Aya Gold & Silver (TSX: AYA) reported Q3 2025 revenue of $54.3 million, up 393% year over year from $11.0 million, driven by ramp-up at the new Zgounder plant and a higher average net realized silver price of $39.85 per ounce, up 46% from $27.29.
Cost of sales rose to $33.0 million from $9.1 million as volumes expanded, putting gross profit at $21.4 million from $1.9 million. Gross margin improved to 39.3% from 17.0%.
Operating income was $15.2 million versus a $3.1 million operating loss, taking operating margin to 27.9% from negative 27.8%. This led to $12.4 million in net income from a loss of $0.3 million last year, translated to diluted EPS of $0.09.
Cash costs per silver ounce sold were $20.79, down 11% year over year, putting implied unit cash margin at $19.06 per ounce. Management attributed the improvement to scale benefits from the ramp-up and better grade control reducing dilution.
Operating cash flow was $22.4 million, a sharp turnaround from an outflow of $11.8 million a year ago. Capital expenditures totaled $10.5 million, largely for Zgounder plant items and the tailings storage facility phase two, plus underground development. After capex and $14.1 million on evaluation and exploration, implied free cash flow was modestly negative for the quarter.
Cash balance ended the quarter at $129.2 million, up from $30.9 million at year-end 2024.
On production, the company delivered record silver production of 1.35 million ounces, up 278% year over year, while total silver sales were 1,363,511 ounces, up 238% from a year ago. Plant throughput averaged 3,326 tonnes per day, up 267% year over year, with mill availability of 96%. The average processed grade was 146 g/t silver versus 161 g/t last year, while combined mill recovery improved to 92.5% from 83.0%.
Breaking it down, underground mining averaged 1,276 tpd at 159 g/t silver, while open pit delivered 1,066 tpd at 123 g/t silver as stripping continued in the northeast section. Total ore mined averaged 2,341 tpd and the site carried 158,546 tonnes of stockpiled ore into Q4 2025.
Management noted the mill is currently running above 3,700 tpd with recoveries above 90%. Additional mobile equipment slated for Q4 2025 is expected to lift open-pit output above 2,000 tpd by Q1 2026.
In November 2025, Aya released a preliminary economic assessment for Boumadine that outlined a post-tax NPV5% of $1.5 billion, a 47% IRR, and a 2.1-year payback at base case prices, and a post-tax NPV5% of $3.0 billion, a 77% IRR, and a 1.2-year payback at spot prices. The company holds a mining license and targets feasibility completion by late 2027.
Aya Gold & Silver last traded at $14.76 on the TSX.
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