Unprecedented performance for Aya Gold & Silver in 2023, boosted by record production at Zgounder

Strengthened by its activities at its Moroccan locations, Aya Gold & Silver is closing the year 2023 on a positive note. The mining exploration company announces record production and revenues

Performance ” records » for Aya Gold & Silver in 2023. The company, which just posted its financial and operating results on March 28 for the fourth quarter and fiscal year ended December 31, 2023, reports revenue of $42.8 million ($M ) in 2023, an increase of 12% compared to 2022. Expenses were 13% below expected cash costs for 2023, with a cost per ounce of silver sold of $12.50 in 2023.

Cash flow in turn showed an impressive growth of 120%, with cash flow generated from operating activities reaching $21.2 million in 2023, compared to $9.6 million generated from operating activities in 2022. The company is therefore in a solid financial position, with $70.3 million. in cash, cash equivalents and restricted cash at December 31, 2023, compared to 41.$8 million at December 31, 2022.

These financial results are due to the intensification of the company’s activities, which reports that it has exceeded its planned production for 2023 with a production of 1.97 million ounces (55 tons) of silver, an increase of 5% compared to 2022 Ore processed amounted to 281,634 tonnes

Results stimulated by activities in Zgounder and Boumadine

The company-owned mines in Morocco saw very positive activity and contributed significantly to the positive performance. The year 2023 was marked by the impressive performance of the Zgounder mine which “ delivered record silver production and processing capacity at some of the lowest cash costs in the industry, generating record cash flow and positioning us well for this final year of expansion »said Benoit La Salle, chairman by Aya Gold & Silver.

The year 2023 was also marked by expansion operations at the Zgounder mine, which should further strengthen performance. In this context, the company announces that this operation is on budget and on schedule towards commissioning in the second quarter of 2024.

To date, 17,752 meters of diamond drilling have been carried out in Zgounder, in addition to the acquisition of four new permits, including a former copper mine. In addition, the company signed a renewable energy purchase agreement for the expansion of activities in Zgounder and the promotion of the construction of the energy infrastructure with a view to its operation in the second quarter of 2024.

Aya Gold & Silver also highlights the progress of development at Boumadine with 74,295 m of diamond drilling, as part of an initial metallurgical testing campaign and the acquisition of five permits. “ Our 2023 drill program has also been very successful, especially at Boumadine and Zgounder at depth, which we will now develop at an even faster pace. While we continue to focus on deploying and ramping up Zgounder on time and within budget during this transition year, we have already redoubled our efforts and initiated an ambitious exploration program at Boumadine. », also stated Benoit La Salle, emphasizing his company’s desire to create this mine “ a flagship “.

Forecast for 2024

For the current year, Aya Gold & Silver plans a primarily growth-oriented exploration program. In this context, an exploration budget of $36 million has been set for 2024, mainly concentrated in Boumadine (120,000 m), Zgounder (15,000 m) and Zgounder Regional (10,000 m).

At Boumadine, 50% of drilling will be carried out along the main corridor to continue to increase the extent of known mineralization along the corridor and at depth and to undertake infill drilling in known areas as the project progresses towards a preliminary economic evaluation. The remaining 60,000 m of drilling will be devoted to exploration in little-known terrain, to verify geological hypotheses and drill targets generated as part of the work over the past two years. A mineral resource estimate for Boumadine is expected in the first half of 2024, integrating drilling data from 2018 to 2023.

In Zgounder, the 15,000 m program will be used to monitor subsurface targets generated during the 2023 program. In addition, 10,000 m will be drilled to test targets on the Zgounder Regional Project Permits with the aim of finding similar mineralization in Zgounder. A further drilling and fieldwork program at the Amizmiz gold complex is planned around mid-year.

The company therefore plans to produce between 2.6 million ounces (73.7 tons) and 3.2 million ounces (90.7 tons) this year at a price range of $13 to $14.5 per ounce. It also plans to close government financing through a firm underwriting of CA$77.6 million ($57.3 million) in 2024. A drawdown of $25 million from the $100 million project facility for the Zgounder expansion mine, with a total of $85 million paid out to date, is also expected.

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