Q2 2026 Aya Gold & Silver Inc Earnings Call

August 14, 2026

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

Speaker #2: Good morning, everyone. I will now turn the call over to Elizabeth Hamilly, Aya Gold & Silver Director of Corporate and Financial Communications. Please go ahead.

Speaker #3: Thank you, operator, and welcome to Aya's second quarter 2026 earnings conference call. Joining me today are Benoît Lassalle, President and CEO; Hugo Landry Tolstok, Chief Financial Officer; Elias Elias, Chief Legal and Sustainability Officer; Rafael Beaudoin, Vice President of Operations; and David Lalonde, Vice President of Exploration.

Elisabeth Hamaoui: Thank you, operator, and welcome to Aya's Q2 2026 earnings conference call. Joining me today are 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. David Lalonde, Vice President of Exploration. We will refer to a presentation available via the webcast and on our website. As we will be making forward-looking statements during the call, please refer to the cautionary notes in the presentation, news release, and MD&A, as well as the risk factors in our annual information form. Technical information in the presentation has been reviewed and approved by Raphaël Beaudoin, Aya's Vice President of Operations, and David Lalonde, Aya's Vice President of Exploration, both qualified persons as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects. Following the presentation, we will have a Q&A session.

Speaker #3: We will refer to your presentation available via the webcast and on our website, as we will be making forward-looking statements during the call. Please refer to the cautionary notes in the presentation, news release, and MD&A, as well as the risk factors in our annual information form.

Speaker #3: Technical information in the presentation has been reviewed and approved by Rafael Beaudoin, Aya's Vice President of Operations, and David Lalonde, Aya's Vice President of Exploration, both qualified persons as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Speaker #3: And following the presentation, we will have a Q&A session. I would now like to turn the call over to Benoît Lassalle. Benoît?

Elisabeth Hamaoui: I would now like to turn the call over to Benoit La Salle. Benoit?

Speaker #4: Elisabeth, thank you very much. Welcome, everyone, to our Q2 2026 conference call. It is another very strong quarter for Aya. We have three releases: the production results for the quarter—you will recall that the production for Q2 is 1.7 million ounces of silver equivalent, which is a 61% increase year over year and a 12% increase quarter over quarter.

Benoit La Salle: Elisabeth, thank you very much. Welcome everyone to our Q2 2026 conference call. It is another very strong quarter for Aya. We have pre-released the production results for the quarter. You recall that the production for Q2 is 1.7 million ounces of silver equivalent, which is a 61% increase year over year, and it is a 12% increase quarter over quarter. That translated into very strong financial results. Our revenue for the second quarter of 2026 stands at $97 million, which is an increase of 151% year over year. Our net income for Q2 is at $35 million, which is also a very strong increase from the previous year. Our cash flow is at $48 million US, which is a 522% increase from the previous year, Q2 2025. We had a very strong quarter in revenue, strong quarter in profit, strong quarter in cash flow.

Speaker #4: That translated into very strong financial results. So our revenue for the second quarter of 2026 stands at $97 million, which is an increase of 151% year over year.

Speaker #4: Our net income for the Q2 is at 35 million, which is also a very strong increase from the previous year. And our cash flow is at 48 million US dollars, which is a 522% increase from the previous year Q2 2025.

Speaker #4: So, we have a very strong quarter in revenue, a strong quarter in profit, and a strong quarter in cash flow. As we all know, due to the seasonality in Morocco, Q1 is always a little bit lighter because of the weather.

Benoit La Salle: This, as we all know, due to the seasonality in Morocco, Q1 is always a little bit lighter because of the weather. Q2 comes out of the winter and is a stronger quarter. Q3 is stronger than Q2. Q4 has been historically our strongest quarter. We are very pleased with the first half of the year as we will review some of the numbers. Now for the KPI, the key performance indicator of the mine. The Zgounder mine has performed extremely well. The mining rate continues to improve, and it is up 7% quarter over quarter. I am pleased to say that the mining rate on a daily basis achieved 4,900 tons a day.

Speaker #4: Q2 comes out of the winter and is a stronger quarter. Q3 is stronger than Q2, sorry, and Q4 has been historically our strongest quarter.

Speaker #4: So, we’re very pleased with the first half of the year, as we will review some of the numbers. Now, for the KPIs—the key performance indicators—of the mine, the secondaire mine has performed extremely well.

Speaker #4: The mining rate continues to improve, and it's up 7% quarter over quarter. I'm pleased to say that the mining rate, on a daily basis, achieved 4,900 tonnes a day.

Speaker #4: You recall that the plant was designed for 2,700 tonnes a day, and one of the key elements was to make sure that the mining rate was going to be aligned with the nameplate of the plant, which was supposed to be 2,700.

Benoit La Salle: You recall that the plant was designed for 2,700 tons a day, and one of the key elements was to make sure that the mining rate was going to be aligned with the nameplate of the plant, which was supposed to be 2,700. We know now it is a lot higher, but the mining rate is at 4,900 tons a day. We had record performance achieved from the underground and the open pit, so we are extremely pleased with the outcome. The grade through the plan was 141 grams per ton, which is right where we wanted it to be. Another element which is important is because we are mining more than we are processing, we have an ore stockpile of 374,000 tons. That is extremely important.

Speaker #4: We know now it's a lot higher, but the mining rate is at 4,900 tonnes a day. We had record performance achieved from the underground and the open pit.

Speaker #4: So we're extremely pleased with the outcome. The grade through the plant was 141 grams per tonne, which is right where we wanted it to be.

Speaker #4: And another element, which is important, is because we're mining more than we're processing, we have an ore stockpile of 374,000 tonnes. That is extremely important.

Speaker #4: It's the buffer that is there. If we reduce mining rates for more development, especially underground, where we want to go to the lower levels, we have 374,000 tonnes of ore stockpile.

Benoit La Salle: It is the buffer that is there if we reduce mining rates for more development, especially on the underground where we want to go to the lower levels. We have 374,000 tons of ore stockpile. At the plant, we have record milling rate in Q2, which again reflects our strong execution. Q2 average is 3,900 tons a day compared to the previous quarter at 3,600 tons a day, and to last year, same quarter over quarter was 3,000 tons a day. We know the nameplate was 2,700. We have moved in the ramp-up from 2,700 to 3,000 last year, started the year this year at 3,600 tons a day and are now at 3,900 tons a day and expect this to grow up a little bit again for Q3 and Q4. Strong recoveries as well at the plant and other KPI, above 90% recoveries and above 90% availability.

Speaker #4: At the plant, we have a record milling rate in Q2, which again reflects our strong execution. The Q2 average is 3,900 tonnes a day, compared to the previous quarter at 3,600 tonnes a day, and to last year, same quarter over quarter was 3,000 tonnes a day. As we know, the nameplate was 2,700.

Speaker #4: So we've moved in the ramp-up from 2,700 to 3,000 last year, started the year this year at 3,600 tonnes a day, and are now at 3,900 tonnes a day.

Speaker #4: And we expect this to grow up a little bit again for Q3 and Q4. Strong recoveries as well at the plant and other KPIs, with above 90% recoveries and above 90% availability.

Speaker #4: So all of our KPIs are green. We manage them on a daily basis, on a weekly basis, and on a monthly basis. Currently, everything is in the green.

Benoit La Salle: All of our KPIs are green. We manage them on a daily basis, on a weekly basis, on a monthly basis. Currently, everything is in the green. We have also brought in a temporary crushing contractor to improve the throughput, and we are adding a new crushing section to the plant, and that should be ready by the beginning of 2027. Moving to the next slide, which is the selling price throughout the quarter. You recall that Q1 was exceptional as silver reached $120 per ounce in January. Of course, since then, we have seen a strong correction. For Zgounder, the average selling price for Q2 2026 is $68.29. It is $15 less than Q1, but it is very close to the average of the quarter. You understand that the average of the quarter is very hard to meet in a decreasing price environment because you do not sell every day.

