Aya Gold & Silver (TSX: AYA) reported third quarter revenue of US$103.3 million, up 90% from a year earlier, though a 21% sequential jump in production did little to move the bottom line as a growing share of the quarter’s silver was still sitting in inventory at the end of September.
Net income was US$35.0 million, or US$0.23 per share, the same as second quarter net income of US$35.0 million and slightly below that quarter’s US$0.24 per share. Revenue rose 7% from US$96.8 million in the second quarter, with US$17.1 million of that figure coming from pyrite sales at the Boumadine reclaim operation.
Operating cash flow was US$48.1 million, almost the same as the prior quarter. Cash ended the period at US$183.8 million, compared with US$182.8 million at the end of June, while non-current financial liabilities fell to US$43.6 million from US$57.1 million.
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Zgounder produced 1.50 million ounces of silver, up 11% year over year and essentially flat on the second quarter. The Boumadine reclaim contributed 536,879 silver equivalent ounces, which lifted consolidated output to 2.03 million ounces. Mill throughput averaged 4,096 tonnes per day, and processed grade at Zgounder improved to 146 g/t silver from 141 g/t.
Sales didn’t keep up. Zgounder sold 1.24 million ounces, 6% fewer than in the second quarter, and the company put the gap down to the timing of sales. Silver inventory at the mine nearly doubled to 383,757 ounces from 212,516 ounces, and that figure doesn’t include another 138,100 ounces of silver cement that hasn’t been smelted yet.
Costs moved in the right direction. Zgounder cash costs fell to US$17.53 per ounce sold, down 16% from a year earlier, against a realized silver price of US$69.32 per ounce. Consolidated cash costs dropped to US$15.51 per silver equivalent ounce from US$16.82, helped by Boumadine at US$10.42. The lower value pyrite ounces also pulled the consolidated realized price down 7% from the prior quarter to US$59.50.
“Our optimization initiatives are paying off, delivering more scale, lower cash costs and solid cash flow,” said President and CEO Benoit La Salle, who added that the company is “set for a strong finish to the year.”
Aya raised the low end of its 2026 Zgounder production guidance to 5.6 million ounces, which narrows the range to 5.6 million to 5.8 million ounces from 5.2 million to 5.8 million ounces. Consolidated guidance stands at 6.6 million to 6.8 million silver equivalent ounces, and the company reaffirmed its forecast that Zgounder cash costs will stay below US$21.50 per ounce.
Aya Gold & Silver last traded at $34.89 on the TSX.
