AYA

Good morning, everyone. I will now turn the call over to Elizabeth Hamaue, Aya Gold & Silver's Director of Corporate and Financial Communications. Please go ahead.

Thank you, operator, and welcome to everyone who has joined Aya's first quarter 2026 earnings conference call. Here with me today, I have Benoit La Salle, President and CEO, Ugo Landry-Tolszczuk, Chief Financial Officer, Elias Elias, Chief Legal and Sustainability Officer, Raphaël Beaudoin, Vice President of Operations, and David Lalonde, Vice President of Exploration. We will be referring to a presentation on this conference call, which is available via the webcast and is also posted on our website. As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release and MD&A, as well as the risk factors included in our annual information form.

Technical information in this presentation has been reviewed and approved by Raphaël Beaudoin, Aya's Vice President of Operations, and David Lalonde, Aya's Vice President of Exploration, both of whom are Aya's qualified persons as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects. I would also like to remind everyone that our presentation will be followed by a Q&A session.

With that, I would now like to turn the call over to Benoit La Salle.

Thank you, Elizabeth. Good morning, everyone. Thank you for assisting this Q1 2026 conference call. Let me summarize the quarter before we get through the presentation. I think it's, we need to summarize this as Q1 is an exceptional quarter for Aya. It's an exceptional quarter knowing that Q1 is always the most difficult quarter for the company as we are at 2,200 m above sea level in the mountains with lots of snow and rain and wind. This year, due to the fact that we lost five days of operation due to weather-related situation, we still delivered an outstanding quarter. Aya delivered record revenue, record cash flow, expanding margin, rising silver price, and lower cash costs. We have a very strong Q1.

When you compare it to Q4 of last year with Q1 of this year, on a per day basis, the production per day is very similar, approaching 15,000 oz. The reason the production is a little bit lower in Q1 is due to the fact that we lost an equivalent of about five days of production. When you look at the highlights, it's record revenue of CAD 117 million. It's record cash flow of CAD 70 million. It's a record net income after tax of CAD 49 million. It's a cash balance at the end of the quarter of unrestricted cash of CAD 172 million. It's a production of almost 1.5 million oz for the quarter with record mining rates, you know, really strong quarter.

As we have a record mining rates, we've also increased our stockpiles. Taking you to our presentation that we use, showing you some, you know, graphics. If we go to page four, after the forward-looking statement, you see exactly what I've just said. The record revenue in Q1 2026 at CAD 117 million, compare that to last year at CAD 34 million. The net income of CAD 49 million compared to last year of CAD 7 million, with an EPS of CAD 0.33 fully diluted and CAD 0.34 on a non-diluted basis. When you look at Q1 of operating cash flow this year at CAD 70 million compared to last year, CAD 8 million. Very strong quarter. You see it on the right-hand side.

We're showing you the production profile has increased from Q1 2025, where we produced 1 million oz of silver, to Q1 of 2026, where we're at 1,490,000 oz. Of course, a little bit lower than Q4 of last year because Q4 of last year had no weather-related event, whereas Q1 of this year had approximately five days of weather-related events. Moving on to page five of the presentation. Very interesting on the left-hand side, the quarterly mining tonnage. You know, we've always been saying that the mining has to follow the plant. The plant's production profile has been, you know, 30%-40% above nameplate capacity, the mine also, you know, needs to follow the plant.

The mine is actually now exceeding the plant. You see on the left-hand side, last year, you know, we were running at 2,200 tons a day. In Q4, we were at 4,200 tons a day. Now by Q1 this quarter, we were running at 4,600 tons a day. Absolutely stellar performance from the mine, from the open pit, and from the underground mine. The grade is also, you know, steady and improving. We're pleased with the outcome of the mining and the grade and the throughput. On the right-hand side, you look at the plant. Well, in Q4, the plant was running at 3,800 tons a day. In Q1, the plant's running as well, and if not sometimes higher, but as indicated, because of the lost days.

