Aya Gold & Silver Q2 Earnings Call Highlights

Key Points

• Strong second-quarter performance: Aya produced 1.7 million silver-equivalent ounces, up 61% year over year, while revenue rose 151% to $97 million and operating cash flow increased 522% to $48 million.
• Zgounder throughput exceeded design capacity: The Moroccan mine averaged 3,900 tonnes per day, supported by high recoveries and plant availability, while cash costs declined to $17.69 per ounce. A new tertiary crusher is expected to help sustain throughput near 3,850 tonnes per day from early 2027.
• Guidance and expansion plans remain intact: Aya reaffirmed 2026 production guidance of 5.2–5.8 million silver-equivalent ounces at Zgounder and 1 million at Boumadine, while advancing a Boumadine economic study, expanding exploration and acquiring additional Moroccan exploration properties.

Aya Gold & Silver TSE: AYA reported higher production, revenue and cash flow for the second quarter of 2026, supported by increased throughput at its Zgounder mine in Morocco and continued contributions from its Boumadine tailings reclamation operation.

President and Chief Executive Officer Benoit La Salle said the company produced 1.7 million silver-equivalent ounces in the quarter, up 61% from a year earlier and 12% from the prior quarter. Quarterly revenue rose 151% year over year to $97 million, while net income totaled $35 million and operating cash flow reached $48 million, up 522% from the second quarter of 2025.

For the first half of 2026, Aya reported production of 3.2 million silver-equivalent ounces, revenue of $205 million, net income of $84 million and operating cash flow of $119 million. Basic earnings per share for the six-month period were $0.58.

Zgounder Throughput Exceeds Design Capacity

La Salle said Zgounder continued to exceed its original processing design capacity of 2,700 tonnes per day. The mine achieved an average milling rate of 3,900 tonnes per day during the second quarter, compared with 3,600 tonnes per day in the first quarter and 3,000 tonnes per day a year earlier.

The daily mining rate reached 4,900 tonnes per day, while the average plant feed grade was 141 grams per tonne. Recoveries and plant availability both exceeded 90%, according to the company. Aya ended the quarter with an ore stockpile of 374,000 tonnes, which management said provides a buffer while it continues underground development work.

The company has brought in a temporary crushing contractor and is adding a tertiary crushing section at Zgounder. Vice President of Operations Raphaël Beaudoin said the new crusher is intended to sustain throughput near 3,850 tonnes per day and could potentially support further gains. The equipment is expected to be commissioned this fall and be ready for regular use in early 2027.

Zgounder’s cash cost was $17.69 per ounce during the second quarter, down from $18.64 in the prior quarter. For the first half, its cash cost was $18.18 per ounce. La Salle said sustaining and development costs at the relatively new operation remained low.

Beaudoin said the open-pit strip ratio was about 10 year to date and is expected to rise to around 16 over the next six months before ending the year near 13. He said Aya is not planning for a 20-to-1 strip ratio in 2027. The company may modestly reduce underground mining rates while prioritizing development of lower levels and additional sublevels, supported by the existing ore stockpile and open-pit material.

Boumadine Tailings Adds Cash Flow; Development Work Advances

At Boumadine, Aya produced 187,000 silver-equivalent ounces during the second quarter from processing historic tailings. La Salle said weather conditions affected output during the first half, but the company expects drier conditions to support stronger production in the third and fourth quarters.

Boumadine’s cash cost was $10.58 per ounce in the quarter. The company reported a net selling price of $35 per ounce after a 50% payable rate, compared with a stated cash cost of $10.58 per ounce. La Salle said the operation generated approximately $3.6 million of free cash flow during the quarter.

The company is preparing an updated preliminary economic assessment for Boumadine, expected in early September. Beaudoin said the updated study will incorporate a new resource estimate and revised net smelter return calculations, including updated payable-metal assumptions. He said the project’s overall scope would remain broadly similar, although changes could be made to the open-pit and underground components.

Aya has also engaged consultants for feasibility-study work streams including metallurgy, energy, water supply, logistics and tailings storage. La Salle said the feasibility study is expected next year, while early construction activities involving power, water and camp infrastructure are expected to begin toward the end of 2026.

Sales Timing Affected Quarterly Pricing

The company said Zgounder’s average realized silver price was $68.29 per ounce in the second quarter, below the LBMA quarterly average of $73 per ounce. Chief Financial Officer Ugo Landry-Tolszczuk attributed the difference primarily to timing, noting that silver prices declined sharply during June and that production must be completed before material can be sold.

Landry-Tolszczuk said a portion of Zgounder inventory remained unsold at quarter-end but was sold in July. He also said Boumadine sold less material than its production rate would imply during the second quarter and that the company expects sales to catch up during the second half.

La Salle said Aya finished the quarter with $183 million in cash, excluding $16 million in restricted cash associated with its European Bank for Reconstruction and Development financing. During the first half, the company spent $38 million on exploration and sustaining capital expenditures, repaid $33 million of debt and retired a $15 million short-term borrowing related to Boumadine.

Guidance Reaffirmed and Exploration Expanded

Aya reaffirmed its 2026 production guidance of 5.2 million to 5.8 million silver-equivalent ounces at Zgounder and 1 million silver-equivalent ounces at Boumadine. It also maintained Zgounder cash-cost guidance of $21.50 per ounce and Boumadine cash-cost guidance of about $10.10 per ounce. The company outlined $36 million in sustaining and growth capital expenditures and $60 million in exploration spending for the year.

The company is drilling 200,000 metres at Boumadine and 30,000 metres at Zgounder in 2026. At Boumadine, La Salle highlighted a new mineralized zone parallel to the main zone, including an intercept of 51 metres grading 890 grams per tonne silver equivalent. The company said the main and TZ structures now extend 5.4 kilometres.

Aya also announced the acquisition of a 259-square-kilometre exploration portfolio in Morocco for MAD 10 million, or about $1 million. The portfolio includes the Zagora, Agadir-Melloul and Guelmim districts, which management said have potential for combinations of copper, lead, zinc, silver, gold and possible rare earth elements. The company plans to spend about $800,000 this year on early-stage exploration work across the new properties.

La Salle also said Aya’s Nasdaq listing during the second quarter expanded trading volume and attracted new institutional shareholders, although associated costs contributed to higher general and administrative expenses during the period.

About Aya Gold & Silver (TSE:AYA)

Aya Gold & Silver is a Canadian precious metals mining company anchored in Morocco and active across the full mining value chain. The Company has established an exploration track record through a systematic, technology-led, data-driven approach and is focused on expanding its resource base and land package along the Anti-Atlas fault - one of Africa's most geologically rich, underexplored and mining-friendly regions. Aya operates Zgounder, a rare, silver-only mine, producing silver doré from its new processing facility.

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