In a report released yesterday, Kevin O’Halloran from BMO Capital maintained a Buy rating on Aya Gold & Silver, with a price target of C$29.00.
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Kevin O’Halloran has given his Buy rating due to a combination of factors that, in his view, outweigh a modest near-term production shortfall. While Aya’s Q4 silver output and 2025 guidance came in slightly below his expectations, he highlights that the operation exited the year with record monthly production in December, reinforcing confidence in the company’s ability to ramp up volumes into 2026. He also points to the updated Zgounder mine plan, which, despite incorporating lower grades from a shift toward open-pit mining, maintains life-of-mine production broadly in line with previous forecasts and improves confidence in operational deliverability.
In updating his model for the new technical report, O’Halloran notes that higher throughput more than compensates for the lower grades, supporting a steady production profile that he considers realistic and achievable through 2036. He believes successful execution on this plan, alongside continued progress and resource growth at Boumadine, should translate into meaningful value creation for shareholders. The higher target price of $29, supported by a premium NAV multiple for both Zgounder and Boumadine, reflects his view that the market is not fully pricing in this growth and operational momentum. On balance, these operational, reserve, and valuation dynamics underpin his Buy recommendation on Aya Gold & Silver.
According to TipRanks, O’Halloran is a top 25 analyst with an average return of 79.9% and a 95.77% success rate. O’Halloran covers the Basic Materials sector, focusing on stocks such as Endeavour Silver, Aya Gold & Silver, and Fortuna Mining Corp.