If some of you have followed the weather in Morocco, it was extremely rare, like they had 2x the historical average rainfall and snowfall in all of Morocco. I was there two weeks ago, and the week before that, there was snow in Marrakech, which is absolutely, you know, rare. This is in one way, it was a little bit difficult on the actual production, but we now have more than 15 months of inventory of water at site, and the rivers are still running. You know, being a little difficult on the production was a great situation for water management and for us and for all the country. Now, all the water reservoirs have been filled.

Some of the reservoirs that had not seen water in many years are now full. The water situation globally for the country was extremely good. Moving on to slide number six, a quick word on Boumadine. You know, at Boumadine, we are reclaiming the pyrite. The operation is going extremely well. We produced 127,000 oz of silver and 1,757 oz of gold. A little bit lower than what we wanted it to be. Again, weather related, because of course, the bad weather of Zgounder was also, you know, weather related in, at Boumadine.

The other situation with Boumadine is because we are exporting the pyrite tonnage, the port in Morocco were shut down for one month because of weather, because of floods. Of course, that's why, you know, the silver equivalent sold, if when you look at page six, you see the silver equivalent produced of 227,000 oz and only 50,000 oz sold. One reason, exporting. If, you know, we produce it, we ship it to port, and then it stayed there because we could not ship it just because of very difficult weather. All of that is behind us. It's probably now going to rain next time in November or December. It's all behind us.

The reality was that even at Boumadine, we were a little bit affected, especially on the shipment of the concentrate to Asia. The Boumadine project is really an add-on to Zgounder. It's minimal CapEx, you know, very low cash cost. It's positive cash flow. The grade reconciliation is actually better. We have the gold grade is a little bit better. The silver grade is better than what we had in our model. Globally, it's a very profitable project and which is at the same time an ESG project because we're cleaning all of the historical waste that was left there for many years. It's still going on, and it's accelerating now in Q2, Q3, and Q4.

We are accelerating the reclamation of the Boumadine pyrite. Going to page seven of the presentation. This, again, coming back to last quarter, this is the most important slide. The one on the left is the margin. Look at the margins from Q1 2025 to Q1 2026. You know, we were working with a CAD 12 margin in Q1 last year and staying at CAD 12 in Q2 of last year. Margins started going up to CAD 20 in Q3, you saw to about CAD 40 in Q4. Margins right now are like CAD 63 in Q1 of 2026. And obviously, you are following the silver price. And we're seeing that this is, you know, is very strong silver price at the moment.

Our costs are stable. We are not affected greatly by the war and the increase in fuel price. We are. Cyanide went up a little bit. We're gonna see that in Q2, but it's marginal. The main reason is our electricity is from the grid, and it's solar and wind. Like most companies are affected because they need to generate their own power at Zgounder, and it will be the same at Boumadine. The power is solar and wind. We do not expect costs to increase more than, you know, maybe CAD 1/oz if they increase by that much. The reason is really because of the source of energy. On the right-hand side, you see the growth of revenue.

As I said, Q1 at $117 million of revenue with a net income after tax of $49 million. This is a very strong performance of revenue increasing. Of course, it's due to the silver price, you know, we understand what the production profile is. The silver price was extremely good in Q1. Our highest selling unit or selling price in Q1, at one point, we were able to sell close to $120/oz. It's showing now the average of $82 as we speak right now, the silver price is higher than the average of Q1, 2026. The net income, net income after tax of $49 million with an EPS of $33.

Very, taking us to page eight, a very strong balance sheet. We finished the quarter with $172 million. in the bank. On top of that, we have the restricted cash that we have for the EBRD loan of $16 million. When you look at this, it's a very, very strong cash position, a strong balance sheet, only one debt with EBRD, which is now below CAD 100 million, and which, you know, we could pay, it's a very good and not so expensive loan with EBRD. There's no point in pushing the repayment of that debt. When you look at cash from operation at CAD 70 million, our capital expenditure program is CAD 4 million.

