# MD&A

Source Brief: https://evesgoldminers.com/research/source-briefs/aya-gold-silver-2024-08-13-md-and-a-6cfaf177
Original source: https://ayagoldsilver.com/_resources/financials/2024/Q2-MD%26A-14082024F.pdf
Original published: 2024-08-13
EGM generated: 2026-09-04
Company: Aya Gold & Silver (AYA)

## Use Note

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## Extracted Document Text

# MD&A

Source: https://ayagoldsilver.com/_resources/financials/2024/Q2-MD%26A-14082024F.pdf
Published: 2024-08-13T00:00:00+00:00
Fetched: 2026-05-05T09:25:01.18+00:00
Source artifact: 6cfaf177-54d8-4868-aabd-7e847eba57ce
Normalizer input: text

## Content

MANAGEMENT’S
DISCUSSION
AND ANALYSIS
For the three and six-month periods
ended June 30, 2024
Management’s
AYA GOLD & SILVER INC. INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / Q2-2024 1
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
This Management’s Discussion and Analysis (“MD&A”) of the operations, results, and financial position of Aya Gold & Silver Inc. (“Aya”)
and its subsidiaries (together the “Corporation”), dated August 13, 2024, covers the three and six-month periods ended June 30, 2024
and should be read in conjunction with the Corporation’s Unaudited Condensed Interim Consolidated Financial Statements (“FS”) and
related notes for the three and six-month periods ended June 30, 2024 and the audited consolidated financial statements and related
notes for the year ended December 31, 2023.
The Corporation’s June 30, 2024 FS have been prepared in accordance with IFRS Accounting Standard 34, "Interim Financial Reporting",
as issued by the International Accounting Standards Board (“IASB”). The FS and the financial information contained in this MD&A reflect
management’s best estimates and judgment based on information currently available. All amounts are stated in thousands of United
States dollars (“US”), except for per share amounts, unless otherwise indicated. References to “C$” are to the Canadian dollar.
This MD&A contains forward-looking information that is subject to risk factors set out in a cautionary note in this MD&A under
“Cautionary Statement Regarding Forward-Looking Information”. All information contained in the FS and this MD&A has been reviewed
by the Audit Committee and approved by the Corporation’s Board of Directors. This MD&A is current as of August 13, 2024, unless
otherwise stated.
AYA GOLD & SILVER INC. INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / Q2-2024 2
Contents
Management’s Discussion and Analysis of Financial Condition and Results of Operations ................ 2
Contents ........................................................................................................................................ 3
Business Overview ......................................................................................................................... 4
Q2-2024 Highlights ........................................................................................................................ 5
Q2-2024 and H1-2024 Operational and Financial Highlights............................................................. 6
Operating Results ........................................................................................................................... 8
Development and Exploration.......................................................................................................... 9
Sustainability ............................................................................................................................... 16
Overview of Financial Performance ............................................................................................... 17
Summary of Quarterly Results ...................................................................................................... 19
Liquidity and Capital Resources .................................................................................................... 20
Financial Position ......................................................................................................................... 22
Capital Management .................................................................................................................... 23
Commitments and Contingency .................................................................................................... 24
Non-GAAP Measures ................................................................................................................... 25
Risks and Uncertainties ................................................................................................................ 26
Financial Instruments and Risk Management ................................................................................ 26
Other Financial Information .......................................................................................................... 26
Accounting Policies, Judgments and Estimates ............................................................................ 27
Proposed Transaction................................................................................................................... 27
Management’s Report on Internal Controls and Financial Reporting ............................................. 28
Cautionary Note Regarding Forward-Looking Information.............................................................. 29
Additional Information and Continuous Disclosure ........................................................................ 30
Technical Information .................................................................................................................. 30
AYA GOLD & SILVER INC. INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / Q2-2024 3
Business Overview
Aya Gold & Silver Inc. is a Canadian-based precious metals mining corporation which focuses on the exploration, development,
production, and acquisition of precious metals mining projects. The Corporation is concentrated on producing silver and exploration
activities at its flagship project, the Zgounder property. Aya owns 100% of Zgounder Millennium Silver Mine S.A (“ZMSM”), which owns
