Aya Gold & Silver (AYA) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked the first full quarter of ramp-up for the new Zgounder plant, with production and cost improvements, and commercial production declared in late 2024.

• Silver production exceeded 1,068,652 ounces, up 192% year-over-year, with open-pit mining reaching 68% of total ore mined, aligning with the targeted 70/30 open-pit/underground split.

• Strong profitability and positive operating cash flow were reported, with net income of $6.9M reversing a prior year loss and operating cash flow at $7.9M.

• Strategic initiatives included the spinout of Amizmiz into MX2 Mining, securing a $25M EBRD credit facility, and appointing a new board member with technical expertise.

• ESG initiatives advanced with increased health and safety training, expanded educational and community engagement programs.

Financial highlights

• Q1 2025 revenue reached $33.8M, a 566% increase year-over-year, with gross profit at $10.2M and net income at $6.9M.

• Operating cash flow was $7.9M, and working capital at quarter-end was $1.8M.

• Cash and restricted cash stood at $36.6M, with an additional $11.6M in accounts receivable from Q1 sales collected in Q2.

• Cash cost per silver ounce sold was $18.93, with average realized net silver price at $31.87/oz.

• A $25M credit facility from EBRD was secured post-quarter, bringing total available liquidity to approximately $73M.

Outlook and guidance

• 2025 guidance reaffirmed: silver production of 5.0–5.3 Moz, cash cost $15.00–$17.50/oz, recovery 84–88%, and average grade processed 170–200 g/t Ag.

• Zgounder plant expected to reach 3,000 tpd ore processing and 89% recovery rate after oxygen plant repairs.

• Exploration and development budget for Moroccan projects set at $25–30M, with 160,000–180,000 meters of drilling planned.

• Mining rate to increase to over 40,000 tpd of total material moved by year-end.

• Focus remains on cost rationalization and steady-state operations.