The exploration and evaluation, exploration mainly, is CAD 14 million. We had a very good quarter on exploration, and I'll talk about the drilling. All in all, when you look at this with a CAD 18 cash cost and, you know, all the CapEx behind us, it's a very, very profitable quarter. Moving to page nine, which is our guidance. Our guidance was presented to you at the beginning of 2026. We are maintaining our guidance. We, though we are a little bit below where we wanted to be. In our production guidance, we knew that Q1 is always a little bit weaker than the rest of the year because of seasonality.

We knew that, so that was part of our planning, and we're very comfortable with our guidance of 6.2 million oz-6.8 million oz. The Zgounder production between 5.2 million and 5.8 million. The Boumadine at 1 million oz of silver equivalent. We're very comfortable with that. When you look at the Zgounder cash costs at CAD 21.50, I understand that we were at CAD 18 this quarter, you know, it's a question of the strip ratio. We know that, you know, over time, we're gonna be a little bit higher than this. We're comfortable to say that on the guidance at CAD 21.50 is where it should be. The Boumadine cash costs at CAD 10.10. In Q4, it was CAD 6. In Q1 of this year, it's more like CAD 11. We're very close.

We are also going to ramp up on quantity. In ramping up on quantity, obviously, the cash cost per ounce will come down a little bit. On the sustaining and growth capital, sustaining is about half, CAD 18, and growth capital is CAD 18 for a total of CAD 36. The main growth capital is really we're pushing the ramp down, all the way down to the granite, so that we can go and reach those lower levels where we see high-grade silver. On the exploration expenditure, well, the budget is CAD 60 million. As you know, as a company, we plan to drill close to 240,000 m this year. This is ongoing. We have always between 14 and 18 drills turning.

David has a team of almost 400 people in exploration, including all the drillers. It's a large program, but we need that program to convert the resource at Boumadine from inferred to measured and indicated for the feasibility study of next year. Taking you to slide number 10. Where are we going this year? What are the priorities? Well, look, Boumadine is a top priority. We're very happy and very, you know, in an extremely good position that we can do Boumadine with no outside debt, no equity financing. We have the money available to push on Boumadine. We are pushing on the feasibility study, which we want to be ready for next year, 2027, and also the updated PEA, which will be ready by the end of June, beginning of July.

We have, you know, we are stepping up on every aspect. I always say every chapter of the study, make it water, DSS, energy, flow sheet, logistics, every chapter is being worked on, and as soon as it's ready, it's being executed. The feasibility study is ongoing. We have identified the contractors for the open pit. We have identified the contractors for the flow sheet, we will be going into detail engineering shortly. I mean, we are working with our partners on logistics. All of that is moving towards completion of the feasibility next year and beginning of construction. On the drilling front at Boumadine, we drilled in Q1, obviously, 42,000 m.

You know, this was the ramp up, plus it was the one month of Ramadan, which we during Ramadan, sometimes we do not drill as much, and we do have a week off at the end of Ramadan. For Q1, we've drilled 42,000 m. We're stepping up there because the objective is 180,000 m for the main structure and an additional 20,000 m on the regional play. That is being done, and we will be delivering on that. At Zgounder, the plan is, you know, be more efficient, control your costs, make sure that, you know, we maximize our revenue, that the mining is very precise, that there's no dilution.

The key thing at $80 or $90 silver is let's not leave an ounce behind and sterilize those ounces. We take it out. If it's between 50 g and 80 g per ton, we stockpile it. We expense it. It's in the cash cost, but we stockpile it. If it is between 80 and the deposit grade, we put it through. We have a stockpile, and then we put it through the plant. It's extremely important for us to maximize what we're mining, the ounces that we're mining, and that's why we're running way above 4,000 tons per day and controlling costs. We've also been working on the tailings facility because, originally, the tailings was planned for 2,800 tons a day.

