Q4 2025 Aya Gold & Silver Inc Earnings Call

March 31, 2026

Speaker #1: Good morning, everyone. I will now turn the call over to Elizabeth Hamawi, Aya Gold & Silver's Director of Corporate and Financial Communications. Please go ahead—

Operator: Good morning, everyone. I will now turn the call over to Elizabeth Hamaue, Aya Gold & Silver's Director of Corporate and Financial Communications. Please go ahead.

Speaker #2: Thank you, Operator, and welcome everyone to Aya's fourth quarter and full year 2025 earnings conference call. Here with me today, I have Benoit Lassalle, President and CEO; Hugo Landry Tolchak, Chief Financial Officer; Elias Elias, Chief Legal and Sustainability Officer; Raphaël Beaudoin, Vice President of Operations; and David Lalonde, Vice President of Exploration.

Elizabeth Hamaue: Thank you, operator, and welcome everyone to Aya's Q4 and full year 2025 earnings conference call. Here with me today, I have Benoit La Salle, President and CEO, Ugo Landry-Tolszczuk, Chief Financial Officer, Elias Elias, Chief Legal and Sustainability Officer, Raphaël Beaudoin, Vice President of Operations, and David Lalonde, Vice President of Exploration. We will be referring to a presentation on this call, which is available via the webcast and is also posted on our website. We will be making forward-looking statements during the call. Please refer to our cautionary notes, including in the presentation, news release, and MD&A, as well as the risk factors included in our AIF.

Speaker #2: We'll be referring to a presentation on this call, which is available via the webcast and is also posted on our website. We will be making forward-looking statements during the call.

Speaker #2: Please refer to our cautionary notes, including those included in the presentation, news release, and MD&A, as well as the risk factors included in our AIF.

Speaker #2: Technical information in this presentation has been reviewed and approved by Raphaël Beaudoin, Aya's VP of Operations, and Daniel David Lalonde, Aya's VP of Exploration, both of whom are Aya's qualified persons as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Elizabeth Hamaue: Technical information in this presentation has been reviewed and approved by Raphaël Beaudoin, Aya's VP of Operations, and David Lalonde, Aya's VP of Exploration, both of whom are Aya's qualified persons as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects. I would also like to remind everyone that our presentation will be followed by a Q&A session. With that, I would now like to turn the call over to Benoit La Salle. Benoit.

Speaker #2: I would also like to remind everyone that our presentation will be followed by a Q&A session. With that, I would now like to turn the call over to Benoit Lassalle.

Speaker #2: Benoit?

Benoit La Salle: Elizabeth, thank you. Welcome everybody to this Q4 2025 presentation and full year 2025 as well. I would like to remind everybody that for Aya, the year 2025 is a ramp-up year. That's when we started after the commissioning, which was in December 2024. We did the commissioning of the new plant, and then we went into the ramp-up year. Obviously each quarter saw some improvement. Today, we're pleased to report that the Q4 was an excellent quarter and that the year overall is finishing very, very strong. In the presentation that you have, I would ask you to go to page 4, and you see here that we have record revenue, record net income, and operating cash flow.

Speaker #3: Elisabeth, thank you. Welcome, everybody, to this Q4 2025 presentation—and full year 2025 as well. I would like to remind everybody that for Aya, the year 2025 is a ramp-up year.

Speaker #3: That's when we started, after the commissioning, which was in December of 2024. We did the commissioning of the new plant, and then we went into the ramp-up year.

Speaker #3: So obviously, each quarter saw some improvement. And today, we're pleased to report that the fourth quarter was an excellent quarter, and that the year overall is finishing very, very strong.

Speaker #3: So, in the presentation that you have, I would ask you to go to page four, and you see here that we have record revenue, record net income, and operating cash flow.

Speaker #3: So for the year 2025, our revenues are at $202 million, always reporting in US dollars. So, $202 million compared to $39 million for the previous year.

Benoit La Salle: For the year 2025, our revenues are at $202 million, always reporting in US dollars. $202 million compared to $39 million for the previous year. Our net income stands at $46 million after tax and compared to a loss of $26 million in 2024. I also would like to point out that the $46 million is after more than $14 million of stock-based compensation, which is our 3-year option program for senior management, which is being expensed. When you look at it on an earnings per share basis, at $46 million after tax, it's an earnings per share of $0.32 or $0.33 per share.

Speaker #3: Our net income stands at $46 million after tax, compared to a loss of $26 million in 2024. I also would like to point out that the $46 million is after more than $14 million of stock-based compensation, which is our three-year option program for senior management, and which is being expensed.

Speaker #3: So when you look at it on an earnings-per-share basis, at $46 million after tax, it's an earnings per share of $32 or $33 per share. And, sorry, $32 or $33 per share, but when you look at it before stock-based compensation, you need to add $0.10 to the earnings-per-share basis.

Benoit La Salle: When you look at it on, before stock-based compensation, you need to add $0.10 to the earnings per share basis. The cash flow is very strong. We had a cash flow of, operating cash flow of $72 million compared to -$9 million on the previous year. We have a very strong position, and we're ending the year with a cash balance unrestricted of $136 million. To that, you need to include $16 million of restricted cash, which is in an account for EBRD, just as part of our long-term $100 million loan that we've obtained from EBRD for the construction of Zgounder. Globally, a very strong Q4 and a very strong year knowing that it's a ramp-up year.

Speaker #3: The cash flow is very strong. We had a cash flow of operating cash flow of $72 million, compared to $9 million negative on the previous year.

Speaker #3: So we have a very strong position. And we're ending the year with a cash balance unrestricted of $136 million. And to that, you need to include $16 million of restricted cash, which is in an account for EBRD, just as part of our long-term $100 million loan that we've obtained from EBRD for the construction of Zgunde.

Speaker #3: So globally, a very strong Q4 and a very strong year knowing that it's a ramp-up year. Moving to slide number five, which is where the KPIs are, which I've been telling you about and how we manage starting on the left-hand side on the mining tonnage.

Benoit La Salle: Moving to slide 5, which is where the KPIs are, which I've been telling you about and how we manage. Starting on the left-hand side on the mining tonnage. If you see in Q4, we've mined more tons than we've processed, which is a great sign, meaning that now the mine is putting through more ore than we need at the plant. Therefore, we are increasing our stockpiles. You recall that in Q1, Q2, and Q3, we were processing more than we were mining. Now, in Q4, we are mining more than we're processing. If you look at it on a yearly basis, you can see that we mined 1 million tons and we processed 1.1 million tons.

Speaker #3: If you see in Q4, we've mined more tons than we've processed, which is a great sign, meaning that now the mine is putting through more ore than we need at the plant.

Speaker #3: Therefore, we are increasing our stockpiles. So you recall that in Q1, Q2, and Q3, we

Speaker #1: We were processing more than we were mining Now , in Q4 , we are mining more than we're processing . If you look at it on a yearly basis , you can see that we Mine a million tons and we process 1.1 million tons .

Speaker #1: So, for the year, we did eat up a little bit of our own pad, but for the quarter, we have changed the trend and we're now building RAM pads, which is excellent. The total mining came 62% from the open pit.

Benoit La Salle: For the year, we did eat up a little bit of our run pad, but for the quarter, we have changed the trend and we're now building run pads, which is excellent. The total mining came 62% from the open pit. You know our goal is to be 70/30. We're getting there. But for the year 2025, we are at 62% from the open pit. The milling rate, which is the s- in the middle on page five, is. You see the milling rate, how interesting it is. If you look at Q4 of last year, we were at 1,200 tons per day. You recall that historically we were at 700 tons per day. We were just commissioning the new plant. By the end of Q1, we were at 2,800 tons per day, nameplate capacity.

Speaker #1: You know , our our goal is to be 70 over 30 . We're getting there . But for the year 2025 we are at 62% from the open pit The milling rate , which is in the middle on page five , is you see the milling rate .

Speaker #1: How interesting it is. If you look at Q4 of last year, we were at 1,210 a day. You recall that historically we were at 700 ton a day.

Speaker #1: We were just commissioning the new plant by the end of Q1 . We were at 2810 a day nameplate capacity . So it took one quarter and we were at nameplate capacity .

Benoit La Salle: It took one quarter and we were at nameplate capacity. You see Q2, we were at 3,000 tons a day. Q3, we were at 3,300, and now Q4, we're 3,800 tons a day average. By one year of ramp-up, we're 1,000 tons a day above the nameplate of 2,700. It's about 40% higher than nameplate. Exceptional plant, very well built. If you go to the right and you look at the recoveries and the availability, well, that tells you everything. Not only are we operating 40% above nameplate, the recovery for the year is at 88.4%, but the recovery for Q4 is at 91%. Again, you recall that in Q1 2025, we had issues with the oxygen plant.

