Aya Gold & Silver Increases Revenue by 11.5% to $38 Million in 2022
(1) The Corporation reports non-GAAP measures, which include cash costs per silver ounce and free cash flow , which are widely
used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the methods used by
the Corporation to calculate such measures may differ from methods used by other companies with similar descriptions. See
“Non-GAAP Measures” on pages 20 & 21 of the Corporation’s Q4-2022 MD&A for a reconciliation of non-GAAP to GAAP measures.
(2) Non-GAAP Measures, consisting of cash and cash equivalents of $39,360,138 and restricted cash of $2,489,287.
PRESS RELEASE
Aya Gold & Silver Increases Revenue by 11.5% to $38 Million in 2022
Strong Start to 2023 with Expanded Exploration Program
Montreal, Quebec, March 29, 2023 - Aya Gold & Silver Inc. (TSX: AYA, OTCQX: AYASF) (“Aya” or the
“Corporation”) is pleased to announce financial and operational results for the fourth quarter and year
ended December 31, 2022. All amounts are in US dollars unless otherwise stated.
2022 Annual Highlights
• Record operations including silver production, recovery, availability, and ore processed.
• Record revenue and sales:
o Revenue of $38.2 million, an 11.5% increase from 2021.
o Silver sales of 1,935,154 oz, a 28% increase from 2021.
• Operating cash flow for the year of $9.6 million, compared to $17.5 million for 2021.
• Cash cost per silver ounce sold of $12.6 compared to $12.0 in 2021(1).
• Successful 21,645-meter (“m”) drill program at Zgounder which provided 15 of Zgounder’s top
50 intercepts.
• Conducted a 4,012m diamond drill hole (“DDH”) program on Zgounder Regional, testing target
areas informed by the spectral and prospecting campaigns.
• Explored the Corporation’s rich regional portfolio located along the South Atlas Fault:
o Boumadine: completed an 18,335m DDH program that extended the strike 23% to 3.2
kilometers (“km”) towards the south and discovered parallel zones along the main trend.
o Imiter bis: conducted a 4,754m DDH drill program and an airborne geophysics survey.
• Advanced Zgounder Mine expansion:
o Completed 4,170m of underground development as of end of January 2023.
o Advanced bulk earthworks to near-completion and launched civil works on site.
o Commenced construction of the new tailings and water storage facilities on schedule.
• Consolidated 100% ownership of Zgounder Mine through the acquisition of 15% interest from
the National Office of Hydrocarbons and Mines for approximately $5.2 million.
• Contributed to community health and education through renovation of schools and support
for both permanent and mobile health clinics.
• Solid financial position with $41.8 million of cash, cash equivalents and restricted cash. (²)
• Commenced trading on the OTCQX under the ticker symbol “AYASF”.
• Ranked 18th on the 2022 TSX30 as a top-performing stock with a 3 -year share appreciation
of 245%.
2023 Outlook and Year So Far
• Successfully completed a C$92 million (US$69 million) bought-deal public offering.
• Secured a $100 million debt financing package with the European Bank for Reconstruction
and Development (“EBRD”) and Climate Investment Funds’ Clean Technology Fund (“CTF”).
• Guidance of between 1.7 and 1.9 million ounces (“oz”) production at cash cost of $14.40/oz.
(1)
• Provided a path to near -zero Scope 2 emissions in 2024 by signing a renewable power
purchase agreement with Energie Éolienne du Maroc.
“2022 was a year of strong execution and strategic momentum," said Benoit La Salle, President and
CEO. “2022’s actions allowed us to mobilize almost $200 million in funds in Q1-2023, deliver record
results, begin the Zgounder Mine expansion, double the Boumadine drill program, and be recognized
as a top-performing stock in Canada for a second consecutive year . We are especially proud of our
sustainability progress: the ESG-linked project financing package; the significant steps towards
decarbonizing our expanded operations; and the development of a program to align our operations
with the goals of the Paris Agreement.
We entered 2023 in a robust financial position and with a strengthened project pipeline that shows
significant potential to deliver value for all stakeholders . Our confidence is underpinned by
advancement of Zgounder development, a strong balance sheet, alongside increasing sustainability-
driven innovation. Together with our committed team, we are well-positioned for continued excellence
in execution throughout this buildout year.”
