Aya Gold & Silver: One Record High After Another
Whilst gold and silver prices have not yet reached their all-time highs seen at the start of the year, some shares in the sector have already done so. Shares of Aya Gold & Silver recently reached the CAD 40 mark for the first time, setting a new all-time high. They are currently trading slightly below that level. However, the path higher appears to be firmly intact.
This is down to the Canadian company’s second mine, currently under development in south-eastern Morocco. This project, called Boumadine, represents the company’s future. In early September, Aya Gold & Silver intends to present an updated preliminary economic assessment (PEA) for this project. A PEA provides an initial insight into the economic viability of a deposit.
The initial PEA, published at the end of 2025, revealed an extremely high-grade polymetallic deposit. In addition to gold and silver, it also contains significant amounts of zinc and lead. According to the PEA, the following metal grades are anticipated. During the first five years of operation, the high-grade phase, an average of 443 g/t silver equivalent is expected to be mined. In addition, the gold equivalent is also high at 4.76 g/t. With Boumadine, Aya is transforming from a pure silver producer into a precious metals miner. If operations proceed as planned, Aya will in future generate 50% of its revenue from silver and around 35 to 40% from gold.
Financially, the company is excellently positioned for the move to its second mine. Aya Gold & Silver generated revenue of USD 96.8 million in the second quarter, 150% more than in the same quarter last year. Net profit stood at USD 35 million, three times the previous year’s figure. With a strong cash position of USD 182.8 million, the investments in Boumadine can be financed. At the current main mine, Zgounder, 1.68 million ounces of silver (+61.5%) were produced. Aya remains a true champion when it comes to costs, as the silver is extracted at a cost of USD 16.82 per ounce. Whilst other mining companies are reporting cost increases due to rising global inflation, costs here have fallen by around a fifth.
Aya Gold & Silver is currently benefiting not only from its operational business but also from the commodities markets. Should gold and silver continue to rise, the Canadian company’s profits will also keep climbing.
Lahontan Gold Aims to Move Quickly Into Production
These are good times for gold developers. At present, it is relatively easy to finance the construction of new mines. The lending banks are well aware of the high margins that producers can currently achieve. At present, most companies are achieving production costs of between USD 1,500 and USD 2,000 per ounce. Given the high gold price, this promises profit margins of up to USD 3,000 per ounce. Just a few years ago, this seemed impossible; now the rewards are being reaped. Lahontan Gold also intends to follow this path. The Canadian company is planning to recommission the historic Santa Fe gold mine in Nevada. On the one hand, the permitting process is being advanced; on the other, preparations are underway on site so that a decision on construction can be made in 2027.
As recently as mid-August, the company presented a new, updated resource estimate. The total resource, optimized for open-cast mining, is now 22% higher than in the previous study. This corresponds to an increase of 435,000 ounces of gold equivalent. The indicated resource totals 1.195 million ounces of gold equivalent and has a pure gold grade of 0.72 g/t. In addition, the inferred resource totals 1.190 million ounces of gold equivalent at an average grade of 0.61 g/t. A key factor for the planned production is that the Santa Fe main deposit has seen its resource increase by 26%.
The resource estimate is based on a total of 136,515 m of drilling data. However, Lahontan is pressing ahead with further exploration work and aims to expand the resource further. In the long term, this will help to extend the mine’s life.
However, the study that is likely to be decisive is still pending. This is because management has commissioned a preliminary economic assessment (PEA). This Preliminary Economic Assessment is being carried out by the independent consultants KCA and RESPEC. CEO Kimberly Ann intends to have the options examined for commencing production using an affordable open-cast mine combined with heap leaching.
It is important to note that Lahontan Gold benefits from an established infrastructure in Nevada. The state is the largest gold producer in the US. Consequently, the area already has a workforce, water, and access to electricity and roads for the mine. This reduces the investment costs for the mine. At Santa Fe itself, Lahontan can build on past production, as approximately 359,202 ounces of gold and 702,067 ounces of silver were extracted from the open-pit mine between August 1988 and 1995.
Lahontan Gold currently has a market capitalization of around CAD 166 million. In addition to its home exchange in Toronto, the share is actively traded on Tradegate in Germany. Investors who believe in stable or rising gold prices can back Lahontan as a future producer. As a rule, these shares are valued higher as the start of operations draws nearer. In the medium term, therefore, Lahontan should be valued similarly to comparable producers. And that means significantly higher valuations than today!
Perseus Mining: Africa in Focus
With three gold mines in West Africa, Perseus Mining is a key player in the region. However, what sets it apart from many competitors is that these operations are all located in Ghana and Côte d’Ivoire, both considered safe. With the Nyanzaga project in Tanzania, the company is currently working on its fourth mine on the continent. This is already at an advanced stage of construction and is set to commence production from early 2027. Conversely, the company has sold the Meyas Sand project in Sudan, which it acquired through the takeover of Orca Gold.
Perseus aims to make a significant leap forward with this fourth mine. Once fully operational, it is expected to produce 200,000 ounces of gold per year. In the fourth quarter (of the split financial year) ending June 30, Perseus produced 109,013 ounces of gold. The realized selling price was USD 4,086 per ounce. However, Perseus is not exactly a low-cost producer; its AISC stood at USD 1,941 per ounce, nearly USD 200 higher than the previous quarter. Here, Perseus is feeling the impact of increased government royalties against a backdrop of high gold prices. This was compounded by shifts in the ore mix.
With cash reserves of USD 1.03 billion, the company is in a strong financial position. The share price has recently performed well, rising by more than 40% since July. Perseus repurchased shares worth AUD 126 million in the last quarter alone. The company intends to continue this program and invest up to AUD 350 million in share buybacks in the new financial year. In addition to the regular dividend, an additional AUD 100 million is to be distributed to shareholders. These funds come from the sale of the Sudan project.
With Perseus Mining and Aya Gold & Silver, investors can gain exposure to two growing gold producers. Aya, in particular, benefits from low production costs, which provide a genuine competitive advantage. Lahontan Gold’s stock should gradually undergo a revaluation, with construction of the Santa Fe Mine scheduled to begin in 2027. This could offer significant potential for investors.
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