Aya Gold & Silver (AYA) Q3 2024 earnings summary

Executive summary

• Zgounder Mine expansion is over 99% complete, with commissioning underway and commercial production targeted for late Q4 2024.

• Q3 2024 was a transitional quarter, with silver production of 355,927 ounces and record ore processed at 83,352 tonnes, though production was below expectations due to delayed stope readiness and disciplined mining methods.

• Revenue for the quarter was $11 million, down 6% year-over-year, impacted by non-recurring operational challenges.

• A successful spin-out of gold assets into Mx2 was completed, raising $15 million and positioning Aya with a 42% stake and board representation.

• Exploration at Zgounder and Boumadine continues to show high-grade mineralization and resource growth potential.

Financial highlights

• Revenue for Q3 2024 was $11 million at an average realized silver price of $27/oz.

• Net loss was $0.26 million, considered not significant for a transition quarter.

• Adjusted cash cost was $19.93/oz, with total cash cost at $23.47/oz, inflated by non-recurring contractor expenses for stope development.

• Cash flow from operating activities was -$6.05 million, reflecting heavy investment in stope development.

• Cash and restricted cash totaled $73.1 million as of September 30, 2024.

Outlook and guidance

• Production guidance for 2024 revised to 1.6–1.8 million ounces due to Q3 delays and commissioning timing.

• Commercial production at the new Zgounder plant is targeted for late Q4 2024.

• Grades and production rates are expected to improve in Q4 and into 2025 as new stopes and the open pit ramp up.

• Exploration drilling at Zgounder and Boumadine will continue, targeting resource expansion and new mineralization styles.