Aya Gold & Silver Inc. · TSX:AYA
Aya Gold & Silver — TD Securities Mining Conference 2023
33 slides from Aya Gold & Silver's conference presentation, January 2023
Slide 1: Building the Largest Pure-Play Silver Producer Globally
BUILDING THE LARGEST PURE-PLAY SILVER PRODUCER GLOBALLY TSX: AYA | OTCQX: AYASF TD Securities Mining Conference – January 25-27, 2023
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT The Zgounder Expansion Feasibility Study (“FS”) is based on a technical report entitled “NI43-101 TECHNICAL REPORT – FEASIBILITY STUDY ZGOUNDER EXPANSION PROJECT”, originally dated March 31, 2022, and amended on June 16, 2022 with an effective date of December 13, 2021 (the
Slide 3: Aya Management
AYA MANAGEMENT Benoit La Salle, FCPA, CPA Mustapha Elouafi Ugo Landry-Tolszczuk Elias Elias President & CEO President-Managing Director, Morocco Chief Financial Officer Vice-President, Legal & Corporate Secretary Benoit has over 25 years of experience as a corporate executive in Mustapha is an estab
Slide 4: Aya Board of Directors
AYA BOARD OF DIRECTORS Benoit La Salle, FCPA, CPA Robert Taub Natacha Garoute, CPA, CA Yves Grou, CPA, CA President & CEO, Director Chair Director Director Benoit has over 25 years of experience as a corporate executive in Robert is an entrepreneur in life sciences and investor in several Natacha ha
Slide 5: Zgounder Silver Mine – Cornerstone of Aya's Growth Story
ZGOUNDER SILVER MINE – CORNERSTONE OF AYA’s GROWTH STORY ▪ Commercial production in 2019 RABAT ▪ 2022 production of 1.88M oz ▪ 2024 production of ~7.9M oz, +394% CASABLANCA ▪ 96M oz M&I resources at 306 g/t Ag DEVELOPMENT UPSIDE ▪ Boumadine ▪ Tijirit – FS 85% complete, pending drilling AZEGOUR (Cu-M
Slide 6: 2022 Achievements – Delivering on Mine Expansion Plans and Exploration Growth
2022 ACHIEVEMENTS – DELIVERING ON MINE EXPANSION PLANS AND EXPLORATION GROWTH Reports top silver intercept amongst silver companies Mine expansion and exploration activities globally December 2022 supported by strong silver production and Consolidates ownership in the Reports record completion of ke
Slide 7: Aya – The Only TSX-Listed Pure Silver Producer
AYA – THE ONLY TSX-LISTED PURE SILVER PRODUCER 100% 80% 60% 40% 20% 0% Silver Gold Other Source: Desjardins Capital Markets, company reports *Developer, for which 2021 metal prices and latest technical report LOM payable production were used 7
Slide 8: Momentum from Increased Mechanization
ZGOUNDER – MOMENTUM FROM INCREASED MECHANIZATION Solid operational standard reached in 2021 via: ▪ Switch to cut-and-fill mining method ▪ Implementation of operating best practices ▪ Capital infrastructure and equipment 700,000 100 89.9% upgrades 82.8% 87.9% 86.2% 82% 81% 82.4% 90 78.9% 80.4% ▪ Recr
Slide 9: Morocco – Developing the Mining Sector Beyond Phosphates
MOROCCO – DEVELOPING THE MINING SECTOR BEYOND PHOSPHATES 36.6M Arabic, Amazigh & 710,850 km² inhabitants French-speaking 1920 1951 1951 - 1995 1995 - 1998 2016 2022 1914 First mining legislation First modern Revision of Mainly Moroccan Privatization of 114 Revision of 45 ONHYM projects mines mining
Slide 10: Strong Balance Sheet with Supportive, Long-Term Shareholders
STRONG BALANCE SHEET WITH SUPPORTIVE, LONG-TERM SHAREHOLDERS Our Shareholders 33% Family Exchanges – TSX: AYA | OTCQX: AYASF offices 25% Shares – Basic* 105.0M 15% USA 50% EUROPE 35% CANADA Institutional 22% Board & Insiders Shares – F.D. 116.3M 20% Retail Share Price (Jan. 18, 2023) C$ $8.43 Market
