Precious metals miner Aya Gold & Silver on Tuesday reported a record quarter for silver production, revenue, and operating cash flow, driven by the ramp-up of its newly commissioned mill and continued growth from its openpit operations.

The miner, which operates the Zgounder mine in Morocco,  produced 1.07-million ounces of silver in the first quarter of 2025, up 192% from a year earlier. 

Silver sales climbed 346% to 1.06-million ounces, generating revenue of $33.8-million – a sixfold increase over the same period in 2024. Operating cash flow totalled $7.9-million, compared with a negative $3.7-million last year.

“Aya delivered a standout quarter, achieving record silver production of over one-million ounces, record revenues of $33.8-million, and operating cash flow of nearly $8-million – all while reducing cash costs and successfully ramping up operations inline with plans and only three months after commissioning the plant,” said president and CEO Benoit La Salle.

The company’s average realised silver price rose 50% year-on-year to $31.87/oz, while cash costs sold fell 7% to $18.93/oz.

Openpit mining drove a significant portion of the gains. Aya mined 133 848 t of ore from the openpit in the quarter at a grade of 155 g/t silver. The openpit mining rate reached 20 891 t/d of total material moved in the first quarter, up from 15 360 t/d in the prior quarter. With additional equipment added in April, daily movement is now nearing 30 000 t/d and is expected to surpass 40 000 t/d by year-end.

“Our openpit ramp-up continues as planned, contributing to record plant throughput and supporting an increase in revenue and cash flow year-over-year,” said La Salle. “Operationally, we continue to see steady improvements, with a clear path to higher throughput and recovery rates aligned with long-term expectations.”

The company processed 249 743 t of ore at an average grade of 163 g/t in the first quarter, achieving 82.4% recovery, slightly below the feasibility study target of 89%. The shortfall was attributed to low dissolved oxygen levels in the leach tanks, caused by underperformance at the oxygen plant. Repairs are under way and recoveries are expected to improve once the plant is fully operational.

Aya ended the quarter with $36.6-million in cash and restricted cash, excluding an additional $11.6-million in silver sales collected early in the second quarter. Working capital stood at $1.75-million, down sharply from $23.4-million at year-end.

“Backed by strong cash flow generation, improving cost performance, growing production, and a solid liquidity position, Aya is well-positioned to drive sustainable growth, maximise profitability, and deliver strong returns to shareholders,” La Salle said.

The company also announced a $25-million credit facility secured from the European Bank for Reconstruction and Development, which La Salle described as “a clear vote of confidence in Aya's long-term growth trajectory".

“This added liquidity allows us to accelerate development at Boumadine, while maintaining a strong balance sheet and funding future growth,” he added.