Aya Gold & Silver Inc. · TSX:AYA
Aya Gold & Silver — Investor Presentation (April 2023)
34 slides from Aya Gold & Silver's investor presentation, Apr 19, 2023
Slide 1: Building the Largest Pure-Play Silver Producer Globally
BUILDING THE LARGEST PURE-PLAY SILVER PRODUCER GLOBALLY TSX: AYA; OTCQX: AYASF
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 – Africa's Dominant Silver Producer
AYA – AFRICA’S DOMINANT SILVER PRODUCER Morocco- Significant Upside Climate change Financial and focused growth profile optionality leadership management strength Producing, Expanding Large mineral Clear, near-term Strong developing and Zgounder Silver resource base decarbonization management explor
Slide 4: Aya - Proven Management Team
AYA - PROVEN MANAGEMENT TEAM Benoit La Salle, FCPA, MBA 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 Mustap
Slide 5: Aya - Invested Board of Directors
AYA - INVESTED 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 experience as a corporate executive in Robert is an entrepreneur in life sciences and investor in several
Slide 6: Aya - 15-Year Timeline
AYA - 15-YEAR TIMELINE New management appointed Zgounder Millennium Operational turnaround Silver Mining (ZMSM) announced Imiter bis, Zgounder created +2,000 tpd expansion FS Amizmiz, Azegour updated NI 43- projects acquired Boumadine acquired 101 & PEA filed launched for Zgounder 2008 2009-2011 201
Slide 7: Morocco – Top Mining Jurisdiction
MOROCCO – TOP MINING JURISDICTION 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 code miners: OCP, SOMIF
Slide 8: Zgounder Silver Mine – Cornerstone of Aya's Growth Story
ZGOUNDER SILVER MINE – CORNERSTONE OF AYA’s GROWTH STORY ▪ 2022 production of 1.88M oz RABAT ▪ 2023 guidance of 1.7M – 1.9M oz CASABLANCA ▪ 2024 production of ~7.9M oz, +394% (based on FS) ▪ 96M oz M&I resources at 306 g/t Ag DEVELOPMENT UPSIDE ▪ Boumadine ▪ Tijirit – FS 85% complete, pending drilli
Slide 9: 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 2022 metal prices and latest technical report were used 9
Slide 10: Capital Structure – Robust Balance Sheet
CAPITAL STRUCTURE – ROBUST BALANCE SHEET Institutional Shareholder Breakdown¹ 32% Family Exchanges – TSX: AYA | OTCQX: AYASF offices 33% USA 16% CANADA Australia Institutional Shares – Basic* 116.2M 60% EUROPE 21% 3% and ROW 20% Board & 15% Shares – F.D. 127.0M Insiders Retail ¹ Based on 42.5M share
Slide 11: Strong Execution and Operational Efficiencies
ZGOUNDER – STRONG EXECUTION AND OPERATIONAL EFFICIENCIES Solid operational standard reached in 2021 via: ▪ Switch to cut-and-fill mining method ▪ Implementation of operating best practices 700,000 100 ▪ Capital infrastructure & equipment 82.8% 87.9% 86.2% 89.9% 82.4% upgrades 78.9% 82% 81% 80.4% 90
Slide 12: Zgounder – Industry-Low Discovery Costs
ZGOUNDER – INDUSTRY - LOW DISCOVERY COSTS In Moz Ag 110 96.1M oz 100 • Resources as a unit of total 90 Proven & probable reserves shares outstanding up >630% 25.2 to 96.1M oz since management 80 change in 2020 (0.124, 0.423, M&I resources 0.915 from 2020-2022) 70 • Industry-low discovery cost of 60
Slide 13: Zgounder – Top Silver Intercepts Globally
ZGOUNDER – TOP SILVER INTERCEPTS GLOBALLY Top 50 global primary silver intercepts 2020 – 2023 YTD, ranked by Ag grade-thickness Los Ricos, 1 118,399 Zgounder, 2 85,450 Elizabeth Hill, 3 80,762 Filo del Sol, 4 77,683 La Colorada, 5 69,147 Zgounder reported 3 out of the top 10 and 15 out of the top 50
Slide 14: 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 2020-2023 drill exploration program returned 44 of the top 6 7 9,346g/t over 4.0m 4,
Slide 15: Zgounder – Mineral Reserves
ZGOUNDER – MINERAL RESERVES Silver Reserves On a 100% basis. M&I resources shown inclusive TONNES (K) AG (G/T) CONTENT ▪ The reserves include drilling carried out between January of reserves. ¹ ² (AG K OZ) and September 2021 PROVEN RESERVES 2,100 288 28,748 PROBABLE RESERVES 5,490 239 42,128 ▪ Reser
Slide 16: 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
Slide 17: 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 18: Construction of Zgounder New Processing Plant, March 2023