Speaker #1: And then you see Q2 , we were at 3000 ton a day , Q3 we were at 3300 . And now Q4 , we're 3800 ton a day average .

Speaker #1: So by one year of ramp up , we're at 1000 tons a day . Above the nameplate of 2700 . So it's about 40% higher than nameplate Exceptional plant very well built .

Speaker #1: And if you go to the right and you look at the—you look at the recoveries and the availability, well, that tells you everything.

Speaker #1: So not only are we operating 40% above nameplate, but the recovery for the year is at 88.4%, and the recovery for Q4 is at 91%.

Speaker #1: Again , you recall that in Q1 2025 , we had issues with the oxygen plant . The recoveries were in the low 80s .

Benoit La Salle: The recoveries were in the low 80s. We told you we would fix that. It was under-designed during the construction and the planning. We corrected it. Now you have a recovery rate of 91.2 in Q4, which is exceptional. It's actually above the design. When we did the feasibility study, our average was supposed to be around 88, and now we're exceeding that by 3 to 4 points. Plant availability, you see it on the right-hand side of the slide, page five. Plant availability in Q4 is 99%. I don't think you can beat that. It's extremely high. For the year, we're at 96%. Obviously, it's a brand-new plant, so we're comfortable with this. But all in all, what this is telling us is the plant is absolutely running well.

Speaker #1: We told you we would fix that . It was under design . During the construction and the planning , we corrected it and now you have a recovery rate of 91.2 in Q4 , which is exceptional .

Speaker #1: It's actually above the the design . When we did the feasibility study . Our average was supposed to be around 88 . And now we're exceeding that by 3 to 4 points .

Speaker #1: Plan availability . You see on the right hand side of the slide page five plant availability in Q4 is 99% . I don't think you can beat that .

Speaker #1: It's extremely high for the year . We're at 96% . Obviously , it's a brand new plant , so we , you know , we're we're comfortable with this .

Speaker #1: So, but all in all, what this is telling us is the plant is absolutely running well. It was built, you recall, a little bit under budget.

Benoit La Salle: It was built, if you recall, a little bit under budget. We commissioned it on time. We ramped it up in one year or in three quarters, and now we're running above nameplate. It's a very robust plant that we have. We produced in Q4 1,547,000 ounces, some of which came from Boumadine, because you know that Boumadine, we're processing stockpile. Globally, it was a very strong quarter. Going to page 6, I think that is the summary of our industry. On the left-hand side, you see it's all about no margin. It's all about margin. Q4 2024, the margin was, at the time, because we were in ramp-up, in commissioning even, the margins were very, very small.

Speaker #1: We were we commissioned it on time . We ramped it up in , in , in , in one year or in three quarters .

Speaker #1: And now we're running above nameplate . So it's a very robust plan that we have . We produce in Q4 1,547,000oz , some of which came from Boumédiene , because you know , that Boumédiene , we're processing stockpile .

Speaker #1: So globally , it was a very strong quarter Going to page six , I think that is the the summary of our industry on the left hand side , you see , it's all about now margin .

Speaker #1: It's all about margin . Q4 2024 , the margin was at the time because we were in ramp up . So in commissioning , even so , the margins were very , very small .

Benoit La Salle: You see to Q1, we get into a margin of $13. Q2, we have, well, $13 margin, and then in Q3, the margin becomes almost $20. Now, the margin's $38 in Q4, and the margin for Q1, because, you know, we're now done Q1, we know that the average realized price for the period of Q1 is more like $80. We're about $20 above Q4. That is everything. This is what our industry is all about right now, is the margin. The margin is very high. It's something that, you know, helps us manage the mining, the grade, the cutoff. Also is showing us and is creating a lot of liquidity.

Speaker #1: And then you see, in Q1, we get into a margin of $13. In Q2, we have a $1,213 margin. And then in Q3, the margin becomes almost $20.

Speaker #1: Now the margin is $38 . In Q4 . And and the margin for Q1 , because , you know , we're now done know that the average realized price up for the period of Q1 is more like $80 .

Speaker #1: So we're about $20 above Q4, but that is everything. This is what our industry is all about right now—it's the margin.

Speaker #1: So the margin is , is , is , is , is very high . It's something that , you know , helps us manage the mining , the grade , the cut off , but also showing us and is creating a lot of liquidity .

Benoit La Salle: On the right-hand side of the slide, you see the revenue from Q1 at $34 million to all the way up to Q4 at $75 million. That Q4 at $75 million is based on a net realized silver price of $58. You can imagine that going forward, we are a believer in the silver price. I mean, it's just going to get better. If you look at the net income, Q1 in the ramp up, and I said that in the previous quarters, you know, how many times do you see net income in a ramp-up period? Net income of $7 million in Q1, of $9 million in Q2, $12 million in Q3, and $18 million in Q4.

Speaker #1: So on the right hand side of the slide , you see the revenue from Q1 at 34 million to all the way up to Q4 at 75 million .

Speaker #1: And that Q4 at $75 million is based on a net realized silver price of $58. So you can imagine that going forward.

Speaker #1: We are believer in in the silver price . I mean , it's just going to get better . If you look at the net income Q1 in the ramp up and I said that in the previous quarters , you know , how many times do you see net income in a ramp up period .

Speaker #1: So, net income of $7 million in Q1, $9 million in Q2, $12 million in Q3, and $18 million in Q4.

Benoit La Salle: Very strong Q4 again, in Q4, we're at earnings per share of $0.12 and for the year of $0.32. Again, this is after $0.10 of stock-based compensation. Very strong quarter. The plant's running well. The profitability is there. The margins are there. We have enough cash, and that what takes us to slide number 7, is we have a very strong balance sheet with $136 million in cash. In Q4 of this year, we generated, before working cap $68 million, of cash flow before working cap changes, $68 million. For Q4, it was $35 million. Sixty-eight for the year, thirty-five for the quarter. That pays for all of our expenses. You know, the CapEx, the capital expenditure for the year was $33 million.

Speaker #1: So very strong Q4 again . And with in Q4 , with an earnings per share of $0.12 . And for the year of $0.32 , again , and this is after $0.10 of stock based compensation .

Speaker #1: So very strong quarter . The plant's running well , the the profitability is there . The margins are there . And and we have enough cash .

Speaker #1: And that takes us to slide number seven, as we have a very strong balance sheet with $136 million in cash in Q4 of this year.

Speaker #1: We generated before working cap 68 million of cash flow , before working cap changes , 68 million for Q4 . It was 35 .

Speaker #1: So 68 for the year , 35 for the quarter . That pays for all of our expenses . So , you know , the CapEx , the capital expenditure for the year was 33 million .

Benoit La Salle: The exploration was $42 million. That's for 2025. Now, for 2026, capital and exploration are similar, a bit higher on exploration. You can see that the cash flow generated covers more than the capital expenditure and the exploration expense. Very strong year again. The cash position unrestricted is at $136 million, and we also have a little credit facility of $10 million available with EBRD. It's a $25 million. We did draw on $15 million on it just 'cause we had it, and we did not want the credit facility to end. We still have $10 million readily available. These are the results, but we're looking at the year 2025.

Speaker #1: The exploration was $42 million. That's for 2025. Now, for 2026, capital and exploration are similar, with a bit higher on exploration.

Speaker #1: But you can see that the cash flow generated covers more than the capital expenditure and the exploration expense . So very strong year .

Speaker #1: Again , the cash position unrestricted is at 136 . And we also have a little credit facility of 10 million available with IBRD .

Speaker #1: It's a $25 million. We did draw on $15 million on it just because we have it. And we did not want the credit facility to end.

Speaker #1: And but we still have 10 million readily available . So this is these are the results . But we're looking at the year 2025 .

Benoit La Salle: We just talked about the financial results, the operation, the fact that the mine is producing more than what the mill needs. The mine's running well, the underground's running where we want it to be. The open pit is running where we want it to be. The open pit needs to increase a little bit. It's throughput, but we're exceeding what we need at the plant. What we did as well in 2025 was a new resource and reserve update at Zgounder. We reviewed the mine plan, we reviewed all the geological model. You know, we've changed the mining approach going from selective, very restrictive mining, where we would take the high-grade zone, and we went to more of a bulk mining scenario.

Speaker #1: So we just talked about the financial results . The operation , the fact that the mine is , is , is producing more than what the mill needs .

