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$18.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Kevin O’Halloran has given his Buy rating due to a combination of factors, primarily focusing on the operational improvements and future potential of Aya Gold & Silver’s Zgounder mine. Despite the second quarter’s silver production being slightly below expectations due to lower grades, the company has demonstrated significant progress in optimizing its plant operations. Mill throughput and recovery rates have both exceeded forecasts, setting new records and indicating a positive trend in operational efficiency.
Looking forward, the production is expected to be weighted towards the second half of the year, with improvements in silver grades anticipated as the mine approaches steady state production. The ongoing expansion of the Zgounder mine is projected to significantly boost silver output starting in 2025. These operational advancements, coupled with successful resource growth, underpin the positive outlook and justify the Buy rating for Aya Gold & Silver.
In another report released on July 18, Desjardins also maintained a Buy rating on the stock with a C$22.00 price target.
AYA’s price has also changed moderately for the past six months – from C$11.620 to C$13.780, which is a 18.59% increase.