Q: Hello. What are your current thoughts on AYA gold and silver? National Bank has it as one of its top jnr picks. Thanks!
5i Research Answer:
AYA's revenue is forecasted to grow at a very high rate over the next two years. AYA claims to be the only TSX listed pure play silver producer. National Bank has recently noted, "2024 is a transition year for AYA, with investors positioned for the Boumadine and Zgounder operations during the year as well as exploration upside." The company took on some debt during 2023, but still has a decent balance sheet with net debt of only $9M. Production is expected to boom in 2024 and the Zgounder mine appears to have significant potential. We think AYA looks like a solid junior mining play in the silver space but we do note that silver has been hit hard recently due to macroeconomic pressures.