Aya Gold & Silver TSE: AYA reported what management described as a record first quarter of 2026, with higher revenue, cash flow and earnings despite weather-related disruptions at its Moroccan operations.
President and CEO Benoit La Salle said the quarter was “exceptional” for the company, noting that the first quarter is typically its most difficult operating period because the Zgounder mine is located at about 2,200 meters above sea level and is exposed to winter conditions. La Salle said Aya lost about five days of operations due to weather, but still delivered production of nearly 1.5 million ounces of silver.
“Aya delivered record revenue, record cash flow, expanding margin, rising silver price, and lower cash costs,” La Salle said.
Record Financial Results and Strong Balance Sheet
The company reported first-quarter revenue of CAD 117 million, compared with CAD 34 million in the prior-year period. Net income after tax rose to CAD 49 million from CAD 7 million a year earlier, with earnings per share of CAD 0.33 on a fully diluted basis and CAD 0.34 on a basic basis, according to management.
Operating cash flow totaled CAD 70 million, up from CAD 8 million in the first quarter of 2025. Aya ended the quarter with CAD 172 million in unrestricted cash, in addition to CAD 16 million of restricted cash tied to its European Bank for Reconstruction and Development loan. La Salle said the company’s only debt is the EBRD facility, which is now below CAD 100 million.
CFO Ugo Landry-Tolszczuk said the company has the option to use cash sweeps to prepay some debt without prepayment penalties at specific repayment dates in January and July, assuming cash continues to build.
The company said its first-quarter cash cost at Zgounder was CAD 18 per ounce, below its full-year guidance of CAD 21.50 per ounce. La Salle said the company expects costs to remain relatively stable, in part because Zgounder’s power comes from the grid and is sourced from solar and wind.
Zgounder Production Hit by Weather, but Mining Rates Rise
Aya produced 1.49 million ounces of silver in the quarter, up from 1 million ounces in the first quarter of 2025 but below the fourth quarter of 2025, which management attributed to weather-related downtime.
La Salle said mining rates improved significantly, with the mine averaging about 4,600 tonnes per day in the first quarter, up from 4,200 tonnes per day in the fourth quarter. He said the mine is now exceeding the plant’s throughput.
Vice President of Operations Raphaël Beaudoin said heavy rain made ore sticky and reduced crushing throughput, which he identified as the current bottleneck in the plant. He said the plant averaged 3,633 tonnes per day in the first quarter and returned to about 4,000 tonnes per day in April as weather improved.
To mitigate future disruptions, Beaudoin said Aya has hired a crushing contractor as a contingency and to help debottleneck the plant. The company is also studying an increase to its own crushing capacity. Beaudoin said the company already has the cone crusher needed for a potential expansion, which could be completed in roughly nine months after a decision.
Aya’s stockpile is now about 300,000 tonnes, which Beaudoin said is close to three months of production and provides operational flexibility. He said the company is comfortable at that level, though the stockpile could decline somewhat during the year.
Boumadine Reclamation Adds Cash Flow, Sales Delayed by Port Closures
At Boumadine, Aya is reclaiming historical pyrite material. La Salle said the operation produced 127,000 ounces of silver and 1,757 ounces of gold during the quarter. On a silver-equivalent basis, Boumadine produced 227,000 ounces, while sales were limited to 50,000 ounces.
La Salle said sales were affected because Moroccan ports were shut for about a month due to weather and flooding, delaying concentrate shipments to Asia. He said the issue is now behind the company.
Management described the reclamation project as a low-capital, low-cost initiative that is generating positive cash flow while also cleaning up historical waste. Beaudoin said the pyrite reclamation operation is not comparable to the larger Boumadine development project because it involves digging, crushing and trucking existing stockpiled material rather than mining fresh ore.
Landry-Tolszczuk said demand for the material remains strong, but logistics by truck will cause sales to be spread throughout the year. He said Aya remains on track for 1 million ounces of silver-equivalent production from Boumadine in 2026.
Guidance Maintained as Aya Advances Boumadine Study Work
Aya maintained its 2026 production guidance of 6.2 million to 6.8 million ounces of silver-equivalent production. The company expects Zgounder to produce 5.2 million to 5.8 million ounces of silver and Boumadine to contribute 1 million ounces of silver equivalent.
The company also maintained its cost and spending outlook, including Zgounder cash costs of CAD 21.50 per ounce, Boumadine cash costs of CAD 10.10 per ounce, CAD 36 million in sustaining and growth capital, and CAD 60 million in exploration spending.
La Salle said Boumadine remains a top priority and that Aya expects to fund the project without outside debt or equity financing. The company is working on a feasibility study targeted for 2027, along with an updated preliminary economic assessment expected by the end of June or beginning of July.
Beaudoin said Aya does not currently expect Boumadine capital costs to exceed the prior PEA range, noting that additional defined costs may be offset by a reduction in contingency as the project advances.
Exploration Program Remains a Major Focus
La Salle said Aya plans to drill about 230,000 to 240,000 meters in 2026, with 14 to 18 drills operating at any given time. At Boumadine, the plan includes 180,000 meters on the main structure and another 20,000 meters on regional targets.
The company is also exploring at Zgounder, where La Salle said Aya aims to extend the mine life beyond the current 11-year plan and potentially increase throughput. He said exploration results from both Boumadine and Zgounder are expected in the coming weeks.
In closing remarks, La Salle said Aya is focused on Morocco, citing the country’s geology, permitting environment and mining strategy. He also noted that Aya recently began trading on Nasdaq and said management has received positive feedback from the listing.
About Aya Gold & Silver TSE: AYA
Aya Gold & Silver Inc is engaged in acquisition, exploration, evaluation, and development of mining properties. The company and its subsidiaries are at the development stage for its Zgounder project and exploration and evaluation stage for projects in Morocco. Its other project includes Boumadine; Amizmiz; Azegour and others.
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