Aya Gold & Silver (AYA) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 silver production of 432,667 ounces, a 42% year-over-year increase, with ore processed up 12% to 80,562 tonnes and strong operational performance at Zgounder.

• Zgounder Mine expansion is over 95% complete, on time and on budget, with commissioning underway and first silver doré bar poured; commercial production expected in Q4 2024.

• Ended the quarter with $103 million in cash and cash equivalents, fully drawing down the $100 million EBRD loan after meeting all due diligence and ESG requirements.

• Robust cash flow from operations at $5.3 million, a 44% increase year-over-year, and record Q2-2024 revenue of $13.7 million, up 42% year-over-year.

• Exploration programs at Zgounder and Boumadine expanded, with the Zgounder drill program doubled to 30,000 m and Boumadine's main trend now drilled up to 5 km.

Financial highlights

• Q2 revenue reached $13.7 million, driven by increased production, strong silver prices, and sales of silver concentrate and inventory.

• Net income for the quarter was $6.8 million, reversing a net loss of $0.5 million in Q2-2023.

• Gross profit rose 79% to $4.9 million; operating income reached $1.7 million versus a loss last year.

• Cash cost per ounce was $17.85 in Q2, with further improvements expected in H2.

• Total assets grew 73% year-over-year to $425 million; non-current liabilities rose to $100 million.

Outlook and guidance

• Guidance for 2024 remains intact, with higher production and grades anticipated in H2 as the new plant ramps up.

• Commercial production at the new Zgounder plant is targeted for Q4 2024, with significant production and cash flow growth expected.

• Mining rates of 2,700 tpd expected by mid-2025, supported by a 309,000 t ore stockpile.

• Drilling at Boumadine's western anomaly to begin late Q3 or early Q4 2024, pending geophysical data inversion.

• 2024 silver production guidance incorporates ramp-up and recovery rates.