Speaker #4: We've also brought in a temporary crushing contractor to improve the throughput, and we're adding a new crushing section to the plant. That should be ready by the beginning of 2027.

Speaker #4: Moving to the next slide, which shows the selling price throughout the quarter. You’ll recall that Q1 was exceptional, as silver reached $120 per ounce in January.

Benoit La Salle: Moving to the next slide, which is the selling price throughout the quarter. You recall that Q1 was exceptional as silver reached $120 per ounce in January. Of course, since then, we have seen a strong correction. For Zgounder, the average selling price for Q2 2026 is $68.29. It is $15 less than Q1, but it is very close to the average of the quarter. You understand that the average of the quarter is very hard to meet in a decreasing price environment because you do not sell every day.

Speaker #4: Of course, since then, we've seen a strong correction. So, for secondaire, the average selling price for Q2 2026 is $68.29.

Speaker #4: So, it's $15 less than Q1, but it's very close to the average of the quarter. You understand that the average of the quarter is very hard to meet in a decreasing price environment, because you don't sell every day.

Speaker #4: So, in a decreasing price environment, you're a little bit below the average. The average for the quarter is a little bit above $70, and we're at $68.29.

Benoit La Salle: In a decreasing price environment, you are a little bit below the average. The average for the quarter is a little bit above 70, and we are at 68.29. We were above the average in Q1 because it was increasing at the time, so that was a little bit easier to be above the average. But it is still an extremely good selling price, knowing that Q4 last year, we were all very happy with 59.23. Again, a strong selling price in Q2 for Zgounder. Actually, the selling price at Boumadine, for some just reason, was a little bit better at $70 an ounce, but we have a payability there of 50%, so the selling price was net at 35, because you remember, Boumadine, we are selling tailings, which has a lot of difficult elements.

Speaker #4: We were above the average in Q1 because it was increasing at the time, so it was a little bit easier to be above the average.

Speaker #4: But it's still an extremely good selling price, knowing that in Q4 last year, we were all very happy with $59.23. So, again, a strong selling price in Q2 for secondaire.

Speaker #4: And actually, the selling price at Boumadine, for some reason, was a little bit better at $70 an ounce, but we have a payability there of 50%.

Speaker #4: So the selling price was net at 35, because you remember Boumadine was selling tailings, which have a lot of difficult elements. So when you look at the cash cost, we were expecting cash cost to come down at Secondaire because we are now at a steady rate.

Benoit La Salle: When you look at the cash cost, we were expecting cash cost to come down at Zgounder because we are now on a steady rate, increasing actually the throughput, but on a steady rate. Yes, we are very pleased that for Q2 2026, the cash cost at Zgounder is at $17.69. That is something, coming from $18.64 in the previous quarter and $20 in Q4 of 2025. Again, these are small details, better efficiency, and we are working on cash costs. But at $17.69, knowing that this is a brand-new plant, the development cost, the additional cost, sustaining cost are extremely low at Zgounder. It is probably $3 an ounce maximum. It is not even that in Q1 and in Q2. You are looking at a cash cost of $17.69, which is a very good position to be in.

Speaker #4: Increasing, actually, the throughput, but at a steady rate. And yes, we're very pleased that for Q2 2026, the cash cost at secondaire is at $17.69.

Speaker #4: That's something coming from 1,864 in the previous quarter, and $20 in Q4 of 2025. So again, these are small details. Better efficiency, and we are working on cash cost, but at 1,769—knowing that this is a brand new plant—the development cost, the additional cost, sustaining costs are extremely low at Secondaire.

Speaker #4: It's probably $3 an ounce maximum. It's not even that in Q1 and in Q2. So you're looking at a cash cost of $1,769, which is a very, very good position to be in.

Speaker #4: To the next slide at Boumadine. Just quickly, Boumadine is a bit of an add-on to Secondaire. We're processing the old tailings—it's a reclamation operation.

Benoit La Salle: To the next slide at Boumadine, just quickly, Boumadine is a bit of an add-on to Zgounder. We are processing the old tailings. It is a reclamation operation. It had no CapEx, very low cash cost at $10.58 an ounce. It just generates cash flow. We are a little bit lower on the production front, and we knew Q1 again. When you have a lot of rain in tailings, of course, it is a bit more complicated because it is slushy. Q1 and Q2 were a little bit lower. We knew Q3, Q4 are going to be a lot higher. But we still managed to produce 187,000 ounces of silver equivalent, and we made a margin of $20. As I said, we sold it for $35 an ounce. Our cash cost at Boumadine is $10.58. We made $20 an ounce, so 20 times 185,000 ounces of production.

Speaker #4: It had no capex. Very low cash cost at $10.58 an ounce. It just generates cash flow. We're a little bit lower on the production front, and we knew in Q1, again, that when you have a lot of rain in tailings, of course, it's a bit more complicated because it's slushy.

Speaker #4: So, Q1 and Q2 were a little bit lower. We knew Q3 and Q4 were going to be a lot higher. But we still managed to produce 187,000 ounces of silver equivalent.

Speaker #4: And we made a margin of $20. As I said, we sold it for $35 an ounce. Our cash cost at Boumadine is $1,058.

Speaker #4: We made $20 an ounce. So $20 times 185,000 ounces of production is still $3.6 million of free cash flow coming to Boumadine to pay for the operation and for the drilling.

Benoit La Salle: It is still 3.6 million of free cash flow coming to Boumadine to pay for the operation and for the drilling. So it is a very nice add-on to Zgounder, which we have in operation and accelerating in Q3 and Q4. Looking at the next slide is the cash position at quarter end. We started the year on 1 January. We had $136 million in the bank of free cash. We always have $16 million of restricted cash, which is part of the EBRD loan package. But we started with $136 million, and in the first six months of the year, we generated $119 million of operating cash flow. So $136 million, we add to that $119 million of operating cash flow. We have $38 million of exploration and sustaining CapEx, $38 million. We paid down $33 million of EBRD in the first six months.

Speaker #4: So it's a very nice add-on to Secondaire, which we have in operation and accelerating in Q3 and Q4. Looking at the next slide is the cash position at quarter-end.

Speaker #4: We started the year on January 1st with $136 million in the bank of free cash. We always have $16 million of restricted cash, which is part of the EBRD loan package.

Speaker #4: But we started with 136, and in the first six months of the year, we generated $119 million of operating cash flow. So, 136—if we add to that $119 million of operating cash flow...

Speaker #4: We have $38 million of expiration and sustaining capex, $38 million. We've paid down $33 million of EBRD in the first six months—we had one payment. And we also paid down a $15 million short-term debt that we took last year on Boumadine, just because it was available and we took it on.

Benoit La Salle: We had one payment, and we also paid down a $15 million short-term debt that we took last year on Boumadine. It was available, and we took it on. That was paid back. So we paid $33 million back. We have invested $38 million in exploration and sustaining CapEx, and we finished the quarter with $183 million. Of course, you know we report in US dollars. So $183 million, and we have $16 million in restricted cash, which technically gets applied to the EBRD loan at the end if we want that. So we had a strong cash flow H1. We have the limited CapEx as we know. We have a large exploration program, but that is part of our value creation strategy.

Speaker #4: That was paid back. So, we paid $33 million back. We've invested $38 million in exploration and sustaining capex. And we finished the quarter with $183 million.

Speaker #4: Of course, we're reporting US dollars – so, $183 million, and we have $16 million in restricted cash, which technically gets applied to the EBRD loan at the end, if we want that.

Speaker #4: So, we had a strong cash flow in H1. We have limited capex, as we know. We have a large exploration program, but that's part of our value creation strategy.

Speaker #4: We made an early repayment of the $15 million to EBRD, and we're left with $183 million that is ready to go to the development of Boumadine, which will start towards the end of this year.