We're now running close to 4,000 ton a day. We've decided to do the first phase of the tailings construction to increase the tailings capacity, and that will be done this summer. We will be all done over the summer. When you look on page 11 of where we are, we have Zgounder that will be producing life of mine, 6 million oz a year, life of mine cash cost at CAD 16, AISC around CAD 19, life of mine, extremely profitable, and that is only from one structure. You will see sure in the coming weeks some more exploration results coming out of Zgounder because, of course, at Zgounder, we would like to increase the life of mine from 11 years, hopefully, to 15 years and if possible, even increase the throughput.

Our development asset, Boumadine, that is the PEA is being reviewed. The resource update will come with the PEA. As of the end of 2024, we were looking at 450 million oz of silver equivalent. That will be updated because we've drilled more than one year the structure. That will be updated, and it will be included in the new PEA. On the right-hand side, to me, that's the most important strategic view of Aya, is we are currently a 6 million oz producer at CAD 19 all-in life of mine at Zgounder. We will add to that by 2029, 37 million oz of silver production equivalent at an all-in cost of CAD 14, making us a 43 million oz producer, of course, silver equivalent.

That will have an average AISC when you look at 20 or 19 for Zgounder and 14 for Boumadine. You're looking at mid-teen for an AISC. Depending what silver price you want to assume, you can do the math. On top of that, Aya is a major exploration play. We have two districts. We have the Boumadine district, and we have the Zgounder district. Not only do you have two projects, you have two mines. You have the Zgounder mine, and you have the Boumadine in development mine. You have the Boumadine regional play, and that is an extremely large play. We have 800 sq km. We will be drilling there, 20,000 m on the regional play. Of course, the 180 on the main zone that is infilled, though we are finding new zones.

You saw in the last press release we had identified new zones. We will be pushing the drilling on the main zone, of course, up to 180,000 m. On the exploration on the regional, as we keep telling the team, you know, as soon as you have another structure to where you want to really drill it out, just come back to the committee and to the management committee, we will give you more budget. Boumadine as an exploration play is very unique. It's got big systems. The main zone is over 5.4 km. You have also Assirem, which is an 8 km-long structure. I mean, we have very strong zone. Tizi is a parallel zone, it's also 5.4 km long.

Boumadine is a major regional play. Zgounder, well, Zgounder is, we've done a lot of work. We've done a lot of geological work. We've used AI. We have many targets. We have new theories and new geological concept behind Zgounder that we're going to be testing this year. It is also a very interesting geological play. In Aya, you have all the geological upside of a major exploration company drilling 230,000-240,000 m of exploration drilling coming in 2026. Then you have the production coming from Zgounder, and you have the development at Boumadine.

Again, to conclude and to go into the Q&A period, very strong quarter. In our weakest quarter as planned, we are pleased with the production. We are confirming our guidance, we look forward to a stronger Q2 and much stronger Q4 and Q5 to close the year again. Based on the silver price, it should be an extremely profitable year.

Thank you, I will turn it back to the operator for the Q&A period.

Thank you. If you'd like to ask a question, please press star one one. If your question has been answered and you'd like to remove yourself from the queue, please press star one one again. Our first question comes from the line of Larry Liu with CIBC. Your line is open.

Hi, Valentin. Thanks for taking my question. I guess I'll start off asking about the severe weather conditions. Benoit, can you tell us, you know, what are some of the precautionary measures now that the team have taken? I know you mentioned that this is a very rare event, but are there any precautionary measures you've taken to prevent any further impact to your current operations? I guess second part of that question is, your stockpile did increase by 44% or 15 months worth of production. Is there an optimal, you know, kind of size of stockpile you're looking for or should we start to see it gradually decline as the milling throughput comes back up again?

