# MD&A

Source Brief: https://evesgoldminers.com/research/source-briefs/aya-gold-silver-2026-03-30-md-and-a-768ddef6
Original source: https://ayagoldsilver.com/_resources/financials/2025/Q4-2025-Aya-Gold-Silver-Inc_MDA.pdf
Original published: 2026-03-30
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/2025/Q4-2025-Aya-Gold-Silver-Inc_MDA.pdf
Published: 2026-03-30T00:00:00+00:00
Fetched: 2026-05-05T09:24:55.004+00:00
Source artifact: 768ddef6-4da8-4ad2-bf32-193b5a6efbc4
Normalizer input: text

## Content

MANAGEMENT'S
DISCUSSION
AND ANALYSIS
For the year and quarter ended
December 31, 2025
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. (the “Corporation” or "Aya"), dated March 30, 2026, covers the three-month period ("Q4-2025" or the "Quarter") and the year
ended December 31, 2025. This MD&A is prepared by management and should be read in conjunction with the Corporation’s
Audited Consolidated Financial Statements (“FS”) and related notes for the years ended December 31, 2025 and 2024. The
Corporation uses certain non-GAAP financial measures in this MD&A as described under “Non-GAAP Measures". Additional
information relating to the Corporation, including the most recent Annual Information Form (the “AIF”), is available on SEDAR+.
The Corporation’s December 31, 2025 FS and the related financial information contained in this MD&A have been prepared in
accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (“IASB”), unless otherwise stated. All amounts are stated in thousands of United States dollars (“US”), except for share
and per share amounts, or unless otherwise indicated. References to “C$” are to the Canadian dollar while “MAD” refers to the
Moroccan Dirham.
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 Note 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 March 30,
2026 unless otherwise stated.
AYA GOLD & SILVER INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / YEAR 2025 2
Contents
Management’s Discussion and Analysis of Financial Condition and Results of Operations 2
Contents 3
Business Overview 4
2025 Annual Highlights 6
Q4-2025 Highlights 8
Silver Equivalent Production Chart 10
Recent Developments 10
Operating Results 11
Development and Exploration 12
Sustainability 18
2025 Guidance Review 20
2026 Outlook 20
Transaction with Mx2 Mining 22
Overview of Financial Performance 23
Selected Annual Information 25
Summary of Quarterly Results 25
Liquidity and Capital Resources 27
Financial Position 30
Capital Management 31
Commitments and Contingency 32
Non-GAAP Measures 33
Risks and Uncertainties 36
Other Financial Information 52
Accounting Policies, Judgements and Estimates 53
Proposed Transaction 53
Management’s Report on Internal Controls and Financial Reporting 54
Additional Information and Continuous Disclosure 54
Technical Information 55
Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Resources 55
Cautionary Note Regarding Forward-Looking Information 55
AYA GOLD & SILVER INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / YEAR 2025 3
Business Overview
General Information
Aya is a Canadian-based precious metals mining corporation active across the full mining lifecycle; from discovery and
development through to production. The Corporation operates in Morocco, a politically stable jurisdiction with supportive
regulatory environment, offering low operating costs and well-developed infrastructure.
Aya’s flagship asset is the Zgounder Silver Mine, recognized for its rare, high-grade silver mineralization. The mine is located
along the Anti-Atlas fault, one of North Africa’s most geologically rich and underexplored regions, known for hosting world-
class silver, gold, and base metal deposits. Aya also owns an 85% interest in the Boumadine polymetallic project, which is
currently in the development evaluation phase, with a Preliminary Economic Assessment ("PEA") completed and feasibility
study work underway.
Aya is 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 142,986,547 common shares on March 30, 2026.
Geographic Overview
• The Zgounder mining permit covers 16 km², while the 23 mining and exploration permits within the Zgounder Regional
area encompass an additional 362km2, bringing the total package at and around Zgounder to 378 km².
• Boumadine’s exploration portfolio includes 31 permits and licenses totaling 341 km², including a 32 km² mining license
that forms the basis of the PEA discussed below. The project also benefits from an additional 600 km² of exploration
authorization.
For details and history of permitting please refer to the Corporation's latest Annual Information Form available on SEDAR+.
AYA GOLD & SILVER INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / YEAR 2025 4
Zgounder Silver Mine
Located in Morocco’s central Anti-Atlas Mountains, the wholly owned Zgounder Mine is a rare, silver-only operation that
differentiates Aya from producers that recover silver primarily as a by-product. The mine is supported by proven and probable
mineral reserves of 73 million ounces (“Moz”) of silver.
Commercial Operations
Following a major expansion completed in 2024, production ramp-up progressed through 2025 and was completed by year-
end, positioning Zgounder toward steady-state, commercial operations. The recently updated mine plan extends the
operation’s life to 2036, supporting an average annual production profile of approximately 6 Moz of silver over the life of mine
(“LOM”). Mining is conducted using a combination of open-pit and underground mining methods. The expansion included new
mine development, plant, tailings and water storage facilities, and supporting infrastructure improvements. Silver is produced
through cyanide leaching and refined into doré bars. All of the revenue from the Zgounder Mine is derived from the production
