Discovery beats forecasts: Porcupine and Cordero mine plans for project teams
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Discovery Mining beat Q3 forecasts with adjusted earnings of US$83 million (10¢/share) despite Porcupine’s record 70,564 oz gold output driving operating cash costs up 6% quarter-on-quarter to US$1,470/oz and all-in sustaining costs to US$2,293/oz. Management kept 2026 guidance at 260,000–300,000 oz with costs at the top of the US$1,250–US$1,400/oz range, while planning to more than double Porcupine output above 500,000 oz by expanding existing mines, restarting Dome as a large open pit by 2028 and evaluating a central plant at the Kidd metallurgical site. At Cordero in Mexico, Discovery cut 2026 spend by US$70 million to US$20–30 million after SEMARNAT approvals, as it refreshes the 19-year, US$606-million build plan targeting about 14 million oz/year payable silver in the first decade.
Technical Brief
- Lower depreciation and a $56.5-million working capital inflow materially boosted Q3 free cash flow.
- Cash on hand rose 24% quarter-on-quarter to $450.7 million, strengthening funding for Porcupine redevelopment.
- Updated mineral resources and a new technical report for Porcupine are scheduled for early 2027.
- Central processing at the Kidd metallurgical site is being evaluated to treat ore from Dome and Pamour.
- Dome mine restart is timed for early 2028, with first ore delivery targeted mid-2028.
- Cordero capex guidance for 2026 was cut by $70 million, mainly from lower-than-assumed permit fees.
- SEMARNAT approvals at Cordero cover both land-use change and environmental impact, de-risking project execution sequencing.
- The 2024 Cordero feasibility study envisages a 19-year mine life with US$606-million initial build cost.
Our Take
The reduced 2026 spend at the Cordero silver project in Chihuahua sits awkwardly alongside the recent SEMARNAT approvals for its EIA and Change of Land Use, suggesting Discovery Mining is deliberately pacing capex rather than being constrained by federal permitting risk in Mexico.
With Discovery Mining’s market value around C$9.1 billion and a C$606 million initial build for Cordero, the project is material but not balance‑sheet stretching, which gives room to keep funding Porcupine‑area gold assets in Ontario such as the Fuller and Paymaster properties acquired from McEwen without over‑levering.
Among our 464 keyword‑matched gold and silver pieces, only a handful combine a long‑life silver asset in Mexico with active consolidation in Canada, so Discovery Mining’s dual exposure to Cordero and the Porcupine complex positions it more like a mid‑tier diversified precious‑metals house than a single‑jurisdiction play.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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