Aya Gold & Silver Inc. · TSX:AYA
Aya Gold & Silver — Investor Presentation (March 2024)
34 slides from Aya Gold & Silver's investor presentation, March 2024
Slide 1: Building the Largest Pure-Play Silver Producer Globally
Investor Presentation March 2024 Building the Largest Pure-Play Silver TSX: Producer Globally AYA; OTCQX: AYASF 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 produce new resources estimates, and exploration results, including deposit size, quantities, grades TECHNICAL REPORT – FEASIBILITY STUDY ZGOUNDER EXPANSION PROJECT”, originall
Slide 3: Aya
Aya 1 Aya 2 Zgounder Silver Mine 3 Exploration 4 Catalysts TSX: AYA; TSX:OTCQX: AYA; OTCQX: AYASFAYASF 3
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 experience as a corporate Mustapha is an
Slide 5: Aya – Board of Directors
Aya – 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 Robert is an entrepreneur in life sciences and investor in Natacha has more than 20 year
Slide 6: Aya – Our History
Aya – Our History Zgounder flotation +700 tpd mill capacity Imiter bis, Amizmiz, plant commissioned achieved at Zgounder Azegour projects bringing production Construction start for Zgounder acquired Boumadine acquired capacity to 700tpd expansion 2009–2011 2013 2019 2022 2008 2012 2014 2020 2023 May
Slide 7: Aya – 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. TSX: AYA; OTCQX: AYASF *Denotes developer in 2023, for which 2023 metal prices and latest technical report were used 7
Slide 8: Morocco – Top Mining Jurisdiction
Morocco – Top Mining Jurisdiction By the numbers Phosphate – 1st producer in Africa, 4th worldwide 37M 1st Barite – 1st producer in Africa, 3rd worldwide inhabitants silver producer in Africa; 15th worldwide Fluorite – 2nd producer in Africa, 7th worldwide 2023 silver production (~6 million oz) Coba
Slide 9: Morocco – Developing the Mining Sector
Morocco – Developing the Mining Sector Mainly Moroccan miners: 2016 Baseline Mining Code Zgounder OCP, SOMIFER, SAMINE, SACEM, SMI, CTT & ONA Royalty 3% of sales First modern mines (now Managem) Revision of mining code 1920 1951–1995 2016 Tax rate* 25% State free-carried interest Nil Foreign ownersh
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 ▪ 2023 guidance of 1.7M – 1.9M oz ▪ Increase in 2024 production due to expansion RABAT ▪ 96M oz M&I resources at 306 g/t Ag* CASABLANCA Development Upside MAR
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 Board and insiders Exchanges – TSX:
Slide 12: Zgounder – Industry-Low Discovery Costs
Zgounder – Industry-Low Discovery Costs ▪ Resources as a unit of total shares outstanding up >630% to 96.1M oz since 2020 In Moz Ag 96.1M oz* Proven & probable reserves ▪ Industry-low discovery cost of $0.18 with only 25.2 M&I resources $15.3M spent All mineral resources are exclusive of mineral res
Slide 13: Zgounder – Top Silver Intercepts Globally
Zgounder – Top Silver Intercepts Globally Los Ricos, 1 118,399 Zgounder, 2 85,450 Elizabeth Hill, 3 80,762 Zgounder reported 3 out of the top 10 and 15 Filo del Sol, 4 La Colorada, 5 Breccia, 6 69,147 65,930 77,683 out of the top 50 global silver intersections Diablillos, 7 Diablillos, 8 64,287 61,2
Slide 14: Excellent 2023 Operations – Solid Start to 2024
Excellent 2023 Operations – Solid Start to 2024 Safely delivered on our operational commitments and guidance: +5% Silver YoY production growth ▪ Silver production of 1,970,646 oz, a 5% increase YoY ▪ Third consecutive production guidance beat ▪ 240% YoY increase in H&S training hours 3rd Consecutive
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% ▪ Implementation of operating best practices 82.8% 87.9%86.2% 87.1% 86.7% 90 600,000 86.6% ▪ Capital infrastructure & equipment upgra
Slide 16: Zgounder – Mineral Reserves
Zgounder – Mineral Reserves Silver Reserves On a 100% basis. M&I resources shown inclusive of reserves. ¹ ▪ The reserves include drilling carried out between January and September 2021 Tonnes Ag Content (K) (G/T) (Ag K Oz) ▪ Reserves include 29% open-pit and 71% Proven Reserves 2,100 288 28,748 unde
Slide 17: Zgounder – Expansion Feasibility Study Highlights
Zgounder – Expansion Feasibility Study Highlights 71Moz $373M LOM Production Profile* P&P reserves Post-tax NAV5% Total Ag oz produced Ag grade processed ($22/oz) 10,000,000 350 9,000,000 300 $139.4M $9.58 8,000,000 Growth capex AISC (LOM) 250 Ag grade (g/t) 7,000,000 Ag oz 6,000,000 200 5,000,000 1
