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Aya Gold & Silver (TSX: AYA) is a Montreal-based company that is engaged in the acquisition, exploration, evaluation and development of precious metals properties in Morocco. Today I want to discuss recent fluctuations in this gold and silver stock. Additionally, we will determine if Aya Gold & Silver is worth buying on the downside. Let’s go.
Why This Silver Stock Has Been Beaten Lately
This gold stock was down 2.73% by mid-morning on January 27. Its shares fell 5.8% during the week. Aya Gold & Silver has been one of the best performing precious metals stocks over the past half-decade. This makes it a great alternative to large companies like barrick Where Yamana. Shares of this silver stock have soared more than 1,400% over the past five years.
Investors can expect to see Aya Gold & Silver’s final batch of 2021 results in March 2022. In Q3 2021, the company saw its silver production climb 198% year-over-year to reach 338,624 oz. Meanwhile, silver sales jumped 396% to 403,950 ounces. Revenue increased 350% over the previous year to $7.8 million. Cash flow from operations reached $5.9 million. This is an improvement from the negative cash flow from operations the previous year.
It raised its production forecast to 1.55 million ounces of silver after its strong third quarter. Meanwhile, it strengthened its liquidity position to $88 million of cash, cash equivalents and restricted cash.
Should investors trust silver and gold in 2022?
End of 2017, Bitcoin and the cryptocurrency space hit a wall after a year-long bull market put the nascent sector on the map. At the time, I discussed whether gold and silver would benefit from the crypto correction. Investors may be asking the same question today.
The crypto has come under downward pressure as North American central banks target rate hikes. However, the Bank of Canada (BoC) and the US Federal Reserve chose to kick the road after their respective January 26 meetings. This has led to a boon for stocks and crypto. Meanwhile, the spot price of gold and silver suffered.
Investors may want to consider jumping on lower silver stocks like Aya. Central banks will continue to feel pressure to change rates as inflation hits consumers. Short-term momentum for equities may be short-lived after the temporarily dovish move in late January.
What does this stock of silver look like today?
Shares of this silver stock were up 130% year-over-year by late morning Jan. 27. Aya Gold & Silver is trading in favorable value territory relative to its industry peers at the time of this writing. Investors should continue to be drawn to one of the best performing precious metals of recent years. Silver looks extremely undervalued at the time of this writing, even relative to gold. I’m looking to recover this silver stock at the end of January after its recent decline.
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