Yeah, thank you for your question. I'll pass it over to Raph, who was at site for all of that period, and will tell you what we have done to mitigate the risk of weather-related events and what it does to our production profile, which is only in Q1, by the way, because after that, it's sunshine for the rest of the year.

We're in the mountain, and as a good mountain climate, when it rains, it pours. That essentially results into stickiness of the ore and decreases throughput of the crushing circuit. To catch up, it's something we've been working on for a while to increase the crushing throughput, which is the actual bottleneck in the plant. We did in Q1 3,633 ton per day on average in Q1. As soon as sunshine came back in April, we're back on track at 4,000 right there in April. The worst is behind us for the rest of the year, essentially.

To answer your question, to mitigate that, we gave a small contract to a contractor, a crushing contractor that is up in operation now a bit as a contingency for weather and also to help debottleneck the plant a bit from the crushing side. This contractor will stay there as long as we need it. We're also contemplating to increase our own crushing capacity within this Zgounder plant, and that's something under study that we should be able to make a decision on that soon.

Bottom line is we have a contractor that helps us out since maybe a bit less than a month now that can compensate for a bit lower crushing capacity to make sure the plants remain saturated.

The stockpile?

Yeah, sorry. The stockpile, we sit about 300,000 ton right now. It's close to a three months worth of production. It's a buffer that I'm personally comfortable with. We've been really pushing over the last year to bring the open pit to steady state. Now we're producing comfortably over 3,000 ton per day in the open pit, with peaks much above that. It gives us time to do the pushback if we want to later on this year. It gives us time to shut down upper levels in the underground that will be that will be mined in the open pit. It's a flexibility that we always believed in that helped us out in many ways.

To answer your question, 300,000 tons is probably where we wanna be. It gives us the flexibility we need for future pushback and the flexibility to maximize, again, the ore recovery by the open pit. Now that we've reached this capacity and this flexibility, we will look to continue optimizing the underground development, especially on the sub-levels. We can focus now more our efforts into the lower levels and keep the stockpile around 300,000. I wouldn't be surprised we see it go down a bit through the year, which is fine. That's why it's there.

Perfect. Sounds good. Thanks, Raphaël.

Sort of push back in the open pit towards the end of the year.

Perfect. Sounds good. Thanks, Raphaël. I guess, you know, kind of shifting gears away from Zgounder now and walking back to Boumadine. You know, this quarter, there was some commercialization of the pyrite concentrate. We see the cost come in at CAD 11.86/oz of silver equivalent. How should we look at it? I know it excludes mining, but how does that compare to your PEA, for example, and would this be a good read-through in terms of cost we should see within the feasibility study coming up?

For the current pyrite reclaim, we essentially dig a pyrite stockpile, we crush it, and we send it in trucks. Our costs are really low. Our costs will remain for the rest of the operation, it's tough to make a parallel with that with our future Boumadine project. It has nothing to do, this is a small project. It's gonna be reclaimed for the next two years. It gives good cash flow. It's a good exercise to start building a small operating team at Boumadine and to have more presence on our Boumadine site, as we go from PEA to feasibility to construction. One is not comparable with another.

Got it. Sounds good. All right. I think that's all the questions I have today. Thanks, Raphaël, and thanks, Benoit team for taking my questions. Thank you.

Thank you.

Thank you. Our next question comes from Justin Chan with SCP Resource Finance. Your line is open.

Hi, guys. Congrats on a good quarter, and thanks for the update. My first one's just on the, I guess, on the mine plan for the rest of the year. I guess, compared to Q1, how should we think about strip for the open pit? I saw the underground really pushed tons quite hard. Do you expect that to continue? I think you were foreshadowing maybe you're shifting more to development and into the lower level. Should we expect tons mined to come down a little bit from that high pace in Q1 from the underground?

