Wall Street Mav|Feb 24, 2026 17:50
Gold is down a bit today, Silver is up a little bit. And my favorite silver mining stock is up significantly. Why?
1) Aya (AYASF) is not mining in Mexico
2) They just released more drill results indicating their next mine, Boumadine, is much bigger than previously indicated.
People have been asking me why I think Aya is the best pick of the silver mining stocks, here is my summery. Do your own reading also.
Aya currently produces (at Zgounder mine) 6 million oz of silver per year (est for 2026) at a cost of $21 per oz. At current silver prices above $85 per oz, they have operating cash flow of $300+ million per year. Free cash flow is likely around $250 million (after tax and royalties).
Their next mine, Boumadine, will be completed in 2030.
Boumadine will produce 37 million oz of Silver equivalent (AgEq). It will be a combo of gold, silver and other metals, but calculated in silver equiv, it will be 6x bigger than their first mine.
So even if gold and silver stay at current prices, AYASF is going to have a 6x (or more) increase in production. At current silver prices, Aya can build Boumadine with zero stock dilution. Their first mine, Zgounder producing 6 million oz per year, will be able to fund their second mine Boumadine.
The Boumadine projection of 37 million oz per year is based on 8,000 tpd of ore processed. If the resource is larger, and currently drill results indicate it potentially is, then they will build it for 15,000 tpd. In that scenario, Boumadine would produce over 60 million oz Silver (AgEq) per year.
This is a massive tier 1 mine and the major gold/silver companies will want to buyout Aya eventually.(Wall Street Mav)
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