Aya Gold & Silver (AYA) Q4 2024 earnings summary

Executive summary

• Zgounder mine expansion completed on budget, with commercial production declared December 2024 and ramp-up to nameplate capacity in early 2025.

• 2024 silver production was 1.65 million ounces, down 16% year-over-year due to lower grades and recoveries, but ore processed increased 27%.

• Major shift to open pit mining at Zgounder, now running at 1,500 tpd open pit and 1,000 tpd underground, with a transition to 2/3 open pit and 1/3 underground expected to enhance cost efficiency.

• Boumadine exploration advanced with 107,000+ meters drilled, a 117% increase in land package, and significant resource growth.

• Non-core gold projects (Tijirit, Amizmiz) spun out into MX2 Mining, with Aya remaining the largest shareholder.

Financial highlights

• 2024 revenue was $39.1 million, down 9% year-over-year; net loss was $26 million, mainly due to a $27 million impairment on Tijirit.

• Adjusted cash cost per silver ounce rose to $19.62, up from $12.50 in 2023, attributed to ramp-up and overstaffing.

• Gross profit for 2024 was $5.4 million, down 66% year-over-year.

• Cash and restricted cash at year-end was $49.2 million, down 30% year-over-year.

• Working capital at year-end was $23.4 million; only significant debt is a $100 million EBRD loan with no 2025 repayments.

Outlook and guidance

• 2025 silver production guidance: 5.0–5.3 million ounces at a cash cost of $15.00–$17.50/oz, with recovery rates of 84–88%.

• Zgounder plant ramping up to steady-state 3,000 tpd; cost improvements expected as production increases.

• Sustaining capital budgeted at $7 million for 2025.

• Exploration and development budget for 2025 set at $25–30 million, focused on Zgounder and Boumadine.

• Major 2025 catalysts: Boumadine PEA, Zgounder resource update, and ramp-up to steady-state production.