Aya Gold & Silver (OTCPK:AYAS.F) Update / Briefing Transcript

Summary of Aya Gold & Silver Boumadine PEA Results Webinar Company Overview - Company: Aya Gold & Silver (OTCPK:AYAS.F) - Project: Boumadine Key Industry Insights - Industry: Mining, specifically gold and silver production - Market Context: The presentation discusses the economic viability of the Boumadine project, emphasizing its potential in the current market environment for precious metals. Core Points and Arguments 1. PEA Results: The Preliminary Economic Assessment (PEA) for Boumadine is presented as a significant milestone after three years of work, indicating a low initial capital expenditure (CapEx) of $446 million [3][27]. 2. Production Estimates: The project anticipates a production of 400,000 ounces of gold equivalent annually over the first five years, translating to 37.5 million ounces of silver equivalent [5][23]. 3. Net Present Value (NPV): The NPV of the project is estimated at $2.2 billion pre-tax and $1.5 billion post-tax, with a capital utilization ratio of 5.1 pre-tax and 3.1 post-tax [5][6]. 4. Internal Rate of Return (IRR): The IRR is projected at 69% pre-tax and 47% post-tax, with a payback period of 1.3 years pre-tax and 2.1 years post-tax [6][7]. 5. Spot Price Sensitivity: At current spot prices, the NPV could rise to between $3-4 billion, with an IRR approaching 100% pre-tax [6][7]. 6. Revenue Projections: The life of mine revenue is projected at nearly $10 billion, with an EBITDA of $6.2 billion and free cash flow of $5.6 billion pre-tax [7][31]. 7. Resource Estimate: The mineral resource estimate includes 35 million tons of mineralized material at a head grade of 4.5 grams per ton of gold equivalent, totaling approximately 5 million ounces of gold equivalent [16][17]. 8. Mining Methodology: The project will utilize both open pit and underground mining methods, with a focus on flexibility and cost efficiency [12][18]. 9. Metallurgical Recovery Rates: The project boasts high recovery rates of 96% for gold and silver, and 75% for zinc [21][36]. 10. Environmental and Social Considerations: An environmental and social impact assessment is underway, which will continue alongside the feasibility study [34]. Additional Important Insights 1. Contractual and Financial Position: The company has secured financing and has a mining license in hand, which mitigates risks related to project delays [9][10]. 2. Exploration Potential: The Boumadine project has significant exploration upside, with ongoing drilling campaigns expected to enhance resource estimates [37][46]. 3. Market Interest: There is strong market interest in the concentrates produced, with potential off-takers already identified [24][50]. 4. Operational Costs: The total cash cost is projected at $119 per ton, with an all-in sustaining cost (AISC) of $1,021 per ounce of gold equivalent produced [28][30]. 5. Future Plans: The company plans to advance the feasibility study and exploration concurrently, with a focus on resource expansion and classification [33][34]. This summary encapsulates the critical aspects of the Boumadine PEA results, highlighting the project's economic viability, production potential, and strategic positioning within the mining industry.