Hi, Justin. Yeah, good question, actually. It's We've been, as you all know, we've been pushing tonnage both in the underground, the open pit. We really wanted to bring back the stockpile we deserve, show everybody we could have a good throughput at Zgounder, both in the open pit, in the underground, in the plant. I think those discussions are behind us now. We have full team on the ground. The open pit has showed it can deliver. The open pit is wide open. We have room to work.

First for your strip ratio, we expect the long-term strip ratio to be what we published in our latest 43-101. This strip ratio of 9, it's temporary. We will have months at 8 or 9, like we have now, and we will have months at 20, like we had in the past. Overall, it's between 13 and 16, and this is what we expect on the longer term. Can you hear me, Justin?

Yeah, I can hear you well. Thanks, Raph.

Okay. For the underground, absolutely. We've been, you know, we've been at a rate of over 1,500 ton per day underground. We have some of these levels that we wanna shut them down because we want to increase the maximum ore recovery through the open pit. To answer your question, yes, there will be a shift in focus in Q2 moving on for the rest of the year to accelerate the ramp down and to transfer some of this production power into stope development and sub-level development. We're comfortable at the underground rate at around 1,000 ton per day is something we're comfortable with because the open pit is well-established now. You can expect moving on to have the rate of the underground to slightly decrease.

1,000 to 1,200 to 1,300 tons per day is probably the sweet spot. We need to really focus on those, on those sub-levels, for which we also know we have pretty good grade going down.

Okay. Got it. Thanks, Raph. That's great color. On the plant, do you think you'll keep the mobile crushers around even when it gets dry? What would your throughput potential be if that's the case?

Again, what we publish in our feasibility is above 3,600 this year and 3,850 next year. Internally, we're trying to beat that. We have like our best days right now are around 4,300 ton per day. Those are punctual, like best daily performance. I think, Justin, the around 3,800 is probably where we'll be comfortably at in the near future. We're really pushing this plant. As you know, nameplate is 2,700, now we're near 4,000. It's difficult for me to speculate above that because we need to go bottleneck after bottleneck. I think there's a bit of juice left in the plant, but we need extra crushing capacity for that.

3,800 is probably where we would be. Some good months above that, some bad months around that. To answer your question, 3,800, including the mobile crusher that we'll keep as long as we need.

Okay. Perfect. Thanks. I'm not sure who's the best person to ask this question to, but on Boumadine, I guess the ounces that weren't sold this quarter, do you expect to sell them in Q2, or should that become spread through the rest of the year? Also just given the world being pretty short of sulfur, will there be any noticeable increase in payability, do you think, for Q2 and Q3, or is it too early to say that?

Hi, Justin, it's Ugo. For production, for sales of Boumadine, it's not that the clients don't want it. I think we get called every week and they say, "Can we get more material?" Especially with what's happening in the sulfur market today. We are logistics by truck, like we're learning it, so it's going to be spread out throughout the year and we're trying to modify things a little bit to send larger shipments. So that on that, I think it's going to be put, it's going to be through the year, but the 1 million oz of silver equivalent is still what we're on track to do.

In terms of payability, it's not gonna change because it's old material that's been there for a long time, the sulfur quantity is a lot less than fresh rock from Boumadine. The payabilities aren't gonna the volumes are small on the 200,000 to 240,000 tons total. That we've agreed on a price and on a contract for with our traders, and so that's not gonna change throughout the throughout that stockpile.

Justin, if I can add on payability, the payability is changing on the bigger project.

Yeah.

Yeah. Because that has 45% sulfur. As Ugo said, the tailings is a bit worn down, so it's got very good gold and silver content. Pyrite is a bit tired, so it's not changing on the small project, but on the bigger project it is changing in an important way.

Yeah, absolutely. Okay, thanks very much. That's, that's really helpful color. Thank you, Ugo, and thanks Benoit. Thanks overall. I'll stay off the line.

Thanks, Justin.

Thank you. Our next question comes from Mike Kozak with Cantor Fitzgerald. Your line is open.

