Aya Gold & Silver Inc. (TSX: AYA, OTCQX:
AYASF) (“Aya” or the “Corporation”) is pleased to announce
financial and operational results for the fourth quarter and year
ended December 31, 2023. All amounts are in US dollars, unless
otherwise stated.
Annual Highlights
- Exceeded 2023 production guidance
with silver production of 1.97 million ounces (“oz”), a 5% increase
from 2022.
- Ore processed of 281,634 tonnes
(“t”) in 2023, a 10% increase from 254,976t in 2022.
- 493,340t of ore mined in 2023 for
an average of 1,352 tonnes per day (“tpd”), a 79% increase from ore
mined in 2022.
- Revenue of $42.8 million in 2023, a
12% increase from 2022.
- Beat 2023 cash cost guidance by 13%
with cost per silver ounce sold of $12.50 in 2023 (1).
- Cash flow generated by operating
activities increased to $21.2 million in 2023, or a 120% increase
from $9.6 million in operating cash flow generated in 2022.
- Robust financial position with
$70.3 million of cash, cash equivalents and restricted cash as at
December 31, 2023, compared to $41.8 million as at December 31,
2022 (2).
- Advanced expansion of Zgounder Mine
on budget and on schedule for Q2-2024 commissioning.
- Conducted 17,752 meters (“m”) of
diamond drill hole (“DDH”) drilling at Zgounder.
- Completed 10,900m of DDH on
Zgounder Regional and acquired 4 new permits, one of which has a
historical copper mine.
- Advanced development of Boumadine
through 74,295m of DDH drilling, initial metallurgical test work,
and acquisition of five permits.
- Signed a renewable-energy Power
Purchase Agreement for Zgounder expanded operations and advanced
construction of its electrical infrastructure towards
operationalization in Q2-2024.
- Published inaugural Climate Action
Report in alignment with the Task Force on Climate-Related
Financial Disclosures (“TCFD”), instituted new corporate policies,
and reported performance to the 2023 S&P Global Corporate
Sustainability Assessment.
- Ranked 14th on the 2023 TSX30 as a
top-performing stock with a 3-year appreciation of 498%.
- Ranked 12th in the 2024 OTCQX Best
50, a list of top-performing stocks traded on the OTCQX Best Market
in 2023.
2024 Outlook and Year So
Far
- Successfully completed a C$77.6
million ($57.3 million) bought-deal public financing.
- Drew down $25 million from $100
million project facility for Zgounder Mine expansion, with $85
million disbursed to date.
- 2024 guidance of between 2.6 and
3.2 million oz production at cash cost of between $13.00 and
$14.50/oz.
- 2024 exploration budget of $36
million, prioritizing Boumadine (120,000m), Zgounder (15,000m), and
Zgounder Regional (10,000m).
“2023 was a year of strategic growth and
investment in which we either delivered or exceeded our guidance,
expansion, exploration, financing, and sustainability objectives.
Zgounder delivered record silver production and throughput at
industry-low cash costs, generating record cash flow and
positioning us for the final year of expansion,” said Benoit La
Salle, President and CEO. “Our 2023 drill program was also very
successful, especially at Boumadine and Zgounder at-depth, which we
will develop at an even faster pace going forward.
While we remain focused on commissioning and
ramping up Zgounder on time and on budget in this transition year,
we have already doubled and started an ambitious exploration
program at Boumadine. We believe that Boumadine’s upcoming resource
estimate, together with its 120,000m drill program, will represent
a first step in our vision of developing Boumadine into a
cornerstone asset.
We are proud to start the year with a net cash
balance of $70 million, fully funded to deliver on our 2024
objectives. This does not include our recent oversubscribed equity
financing, which allows us to accelerate our growth plan at
Boumadine. Zgounder will shortly be connected to the clean-energy
power line, clearing the way for achieving our 2025 decarbonization
targets. We expect our dedicated teams to achieve full production
at Zgounder before year-end and to further expand reserves and
resources through exploration. 2024 will be another milestone year
for Aya.”