the Zgounder property. The Corporation also owns 85% of the Boumadine polymetallic project and owns the permits related to the
Amizmiz, Azegour, Zgounder Regional, Tirzzit and Imiter bis properties. These properties are located in the Kingdom of Morocco. Aya
also owns 75% of the Tijirit project located in Mauritania.
Aya was incorporated under the Canada Business Corporations Act; its financial year-end is December 31, and it trades on the Toronto
Stock Exchange under the symbol “AYA” and on the OTCQX under the symbol “AYASF”. Aya’s issued and outstanding share capital totals
130,453,321 common shares on August 13, 2024. The Zgounder Silver Mine is in operation while all other projects are at the exploration
and evaluation stage.
KINGDOM OF MOROCCO
AYA GOLD & SILVER INC. INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / Q2-2024 4
Q2-2024 Highlights
Operational and Financial:
• Quarterly silver production of 432,667 ounces (“oz”) compared to 526,703 oz in Q2-2023.
• Ore processed increased to 80,562 tonnes (“t”) in Q2-2024 at a grade of 196 grams per tonne (“g/t”) compared to 72,190t in Q2-
2023 at a grade of 265 g/t.
• 114,025t of ore mined in the quarter at a grade of 176 g/t for an average of 1,253 tonnes per day (“tpd”).
• Record revenue of $13.7 million, a 42% increase from Q2-2023.
• Cash cost per silver ounce sold of $17.85 in Q2-2024 compared to $10.98 in Q2-2023.(1)
• Robust financial position with $103.4 million of cash, cash equivalents and restricted cash as at June 30, 2024, compared to
$70.3 million as at December 31, 2023.(2)
• Received the final tranche of the EBRD loan, of $15 million, for a total of $100 million received to date.
• Achieved milestones 2 and 3 of the CTF tranche of the project loan bringing interest rate cost of this tranche to 1.00% (down
from 9.31% at the start of the loan).
• Aya was included in the S&P/TSX Composite Index effective prior to the opening of trading on June 24, 2024. The S&P/TSX
Composite Index is the benchmark Canadian stock market index representing roughly 70% of the total market capitalization on
the TSX.
Expansion, Development and Exploration:
• Expansion of Zgounder Mine reached over 95% completion, with commissioning activities underway.
• Conducted 7,920 meters (“m”) of diamond drill hole (“DDH”) drilling at Zgounder and doubled 2024 program to 30,000m to follow
up on promising at-depth results.
• Completed 2,792m of DDH on Zgounder Regional.
• Continued development of Boumadine through 27,046m of DDH drilling and acquisition of seven permits.
• Completed electromagnetic airborne geophysics campaigns on the Boumadine and Tirzzit properties using MobileMT
technology. Over 15,400-line kilometers were completed on the properties.
Environmental, Social and Governance (“ESG”):
• Provided 3,761 hours of training and induction training for commissioning of the new plant.
• Published 2023 Modern Slavery Report.
• Completed construction of the Zgounder 90km power line and began receiving energy from the grid.
• Leveraged annual World Environment Day celebrations to raise environmental awareness among both on-site workers and local
schoolchildren.
(1) The Corporation reports non-GAAP measures, including cash costs per silver ounce and available liquidity, which are widely used in the mining industry as a benchmark for
performance, but do not have a standardized meaning and the methods used by the Corporation to calculate such measures may differ from methods used by other
companies with similar descriptions. See “Non-GAAP Measures” on page 25 for a reconciliation of non-GAAP to GAAP measures.
(2) Non-GAAP Measures, consisting of cash and cash equivalents of $85,146 and restricted cash of $18,261 (December 31, 2023, balances of $49,830 and $20,503 respectively).
AYA GOLD & SILVER INC. INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / Q2-2024 5
Q2-2024 and H1-2024 Operational and Financial Highlights
Three-month periods ended Six-month periods ended
June 30, June 30,
Key Performance Metrics 2024 2023 Variation 2024 2023 Variation
Operational
Ore Mined (tonnes) 114,025 103,231 10% 220,905 184,133 20%
Average Grade Mined (g/t Ag) 176 230 (23%) 168 227 (26%)
Ore Processed (tonnes) 80,562 72,190 12% 161,894 144,928 12%
Average Grade Processed (g/t Ag) 196 265 (26%) 184 250 (26%)
Combined Mill Recovery (%) 84.7% 87.3% (2.6%) 83.4% 87.2% (3.8%)
Silver Ingots Produced (oz) 130,719 202,559 (35%) 242,216 371,207 (35%)
Silver in Concentrate Produced (oz) 301,948 324,144 (7%) 556,812 630,309 (12%)
Total Silver Produced (oz) 432,667 526,703 (18%) 799,028 1,001,516 (20%)
Silver Ingots Sold (oz) 121,121 164,707 (26%) 229,725 314,622 (27%)
Silver in Concentrate Sold (oz) 400,850 287,816 39% 530,512 646,105 (18%)
Total Silver Sales (oz) 521,971 452,523 15% 760,237 960,727 (21%)
Avg. Net Realized Silver ($/oz) 26.20 21.26 23% 24.67 20.89 18%
Cash Costs per Silver Ounce Sold (3) 17.85 10.98 63% 18.62 12.87 45%
Financial
Revenue from Silver Sales 13,678 9,621 42% 18,756 20,065 (7%)
Cost of Sales 8,765 6,876 27% 13,507 15,236 (11%)
Gross Profit 4,913 2,745 79% 5,249 4,829 9%
Operating Income (Loss) 1,652 (36) 4,689% (1,216) (120) 913%
Net Income (Loss) 6,813 (525) 1,398% 4,222 536 688%
Operating Cash Flows 5,307 3,674 44% (4,928) 7,738 (164%)
Cash and Restricted Cash (4) 103,407 52,110 98% 103,407 52,110 98%
Total Assets 424,926 245,218 73% 424,926 245,218 73%
Total Non-Current Financial Liabilities 100,117 2,681 3,634% 100,117 2,681 3,634%
Shareholders
Earnings per Share – basic 0.05 (0.00) NM 0.03 0.00 NM
Earnings per Share – diluted 0.05 (0.00) NM 0.03 0.00 NM
NM – Not Meaningful
(3) The Corporation reports non-GAAP measures, including cash costs per silver ounce and available liquidity, which are widely used in the mining industry as a benchmark for
performance, but do not have a standardized meaning and the methods used by the Corporation to calculate such measures may differ from methods used by other
companies with similar descriptions. See “Non-GAAP Measures” on page 25 for a reconciliation of non-GAAP to GAAP measures.
(4) Non-GAAP Measures, consisting of cash and cash equivalents $85,146 and restricted cash of $18,261 (June 30, 2023, balances

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