Speaker #1: So the mines running well , the underground is running where we want it to be . The open pit is running where we want it to be .

Speaker #1: The open pit needs to increase a little bit . It's it's throughput , but it's we're , we're , we're exceeding what we need at at the plant .

Speaker #1: What we did as well in 2025 was a new resource—a reserve resource update as well. So we reviewed the mine plan.

Speaker #1: We reviewed all the , the geological model . We've , you know , we've changed the mining approach , going from selective , very restrictive mining where we would take the high grade zones and we went to more of a bulk mining scenario .

Benoit La Salle: The reason is because Zgounder is very, very unique geologically. It's not a vein system. You're not following a vein like most silver mines, where you mine what you see, and you mine the vein, and you have most of the time silver, a little bit of gold, some have lead and zinc. Here, it's not the case. Here, this Zgounder mine is a loaf of bread. It's 200 meters wide, it's 1.4 kilometers long, it's 700 meters deep, and it's mineralized. In there, you have some structures where the fluids went by, and those structures are extremely high grade. Globally, the envelope is mineralized. We've changed the approach. We've reviewed what was there.

Speaker #1: And the reason is , is because there is very , very unique geologically is it's not a vein system . You're not following a vein like most silver mines , where you mine what you see and you mine the vein and you have most of the time , silver , a little bit of gold , some have lead and zinc .

Speaker #1: Here . It's not the case here . There's mine is a loaf of bread . It's 200 meter wide . It's 1.4km long .

Speaker #1: It's 700 meters deep, and it's mineralized in there. You have some structures where the fluids went by, and those structures are extremely high grade.

Speaker #1: But globally , the envelope is mineralized . So we've changed the approach . We've reviewed what was there . Of course , with the new silver price .

Benoit La Salle: Of course, with the new silver price, it's extremely important to understand the geology because we do not wanna leave behind pockets of 100 gram per ton silver, though they're not in the model or they were deemed to be non-economical four years ago. Today, this is absolutely economical. What we have is we now mine the entire structure. We have created stockpiles, so a lower grade stockpile between 40 and 80 gram, which is set aside for later. We have the regular stockpile, which we, you know, quantify. Of that, we have 250,000 ton on the regular stockpile.

Speaker #1: It's extremely important to understand the geology because we do not want to leave behind pockets of 100 gram per tonne silver, though they're not in the model or they were deemed to be non-economic four years ago.

Speaker #1: Today . This is absolutely economical . So what we have is we now mine the entire structure . We have created stockpiles . So a lower grade stockpile between 40 and 80g , which is set aside for later .

Speaker #1: We have the regular stockpile , which we , we , you know , we , we quantify of that . We have 250,000 tons on the regular stockpile .

Benoit La Salle: We follow the mining based on our mine model, but what we are mining is not, again, not a vein, but really a mineralized loaf of bread, which is, you know, we've gone from selective mining to bulk mining. Makes a big difference. You see it on page nine. On page nine, you have the new mine plan. The new mine plan accounts for 6 million ounces of production per year for 11 years. It has an average cash cost for the period of $16.26, an AISC of around $19. If you look at the mine plan in the Form 43-101 document, you see that for 2026, we're forecasting in that mine plan, 5.8 million ounces per year with a cash cost of around $21.

Speaker #1: And we follow the mining based on our mind model . But what we are mining is not , again , not a vein , but a really a mineralized , a loaf of bread , which is , you know , we've gone from selective mining to bulk mining makes a big difference .

Speaker #1: And you see it on page nine . So on page nine , you have the new mine plan , the new mine plan accounts for 6,000,000oz of production per year for 11 years .

Speaker #1: It has an average cash cost for the period of $16.26 . And a spike of around $19 . And if you look at the mine plan in in the 43 , 100 , one document , you see that for 2026 , we're forecasting in that time plan 5.8 million ounces per year with a cash cost of around $21 .

Benoit La Salle: The reason is because of the strip. We're at the beginning of the open pit, we have a lot of strip. Strip ratio is between 13 and 15. We have a lot of strip, and hence, that increases the cash cost in the first few years, and the cash costs will reduce in the later years as the strip is gonna be coming down seriously. Today's Zgounder is done. It's built, it's debugged, it's running smoothly. It has its own team, it's accountable, and we know and it's predictable. It will be 6 million right now based on what we know in geology, 'cause, of course, we're always looking for more. But with what we know, it's 6 million ounces per year for 11 years with an all-in, with a cash cost of $16.26.

Speaker #1: And the reason is, because of the trip, is we're at the beginning of the open pit. We have a lot of strip. Strip ratios are between 13 and 15.

Speaker #1: So, we have a lot of strip enhance that increases the cash cost in the first few years, and it reduces the cash costs—will reduce in the later years as the strip is going to be coming down seriously.

Speaker #1: But so today's gun there is , is done . It's built , its debugged , it's running smoothly . It has its own team .

Speaker #1: It's accountable, and we know, and it's predictable. So it will be 6 million right now based on what we know in geology.

Speaker #1: Because of course we're always looking for more . But what we know , it's 6,000,000oz per year per 11 years with an all in with a cash cost of 1626 .

Benoit La Salle: This year, going to page 10, this year being 2025, we've completed the PEA on Boumadine. Now, that's been, you know, in the making for a couple of years. We've done a lot of drilling. We knew that this was a very robust project. We did it on the 2024 resource, which was available at the beginning of 2025. We did a very thorough PEA with a lot of the work done to higher than a PEA level. What this is showing us, the highlight of the PEA is the low initial CapEx.

Speaker #1: Also this year and going to page ten this year being 2025 , we've completed the PA on Boumeddiene . Now that's been , you know , in the making for a couple of years .

Speaker #1: We've done a lot of drilling. We knew that this was a very robust project, and we did it on the 2024 resource, which was available at the beginning of 2025.

Speaker #1: And we did a very thorough PA, with a lot of the work done at a higher level than the PA level. And what this is showing us—the highlight of the PA—is the low initial CapEx.

Benoit La Salle: That's the highlight of the PEA, $446 million of CapEx to build a company or a project that will be producing per year for the first 5 years, 400,000 ounces of gold equivalent or 37.5 million ounces of silver equivalent. Now, we're showing it to you on a 1 to 5 years because year 6 and after will be compensated by putting in the 2025 drill program, which was not put in at the time. We are doing this as we speak, and that will be ready for the end of June, beginning of July. That's going to change the mine plan, and it's going to change the production profile in the later years. But based on the 2024 results, you have a project using $2,800 gold and $30 silver.

Speaker #1: That's the highlight of the PA: $446 million of CapEx to build a company or a project that will be producing, per year for the first five years, 400,000 ounces of gold equivalent, or 37.5 million ounces of silver equivalent.

Speaker #1: Now we're showing it to you on a 1 to 5 years , because year six and after will be compensated by putting in the 2025 drill program , which was not put in at the time .

Speaker #1: And we are doing this as we speak . And that will be ready for the end of June , beginning of July , and that's going to change the mine plan , and it's going to change the production profile in the later years .

Speaker #1: So, based on the 2024 results, we do have a project using $2,800 gold and $30 silver. You have a project, on a pre-tax basis, that gives us $2.2 billion of net present value.

Benoit La Salle: You have a project on a pre-tax basis that gives us $2.2 billion of net present value. It's got a CapEx efficiency ratio of 5 to 1, CapEx to NPV, an internal rate of return of 69% and a payback of 1.3 years, and that is using 2,800 gold and $30 silver. You can imagine that at the current price and with the production that's gonna be updated, this project is even more robust than what we're seeing. All of that for year one to five, the AISC on a gold equivalent production will be around $920.

Speaker #1: It's got a CapEx efficiency ratio of 5 to 1 , CapEx to NPV and internal rate of return of 69% , and a payback of 1.3 years .

Speaker #1: And that is using $2,800 gold and 30 . Dollars silver . So you can imagine that at the current price and with the production , that's going to be updated at this project , is even more robust than what we're seeing .

Speaker #1: And all of that for year 1 to 5 , the ASIC of on the on a gold equivalent production will be around $920 .

Benoit La Salle: Where do you have that kind of a project that can produce 400,000 ounces of gold equivalent on an AISC of low $900 and a CapEx of $446? Extremely unique, extremely rare, in a great jurisdiction, and that's what Boumadine is all about. When we look at Boumadine on page 21, on page... Sorry, it's 11. It's a district scale project with low initial CapEx, extremely rare, extremely unique. It has a strong production profile with high-grade material. The mining permit is in hand. Strong economics based on production of three marketable concentrate. Now, that's very important, you have a lead concentrate, you have a zinc concentrate, and then you have a pyrite concentrate. Out of the three concentrate, we will recover silver or gold, silver, lead, and zinc.