2023 Operational and Financial
Highlights
|
Three-month periods endedDecember
31, |
Years endedDecember
31, |
Key Performance Metrics |
2023 |
2022 |
Variation |
2023 |
2022 |
Variation |
Operational |
|
|
|
|
|
|
Ore Mined (t) |
176,208 |
78,415 |
125% |
493,340 |
276,013 |
79% |
Average Grade Mined (g/t Ag) |
201 |
319 |
(37%) |
213 |
255 |
(16%) |
Ore Processed (t) |
66,449 |
63,283 |
5% |
281,634 |
254,976 |
10% |
Average Grade Processed (g/t Ag) |
239 |
364 |
(34%) |
250 |
265 |
(6%) |
Mill Recovery (%) |
86.7% |
89.9% |
(3.2%) |
86.9% |
86.6% |
0.3% |
Silver Ingots Produced (oz) |
173,117 |
327,625 |
(47%) |
740,236 |
855,351 |
(13%) |
Silver in Concentrate Produced (oz) |
276,929 |
333,996 |
(17%) |
1,230,410 |
1,025,356 |
20% |
Total Silver
Produced (oz) |
450,046 |
661,621 |
(32%) |
1,970,646 |
1,880,707 |
5% |
Silver Ingots Sold (oz) |
206,731 |
350,943 |
(41%) |
726,395 |
921,242 |
(21%) |
Silver in Concentrate Sold (oz) |
300,904 |
318,563 |
(6%) |
1,285,949 |
1,013,912 |
27% |
Total Silver
Sales (oz) |
507,635 |
669,506 |
(24%) |
2,012,344 |
1,935,154 |
4% |
Avg. Net Realized Silver ($/oz) |
21.81 |
19.90 |
10% |
21.29 |
19.76 |
8% |
Cash Costs per Silver Ounce Sold (3) |
13.69 |
10.94 |
25% |
12.50 |
12.63 |
(1%) |
|
|
|
|
|
|
|
Three-month periods endedDecember
31, |
Years endedDecember 31, |
Key Performance Metrics |
2023 |
2022 |
Variation |
2023 |
2022 |
Variation |
Financial (in ‘000s of $) |
|
|
|
|
|
|
Revenues |
11,070 |
13,322 |
(17%) |
42,849 |
38,245 |
12% |
Cost of Sales |
6,276 |
8,603 |
(27%) |
27,042 |
27,961 |
(3%) |
Gross Margin |
4,794 |
4,719 |
2% |
15,807 |
10,284 |
54% |
Operating Income |
1,399 |
2,914 |
(52%) |
4,931 |
1,840 |
168% |
Net Income |
3,590 |
1,964 |
83% |
5,332 |
1,398 |
281% |
Operating Cash Flows |
5,677 |
3,639 |
56% |
21,191 |
9,649 |
120% |
Cash and Restricted Cash (4) |
70,333 |
41,849 |
68% |
70,333 |
41,849 |
68% |
Total Assets |
333,057 |
156,804 |
112% |
333,057 |
156,804 |
112% |
Total Non-Current Financial Liabilities |
57,672 |
- |
100% |
57,672 |
- |
100% |
Shareholders (in $) |
|
|
|
|
Earnings per Share – basic |
0.03 |
0.02 |
NM |
0.05 |
0.01 |
NM |
Earnings per Share – diluted |
0.03 |
0.02 |
NM |
0.04 |
0.01 |
NM |
2023 Annual Financial & Operational
Highlights (in ‘000s of $)
- Record silver production of
1,970,646 oz, of which 1,230,410 oz as silver concentrate
and 740,236 oz as silver ingots, in 2023.
- Mill average processed grade of 250
g/t Ag was recorded in 2023 compared to 265 g/t Ag in 2022, a
decrease of 6%.
- Milling operations averaged 772 tpd
in 2023 compared to 699 tpd in 2022, an increase of 10%.
- Average combined mill recovery of
86.9% in 2023 compared to 86.6% in 2022.
- Plant availability reached 91.6%
and 95.6% for the flotation and cyanidation plants,
respectively.
- Cost of sales of $27,042 (2022 –
$27,961) with an average cash cost per silver ounce sold of
$12.50/oz in 2023 compared to $12.63/oz in 2022 (5).
