Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aya Gold & Silver Inc (AYASF, Financial) is on track with the Zgounder mine expansion, which is 99% complete and expected to reach commercial production by late Q4 2024.
- The company has a significant stockpile of 347,000 tons of ore ready for commissioning, providing a strong foundation for future production.
- Aya Gold & Silver Inc (AYASF) has successfully spun out its gold assets into a new entity, Mx2, which has raised $15 million in financing.
- The exploration program is robust, with significant drilling results at Zgounder and Boumadine, indicating potential for high-grade mineralization.
- The company has achieved ISO 9001 certification and met all ESG requirements, reflecting a strong commitment to operational excellence and sustainability.
Negative Points
- Production in Q3 2024 was below expectations due to delays in developing new stopes, resulting in lower-grade ore being processed.
- The company reported a net loss of $300,000 for the quarter, partly due to non-recurring expenses related to stope development.
- Cash costs were higher than usual at $23.47 per ounce, influenced by non-recurring contractor expenses.
- The ramp-up of the new plant and underground mine has faced some delays, impacting overall production timelines.
- The company had to revise its annual production guidance to 1.6 million to 1.8 million ounces, reflecting challenges in meeting initial targets.
Q & A Highlights
Q: Could you expand on the underground issues with the stopes and the rework required? Are the four stopes being rehabbed different from the six stopes in development?
A: Raphael Beaudoin, VP of Operations, explained that the lower grade in Q3 was due to development in new stopes. The ore drives through the body tend to have the lowest grade, but higher grades are expected as they progress. Three stopes are awaiting backfill as they commission the cement plant, which is crucial for proper mining sequence.
Q: Can you sequence more open pit ore to get better grades in the coming quarters?
A: Raphael Beaudoin confirmed that the open pit is ramping up well, with some extensions found. They are targeting 1,000 tonnes per day before year-end, which will provide flexibility and help drive costs down during the mill's commissioning and ramp-up.
Q: When do you expect results from the Boumadine anomaly?
A: Benoit La Salle, CEO, stated they are currently drilling and expect results before year-end. The anomaly is strong, and they are prioritizing lab results. The drilling is testing a new theory based on a massive geophysical anomaly.
Q: Are the backfill issues resolved now?
A: Raphael Beaudoin confirmed that the commissioning issues were minor, involving a small leak and clogged piping. These have been fixed, and they are back in business with the backfill plant.
Q: What grade profile should we expect over the next few quarters as you ramp up?
A: Raphael Beaudoin mentioned that they are seeing an increase in grades, with the open pit achieving over 200 grams per tonne in October. The underground grades are also improving as they develop more stopes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
