Aya Gold & Silver Inc. · TSX:AYA
Aya Gold & Silver — Q1 2024 Earnings Presentation
36 slides from Aya Gold & Silver's earnings presentation, May 15, 2024
Slide 1: Building the largest pure-play silver producer globally
Building the largest INVESTOR PRESENTATION pure-play silver MAY 2024 producer globally TSX: AYA | OTCQX: AYASF TSX: AYA; OTCQX: AYASF
Slide 2: Forward-Looking Statements
Forward-Looking Statements The Zgounder Expansion Feasibility Study (“FS”) is based on a technical report entitled “NI43-101 estimates, and exploration results, including deposit size, quantities, grades and contained metals, The Zgounder TECHNICAL Expansion REPORT Feasibility Study – FEASIBILITY ST
Slide 3: Agenda
1 AYA 1. Aya 2. Zgounder Silver Mine 3. Exploration 4. Catalysts
Slide 4: Aya Proven Management Team
Aya Proven Management Team Benoit La Salle, FCPA, MBA Mustapha Elouafi Ugo Landry-Tolszczuk Elias Elias President & CEO, Director President-Managing Director, Chief Financial Officer Chief Legal and Morocco Sustainability Officer Benoit has over 25 years of Ugo’s involvement with Africa experience a
Slide 5: Aya Experienced Board of Directors
Aya Experienced Board of Directors Benoit La Salle, FCPA, MBA Robert Taub Natacha Garoute, CPA, CA Yves Grou, CPA, CA President & CEO, Director Chair Director Director Benoit has over 25 years of Natacha has more than 20 years experience as a corporate executive Robert is an entrepreneur in life sci
Slide 6: Aya Our History
Aya Our History Imiter bis, Amizmiz, Azegour +700 tpd mill capacity achieved at Zgounder projects acquired Zgounder flotation Construction start for Zgounder expansion 2009–2011 plant commissioned Boumadine acquired bringing production capacity to 700tpd 2022 2013 2019 2012 2020 2023 New management
Slide 7: The Only TSX-Listed Pure-Play Silver Producer
Aya The Only TSX-Listed Pure-Play Silver Producer 100% 80% 60% Silver Gold 40% Other 20% 0% Source: Desjardins Capital Markets, company reports. *Denotes developer in 2023, for which 2023 metal prices and latest technical report were used TSX: AYA; OTCQX: AYASF 7
Slide 8: Morocco Top Mining Jurisdiction
Morocco Top Mining Jurisdiction By the numbers Phosphate – #16 Investment Attractiveness Global Index 1st producer #17 Policy Perception Global Index in Africa, 4th worldwide Fraser Institute Annual Survey of Mining Companies, 2022 Barite – 1st producer in Africa, 3rd worldwide 710,850 km2 Fluorite
Slide 9: Morocco Developing the Mining Sector
Morocco Developing the Mining Sector Mainly Moroccan miners: 2016 Baseline Mining Code OCP, SOMIFER, SAMINE, SACEM, Revision of mining Zgounder First modern mines SMI, CTT & ONA (now Managem) code 3% of Royalty sales 1920 1951–1995 2016 Tax rate* State free-carried 25% Nil interest Foreign ownership
Slide 10: Our Assets Morocco-Focused, Quality Growth Portfolio
Our Assets Morocco-Focused, Quality Growth Portfolio Zgounder Silver Mine – Cornerstone of Aya’s Growth Story • 2023 production of 1.97M oz • 2024 guidance of 2.6M – 3.2M oz Ag • Increase in 2024 production due to partial expanded capacity • 96M oz M&I resources at 306 g/t Ag* Development Upside • B
Slide 11: Capital Structure Robust Balance Sheet
Capital Structure Robust Balance Sheet Institutional Shareholder Breakdown1 60% USA 15% Board & Management 16% Europe 32% Family offices2 21% Canada 33% Institutional 3% Australia & ROW 20% Retail 1 Based on 42.5M shares institutional ownership 2 Affiliated with Aya Board and insiders Exchanges – TS
Slide 12: Industry-Low Discovery Costs
Industry-Low Discovery Costs • Ag resource as a unit of total shares outstanding up In Moz AgEq >7x to 448Moz AgEq since Q2-2020 3.45 Inferred (Zgounder & Boumadine) • Industry-low discovery cost of $0.10 and industry- high AgEq per share growth M&I and Reserves (Zgounder & Boumadine) 0.98 318.1 129
