Tony Makuch awarded Kitco Mining CEO of the Year for revitalizing Porcupine
Tony Makuch Named CEO of the Year by Kitco Mining
At the 35th BMO Global Metals, Mining & Critical Minerals Conference held in Florida in February 2026, Tony Makuch, President and CEO of Discovery Silver (TSX: DSV; OTCQX: DSVSF), was honored as Kitco Mining’s CEO of the Year. This recognition comes after a transformative year in which Discovery Silver repositioned its Porcupine complex in Ontario, turning it into a profitable growth engine.
Strong Operational and Financial Performance
In 2025, Discovery Silver produced 180,000 ounces of gold, achieved a net profit of $107 million, and generated $172 million in free cash flow during its inaugural year managing the asset, which was acquired from Newmont in 2024. Makuch attributed this turnaround to both improved operational coordination and renewed capital investment at a site that was previously considered non-essential.
“It’s remarkable what can be accomplished when a thousand people work together,” Makuch remarked.
Reinvesting for Future Growth
Instead of focusing on immediate dividend payouts, Makuch explained that Discovery Silver is channeling its cash flow back into the company. “Over the next several years, shareholder value will come from reinvesting capital to enhance equity value,” he stated.
Expanding Exploration Efforts
Discovery Silver is ramping up its exploration budget, with plans to spend over $65 million—potentially reaching $70 million—on exploration activities in 2026. This is a significant increase from the previous annual target of about $50 million. The aim is to grow the company’s resource base and extend the operational life of its mines in the Porcupine district.
Long-Term Mining Plans
According to Makuch, a recent preliminary economic assessment supports underground mining at Borden and Hoyle Pond through 2030 and 2031, respectively, while open-pit operations at Pamour are expected to continue well past 2047. Ongoing drilling is intended to solidify these projections and guide infrastructure investments that could boost both scale and efficiency.
Focus on Cost Management
Maintaining strict cost controls is a cornerstone of Discovery Silver’s strategy. “Our target is to keep all-in sustaining costs between $1,250 and $1,500 per ounce,” Makuch said, noting that reaching this goal may take two to three years. He emphasized that capital expenditures should be viewed as investments that drive higher margins, not merely as expenses. “Capital investment isn’t just a cost—it’s a way to create value,” he added.
Financial Flexibility and Expansion
Entering 2026, Discovery Silver was free of debt and had replaced a higher-interest working capital facility with a lower-rate, undrawn credit line, providing the company with flexibility in case of market downturns.
Progress in Mexico and Risk Management
Beyond its Ontario operations, Discovery Silver is advancing the Cordero project in Mexico. The company is awaiting final environmental permits while continuing feasibility and engineering work. Makuch acknowledged the security challenges in certain regions of Mexico and said the company has strengthened its focus on site security, procurement, and production oversight.
Preparing for Market Cycles
Makuch cautioned that even with strong gold prices, market cycles remain a reality. He stressed the importance of planning for downturns by maintaining cost discipline and operational resilience.
Recognition for Leadership and Strategy
The CEO of the Year award highlights both Discovery Silver’s impressive 2025 results and Makuch’s approach of reinvesting in the business to extend mine life, lower costs, and position the Porcupine complex for sustained growth.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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