- Revenue from silver sales for 2023
totaled $42,849 (2022 – $38,245), an increase of 12% representing
an average realized price of $21.29 per oz. (2022 -
$19.76/oz).
- Operations generated a gross margin
of $15,807 in 2023 compared to $10,284 in 2022, an increase of
54%.
- Net income was $5,332 (diluted EPS
of $0.04) in 2023, compared to a net of $1,398 (diluted EPS of
$0.01) in 2022.
Fourth Quarter 2023 Financial &
Operational Highlights (in ‘000s of $)
- Quarterly silver production of
450,046 oz, comprising 276,929 oz as silver concentrate and 173,117
oz as silver ingots.
- Mill average processed grade of 239
g/t Ag was recorded in Q4-2023 compared to 364 g/t Ag in Q4-2022, a
decrease of 34%.
- Milling operations reached 722 tpd,
continuing to surpass design capacity of 700 tpd.
- Average combined mill recovery of
86.7% in Q4-2023 compared to 89.9% in Q4-2022, a decrease of
3.2%.
- Plant availabilities reached 86.7%
and 96.0% for the flotation and cyanidation plants,
respectively.
- Cash flow generated by operating
activities of $5,677 in Q4-2023, compared to $3,639 million
generated in operating cash flow in Q4-2022.
- Revenue from silver sales totaled
$11,070 (Q4-2022 – $13,322) in Q4-2023, a decrease of 17%
representing an average realized price of $21.81 per oz. (Q4-2022 -
$19.90/oz).
- Operations generated a gross margin
of $4,794, in Q4-2023 compared to $4,719 in Q4-2022, an increase of
2%.
- Net profit was $3,590 (diluted EPS
of $0.03) in Q4-2023, compared to net earnings of $1,964 (diluted
EPS of $0.02) in Q4-2022.
2023 Operations Review
In Q4-2023, the Zgounder operations team focused
on stabilizing open-pit production and reached its objective of 500
tpd. The planned annual shutdown was executed on time, and overall
production for the quarter reached 450 Koz and 1.97 Moz
for the year. Underground production was steady, and mining
production for the quarter averaged 1,915 tpd, for a total of
176,208t of ore for the quarter. In 2023, the Corporation extracted
493,340t of ore, with an average of 1,109 tpd from underground
mining and 243 tpd from the open pit. The open-pit operation
started in Q3-2023 and reached 1,035 tpd in December.
In Q4-2023, 66,449t of ore were processed,
adding over 113Kt of ore to inventory, in line with the 2024
commissioning plan. The December mill shutdown lowered total
availability to 91.3% for the quarter. The ore that went into the
mill had 239 g/t Ag, and the extraction process recovered
86.7% of it for a total production of 450,046 oz in the
quarter.
For 2023, steady throughput, head grade,
recovery and availability of both plants resulted in total silver
production of 1,970,646 oz, beating guidance. Overall, 281,634t
were processed in 2023 at a grade of 250 g/t Ag, with combined
recovery of 86.9% and availability of 93.6%.
As planned, the mine development rate has slowed
down. A total of 1,014m of lateral development was completed for
the quarter and a total of 4,685m for the year.
Annual training at Zgounder more than doubled to
total 10,760 hours, reflecting the Corporation’s commitment to
solidifying best practices including Health and Safety (“H&S”)
at Zgounder. The quarter also saw a second phase of training and
drills for the mine rescue and emergency response team. By Q1-2024,
the team is expected to have a significantly improved response
capacity and to be fully operational in H2-2024.
Zgounder Development
At year-end 2023, construction of the plant and
surface infrastructure continued to track budget. Overall, the
expansion project was 80% complete, compared to 60% at the end of
Q3-2023.
- Mine expansion
is fully funded and on track for commissioning in Q2-2024.
- Tailings and
water storage facilities are complete.
- Processing plant
approximately 71% completed.
- Electrical
infrastructure is 76% completed.
- Underground
development of 8,452m completed, 90% of the initial lateral
development program.
- Approximately
80% of vertical development completed.
- Production from
the open pit is ongoing with 87,475t stockpiled.
