Aya Gold & Silver: Ramping Zgounder, De-risking Boumadine, and Buying the Map
Strong Q2 cash flows fund a growing Moroccan silver district as the Zgounder plant pushes 45% above nameplate.
AYA.TO · Earnings Call · 2026-08-14
Strong Q2: Ramping Zgounder
Aya Gold & Silver turned in another beat-and-raise quarter as the Zgounder mine continued to outperform. Revenue of $97 million (up 151% year-over-year), net income of $35 million, and operating cash flow of $48 million (up 522%) all show a company in the sweet spot of its ramp-up. “another very strong quarter for Aya” — Benoit La Salle, President and CEO · 2026-08-14, CEO Benoit La Salle opened, and the numbers back that up. The mining rate hit 4,900 tonnes per day — a record — while plant throughput averaged 3,900 t/d versus a nameplate of 2,700 t/d. “we're very pleased that for Q2 2026, the cash cost at Zgounder is at $17.69” — Benoit La Salle, President and CEO · 2026-08-14. That low cost—combined with a strong silver price earlier in the year—translated into production guidance that is "totally aligned" at midyear. Operationally, the company is managing a delicate balancing act between open-pit stripping and underground development. The crushing contractor is helping push throughput higher, and a new tertiary crusher will be commissioned in early 2027. Crucially, Aya built a ore stockpile of 374,000 tonnes, “the buffer that is there if we reduce mining rates for more development” — Benoit La Salle, President and CEO · 2026-08-14 — a prudent move as the underground focuses on accessing lower levels.Growth Pipeline: Boumadine and New Ground
The next catalyst is the updated PEA for Boumadine, due early September. The updated PEA will incorporate a new resource model and revised payabilities for the concentrate, a key value driver. “It's mainly a new resource model and introduction of the new payability of the metal” — Benoit La Salle, President and CEO · 2026-08-14, La Salle noted, adding that metallurgy is not an issue since all concentrate goes to a smelter. Management is also fast-tracking the feasibility study and has already started the RFP process for construction. Exploration continues to deliver. The standout was a new zone parallel to the main structure: “we had an intercept of 51 meters at 890 gram per tonne silver equivalent” — Benoit La Salle, President and CEO · 2026-08-14. This discovery is not in the resource model yet, but it underscores the district's upside. On top of that, Aya announced the acquisition of 259 square kilometers of ground covering copper, lead, zinc, and silver targets in the Zagora, Agadir Melloul, and Goulmim areas — bought for just $1 million plus $800k in planned exploration. new zone indeed.Market Context and Silver Price Risk
The elephant in the room is the silver price. After spiking to $120/oz in January, it corrected hard, with Q2 average selling price at $68.29 (below the LBMA average of $73). “the market needs to have a clear understanding of why our selling price for some of you was a bit lower” — Benoit La Salle, President and CEO · 2026-08-14 — and CFO Ugo Landry-Tolszczuk blamed the precipitous June decline from over $70 to below $60. The company sold roughly a third of quarterly production at those lows. silver price is a global theme, and Aya is highly leveraged to it. Yet even at $68, the company generated $119 million of operating cash flow in H1, demonstrating the power of its cost structure. Prior to this quarter, management had consistently emphasized the strength of the Zgounder open pit and the shift to bulk mining. “we have something fantastic 2 district, Zgounder and Boumadine” — Benoit La Salle, President and CEO · 2026-03-31, La Salle said in March, echoing the long-term thesis. The latest call reinforces that, with a focus on feasibility studies and aggressive exploration.Balance Sheet and Catalysts
Aya finished Q2 with $183 million in cash, having paid down $33 million of EBRD debt. The balance sheet is pristine, and the company is self-funding Boumadine's development — no debt needed. The NASDAQ listing in Q2 was a major success, broadening the shareholder base and adding liquidity.The next few months bring a flurry of catalysts: the revised PEA (September), ongoing drill results (September/October), and the start of Boumadine construction (late 2026). The risk is silver price volatility, but with cash costs under $20/oz and a strengthening portfolio, Aya is well positioned to ride out the swings. The company is doing what few miners can: growing production, cutting costs, and buying cheap exploration upside—all while generating substantial free cash flow.It's a recipe for success. We've done very well so far. I mean, since we took over 6 years ago, this has been a tremendous success, but we believe that there's a lot more to come.