2022 Operational and Financial Highlights
Key Performance Metrics 2022 2021 Variation
’22 vs ’21
Operational
Ore Processed (tonnes) 254,976 224,515 14%
Ore Mined (tonnes) 276,013 213,504 29%
Mill Average Feed Grade (g/t Ag) 265 269 (1.5%)
Mill Recovery (%) 86.6% 82.1% 4.5%
Silver Ingots Produced (oz) 855,351 692,392 24%
Silver in Concentrate Produced (oz) 1,025,356 908,254 13%
Total Silver Produced (oz) 1,880,707 1,600,646 18%
Silver Ingots Sold (oz) 921,242 640,499 44%
Silver in Concentrate Sold (oz) 1,013,912 874,057 16%
Total Silver Sales (oz) 1,935,154 1,514,556 28%
Avg. Net Realized Silver ($/oz) 19.76 22.65 (13%)
Cash Costs per Silver Ounce Sold (¹) 12.63 11.95 5.7%
Financial
Revenue 38,244,921 34,301,914 11%
Cost of sales 27,960,944 18,292,185 53%
Gross Margin 10,283,977 16,009,729 (36%)
Operating Income 1,839,799 5,879,000 (69%)
Net Earnings 1,469,320 1,272,142 15%
Operating Cash Flow 9,648,774 17,502,239 (45%)
Free Cash Flow (1) 5,118,103 13,087,685 (61%)
Cash and Restricted Cash (2) 41,849,425 84,185,219 (50%)
Shareholders
Earnings (Loss) per Share – basic 0.014 0.013 NM
Earnings (Loss) per Share – diluted 0.013 0.012 NM
(1,2) See footnotes (1, 2) on first page.
2022 Annual Financial & Operational Highlights
• Record Ag production of 1,880,707 oz , a 17.5% year -over-year increase in silver ounces
produced that is a direct result of the higher mining rate, mill throughput and recovery rate.
• Milling operations averaged 699 tonnes per day (“tpd”) for the year compared to 615 tpd in
2021, an increase of 13.6% . Combined mill recovery avera ged 86.6% compared to 82.1% in
2021, an increase of 4.5%.
• Cash flows generated by operating activities of $9,648,774 for the year, compared to
$17,502,239 generated in operating cash flows for 2021.
• Revenue from silver sales totaled $38,244,921 compared to $34,301,914 in 2021, an increase
of 11.5% due to a 28% increase in the volume of sales The increase in sales volume was
partially offset by a lower average realized price in 2022 of $19.76/oz (2021 – $22.65/oz).
• The Corporation had cash, cash e quivalents and restricted cash of $41,849,425 as at
December 31, 2022 compared to $84,185,219 as at December 31, 2021
• Net income for the year was $1,469,320 (diluted EPS of $0.013), compared to a net Income of
1,272,142 (diluted EPS of $0.012) in 2021. Net income for the year was attributable to an
increase in production and silver sales.
Fourth Quarter 2022 Financial & Operational Highlights
• Total Ag production of 661,621 oz in Q4 -2022, a 53% increase compared to Q4 -2021
attributable to a higher grade (364 g/t vs. 248 g/t) and silver recovery rate (89.9% vs. 82.4%).
• Cost of sales of $8,602,601 (Q4-2021 – $4,634,254) with an average cash cost per oz of $10.9
compared to $14.5/oz in Q4-2021.
• Gross margin increased by 39% to $4,719,205 compared to $3,390,868 in Q4-2021.
o This was due to the increase in the volume of sales during the period (669,506 oz sold
in Q4-2022 compared to 338,591 oz sold in Q4-2021).
• Revenue from Ag sales totaled $13,321,806 (Q4-2021 – $8,025,122), an increase of 66%.
• Operating cash flow of $3,639,235 in Q4-2022, a 74% increase compared to $2,088,055 in Q4-
2021
• Net income for the period was $2,035,094 (diluted EPS of $0.018), compared to a net loss of
($1,086,033) (diluted EPS of $(0.011)) in Q4-2021.
• Milling operations reached 688 tpd, surpassing design capacity of 670 tpd.
• Average combined mill recovery increased to 89.9% in the quarter compared to 82.4% in Q4 -
2021, an increase of 7.5%.
2022 Operations Review
2022 was a year focused on advancing the engineering work and commencing construction activities
for the Zgounder expansion, while ensuring efficient production. The project construction, mine
engineering, geology and maintenance department team s were also strengthened. Procedur es,
processes, mining and work methods continued to be refined. The Corporation produced a record
total of 1,880,707 oz Ag in 2022, a 17% increase from 2021. Mine production metrics improved across
the board. Mill metrics also improved to a combined silver recovery of 86.6% and mill availability of
91.7%.
Capital Projects
All capital projects in 2022 and particularly in Q4-2022 were primarily related to the mine expansion.