- $110 million has
been spent and an additional $38 million has been committed.
- On target to
complete expansion within the $159 million capital cost
estimate.
Operational Readiness
The Corporation’s operations team continues to
advance preparations to begin commissioning in Q2-2024. The
recruitment of senior technical and operational personnel has
started.
Mining at from the open pit continues, and a
total of 250,114t had been stockpiled at year-end 2023 for
commissioning of the new mill.
Following intensive training sessions,
Zgounder’s mine rescue team is expected to be fully operational in
H2-2024. Furthermore, the Corporation’s environmental and community
teams are maintaining its commitments to local authorities,
communities, and external stakeholders through increased engagement
and transparent reporting.
The table below presents construction progress
by main project area:
Area |
Progress |
Process Plant |
71 |
% |
Underground and Open-Pit Mines |
87 |
% |
Tailings |
97 |
% |
Water Management |
98 |
% |
Electrical Infrastructure |
76 |
% |
On-site Infrastructure |
60 |
% |
Figure 1 – Ongoing Installation of the Ball
Mill
2023 Exploration Campaign
Zgounder
A total of 17,752m were drilled in the year. In
H1-2023, drilling focused on targets east and south of Zgounder.
Following completion of underground development of the 1,925m and
1,950m levels, the at-depth drill program was launched later than
expected in the fourth quarter. This is now expected to be
completed in Q2-2024.
Zgounder Regional
In H1-2023, 8,462m of DDH were completed on the
Zgounder Regional permits to follow up on 2022 results and test new
targets. Preliminary results from the drilling program, although
anomalous, confirmed the potential for discovery of satellite
deposits for the Zgounder Mine.
Subsequently, the 2023 regional campaign was
re-oriented to test the potential continuation of the Zgounder
deposit east of the granophyre; to test the southern contact of the
rhyolite and a new target in the Tourchkal area. At year-end,
10,900m had been drilled, including a total of 920m on
Tourchkal.
During the year, the Corporation continued to
consolidate its land position at Zgounder, boosting its total
package by 20% to 354 km². Four new exploration permits were
acquired as part of a reallocation of exploration permits by the
Moroccan Directorate of Mines.
Boumadine
The initial 2023 program of 36,000m was
successfully completed in July, extending the strike length from
2.5 km to 3.8 km. Results identified a new, high-grade sulphide
stockwork zone that expanded the South Zone. The mapping and
prospecting programs enabled discovery of a new at-surface
mineralized structure in the northwest.
In July 2023, the Boumadine drill program was
more than doubled to total 74,295m in 197 DDH to carry out infill
and exploration drilling along strike including on new targets. At
year-end, drilling had extended the strike length of the Main Zone
to over 4.2 km. Results continued to confirm the continuity and
extension of the mineralized footprint of the Boumadine Main Zone,
which remains open in all directions. Furthermore, holes
BOU-DD23-223 and BOU-DD23-218 confirmed high-grade mineralization
and continuity to the south and north of the Main Trend,
respectively.
An NI-43-101 mineral resource estimate for
Boumadine is expected in H1- 2024 that will incorporate drilling
data from 2018 through 2023.
The Corporation also announced recoveries of 89%
silver and 85% gold from preliminary metallurgical test work at
Boumadine. A two-step metallurgical process is envisaged involving
a flotation stage followed by an oxidation and leaching stage. The
Corporation plans to refine the initial metallurgy results further
as its understanding of the deposit evolves.
In 2023, the Corporation continued to shore up
its Boumadine land holdings through the acquisition of five
permits. Its Boumadine land package increased by 209% to total 97.8
km² by year-end 2023.
The technical information relating to Zgounder,
Zgounder Regional and Boumadine properties was reviewed and
approved by David Lalonde, B. Sc, Head of Exploration, designated
as a Qualified Person under National Instrument 43-101.
