Rabat – Aya Gold & Silver, the Canadian mining firm with key operations in Morocco, reported a 6% year-over-year drop in revenue for the third quarter of 2024, generating $11 million compared to $11.7 million in the same period last year.
The decline was attributed to operational delays at Morocco’s Zgounder silver mine, where the company is nearing the completion of an ambitious expansion project.
Production at Zgounder reached 355,927 ounces of silver in Q3, supported by a record 83,352 tons of processed ore. Additionally, 120,985 tons of ore were extracted during the quarter, averaging 1,315 tons per day.
However, the company acknowledged that non-recurring challenges delayed some key operational milestones, pushing their realization into the fourth quarter.
“Our third-quarter results fell short of expectations due to temporary setbacks at Zgounder,” said Benoit La Salle, President and CEO. “These issues are now behind us, and we are on track to achieve commercial production at Zgounder by the end of the year.”
The Zgounder expansion project is over 99% complete, with commissioning well underway. Once fully operational, the mine is expected to significantly boost Aya’s silver output and contribute to stronger financial performance in the coming quarters.
Aya’s cash position stood at $73 million as of September 30, down from $103 million at the end of the second quarter, reflecting continued investment in its expansion and exploration programs.
For 2024, the company allocated $36 million for exploration, focusing on its Moroccan assets.
At the Boumadine polymetallic project, Aya aims to complete 120,000 meters of drilling, a 38% increase from 2023, and to deliver an updated mineral resource estimate based on data collected over five years.
In a strategic shift, Aya also announced the spin-off of its Amizmiz and Tijirit gold properties to Mx2 Mining.
“This move simplifies our portfolio and allows us to focus on silver production while benefiting from rising gold market trends,” the company stated.