Slide 13: Zgounder Top Silver Intercepts Globally
Zgounder Top Silver Intercepts Globally Zgounder reported 3 out of the top 10 and 15 out of Los Ricos, 1 Zgounder, 2 85,450 118,399 the top 50 global silver intersections of 2020-2023¹ 80,762 Elizabeth Hill, 3 Filo del Sol, 4 77,683 La Colorada, 5 69,147 Breccia, 6 65,930 • 21.6m @ 3,956 g/t Ag Diab
Slide 14: Excellent Momentum Created for 2024
2023 Excellent Momentum Created for 2024 Delivered a record year: • Generated record revenue, earnings and operating cash flow +5% • Record production of 1.97M oz and third consecutive production guidance Silver YoY production growth beat • 240% YoY increase in H&S training hours • 86% reduction in
Slide 15: Zgounder Strong Execution and Operational Efficiencies
Zgounder Strong Execution and Operational Efficiencies Solid operational standard reached in 2021 by: 700,000 89.9% 100 ▪ Switch to cut-and-fill mining method 87.3% 82.8% 87.9%86.2% 87.1% ▪ Implementation of operating best practices 600,000 86.6%86.7% 90 78.9% 82% 81%82.4% 80.4% ▪ Capital infrastruc
Slide 16: Zgounder Mineral Reserves
Zgounder Mineral Reserves Silver Reserves On a 100% basis. M&I resources shown inclusive of • The reserves include drilling carried out between reserves.¹ January and September 2021 Tonnes Ag Content (K) (G/T) (Ag K Oz) • Reserves include 29% open-pit and 71% underground ore Proven Reserves 2,100 28
Slide 17: Zgounder Expansion Feasibility Study Highlights
Zgounder Expansion Feasibility Study Highlights 71Moz $373M LOM Production Profile* P&P reserves Post-tax NAV5% ($22/oz) 10,000,000 350 9,000,000 300 8,000,000 $139.4M $9.58 7,000,000 250 Growth capex AISC (LOM) 6,000,000 200 5,000,000 150 11-year 48% 4,000,000 3,000,000 100 LOM Post-tax IRR ($22/oz
Slide 18: Expanded operations will combine
Expanded operations will combine: • 2,000 tpd Merrill-Crowe plant and 700 tpd flotation-cyanidation plant • Open-pit & UG operations TSX: AYA; OTCQX: AYASF
Slide 19: Construction of Zgounder New Processing Plant
2 CONSTRUCTION OF ZGOUNDER NEW PROCESSING PLANT March 2024 TSX: AYA; OTCQX: AYASF
Slide 20: Zgounder Expansion Quarterly Spotlight at YE-2023
Zgounder Expansion Quarterly Spotlight at YE-2023 90% of electrical pylons erected, and 30% of cabling installed at YE Water storage basins were completed before annual rainfall TSX: AYA; OTCQX: AYASF 20
Slide 21: Zgounder Expansion Quarterly Spotlight at YE-2023
Zgounder Expansion Quarterly Spotlight at YE-2023 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Feasibility study (100%) FEED (100%) Long-lead purchasing (100%) EPC offer (100%) Detailed engineering (100%) Earth & civil works (100%) Construction (60%) Commissioning (0%) First silver pour (0%) P
Slide 22: Achieving Sustainability Leadership
Aya Achieving Sustainability Leadership Low-Carbon Strategy and Corporate Social Environmental Commitment Health and Safety Responsibility Priorities: water, tailings management and 2024 priorities: consolidating management Priorities: national recruitment and clean energy. Near-zero Scope 2 emissio
Slide 23: Near-term Decarbonization Objectives
Aya Near-term Decarbonization Objectives 88% Reduction in overall emissions Construction and in 2025¹ ramp-up of new mill ¹ Compared to base year of 2021. Objective does not include Scope 3 emissions. TSX: AYA; OTCQX: AYASF 23
Slide 24: Near-term Decarbonization Objectives
Aya Near-term Decarbonization Objectives Achieved in the last three Alignment of executive pay to performance Increased transparency years since arrival of new and shareholder interests of ESG disclosure management team in support of the below Other frameworks: 5% 37% Women board Market performance
Slide 25: Exploration
3 EXPLORATION 1. Aya 2. Zgounder Silver Mine 3. Exploration 4. Catalysts
