Aya Gold & Silver Inc. (TSX: AYA, OTCQX:
AYASF) (“Aya” or the “Corporation”) is pleased to announce interim
financial and operational results for the first quarter ended March
31, 2024. All amounts are in US dollars, unless otherwise stated.
- Q1-2024 Highlights
- Operational and
Financial:
- Silver production of 366,362 ounces (“oz”), a result of mining
lower grade ore in upper benches of the open pit and underground
stope extensions, in addition to underground sequencing.
- Ore processed increased to 81,331 tonnes (“t”) in Q1-2024, a
12% increase compared to Q1-2023.
- 106,880t of ore mined in the quarter for an average of 1,175
tonnes per day (“tpd”).
- Revenue of $5.1 million, a 51% decrease from Q1-2023, a result
of a temporary increase in silver concentrate inventory and
processing lower-grade ore.
- Held 157,457oz of silver in concentrate inventory with an
approximate fair value of $3.5 million as at March 31, 2024.
- Cost per silver ounce sold of $20.31 in Q1-2024 (1).
- Closed a bought-deal public financing for gross proceeds of
approximately $57.3 million.
- Received a third tranche of the EBRD loan, worth $25 million,
for a total of $85 million to date.
- Robust financial position with $111 million of cash, cash
equivalents and restricted cash as at March 31, 2024, compared to
$70.3 million as at December 31, 2023 (2).
- 2024 guidance remains unchanged.
- Expansion, Development and
Exploration:
- Advanced expansion of Zgounder Mine to 89% completion and on
schedule for Q2-2024 commissioning.
- Conducted 8,710 meters (“m”) of diamond drill hole (“DDH”)
drilling at Zgounder.
- Completed 2,998m of DDH on Zgounder Regional.
- Continued development of Boumadine through 15,027m of DDH
drilling and acquisition of six permits.
- Launched electromagnetic airborne geophysics surveys on the
Boumadine and Tirzzit properties using Expert Geophysics's MobileMT
technology.
- Environmental, Social and
Governance (“ESG”):
- Advanced construction of the Zgounder 90-kilometer (“km”)
transmission line towards implementation of the renewable-energy
power purchase agreement.
- Provided 2,946 hours of health and safety training during the
quarter and launched a new “safety dialogue” program.
- Recent Developments:
- On April 16, 2024, the Corporation announced an updated NI
43-101-compliant Mineral Resource Estimate for its Boumadine
project that incorporates drilling from 2018 to 2023.
- Indicated Mineral Resources of
2.0Mt at 113 g/t Ag, 2.51 g/t Au, 4.32% Zn and 1.07% Pb containing
an estimated 7.4 Moz of Ag, 165 koz of Au, 88 kt of Zn and 22 kt of
Pb.
- Inferred Mineral Resources of 23.6
Mt at 85g/t Ag, 2.62 g/t Au, 2.32% Zn and 0.84% Pb containing an
estimated 64.7 Moz of Ag, 1.98 Moz of Au, 546 kt of Zn and 198 kt
of Pb.
“We started 2024 with a strong performance that
provides us with runway to execute on our growth strategy
objectives and guidance this year,” said Benoit La Salle, President
& CEO. “We made significant progress at Zgounder in the
quarter. The expansion is 89% complete, on budget and on schedule
to start commissioning in Q2. At our operations, we built inventory
from mining lower grade ore from the open pit to access higher
grade zones in addition to mining lower grade, underground stope
extensions that were identified outside of our modeled resource.
Zgounder also returned high-grade drill results at the granite
contact, which continues to be a source for mineralization.
"In parallel, we announced a significantly
increased resource update at Boumadine, and have since extended its
strike to 5 kilometers and secured 7 additional permits. With $111
million in cash and restricted cash at quarter-end, we remain fully
funded to complete the mine expansion and our aggressive
exploration programs. We expect 2024 to be an exciting year for the
exploration team as we focus on delivering the expansion and our
guidance.”
