Aya Gold & Silver Inc. · TSX:AYA
Aya Gold & Silver — Investor Presentation (September 2022)
31 slides from Aya Gold & Silver's investor presentation, Sep 7, 2022
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 Management
AYA MANAGEMENT Benoit La Salle, FCPA, CPA Mustapha Elouafi Ugo Landry-Tolszczuk Elias Elias President & CEO President-General Manager Chief Financial Officer Vice-President, Legal & Corporate Secretary Benoit has over 25 years of experience as a corporate executive in Mustapha is an established mini
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 Chairman Director Director Benoit has over 25 years of experience as a corporate executive in Robert holds a BA Languages from the University of Antwerp, Bel- Natacha h
Slide 5: Zgounder Silver Mine – Cornerstone of Aya's Growth Story
ZGOUNDER SILVER MINE – CORNERSTONE OF AYA’s GROWTH STORY ▪ Commercial production in 2019 ▪ 2022 production guidance of ~1.7M oz RABAT ▪ 2024 production of ~7.9M oz, +394% ▪ 96M oz M&I resources at 306 g/t Ag CASABLANCA DEVELOPMENT UPSIDE ▪ Boumadine ▪ Tijirit – FS 85% complete, pending drilling resu
Slide 6: 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 6 Source: Desjardins Capital Markets, company reports *Developer, for which 2021 metal prices and latest technical report LOM payable production were used
Slide 7: Quadrupling Production at Industry-Low Cash Cost
ZGOUNDER – QUADRUPLING PRODUCTION AT INDUSTRY-LOW CASH COST Production (oz Ag) 7,942,552 $14.00 $13.46 7,500,000 7,000,000 $13.00 6,500,000 Average production cost ($/oz) $12.00 6,000,000 $12.00 $12.00 5,500,000 $11.38 $11.28 5,000,000 4,500,000 $11.00 4,000,000 3,500,000 $10.00 3,000,000 $9.58 AISC
Slide 8: Morocco – Developing the Mining Sector Beyond Phosphates
MOROCCO – DEVELOPING THE MINING SECTOR BEYOND PHOSPHATES 36.6M Arabic, Amazigh & 710,850 km² inhabitants French-speaking 1920 1951 1951 - 1995 1995 - 1998 2016 2022 1914 First mining legislation First modern Revision of Mainly Moroccan Privatization of 114 Revision of 45 ONHYM projects mines mining
Slide 9: Aya – Corporate Snapshot
AYA – CORPORATE SNAPSHOT – TSX: AYA; OTCQX: AYASF Shares - Basic 105.0M Shares – F.D. 115.7M Share Price (Sept 7, 2022) C$ $7.37 Market Cap C$ $774M Cash (June 30, 2022) US$ $67M Debt (June 30, 2022) US$ Nil 30-day average volume ‘000 0.3 Shareholders 15% USA 33% Family offices 25% 50% Institutional
Slide 10: 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 expansionFS 43-101 & projects acquired Boumadine acquired PEA filed launched for Zgounder 2008 2009-2011 2012
Slide 11: Zgounder – Top Silver Intercepts Globally
ZGOUNDER – TOP SILVER INTERCEPTS Top 50 global primary silver intercepts 2020 - 2022 GLOBALLY YTD, ranked by Ag grade-thickness Elizabeth Hill, 1 80,762 Filo del Sol, 2 77,683 Breccia, 3 65,930 Zgounder, 4 59,054 Zgounder hit 3 out of the top 10 and 15 out of the top 50 KSK, 5 Zgounder, 6 43,819 53,
Slide 12: Zgounder – Top Silver Intercepts
ZGOUNDER – TOP SILVER INTERCEPTS Zgounder top 50 all-time drill intercepts, ranked by Ag grade-thickness¹ ² 1 4,101g/t over 14.4m 2 3,043g/t over 14.4m 2020-2022 YTD drill exploration program returned 42 of the 3 4 6,437g/t over 6.5m 9,346g/t over 4.0m 5 4,944g/t over 7.2m top 50 Zgounder intercepts
Slide 13: 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 14: 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 $139.4M 6,000,000 200 AISC (LOM) Growth capex Ag oz 5,000,000 1
Slide 15: Expanded operations will combine flotation-CIP and flotation-cyanidation plants
Expanded operations will combine ▪ 2,000 tpd flotation-CIP plant & ▪ 700 tpd flotation-cyanidation plant ▪ Open-pit & UG operations TSX | AYA; OTCQX | AYASF
