Aya Gold & Silver (TSX: AYA) confirmed on Friday that its third quarter 2024 results came below expectations due to delays in commissioning its expanded Zgounder mine, but added that it is on track to achieve commercial production by year-end.

Silver production totalled 355,927 oz. in what the company calls a transitional quarter in Q3 2024, down 31% from the 519,085 oz. it produced in the same quarter a year ago.

According to CEO Benoit La Salle, the company had experienced non-recurring challenges at Zgounder, such as commissioning of the ball mill, which postponed some operational milestones to the fourth quarter. Due to the delay, it decided to lower its 2024 production guidance to 1.6-1.8 million oz.

“These temporary setbacks are now behind us, and our team is on track to deliver commercial production at Zgounder before year-end,” La Salle said, adding that the mine will be central to the company’s growth plans in the coming years.

Located in the central Anti-Atlas mountains, Zgounder is considered the second most important silver producer in Morocco. It currently holds approximately 8.6 million tonnes in reserves at 257 grams per tonne silver for 70.9 million oz.

After achieving commercial production in January 2019, Aya set out to expand the mine’s nameplate capacity from 700 tonnes per day to 2,700 tonnes, which would quadruple its annual production to 6.8 million oz. of silver. First pour from the expanded mine was achieved in July of this year.

In its Q3 results release, the Canadian miner noted that the expansion is essentially complete at 99%, compared to over 95% at the end of the second quarter. The project is expected to be completed on budget; approximately $159 million of growth and sustaining capex has been incurred and an additional $7 million is expected by completion.

By 11:20 a.m. EDT, shares of Aya Gold had recorded a gain of 13.7% to C$13.42 despite the Q3 miss. The stock surge sent the company’s market capitalization to C$1.76 billion ($1.25bn).

Source: MINING.COM – Read More