After spending some time searching for the right way to gain exposure to silver through mining companies (100% pure silver + good management) I’ve decided to start building my position in $AYA (-0,35%) Aya Gold & Silver, a Canadian silver producer with key operations in Morocco.
Core assets
- Aya operates the Zgounder mine, one of Africa’s most significant silver deposits, with over 100Moz in resources including the large proven reserves noted above. A recently completed expansion positions the company for strong production growth.
- Aya also owns the Boumadine polymetallic project with high-grade intercepts in silver, gold, lead, copper, and zinc—all reported after just two years of active exploration.
2025 guidance
Aya expects silver production at Zgounder to range between 5.0 and 5.3 million ounces in 2025, with cash costs estimated between $15.00 and $17.50 per ounce and recovery rates around 84–88%. Based on current production guidance, I estimate that Aya could generate up to $80 million in operating cash flow this year under reference conditions of a silver price around $34.12/oz and cash costs near $15/oz. This outlook is supported by the ramp-up to a steady-state throughput of 3,000 tpd and ongoing efficiency gains.
Management
The company is led by Benoit La Salle, CEO since April 2020, a veteran mining executive with over 25 years of experience, particularly in Africa. He founded SEMAFO Inc. in 1995 and built it from a junior explorer into a major West African gold producer delivering over 250,000 ounces annually.
Valuation and upside potentiall
While the is beginning to reward Aya’s operational progress and asset quality, the company still trades at attractive multiples relative to peers. With a current market cap of around $1.3 billion USD and projected free cash flow above $100 million by 2026, the risk/reward setup remains compelling if execution stays on track.
In summary
After a thorough search across the silver mining sector, I see Aya Gold & Silver as the right choice—offering tier-one assets like Zgounder with strong reserves, a high-grade polymetallic project at Boumadine, experienced leadership under Benoit La Salle, scalable production growth, and strong cash flow outlook. I’ve just initiated a position and will continue tracking project developments and quarterly results.
