,479 ounces versus 66,200 ounces in Q3 2025.
o Production costs of $73.8 million compared to $106.8 million the previous quarter, with the
reduction largely due to reduced PPA adjustments and lower costs related to inventory
changes compared to the previous quarter.
o Operating cash costs1 improved 12% to $1,185 per ounce sold compared to $1,339 per ounce
sold in Q3 2025, largely reflecting changes in inventories.
o AISC1 averaged $2,034 per ounce sold compared to $1,734 per ounce sold the previous
quarter, with the increase largely resulting from higher sustaining capital expenditures, as
the Company invested in new mobile equipment , capital development and improving
infrastructure at Hoyle Pond and Borden, and in buttressing the No. 6 tailings management
area (“ TMA6”), as well as increased Corporate G&A expense ; Site-level AISC in Q 4 2025
averaged $1,824 per ounce sold versus $1,699 per ounce sold in Q3 2025.
• Cash flows included net cash from operating activities of $163.2 million, which compared to net cash used
in operating activities of $2.9 million in Q4 2024 and net cash from operating activities of $ 153.5 million
the previous quarter.
• Free cash flow1 totaled $67.9 million versus free cash flow of ($2.5) million in Q4 2024 and $86.8 million
in Q2 2025 , with the change from Q3 2025 mainly reflecting progress in ramping up the Company’s
investment programs.
• Capital expenditures1 in Q4 2025 totaled $99.9 million, with an additional $ 5.9 million of leases. Of the
$99.1 million, $33.8 million related to sustaining capital expenditures 1, while $66.1 million were growth
capital expenditures 1. Growth capital expenditures primarily related to pre -stripping at Pamour and
longer-term investments at the TMA6.
• Cash at December 31, 2025, totaled $410.7 million compared to $ 341.5 million at September 30, 2025,
with the increase in cash mainly resulting from the $ 67.9 million of free cash flow generated during Q4
2025.
• Working capital1 at December 31, 2025 totaled $242.2 million as compared to working capital of $17.0
million at December 31, 2024 and $ 224.2 million at September 30, 2025. The Growth in working capital
in Q4 2025 resulted from the increase in cash, partially offset by higher current taxes payable and increases
in accounts payable and accrued liabilities compared to September 30, 2025. The Company’s current taxes
payable at December 31, 2025, totaled $85.1 million, which will be paid in Q1 2026.
4
(1) Represents cash capital expenditures incurred during Q4 2025
FY 2025
Discovery did not generate revenue or earnings from mine operations in FY 2024 or Q1 2025.
• Gold prod uction from April 16, 2025 to December 31, 2025 totaled 180,424 ounces, while gold sales
totaled 173,229 ounces. Revenue of $653.2 million resulted from gold sales and an average realized price
of $3,701 per ounce. Production costs totaled $ 238.5 million. Operating cash costs averag ed $1,267 per
ounce sold, while AISC per ounce sold averaged $1, 925. The difference between ounces produced and
ounces sold largely reflects the delivery of in -kind ounces related to the Franco -Nevada royalty
arrangement.
• EBITDA was $297.0 million versus a loss before interest, taxes and depreciation and amortization of $15.1
million in FY 2024, with earnings generated following the Porcupine Acquisition in FY 2025 mainly
accounting for the significant improvement in EBITDA performance.
• Net earnings totaled $106.8 million, or $0. 16 per basic share, versus net loss of $ 15.2 million, or $0.0 4
per basic share, in FY 2024, with the prior year net loss largely resulting from corporate G&A costs, share-
based compensation expense and foreign exchange losses during FY 2024.
• Weighted average basic shares outstanding were 687.8 million shares versus 398.4 million shares for the
same period a year earlier, with the increase mainly due to the impact of the 401.8 million shares issued
during Q2 2025 in relation to the Porcupine Acquisition and related financing package.
• Adjusted net earnings were $200.0 million, or $0.2 9 per basic share compared to adjusted net loss of
$10.7 million, or $0.03 per basic share, in FY 2024. The difference between net earnings and adjusted net
earnings in FY 2025 mainly reflected the exclusion of the one-time $45.0 million reclamation expense for
non-operating sites , $22.1 million of transaction -specific business development expenses , primarily
related to the Porcupine Acquisition, $20.7 million of PPA adjustments, a $10.9 million expense related
to shares issued in relation to the TTN Resource Development Agreement, and $8.8 million of TSA costs.
