Aya Gold & Silver Inc. · TSX:AYA
Aya Gold & Silver — Q2 2024 Earnings Presentation
38 slides from Aya Gold & Silver's earnings presentation, Aug 14, 2024
Slide 1: Unlocking silver growth in Morocco
INVESTOR Unlocking silver PRESENTATION growth in Morocco AUGUST 2024 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 Annie Torkia Lagacé Yves Grou, CPA, CA President & CEO, Director Chair Director Director Benoit has over 25 years of Annie brings over 20 years of legal and experience as a corporate executive Robert is an entrepreneur in life
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: Q2-2024 Robust Quarter in Milestone Year
Q2- 2024 Robust Quarter in Milestone Year Continued advancing Zgounder Mine expansion to plan: • On schedule and budget for commercial production in Q4-2024 +95% • Stockpile of 309,926t of ore at quarter-end for commissioning of new mill Of Zgounder expansion complete Delivered a more typical Zgound
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% 84.7% ▪ Capital infra
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's New Processing Plant
CONSTRUCTION OF ZGOUNDER’S NEW PROCESSING PLANT August 2024
Slide 20: Zgounder Expansion on Track for Q3-2024 Ore Feed
Zgounder Expansion / On Track for Q3-2024 Ore Feed On budget: • On track to complete expansion within the capital cost estimate Underground development on track: • 96% of lateral and 83% of vertical development completed Progressing to plan: • Electrical works, instrumentation and piping; Merrill Cr
Slide 21: Zgounder Expansion Quarterly Spotlight
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%) Beginning of EPC offer (100%) Commissioning Detailed engineering (100%) Activities June 26, 2024 Earth & civil works (100%) Constructi
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: Governance and Executive Pay Alignment
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 160,000m Focusing on Boumadine
Aya 2024 Drill Program of 160,000m Focusing on Boumadine Zgounder Silver Mine • 15,000m program completed and doubled to 30,000m • Follow up promising H1-2024 underground targets Boumadine (Development) • 42,073m completed of 120,000m budgeted • 60,000m: explore and expand 5km strike • 60,000m: test
Slide 27: Zgounder At-depth Drilling Prioritized on Near-Mine Permits
Zgounder At-depth Drilling Prioritized on Near-Mine Permits in 2024 16,630m completed, and program doubled to 30,000m Drill results to date confirm continuity of high- grade silver mineralization at depth including near the granite contact. Recent Drill Result Highlights1 • 1,089 g/t Ag over 13.5m,
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 • Airborne regional MobileMT survey completed in H1-2024 • 3,000m drill program to test Cu-Ag mine
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 • 42,073m 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 • NI 43-101-compliant resource estimate filed in May 2024 th
Slide 33: Boumadine Expand 5km Strike, Open in All Directions
Boumadine Expand 5km 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/t Ag,
Slide 34: Boumadine Survey Outlines Multiple Conductive Anomalies
Boumadine Survey Outlines Multiple Potentially Highly Conductive Anomalies¹ 13,710-line km geophysical survey flown over all Boumadine permits • Very large, potential conductive anomalies occurring 5km west of Boumadine, of similar orientation and stronger intensity than the Boumadine Main Trend con
Slide 35: Boumadine Expanded Footprint, Multiple New Conductive Anomalies
Boumadine Expanded Footprint, Multiple New Conductive Anomalies Figure – Preliminary Results – Section L2100 Passing through Boumadine – Apparent Conductivity with Drill Holes (target in dashed red) Figure 4 – Preliminary Results – Total Magnetic Intensity Figure – Preliminary Results – Total Magnet
Slide 36: 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 37: Aya Catalysts
Aya Catalysts • 120,000 drill program at Boumadine • 40,000m drill program on Zgounder & Zgounder Regional • Zgounder Silver Mine expansion • 2024 silver production and cost guidance • 2024-2025 ESG milestones of EBRD-CTF loan agreement TSX: AYA; OTCQX: AYASF 37
Slide 38: 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