This Canadian firm is well on its way to achieving full-year 2024 production guidance, noted a Cantor Fitzgerald report.
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."
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.
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.
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.
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Disclosures for Cantor Fitzgerald, Avino Silver & Gold Mines Ltd., July 18, 2024
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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.
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