Aya Gold & Silver Inc.

Aya Gold & Silver Inc. is a mid-tier silver producer headquartered in Mont-Royal, Canada, operating primarily in Africa. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 development project, in addition to several early-stage exploration prospects. Key assets include Zgounder Silver and Boumadine. The organization's business model focuses on the operation, acquisition, exploration, and development of mineral deposits, with integrated production capabilities that include mining, processing, and sales of dore, ingots, and concentrate. Operational methods have evolved from shrinkage-stope mining to a more efficient and mechanized cut-and-fill system, combining both open pit and underground extraction techniques. The processing infrastructure is composed of 3 distinct facilities, including a modern plant that integrates outputs from the others and features a comprehensive circuit with two-stage crushing, ball milling, gravity separation, intensive cyanidation, counter-current decantation, and Merrill-Crowe recovery to produce final products. The enterprise also demonstrates advanced metallurgical capabilities for complex polymetallic material, with ongoing evaluation of various oxidative treatments. Risk management is addressed through a policy of maintaining a 4-month reserve of critical reagents and consumables to mitigate supply chain disruptions and the selective use of derivative instruments to manage commodity price volatility.

Strategic priorities are centered on a dual approach of aggressive organic growth and disciplined portfolio management. A core objective is the expansion and optimization of existing operations, demonstrated by the recent completion of a major plant expansion designed to substantially increase throughput capacity. Resource base expansion is pursued through extensive, well-funded exploration programs at key properties, utilizing advanced geophysical surveys and large-scale drilling campaigns to extend mineralization, upgrade resource classifications, and identify new satellite deposits. Capital allocation is managed through a combination of equity financing, including successful bought deal offerings, and securing significant debt facilities from international development institutions to fund major capital projects and exploration. The organization's strategy also involves actively managing its asset portfolio by acquiring adjacent, strategic permits while pursuing the divestiture or spin-out of non-core properties to maintain focus on its primary development assets.

Executive leadership is guided by a President and CEO with extensive experience leading public resource companies through development and operational phases. The Board of Directors is composed of 8 members and provides oversight through 3 specialized committees: the Audit and Risk Management Committee, the Nominating and Compensation Committee, and the ESG Committee. All 3 members of the Audit Committee are independent and financially literate, with experience in public accounting, corporate finance, and senior executive financial roles at major industrial companies. Governance is further strengthened by significant director share ownership, with the Chairman of the Board, another director, and the executive team collectively holding a substantial equity position, aligning their interests with those of shareholders. The governance framework includes a formal whistleblowing policy with procedures for anonymous reporting and a comprehensive charter for the Audit and Risk Management Committee that outlines its responsibilities in overseeing financial reporting, internal controls, and auditor independence.

The organization's sustainability approach is formalized through the publication of a climate change report aligned with TCFD recommendations and the establishment of a dedicated Board-level ESG Committee. A key climate action initiative is a 20-year power purchase agreement for the procurement of renewable energy, supporting the objective for operations to run predominantly on clean electricity. This commitment is reinforced by a debt facility from the Climate Technology Fund, which features interest rate reductions tied to achieving specific ESG milestones, including TCFD maturity. Environmental stewardship is demonstrated through the application of International Finance Corporation Performance Standards in its Environmental and Social Impact Assessments. Water management strategies prioritize conservation by utilizing collection ponds and existing sources, avoiding the need for new freshwater wells. The company also implements modern, fully lined tailings storage facilities designed with downstream raises and is actively rehabilitating historical dams. Social initiatives include partnerships to support local agribusinesses and the operation of a mobile health clinic for nearby communities.

The company conducts its activities through several key operational subsidiaries, including Zgounder Millenium Silver Mining S.A. for its primary operations and Boumadine Global Mining S.A. for a key development project. A significant structural arrangement is the 85%-15% joint venture with the Office National des Hydrocarbures et des Mines (ONHYM) for the Boumadine Project, where ONHYM's interest is fully participating. In 2022, the corporate structure was streamlined through the acquisition of ONHYM's 15% interest in the Zgounder Silver Mine, making it a wholly-owned asset while granting ONHYM a 3% royalty. The company is also actively managing its portfolio through planned divestitures, having entered into non-binding term sheets in 2024 for the spin-out of its Amizmiz property and the granting of an option on its Tijirit project to Mx2 Mining. Major contracts underpinning its structure include a fixed-price EPC agreement with DF for plant construction and a $100 million debt facility with the EBRD and CTF, secured by pledges over the assets and shares of its main operating subsidiary.