Aya doubles Boumadine value to $3.5B

AI desk brief

Aya Gold & Silver more than doubled Boumadine’s after-tax NPV to $3.5B in its updated PEA, helped by higher gold/silver assumptions of $3,500/oz and $50/oz and a longer 14-year mine life. The project is now modeled at a 93% IRR and 0.7-year payback on $463M initial capex, with management aiming to fund development through cash flow and debt to avoid dilution.

The study is bullish for Aya’s silver leverage: Boumadine is expected to produce 2.25Moz gold and 81.2Moz silver over life of mine, with silver output up 16% versus the prior study, though grades were lowered. BMO called the PEA “mixed” on lower grades, while Desjardins said the strong economics and modest capex make Boumadine one of the more attractive undeveloped precious-metals projects globally. At Sept. 3 spot prices, Aya calculates a $5.5B after-tax NPV and 128% IRR, but the shares still fell Thursday as some investors focused on the weaker grades.