Slide 18: TSX: AYA; OTCQX: AYASF
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: TSX: AYA; OTCQX: AYASF
a, a 5 CONSTRUCTION OF ZGOUNDER NEW oa PROCESSING PLANT | JANUARY 2024 =
Slide 20: Zgounder – Q4-2023 Expansion Highlights
Zgounder – Q4-2023 Expansion Highlights Tailings and water storage facilities are complete Installation of ball mill progressing well TSX: AYA; OTCQX: AYASF 20
Slide 21: Zgounder – Expansion 83% Complete at end of January 2024 and on Budget
Zgounder – Expansion 83% Complete at end of January 2024 and on Budget 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%) Fir
Slide 22: Aya – Achieving Sustainability Leadership
Aya – Achieving Sustainability Leadership Low-Carbon Strategy and Corporate Social Environmental Commitment Health and Safety Responsibility Priorities: water, tailings management and 2023 priorities: solidifying H&S processes, mine Priorities: national recruitment and clean energy. Near-zero Scope
Slide 23: Aya – Near-term Decarbonization Objectives
Aya – Near-term Decarbonization Objectives 88% Reduction in overall emissions Construction and in 2024-2025¹ 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: Aya – High Governance Standards
Aya – High Governance Standards Alignment of executive pay to performance Increased transparency Achieved in the last three and shareholder interests of ESG disclosure years since arrival of new Other in support of the below management team frameworks: Market performance 5% 10% 37% Women board membe
Slide 25: Exploration
Exploration 1 Aya 2 Zgounder Silver Mine 3 Exploration 4 Catalysts TSX: AYA; TSX:OTCQX: AYA; OTCQX: AYASFAYASF 25
Slide 26: Aya – 2023 Drilling Program of 119,000m in Morocco
Aya – 2023 Drilling Program of 119,000m in Morocco Growth Pipeline Includes Five Priority Projects Zgounder Silver Mine ▪ 10,842m completed of 29,000m budgeted in 2023 ▪ Follow up early 2023 results east of deposit and RC results in the southern part of the open pit Boumadine (Development) RABAT ▪ 2
Slide 27: Zgounder – At-Depth Drill Program (Ag) Ongoing on Near-Mine Permit
Zgounder – At-Depth Drill Program (Ag) Ongoing on Near-Mine Permit 29,000m budgeted for near-mine drilling in 2023 At-depth drill results confirm high-grade silver mineralization near the granite contact, with two holes hosted within the rhyolite, which was previously believed to be barren. Recent D
Slide 28: Zgounder Regional – Testing Possible East Extension & South Mirror in 2023
Zgounder Regional – Testing Possible East Extension & South Mirror in 2023 ▪ 3,000m drilling to test drill conceptual target under the Neocene cover (Tuffs) east of the granophyre ▪ Potential continuation of the Zgounder deposit (volcano-sediments). ▪ 3,000m to test drill southern contact of the rhy
Slide 29: Zgounder Regional – Expanded Drill Program and Land Package
Zgounder Regional –Expanded Drill Program and Land Package (Ag, Au, Cu) 2023 Drill Program of 14,000m ▪ 10,900m completed in December of 2023 program including 830m on Tourchkal ▪ H2-2023 drilling tested the potential continuation of the Zgounder deposit and a new target in Tourchkal ▪ Acquisition o
Slide 30: Boumadine – Accelerated Development (Au, Ag, Pb, Zn)
Boumadine – Accelerated Development (Au, Ag, Pb, Zn) Proving up Mineralization through Drilling¹ ▪ Expanded 76,000m drill program completed in early Jan. 2024 ▪ NI 43-101-compliant resource estimate expected in Q2-2024 ▪ Fieldwork (hyperspectral, mapping and prospecting) ongoing on 4 new permits ▪ H
Slide 31: Boumadine – Main Zone Open in All Directions, Along Strike and At-Depth
Boumadine – Main Zone Open in All Directions, Along Strike and At-Depth 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,
Slide 32: Tirzzit – Historical Copper Mine & Potential New District (Cu, Ag)
Tirzzit – Historical Copper Mine & Potential New District (Cu, Ag) Collection of 7 permits including the historical Tirzzit Copper Mine on Morocco’s Anti-Atlas range, 25 km south of Zgounder Through the June 2023 transaction, Aya acquires: ▪ Historical copper mine offering near-surface silver and co
Slide 33: 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 33
Slide 34: TSX: AYA; OTCQX: AYASF
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
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