Q1-2024 Operational and Financial
Highlights (in 000’s of $)
|
Three-month periods
endedMarch
31, |
|
Key Performance Metrics |
2024 |
|
2023 |
|
Variation |
|
Operational |
|
|
|
Ore Mined (tonnes) |
106,880 |
|
80,902 |
|
32% |
|
Average Grade Mined (g/t Ag) |
159 |
|
223 |
|
(29%) |
|
Ore Processed (tonnes) |
81,331 |
|
72,737 |
|
12% |
|
Average Grade Processed (g/t Ag) |
173 |
|
235 |
|
(26%) |
|
Combined Mill Recovery (%) |
81.8% |
|
87.1% |
|
(5.3%) |
|
Silver Ingots Produced (oz) |
111,497 |
|
168,648 |
|
(34%) |
|
Silver in Concentrate Produced (oz) |
254,865 |
|
306,165 |
|
(17%) |
|
Total Silver
Produced (oz) |
366,362 |
|
474,813 |
|
(23%) |
|
Silver Ingots Sold (oz) |
108,604 |
|
149,915 |
|
(28%) |
|
Silver in Concentrate Sold (oz) |
129,662 |
|
358,289 |
|
(64%) |
|
Total Silver
Sales (oz) |
238,266 |
|
508,204 |
|
(53%) |
|
Avg. Net Realized Silver ($/oz) |
21.31 |
|
20.55 |
|
4% |
|
Cash Costs per Silver Ounce Sold (3) |
20.31 |
|
14.56 |
|
39% |
|
Financial |
|
|
Revenues |
5,077 |
|
10,443 |
|
(51%) |
|
Cost of Sales |
4,741 |
|
8,360 |
|
(43%) |
|
Gross Margin |
336 |
|
2,083 |
|
(84%) |
|
Operating Loss |
(2,869) |
|
(85) |
|
3,275% |
|
Net (Loss) Income |
(2,592) |
|
1,060 |
|
(345%) |
|
Operating Cash Flows |
(10,236) |
|
4,063 |
|
(352%) |
|
Cash and Restricted Cash (4) |
111,048 |
|
90,999 |
|
22% |
|
Total Assets |
395,586 |
|
226,708 |
|
74% |
|
Total Non-Current Financial Liabilities |
82,109 |
|
- |
|
100% |
|
Shareholders |
|
|
(Loss) Earnings per Share – basic |
(0.02) |
|
0.01 |
|
NM |
|
(Loss) Earnings per Share – diluted |
(0.02) |
|
0.01 |
|
NM |
|
Q1-2024 Operations Review
In Q1-2024, 22,229 tonnes of ore were mined from
the open pit. As expected, the first benches of the open pit were
lower grade and oxidized, and their mining exposed higher-grade
zones. As per the mine sequence, higher-grade zones are being mined
along with current zones which will result in higher average grade
from the open pit throughout the remainder of the year. During the
quarter, ore was mined from the open pit at an average strip ratio
of 18, which is expected to decrease to 13 for the year. The open
pit is mined using a mining contractor. To date, the contractor’s
performance and the costs associated to mining the open pit are to
plan.
The underground mining team worked on ore
drives, defining future underground stopes, and improving old
stopes to make them safe for operations in the quarter. They
followed the Corporation’s standard mining methods to achieve a
high ore recovery. Several historical high-grade stopes are being
completed with lower-grade extensions before the stopes are
backfilled with cemented rock fill. The combination of these
activities resulted in mining of lower grade ore during Q4-2023 and
Q1-2024. Total mining rate for the quarter averaged 1,175 tpd, for
a total of 106,880t of ore mined in the quarter. Overall,
stockpiles were at 275,663t as at March 31, 2024. As planned, the
mine capital development rate has been reduced to focus on ore
drives. A total of 579m of lateral development was completed for
the quarter.
In Q2, six stopes are in operation with more to
be added throughout the year. Additional stopes are being defined,
and historical stope rehabilitation continues. The team expects to
reach higher grade stopes in the coming quarters as known, defined,
vertical orebodies become accessible via the 1,925 level.
In Q1-2024, 81,331t of ore were processed. Total
mill availability for the quarter was 96.3%. Mill feed grade was
173 g/t Ag, and recovery averaged 81.8%. The lower recovery rate
was due to processing oxidized ore from the first benches of the
open pit. Recoveries will return to historical levels once the
surface oxidized ore is consumed and fresh ore is mined as the open
pit progresses. In the new plant, recoveries for both the oxidized
and fresh ore are expected to be equal. Total production of 366,362
oz was achieved in the quarter.
The Q1-2024 mining rate, grade, and mill
recovery rate were factored into the 2024 guidance.
Zgounder Expansion
At the end of Q1-2024, construction of the plant
and surface infrastructure continued to track on budget. Overall,
the expansion project was 89% complete, compared to 80% at the end
of the fourth quarter.
- Mine expansion
is fully funded and on track to start commissioning in
Q2-2024.
- Tailings and
water storage facilities are complete.
- Processing plant
is approximately 87% complete.
