Aya Gold & Silver Reports Second Quarter 2020 Financial Results
02 September 2020 - 9:00PM
Aya Gold & Silver Inc. (TSX: AYA) (“Aya” or the
“Corporation”) is pleased to announce its interim financial results
for the second quarter ended June 30, 2020. All amounts are in US
dollars unless otherwise stated.
Quarterly highlights:
- On April 24, 2020 the Corporation appointed Mr. Benoit La Salle
FCPA, CPA as President, CEO and Director, and Robert Taub as
Chairman of the Board.
- Silver ingot production for the quarter was 101,321 ounces
(“oz”) (Q2-2019 – 78,934 oz).
- Silver sales for the quarter were 115,743 oz (Q2-2019 – 87,000
oz) an increase of 33% compared to the second quarter of 2019.
- Ore processed during the second quarter was 28,841 tons (‘t’)
(Q2-2019 – 32,094t) a decrease of 10% compared to the same quarter
last year.
- Feed ore to the mill was 216.8 grams per ton Ag (“g/t”)
(Q2-2019 – 218.0 g/t).
- Cost of sales during the quarter were $1,614,342 (Q2-2019 –
$600,081).
- The average silver price realized during quarter was $17.21/oz
vs $16.33/oz average silver spot price in the quarter.
- A full review of the Corporation’s inventories was conducted
resulting in an inventory write-down of $1,057,638.
|
|
|
Three-month
periods ended June 30, |
|
Key Performance Metrics |
|
Q2-2020 |
Q2-2019 |
%
Variation |
Operational |
|
|
|
|
Ore Processed (tons) |
|
28,841 |
32,094 |
(10) |
Average Grade (g/t Ag) |
|
216.8 |
218.1 |
(1) |
Mill Recovery (%) |
|
61.7% |
61.4% |
1 |
Silver Ounces Produced (oz) |
|
101,321 |
78,934 |
28 |
Silver Ounces Sold (oz) |
|
115,743 |
87,000 |
33 |
Average Realized Silver Price ($/Oz) |
|
$17.21 |
$17.30 |
(1) |
Financial |
|
|
|
|
Revenues |
|
2,040,753 |
1,504,981 |
36 |
Operating (Loss) |
|
(1,378,899) |
776,487 |
(278) |
Net (Loss) Earnings |
|
(1,194,493) |
698,705 |
(271 |
Operating Cash Flows |
|
(895,512) |
(209,785) |
327 |
Cash |
|
14,410,577 |
17,210,222 |
(16) |
Change in Working Capital |
|
(179,446) |
(1,096,948) |
(84 |
Shareholders |
|
|
|
|
(Loss) Earnings per Share – basic &
diluted |
|
(0.015) |
0.009 |
|
|
|
|
|
|
|
|
|
|
Financial Highlights Q2-2020 vs Q2-2019:
- In the second quarter, revenues from silver sales totaled
$2,040,753 (Q2-2019 – $1,504,981). The Corporation sold more silver
than it produced in the quarter as shipment delays due to COVID-19
and low silver prices increased Q1 inventory.
- Net loss for the quarter was ($1,194,493) (EPS of ($0.015)),
compared to a net gain of $698,705 (EPS of $0.009) for the same
period in 2019. Net loss for the quarter was attributable to an
inventory write down of $1,057,638 after a thorough review of the
Corporation’s inventory.
- Operations generated a gross margin of ($663,230) compared to
Q2-2019 of $888,380.
- Comprehensive income for the quarter of $652,285, compared to
$1,512,218 in the same quarter of last year. Most of this gain is
attributable to a foreign currency translation adjustment gain of
$1,846,778 compared to a foreign currency translation adjustment
gain of $813,513 in Q2-2019.
- Cash flows used by operating activities for the quarter of
($895,512), compared to ($209,785) used in operating cash flows for
Q2-2019.
- Cash of $14,410,577 as at June 30, 2020 compared to $17,210,222
as at June 30, 2019.