Benoit La Salle: We did an early repayment of the $15 million to EBRD, and we are left with $183 million that is ready to go to the development of Boumadine, which will start towards the end of this year. So very strong quarter. On the next slide, just a summary of the first six months. If you look at the operational performance, as a company, we produced 3.2 million ounces of silver equivalent, at a consolidated cash cost for silver equivalent of $17.59. Zgounder did 2.8 million and Boumadine did half a million. And we will talk about the guidance, but we are already half year and half the way to the guidance. So we are totally aligned with the guidance that we presented to you at the beginning of the year. We are totally aligned with the guidance. Zgounder has a cash cost for the first six months of $18.18.

Speaker #4: So, a very, very strong quarter. On the next slide, just a summary of the first six months. If you look at the operational performance, as a company, we produced 3.2 million ounces of silver equivalent.

Speaker #4: At a consolidated cash cost for silver equivalent of $1,759, Zgounder did 2.8 million, and Boumadine did half a million. So, and we will talk about the guidance, but we're already halfway here, and halfway to the guidance.

Speaker #4: So, we are totally aligned with the guidance that we presented to you at the beginning of the year. We're totally aligned with the guidance.

Speaker #4: Secondaire has a cash cost for the first six months of 18 dollars and 18 cents. Boumadine has a cash cost of 18 sorry, 10 dollars and 85 cents per ounce.

Benoit La Salle: Boumadine has a cash cost of $10.85 per ounce. So we are fully aligned and we will review the guidance in a minute, but we are half the way into the year and we are half the way into our guidance. The revenue for six months stands at USD 205 million. The net income is USD 84 million. The basic EPS is at $0.58, and the operating cash flow for six months stands at USD 119 million. The guidance, which you have on the next slide, was presented to you at the beginning of the year. Our production guidance is 5.2 to 5.8 at Zgounder, and at mid-year, Zgounder is at 2.8. So you see that we are tracking right on our Zgounder production guidance. Boumadine is at one million.

Speaker #4: So we're fully aligned, and we'll review the guidance in a minute, but we're halfway into the year, and we're halfway through our guidance.

Speaker #4: The revenue for six months stands at $205 million USD. The net income is $84 million USD. The basic EPS is 58 cents.

Speaker #4: And the operating cash flow for six months stands at $119 million U.S. The guidance, which you have on the next slide, was presented to you at the beginning of the year.

Speaker #4: Our production guidance is 5.2 to 5.8 at Secondaire. And at mid-year, Secondaire is at 2.8. So you see that we're tracking right on our Secondaire production guidance.

Speaker #4: Boumadine is at one million. We're at half a million right now—400,000. But we know that Q3 and Q4 for Boumadine are going to be a lot easier: no rain, and much, much, much easier, warm weather.

Benoit La Salle: We are at half a million right now, 400,000, but we know that Q3 and Q4 for Boumadine are going to be a lot easier. No rain and much easier, warm weather. Boumadine currently is between 40 and 50 degrees some days, so it is very dry, so easy to work on tailings. The Zgounder average cash cost, we had guided at $21.50. We knew that Q1, Q2 would be a bit lower because of the strip in the pit, and the strip has a direct effect on our cash cost, so we are not changing our guidance there. On Boumadine, we were at $10.10, we are at $10.40. We are very close. The sustaining and growth CapEx is at $36 million. It is about half and half. Half is sustaining, half is growth. New crusher, new installation, an ore sorter.

Speaker #4: Boumadine currently is between 40 and 50 degrees some days, so it's very dry, so it's easy to work on tailings. The secondaire average cash cost, we had guided at $21.50.

Speaker #4: We knew that Q1 and Q2 would be a bit lower because of the strip in the pit. And the strip has a direct effect on our cash cost.

Speaker #4: So we're not changing our guidance there. On Boumadine, we were at 10 dollars and 10 cents. We're at 10 dollars and 40 cents. So we're very, very close.

Speaker #4: The sustaining and growth capex is at $36 million. It's about half and half—half is sustaining, half is growth. New crusher, new installation, an ore sorter.

Benoit La Salle: There are different things that we are putting in, which are really growth CapEx, and sustaining is the development of the underground. Exploration expenditure is at $60 million. That has not changed. Maybe a little bit more due to the new assets that we have acquired, the new permits, which I will review in 1 minute. The guidance is confirmed. We are well into it at the mid-year point, and we continue to be very positive about what is coming in Q3 and in Q4. Going forward on the strategy and the operational priorities. At Boumadine, which is the main now leg of value creation for Aya, all the independent consultant firms have been engaged on all key feasibility work stream. Metallurgy, energy, water supply, logistics, TSF location, feasibility study, all of that is now ongoing and will be ready next year, feasibility study.

Speaker #4: Different things that we're putting in, which are really growth capex. And sustaining is the development of the underground. And exploration expenditure is at $60 million.

Speaker #4: That hasn't changed—maybe a little bit more due to the new assets that we've acquired and the new permits, which I'll review in one minute.

Speaker #4: So the guidance is confirmed. We're well into it at the mid-year point, and we continue to be very positive about what's coming in Q3 and in Q4.

Speaker #4: So, going forward on the strategy and the operational priorities at Boumadine, which is now the main leg of value creation for Aya, all the independent consultant firms have been engaged on all key feasibility workstreams.

Speaker #4: So, metallurgy, energy, water supply, logistics, TSF location, feasibility study—all of that is now ongoing, and will be ready next year. Feasibility study. At the same time, the updated PEA is being completed as we speak.

Benoit La Salle: At the same time, the updated PEA is being completed as we speak, and will be ready for publication early in September as we all come back from Labor Day weekend. We are into it right now. We are into the mine plan. We are into the financial model for the PEA review. At the same time, feasibility is being completed and we have already started the RFP process on mining, on construction, on electricity. All of that is ongoing. The investment decision has been made. The project is extremely profitable. We will also confirm CapEx in the revised PEA, which will be available in 1 month. Boumadine is a strategic project for us, and we are working on this thoroughly, and to come with the revised PEA in September. At Zgounder, you saw its optimization of the Zgounder mine. It is working well.

Speaker #4: And we'll be ready for publication early in September, as we all come back from Labor Day weekend. So we're into it right now. We are into the mine plan.

Speaker #4: We are into the financial model for the PEA review. At the same time, feasibility is being completed, and we've already started the RFP process on mining, on construction, and on electricity.

Speaker #4: So all of that is ongoing. The investment decision has been made. The project is extremely profitable. We will also confirm capex in the revised PEA, which will be available in one month.

Speaker #4: And so Boumadine is a strategic project for us. We're working on this thoroughly and will come with the revised PEA in September. At Zgounder, you saw it’s optimization of the Zgounder mine.

Speaker #4: It's working well. The open pit, the underground, the grade control—all of that is going extremely well. We've put in additional ventilation. We've put in additional safety equipment.

Benoit La Salle: The open pit, the underground, the grade control, all of that is going extremely well. We have put in additional ventilation. We have put in additional safety equipment. We had to complete the first phase of the TSF because we were putting through more material in the tailings due to the fact that we went from 2,700 Tonne per day planned in the feasibility study to today, 3,900 tonne a day, even 4,000 tonne a day. Of course, the direct effect of that is the TSF gets filled much sooner than expected. We have completed the first phase of the new TSF, which is the same one, but just with bigger capacity. That has been done. We actually did it on time and below budget. The new crusher expansion is being installed. It is going to get commissioned this fall, and it will be ready for early 2027.

Speaker #4: We had to complete the first phase of the TSF—TSF. Because we were putting through more material in the tailings, due to the fact that we went from 2,700 tons per day planned in the feasibility study, to today, 3,900 tons a day— even 4,000 tons a day.