Speaker #1: So, where do you have that kind of a project that can produce 400,000 oz of gold equivalent, on an AISC in the low $900s and a CapEx of $446 million?

Speaker #1: Extremely unique , extremely rare in a great jurisdiction . And that's what Boumeddiene is all about . So when we look at Boumediene on page 21 , on page 11 , it's a district scale project with low initial CapEx , extremely rare , extremely unique .

Speaker #1: It has a strong production profile with high-grade material. The mining permit is in hand, with a strong economic base on production of three marketable products.

Speaker #1: Concentrate . Now that's very important . Is you have a lead concentrate . You have a zinc concentrate and then you have a pyrite concentrate .

Speaker #1: And out of the three concentrate , we will recover . Silver or gold ? Silver , lead and zinc . Now the pyrite concentrate with .

Benoit La Salle: Now, the pyrite concentrate, which historically people thought was a problem, well, it's actually now an asset. Because following the war and following what's been happening in the Middle East, sulfur has gone from $100 a ton to $500 a ton and is expected to go as high as $800 a ton. Sulfur comes from the pyrite concentrate 'cause we have sulfur in the pyrite concentrate. The value of our concentrate has never been as good as it is right now and is expected to continue. Historically, when people were saying, "you know, projects like that are complicated," and all that, sure, if you have low-grade material, it can be more complicated.

Speaker #1: Historically , people thought was a problem . Well , it's actually now an asset . Because following the war and following what's been happening in the Middle East , sulfur has gone from $100 a ton to $500 a ton and is expected to go as high as $800 a ton .

Speaker #1: Sulfur comes from pyrite concentrate because we have sulfur in the pyrite. So the value of our concentrate has never been as good as it is right now, and is expected to continue.

Speaker #1: So historically , when people were saying , you know , the projects like that are complicated and all that , sure . If you have low grade material , it can be more complicated .

Benoit La Salle: In this case, with a project where, on a silver equivalent basis, you're at 450 g/t or, on a gold equivalent basis, you're almost 5 g/t. You're in open pit situation and underground, and you have 45% sulfur in your pyrite concentrate. This is really a valuable concentrate. We're fast-tracking this. We're pushing now on the revised PEA, which will show you exactly how profitable this project is going to be once we've inputted the new resource/reserve model and some of the new data that we have, especially on the marketing side of the concentrate.

Speaker #1: But in this case , with a project where the the on a silver equivalent basis , you're at 450 gram per ton or in a gold equivalent basis , you're almost five grand per ton .

Speaker #1: You're in an open-pit situation and underground, and you have 45% sulfur in your pyrite concentrate. This is really a valuable concentrate.

Speaker #1: So we're fast tracking this . We're pushing now on the revised PA , which to show you exactly how profitable this project is going to be .

Speaker #1: Once we inputted the new resource reserve resource model and some of the new data that we have , especially on the marketing side of the concentrate , again , to close the year 2025 , we did a lot of drilling .

Benoit La Salle: Again, to close the year 2025, we did a lot of drilling. As I always say, Aya is an exploration company, but it has, you know, one project in operation, one project in development, and we do a lot of drilling. At Zgounder this year, we completed 28,000m of drilling. The budget was 25,000m. And the average cost per meter is $144. Extremely good cost. This is all core drilling. It's all diamond drilling. It's giving us a lot of information. We have many new targets. We have discovered extensions to the Zgounder main project, and we also have many new targets that we will be drilling this year. At Boumadine we've drilled 150,000m this year, this year being 2025. The target was 140.

Speaker #1: I always say Aya is an exploration company , but it has , you know , one project and operation , one project in development .

Speaker #1: And we do a lot of drilling . So it's good . This year we completed 28,000m of drilling . The budget was 25,000 and and the the average cost of meter is $144 .

Speaker #1: So extremely good cost . Very . This is all core drilling . It's all diamond drilling . It's giving us a lot of information .

Speaker #1: We have many new targets . We have discovered extension to this main main project . And we also have many new targets that we will be drilling this year at Boumediene .

Speaker #1: We've drilled 150,000m this year . This year being 2025 , the target was 140 . We exceeded the target . Our our cost of drilling is also similar at $144 a meter .

Benoit La Salle: We exceeded the target. Our cost of drilling is also similar at $144 a meter, diamond drilling. We have discovered extension to the zones, the three mineralized zones that we have, and we've also discovered new zones in the Boumadine complex. You know, Boumadine is a very large piece of land. It's a district. This year we've added 10 new permits. We have a footprint that is in excess of 300 square kilometers under the exploration permit, and we have an additional 500 kilometers under a reconnaissance permit, which is an exploration permit, but not yet turned into the exploration permit that gets transferred into a mining permit. It's a different step in how they approach exploration in Morocco.

Speaker #1: Diamond drilling . We have discovered , or we have discovered , extension to the zones . The three mineral mineralized zones that we have .

Speaker #1: And we've also discovered new zones in in the Boumediene complex . You know , Boumediene is a very large piece of land . It's a district .

Speaker #1: This year, we've added ten new permits. We have a footprint that is in excess of 300 km² under the exploration permit.

Speaker #1: And we have an additional 500 kilometers under a reconnaissance permit, which is an exploration permit, but not yet turned into the exploration permit that gets transferred into a mining permit.

Benoit La Salle: We've had a fantastic year drilling almost 180,000 meters in 2025 with beautiful results at Zgounder and at Boumadine. Moving just to the guidance. This is already public. We told you that this year we expect to produce between 6.2 and 6.8. We know that in the mine plan at Zgounder, it's based for 5.8 million. Again, just to be conservative, we've given a guidance of 5.2 to 5.8, and we've put in 1 million ounces silver equivalent at Boumadine, where we're treating tailings. The cash cost at Zgounder is as per the mine plan. Again, I would refer you to the 43-101 document, F-2150, and Boumadine is at $10. That is extremely conservative.

Speaker #1: So it's different steps in how they approach exploration in Morocco. So we have—we've had a fantastic year, drilling almost 180,000 meters in 2025, with beautiful results at Gundagai and at Boumediene. Moving just to the guidance, we...

Speaker #1: This is already public. We told you that this year we expect to produce between 6.2 and 6.8. We know that in the mine plan as Grundare.

Speaker #1: It's based for 5.8 million . Again , just to be conservative , we've given a guidance of 5.2 to 5.8 , and we've put in 1,000,000oz of silver equivalent at Boumediene , where we're treating tailings .

Speaker #1: The cash cost as there is , as per the mine plan . Again , I would refer to you to the 43 101 document , F 2150 , and Boumediene is is at $10 .

Benoit La Salle: You will see that in Q4, we were a lot lower than this. Sustaining and growth capital for the year is at $36 million, which is at Zgounder mainly, is to push the ramp down to the granite, to the contact of the granite, where we see high-grade mineralization. We're gonna be pushing this all the way down. We will also be putting in an ore sorter, and we are working on increasing throughput capacity. Though we are at 3,800, we're putting a little bit of work to bring our throughput capacity to exceed 4,000 tons per day. Very reasonable capital to be spent this year.

Speaker #1: That is extremely conservative . You will see that in in Q4 we were a lot lower than this sustaining in growth capital for the year is at 36 million , which is at mainly is to push the , the ramp down to the granite to the contact , to the granite where we see high grade mineralization .

Speaker #1: So we're going to be pushing this all the way down . We will also be putting in an ore sorter , and we are working on increasing throughput capacity , though we are at 3800 , we're putting a little bit of work to bring our throughput capacity to exceed 4000 tons per day .

Benoit La Salle: The exploration program, of course, the $60 million exploration program, and that is mainly, you know, 200,000 meters at Boumadine, which we really hope to exceed. I have to say that as of now, we are ahead of schedule there on our drilling, and we will be drilling 20,000 meters at Zgounder as well. Going forward, for 2026, the guidance is straightforward. The costs are well under control, as we are now, you know, in cruising speed at Zgounder. Just to close, what's the focus and where are we going? The focus is to accelerate Boumadine. We do not need debt financing. We don't need new equity financing. We can do Boumadine with our own cash.

Speaker #1: So very reasonable capital to be spent this year . And the exploration program , of course , the $60 million exploration program , and that is mainly , you know , 200,000m at at Boumédiene , which we really hope to exceed .

Speaker #1: And I have to say that, as of now, we are ahead of schedule there on our drilling, and we will be drilling 20,000 m there as well.

