Aya doubles Boumadine value to $3.5B - The Northern Miner

AI desk brief

Aya Gold & Silver more than doubled the after-tax NPV of its Boumadine gold-silver-zinc-lead project in Morocco to $3.5B (C$4.8B) in the updated PEA, with a 93% IRR and 0.7-year payback at assumptions of $3,500/oz gold and $50/oz silver. Initial capex rises only 4% to $463M, while mine life extends to 14 years from 11; the study now calls for output of 2.25Moz gold and 81.2Moz silver, with silver production up 16% versus the prior plan and gold down 4%.

The economics are highly sensitive to metal prices: Aya says at Sept. 3 spot prices of $4,472/oz gold and $66.85/oz silver, after-tax NPV would reach $5.5B with a 128% IRR. BMO was more cautious, valuing Boumadine at $1.85B using long-term assumptions of $3,100/oz gold and $36/oz silver, while Desjardins called the PEA a strong positive; Aya shares were volatile on the update, up Wednesday then down 4.3% Thursday as weaker metals prices and lower grades tempered enthusiasm.