Zgounder Silver Mine
The Zgounder silver mine continued to have some operational
challenges including tailings facility management, fresh water
supply, general maintenance issues and grid power supply
instability. As a result, availability of the concentrator
was 77.6% and silver recovery was 61.7% similar to the same quarter
last year with 61.4%. Silver grade fed to the mill was 216.8 g/t Ag
compared to 218.1/t Ag in Q2-2019. Repairs to the tailing’s
facility are ongoing and will be completed before the rainy season
which begins in December. Water supply issues have been identified
and rectified in Q3. COVID-19 continues to impact our operations as
movement within the country is limited and it is difficult to bring
contractors to site. This situation will persist until the pandemic
is controlled in Morocco.
Exploration at the Zgounder silver mine was halted during the
second quarter. Exploration restart is planned for Q3-2020.
Boumadine Polymetallic Project
Drilling at the property was halted in Q2. The next step for the
Boumadine project is to continue working on metallurgical test work
with the goal of improving gold, zinc and lead recovery. Drilling
work to support ongoing metallurgical testing will occur in the
second half of 2020.
Azegour, Amizmiz, Toulkine Properties
As of June 2nd, 2020, the Corporation has received exploitation
licenses for each property. The expiration date for the Toulkine
and Amizmiz properties is May 16, 2029. The expiration date for the
Azegour property is June 1, 2030. All the permits are renewable
after the initial term.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a publicly traded Canadian company
focused on the operation, exploration, acquisition and development
of silver and gold deposits. Aya is currently operating mining and
milling facilities at its Zgounder Silver Mine, an 85%-15% joint
venture between its subsidiary, ZMSM, and the Office National des
Hydrocarbures et des Mines (“ONHYM”) of the Kingdom of
Morocco.
Its mining portfolio also includes the Boumadine polymetallic
deposit located in the Anti-Atlas Mountains of Eastern Morocco
which is also a joint venture with ONHYM wherein Aya retains an 85%
ownership. Additionally, the Corporation’s portfolio includes the
Amizmiz and Azegour properties, both being 100% owned, with gold,
tungsten, molybdenum and copper occurrences covering over 100
square kilometres in a historical mining district of Morocco.
For additional information, please visit Aya’s website at
www.ayagoldsilver.com
Or contact:
Benoit La Salle, FCPA FCA President & CEO Tel:
+1 (514) 951-4411 benoit.lasalle@ayagoldsilver.com |
Alex Ball Corporate Development & IR Tel: +1 (647)
919-2227 alex.ball@ayagoldsilver.com |
Forward-Looking Statements
This press release contains "forward-looking information" within
the meaning of Canadian securities legislation. All information
contained herein that is not clearly historical in nature may
constitute forward-looking information. Generally, such
forward-looking information can be identified by the use of
forward-looking terminology such as “will”, “continue”, “provide”,
“present”, “reasonable”, “established”, “has”, “demonstrate”,
“potential”, “expect” or variations of such words and phrases or
state that certain actions, events or results "may", "could",
"would" or "might". Forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements
of the Corporation to be materially different from those expressed
or implied by such forward-looking information, including but not
limited to: (i) volatile stock price; (ii) the general global
markets and economic conditions; (iii) the possibility of
write-downs and impairments; (iv) the risk associated with
exploration, development and operations of mineral deposits
including the accuracy of the current mineral reserve and mineral
resource estimates of the Corporation (including, but not limited
to, ore tonnage and ore grade estimates) and mine plans for the
Corporation’s mining operations (including, but not limited to,
throughput and recoveries being affected by metallurgical
characteristics); (v) the risk associated with establishing title
to mineral properties and assets including permitting, development,
operations and production from the Corporation’s operations being
consistent with expectations and projections; (vi) fluctuations in
commodity prices and other risks and factors described or referred
to in the section entitled "Risk Factors" in the MD&A of the
Corporation and which is available at www.sedar.com, all of which
should be reviewed in conjunction with the information found in
this news release
Although the Corporation has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information, there may be
other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such forward-looking information. Such
forward-looking information has been provided for the purpose of
assisting investors in understanding the Corporation's business,
operations and exploration plans and may not be appropriate for
other purposes. Accordingly, readers should not place undue
reliance on forward-looking information. Forward-looking
information is given as of the date of this press release, and the
Corporation does not undertake to update such forward-looking
information except in accordance with applicable securities
laws.
Alex Ball
Aya Gold & Silver Inc.
1 (647) 919-2227
alex.ball@ayagoldsilver.com
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