These projects include e arthworks; construction start of the tailing s pond and haulage road; mine
infrastructure, base camp and housing upgrades; site electrical distribution and redundancy; and an
underground workshop for mobile equipment.
Zgounder Development
In 2022, construction of the Zgounder Expansion Project continued to progress effectively, and the
following milestones had been achieved (as of January 31, 2023 unless otherwise stated):
• Over 4,170m of permanent underground development had been completed out of the 11,000m
program.
• Mobilization of the open-pit mining contractor expected in April 2023.
• Detailed engineering had advanced to over 60%.
• Fixed price Engineering Procurement and Construction (“EPC”):
o Detailed design of the process plant is being advanced by Duro Felguera as part of its
EPC contract.
o Procurement of the mechanical equipment packages neared completion.
o Fabrication of the 3.3-megawatt ball mill was 62% complete.
o Manufacturing of the crushing equipment had reached 90% completion.
• On-schedule start of construction o f a new tailings storage facility and new water storage
facility.
• Construction of power line underway for planned completion in Q1-2024.
• Award of contract for new 60/22 kilovolt electrical substation.
• Bulk earthworks were near-complete.
• Civil works began with construction of the leach tank foundations in February 2023.
2022 Successful Exploration Program
Zgounder
A total of 21,645m were drilled in the year on Zgounder with the aim of increasing reserves and
resources in the eastern portion of the deposit and at depth. A large portion of the exploration
program was carried out in the eastern part of the deposit to define the eastern portion of the deposit
for the proposed open pit. Several directional drill holes were carried out on the property to expand
the deeper areas of the deposits.
Zgounder Regional
In H1-2022, a comprehensive fieldwork program was carried out across Zgounder Regional properties
with a view to expanding the Corporation’s understanding of the geological structures and controls
of the permits and informing the H2 -2022 drill program. The fieldwork included an airborne
geophysics survey (magnetic, VTEM and radiometric); grab sampling; a hyperspectral program; and
a stream sediment campaign. Under the airborne geophysics survey, 8,543 -line km were flown over
the eleven exploration permits. A total of 1,061 grab samples were taken across the permits during
the year, generating multiple geological targets, particularly at the Zgounder Ouest, Izza and Tala
zones. In addition, the stream sediment program returned a total of 954 samples.
In Q3-2022, the final data from the fieldwork were combined, defining five target areas for the 2022
drill program, which commenced in early October. A 4,012m DDH program was carried out by year -
end 2022, and initial drilling results are expected in H1-2023.
Boumadine
In H1 -2022, a comprehensive fieldwork program was carried out on Boumadine to expand the
Corporation’s understanding of the mineralogy in the permits and to inform the 2022 drill program.
The fieldwork included an airborne geophysics survey; a hyperspectral survey; and a litho -
geochemistry program. The 349 -line km airborne geophysical survey was completed in April 2022
comprising magnetic, radiometric, and electromagnetic surveys. Data from the survey indicated the
presence of a conductive anomaly continuing down to at least 600m below surface along the main
trend, suggesting at-depth extension. Furthermore, the survey identified conductivity anomalies east
and west of main Boumadine trend. The hyperspectral survey outlined strong clay alteration over the
main trend and laterally.
A total of 18,335m of DDH were drilled in 2022, more than twice the original 7,500m budget. Results
confirmed polymetallic mineralization of the main trend and extended the strike to 3.2km towards the
south. The mineralization is open at both ends along strike and at depth within a six km hydrothermal
system.
Imiter bis
In 2022, Phase 1 of the planned drill program on Imiter bis completed 24 DDH for a total of 4,754m
DDH over four target areas (Northwest, Daoud, Northeast -Extension and Dilatation Zones).
Encouraging results were obtained in the North Zone including 3.94 g/t Au over 5.0m and 1.46g/t Au
over 11.5m. Phase II drilling, which had been scheduled for Q4 -2022, was postponed to focus on
Boumadine. The geology and Phase I results indicate the presence of a 4 -km potential at -surface
polymetallic structure hosted within a low -sulphidation epithermal system. Follow-up drill programs
will focus on finding the ‘boiling zone” that could host higher-grade mineralization.
In parallel to the drilling program, an airborne geophysical survey comprising magnetic, radiometric,
and electromagnetic surveying was completed over 554 linear km in 2022.
The technical information relating to the Zgounder, Boumadine and Imiter bis Projects was reviewed
and approved by David Lalonde, B. Sc, Head of Exploration, designated as a Qualified Person under
National Instrument 43-101.