Slide 11: Aya / Zgounder Timeline
AYA / ZGOUNDER TIMELINE New management appointed Zgounder Millennium Operational turnaround Zgounder announced Imiter bis, Silver Mining (ZMSM) updated NI Amizmiz, Azegour created +2,000 tpd expansion FS 43-101 & projects acquired Boumadine acquired PEA filed launched for Zgounder 2008 2009-2011 201
Slide 12: Zgounder – Top Silver Intercepts Globally
ZGOUNDER – TOP SILVER INTERCEPTS GLOBALLY Top 50 global primary silver intercepts 2020 – 2022 YTD, ranked by Ag grade-thickness Zgounder, 1 85,450 Elizabeth Hill, 2 80,762 Filo del Sol, 3 77,683 La Colorada, 4 69,147 Breccia, 5 65,930 Zgounder reported 3 out of the top 10 and 14 out of the top 50 Di
Slide 13: Zgounder – Top Silver Intercepts
ZGOUNDER – TOP SILVER INTERCEPTS Zgounder top 50 all-time drill intercepts, ranked by Ag grade-thickness¹ ² 1 3,956g/t over 21.6m 2 4,101g/t over 14.4m 3 5,691g/t over 9.6m 4 3,043g/t over 14.4m 5 6,437g/t over 6.5m 2020-2022 YTD drill exploration program returned 42 of the 6 7 9,346g/t over 4.0m 7,
Slide 14: Zgounder – 2022 Mineral Reserves
ZGOUNDER – 2022 MINERAL RESERVES Maiden Silver Reserve On a 100% basis. M&I resources shown inclusive TONNES (K) AG (G/T) CONTENT ▪ The maiden reserve includes drilling carried out between of reserves. ¹ ² (AG K OZ) January and September 2021 PROVEN RESERVES 2,100 288 28,748 PROBABLE RESERVES 5,490
Slide 15: Zgounder – Expansion Feasibility Study Highlights
ZGOUNDER – EXPANSION FEASIBILITY STUDY HIGHLIGHTS LOM Production Profile 10,000,000 350 71Moz $373M 9,000,000 Total Ag oz produced P&P reserves Post-tax NAV (5%;$22/oz) Ag grade processed 300 8,000,000 7,000,000 250 Ag grade (g/t) $9.58 $139.4M 6,000,000 200 AISC (LOM) Growth capex Ag oz 5,000,000 1
Slide 16: Expanded operations will combine flotation-CIP and flotation-cyanidation plants
Expanded operations will combine: ▪ 2,000 tpd flotation-CIP plant and 700 tpd flotation-cyanidation plant ▪ Open-pit & UG operations TSX: AYA| OTCQX: AYASF
Slide 17: New Process Plant
ZGOUNDER | New Process Plant 2,700 tpd combined processing capacity TSX: AYA| OTCQX: AYASF
Slide 18: Strong Post-Expansion Cash Flow Generation
ZGOUNDER – STRONG POST-EXPANSION CASH FLOW GENERATION 250,000 600,000,000 Total Revenues After-Tax Cash flow Cumulative After-Tax Cash flow (undiscounted) 500,000,000 200,000 400,000,000 150,000 Total revenue (k$) 300,000,000 100,000 200,000,000 50,000 100,000,000 0 2022 2023 2024 2025 2026 2027 202
Slide 19: Zgounder – Strong Post-Expansion Economics
ZGOUNDER – STRONG POST-EXPANSION ECONOMICS $19 oz Ag BASE CASE SPOT $16 oz Ag $28 oz Ag $36 oz Ag $22 oz Ag ($23.5 oz Ag) AFTER-TAX 5% NPV ($M) $132M $253M $373M $433M $612M $927M AFTER-TAX IRR (%) 21% 34% 48% 54% 75% 117% UNDISCOUNTED LOM FREE $213M $368M $522M $599M $828M $1,232M CASH FLOW ($M) PA
Slide 20: Zgounder – Expansion Milestones on Track
ZGOUNDER – EXPANSION MILESTONES ON TRACK 2022 2023 2024 % completed Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 100% Feasibility study FEED 100% Long-lead purchasing 100% EPC offer 100% Detail engineering 50% Earth & civil works 40% Construction 10% Commissioning 00% First silver pour 00% Production ramp-up
Slide 21: Sustainability Focus to Lower Environmental Impact
SUSTAINABILITY FOCUS TO LOWER ENVIRONMENTAL IMPACT Reducing carbon emissions intensity ▪ Target of ZERO Scope 2 Emissions by 2024 ▪ Interconnection agreement with ONEE, Morocco’s state-owned utility ▪ Plan to sign a renewable power purchase agreement ▪ Evaluate a clean energy fleet-replacement strat