Speaker #4: So, of course, the direct effect of that is the TSF gets filled much sooner than expected. We've completed the first phase of a new TSF, which is the same one but just with bigger capacity.

Speaker #4: That's been done. We actually did it on time and below budget. The new crusher expansion is being installed. It's going to be commissioned this fall, and it will be ready for early 2027.

Speaker #4: On the expiration front, you know, and that's slide 12. On the expiration front, you know, we do spend 60 million US dollars a year.

Benoit La Salle: On the exploration front, that is slide 12. On the exploration front, we do spend $60 million a year. We are drilling 200,000 meters at Boumadine. We are drilling 30,000 meters at Zgounder. As of now, the drilling at Boumadine is at 93,000 meters. We know that the first H1 of the year, again, winter, Ramadan, is a little bit slower. We have a third contractor coming in with three machines or three drills. We are going to be up to 15, 16 drills turning at Boumadine, and we expect to complete the 200,000-meter program as we have, and if everything goes well, maybe a little bit more. The big highlight of the quarter was the new zone that we discovered parallel to the main zone, where we had an intercept of 51 meters at 890 gram per tonne silver equivalent.

Speaker #4: We are drilling 200,000 meters at Boumadine. We're drilling 30,000 meters at Secondaire. As of now, the drilling at Boumadine is at 93,000 meters. We know that the first half of the year—again, winter, Ramadan—is a little bit slower.

Speaker #4: We have a third contractor coming in with three machines, or three drills. We are going to be up to 15, 16 drills turning at Boumadine.

Speaker #4: And we expect to complete the 200,000-meter program as we have. And if everything goes well, maybe a little bit more. The big highlight of the quarter was the new zone that we discovered.

Speaker #4: Parallel to the main zone, where we had an intercept of 51 meters at 890 grams per ton, silver equivalent. That is clearly not currently in the resource model.

Benoit La Salle: That is clearly not currently in the resource model. There is additional drilling that will be done this year on this, but this is a significant discovery parallel to the main zone. We have also continued to drill the main zone and the Tizi Zone, and we have increased the length of the structure now to 5.4 kilometer. So that keeps increasing. We have many other targets, where we are doing mapping, we are doing prospecting to support future drilling programs on the Boumadine large project, which is over 1,000 square kilometers of ground under the exploration license and the reconnaissance license of 600 square kilometers. So we have a very large land package at Boumadine, and we keep increasing the land package. At Zgounder, there is 30,000 meters. As of now, we have done 10,000 meters. You saw some results, in June. There will be more results coming out in September.

Speaker #4: There's additional drilling that will be done this year on this, but this is a significant discovery, parallel to the main zone. We've also continued to drill the main zone and the TZ zone, and we've increased the length of the structure now to 5.4 kilometers.

Speaker #4: So that keeps increasing. And we have many other targets where we're doing mapping and prospecting to support future drilling programs on the Boumadine large project, which is over 1,000 square kilometers of ground under the exploration license.

Benoit La Salle: We have many other targets, where we are doing mapping, we are doing prospecting to support future drilling programs on the Boumadine large project, which is over 1,000 square kilometers of ground under the exploration license and the reconnaissance license of 600 square kilometers. So we have a very large land package at Boumadine, and we keep increasing the land package. At Zgounder, there is 30,000 meters. As of now, we have done 10,000 meters. You saw some results, in June. There will be more results coming out in September.

Speaker #4: And the reconnaissance license of 600 square kilometers. So, we have a very large land package at Boumadine, and we keep increasing the land package.

Speaker #4: At Secondaire, there's 30,000 meters. As of now, we've done 10,000 meters. You saw some results. In June, there will be more results coming out. In September, Secondaire is steady state.

Benoit La Salle: Zgounder is steady state. Drilling is giving us always very good results. We continue to see the high-grade mineralization. The structure is much wider than originally anticipated. So originally, when we came in, we thought it was a 20-meter wide structure. It is not, it is much wider. We are now pushing to the west to see under the fault. We are going to be drilling there in the next few weeks, few months, to see if it is continuing under the west fault. We are also drilling to the northeast. So it is a very strong project. Geology is getting to be better understood. We are using AI extensively to understand the regional play. There will be some regional drilling ongoing this fall. We are going to be looking, hopefully, for some very positive results. To close, I would just like to talk about the acquisition that we have announced last week.

Speaker #4: Drilling is giving us always very good results. We continue to see the high-grade mineralization. The structure is much wider than originally anticipated. So, when we came in, we thought it was a 20-meter-wide structure.

Speaker #4: It isn't. It's much wider. We're now pushing to the west to see under the fault. We are going to be drilling there in the next few weeks or few months.

Speaker #4: To see if it's continuing under the West Fault. We're also drilling to the northeast, so it's a very, very strong project. The geology is getting to be better understood.

Benoit La Salle: Geology is getting to be better understood. We are using AI extensively to understand the regional play. There will be some regional drilling ongoing this fall. We are going to be looking, hopefully, for some very positive results. To close, I would just like to talk about the acquisition that we have announced last week.

Speaker #4: We are using AI extensively to understand the regional play. There will be some regional drilling ongoing this fall, and we're going to be looking, hopefully, for some very positive results.

Speaker #4: And to close, I'd just like to talk about the acquisition that we've announced. Last week, we announced the acquisition of 259 square kilometers. We've always been saying that in Morocco, there's tremendous potential.

Benoit La Salle: We have announced the acquisition of 259 square kilometers. We have already always been saying that in Morocco, there is tremendous potential. Some families have ground, some families have many projects, and they have done very little exploration. They have walked the ground a little bit, done very little exploration. Mainly have done a lot of the infrastructure work, but did not have the expertise to do the exploration work. So we were able to acquire from two families a 259-kilometer portfolio, a district called Zagora, which has the potential for copper, lead, zinc, and silver. Agadir-Melloul, which is copper, silver, and gold, and some probably rare earth as well. Goulmim, which is lead, copper, gold, and silver. Those are very good projects. You should know that we look at projects every week. People come to us, show us ground. We are very selective.

Speaker #4: Some families have ground, some families have many projects, and they have done very little exploration. They've walked the ground a little bit and done very little exploration.

Speaker #4: Mainly, we have done a lot of the infrastructure work, but did not have the expertise to do the exploration work. So, we were able to acquire from two families a 259-kilometer portfolio.

Speaker #4: A district called Zagora, which has the potential for copper, lead, zinc, and silver. Agadir Melul, which is copper, silver, and gold. And some probably rare earths as well.

Speaker #4: And Gulmin, which is lead, copper, gold, and silver—those are very, very good projects. You should know that we look at projects every week.

Speaker #4: People come to us and show us ground. We're very selective—very, very selective—because we already have over 1,000 square kilometers of ground between Secondaire and Boumadine.

Benoit La Salle: Very selective, because we already have over 1,000 square kilometers of ground between Zgounder and Boumadine. This is something when we showed that to the team, they said, "No, this is very interesting. We should move and acquire this." We have acquired this for 10 million dirhams, so USD 1 million. The budget is about USD 800,000 this year, to do what we always do, which is satellite imagery, spectral, stream sediment. We will see if we do some geophysics a bit later. This is low-cost acquisition, low-cost exploration. We have a team. There was already a team, and some of our team is available to do this. We are not taking anybody away from Zgounder or anybody away from Boumadine, because we will have in total 18 to 20 drills turning. We will be producing 240,000 samples.

Speaker #4: But this is something, when we showed that to the team, they said, no, this is very, very interesting, and we should move and acquire this.

Speaker #4: We have acquired this for 10 million dirhams, so about $1 million US dollars. The budget is about $800,000 this year to do what we always do, which is satellite imagery, spectral, and stream sediment.

Speaker #4: We'll see if we do some geophysics a bit later. But this is low-cost acquisition—low-cost exploration. We have a team; there was already a team, and we have some of our team available to do this.