• Net cash from operating activities in FY 2025 totaled $377.7 million, while free cash flow totaled $172.2
million.
• Capital expenditures for FY 2025 totaled $212.3 million, with an additional $8.1 million of leases , which
included $70.8 million of sustaining capital expenditures and $141.5 million of growth capital
expenditures; Of growth capital expenditures in FY 2025, $134.4 million related to Porcupine , primarily
due to pre -stripping at Pamour and longer -term investments at the TMA6, and $7.1 million related to
Cordero, largely for land acquisition.
5
(1) Example of Non-GAAP measure. See the section of this press release entitled, “NON-GAAP MEASURES” for more information.
(2) Refers to earnings before interest, taxes and depreciation and amortization.
Income Statement Summary
Three months ended Year ended
December 31,
2025
December 31,
2024
September 30,
2025
December 31
2025
December 31,
2024 (in thousands except per share amounts)
Revenue $ 274,242 $ - $ 236,961 $ 653,213 $ -
Production costs 73,814 - 106,807 235,540 -
Depreciation and amortization 49,381 - 35,826 101,591 -
Royalties 7,859 - 3,619 13,394 -
Earnings from mining operations 143,188 - 90,709 302,688 -
Expenses
General and administration 16,695 4,834 6,661 51,707 10,492
Exploration 340 (2) 5,972 7,167 373
Impairment — — 2,140 2,140 —
Share-based compensation 461 1,212 1,398 4,979 3,235
Other operating costs 47,512 — — 47,512 —
Earnings from operations 78,180 (6,044) 74,538 189,183 (14,100)
Other
Other income (loss) (3,623) 186 9,301 (1,012) (2,592)
Finance Items
Finance expense (income), net (14,208) 195 (12,725) (38,650) 1,525
Earnings before taxes 60,349 (5,663) 71,114 149,521 (15,167)
Current income tax expense (recovery) 26,255 - 32,462 85,088 -
Deferred income tax expense (recovery) (31,195) - (3,787) (42,377) -
Net (loss) earnings $ 65,289 $ (5,663) $ 42,439 $ 106,810 $ (15,167)
Basic earnings per share $ 0.08 $ (0.01) $ 0.05 $ 0.16 $ (0.04)
Diluted earnings per share $ 0.08 $ (0.01) $ 0.05 $ 0.15 $ (0.04)
Weighted average number of common
shares outstanding (in 000’s)
Basic 805,988 400,415 802,837 687,819 398,386
Diluted 828,211 400,415 825,798 710,042 398,386
PORCUPINE OPERATIONS REVIEW
Discovery’s Porcupine Operations consist of the Hoyle Pond, Pamour and Hollinger mine properties, the
Dome mine property and milling facility, and numerous near -mine and regional exploration targets. The
Complex also includes the Borden mine property and l arge land position near Chapleau, Ontario. Current
operations include the Hoyle Pond and Borden underground mines, with the Pamour open -pit project
ramping up towards commercial levels of production. All mineralization is processed at Dome, including
6
mineralization from Borden, which is trucked 190 km to the Dome Mill. The Dome Mill is a 12,000 tonne-per-
day processing facility that in recent years has operated at rates well below optimal levels. Through
investment programs launched following the closing of the Porcupine Acquisition, the Company is targeting
a return to full capacity operations by 2027 or sooner.
Three months ended Year ended
Porcupine Complex December 31,
2025
September 30,
2025
December 31,
2025
Tonnes processed (t) 892,818 808,688 2,210,297
Average Grade (g/t Au) 2.58 2.69 2.80
Recovery (%) 90.2 % 90.3 % 90.5 %
Gold produced (oz)(1) 66,718 63,154 180,424
Gold poured (oz)(1) 67,010 65,978 179,605
Gold sold (oz)(1)(2) 64,479 66,200 173,229
Milling costs (in thousands) $ 19,354 $ 17,107 $ 49,351
Milling costs per tonne processed ($/tonne) $ 21.7 $ 21.2 $ 22.3
Production costs $ 73,814 $ 106,807 $ 235,540
Operating cash costs per ounce sold(3)(4) $ 1,185 $ 1,339 $ 1,267
AISC per ounce sold(3)(4) $ 1,824 $ 1,699 $ 1,781
Total capital expenditures(3)(4) (in thousands) $ 96,581 $ 65,976 $ 204,189
(1) Includes gold production, poured and sold from Hoyle Pond, Borden and Pamour.
