Aya Gold & Silver Inc. ((TSE:AYA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Aya Gold & Silver Inc. recently held its Q3 2025 earnings call, where the overall sentiment was positive, reflecting strong financial performance and operational achievements. The company reported record revenue and improved processing rates, although challenges in managing production costs and open pit grades remain ongoing concerns.
Record Revenue and Cash Flow
Aya Gold & Silver achieved a significant milestone by reporting $54 million in revenue for the third quarter of 2025. The company also generated $22 million in cash flow from operations, culminating in a record net income of $12.4 million, or $0.09 per share. This financial performance underscores the company’s robust operational capabilities.
Plant Processing Rate Exceeds Expectations
The company’s plant processing rate saw a remarkable increase, rising from 2,700 tonnes per day in the first quarter to 4,000 tonnes per day by November 2025. This exceeded the initial design capacity, showcasing Aya’s ability to enhance operational efficiency and output.
High Mill Recoveries and Availability
Aya reported impressive mill recoveries at 92.5%, with plant availability at 96%. These figures highlight the company’s strong operational performance and its ability to maintain high standards in its processing activities.
Strong Cash Position
Ending the third quarter with $129 million in unrestricted cash and an undrawn credit facility of $10 million from EBRD, Aya Gold & Silver is in a robust financial position. This liquidity provides the company with the flexibility to pursue growth opportunities and manage operational challenges.
Positive Exploration Results
The company conducted extensive drilling activities, with 19,659 meters drilled at Zgounder and 109,000 meters at Boumadine. These efforts reveal significant exploration potential in Morocco, positioning Aya for future resource expansion.
Higher Production Costs
Production costs were higher than anticipated, at $20 per ounce compared to the target of $18.50. This increase was primarily due to rising cyanide prices, which the company is actively managing to maintain its cost efficiency.
Open Pit Grade Challenges
Aya faced challenges with lower grades in the open pit, which they are addressing through improved dilution management and ore recovery strategies. These efforts are crucial for maintaining production efficiency and profitability.
Underground Mining Concerns
The company acknowledged historical issues with grade and dilution in underground mining. However, improvements are being implemented to address these challenges and enhance overall mining performance.
Forward-Looking Guidance
In its forward-looking guidance, Aya Gold & Silver expressed optimism about its production capabilities, having produced 1,347,000 ounces of silver with a mill recovery rate of 92.5%. The processing rate is expected to stabilize between 3,700 and 3,800 tonnes per day. Despite cost challenges, the company maintains a strong margin and anticipates further improvements as silver prices rise. Significant exploration activities continue at Zgounder and Boumadine, with promising financial projections for Boumadine. Aya is also advancing its ESG commitments, aiming for ISO 14001 environmental certification.
In summary, Aya Gold & Silver’s Q3 2025 earnings call conveyed a positive outlook with record financial results and operational achievements. While challenges in production costs and open pit grades persist, the company’s strong cash position and exploration potential provide a solid foundation for future growth. Investors can remain optimistic about Aya’s strategic direction and commitment to operational excellence.