Aya Gold & Silver Reports Second Quarter 2020 Financial Results
PRESS RELEASE
Aya Gold & Silver Reports
Second Quarter 2020 Financial Results
Montreal, Quebec, September 2nd , 2020 - Aya Gold & Silver Inc. (TSX: AYA) (“Aya” or the
“Corporation”) is pleased to announce its interim financial results for the second quarter ended June 30,
2020. All amounts are in US dollars unless otherwise stated.
Quarterly highlights:
On April 24, 2020 the Corporation appointed Mr. Benoit La Salle FCPA, CPA as President, CEO
and Director, and Robert Taub as Chairman of the Board.
Silver ingot production for the quarter was 101,321 ounces (“oz”) (Q2-2019 – 78,934 oz).
Silver sales for the quarter were 115,743 oz (Q2-2019 – 87,000 oz) an increase of 33% compared
to the second quarter of 2019.
Ore processed during the second quarter was 28,841 tons (‘t’) (Q2-2019 – 32,094t) a decrease of
10% compared to the same quarter last year.
Feed ore to the mill was 216.8 grams per ton Ag (“g/t”) (Q2-2019 – 218.0 g/t).
Cost of sales during the quarter were $1,614,342 (Q2-2019 – $600,081).
The average silver price realized during quarter was $17.21/oz vs $16.33/oz average silver spot
price in the quarter.
A full review of the Corporation’s inventories was conducted resulting in an inventory write-
down of $1,057,638.
Three -month periods ende d June 30,
Key Performance Metrics Q2-2020 Q2-2019
%
Variation
Operational
Ore Processed (tons) 28,841 32,094 (10)
Average Grade (g/t Ag) 216.8 218.1 (1)
Mill Recovery (%) 61.7% 61.4% 1
Silver Ounces Produced (oz) 101,321 78,934 28
Silver Ounces Sold (oz) 115,743 87,000 33
Average Realized Silver Price ($/Oz) $17.21 $17.30 (1)
Financial
Revenues 2,040,753 1,504,981 36
Operating (Loss) (1,378,899) 776,487 (278)
Net (Loss) Earnings (1,194,493) 698,705 (271
Operating Cash Flows (895,512) (209,785) 327
Cash 14,410,577 17,210,222 (16)
Change in Working Capital (179,446) (1,096,948) (84
Shareholders
(Loss) Earnings per Share – basic & diluted (0.015) 0.009
Financial Highlights Q2-2020 vs Q2-2019:
In the second quarter, revenues from silver sales totaled $2,040,753 (Q2-2019 – $1,504,981). The
Corporation sold more silver than it produced in the quarter as shipment delays due to COVID-
19 and low silver prices increased Q1 inventory.
Net loss for the quarter was ($1,194,493) (EPS of ($0.015)), compared to a net gain of $698,705
(EPS of $0.009) for the same period in 2019. Net lo ss for the quarter was attributable to an
inventory write down of $1,057,638 after a thorough review of the Corporation’s inventory.
Operations generated a gross margin of ($663,230) compared to Q2-2019 of $888,380.
Comprehensive income for the quarter of $652,285, compared to $1,512,218 in the same quarter
of last year. Most of this gain is attributable to a foreign currency translation adjustment gain of
$1,846,778 compared to a foreign currency translation adjustment gain of $813,513 in Q2-2019.
Cash flows used by operating activities for the qua rter of ($895,512), compared to ($209,785)
used in operating cash flows for Q2-2019.
Cash of $14,410,577 as at June 30, 2020 compared to $17,210,222 as at June 30, 2019.
Zgounder Silver Mine
The Zgounder silver mine continued to have some ope rational challenges including tailings facility
management, fresh water supply, general maintenance issues and grid power supply instability. As a
result, availability of the concentrator was 77.6% and silver recovery was 61.7% similar to the same
quarter last year with 61.4%. Silver grade fed to t he mill was 216.8 g/t Ag compared to 218.1/t Ag in
Q2-2019. Repairs to the tailing’s facility are ongo ing and will be completed before the rainy season
which begins in December. Water supply issues have been identified and rectified in Q3. COVID-19
continues to impact our operations as movement within the country is limited and it is difficult to bring
contractors to site. This situation will persist until the pandemic is controlled in Morocco.
