Aya Gold & Silver (NASDAQ:AYA) shares advanced more than 2% in premarket trading Thursday after the company reported first-quarter results highlighted by record revenue and sharply higher profitability.
The mining company posted revenue of $117.3 million for the quarter ended March 31, 2026, representing a 247% increase from the same period last year.
Higher Silver Prices and Production Drive Growth
Aya reported adjusted earnings per share of $0.33 for the quarter.
The company said results were supported by an average realized silver equivalent price of $82.22 per ounce, up 158% year-on-year.
Consolidated silver equivalent sales increased 34% to 1.4 million ounces during the quarter.
Net income climbed to $49 million, compared with $7 million in the prior-year period.
Cash Flow Surges on Improved Operating Performance
Operating cash flow rose 785% year-on-year to $70 million.
Aya attributed the improvement to stronger precious metals prices and lower operating cash costs.
Consolidated production reached 1.5 million silver equivalent ounces, marking a 40% increase from a year earlier.
Production included 1.3 million ounces from the Zgounder mine and 227,802 ounces from the Boumadine pyrite reclaim operation.
Weather Impacts Zgounder Output During Quarter
Production at the Zgounder mine declined 8% compared with the previous quarter due to weather-related disruptions that affected crushing operations and throughput levels.
The company said mining and processing operations have since returned to normal conditions.
CEO Highlights Operational Resilience
President and chief executive Benoit La Salle said the company delivered strong operational execution despite difficult weather conditions.
“Our exceptional financial performance in Q1 reflects both the strength of disciplined execution and market conditions,” La Salle said. “Despite challenging weather conditions we delivered strong production, record mining rates and cash flow, highlighting the strength and resilience of our operations.”
Costs Decline as Mining Focus Shifts
Cash costs averaged $18.40 per silver equivalent ounce sold during the quarter, down 8% from the prior quarter.
Aya said the reduction reflected a lower strip ratio as mining activity concentrated on higher-grade ore zones.
The company ended the quarter with $172 million in cash and cash equivalents.
Exploration Activity Continues at Boumadine and Zgounder
During the quarter, Aya completed approximately 42,827 meters of drilling at Boumadine and 5,838 meters at Zgounder.
The company also reaffirmed its full-year 2026 guidance.