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 the recent fluctuations for this gold and silver stock. Moreover, we’ll determine whether Aya Gold & Silver is worth buying on the dip. Let’s jump in.
Why this silver stock has been battered recently
This gold stock was down 2.73% in mid-morning trading on January 27. Its shares have dropped 5.8% in the week-over-week period. Aya Gold & Silver has been one of the best-performing precious metals equities over the last half decade. That makes it a great alternative over larger companies like Barrick or Yamana. Shares of this silver stock have climbed over 1,400% over the past five years.
Investors can expect to see Aya Gold & Silver’s final batch of 2021 earnings in March 2022. In Q3 2021, the company saw silver production climb 198% year over year to 338,624 ounces. Meanwhile, silver sales erupted by 396% to 403,950 ounces. Revenues rose 350% from the prior year to $7.8 million. Operating cash flow rose to $5.9 million. That was an improvement from a negative operating cash flow in the previous year.
It increased its production guidance to 1.55 million ounces of silver after its very 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?
Back in late 2017, Bitcoin and the cryptocurrency space hit a wall after a year-long bull market had put the fledgling sector on the map. At the time, I’d discussed whether gold and silver would benefit from the crypto correction. Investors may be asking themselves that same question today.
Crypto has experienced downward pressure, as central banks in North America set their sights on rate hikes. However, both the Bank of Canada (BoC) and the United States Federal Reserve opted to kick the can down the road after their respective January 26th meetings. This has led to a boon for equities and crypto. Meanwhile, the spot price of gold and silver has suffered.
Investors may want to consider jumping on the dip in silver stocks like Aya. Central banks will continue to feel pressure to move on rates as inflation slams consumers. The near-term momentum for equities may be short-lived after the temporarily dovish move in late January.
How does this silver stock look today?
Shares of this silver stock have climbed 130% year over year as of late-morning trading on January 27. Aya Gold & Silver is trading in favourable value territory relative to its industry peers at the time of this writing. Investors should continue to be attracted to one of the best precious metal performers in recent years. Silver looks tremendously undervalued at the time of this writing, even compared to gold. I’m looking to snatch up this silver stock in late January after its recent dip.