2022 Sustainability Expansion
Aya is committed to maintaining a culture of accountable mining through high standards of
Environment, Social and Governance (“ ESG”) practices and minimising the impact of its operations
on its people, its communities and on the natural environment.
During the year, the Corporation continued to implement its Environment and Social Management
System that is aligned with EBRD performance requirements. ESG policies and practices are being
embedded across the business, and the Corporation reports on its ESG performance though its Global
Reporting Initiative-compliant Sustainability report.
In a context where a growing number of companies a re engaging in decarbonization roadmaps and
aligning with the recommendations of the Task Force on Climate -related Financial Disclosures
(“TCFD”), the Corporation appointed Ernst & Young to review and assist the Corporation in enhancing
its corporate gover nance for effective climate action. Under the project, a 3-year implementation
program has been developed to support the Corporation in aligning its operations with the goals of
the Paris Agreement. A first analysis has been conducted to assess the gap bet ween Aya’s current
practices and those recommended by the TCFD, supplemented by those of the EBRD Climate
Corporate Governance framework. Achievement of certain milestones of the plan will reduce the
effective interest rate of the CTF tranche of the Zgounder project loan.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a rapidly growing, Canada -based silver producer with operations in the
Kingdom of Morocco.
The only TSX-listed pure silver mining company, Aya operates the high -grade Zgounder Silver Mine
and is exploring its properties along the prospective South-Atlas Fault, several of which have hosted
past-producing mines and historical resources. Aya’s Moroccan mining assets are complemented by
its Tijirit Gold Project in Mauritania, which is being advanced to feasibility.
Aya’s management team is focused on maximising shareholder value by anchoring sustainability at
the heart of its operations, governance, and financial growth plans.
For additional information, please visit Aya’s website at www.ayagoldsilver.com.
Or contact:
Benoit La Salle, FCPA MBA
President & CEO
Alex Ball
VP, Corporate Development & IR
Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information within the
meaning of applicable securities laws (“forward-looking statements”), which reflects management's
expectations regarding Aya’s future growth and business prospects (including the timing and
development of new deposits and the success of exploration activities) and other opportunities.
Wherever possible, words such as “will”, “secured”, “guidance”, “path”, “potential”, “deliver”,
“committed”, “continue”, “progress”, “align”, “achieve”, “plan”, “expect”, “designed to”, “aims to”,
“objective”, “guidance”, extend”, “growth”, “advance”, “expected”, “increase”, and similar expressions
or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are
“likely” to be taken, occur or be achieved, have been used to identify such forward-looking information.
Specific forward-looking statements in this press release include, but are not limited to, statements
and information with respect to the exploration and developmen t potential of Zgounder and the
conversion of Inferred Mineral Resources into Measured and Indicated Mineral Resources, future
opportunities for enhancing development at Zgounder, executing on the planned expansion at the
Zgounder mine, and timing for the release of the Company's disclosure in connection with the
foregoing. Although the forward -looking information contained in this press release reflect
management's current beliefs based upon information currently available to management and based
upon what management believes to be reasonable assumptions, Aya cannot be certain that actual
results will be consistent with such forward -looking information. Such forward -looking statements
are based upon assumptions, opinions and analysis made by management in light of its experience,
current conditions, and its expectations of future developments that management believe to be
reasonable and relevant but that may prove to be incorrect. These assumptions include, among other
things, the closing and timing of financing, the ability to obtain any requisite governmental approvals,
the accuracy of Mineral Reserve and Mineral Resource Estimates (including, but not limited to, ore
tonnage and ore grade estimates), silver price, exchange rates, fuel and energy costs, future economic
conditions, anticipated future estimates of free cash flow, and courses of action. Aya cautions you
not to place undue reliance upon any such forward -looking statements. The risks and uncertainties
that may affect forward -looking statements include, among others: the inherent risks involved in
exploration and development of mineral properties, including government approvals and permitting,
changes in economic conditions, changes in the worldwide price of silver and other key inputs,
changes in mine plans (i ncluding, but not limited to, throughput and recoveries being affected by
metallurgical characteristics) and other factors, such as project execution delays, many of which are
beyond the control of Aya, as well as other risks and uncertainties which are mo re fully described in
Aya's 2021 Annual Information Form dated June 16, 2022, and in other filings of Aya with securities
and regulatory authorities which are available on SEDAR at www.sedar.com. Aya does not undertake
any obligation to update forward -looking statements should assumptions related to these plans,
estimates, projections, beliefs and opinions change. Nothing in this document should be construed
as either an offer to sell or a solicitation to buy or sell Aya securities. All references to Aya include its
subsidiaries unless the context requires otherwise.