- Electrical
infrastructure is 90% complete.
- Underground
development of 9,031m completed, 94% of the initial lateral
development program.
- Approximately
83% of vertical development completed.
- Production from
the open pit is ongoing with 103,449t stockpiled.
- On target to
complete expansion within the capital cost estimate.
Figure 1 – Completion of the
New Cyanidation Tanks at Zgounder
2024 Exploration Programs
In Q1-2024, the Corporation maintained its focus
on defining at-depth mineralization, with 7 underground rigs and 1
surface rig drilling a total of 8,710m of DDH on the Zgounder
mining permit. A total of 15,000m for exploration was assigned to
the Zgounder Mine permit in 2024 to follow up on underground
targets generated by the 2023 program.
Preliminary results in the quarter continue to confirm
high-grade silver mineralization near the granite contact. In
particular, holes ZG-SF-23-084 and ZG-SF-23-092 are hosted within
the rhyolite, which was previously believed to be barren, opening a
new area for exploration.
A 10,000m drill program has been established for
Zgounder Regional in 2024 with the aim of finding mineralization
similar to the near-mine permit. Two surface rigs were mobilized
during the quarter, carrying out a total of 2,998m on Zgounder East
and Zgounder South targets adjacent to the mine. Results are still
pending.
Through 2024, the Corporation plans to mobilize
seven drill rigs to complete a 120,000m drill program on Boumadine.
Half of the program will test the continuation of the known trend
and carry out infill drilling. The remaining 50% will focus on
geological targets generated by 2023 work and will be informed by
the ongoing hyperspectral and high-resolution geophysical
surveys.
The first quarter saw the Corporation drill
15,027m DDH at Boumadine to explore along strike and test new
targets. Results confirmed high-grade mineralized zones in the
central and northern portions of the Main Trend with BOU-DD23-180
intersecting 1,039 g/t AgEq over 23.5m (6.41 g/t Au, 116 g/t Ag,
4.7% Zn, 0.6% Pb and 0.4% Cu).
At the end of the first quarter, the Corporation
had acquired six new exploration permits in the vicinity of the
Boumadine Main Trend. These additions boost the Boumadine total
land package to 141.4 square km, a 346% increase compared to
year-end 2023.
A 6,515 linear km airborne MobileMT geophysical
survey was flown over the Boumadine land package, including the new
permits, in the first quarter with a view of obtaining at-depth
drill targets.
Q1-2024 Results and Conference Call
Management will host a conference call today,
Wednesday, May 15, 2024, at 10 am EDT to discuss the Q1-2024
financial and operational results.
Webcast link:
https://edge.media-server.com/mmc/p/krs2wcnf/
Instructions for obtaining conference call
dial-in numbers:
- All parties must
register on the link below to participate in the conference
call.
- Register by
clicking
https://register.vevent.com/register/BIdb50bb18cbe144dba57e964fae5acbb6
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.
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 has been focused on
maximising shareholder value by anchoring sustainability at the
heart of its operations, governance, and financial growth
plans.
For additional information, please visit Aya’s website at
www.ayagoldsilver.com.
Or contact
Benoit La Salle, FCPA,
MBAPresident &
CEOBenoit.lasalle@ayagoldsilver.com |
Alex Ball VP,
Corporate Development & IR
alex.ball@ayagoldsilver.com |
|
|
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.
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 “strategy”,
“guidance”, “progress”, “expect”, “confirm”, “potential”, “expect”,
“continue”, “objective”, “expand”, 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 in particular the nature of the deposit as it hits the
granite and the continuation of down-plunge extensions, the
conversion of Inferred Mineral Resources into Measured and
Indicated Mineral Resources and future opportunities for enhancing
development at Zgounder including the possible expansion of the
mineral resource at depth. 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
ability to obtain any requisite governmental approvals, obtaining
regulatory permits for on-site work, importing goods and machinery
and employment permits, the accuracy of Mineral Reserve and Mineral
Resource Estimates (including, but not limited to, ore tonnage and
ore grade estimates), the price of silver, the price of gold,
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
gold 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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/7d7a3249-7344-404b-9d17-c917f680f9e5
(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 page 23 of the Corporation’s Q1-2024 MD&A for a
reconciliation of non-GAAP to GAAP measures.(2) Non-GAAP Measures,
consisting of cash and cash equivalents of $90.5 million and
restricted cash of $20.5 million (December 31, 2023, balances of
$49.8 million and $20.5 million respectively).
(3) See Footnote (1) on page 1. (4) See Footnote
(2) on page 1.
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