Avino Silver (ASM) Q1 Earnings Beat Estimates, Revenues Up

Avino Silver & Gold Mines Ltd. ASM reported earnings per share of 2 cents for first-quarter 2024, which marked a 100% improvement from 1 cent reported in the first quarter of 2023 attributed to higher gold prices and lower costs. The Zacks Consensus Estimate was for break-even earnings.

Including one-time items, the company reported break-even earnings per share.

Avino Silver’s revenues rose 26% year over year to $12.4 million owing to higher gold and silver prices. The top line beat the Zacks Consensus Estimate of $11 million.

Avino Silver Price, Consensus and EPS Surprise


Avino Silver Price, Consensus and EPS Surprise

Avino Silver price-consensus-eps-surprise-chart | Avino Silver Quote


Operational Update

The company recorded cash costs of $14.89 per silver equivalent payable ounce, indicating a 5% increase from the year-ago quarter. Consolidated all-in sustaining costs were $20.23 per silver payable equivalent ounce compared with $20.17 in the first quarter of 2023.

Avino Silver reported a mine-operating profit of $2.3 million, up 26% from the $1.9 million reported in the year-ago quarter. EBITDA was $1.7 million, which was 499% higher than $0.3 million in the year-ago quarter.

Financial Position

Avino Silver ended the first quarter with $3.47 million of cash in hand, higher than the $2.7 million held at the end of the first quarter of 2023. Cash provided by operating activities was $2.35 million compared with $0.4 million in the year-ago quarter.

Production Update

Avino Silver reported consolidation production of 629,302 silver equivalent ounces, which was down 7% year over year. This comprised 250,642 ounces of silver, 1,778 ounces of gold and 1,347,110 pounds of copper. While silver production increased 7%, gold output was down 22% and copper production declined 4%.

Update on La Preciosa

On Feb 28, 2024, Avino Silver provided an update on the recently completed and ongoing work at La Preciosa. ASM already has the mining equipment to start operations in La Preciosa. The company is dedicated to conducting La Preciosa with minimal environmental impact and at a low cost.

Avino Silver has applied for an environmental permit from the authorities. A new permission will be submitted right after receiving the Environmental permit, which is required to begin construction of the portal, haulage ramp and mining of the Gloria and Abundancia veins.

At La Preciosa, capital for 2024 is estimated between $3 million and $4 million, which will cover surface work and equipment procurement for the Gloria and Abundancia Veins' first phase of mine development. The addition of La Preciosa's mineral resource inventory significantly enhanced ASM's consolidated NI 43-101 mineral resources, which currently comprise 371 million silver equivalent ounces.

Guidance for 2024

For 2024, the company expects output from both the Avino Mine and stockpiles from La Preciosa to be in the range of 700,000 - 750,000 tons for mill processing. Production is expected between 2.5 million and 2.8 million silver equivalent ounces.

Price Performance

Shares of the company have gained 11.5% over the past year compared with the industry’s 31.6% growth.

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Image Source: Zacks Investment Research

Zacks Rank

Avino Silver currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ASM's Peers Who Delivered Earnings Beat in Q1

Fortuna Silver Mines Inc. FSM reported first-quarter adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 3 cents. The bottom line marked an 80% surge year over year attributed to higher gold sales volume and improved gold prices.

Fortuna Silver’s revenues increased 28% year over year to $225 million. Gold equivalent production increased 19.6% year over year to 112,543 ounces.

Pan American Silver Corp. PAAS reported adjusted earnings per share of 1 cent for first-quarter 2024, which beat the Zacks Consensus Estimate of a loss of 6 cents per share. The figure marked a 90% plunge from adjusted earnings per share of 10 cents in the year-ago quarter mainly due to higher production costs and royalty charges.

Pan American Silver’s revenues surged 54% year over year to $601 million. This surge was primarily fueled by a higher volume of metal sold, attributable to the contribution of newly acquired mines (Jacobina, El Peñon, Minera Florida and Cerro Moro), obtained through the company's March 2023 acquisition of Yamana Gold Inc. The uptick in gold prices also aided revenue growth.

Hecla Mining HL reported earnings per share of 1 cent in the first quarter, beating the Zacks Consensus Estimate of a loss of 2 cents per share. The bottom-line figure was in line with the year-ago quarter.

Hecla Mining witnessed a 5% decline in revenues to $189.5 million, which missed the consensus estimate of $190 million. Hecla Mining produced 4.2 million ounces of silver, higher than the 4 million produced in the first quarter of 2023.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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