Slide 22: Zgounder Silver Mine
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS TSX: AYA | OTCQX: AYASF
Slide 23: Aya – 82,500-Metre Drill Exploration Program in 2022
AYA – 82,500-METRE DRILL EXPLORATION PROGRAM IN 2022 GROWTH PIPELINE INCLUDES FOUR POTENTIAL PROJECTS ZGOUNDER SILVER MINE ▪ 30,000m 2022 budget, of which 7,500m regionally ▪ Add near-mine oz and identify Zgounder Regional oz BOUMADINE (Development) ▪ 2022 budget expanded twice to 17,500m ▪ Drill ai
Slide 24: Zgounder – 22,500m Near-Mine Drill Program in 2022
ZGOUNDER – 22,500M NEAR-MINE DRILL PROGRAM IN 2022 M&I Mineral Resources with 2022 Initial Surface and Underground Drill Holes TSX | AYA 24
Slide 25: Zgounder Regional Exploration Program (Ag – Cu – Au)
ZGOUNDER REGIONAL EXPLORATION PROGRAM (Ag – Cu – Au) Comprehensive geophysics and mapping programs ▪ 748 grab samples taken to date across the exploration permits ▪ Prospective package for epithermal Ag, Au or Cu-Au vein mineralization ▪ Receipt of final data from airborne geophysics survey (magneti
Slide 26: Zgounder – Regional Drill Targets (Au – Ag – Cu)
ZGOUNDER – REGIONAL DRILL TARGETS (Au – Ag – Cu) Drill program will test five different targets • “Zgounder Far West” is the first test area ▪ The “Far West” returned anomalous values for Ag and Cu from grab samples (see right) ▪ Area exhibits same sedimentary units, similar alteration and same lith
Slide 27: Zgounder Regional – Tala and Izza Area Grab Samples
ZGOUNDER REGIONAL - TALA AND IZZA AREA GRAB SAMPLES (Ag – Cu – Au) • The Tala and Izza areas returned high-grade samples in Ag, Cu and Au associated with a very strong spectral alteration signature • 2023 priority drill areas Tala Area with Magnetics (Gradient RTP) and Ag Grab Samples Izza Area with
Slide 28: Boumadine – 2022 Drill Exploration Program
BOUMADINE – 2022 DRILL EXPLORATION PROGRAM RC and DDH Drill Program Ongoing ▪ 2022 drill program expanded twice to 17,500m ▪ Follow up promising results from initial program on the Imariren, Tizi and South-West Zones ▪ Extend mineralization to the south and at depth of the Central area ▪ Conduct ste
Slide 29: Boumadine – Drill Program
Indicated BOUMADINE – DRILL PROGRAM (Au-Ag-Pb-Cu-Zn) Results From 2022 Drill Program ▪ Identified 2.7 km mineralized trend and extension of the Central and South Zones after completing 11,772m of drilling on 6 different sections. ▪ Open at both ends along strike and at depth within 6 km hydrothermal
Slide 30: Imiter Bis – Drill Exploration Program
IMITER BIS – DRILL EXPLORATION PROGRAM (Au, Ag, Cu, Pb, Zn) 4 km potential at-surface polymetallic structure on Morocco’s sub-Atlas range, 5 km south of the world-class Imiter Silver Mine 10,000 DDH exploration program completed in 2022 ▪ Low-sulphidation epithermal system ▪ 4,754m of DDH (phase I)
Slide 31: Catalysts
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS TSX | AYA; OTCQX | AYASF 31
Slide 32: 2023 Catalysts
2023 CATALYSTS ❑ Instill strong ESG culture throughout the organization ❑ Continue operational optimization – focus on H&S and cost efficiencies ❑ Deliver 2023 milestones for 2,700 tpd Zgounder expansion ▪ Q1-2023 – Start of construction of new TSF ▪ Q2-2023 - Complete detail engineering, earth and
Slide 33: Benoit La Salle : Benoit.Lasalle@ayagoldsilver.com Alex Ball : Alex.Ball@ayagoldsilver.com
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
Aya Gold & Silver — TD Securities Mining Conference 2023 on 6ix