Speaker #1: So the going forward for 2026 , the guidance is straightforward . The costs are well under control as we are now . You know , in cruising speed at So just to to close the what's the focus and where are we going ?

Speaker #1: So the focus is to accelerate Boumédiene. We do not need debt financing. We don't need new equity financing. We can do Boumédiene with our own cash.

Benoit La Salle: We totally have $130 million in cash. If everything stays where we are right now, we could be generating net of all expenses, $200 million this year. We can fast-track the feasibility study, which we are fast-tracking. All the work that needs to be done, every chapter in the feasibility study is being worked on right now. We will start the construction of every element that is completed in this feasibility study as quickly as possible. The drilling, as I've mentioned, is ongoing at 180,000 meters of infill drilling on the main structures, which is to convert inferred resource into measured and indicated. Regional is really depending on what we see and what we find, but currently budgeted at 20,000 meters.

Speaker #1: We totally have $130 million in cash. If everything stays where we are right now, we could be generating, net net of all expenses, $200 million this year.

Speaker #1: So we can fast track the feasibility study in which we are fast tracking feasibility study . All the work that needs to be done , every chapter in in the feasibility study is being worked on right now .

Speaker #1: And we will start the the construction of every element that is completed in this feasibility study as quickly as possible . The drilling , as I mentioned , is ongoing .

Speaker #1: 180,000 meters of infill drilling on the main structures, which is to convert inferred resource into measured and indicated, and regional is really depending on what we see and what we find.

Benoit La Salle: This is completely open as we're drilling some very high-priority targets on the Boumadine regional play. At Zgounder, we will continue to optimize mining operation. As I said, we want to increase the open pit a little bit more. We want to better control the grade in the open pit. We still need to work on that. Of all the KPIs, the only one left is to really control the grade in the open pit a little bit better. The underground is done. The throughput is done with the underground. We will continue to optimize mining operation. We have steady state production. Of course, our goal is to take the 3,700 tons per day and push it up to 4,000 tons per day. We always look at other means to increase plant capacity.

Speaker #1: But currently budgeted at 20,000 m. But again, this is completely open as we're drilling some very high-priority targets on the regional play agenda.

Speaker #1: We will continue to optimize mining operations. As I said, we want to increase the open pit a little bit more. We want to better control the grade in the open pit.

Speaker #1: We still need to work on that. Of all the KPIs, the only one left is to really control the grade in the open pit a little bit better.

Speaker #1: The underground is done . The throughput is done with the underground . So we will continue to optimize mining operation . We have steady state production .

Speaker #1: Of course, our goal is to take the 3,700 tons per day and push it up to 4,000 tons per day. And we always look at other means to increase plant capacity.

Benoit La Salle: The story is very simple, is you have an asset that's in production, that's built, that's debugged, that has 100 million ounces of measured and indicated resource, that will give you 6 million ounces a year at an AISC of $19. Let's put it, sixteen cash costs plus about three. Let's say $20. You have 6 million ounces with a $20 all in cash costs or costs, not cash costs. With that, it generates enough money to build the second asset, which is currently in development, which is called Boumadine. Boumadine today stands at 450 million ounces of silver equivalent, but that is being updated because that did not take into account the 2025 drill results. That's being put in as we speak. We'll have the revised PEA available for you in a couple of months.

Speaker #1: So the story is very simple , is you have an asset that's in production , that's built , that's debugged , that has 100,000,000oz of measured and indicated resource that will give you 6,000,000oz a year at an ASIC of $19 .

Speaker #1: Let's put it at 16 cash cost plus about three. So let's say $20. So you have 6,000,000 ounces with a $20 all-in cash cost—or cost, not cash cost.

Speaker #1: And with that, it generates enough money to build the second asset, which is currently in development, which is called Boumédiene Boumediene.

Speaker #1: Today stands at 450,000,000 oz of silver equivalent. But that is being updated because that did not take into account the 2025 drill results that's being put in as we speak. We will have the revised PA available for you in a couple of months. But on page 15, to the right...

Benoit La Salle: On page fifteen, to the right, that to me is the future of Aya. If you look at Aya and what kind of strength it has. Well, it has a project that will produce 6 million ounces called Zgounder, and it has a second project, which is discovered geology done, metallurgy done, flow sheet done, water identified, power from the grid, people available. We're taking the same construction team. Many suppliers are the same. That project, once built, will produce 37 million ounces per year of silver equivalent. As a company, we will be approximately 43 million ounces silver equivalent as a company. When you look at this and you compare this level to others, we're clearly the up and coming silver producer with these two assets, not taking into account Zgounder regional, Boumadine regional, and the other assets that we have.

Speaker #1: That to me is the future of AIA is you look at AIA and what kind of strength it has . Well , it has a project that will produce 6,000,000oz calls , and it has a second project , which is discovered geological geology done , metallurgy done .

Speaker #1: Flowsheet done . Water identified power from the grid . People available . We're taking the same construction team . Many suppliers are the same .

Speaker #1: And that project, once, will produce 37,000,000 oz per year of silver equivalent. So as a company, we will be approximately 43,000,000 oz silver equivalent as a company.

Speaker #1: So when you look at this and you compare this level to others , we're clearly the up and coming silver producer with the these two assets , not taking into account their regional medicine , regional and the other assets that we have .

Benoit La Salle: Going to page 16 to close, I always say that to be successful, you need three things, and these are the three. The end of each of the triangle is you need geology, which we have in Morocco. You need jurisdiction, which we have in Morocco, because it is absolutely one of the best jurisdiction in the world. You need the people that have done it, that have built mines, have developed mines, have made discoveries, and we have that. If you have geology, you have jurisdiction, you have people, and you are disciplined in not issuing too many shares. This is the success to have the best return on equity, meaning you have strong production, and we have here. If you look at our triangle, geology is at the top.

Speaker #1: So, going to page 16 to close, as I always say, to be successful you need three things. And these are the three.

Speaker #1: The end of each of the triangle is you need geology, which we have in Morocco. You need jurisdiction, which we have in Morocco because it is absolutely one of the best jurisdictions in the world.

Speaker #1: And you need the people that have done it, that have built mines, have developed mines, have made discoveries, and we have that.

Speaker #1: So, if you have geology, you have jurisdiction, you have people, and you are disciplined in not issuing too many shares.

Speaker #1: This is the success to have the best return on equity , meaning you have strong production . And we have here . So if you look at our triangle , geology is at the top .

Benoit La Salle: Strong growth profile, absolutely, moving from 6 million ounces to 43 million ounces of silver equivalent. Core asset strength, we have two districts, and we're adding more districts to the story as we're putting in more permits. Exploration track record, I think we have the best in the industry, having discovered 550 million ounces of silver equivalent in the last five years. You have a tight capital structure with only 141 million shares outstanding. No need to increase that number. We have cash in the bank. We're generating cash, and we're building a tier one asset, which is Boumadine, that will add 37 million ounces of silver equivalent as soon as it's ready to get into production.

Speaker #1: Strong growth profile, absolutely. Moving from 6,000,000 oz to 43,000,000 oz of silver equivalent for asset strength. We have two districts and we're adding more districts to the story as we're putting in more permits, exploration track record.

Speaker #1: I think we have the best in the industry. Having discovered 550 million ounces of silver equivalent in the last five years. So you have a tight capital structure with only 141 million shares outstanding.

Speaker #1: No need to increase that number. We have cash in the bank. We are generating cash, and we're building a tier one asset, which is Boumédiene, that will add 37,000,000 oz of silver equivalent as soon as it's ready to get into production.

Benoit La Salle: When you look at this triangle, this is the, you know, why you want to be with us in Aya, because you have the three elements that really create success. This completes the formal part of the presentation. I will now, operator, open it up for questions.

Speaker #1: So, when you look at this triangle, this is the, you know, why you want to be with us in AIA, because you have the three elements that really create success.

Operator: Our first question comes from the line of Justin Chan of SCP Resource Finance. Please go ahead.

Speaker #1: So this completes the formal part of the presentation. I will now open it up for questions.

Speaker #2: Thank you. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again.

Speaker #2: Please stand by while we compile the Q&A roster. And our first question comes from the line of Justin Chan of SCP Resource Finance.

Operator: Our first question comes from the line of Justin Chan of SCP Resource Finance. Please go ahead.

