Aya Gold & Silver reports record Q3 output as cash costs fall 25%
Operating cash flow rose 115 per cent to US$48 million as Aya raised the floor of its Zgounder silver production forecast.
Mara Quinlan
Aya Gold & Silver Inc. TSEAYA NASDAQAYA reported on Thursday record third-quarter production of 2.0 million silver-equivalent ounces and cash costs down 25 per cent to US$15.51 per ounce sold. The Morocco-focused miner raised Zgounder's annual silver production forecast to 5.6 million to 5.8 million ounces, lifting the previous 5.2 million-ounce floor.
Aya shares fell 2.4 per cent to C$34.89 at Wednesday's 4:00 p.m. EST close in Toronto TSEAYA. That close preceded Thursday's results.
For the quarter ended Sept. 30, revenue rose 90 per cent to US$103 million as sales volumes and realized prices increased. Net income reached US$35 million, up 182 per cent from a year earlier.
In the third quarter of 2026, operating cash flow increased 115 per cent to US$48 million, although investment in inventories absorbed some of the gain. Aya expects consolidated production of 6.6 million to 6.8 million silver-equivalent ounces for the full year.
"Q3 was another record quarter for Aya, with Zgounder and the Boumadine reclaim operation each achieving their highest production to date," chief executive Benoit La Salle said in the release.
Zgounder contributed 1.5 million ounces of silver in the third quarter, while the Boumadine pyrite reclaim operation added 0.5 million silver-equivalent ounces. Zgounder's cash costs fell 16 per cent to US$17.53 per silver ounce sold in the 2026 quarter, which Aya attributed to operational efficiencies and optimization.
Aya expects Zgounder's full-year 2026 cash costs to remain below its US$21.50-per-ounce guidance. The mine's processing rate averaged 4,096 tonnes a day in the quarter, up 23 per cent from a year earlier, while recovery averaged 92.0 per cent.
The average net realized price reached US$59.50 per silver-equivalent ounce in the 2026 quarter, up 49 per cent from a year earlier. Consolidated cash costs also fell 8 per cent from the second quarter.
Sales lagged production, with 1.7 million silver-equivalent ounces sold in the quarter, a gap Aya attributed to sales timing. Zgounder's silver inventory reached 383,757 ounces at Sept. 30, compared with 212,516 ounces at the end of the second quarter.
Read more: Silver Mountain Resources reports first concentrate sale worth about US$2.7M
Cash and cash equivalents stood at US$184 million at Sept. 30, excluding US$16 million of restricted cash. Aya spent US$18 million on exploration during the 2026 quarter, mainly on Boumadine infill drilling, and US$6 million on Zgounder capital projects.
Aya's Oct. 14 operating update said Boumadine's pyrite reclaim operation is expected to last about 20 to 24 months from November 2025. The broader Boumadine project remains at the exploration and evaluation stage.
That October update targeted completion of Zgounder's crusher expansion in early 2027.