Slide 16: New Process Plant
ZGOUNDER | New Process Plant 2,700 tpd combined processing capacity TSX | AYA; OTCOX | AYASF
Slide 17: Zgounder – Strong Post-Expansion Cash Flow Generation
ZGOUNDER – STRONG POST-EXPANSION CASH FLOW GENERATION 250,000 600,000,000 Total Revenues After-Tax Cash flow Cumulative After-Tax Cash flow (undiscounted) 500,000,000 200,000 400,000,000 150,000 Total revenue (k$) 300,000,000 100,000 200,000,000 50,000 100,000,000 0 2022 2023 2024 2025 2026 2027 202
Slide 18: 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 19: Construction – Milestones on Track
CONSTRUCTION – 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 75% EPC offer 00% Detail engineering 15% Earth & civil works 10% Construction 00% Commissioning 00% First silver pour 00% Production ramp-up 00% 19
Slide 20: 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 21: Zgounder Silver Mine
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS TSX | AYA; OTCQX: AYASF
Slide 22: Aya – Initial 72,500-Meter Drill Exploration Program
AYA – INITIAL 72,500-METER DRILL EXPLORATION PROGRAM GROWTH PIPELINE INCLUDES 4 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 to 13,500m ▪ Drill airborne su
Slide 23: Zgounder – 22,500m Near-Mine Drill Program
ZGOUNDER – 22,500M NEAR-MINE DRILL PROGRAM M&I Mineral Resources with 2022 Initial Surface and Underground Drill Holes 23 TSX | AYA
Slide 24: Zgounder Regional – Drill Exploration Program
ZGOUNDER REGIONAL – DRILL EXPLORATION PROGRAM Inaugural Drill Exploration Program Launched ▪ 7,500m of RC and DDH exploration program launched in September 2022 ▪ Follow-up of airborne geophysics and mapping programs (see right) ▪ Airborne survey and heliborne VTEM geophysical survey over 13 permits
Slide 25: Zgounder Regional – Hyperspectral Study
ZGOUNDER REGIONAL – HYPERSPECTRAL STUDY Exploration Rich Land Package ▪ Regional exploration will concentrate on the identified alteration zones (clay, iron) ▪ Strong spectral signal within existing permits and surrounding regional play ▪ Consolidating land package ¹ Refer to Aya Gold & Silver’s May
Slide 26: Boumadine – Drill Exploration Program
Indicated BOUMADINE – DRILL EXPLORATION PROGRAM (Au-Ag-Pb-Cu-Zn) Initial Drill Exploration Program Complete ▪ New 2.7 km mineralized trend and extension of the Central and South Zones identified after completing 9,116m of drilling on 6 different sections with 43 DDH ▪ Open at both ends along strike
Slide 27: Boumadine – Next Steps to Unlock Additional Discoveries
Indicated BOUMADINE – NEXT STEPS TO UNLOCK ADDITIONAL DISCOVERIES (Au-Ag-Pb-Cu-Zn) Drill Exploration Program ▪ Drill exploration program recently expanded from 7,500m to 13,500m ▪ 6,000m drill exploration program on the Imariren, Tizi and South- West Zones ▪ In-fill drilling within the Central and S
Slide 28: Imiter Bis – Drill Exploration Program
Indicated 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 planned in 2022 ▪ 4,754m of DDH (phase I) completed ▪ Discovery holes w
Slide 29: Catalysts
1 AYA 2 ZGOUNDER SILVER MINE 3 EXPLORATION 4 CATALYSTS 29
Slide 30: Potential Catalysts into Year-End (2022)
POTENTIAL CATALYSTS INTO YEAR-END (2022) ▪ Continue exploration drilling on Zgounder and Zgounder Regional to increase resources ▪ Deliver 2022 milestones for 2,700 tpd Zgounder expansion ▪ Q2-2022: Completed FEED ▪ Q3-2022: Construction start ▪ Complete initial 72,500m drill exploration program on
Slide 31: 1320 Graham, suite 132 Ville Mont-Royal, QC H3P 3C8 Benoit La Salle : Benoit.Lasalle@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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