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 ongoing into 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% to 358,919 tonnes.

• Major shift to open pit mining, now running at 1,500 tpd, with underground at 1,000 tpd; strategy aims for 2/3 open pit and 1/3 underground.

• Boumadine exploration advanced with 107,683m drilled in 2024, expanding the resource base and land package.

• Non-core gold projects (Tijirit and 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 sold rose 57% to $19.62 in 2024, attributed to ramp-up and overstaffing.

• Gross profit for 2024 was $5.4 million, down 66% year-over-year; gross margin turned negative in some reports.

• Cash and restricted cash at year-end was $49.2 million, down 30% year-over-year; working capital was $23.4 million.

• Operating cash flow for FY 2024 was negative $8.6 million, but Q4 saw a positive $2.4 million.

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%.

• Exploration and development budget for 2025 set at $25–$30 million, with focus on ramping up Zgounder to 3,000 tpd and Boumadine PEA.

• Only silver ingots to be produced and sold from Q2 2025, expected to improve realized prices.

• Sustaining capital budgeted at $7 million for 2025.

• Updated Technical Report and mine plan for Zgounder expected in 2025.