Justin Chan: Hi, Benoit, Raphaël, Ugo Landry-Tolszczuk, and team. Congrats on a big year. My first question is just, you touched on sulfur today. I was just curious. I guess maybe both on both the positive and negative aspects of current events. Can you talk us through, are you seeing any changes in terms of fuel pricing? I guess, how do you plan ahead for that this year? Then on sulfur, for the updated PEA, could you give us a sense of how the payabilities might look? I realize, like, today's terms might not be what you've modeled long term, but I'm just curious if you can kind of give us a quantum on the payabilities from the prior PEA.

Speaker #2: Please go ahead

Speaker #3: Hi , Benoit . Raphael , you go and team , congrats on a on a big year and yeah , my my first question is just you touched on sulfur today .

Speaker #3: I was just curious , I guess maybe both on both the positive and negative aspects current events . Could you talk us through , are you seeing any changes in terms of fuel pricing ?

Speaker #3: And I guess, how do you plan ahead for that this year? And then on sulfur, for the updated PA, could you give us a sense of how the probabilities might look?

Speaker #3: I realize , like today's today's terms might not be what you model long term , but I'm just curious if you can kind of give us a quantum on , on the ability from the prior p .

Benoit La Salle: Yeah. Thanks, Justin. It's a very, very good question and very current question. We're on that, on a regular basis. I'll turn this over to Hugo, and Hugo and Rafael are managing that part of, you can imagine, of the PEA. Hugo, do you wanna go ahead?

Speaker #1: Yeah , thanks , Justin . It's it's a very , very good question and very current question . We're on that on a regular basis .

Speaker #1: I'll turn this over to Ugo, and you can go and allow for our managing that part, if you can imagine, of the PA.

Ugo Landry-Tolszczuk: Yeah. On sulfur, there's a few things. Obviously, sulfur pricing has gone from, I call it $150 when we did our PEA to close to $700 today. Gold and silver prices have significantly increased since our PEA. The second thing is that because we're selling our tailings, we also have a much better idea of the market. We actually have some guys in China right now, meeting with some of our clients. We expect that the payables that we have in our PEA to go up pretty substantially. Will we get paid for sulfur? I don't think we're gonna have that as a base case in our update.

Speaker #1: So you go , do you want to go ahead ? Yeah . So on sulfur there's a few things . Obviously sulfur pricing has gone from call it $150 .

Speaker #1: When we did our PA to close to 700 today and also golden silver prices have significantly increased since since our since our P .

Speaker #1: The second thing is that because we're selling our , our tailings , we also . We also have a much better idea of the market .

Speaker #1: We actually have some guys in China right now meeting meeting with some of our clients . And so we expect that the Pei abilities that we have in our PA to go up pretty , pretty substantially , will we get paid for sulfur ?

Ugo Landry-Tolszczuk: We are looking at some stuff in Morocco. We do have one of the largest purchases of sulfur in the world in the OCP. With current price environments, obviously, us exporting a pyrite, which is very high sulfur content, I think they did like to have some of that. We're looking at that as well, but I think that's gonna be a separate thing from the main project.

Speaker #1: I don't think we're going to have that as a base case in our in our in our update , but we are looking at some stuff in , in , in Morocco .

Speaker #1: We do have one of the largest purchasers of sulfur in the world in the ECP. And with the current price environment, obviously the U.S. is exporting a pyrite, which is very high sulfur content. I think they'd like to have some of that.

Benoit La Salle: Justin, just in the PEA, the payability was established at 73%. Since then, they had revised their offer to 75% payability, and there's no long-term agreement yet signed because they're indicating to us that, you know, this will also improve, as Hugo said, considerably. We're keeping all of the options open. We have an agreement that is signed for the Bou Azoun tailings because that is being exported every quarter right now to probably similar clients or the same clients that we're gonna have for the Bou Azoun main production in a couple of years. Is that-

Speaker #1: So we're looking at that as well. But I think that's going to be kind of a separate—a separate thing from the main project.

Speaker #4: Justin , just in the in the PA , the Pei was established at 73% . Since then , they had revised their offer to 75% , Payability .

Speaker #4: And and there's no long term agreement yet signed because they're indicating to us that , you know , this will also improve as we go , said considerably .

Speaker #4: So we're keeping all of the options open . We have an agreement that is signed for the tailings because that is is being exported every quarter right now to the probably similar clients or the same clients that we're going to have for the medicine main production in a couple of years .

Justin Chan: Gotcha. Between the lines.

Benoit La Salle: Yeah.

Justin Chan: Yeah. Above 75 and potentially materially above that?

Benoit La Salle: Exactly, yes.

Speaker #4: Is that is that .

Justin Chan: Okay, perfect. Yeah, just maybe the other part of the question was just in terms of, I guess, what are you guys seeing in terms of fuel prices, consumables? I'd imagine where you are, it's not a question of availability, but just curious how you guys, if you have anything to manage with regards to price and, you know, protecting yourselves, I guess, in the long term.

Speaker #3: Yeah, so above 75, and potentially, potentially materially above that.

Speaker #4: Exactly . Yes .

Speaker #3: Okay . Perfect . And yeah , just maybe the other part of the question was just in terms of , I guess , what are you guys seeing in terms of fuel prices , consumables , I'd imagine where you are .

Speaker #3: It's not a question of availability , but just curious how you guys , if you have , if you have anything to manage with regards to price and you know , protecting yourselves , I guess in the long term

Ugo Landry-Tolszczuk: Yeah. On that, for sure, what's happening right now is affecting fuel prices everywhere. Morocco is not special. Morocco's fuel prices have gone up, basically $0.30 in the last. It's by law. The law states the fuel prices, and so they've gone up pretty substantially. We have that. We have zinc, and we have cyanide. Those are our three main aspects. Our procurement teams are on it. We have quite a bit of cyanide and zinc on site already. I think on that we're quite fine. Then fuel, we have to manage, and it's not so much a price. It's obviously gonna affect cash costs like everybody else.

Speaker #1: Yeah . So on that for sure . What's happening right now is affecting fuel prices everywhere . Morocco is not special . Morocco's fuel prices have gone up basically $0.30 in the last .

Speaker #1: It's by law . So the law states the fuel prices . And so they've gone up . They've gone up pretty substantially . So we have that .

Speaker #1: We have zinc, and we have cyanide. Those are the three main aspects. Our procurement teams are on it. We have quite a bit of cyanide and zinc on site already.

Speaker #1: So I think on that, we're quite fine. And then fuel, we have to manage, and it's not so much a price.

Ugo Landry-Tolszczuk: On availability, we're keeping a close eye on it, and we're working with our contractors and ourselves to see if we can get more storage locally. We have a pretty healthy stockpile as well. Even if ever we'd have to stop the mine, we don't run. We run our plant on electricity, and we can still run for a good while, even if there was ever a constraint on fuel.

Speaker #1: It's obviously going to affect cash costs like everybody else. And then on availability, we're keeping a close eye on it. And we're working with our contractors and ourselves to see if we can get more storage locally.

Speaker #1: And we have a pretty healthy stockpile as well . So even if ever we'd have to stop the mine , we are , we don't run , we run our , our plant on electricity .

Benoit La Salle: Yeah, Justin, the big element here is our energy is from the grid. It's solar and wind, as we know. Unlike many other production assets in Africa, where they have to buy fuel for energy, we do not have to buy fuel for energy. So our consumption is actually quite low when I compare that to what we were doing historically at SEMAFO and what we're buying right now in Aya. It's much lower. So the risk exposure is quite. It's much smaller. As Ugo said, we have stockpile, but we don't see any issues at the moment except for a small increase in the price.

Speaker #1: And so we can still run for a good while, even if we had, if there was ever a constraint on fuel.

Speaker #4: Yeah . Justin , the big element here is our energy is from the grid . It's solar and wind , as we know .

Speaker #4: And unlike many other production assets in Africa, where they have to buy fuel for energy, we do not have to buy fuel for energy.

Speaker #4: So our consumption is actually quite low . When I compare that to what we were doing historically at semaphore and what we're buying right now in , in , it's much , much lower .

Speaker #4: So the , the risk exposure is quite it's much smaller . And as you said , we have stockpile , but , but we don't see any issue at the moment except for a small increase in the price .

Justin Chan: Gotcha. Thanks. No, that's really helpful. Just one last one is, we're almost through the first quarter now. I know it's Q4 reporting, but just curious, I guess with almost a quarter done. I'm just curious what you're seeing in terms of mining from the open pit and underground. In Q4, you did really well on grade from the underground, good on volume. The open pit had a ton of volume, a little bit lower grade. I'm just curious if Q1 looks similar to Q4 or quite different actually.

Speaker #3: Gotcha . Thanks . No , that's that's really helpful . And just just one last one is we're almost through the first quarter now .

