Aya Gold & Silver’s Earnings Call Highlights Growth and Challenges

Aya Gold & Silver Inc. ((TSE:AYA)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for Aya Gold & Silver Inc. conveyed a generally positive sentiment, underscoring the successful ramp-up of their new plant, which has led to increased production and a robust liquidity position. Despite some challenges with recoveries and grades, the company is proactive in addressing these issues and anticipates improvements in the upcoming quarters.

Successful Ramp-Up of New Plant

The new plant at Aya Gold & Silver Inc. was completed on budget and on time, reaching its nameplate capacity within weeks. Impressively, it is now operating above this capacity, demonstrating the efficiency and effectiveness of the company’s strategic planning and execution.

Increased Gold Production

Aya Gold & Silver reported a significant increase in gold production, reaching 1,069,000 ounces. This figure not only surpasses previous quarters but also highlights the company’s growing operational capabilities and market presence.

Strong Liquidity Position

The company’s liquidity remains strong, with $37 million in cash and restricted cash, $11 million in accounts receivable, and a new $25 million credit facility. This financial stability positions Aya well for future investments and operational expansions.

Exploration Success at Boumadine

The exploration efforts at Boumadine have been fruitful, with 46,000 meters drilled in Q1, adding 100 million ounces of silver equivalent to the mineral resource. This success underscores Aya’s commitment to expanding its resource base and enhancing its long-term growth prospects.

Positive Financial Performance

Aya Gold & Silver achieved record revenue of $33 million, with a net income of nearly $7 million and operating cash flow of $7.9 million for Q1 2025. These figures reflect the company’s strong financial performance and operational efficiency.

High Plant Availability and Throughput

The plant’s throughput has exceeded nameplate capacity, and mill availability remains in the high 90s, indicating robust operational performance and reliability.

Lower Than Expected Recoveries

Despite the positive trends, recoveries were at 82%, falling short of the feasibility study expectations of 89%. This shortfall is attributed to the oxygen plant not operating at full capacity, an issue that is being actively addressed.

Grade Challenges in Underground Mining

The average grade was lower than expected, primarily due to challenges in underground mining. The company is taking steps to improve this, ensuring better alignment with their production targets.

Mechanical Issues with the Oxygen Plant

The oxygen plant, crucial for improving recoveries, has not been working at its full capacity and requires repairs. Aya is focused on resolving these mechanical issues to enhance operational efficiency.

Forward-Looking Guidance

Aya Gold & Silver’s forward-looking guidance remains optimistic, with the Zgounder mine expansion contributing to enhanced production. The company aims for silver production between 5 and 5.3 million ounces annually, with cash costs between $15 and $17.5 per ounce. Despite current challenges, Aya is confident in its ability to meet its targets, supported by strong liquidity and ongoing exploration successes.

In conclusion, Aya Gold & Silver Inc.’s earnings call reflected a positive outlook, driven by successful operational strategies and strong financial performance. While challenges with recoveries and grades exist, the company’s proactive measures and robust liquidity position it well for future growth and success.