Do New Zgounder Drill Results Clarify Aya Gold & Silver's (TSX:AYA) Long-Term Production Strategy?

• Earlier this week, Aya Gold & Silver Inc. reported additional high-grade silver drill results from at-depth exploration at its Zgounder Silver Mine in Morocco, emphasizing continuity of mineralization and the potential to grow near-mine resources and expand open-pit operations.
• The update sharpens investor focus on how incremental drilling success at Zgounder could reshape Aya’s resource base, mine planning, and long-term production profile.
• Next, we’ll assess how these new high-grade Zgounder drill results may influence Aya Gold & Silver’s previously outlined growth narrative.

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Aya Gold & Silver Investment Narrative Recap

To own Aya Gold & Silver, you need to believe that Zgounder and Boumadine can keep converting drilling success into long-life, higher-margin production, despite single-country and single-commodity concentration. The latest high-grade Zgounder drill results support Aya’s near-mine growth story, but they do not materially change the near term focus on delivering consistent grades and costs from existing operations, or the key risk that expansion-heavy plans still need to translate into durable free cash flow.

The recent announcement of commercial production from Boumadine’s historical flotation stockpile, with offtake in place and roughly 20 to 24 months of expected throughput, is particularly relevant here. It adds another source of operating cash that can help fund Aya’s large exploration and drilling programs at both Zgounder and Boumadine, which remain central to the company’s growth ambitions.

Yet investors should also be aware that concentrated exposure to Moroccan assets and evolving permitting and regulatory frameworks could...

Read the full narrative on Aya Gold & Silver (it's free!)

Aya Gold & Silver's narrative projects $266.9 million revenue and $92.6 million earnings by 2028. This requires 42.2% yearly revenue growth and a $102.8 million earnings increase from $-10.2 million today.

Uncover how Aya Gold & Silver's forecasts yield a CA$23.08 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Nine Simply Wall St Community fair value estimates for Aya range from CA$9 to CA$102, showing how widely opinions on upside and downside can differ. Against that backdrop, Aya’s dependence on Moroccan assets and permitting stability remains a key factor that could influence how those differing views ultimately play out, so it is worth weighing several perspectives before forming a view.

Explore 9 other fair value estimates on Aya Gold & Silver - why the stock might be worth over 4x more than the current price!

Build Your Own Aya Gold & Silver Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Aya Gold & Silver research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Aya Gold & Silver research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Aya Gold & Silver's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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