(2) The difference between ounces produced and ounces sold largely reflects the delivery of in-kind ounces under the Franco-Nevada royalty
arrangement.
(3) Example of Non-GAAP measure. See the section in this press release entitled, “NON-GAAP MEASURES” for more information.
(4) Operating cash costs per ounce sold, AISC per ounce sold and total capital expenditures are site level and exclude remaining
corporate G&A, share-based compensation costs and corporate-level sustaining capital expenditures.
During Q4 2025, a total of 892,818 tonnes were processed at Porcupine Complex at an average grade of 2.58
g/t, with recovery rates averaging 90.2%, which compared to 808,688 tonnes at an average grade of 2.69 g/t
and recovery rates averaging 90.3% in the previous quarter. A total of 66,718 ounces of gold were produced
over this period, with total gold poured of 67,010 ounces, compared to 63,154 and 65,978 ounces produced
and poured respectively, in the previous quarter. Higher production in Q4 2025 reflecte d the favourable
impact of increased ore mining rates at Pamour and higher average grades at Hoyle Pond, Borden, and
Pamour, partially offset by lower mining rates at Borden. The change in the combined average grade for the
Porcupine Complex to 2.58 g/t in Q4 2025 from 2.69 g/t in the previous quarter, reflected a higher proportion
of tonnes processed from Pamour.
Availability rates at the Dome Mill during Q4 2025 were impacted by a scheduled four -day maintenance
shutdown in October, with an additional nine hours of scheduled maintenance in November. Based on
operating days during Q4 2025, mill throughput averaged approximately 10,145 tonnes per day. Mill
operating costs during Q4 2025 averaged $21.68 per tonne processed, similar to $21.15 per tonne processed
for the previous quarter.
For FY 2025, representing operations for the period from April 16, 2025 to December 31, 2025, a total of
2,210,297 tonnes were processed at Dome Mill at an average grade of 2.80 g/t, with recovery rates averaging
90.5%. A total of 180,424 ounces of gold were produced over this period, with total gold poured of 179,605
ounces. Total mill operating costs were $49.4 million for FY 2025, for an average of $22.33 per tonne
processed.
Production costs, including mining and processing costs, in Q4 2025 totaled $7 3.8 million versus $106.8
million in the previous quarter. Operating cash costs1 per ounce sold averaged $1,185 compared to $1,339 in
7
the previous quarter. Site-level AISC1,2 averaged $1,824 per ounce sold compared to $1,699 in Q3 2025. The
quarter-over-quarter increase in AISC reflected a 49% increase in sustaining capital expenditures1 to $32.9
million in Q4 2025, which were mainly related to increased mobile equipment procurement at Hoyle Pond
and higher level of capital development at both Hoyle Pond and Borden.
For FY 2025, production costs totaled $2 35.5 million, with operating cash costs averaging $1,2 67 per ounce
sold and AISC averaging $1,7 81 per ounce sold. Included in AISC were $69.7 million of sustaining capital
expenditures related to capital development and expenditures related to TMA6.
(1) Example of Non-GAAP measure. See the section in this press release entitled, “NON-GAAP MEASURES” for more information.
(2) Site-level AISC includes corporate G&A allocation and excludes remaining G&A, share -based compensation costs and corporate -level
sustaining capital expenditures.
CORDERO OVERVIEW
The Cordero Project was acquired by Discovery in 2019. Since that time, the Company has invested over
$100.0 million in Mexico, conducting significant exploration drilling and technical analysis, leading to the
release of multiple studies, most recently th e Feasibility Study (“FS”) dated February 16, 2024 and filed on
SEDAR+ (www.sedarplus.ca) on March 28, 2024. The results of the FS confirmed Cordero to be one of the
world’s largest undeveloped silver deposits, with the potential for large-scale production at low unit costs, is
capable of generating substantial free cash flow and attractive economic returns.
