Aya Gold & Silver stands out as a compelling buy opportunity, fueled by its current undervaluation and substantial potential for production expansion. Updated projections for the Zgounder mine forecast annual silver output of 6 million ounces over 11 years, with initial cash costs around $20–$25 per ounce.
Company Overview
Aya Gold & Silver, a Canadian-listed precious metals producer, operates primarily in Morocco. The company holds an 85% stake in the Boumadine development project and fully controls the Zgounder silver mine. All figures are reported in U.S. dollars.
Zgounder Mine Updates
Recent technical reports highlight significant progress at Zgounder. Silver reserves increased from 70.1 million ounces in 2021 to 73.4 million ounces by Q3 2025, offsetting an 11 million ounce depletion. The mine now targets 6 million ounces of annual silver production for the next 11 years, with potential for further life extension through ongoing drilling.
Cash costs average $16.50 per ounce over the mine’s life, though early years may see figures closer to $20–$25 per ounce amid strong silver prices. Production figures for 2025 and guidance for 2026 have been released, with Q4 2025 financials due on March 31.
Boumadine Project Potential
The preliminary economic assessment for Boumadine demonstrates competitive operating costs and an initial capital expenditure of $446 million. Aggressive drilling programs and a fast-tracked development schedule position the project for rapid advancement.
Valuation and Performance
Aya Gold & Silver trades at an enterprise value-to-net present value ratio of 0.5 and an EV-to-earnings multiple of 11–12. Analysts project the company could quadruple production and cash flows within five years.
The stock has delivered strong returns over five- and ten-year periods, outperforming many peers. However, it has trailed silver mining competitors over the past one and three years, partly due to Zgounder’s initial output falling short of 2021 feasibility study targets.