Slide 26: 2024 Drill Program of 145,000m Focusing on Boumadine
Aya 2024 Drill Program of 145,000m Focusing on Boumadine Zgounder Silver Mine • Budget of 15,000m • Follow up underground targets generated by 2023 program Boumadine (Development) • 27,122m completed of 120,000m budgeted • 60,000m: explore and expand 5km strike • 60,000m: test new targets • MobileMT
Slide 27: Zgounder At-depth Drilling Prioritized on Near-Mine Permits in 2024
Zgounder At-depth Drilling Prioritized on Near-Mine Permits in 2024 15,000m budgeted in 2024, 9,900m of the program drilled YTD At-depth drill results to date confirm high-grade silver mineralization near the granite contact, with two holes hosted within the rhyolite, which was previously believed t
Slide 28: Zgounder Regional Testing Possible East Extension & South Mirror
Zgounder Regional Testing Possible East Extension & South Mirror in 2024 • 2,000m drilling to test drill conceptual target under the Neocene cover (Tuffs) east of the granophyre • Potential continuation of the Zgounder deposit (volcano-sediments). • 2,000m to test drill southern contact of the rhyol
Slide 29: Tirzzit Test Drilling Cu-Ag Mineralization in 2024
Tirzzit Test Drilling Cu-Ag Mineralization in 2024 (Cu, Ag) Historical copper mine offering near-surface silver and copper mineralization potential, with historical drilling intercepts of up to 3.5% Cu • 3,000m drill program to test Cu-Ag mineralization in 2024 • 2024 program informed by 2023 fieldw
Slide 30: Boumadine 2024 Resource Highlights
Boumadine 2024 Resource Highlights (AgEq, AuEq, Cu, Pb, Zn) Highlights¹ Indicated resources of 2.0Mt at 113 g/t Ag, 2.51 g/t Au, 4.32% Zn and 1.07% Pb containing an estimated 7.4 Moz of Ag, 165 koz of Au, 88 kt of Zn and 22 kt of Pb Inferred resources of 23.6Mt at 85g/t Ag, 2.62 g/t Au, 2.32% Zn and
Slide 31: Boumadine Robust Mineral Resource Estimate
Boumadine Robust Mineral Resource Estimate¹ ² ³ (AuEq, AgEq, Cu, Pb, Zn) Potential to increase deposit in all directions Average Grade² Contained Metal² Cutoff Tonnes Ag Au Cu Pb Zn AgEq AuEq Ag Au Cu Pb Zn AgEq AuEq NSR (kt) (g/t) (g/t) (%) (%) (%) (g/t) (g/t) (koz) (koz) (kt) (kt) (kt) (koz) (koz)
Slide 32: Boumadine 2024 Accelerated Development
Boumadine 2024 Accelerated Development (Au, Ag, Pb, Zn) Through drilling¹ • 27,122m of 120,000m budgeted drill program completed • 60,000m – expand 5km open-ended strike and infill • 60,000m – test hypotheses and generate new drill targets • Fieldwork (hyperspectral, mapping and prospecting) ongoing
Slide 33: Boumadine Expand Main Zone Strike, Open in All Directions
Boumadine Expand Main Zone Strike, Which is Open in All Directions Drilling Highlights1 • 1,039 g/t AgEq over 23.5m (6.41 g/t Au, 116 g/t Ag, 4.7% Zn, 0.6% Pb and 0.4% Cu) • 763 g/t AgEq over 38.3 m (1.53 g/t Au, 311 g/t Ag, 4.4% Zn, 1.8% Pb and 0.04% Cu) • 474 g/t AgEq over 30.1m (2.57 g/t Au, 85 g
Slide 34: Amizmiz Expand and Test Historical Work
Amizmiz Expand and Test Historical Work (Au) Expand understanding of Amizmiz mineralization: Schematic cross section of Amizmiz • Mining permit located 55km SSW of Marrakech and 12km from historical Azegour Mine. • Follow up on detailed geological and structural mapping that identified mineralized z
Slide 35: Aya Catalysts
Aya Catalysts • Boumadine resource estimate • Zgounder & Boumadine drill program results • Zgounder Silver Mine expansion • Achieve 2024 silver production and cost guidance • Achieve 2024 ESG milestones of EBRD-CTF loan agreement TSX: AYA; OTCQX: AYASF 35
Slide 36: Contact
1320 GRAHAM, SUITE 132 VILLE MONT-ROYAL, QC H3P 3C8 BENOIT LA SALLE: Benoit.Lasalle@ayagoldsilver.com ALEX BALL: Alex.Ball@ayagoldsilver.com www.ayagoldsilver.com | info@ayagoldsilver.com TSX: AYA | OTCQX: AYASF TSX: AYA; OTCQX: AYASF