11:23 AM EST, 12/30/2024 (MT Newswires) -- Aya Gold & Silver ( AYASF ) on Monday said it has begin commercial production at the new processing plant in the Zgounder mine in Morocco.

The company said the new Zgounder mill first started processing ore on Nov. 4 and the first silver pour from the plant was achieved Nov. 27.

Commercial production was reached Dec. 29, less than two months after the mill began processing the first ore.

"This transformative milestone reflects the dedication and expertise of our employees and contractors who built, tested, ramped up and are now processing ore from both Zgounder's open-pit and underground operations," said Benoit La Salle, Aya's president and CEO.

The company said it continues to ramp up production to reach nameplate in the first quarter of 2025.

Aya kept its Outperform rating and C$21.75 price target at National Bank following the news.

The bank said the price target was based on 1.50 times net asset value per share (NAVPS).

National Bank said its thesis is supported by Aya's NAV expansion from production growth at the Zgounder mine, and high-grade resource accretion at Zgounder, a "promising pipeline prospect" in Boumadine, and the company's status as the only pure-play silver producer in its coverage.

Aya's share price fell 3.3% at last look to $10.53 on the TSX.

Price: 10.56, Change: -0.33, Percent Change: -3.03