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$23.00.
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Kevin O’Halloran has given his Buy rating due to a combination of factors, primarily centered around the promising results from Aya Gold & Silver’s Boumadine project. The Preliminary Economic Assessment (PEA) for Boumadine indicates a robust production potential with an average of 328,000 ounces per annum of gold equivalent over an 11-year mine life. This aligns well with the firm’s expectations and demonstrates a significant opportunity for value creation.
Furthermore, the project requires a relatively low initial capital expenditure of $446 million, which is favorable compared to previous estimates. The ongoing extensive exploration efforts, including a 140,000-meter drill program, suggest further growth potential. The Boumadine project’s advancement towards a feasibility study by 2027 and anticipated production start in 2030 also contribute to the positive outlook. Additionally, the expanded Zgounder mine is expected to boost silver production from 2025, supporting the overall positive assessment of Aya Gold & Silver’s prospects.
O’Halloran covers the Basic Materials sector, focusing on stocks such as Fortuna Mining Corp, Endeavour Silver, and Aya Gold & Silver. According to TipRanks, O’Halloran has an average return of 58.7% and a 90.08% success rate on recommended stocks.