Speaker #4: We're not taking anybody away from Secondaire or anybody away from Boumadine, because we'll have in total 18 to 20 drills turning. We will be producing 240,000 samples.

Speaker #4: So it's something that we're not taking away from these two assets to go and do the exploration on this new ground. This will have its own team.

Benoit La Salle: It is something that we are not taking away from these two assets to go and do the exploration on this new ground. This will have its own team. It reinforces our first-mover advantage in Morocco. We are, with Managem and of course, ONHYM, the largest player in the country. These are all district scale exploration footprint. They are all put together, very large packages of permits. For us, it just creates a pipeline of opportunities for the future. You will see us acquire additional ground, very similar, some close to Zgounder, others close to Boumadine. We are always looking at assets because we really believe that Morocco is underexplored. We know it is underexplored. We believe that there is more Zgounder, there is more Boumadine, there is more Imiter, which is owned by Managem, which is a world-class silver asset. There is more of that.

Speaker #4: It reinforces our first-mover advantage in Morocco. We are with Manajem and, of course, Onim, the largest player in the country. These are all district-scale exploration footprints.

Speaker #4: They're all put together—very large packages of permits. And for us, it just creates a pipeline of opportunities for the future. You will see us acquire additional ground.

Speaker #4: Very similar. Some are close to Secondaire, others are close to Boumadine. But we are always looking at assets, because we really believe that Morocco is underexplored.

Speaker #4: We know it is underexplored. We believe that there's more at Zgounder, there's more at Boumadine, and there's more at Imiter, which is owned by Managem. Imiter is a world-class silver asset.

Speaker #4: There's more of that. There are copper deposits, and there are more silver deposits. We have our first-mover advantage, and you will see us continue making small acquisitions—very small.

Benoit La Salle: There are copper deposits, there are more silver deposits, and we have our first-mover advantage, and you will see us continue making small acquisition like this, very small, but some very good ground that we liked. This completes the formal part of the presentation. I will turn it over to you, operator, for the Q&A period.

Speaker #4: But some very, very good ground that we like. So this completes the formal part of the presentation. I will turn it over to you, operator, for the Q&A period.

Speaker #1: Thank you. If you'd like to ask a question at this time, please press star 1-1 on your telephone and wait for your name to be announced.

Operator: Thank you. If you would like to ask a question at this time, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Bryce Adams with Desjardins.

Speaker #1: To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Bryce Adams.

Speaker #3: Hey, Ben Martin. Good morning. Thanks for taking my questions. I just wanted to ask a couple of questions on the secondary outlook. In the disclosure, it refers to increased strip ratios in the back half of this year.

Bryce Adams: Hey, Ben. Bryce Adams. Good morning. Thanks for taking my questions. I just wanted to ask a couple of questions on the Zgounder outlook. In the disclosure, it talks to increased strip ratios in the back half of this year. The question is: What do you think those strip ratios increase to for Q3 and Q4? The same question for next year as well, for 2027. Is that an accelerated stripping campaign, next year? Then just similar on some of the outlook, you talked to slower mining rates in the underground. What are the expectations there? Thanks.

Speaker #3: So the question is, what do you think the strip ratios increase to for Q3 and Q4? And then the same question for Q4 next year, as well as for 2027.

Speaker #3: Is that an accelerated stripping campaign next year? And then, just similarly, on some of the outlook, you talked about slower mining rates in the underground.

Speaker #3: What are the expectations there? Thanks.

Speaker #2: Yeah. Thank you, Bryce. Ralph is with us this morning, as you know. He's our VP of Operations, so I will let him answer this. The strip ratio for Q3 and Q4, the life-of-mine strip ratio, and why we believe there will be a slower throughput in the underground over the next few quarters.

Benoit La Salle: Yeah, thank you, Bryce. Raphaël is with us this morning. As you know, he's our VP Operations, so I will let him answer this. The strip ratio for Q3 and Q4, the life of mine strip ratio, and why we believe it'll be a slower throughput in the underground over the next few quarters. Raphaël?

Speaker #2: Ralph?

Speaker #4: Hi, Bryce. Yes, happy to comment on that. Let's start with the open pit. Year-to-date in the open pit, we're around a strip of 10.

Raphaël Beaudoin: Hi, Bryce. Yes, happy to comment on that. Let's start with the open pit. On the year to date, in the open pit, we're around a strip of 10, and we're quite aligned with our National Instrument 43-101 in the long term. We expect the strip to increase to around 16 in the next six months, and we expect to end the year closer to 13, which is quite aligned with our long-term expectation for the open pit. As for the pushback, we have several pushback plans through the life of mine for the open pit, and we have one coming towards end of year, that is in our mine plan this year. We might push it earlier next year. We're taking our time to assess what is the best path forward. The open pit is quite under control to the point that we have options.

Speaker #4: And we're quite aligned with our 43-101 on the long term. We expect the strip to increase to around 16 in the next six months.

Speaker #4: And we expect to land the year closer to 13, which is quite aligned with our long-term expectation for the open pit. As for the pushback, we have several pushbacks planned through the life of mine for the open pit.

Speaker #4: And we have one coming towards the end of the year. That is in our mind plan this year. We might push it to earlier next year. We're taking our time to assess what's the best path forward.

Speaker #4: So the open pit is quite under control to the point that we have options. We can do it this year, or we can do it a bit later.

Raphaël Beaudoin: We can do it this year, we can do it a bit later, the start of next year. That is yet to be finalized, depending on how things continue to progress. The open pit on long term, we expect a 13 strip ratio. Some months closer to eight, like we had in the beginning of the year, some months closer to 16, depending on where we at and what is the best way to mine it as we go on the detailed planning on our rolling three-month plan. As for the underground, I want to nuance that, is we are focusing on new zones, and we want to really focus on continuing to develop the infrastructures for the lower levels. We're on plan. We are closer to the 1,750 level as we speak, and we need to go all the way down to 1,625. We have a healthy stockpile.

Speaker #4: At the start of next year, that is yet to be finalized depending on how things continue to progress. For the open pit, long term, we expect a 13 strip ratio.

Speaker #4: Some months are closer to 8, like we had at the beginning of the year. Some months are closer to 16, depending on where we're at and what's the best way to mine it as we go on with the detailed planning in our rolling three-month plan.

Speaker #4: As for the underground, I want to add some nuance. I want to clarify that we are focusing on new zones, and we want to really focus on continuing to develop the infrastructure as part of the lower levels.

Speaker #4: We're on plan. We are closer to the 1,750 level as we speak, and we need to go all the way down to 1,625. We have a healthy stockpile.

Speaker #4: We're mobilizing extra crushing capacity that, for the meantime, is being compensated by a crushing contractor. So we want to be comfortable on the ground.

Raphaël Beaudoin: We are mobilizing extra crushing capacity that for the meantime, it is compensated by a crushing contractor. We want to be comfortable underground. We are right now comfortable. We worked a lot in the last two years to get to that point, and we want to keep it. We want to keep it like that. Right now, underground, we have about 1,200 to 1,500 ton per day rate, which is fine. The reason why we would prefer to slow it down is because we have that option in hand, and we want to really focus on developing the sublevels to open more stopes.

Speaker #4: We are right now comfortable. We worked a lot in the last two years to get to that point, and we want to keep it.

Speaker #4: We want to keep it like that. So right now, on the ground, we have about 15—like 1,200 to 1,500 ton-per-day rate.

Speaker #4: Which is fine. The reason why we prefer to slow it down is because we have that option in hand, and we want to really focus on developing the sub-levels to open most stopes and to be in this comfortable position.

Raphaël Beaudoin: To be in this comfortable position, as the open pit continues to sustain essentially a solid portion of the mill throughput, with the extra crushing coming on hand, we have an ore sorter also coming that we want to commission later this year. On the underground, it is not so much that we will reduce the throughput. A little bit, yes. It is really sustain and even, I would say, accelerate the infrastructure development for the sublevels.