and sale of silver, which is refined in Switzerland and sold on a regular basis at prevailing market prices.
Near-Mine and Regional Exploration
Exploration is a core part of Aya’s growth strategy, focused on expanding the resource base, advancing priority targets, testing
new prospective zones, guiding future development decisions, and enhancing overall geological understanding of the project
area. The 2026 exploration program is targeting approximately 30,000 metres of Diamond Drill Holes ("DDH").
Technical Report and Mineral Reserves and Resources
An updated National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") technical report with an
effective date of September 30, 2025, was filed on SEDAR+ on December 15, 2025. The report is based on a Mineral Resource
Estimate for Zgounder as of June 30, 2025, and a Mineral Reserve Estimate as of September 30, 2025. Additional details are
provided in the "Development and Exploration" section.
Boumadine Polymetallic Project
Located in the Anti-Atlas region of eastern Morocco, Boumadine is a polymetallic gold-silver-zinc-lead system owned 85% by
Aya and 15% by National Office of Hydrocarbons and Mines ("ONHYM"). The Boumadine project is Aya’s most advanced
development-stage asset and a key pillar of its long-term growth strategy in Morocco. The project hosts a substantial mineral
resource and an extensive mineralized footprint. The Boumadine PEA recently completed, outlines a combined open-pit and
underground mining operation with a processing capacity of approximately 2.9 million tonnes per year. The project is expected
to produce three marketable concentrates (zinc, lead, and pyrite), with revenue largely derived from precious metals.
Boumadine benefits from year-round access and existing regional infrastructure, which would require enhancements to
support full-scale operations. Feasibility study work is currently underway to advance development planning and optimize the
project’s economics. Refer to the "Boumadine Preliminary Assessment" section.
Aya initiated the reclaiming and commercialization of a historical pyrite stockpile at Boumadine in Q4-2025. This legacy
flotation by-product from past lead and zinc operations contains commercially meaningful grades of gold and silver
(approximately 2.30 g/t Au and 144 g/t Ag) and is expected to yield approximately 2.5 million silver-equivalent ounces.
Announced on November 19, 2025, the initiative is expected to be of limited duration, lasting approximately 20 to 24 months
from that date. The program is designed to generate near-term cash flow, demonstrate the marketability of Boumadine’s gold-
and silver-rich pyrite concentrate, and align with Aya’s commitment to responsible environmental management.
Exploration
Since 2022, Aya has completed 353,055 metres ("m") of drilling at Boumadine, significantly advancing the geological model.
The 2026 exploration program is targeting 200,000 m, including infill drilling (180,000 m – representing half of the planned
two-year 360,000 m program) to convert inferred resources to the indicated and measured categories, as well as expanding
the resource at depth and along strike. The program also includes 20,000 m of regional exploration drilling on new targets and
for some follow-up on the Asirem structures.
Technical Report and Mineral Resource Estimate
An updated NI 43-101 technical report incorporating the results of the Boumadine PEA with an effective date of November 4,
2025 was filed on SEDAR+ on December 18, 2025. The report is based on a Mineral Resource Estimate for Boumadine as of
February 24, 2025. Additional details are provided in the Development and Exploration section.
AYA GOLD & SILVER INC. / MANAGEMENT’S DISCUSSION AND ANALYSIS / YEAR 2025 5
2025 Annual Highlights
Key performance metrics 2025 2024 Variance
Operational Zgounder
Ore Mined (tonnes)1 1,036,570 444,375 133%
Average Grade Mined (g/t Ag) 139 162 (14)%
Ore Processed (tonnes) 1,178,420 358,919 228%
Average Grade Processed (g/t Ag) 145 171 (15)%
Combined Mill Recovery (%) 88.4% 83.7% 4.7%
Milling Operations (tpd) 3,229 981 229%
Silver Equivalent Produced (oz) 4,829,151 1,646,265 193%
Silver Equivalent Sold (oz) 4,801,876 1,501,927 220%
Cash Costs per Silver Equivalent Ounce Sold2 20.41 21.71 (6)%
Adjusted Cash Costs per Silver Equivalent Ounce Sold2 20.41 19.62 4%
Production Cost per Tonne2 114 76 51%
Boumadine Reclaim Operations
Ore Processed (tonnes) 13,498 - NM
Average Grade Processed (g/t Ag) 192 - NM
Average Grade Processed (g/t Au) 2.87 - NM
Silver Equivalent Produced (oz) 172,129 - NM
Silver Equivalent Sold (oz) 55,471 - NM
Cash Costs per Silver Equivalent Ounce Sold2 6.59 - NM
Consolidated Zgounder and Boumadine
Silver Equivalent Produced Consolidated (oz) 5,001,280 1,646,265 204%
Silver Equivalent Sold Consolidated (oz) (A) 4,857,347 1,501,927 223%
Average Net Realized Silver Equivalent ($/oz) (B/A) 41.61 26.04 60%
Cash Costs per Silver Equivalent Ounce Sold2 20.25 21.71 (7)%
Adjusted Cash Costs per Silver Equivalent Ounce Sold2 20.25 19.62 3%
Financial
Revenues (B) 202,102 39,117 417%
Cost of Sales 118,935 33,735 253%
Gross Profit 83,167 5,382 1,445%
Operating Income (Loss) 62,517 (38,747) 261%
Income (Loss) before Income Taxes 70,125 (24,800) 383%
Net Income (Loss) 46,280 (26,027) 278%
Operating Cash Flows 71,948 (8,615) 935%
Cash and cash equivalents 136,322 30,944 341%
Total Assets 631,733 400,107 58%
Total Non-Current Financial Liabilities 84,615 97,638 (13)%
Working Capital3 112,400 23,424 380%
EPS
Income (Loss) per Share (EPS) - Basic4 0.33 (0.17) 294%
Income (Loss) per Share (EPS) - Diluted4 0.32 (0.17) 288%
*NM – Not Meaningful
1 Includes an adjustment of 1,562 tonnes to correct an error in previously reporte

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