Speaker #3: I know it's Q4 reporting , but just curious in the I guess with almost done a quarter , I'm just curious what you're seeing in terms of mining from the open pit and underground .

Speaker #3: So in Q4 , you did really well in grade from the underground good on volume , the open pit had a ton of volume , a little bit lower grade .

Benoit La Salle: Well, Raphaël, do you wanna take this question?

Speaker #3: I'm just curious if Q1 looks similar to Q4 or quite different, actually.

Raphaël Beaudoin: Yes. Hi, Justin. The beginning of the year went quite well. We have continued to increase our stockpile. We have continued to increase our mining rate in the open pit. As I've mentioned before, with what we call the super pit and our change in mining strategy, everything is focused on ounce recovery to increase the recovery in the mine of silver, especially in this pricing environment. This is what the team is focusing on, continue to accelerate the open pit, sustain the underground as it is, and focus on ore recovery. If there's silver in it, we mine it. The head grade has been stable as of what we've seen last year.

Speaker #4: Well, Ralph, do you want to take this question?

Speaker #5: Yes . Hi , Justin . So the beginning of the year , when quite well , we have continued to increase our stockpile , we have continued to increase our mining rate in the open pit .

Speaker #5: As I've mentioned before , with the what we call the Super Pit and our change in mining strategy , everything is focused on ounce recovery to increase the recovery in the mine of silver , especially in this in this pricing environment .

Speaker #5: So, this is what the team is focusing on: continue to accelerate the open pit, sustain the underground as it is, and focus on ore recovery.

Raphaël Beaudoin: We continue to evaluate what the best way, the most cost effective and the fastest way to increase and to sustain plant throughput. This year we have several projects on the go to sustain throughput and to even increase it further. That's reflected in our guidance. Now, as for the grade, as you said, Q1 is almost over, and it's been quite similar, but the strip is slowly decreasing, throughput is stabilizing, and we continue to increase

Speaker #5: So if there's still silver in it , we mine it . The , the , the head grade has been has been stable as of what we've seen , what we've seen last year .

Speaker #5: And , and we continue to , to evaluate what's the best way , the most cost effective and the fastest way to increase and to sustain plant throughput .

Speaker #5: So this year , and we have several projects on the go to sustain throughput and to even increase it further . And , and that's reflected in our , in our guidance .

Speaker #5: Now , as for the grade , as you said , Q1 is almost , is almost over and it's been quite similar , but the strip is slowly decreasing .

Benoit La Salle: to increase our stockpiles. As the year goes on, we will also continue to at least sustain the throughput and find ways to improve it.

Speaker #5: Throughput is stabilizing . And we continue to increase to increase our stockpile . And as the year goes on , we will also continue to , to at least sustain the throughput and find ways to improve it

Justin Chan: Okay, thanks.

Benoit La Salle: Yeah.

Justin Chan: That's really helpful.

Benoit La Salle: Thanks, Justin.

Justin Chan: All right, thanks guys. I'll stay up the line. Thank you very much.

Operator: Thank you. As a reminder, if you have a question, please press star one one. Our next question comes from Don DeMarco of National Bank. Your line is open.

Speaker #3: Okay. Thanks, that's really helpful.

Speaker #4: Thanks , Justin .

Speaker #3: All right . Thanks , guys . I'll skip the line . Thank you very much .

Speaker #2: Thank you . And as a reminder , if you have a question , please press star one one . And our next question comes from Don DeMarco of National Bank .

Don DeMarco: Good morning, Benoit team. Thanks for taking my call. Benoit, you mentioned that a focus is to accelerate Boumadine, and of course, we're looking forward to the updated PEA later this year. What are the levers or potential bottlenecks that you have to fast track the FS? And then even looking at the construction beyond that, you know, how can you potentially expedite that, and how much wiggle room is there in the schedule in certain optimal scenarios?

Speaker #2: Your line is open .

Speaker #6: Good morning . Thanks for taking my call . So , Benoit , you mentioned that focus is to accelerate Boumédiene . And of course , we're looking forward to the updated PA later this year .

Speaker #6: But what are the levers or potential bottlenecks that you have to fast track ? The PFS and then even looking ahead to construction beyond that , you know , how can you potentially expedite that and how much wiggle room is there in the schedule in certain optimal scenarios ?

Benoit La Salle: Well, you know, the fact that you don't need debt is major because as you know, if we needed some debt, you'd have to complete the feasibility study, give it to the lenders. They would hire outside consultants that would come over for a couple of months, review the work, question the work. We'd have to answer you. You're looking at six to nine months of time that is needed just to put the debt facility in place, as we did with Zgounder with EBRD, and, you know, we went through a whole process. In this case, assuming the silver price stays where it is and is or increasing, we don't need that. The team is doing. Like, let's take water.

Speaker #4: Well , you know , the fact that you don't need that is , is , is , is major because as you know , if we needed some debt , you'd have to complete the feasibility study , give it to the lenders .

Speaker #4: They would hire outside consultants that would come over for a couple of months , review the work , question the work . We'd have to answer your you're looking at 6 to 9 months of of time .

Speaker #4: That is needed just to put the debt facility in place , as we did with when we did with Ebrd . And , you know , we went through the whole process in this case , assuming the silver price stays where it is and and is increasing , we don't need that .

Benoit La Salle: Water, you know, we're putting together the strategy where the water is coming from. We probably will have to build some pipelines in between some of the villages where we're gonna take gray water. We're also gonna use one of the aquifer. As soon as that's done, the team will look at what can be done immediately, and we will start that right now. Same thing for power. Power will come from the grid. Power is built, as you know, with the national utility company. We're not gonna wait for a banker to accept the PEA and give us the debt. We will get going immediately. Every chapter that we do, we look at what we can do and how fast we can do it.

Speaker #4: So , so the the team is , is doing like , let's say , let's take water . So water where , you know , we're , we're , we're , we're , we're putting together the strategy where the water is coming from .

Speaker #4: We probably will have to build some pipelines in between some of the villages where we're going to take gray water. We're also going to use one of the aquifers.

Speaker #4: So, as soon as that's done, the team will look at what can be done immediately. And we will start that right now.

Speaker #4: Same thing for power . Power will come from the grid . Power is built , as you know , with the national Utility company .

Speaker #4: We're not going to wait for a banker to accept the P.A. and give us the depth. We will get going immediately.

Benoit La Salle: It's not as nice as having a Gantt chart and you say, "We'll be ready by the mid-2027, and then we'll do the debt financing, and then we'll do the construction." Our mind is let's get this done as quickly as possible. We, you know, are not cutting corners on technical things. We're not cutting corners on the flow sheet or, because it's still an 8,000/10,000 tons per day flotation plant, so not complicated, but you still have to build it. We're not cutting corners. Clearly, the fact that you don't need equity or debt is, will accelerate the construction of this project.

Speaker #4: So every chapter that we do , we look at what we can do and how fast we can do it . So it's , it's , you know , of course , it's not as , as nice as having a , a Gantt chart .

Speaker #4: And you say , we'll be ready by the mid 20 , 27 and then we'll do the debt financing and then we'll do the construction .

Speaker #4: We're our mind is let's get this done as quickly as possible . So we , we , you know , we are not cutting corners on , on technical things .

Speaker #4: We're not cutting corners on, on, on the flow sheet or because it's still an 8,000 slash 10,000 ton per day flotation plant.

Speaker #4: So not complicated , but you still have to build it . So cutting corners , but clearly the fact that you don't need equity or debt is will accelerate the construction of this project .

Don DeMarco: Okay. Yeah, that's a good point. On the debt, I mean, you've got a little bit of debt on your balance sheet right now. Looking at the cash flows that are coming in, are you thinking that maybe you might de-lever some of that, ahead of, you know, as the FS, you know, gets finalized and ahead of the Boumadine construction decision?

Speaker #6: Okay . Yeah , that's a good point . And on the debt , I mean , you've got a little bit of debt on your balance sheet right now .

Speaker #6: And looking at the cash flows that are coming in , are you thinking that maybe you might deliver some of that ahead of , you know , as the p as the F s , you know , is finalized and ahead of a construction decision ?

Benoit La Salle: Yes, absolutely. The debt, as you know, is with EBRD. They're very, very good financial partners. They've been great. They are important in the country. You know, we don't wanna pay them down. If we have even small penalties to pay, which we do have, as per the agreement, we're looking at what we can do with them. On the other hand, the fact that, you know, it's a repayment over four years allows us. Yeah, we think of the EBRD facility today as funding for Boumadine. We could pay it down almost today if we wanted to and be, you know, be done with the debt.