Speaker #4: So, as the open pit continues to sustain essentially a solid portion of the mill throughput, with the extra crushing coming on hand, we have an ore sorter also coming that we want to commission later this year.

Speaker #4: So, on the underground, there's not so much that we will reduce the throughput—a little bit, yes—but it's really sustained and even, I would say, accelerating the infrastructure development for the sub-levels.

Speaker #3: Okay, thanks for all of that, Rafa. I understand that you're still putting together the 2027 open-pit mine plan. At the minute, my model has a strip ratio of 20:1 for next year.

Bryce Adams: Okay. Thanks for all of that, Rafa. I understand that you are still putting together the 2027 open pit mine plan. At the minute, my model has a strip ratio of 20:1 for next year. Do you think that that is too conservative?

Speaker #3: Do you think that is too conservative?

Speaker #4: Yeah. We're not planning for a 20-to-1 mill strip ratio for next year.

Raphaël Beaudoin: We are not planning for a 20:1 mill strip ratio for next year.

Speaker #3: All right. Thanks. Yeah, we can adjust for that. That should help our numbers. And then, last question from me—it's just on silver sales.

Bryce Adams: All right. Thanks. Yeah, we can adjust for that. That should help our numbers. My last question is just on silver sales. Sales lagged production a little bit in Q2. Benoit, is that a catch-up for Q3? Has it already been caught up in July? Do you think that that's a tailwind for the next set of financial results?

Speaker #3: Sales lagged production a little bit in Q2. So, Ben, why is that a catch-up for Q3? Has it already been caught up in July?

Speaker #3: And do you think that's a tailwind for the next set of financial results?

Speaker #2: Yeah, thanks, Bryce, for this question, because I think that was something that the market was kind of puzzled with—the selling price. I'll let you go run Treasury and Sales.

Benoit La Salle: Yeah. Thanks, Bryce, for this question, because I think that was something that the market was kind of puzzled with, is the selling price. I'll let Hugo, who runs treasury and sales with the team, answer. He's with us. I think the market needs to have a clear understanding of why our selling price, for some of you, was a bit lower. Maybe Hugo, you want to go at it?

Speaker #2: With the team, the answer is with us. Because I think the market needs to have a clear understanding of why our selling price, for some of you, was a bit lower. And maybe, Gou, you want to go at it.

Speaker #4: Yeah, sure. So the average sale price of silver, if you will, the LBMA average sale price for the quarter, was $73. We were a bit over $68.

Ugo Landry-Tolszczuk: Yeah. Sure. The average sale price of silver, if you will, the LBMA average sale price for the quarter was $73. We were a bit over $68 at Zgounder. We also have to look at the timing. If you look at June specifically, price fell quite precipitously from over $70 to below $60 at the end of the quarter. When we produce, we have to produce and then sell. For sure, a third of our quarterly production was sold quite low compared to the average of the quarter. That impacted the revenue slightly. We're 6.4% under on average of the LBMA average price. On volumes, there's a few things. At Zgounder, we had a little bit of inventory, and we can see it in inventory.

Speaker #4: At Zgounder, we also have to look at the timing. If you look at June specifically, price fell quite precipitously from over $70 to below $60 at the end of the quarter.

Speaker #4: And when we produce, we have to produce and then sell. So, for sure, a third of our quarterly production was sold quite low compared to the average of the quarter.

Speaker #4: So that impacted—that impacted the revenue, slightly. We're 6.4% under on average of the LBMA average price. And then on volumes, there are a few things.

Speaker #4: Zgunder, we had a little bit of inventory, and we can see it. And we can see it in inventory. And on Bumazin, we sold less than if you take our about a million ounces and you divide that by four quarters.

Ugo Landry-Tolszczuk: On Boumadine, we sold less than if you take our about 1 million ounces and you divide that by four quarters. We sold less in Q2, but that's definitely going to be caught up here in Q3 and Q4. Things are going very well. The remaining of the inventory that we had at Zgounder has been sold in July. I think Q3 is looking good, especially at Boumadine. We'll see a significant catch-up from the H1. We were learning. It's our first time doing this reclaim, but I think now we've hit the wind at our sails, so I think that'll be caught up here in Q3 and Q4.

Speaker #4: We sold less in Q2, but that's definitely going to be caught up here in Q3 and Q4. Things are going very, very well. And then the remainder of the inventory that we had at Zgounder has been sold in July.

Speaker #4: And so, yeah, I think Q3 is looking good, especially at Boumadine. We'll see a significant catch-up from the first half, just, yeah. We were learning—it's our first time doing this reclaim.

Speaker #4: But I think now we've got the wind at our sails. So I think that'll be caught up here in Q3 and Q4.

Speaker #3: Okay, perfect. Thank you very much. Sorry.

Bryce Adams: Okay, perfect.

Benoit La Salle: And-

Bryce Adams: Thank you very much. Sorry?

Speaker #2: Yeah. Thanks, Bryce. And maybe I can add, because what you just said is, we can see the whole sector did not like the price in June.

Benoit La Salle: Yeah. Thanks, Bryce. Maybe I can add, because to what Hugo just said, we can see the whole sector did not like the price in June. So there was a lot of waiting. Because we looked at other companies the way they have done it, and we all kind of got caught with that very quick deceleration or reduction of price. Hence, the average selling at $68 at Zgounder and $70 at Boumadine is a little bit below the average of the quarter. But in a decreasing market, it is very difficult to be on the average because you keep coming down as you sell, and it is much easier to be up the average on an increasing market. But again, as I mentioned in my little presentation, we are very happy with $68 and $70. We preferred $82 in Q1, but-

Speaker #2: So there was a lot of waiting. And because we looked at other companies, the way they've done it, we all kind of got caught with that very quick deceleration or reduction of price.

Speaker #2: And hence, the average selling at 68 at Zgounder and 70 at Boumadine is a little bit below the average of the quarter. But in a decreasing market, it's very difficult to be on the average.

Speaker #2: Because you keep coming down as you sell, and it's much easier to be up on the average in an increasing market. But again, as I mentioned in my little presentation, we're very happy with 68 and 70.

Speaker #2: We preferred 82 in Q1. But with a cash cost at 18 or 16, and AISC plus 3 or 4, I mean, we're still very happy.

Bryce Adams: Yeah

Benoit La Salle: with the cash cost at the $18,000 or $16,000 and AISC plus 3 or 4, I mean, we are still very happy. Look, in 6 months, we generated $119 million of operating cash flow. So we like the silver price. We like where it is. We will prefer it in Q3 and Q4 to be much higher. But look, time will tell.

Speaker #2: And look, in six months, we generated $119 million of operating cash flow. So, we like the silver price. We like where it is. We would prefer it in Q3 and Q4 to be much higher.

Speaker #2: But look, time will tell.

Speaker #3: Yeah, for sure. Thanks, Ben. Great color. I know we're focused on the details here, but at a higher level, it's a very healthy market and strong results from Aya.

Bryce Adams: Yeah, for sure. Thanks, Benoit. Great color. I know we are focused on the details here, but at a higher level, it is a very healthy market and strong results from Aya. Thanks for taking my questions.

Speaker #3: So, thanks for taking my questions.

Speaker #2: Thanks, Bryce.

Benoit La Salle: Thanks, Bryce.

Speaker #1: I wonder if you'd like to ask a question at this time. Please press star one-one on your touch-tone phone. Our next question comes from Justin Chen with SCP Resource Finance.

Operator: I wonder if you would like to ask a question at this time, please press star 11 on your touchtone phone. Our next question comes from Justin Chen with SCP Resource Finance.

Speaker #5: Hi guys. Congratulations. Good to see the cash flow, especially compared to what the initial capex was. My first one's on—you mentioned adding a crusher at Zgounder.

