Aya Gold & Silver Rallies on Strong Profit, but Valuation Gap Widens

What happened

Aya Gold & Silver (TSX:AYA) closed at CA$35.95 on Friday, down about 5% over the past week. The company reported Q2 net income of US$34.6m on revenue of US$96.8m, versus US$8.8m and US$38.6m a year earlier. Silver-equivalent production rose 61% year over year to 1.7 million ounces. Management confirmed 2026 production guidance.

Why it matters

Despite strong earnings, the stock trades at a high P/E of 33.1x and a discounted cash flow reference of about CA$3 per share, signaling near-term valuation risk. Longer-term forecasts call for declining earnings, and execution risks remain at Zgounder and Boumadine, along with Morocco concentration.