Casablanca – Aya Gold & Silver, a Canadian mining company with significant operations in Morocco, is making progress in expanding its Zgounder silver mine, despite facing operational delays that affected its third-quarter performance. The company, which reported a 6% decline in revenue year-over-year for Q3 2024, is now focused on overcoming these setbacks and ramping up production with the near-completion of its expansion project.

For the third quarter of 2024, Aya Gold & Silver generated $11 million in revenue, down from $11.7 million in Q3 2023. This decrease was attributed to temporary issues at the Zgounder mine, which impacted key operational milestones. Despite these challenges, the company remains confident that it will achieve its target of commercial production by the end of 2024.

Zgounder, located in Morocco’s Anti-Atlas Mountains, is one of the country’s most important silver mines. The expansion project, which is now more than 99% complete, is expected to significantly increase the mine’s output. During Q3 2024, the mine produced 355,927 ounces of silver, supported by a record 83,352 tonnes of processed ore. This marks a positive step, as the company continues to optimize operations ahead of the planned ramp-up to full capacity.

The expansion project at Zgounder is a critical part of Aya’s strategy to strengthen its position in the silver market. The mine’s capacity will increase after the expansion, with the company expecting production to reach 6.8 million ounces of silver annually once fully operational. This would mark a major increase from current levels, further solidifying Aya’s role as a key player in the silver mining sector.

Alongside the expansion, Aya has continued to invest in exploration. For 2024, the company has allocated $36 million to exploration activities, focusing particularly on its Moroccan assets. At the Boumadine polymetallic project, Aya aims to complete 120,000 meters of drilling, marking a 38% increase in exploration activity compared to the previous year. The company also plans to update its mineral resource estimate for Boumadine, based on five years of collected data.

Despite the challenges faced during Q3, Aya’s financial position remains strong. The company reported a cash balance of $73 million as of September 30, 2024, reflecting continued investments in both expansion and exploration projects. These efforts align with Aya’s long-term strategy to maximize value from its key assets in Morocco.

In a bid to streamline its portfolio, Aya also announced the spin-off of its Amizmiz and Tijirit gold properties to Mx2 Mining. This strategic move will allow Aya to focus more on its silver production, while benefiting from favorable market conditions in the gold sector.

As Aya Gold & Silver moves toward the completion of its Zgounder expansion and continues its exploration activities, the company is positioning itself for future growth, with expectations for increased production and stronger financial performance in the coming quarters.