Justin Chen: Hi, guys. Congratulations. Good to see the cash flow, especially compared to what the initial CapEx was. My first one is on, you mentioned adding a crusher at Zgounder. Just curious if you think that in the long run, what type of throughput that could enable, or is it more just to maintain upper 3,000 to 4,000 tons a day?

Justin Chan: Hi, guys. Congratulations. Good to see the cash flow, especially compared to what the initial CapEx was. My first one is on, you mentioned adding a crusher at Zgounder. Just curious if you think that in the long run, what type of throughput that could enable, or is it more just to maintain upper 3,000 to 4,000 tons a day?

Speaker #5: Just curious if you think that, in the long run, what type of throughput that could enable? Or is it more just to maintain upper 3s to 4,000 tons a day?

Speaker #2: Yeah. Thanks, Justin. And I'm going to pass it over to Ralph, but I just want to highlight your comment. You're absolutely right. 1,000 or sorry, 119 million of operating cash flow on a capex of 140 million I forgot to mention that in the presentation.

Benoit La Salle: Thanks, Justin. I am going to pass it over to Raphaël, but I just want to highlight your comment. You are absolutely right, $119 million of operating cash flow on a CapEx of $140 million. I forgot to mention that in the presentation. Thank you so much. I think we have the best return on investment of the whole industry, and Boumadine is going to look similar. Thank you for highlighting this. It is appreciated.

Speaker #2: Thank you so much. I think we have the best return on investment in the whole industry, and Boumadine is going to look similar. So, thank you for highlighting this.

Speaker #2: It's appreciated.

Speaker #6: Hi, Justin. This is Raphael. Happy to have a word on the crusher. So to be clear to start, we're not missing a crusher at Zgunder, right?

Raphaël Beaudoin: Hi, Justin, this is Raphaël. Happy to have a word on the crusher. To be clear, to start, we are not missing a crusher at Zgounder, right? The nameplate is 2,700. Plan is well designed. Now we are pushing it. The easiest way to push it is to add some crushing capacity, because that can be done afterwards and it is quite different from another ball mill, for example. We often have a bit of rain in the beginning of the year, which makes it difficult to push the mill as high as it can go. Now, if we go back to our National Instrument 43-101 we published, we committed to increase throughput from, say, 3,600 to 3,800. We are already there with the help of the mobile contractor. The idea with the crusher addition is to be independent. Now we have the help of a contractor, he is doing a great job.

Speaker #6: The nameplate is at 2,700. The plan is well designed. Now we're pushing it. The easiest way to push it is to add some crushing capacity, because that can be done afterwards.

Speaker #6: And it's quite different from another ball mill, for example. We often have a bit of rain in the beginning of the year, which makes it difficult to push the mill as high as it can go.

Speaker #6: Now, if we go back to our 43101 we published, we committed to increased throughput from, say, 3,600 to 3,800. We're already there with the help of the mobile contractor.

Raphaël Beaudoin: Now, if we go back to our National Instrument 43-101 we published, we committed to increase throughput from, say, 3,600 to 3,800. We are already there with the help of the mobile contractor. The idea with the crusher addition is to be independent. Now we have the help of a contractor, he is doing a great job.

Speaker #6: The idea with the crusher addition is to be independent. Right now, we have the help of a contractor. He's doing a great job, and costs are very reasonable for the gain we get from it.

Raphaël Beaudoin: Costs are very reasonable for the gain we get from it. The idea is to add a tertiary crusher to sustain our current throughput and, who knows, maybe even increase it a bit. That is to be seen. Quarter on quarter, almost every quarter except for one over the last six quarters, we have increased throughput at the mill. I do not think we are at the end of that, but we are certainly getting a bit close. The next two quarters will tell us up to where we can continue to push it. We see days comfortably above 4,000. That has not materialized yet as an average over the quarter. We are trying to get there. Hopefully, we will get there. To answer your question directly, the tertiary crusher was part of our commitment to stabilize the mill at 3,850 tons per day, and we are already there.

Speaker #6: The idea is to add a tertiary crusher to sustain our current throughput. And who knows? Maybe even increase it a bit. That remains to be seen.

Speaker #6: Quarter on quarter, almost every quarter except for one over the last six quarters, we've increased throughput of the mill. I don't think we're at the end of that.

Speaker #6: But we're certainly getting a bit close, and the next two quarters will tell us up to where we can continue to push it. We see days comfortably above 4,000.

Speaker #6: That hasn't materialized yet as an average over the quarter. We're trying to get there. Hopefully, we'll get there. But to be to answer your question directly, the tertiary crusher was part of our commitment to stabilize the mill at 3,800 and 50 tons per day.

Speaker #6: And we're already there, so I don't think it's a stretch to think we can beat that. And that's what we're trying to do.

Raphaël Beaudoin: I do not think it is a stretch to think we can beat that, and that is what we are trying to do.

Speaker #5: Gotcha. Thanks, Ralph. And then, looking at the Boumadine updated PEA, are there any changes in scope that you're considering—perhaps on the throughput side, or on the open-pit versus underground split side of things?

Justin Chen: Got you. Thanks, Rafa. Looking ahead to the Boumadine updated PEA, are there any changes in scope that you are considering, perhaps on the throughput side, on the open pit underground split side of things, or is it primarily an updated CapEx estimate and maybe we will see changes on payabilities?

Justin Chan: Got you. Thanks, Rafa. Looking ahead to the Boumadine updated PEA, are there any changes in scope that you are considering, perhaps on the throughput side, on the open pit underground split side of things, or is it primarily an updated CapEx estimate and maybe we will see changes on payabilities?

Speaker #5: Or is it primarily an updated CAPEX estimate, and maybe we'll see changes on payabilities?

Speaker #6: So, the updated PEA is what it is—it's an updated PEA. We have a new resource, and there's a new way to calculate the NSR.

Raphaël Beaudoin: The updated PEA is what it is. It is an updated PEA, so we have a new resource. There are new ways to calculate the NSR. There are payables that are changing. Materially, the project remains quite a bit the same. I would expect some changes on the open pit side, on the underground side. We have done quite a bit of drilling since our previous resource. The PEA is mostly focused on the resource, Justin. Any other large change, if there would be, would be closer in the feasibility study.

Speaker #6: There are payables that are changing. But materially, the project remains quite a bit the same. I would expect some changes on the open pit size and on the underground size. We've done quite a bit of drilling since our previous resource.

Speaker #6: But the PEA is mostly focused on the resource, Justin. And any other large change, if there would be, would be closer to in the feasibility study.

Speaker #5: Okay, gotcha. Thanks. And just one last question—I think we had a big rainy season, or I guess a wet season, this year. I guess that positions you really well for the second half, in terms of water supply.

Justin Chen: Okay. Got you. Thanks. Just one last one. I think we had a big rainy season or, I guess, wet season this year. I guess that positions you really well for the H2 in terms of water supply. Just kind of clarifying, given Europe has been very dry, but I think this year was good in Morocco.

Justin Chan: Okay. Got you. Thanks. Just one last one. I think we had a big rainy season or, I guess, wet season this year. I guess that positions you really well for the H2 in terms of water supply. Just kind of clarifying, given Europe has been very dry, but I think this year was good in Morocco.

Speaker #5: Just to clarify, in Europe, it's been very dry, but I think this year was good in Morocco.

Raphaël Beaudoin: We are already in August. We are halfway or even past the halfway point of the dry season. Our water reservoirs are full, so we are very comfortable on that end. We just completed the phase II of our tailings facility, which also allows for a little bit of water storage. As we speak, the river flow of Zgounder, and we are continuing to fill a bit, or to keep full, I should say, our water storage. Water is not something we are concerned with in the short and the medium term.

Speaker #6: We're already in August. We're getting to or even past the halfway point of the dry season. Our water reservoirs are full, so we're very comfortable on that end.