Exploration at the Zgounder silver mine was halted during the second quarter. Exploration restart is
planned for Q3-2020.
Boumadine Polymetallic Project
Drilling at the property was halted in Q2. The next step for the Boumadine project is to continue working
on metallurgical test work with the goal of improvi ng gold, zinc and lead recovery. Drilling work to
support ongoing metallurgical testing will occur in the second half of 2020.
Azegour, Amizmiz, Toulkine Properties
As of June 2 nd , 2020, the Corporation has received exploitation l icenses for each property. The
expiration date for the Toulkine and Amizmiz properties is May 16, 2029. The expiration date for the
Azegour property is June 1, 2030. All the permits are renewable after the initial term.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a publicly traded Canadian company focused on the operation, exploration,
acquisition and development of silver and gold deposits. Aya is currently operating mining and milling
facilities at its Zgounder Silver Mine, an 85%-15% joint venture between its subsidiary, ZMSM, and
the Office National des Hydrocarbures et des Mines (“ ONHYM ”) of the Kingdom of Morocco.
Its mining portfolio also includes the Boumadine po lymetallic deposit located in the Anti-Atlas
Mountains of Eastern Morocco which is also a joint venture with ONHYM wherein Aya retains an
85% ownership. Additionally, the Corporation’s port folio includes the Amizmiz and Azegour
properties, both being 100% owned, with gold, tungs ten, molybdenum and copper occurrences
covering over 100 square kilometres in a historical mining district of Morocco.
For additional information, please visit Aya’s website at www.ayagoldsilver.com
Or contact:
Benoit La Salle, FCPA FCA
President & CEO
Tel: +1 (514) 951-4411
benoit. [email protected]
Alex Ball
Corporate Development & IR
Tel: +1 (647) 919-2227
Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of Canadian securities
legislation. All information contained herein that is not clearly historical in nature may constitute
forward-looking information. Generally, such forward-looking information can be identified by the use
of forward-looking terminology such as “will”, “con tinue”, “provide”, “present”, “reasonable”,
“established”, “has”, “demonstrate”, “potential”, “expect” or variations of such words and phrases or
state that certain actions, events or results "may" , "could", "would" or "might". Forward-looking
information is subject to known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or a chievements of the Corporation to be materially
different from those expressed or implied by such f orward-looking information, including but not
limited to: (i) volatile stock price; (ii) the gene ral global markets and economic conditions; (iii) t he
possibility of write-downs and impairments; (iv) the risk associated with exploration, development and
operations of mineral deposits including the accura cy of the current mineral reserve and mineral
resource estimates of the Corporation (including, b ut not limited to, ore tonnage and ore grade
estimates) and mine plans for the Corporation’s min ing operations (including, but not limited to,
throughput and recoveries being affected by metallurgical characteristics); (v) the risk associated with
establishing title to mineral properties and assets including permitting, development, operations and
production from the Corporation’s operations being consistent with expectations and projections; (vi)
fluctuations in commodity prices and other risks an d factors described or referred to in the section
entitled "Risk Factors" in the MD&A of the Corporation and which is available at www.sedar.com, all
of which should be reviewed in conjunction with the information found in this news release
Although the Corporation has attempted to identify important factors that could cause actual results to
differ materially from those contained in the forwa rd-looking information, there may be other factors
that cause results not to be as anticipated, estima ted or intended. There can be no assurance that suc h
forward-looking information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such forward-l ooking information. Such forward-looking
information has been provided for the purpose of assisting investors in understanding the Corporation's
business, operations and exploration plans and may not be appropriate for other purposes. Accordingly,
readers should not place undue reliance on forward-looking information. Forward-looking information
is given as of the date of this press release, and the Corporation does not undertake to update such
forward-looking information except in accordance with applicable securities laws.