Speaker #4: Yes , absolutely . So the debt , as you know , is with Ebrd , they're very , very good financial partners . They've been great They , they , they , they're important in the country .

Speaker #4: We , we , you know , we don't want to pay them down . And if we have even small penalties to pay , which we do have , that's pretty agreement .

Speaker #4: So we're looking at at what we can do with them . On the other hand , the fact that , you know , it's it's a repayment over four years allows us we think of , of this Ebrd facility Today as funding for , for Boumédiene .

Benoit La Salle: We're also keeping it there while we see where the silver price goes, what's the cash flow per quarter. Because think of it as being, you know, utilized. Whatever is generated is utilized on accelerating Boumadine. We do have the flexibility. Yes, you will see over the next quarters and next year that the debt will be lower, knowing that if we wanted to, at one point in time, in country, we could utilize Zgounder to, you know, if we needed some debt, which we don't, but if we needed some debt, Zgounder could be also the backbone of a special financing, you know, balance sheet financing, not project finance.

Speaker #4: We could pay it down almost today if we wanted to . And be , you know , be done with the , the debt .

Speaker #4: But we're also keeping it in—keeping it there while we see where the silver price goes. What's the cash flow per quarter?

Speaker #4: Because think of it as , as being , you know , utilize whatever is generated is utilized on accelerating boumédiene . So but we do have the flexibility and yes , you will see over the next quarter and next year that the debt will be lower , knowing that if we wanted to , at one point in time in , in country , we could utilize Gundert to , to , to , to , you know , if we needed some debt , which we don't , but if we need some debt , there could be also the backbone of , of , of , of a special financing , you know , balance sheet financing , not project finance .

Don DeMarco: Okay. That's excellent color there. Thank you. Just finally, as a last question, what are your thoughts on M&A at this stage? I mean, I think over time there's been some discussion about there might be some smaller opportunities in Morocco, whatever stage that might be, maybe even close to production. But is that part of your strategy going forward over the next few years? Or is it more singularly focused on Boumadine? Thank you.

Speaker #6: Okay . Excellent color there . Thank you . And then just finally , the last question . What are your thoughts on M&A at this stage ?

Speaker #6: I mean, I think over time there's been some discussion about there might be some smaller opportunities in Morocco, whatever stage that might be, maybe even close to production.

Benoit La Salle: No, it is, and we do review opportunities all the time, but we're extremely disciplined. We have something fantastic. Two districts, Zgounder and Boumadine. Often people say, "What after Boumadine?" I say, "Well, there'll be Boumadine two, Boumadine three, Boumadine four, because of the size of the district." There's a lot to come, but we do look at things, and if we don't like the price 'cause they're asking too much and we don't think it's justified, we are extremely disciplined. You're not gonna see anything outside of Morocco. We have a lot of work to do. We have a lot of potential in Morocco. We're staying focused in this jurisdiction. We like it. We're comfortable.

Speaker #6: But is that part of your strategy going forward over the next few years, or is it more singularly focused on Boumédiene?

Speaker #6: Thank , you .

Speaker #4: Know , it is , and we do review . We do review opportunities all the time , but we're extremely , extremely disciplined .

Speaker #4: So we have something fantastic to district and Boumédiene often people say , what about what ? After Boumédiene , I said , well , there'll be Boumédiene two Boumédiene three Boumédiene four because of the size of the district .

Speaker #4: So there's a lot to to come . But and we do look at things and if we don't like the price because they're asking too much and we don't think it's justified , we , we are extremely disciplined .

Speaker #4: You're not going to see anything outside of Morocco. We have a lot of work to do. We have a lot of potential in Morocco.

Benoit La Salle: We have our team there, so we are disciplined. Are we looking to buy Morocco? Absolutely. But very small transactions that's not going to affect really, and most of that is not for share. Most of it is also for, you know, small cash payments and payment over time. Yes, we are looking to increase the portfolio. We do wanna have a third and maybe a fourth district. It will. I'm quite comfortable that something's gonna get done in 2026.

Speaker #4: So we're we're we're staying focused to this jurisdiction . We we like it . We're comfortable . We have our team there . And so we are disciplined .

Speaker #4: Are we looking to buy in Morocco ? Absolutely . But very small transactions . That's not going to affect really the most of that is not for sure .

Speaker #4: Most of it is also for , you know , small cash payments and , and payment over time . So yes , we are looking to increase the portfolio .

Don DeMarco: Okay. Thank you very much. Congratulations and good luck with Q1.

Speaker #4: We do want to have a third, and maybe a fourth, district, but it will... I'm quite comfortable that something's going to get done in 2026.

Benoit La Salle: Thank you. Thanks, Don.

Operator: Thank you. Ladies and gentlemen, that concludes our Q&A period. I'd now like to turn the call back over to Benoit for closing remarks.

Speaker #6: Okay. Thank you very much. Congratulations and good luck with Q1.

Benoit La Salle: Thank you, operator. Thanks everybody for being on the call today. Look, Q1 is done. It's done today. What's coming for Aya in the coming few quarters is you will still see some Zgounder and Boumadine drill results. We have a very large program at Zgounder and an extremely large program at Boumadine. You will see drill results on a regular basis. You will see, of course, our Q1 financial results mid-May. I believe 15 May we'll be issuing our Q1 financial results. We didn't talk about this yet, but we are completing our US listing. We were waiting to have our financial statements for the year 2025.

Speaker #4: Thank you. Thanks, Don.

Speaker #2: Thank you, ladies and gentlemen. That concludes our Q&A period. I'd now like to turn the call back over to Benoit for closing remarks.

Speaker #4: Thank you . Operator . Thanks , everybody , for being on the call today . Look , Q1 is done . It's done today .

Speaker #4: So what's coming for Aya ? In , in in in in the coming few quarters is you will still see some in Boumédiene drill results .

Speaker #4: We have a very large program and an extremely large program at Boumédiene. So you will see drill results on a regular basis.

Speaker #4: You will see of course , our Q1 financial results mid May . I believe . May the 15th will be issuing our Q1 financial results .

Benoit La Salle: Those are gonna be filed with the American and with the Nasdaq Stock Exchange, and hopefully in a couple of weeks we'll be able to announce that we will start trading on the Nasdaq in the States. Coming is the Boumadine technical report, as we said, over the summer. As soon as we have that available, we will be putting this out to show you the strength of this tier one asset. As Don asked, for 2026, there's gonna be in-country consolidation of new districts that we like, that we see, with. We believe that there's a silver component to it. Some may have silver, gold; others that we look at are silver, copper.

Speaker #4: Also, we didn't talk about this yet, but we are completing our US listing. We were waiting to have our financial statements for the year 2025.

Speaker #4: Those are going to be filed with the American and with the Nasdaq Stock Exchange . And hopefully in a couple of weeks , we'll be able to announce that we will start trading in on the on the Nasdaq in the states .

Speaker #4: Coming is the boom technical report , as we said , over the summer , as soon as we have that available , we will be putting this out to show you the strength of the of this tier one asset .

Speaker #4: And as Don asked for 2026, there's going to be in-country consolidation of new districts that we like, that we see with.

Benoit La Salle: We definitely are looking to increase our land package with silver exposure. Look, that is the end of this call. I believe we had a very good year, 2025. The ramp up is a ramp up. It ended very well. We had a strong performance. We're getting into 2026 with a very strong view on silver, and we're very happy with our new mining method at Zgounder, where, you know, we go bulk mining because we believe that bulk mining silver is extremely rare, but it's also very appropriate when you have a strong silver price. Thank you all of you for being there. We will see you in 45 days in May for the Q1 financial results.

Speaker #4: And we , we believe that there's a , a silver component to it . Some may have silver , gold , others that we look at are silver , copper , but we definitely are looking to increase our land package with silver exposure so that is the end of this call .

Speaker #4: We , I believe we had a very good year , 2025 . The , the , the , the , the ramp up is a ramp up .

Speaker #4: It ended very , very well . We had a strong performance . We're getting into 2026 with a very strong view on silver and , and we're very happy with our new mining method as Gundam , where we have , you know , we go bulk mining because we believe that bulk mining silver is extremely rare , but it's also very appropriate when you have a strong silver , silver price .

Benoit La Salle: Thank you and have a good day.

Operator: This concludes today's conference call. Thank you for participating and you may now disconnect.

Speaker #4: Thank you , all of you , for being there . We will see you in the in 45 days in May for the Q1 financial results .

Speaker #4: Thank you, and have a good day.

Q4 2025 Aya Gold & Silver Inc Earnings Call

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