Good morning. Morning Benoit and team. A few questions from me. First one, Q1, it was the fourth quarter in a row where unit costs at Zgounder on a per ton basis have trended down. I mean, a portion of that is obviously more and more open pit material, but I mean, they can settle in around CAD 80/ton in Q1. You were north of CAD 10/ton a few quarters ago. Is that CAD 80/ton a good number going forward? Do you think it's gonna continue trending down, or where do you expect to settle out?

I can comment a bit on the ounce unit cost. Our costs have been going down, and we're happy about that. Throughput has been going up and production has been stabilizing in the open pit and the underground. A lot of that unit cost saving comes from the underground unit cost per ton as well as the open pit unit cost per ton. We've also had gains in the plant as we process more throughput and stabilize their cyanide consumption. We've been winning on all fronts, including site services and surface and utilities. As we're towarding being more a mature operation, and we're happy to see that.

That being said, there is a lot of cost fluctuation at Zgounder based on the open pit strip ratio, as you can imagine. Depending on the sequencing, we have months. Now, this quarter strip ratio was around 9, which is quite exceptional. The overall strip ratio of the open pit gets better through the life of mine. Again, we've made that quite clear in our latest 43-101. It will increase slightly this year. Especially towards the end of the year, we'll have a bit higher strip ratio in the open pit, and I expect our strip ratio for the year to sit between 13 and 16.

We'll continue to improve our overall cost. Inherently, the open pit will be more expensive in terms of cost per ton because we'll converge more toward the 13 to 16 strip ratio as opposed to 9. Let's not forget underground, we need to develop new stopes. Now we have lower levels around 1925 that are operating, that costs are good. On the long term, the underground cost of the Zgounder mine will slowly creep up as we go deeper and deeper, which is also normal and captured in our projections.

Okay. Thank you. That's good color. Second, now that you're making so much money, what do you expect your average income tax expense rate to be this year?

Ugo?

Income tax rate. I think five years ago, the government of Morocco, when we were back at 20%, had put out a new law and said that it was going to get increased to 35%, being 2026 at 35%. During COVID, they added a 5% COVID tax, which got converted into a 5% solidarity tax, which is supposed to be temporary, okay. It's been three years now and going on a fourth year of that tax being in existence. We are one of 187 companies in Morocco that pay that tax rate. Everybody else that makes less than MAD 100 million of profit pays 20%.

We know there's the World Cup coming. I think the government, like all governments, needs money. More and more, we're starting to see companies like ourselves within the 127 that are saying, "Hey, 40% income tax is simply not competitive." I would expect that 27 moving on, at least that 5% falls away, and then we'll see what happens with the additional tax rate. Yeah, it's our biggest cost today.

Yeah. Got it. One more, if you don't mind. Cash obviously building at a fast pace. Do you have any options available to you to accelerate repayment of the remaining EBRD debt?

Yeah. We, if we wanna repay, like, all debt, we have a, there's prepayment penalties. We do have a slight out, is that we can do cash sweeps out of the country back to head office and we have a cash sweep of 30%. With that comes no prepayment. We have to do that at specific timings when we pay and when we repay capital in January and July. Assuming things continue like this, I think we're gonna be using that option to cash sweep money out of the country and then force a cash sweep and prepay some like that. That's the expectation. Capital cost cash has to keep going up. Assuming it does, I think that's an option we'll use.

Okay. Very good. That's helpful. That's it for me. I'll jump back in queue. Thanks.

Thank you. Our next question comes from Eric Winmill with Scotiabank. Your line is open.

Oh, hi everyone. Thanks for taking my question today. Just wanted to ask quickly about the tailings. I know you're increasing capacity there. Can you just remind us, how long that's gonna get you? How much runway you'll have once that expansion's done?

Sure. We, the first phase was obviously a short one to keep capital costs throughout the initial construction. Phase II is our biggest raise. We have, well, we have about 2.5 years of storage in it. Obviously, it went down because throughput went up quite a bit. We have over 2.5 years, after which we have another phase planned.

