Q: Could you please comment on today's earnings report for Discovery Silver? How do things look going forward? Would you still recommend DSV as a buy? If yes, what would be a fair price to start a position? Thank you to you and your team for your excellent service. Gord
5i Research Answer:
EPS of $0.112 beat estimates of $0.073 and sales of $331.99M beat estimates of $255.75M. Adjusted net earnings grew rapidly, expanding 75% compared to the prior quarter, and it generated $163.2M in cash from operations. Management provided guidance pointing to increased production, continued investment, and targeted cost ranges for the upcoming year, more specifically, back half weighted production of 260-300 koz, and an AISC/oz of $1,950 to $2,250. These were solid results and the stock is continuing its uptrend for now. We would be comfortable buying here, while acknowledging silver and gold have had a nice run, we think $9.7 is an attractive area.