CONSTRUCTION OF ZGOUNDER NEW PROCESSING PLANT│ March 2023 TSX: AYA | OTCQX: AYASF
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 on Budget
ZGOUNDER – EXPANSION ON BUDGET 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% Detailed engineering 77% Earth & civil works 55% Construction 25% Commissioning 00% First silver pour 00% Production ramp-up 00% Com
Slide 21: Aya – Achieving Sustainability Leadership
AYA – ACHIEVING SUSTAINABILITY LEADERSHIP Environmental stewardship and low-carbon strategy Priorities: water, tailings management and clean energy. 2024 near-zero Scope 2 emissions. . 52% Ongoing 20-year 85%¹ Water Global Industry Standard wind PPA Reduction in Scope recycled on Tailings Management
Slide 22: Aya – High Governance Standards
AYA – HIGH GOVERNANCE STANDARDS ACHIEVED IN THE LAST THREE YEARS SINCE ARRIVAL OF NEW MANAGEMENT TEAM 25% 75% 52% Alignment of executive pay to performance and shareholder interests Women Director Board & board members independence management holdings¹ Safety & HSCG 20% ▪ Implementation of high gove
Slide 23: Aya, Zgounder Silver Mine, Exploration, Catalysts
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS TSX: AYA | OTCQX: AYASF
Slide 24: Aya – Drill Exploration Program of 68,700m
AYA – DRILL EXPLORATION PROGRAM OF 68,700M GROWTH PIPELINE INCLUDES THREE PRIORITY PROJECTS ZGOUNDER SILVER MINE ▪ 26,000m 2023 budget for near-mine drilling ▪ Expand resource oz at depth BOUMADINE (Development) ▪ 2023 budget of 36,000m, +100% over 2022 budget ▪ Infill drill & explore along strike,
Slide 25: Zgounder – Near-Mine Drill Exploration Program
ZGOUNDER – NEAR-MINE DRILL EXPLORATION PROGRAM (Ag) M&I Mineral Resources with 2023 Initial Surface and Underground Drill Holes TSX | AYA 25
Slide 26: Zgounder Regional – Drill Exploration Program
ZGOUNDER REGIONAL – DRILL EXPLORATION PROGRAM (Ag, Au, Cu) 2023 drill program ▪ 6,700m of DDH will be completed before year-end 2023 ▪ Focus on following up 2022 results and testing new targets ▪ Prospective package for epithermal Ag, Au or Cu-Au vein mineralization ▪ Identification of five target a
Slide 27: Zgounder Regional – Zgounder Far West, Tala, and Izza Areas
ZGOUNDER REGIONAL – ZGOUNDER FAR WEST, TALA, AND IZZA AREAS ▪ Grab samples from the Tala and Izza areas returned high-grade Ag, Cu and Au, associated with a very strong spectral alteration signature ▪ Zgounder Far West returned anomalous Ag grab results ▪ 2023 priority drill areas Tala Area with Mag
Slide 28: Boumadine – Drill Exploration Program (2022)
Indicated BOUMADINE – DRILL EXPLORATION PROGRAM (2022) (Au, Ag, Pb, Cu, Zn) Results from 18,335m drill program in 2022 ▪ Confirmed mineralization of the main trend and extended the strike to 3.2 km Open at both ends along strike and at depth within 6 km hydrothermal system Drill exploration results
Slide 29: Boumadine – Drill Exploration Ongoing (2023)
BOUMADINE – DRILL EXPLORATION ONGOING (2023) 2023 DDH drilling expands the strike south with record intercept ▪ Drill results to date extend the main trend to 3.4 km, which remains open in all directions ▪ Identification of high-grade sulphide stockwork zone south of trend: ▪ Widest-ever mineralized
Slide 30: Boumadine – Longitudinal View of Main Zone
BOUMADINE – LONGITUDIONAL VIEW OF BOUMADINE MAIN ZONE 30
Slide 31: 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 4,754m DDH exploration program completed in 2022 ▪ Low-sulphidation epithermal system ▪ 4,754m of DDH (phase I)
Slide 32: Aya, Zgounder Silver Mine, Exploration, Catalysts
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS TSX | AYA; OTCQX | AYASF
Slide 33: Aya Catalysts / Milestones for 2023
AYA CATALYSTS/ MILESTONES FOR 2023 Continue operational optimization – focus on cost efficiencies and H&S Deliver 2023 milestones for 2,700 tpd Zgounder Silver Mine expansion ▪ Q1-2023 – Start construction of new TSF √ Completed ▪ Q2-2023 - Complete detail engineering; and begin OP operations ▪ Q3-2
Slide 34: 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
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