2024 Zgounder Guidance
Zgounder |
2024 Guidance |
Silver production (M oz Ag) |
2.6 – 3.2 |
Silver cash cost ($/oz) (6) |
13.00 – 14.50 |
Recovery (%) |
85 – 86 |
Tonnes processed (‘000 t) |
425 – 485 |
Average grade processed (g/t Ag) |
215 – 240 |
Exploration & development ($ million) |
36 |
The Corporation expects 2024 production from
Zgounder to range between 2.6 and 3.2 million silver oz at a cash
cost of between $13.00 - $14.50/oz. The increase in cost is due to
the lower grades at the mills in 2024, the additional development
work needed in 2024, and the additional costs associated to the
start-up of the expansion. It is also in conjunction with a higher
silver price. The following metal prices and foreign currency
assumptions were used in the guidance: USD/CAD 1.39; and USD/MAD
10.50.
2024 Exploration Program Primarily Focused on
Growth
An exploration budget of $36 million has been
set for 2024, focusing on Boumadine (120,000m), Zgounder (15,000m),
and Zgounder Regional (10,000m).
At Boumadine, 50% of the drilling will focus
along the Main Trend to continue extending the known mineralization
trend along strike and at depth and to infill known areas as the
project advances towards a preliminary economic assessment. The
remaining 60,000m of drilling is greenfield exploration designed to
test geological hypotheses and drill targets generated from the
past two years of work. A large airborne geophysics campaign is
being flown over a large area of the Corporation’s permits and
immediately around its permits. A mineral resource estimate for
Boumadine is expected in H1-2024 that will incorporate drilling
data from 2018 through 2023.
At Zgounder, the 15,000m program will follow up
on underground targets generated from the 2023 program. An
additional 10,000m will be drilled on targets on the Zgounder
Regional permits with the objective of finding similar
mineralization to Zgounder.
A small drill and fieldwork program is planned
on the Amizmiz gold property in the middle of the year.
2024 Sustainability Outlook
In 2024, the Corporation maintains its focus on
consolidating its management processes with the goal of minimizing
the environmental and social impacts from current and expanded
operations, while continuously enhancing its safety culture. The
following activities will be prioritized this year:
- Further embed a zero-incident
H&S culture and operationalize the mine response teams.
- Connect Zgounder to the
renewable-energy power line to set the table for achieving its 88%
GHG reduction target in 2025.
- Enhance transparency through one
streamlined TCFD-, GRI- and IFRS-2-compliant report.
- Improve the waste management
plan.
- Increase data gathering and
environmental monitoring at Zgounder.
- Collaborate with local authorities to enhance local water
access, strengthen livelihood projects particularly for women, and
build community resiliency:
- Health – Mobile and weekly health
clinics in partnership with Moroccan authorities and community
organizations.
- Education – Reinforce local
capacity through school supplies, online support for middle-school
children, and an adult literacy program.
- Stakeholder engagement – Deepen
communication and awareness of the revised Stakeholder Engagement
Plan and grievance mechanism.
Q4-2023 Conference Call
The Corporation will hold a conference call on
March 28, 2024 at 9 am EDT to discuss its Q4 and full-year 2023
financial and operational results. The webcast can be accessed as
follows:
- Via
webcast: https://edge.media-server.com/mmc/p/akq33365
- Via conference
call dial-in as below:
- All parties must
register on the link below to participate in the conference
call.
- Register by
clicking
https://register.vevent.com/register/BI6da35ce6d637401a9ff4cdd081833fb6
and completing the online registration form.
- Once registered,
you will receive the dial-in numbers and PIN number for input at
the time of the call.
The live webcast will be archived and will be
available for replay. Presentation slides that will accompany the
conference call will also be posted on Aya’s website.
Change in Transfer Agent
The Corporation also announces that TSX Trust
Company (“TSXT”) has replaced Computershare Trust Company of Canada
as its registrar and transfer agent. Shareholders need not take
action in respect of the change in transfer agent and
registrar.
About Aya Gold & Silver
Inc.
Aya Gold & Silver Inc. is a rapidly growing,
Canada-based silver producer with operations in the Kingdom of
Morocco.
The only TSX-listed pure silver mining company,
Aya operates the high-grade Zgounder Silver Mine and is exploring
its properties along the prospective South-Atlas Fault, several of
which have hosted past-producing mines and historical resources.