Okay, great. Thank you very much. Maybe just on the Boumadine, you're coming out with a new PEA, you said, sort of May, June or excuse me, June, July timeframe. Any views on CapEx there? Should we expect meaningful changes from the last study that you put out?

Well, Raph is with us today, and he's in charge of the team that's overseeing the Boumadine study, so I guess it's the right time to ask him.

In the PEA, we had a CapEx with a healthy contingency for that level of the study. At that point, as we're advancing through this updated PEA and also the feasibility study, we will have some extra costs as we define and detail the project, but we'll also reduce the contingency as the project is well-defined. Right now we said that we don't expect capital to go higher than the PEA or sit in the same range.

Okay, great. That's really helpful. Appreciate it. maybe just one more on Zgounder as well. You're looking to increase crushing capacity. there any updates in terms of, you know, ordering of long lead time items or critical path items we should be looking at or maybe updates on the status, please?

Well, the good news is we already have the process unit, the cone crusher, we have it. That's a relief. Once we decide to go ahead with that expansion, we're probably looking to a nine-month expansion. Yeah, it's something that can be done within, probably within a year. It's not really important 'cause in the meantime, we have the crushing contractor then bridge that gap.

Okay, fantastic. That's very helpful. I appreciate the added color. I'll hop back in the queue. Cheers.

Ladies and gentlemen, that concludes our Q&A period. I would now like to turn the call back over to Benoit for closing remarks.

Thank you, operator. Thank you for all the question. What is coming for us now, as I mentioned it, we'll have some exploration results coming in the next few weeks. We'll have a Boumadine exploration press release in the next week or two. We'll have the same as Zgounder. We also are looking at in-country consolidation of ground because Morocco is very interesting. It's got fantastic geology, and we have a first-mover advantage, and we are taking advantage of this. You can expect some, you know, more news from us. You know, we will be on the road for the coming two months meeting some of our shareholders in United States and in Europe.

As you're fully aware, we started trading one week ago on or 10 days ago on Nasdaq. It's going extremely well. We're getting a lot of positive feedback, so we're really pleased with the Nasdaq listing. Globally, and again, I will close on this, you know, Aya is a company that is in Morocco, focusing in Morocco, where the geology is exceptional. You can see it on our discovery cost. There were some slides that were put together by a competitor recently on discovery cost, we have the lowest discovery cost in our industry because of the geology. The jurisdiction is probably one of the best in the world with the permitting, with the employees, with the people.

You know, we are in a country that does not just tolerate mining, but in a country where mining is part of their strategic plan, they want it to be very successful. You have a, we have a team at Aya now, which has built many, many mines and has shown geological expertise. You have a very strong growth profile with Boumadine, you know, being developed and starting to be built in the next few quarters towards a 37 million oz of annual production of silver equivalent coming at Boumadine, which is just from only one structure. You have beautiful growth profile in the company. You have core assets with two districts, the Boumadine District and the Zgounder District.

You have a company that will spend $60 million in exploration, drilling, you know, over 200,000 m and over 230,000 m this year. Major geological upside, strong cash flow, great core assets in one of the best jurisdiction in the world. Look, we will be coming back to follow Morocco in the World Cup of soccer or what they call football, because they have an amazing team and that will be the topic of all the news flow coming out of Morocco for the next couple of months. Again, thank you so much for participating in this conference call. We look forward to seeing you at the Q2 call.

For many of you, we will be seeing you in all the conferences that are starting next week, in Vegas and continuing to London the week after and on and on for the rest till the Rick Rule conference in July in Boca Raton. We should take a few weeks off for the summer. Thank you very much. We'll see you in the coming weeks, otherwise, we'll see you at the Q2 conference call in August. Thank you.

Thank you for your participation. You may now disconnect. Everyone, have a great day.