Speaker #6: And we just completed phase two of our tailings facility, which also allows for a little bit of water storage. So as we speak, the river flows at Zgunder and we are continuing to fill a bit, or to keep full, I should say, our water storage.

Speaker #6: So yeah, I mean water is not something we're concerned with in the short or medium term.

Speaker #5: Okay, perfect. Thanks, guys. I really appreciate your time, and I'll free up the line.

Justin Chen: Okay, perfect. Thanks, guys. Really appreciate your time, and I will free up the line.

Justin Chan: Okay, perfect. Thanks, guys. Really appreciate your time, and I will free up the line.

Speaker #2: Thank you, Justin.

Benoit La Salle: Thank you, Justin.

Speaker #1: Ladies and gentlemen, that concludes our Q&A period. I would now like to turn the call back over to Benoit for closing remarks.

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

Benoit La Salle: Thank you, operator. Thank you for all the questions. Well, it was a very strong quarter. We are very pleased with Zgounder, with the team. Boumadine, as Ralph indicated, the study will be ready in a couple of weeks. It is mainly a new resource model and introduction of the new payability of the metal. Some people were questioning historically metallurgy. Well, there is no metallurgy issue as we are sending all of the concentrate to a smelter, so metallurgy is not an issue. Payability is important, and we will have the new payability numbers in the PEA. The catalyst that arrived in Q2, we did not mention this, but the US listing has been a tremendous success. The Nasdaq listing, it did increase our G&A this quarter. Some of you may have seen it. It was a little bump in the road of our G&A, but that is being taken care of.

Speaker #2: Thank you, operator. Thank you for all the questions. Look, it was a very strong quarter. We're very pleased with Zgounder, with the team. Boumadine, as Ralph indicated, the study will be ready in a couple of weeks.

Speaker #2: It's mainly a new resource model and the introduction of the new payability of the metal. Some people were questioning, historically, metallurgy. Well, there's no metallurgy issue, as we are sending all of the concentrate to a smelter.

Benoit La Salle: Well, there is no metallurgy issue as we are sending all of the concentrate to a smelter, so metallurgy is not an issue. Payability is important, and we will have the new payability numbers in the PEA. The catalyst that arrived in Q2, we did not mention this, but the US listing has been a tremendous success. The Nasdaq listing, it did increase our G&A this quarter. Some of you may have seen it. It was a little bump in the road of our G&A, but that is being taken care of.

Speaker #2: So metallurgy is not an issue. Payability is important, and we will have the new payability numbers in the PEA. So, big catalyst coming—or the catalyst that arrived in Q2, we didn't mention this—but the US listing has been a tremendous success.

Speaker #2: The NASDAQ listing did increase our G&A this quarter. Some of you may have seen it. It was a little bump in the road for our G&A, but that's being taken care of.

Speaker #2: But the US listing in Q2 is a major, major success. Our volume has gone up. New funds became shareholders. Some became shareholders, holding between 5% and 8% of the company.

Benoit La Salle: But the US listing in Q2 is a major success. Our volume has gone up. New funds became shareholders. Some became shareholders between 5% and 8% of the company. It has really changed our distribution and our shareholder list. We are very pleased with the listing. That was a major catalyst in Q2. Of course, drilling, we had great results in Q2. What to expect going forward is the Boumadine study, which will be in early September. That is important because that is also the base for the feasibility study that will be done for H1 of next year. At the end, we are starting Boumadine. We are going to break ground at the end of the year for electricity, the power line, for water, for the camp, for location and all that. It is an ongoing construction project. Raphaël has built a team in Canada.

Speaker #2: It has really changed our distribution and our shareholder list, so we're very pleased with the listing. That was a major catalyst in Q2.

Speaker #2: Of course, drilling was—we had great results in Q2. But what to expect going forward is the Boumadine study, which will be in early September.

Speaker #2: That is important because that's also the base for the feasibility study that will be done for H1 of next year. But at the end, we're starting Boumadine—we're going to break ground at the end of the year for electricity, the power line, for water, for the camp, for location, and all that.

Speaker #2: So, it is an ongoing construction project. Ralph has built the team in Canada. We have a team in Morocco that's also been put together—the construction team and all of that.

Benoit La Salle: We have a team in Morocco that has also been put together, the construction team and all of that. It is really shaping up to be the big project for 2027, 2028 for us and it is continuing to grow. The drilling is ongoing at Zgounder. The drilling is ongoing at Boumadine. David will have updated results available in September. We are going to see many of you at Beaver Creek or at the Denver Gold Show. We will have updated results from Boumadine and from Zgounder. Also, you can expect more acquisition of ground. Morocco is becoming a very good jurisdiction when you compare that to a lot of Africa and South America. Morocco is a key jurisdiction for mining, and we do see some people coming in. We have a first-mover advantage.

Speaker #2: So, it is really shaping up to be the big project for 2027, 2028 for us, and it's continuing to grow. The drilling is ongoing at Zgounder.

Speaker #2: The drilling is ongoing at Boumâazine. David will have updated results available in September. And we're going to present at the Denver Gold Forum.

Speaker #2: So, we'll have updated results from Boumadine and from Zgounder. Also, you can expect more acquisition of ground. Morocco is becoming—and is becoming—a very, very good jurisdiction.

Speaker #2: When you compare that to a lot of Africa and South America, Morocco is a key jurisdiction for mining, and we do see some people coming in.

Speaker #2: But we have a first-mover advantage. We're buying, and we will be acquiring more ground—ground that David and his team like and believe has tremendous potential.

Benoit La Salle: We will be acquiring more ground and ground that David and his team like and believe that there is tremendous potential. Just on closing, you remember we always talk about the three pillars of the organization, geology, people, and jurisdiction. I think every quarter that we see every increase in commodity price it just tells us that we are in the right jurisdiction with the right mining code, with the right people, with the right government supporting mining. The geology is exceptional, absolutely exceptional. We will continue to show you that there is more Zgounder and more Boumadine and more Imiter in Morocco. The talent pool that we have is just expanding at all time. People are very happy to come and join Aya in Canada or in Morocco. It is a recipe for success. We have done very well so far.

Speaker #2: So just in closing, you remember we always talk about the three pillars of the organization: geology, people, and jurisdiction. I think every quarter that we see any increase in commodity price, it just tells us that we are in the right jurisdiction.

Speaker #2: With the right mining code, with the right people, with the right government supporting mining, the geology is exceptional—absolutely exceptional. And we will continue to show you that there's more Zgounder and more Boumadine and more Imiter in Morocco.

Speaker #2: And the talent pool that we have is just expanding at all times, and people are very happy to come and join Aya in Canada or in Morocco.

Speaker #2: So, it's a recipe for success. We've done very well so far. I mean, since we took over six years ago, this has been a tremendous success.

Benoit La Salle: Since we took over six years ago this has been a tremendous success, but we believe that there is a lot more to come. I would say the best is yet to come, and that is a lot of pressure on David and in geology, but I think the best is yet to come. Jurisdiction is great. Look, we will see you for the Q3 call. We will see many of you before in Denver. Look, we are really looking forward to a strong third quarter, very good geological results and production results and financial results in Q3. Thank you very much. Thank you for being there today and your support, and we will see you in a few weeks in Colorado. Thank you.

Speaker #2: But we believe that there's a lot more to come. I would say the best is yet to come, and that's a lot of pressure on David and in geology.

Speaker #2: But I think the best is yet to come. Jurisdiction is great. And look, we will see you for the Q3 call. We'll see many of you before that in Denver.

Speaker #2: But look, we were really looking forward to a strong third quarter. Very good geological results, and production results, and financial results in Q3. Thank you very much.

Speaker #2: Thank you for being there today and for your support. We'll see you in a few weeks in Colorado. Thank you.

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