Aya’s Moroccan mining assets are complemented by its Tijirit Gold
Project in Mauritania, which is being advanced to feasibility.
Aya’s management team is focused on maximising
shareholder value by anchoring sustainability at the heart of its
operations, governance, and financial growth plans.
Forward-Looking Statements
This press release contains certain statements
that constitute forward-looking information within the meaning of
applicable securities laws (“forward-looking statements”), which
reflects management's expectations regarding Aya’s future growth
and business prospects (including the timing and development of new
deposits and the success of exploration activities) and other
opportunities. Wherever possible, words such as “exceed”,
“continue”, “expected”, “improve”, “track”, “confident”, “will”,
“plan”, “guidance”, “continue”, and similar expressions or
statements that certain actions, events or results “may”, “could”,
“would”, “might”, “will”, or are “likely” to be taken, occur or be
achieved, have been used to identify such forward-looking
information. Specific forward-looking statements in this press
release include, but are not limited to, statements and information
with respect to the exploration and development potential of
Zgounder and the conversion of Inferred Mineral Resources into
Measured and Indicated Mineral Resources, future opportunities for
enhancing development at Zgounder, executing on the planned
expansion at the Zgounder mine, and timing for the release of the
Company's disclosure in connection with the foregoing. Although the
forward-looking information contained in this press release reflect
management's current beliefs based upon information currently
available to management and based upon what management believes to
be reasonable assumptions, Aya cannot be certain that actual
results will be consistent with such forward-looking information.
Such forward-looking statements are based upon assumptions,
opinions and analysis made by management in light of its
experience, current conditions, and its expectations of future
developments that management believe to be reasonable and relevant
but that may prove to be incorrect. These assumptions include,
among other things, the closing and timing of financing, the
ability to obtain any requisite governmental approvals, the
accuracy of Mineral Reserve and Mineral Resource Estimates
(including, but not limited to, ore tonnage and ore grade
estimates), silver price, exchange rates, fuel and energy costs,
future economic conditions, anticipated future estimates of free
cash flow, and courses of action. Aya cautions you not to place
undue reliance upon any such forward-looking statements. The risks
and uncertainties that may affect forward-looking statements
include, among others: the inherent risks involved in exploration
and development of mineral properties, including government
approvals and permitting, changes in economic conditions, changes
in the worldwide price of silver and other key inputs, changes in
mine plans (including, but not limited to, throughput and
recoveries being affected by metallurgical characteristics) and
other factors, such as project execution delays, many of which are
beyond the control of Aya, as well as other risks and uncertainties
which are more fully described in Aya's 2023 Annual Information
Form dated March 28, 2024, and in other filings of Aya with
securities and regulatory authorities which are available on SEDAR+
at www.sedarplus.ca. Aya does not undertake any obligation to
update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
Nothing in this document should be construed as either an offer to
sell or a solicitation to buy or sell Aya securities. All
references to Aya include its subsidiaries unless the context
requires otherwise.
_________________________________________________(1) The
Corporation reports non-GAAP measures, including cash costs per
silver ounce and available liquidity, which are widely used in the
mining industry as a benchmark for performance, but do not have a
standardized meaning and the methods used by the Corporation to
calculate such measures may differ from methods used by other
companies with similar descriptions. See “Non-GAAP Measures” on
pages 27-28 of the Corporation’s Q4-2023 MD&A for a
reconciliation of non-GAAP to GAAP measures. (2) Non-GAAP
Measures consisting of cash and cash equivalents of $49.8 million
and restricted cash of $20.5 million (December 31, 2022 balances of
$39.3 million and $2.5 million respectively). (3) See Footnote
(1) on page 1. (4) See Footnote (2) on page
1. (5) See Footnote (1) on page 1. (6) See
Footnote (1) on page 1.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e2c83ebb-2ede-492b-b004-2dc9b0a62c7e
For additional information, please visit Aya’s website at www.ayagoldsilver.com.
Or contact:
Benoit La Salle, FCPA MBA
President & CEO
benoit.lasalle@ayagoldsilver.com
Alex Ball
VP, Corporate Development & IR
alex.ball@ayagoldsilver.com
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