10:59 AM EDT, 07/03/2024 (MT Newswires) -- Aya Gold & Silver ( AYASF ) said on Wednesday that it has completed the commissioning of its electrical line and started providing power to its Zgounder Silver Mine in Morocco with renewable energy.

The 20-year power purchase agreement with Nareva's Energie Eolienne du Maroc, and access to the national high-voltage grid, is projected to lower electricity unit costs by up to 15%.

Meanwhile, National Bank said Wednesday that the "Outperform" rating on Aya Gold & Silver ( AYASF ) and the $22 price target remains unchanged.

On impact, National said it reminds it of Aya's "favourable ESG backdrop" with associated cost savings, stable forecasting, and reduced exposure to volatile fuel pricing; plus incremental de-risking of Zgounder development adding to recent mill commissioning. And that the project is "on time, in line with company messaging". Overall, National ascribes a neutral bias and look to continued ramp-up de-risking.

The analysts reiterated that the company is a top precious metals pick, supported by net asset value expansion from production growth at the Zgounder mine, peaking at 9 million ounces in 2028, +4x the fiscal 2023 midpoint of near 2 million ounces of silver. It is also supported by high-grade resource accretion at Zgounder with an expanded 2022 exploration program, and regional potential; and by a "promising pipeline prospect" in Boumadine with ongoing exploration. Also, the bank noted that Aya Gold & Silver ( AYASF ) is the only pure-play silver producer in its coverage.

Price: 14.22, Change: +0.74, Percent Change: +5.49