(Kitco News) Tony Makuch, president and CEO of Discovery Silver (TSX: DSV; OTCQX: DSVSF), was named Kitco Mining’s CEO of the Year at the 35th BMO Global Metals, Mining & Critical Minerals Conference in Florida in February 2026, following a year in which the company repositioned the Porcupine complex in Ontario as a cash-generating growth platform.
Discovery reported 2025 production of 180,000 ounces of gold, $107 million in net profit, and $172 million in free cash flow in its first full year operating the asset, which it acquired from Newmont in 2024. Makuch said the turnaround reflected both operational alignment and renewed capital investment at a site previously designated non-core.
“The power of a thousand people pulling together is pretty impressive,” he said.
Rather than prioritize dividends, Makuch said the company is directing cash flow back into the business. “Shareholder return over the next few years is going to be an investment of capital into the business to improve the value of the equity,” he said.
Exploration spending is increasing accordingly. Makuch said Discovery expects to spend “somewhere north of 65, even $70 million” on exploration in 2026, up from a prior expectation of roughly $50 million annually. The goal is to expand resources and support longer mine life across the Porcupine district.
Makuch said a preliminary economic assessment outlined underground mining at Borden and Hoyle Pond through 2030 and 2031, with open-pit mining at Pamour extending well beyond 2047. Current drilling is aimed at reinforcing those timelines and supporting infrastructure investments that could improve scale and efficiency.
Cost discipline remains central to that strategy. “We like to see all in sustaining costs somewhere between 1250 and $1,500 an ounce,” Makuch said, adding that achieving that range could take two to three years. He framed capital spending as a driver of margin improvement rather than a drag on returns. “Don’t look at capital investment as just a cost; capital is an investment,” he said.
Makuch said Discovery entered 2026 debt-free and replaced a higher-interest working capital facility with a lower-rate line that remains undrawn, preserving flexibility should market conditions weaken.
Outside Ontario, Discovery continues to advance its Cordero project in Mexico. Makuch said the company is awaiting final environmental permits while progressing feasibility updates and engineering work. He acknowledged security risks in parts of Mexico and said the company has increased focus on site, procurement, and production controls.
Makuch cautioned that elevated gold prices do not eliminate cyclicality. Companies must “plan for the low parts of the cycle,” he said, emphasizing cost control and operational resilience.
The CEO of the Year recognition reflects both Discovery’s reported 2025 financial performance and Makuch’s strategy of reinvesting cash flow to extend mine life, reduce costs, and position Porcupine for longer-term growth.