Key highlights of the FS include:
• Average annual production of 37.0 million silver equivalent ounces 1(“AgEq”) over the first 12 years
with a total project life of 19 years;
• AISC2 averaging below $12.50 per AgEq ounce in Years 1 – 8;
• Base-case after-tax net present value (“NPV”) of $1.2 billion (Base-case metal prices: Silver – $22.00
per ounce; Gold – $1,600 per ounce; Zinc – $1.20 per ounce; Lead – $1.00 per ounce);
• Initial capital expenditures2 of $606.0 million (resulting in a NPV to capital ratio of 2:1);
• Large-scale Mineral Reserve totaling 302.0 million ounces of silver, 840,000 ounces of gold, 5.2 billion
pounds of zinc and 3.0 billion pounds of lead;
• Important socio -economic contribution to Mexico, including an initial investment of over $600
million, the creation of 2,500 jobs during development, and over 1,000 jobs during operations, $4.0
billion in total procurement, all to remain within Mexico, and , assuming a fixed $ 40.00 per ounce
silver price, total tax contributions within Mexico of $2.7 billion over the project life; and,
• High levels of environmental responsibility and a commitment to contributing to the management
of key social issues such as carbon reduction and water quality and availability.
Fourth Quarter 2025 Highlights
During Q4 2025, Discovery continued work on key initiatives to further de-risk the project, including:
• A third -party assessment to use natural gas power sources versus grid power supply and
commencement of a peer review and follow up work to reach a decision point in 2026 for the
primary source of power for Cordero;
• Completion of geotechnical and other assessment work related to the planned upgrade of
the local water treatment plant;
• Ongoing evaluation of the potential to establish solar farms around the project site to contribute
to the power supply required for mine development and operation; and,
8
• Participation in ongoing discussions with the various governmental bodies involved in issuing the
permits for the project.
(1) AgEq produced is metal recovered in concentrate. AgEq is calculated as Ag + (Au x 72.7) + (Pb x 45.5) + (Zn x 54.6); these factors are based
on metal prices of Ag - $22/oz, Au - $1,600/oz, PB - $1,00/lb and Zn - $1.20/lb use in the February 2024 FS.
(2) Example of Non-GAAP measure. See the section in this press release entitled, “NON-GAAP MEASURES” for more information.
2026 GUIDANCE
Total (in $ millions, unless otherwise stated)
Gold produced (koz) 260 – 300
Operating cash costs per ounce sold ($/oz sold)(1) $ 1,250 – 1,400
AISC per ounce sold ($/oz sold)(1) $ 1,950 – 2,250
Royalties(2) $ 25 – 35
Sustaining capital expenditures(1) $ 120 – 165
Porcupine - Growth capital expenditures(1) $ 195 – 235
Cordero – Fees and capital $ 90 – 100
Exploration (capital & expensed) $ 55 – 75
Corporate G&A(3) $ 35 – 40
(1) Example of Non-GAAP measure. See the section in this press release entitled, “NON-GAAP MEASURES” for more information.
(2) Royalty expense is included in operating cash cost and AISC per ounce sold. Royalty expense does not include costs related to the
Franco Nevada Royalties.
(3) Corporate G&A excludes share-based compensation.
(4) Based on, where applicable, a USD/CAD exchange rate of 1.36 and a USD/MXN$ exchange rate of 18.0.
Discovery’s 2026 guidance outlines a plan for increased production, that is expected to ramp up and peak
during the second half of the year. Operating cash costs per ounce sold 1, AISC1 per ounce sold and capital
expenditures1 are projected to be the highest in the first half of the year.
Targets for both sustaining1 and growth1 capital expenditures in 2026, reflect planned investment in support
of the Company’s goal of more than doubling gold production, to over half a million ounces per year, with a
cost profile in the lower half of the global cost curve. The Company’s guidance also includes a significant
commitment to exploration given the substantial potential that exists to convert and expand mineral
resources at existing operations and to i dentify new resources at the Porcupine operati ons, near -term
projects and regional targets.
Gold Production
Gold production in 2026 is targeted to reach 2 60,000 – 300,000 ounces, with production weighted towards
the second half of the year. Hoyle Pond and Borden are expected to account for approximately two-thirds of
gold production in 2026, with the remaining third coming from open-pit mining sources. Open pit production
will come from Pamour, as well as the Hol linger open pit, where production resumed early in 2026, and is
expected to ramp up as the year progresses.
Unit Costs
Operating cash costs per ounce sold are projected to be highest in the first two quarters of 2026, and average
$1,250 – $1,400 per ounce for the full year . Operating cash costs per ounce sold in 2026 are expected to
benefit from increased volumes, resulting from higher planned processing rates at the Dome Mill, at similar
grades, the impact of which will be offset by increased mining and processing costs and higher royalties as a
result of an increase in the average realized gold price1. AISC per ounce sold is targeted at $1,9 50 – $2,250,
reflecting higher sustaining capital expenditures and increased royalties compared to 2025. Unit costs are