Avino Silver & Gold Mines Ltd. (ASM:TSX.V; ASM:NYSE.MKT; GV6:FSE) announced its Q2/24 production results, and they were notable for "excellent silver recovery," reported Cantor Fitzgerald analyst Matthew O'Keefe in a July 18 research note.
"Avino is on track for production of 2,500,000–2,800,000 ounces of silver equivalent (2.5–2.8 Moz Ag eq) in 2024 from ore sourced from both the Avino mine and La Preciosa," O'Keefe wrote, "with the goal of increasing production to 7.5–9 Moz annually by 2028."
84% Potential Return
Cantor reiterated its CA$2.60 per share target price on Avino Silver & Gold Mines, trading at the time of the report at about CA$1.41 per share, noted the analyst.
The difference between these prices implies an 84% return for investors.
The Canadian producer remains a Buy.
First La Preciosa Ore Processed
O'Keefe discussed Avino's Q2/24 production numbers. Total production of 616,571 ounces of Ag eq missed Cantor's estimate of 679,100 ounces and was 2% lower year over year (YOY). Throughput dropped during the last two weeks of the quarter due to a cone crusher getting repaired, and this led to the decreased production outcome.
"A smaller crusher is being utilized to minimize downtime in the mill, and the expectation is to be back to full mill capacity soon," O'Keefe wrote.
Silver production, 292,946 ounces, however, was up 17% quarter over quarter and 26% YOY. The miner processed, through the Avino mill, the first material, about 10,000 tons worth, of the higher-grade surface stockpile at the company's adjacent development project, La Preciosa. This drove the boost in silver production and resulted in a sellable high-grade concentrate.
Production of gold (1,514 ounces), and copper, (1,305,549 pounds), were down QOQ, by 15% and 3%, respectively.
Update on Second Project
Avino Silver & Gold Mines already has the mining equipment it will need to start production at La Preciosa, reported O'Keefe.
The company is awaiting two required permits, which it expects to receive soon. One is an environmental permit. The other is a construction permit to build the portal and haulage ramp to access and mine fresh ore from La Preciosa's high-grade Gloria and Abundancia veins.
Capital costs for this project in 2024 are an estimated US$3–4 million.
| Want to be the first to know about interesting Gold, Silver and Base Metals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
Disclosures for Cantor Fitzgerald, Avino Silver & Gold Mines Ltd., July 18, 2024
Disclaimers The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. CFCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, CFCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to CFCC that is not herein. This report is provided, for informational purposes only, to institutional investor clients of CFCC, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, CFCC, a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald USA., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald USA.
Non US Broker Dealer 15a-6 disclosure: This report is being distributed by (CF Canada/CF Europe/CF Hong Kong) in the United States and is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who CFCC reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this report should effect transactions in securities discussed in this report through CFCC This report has been prepared in whole or in part by research analysts employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States. These non-US research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA’s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account.
Potential conflicts of interest The author of this report is compensated based in part on the overall revenues of CFCC, a portion of which are generated by investment banking activities. CFCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. CFCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although CFCC makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
Disclosures as of July 18, 2024 CFCC has provided investment banking services or received investment banking related compensation from Avino Silver & Gold Mines Ltd. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Avino Silver & Gold Mines Ltd. The analyst responsible for this report has visited the material operations of Avino Silver & Gold Mines Ltd. No payment or reimbursement was received for the related travel costs.
Analyst certification The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.
