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Avino Silver & Gold: A Better Year Ahead

Taylor Dart profile picture
Taylor Dart


  • Avino Silver & Gold released its Q4 and FY2021 results last month, reporting quarterly production of ~541,400 silver-equivalent ounces, a significant improvement now that operations are ramping up.
  • While this still led to a significant decline in production relative to FY2019 levels, the company appears confident that it will produce more than 2.2 million silver-equivalent ounces this year.
  • This would represent a return to pre-COVID-19 levels, and the higher silver price should help to offset any margin softness related to sector-wide inflationary pressures.
  • After a 25% rally off its lows, I do not see Avino near a low-risk buy point, but I continue to see the stock as a Speculative Buy at US$0.75 as a trading vehicle.
Miners in the Potosi Silver Mine

SL_Photography/iStock Editorial via Getty Images

The Q4 and FY2021 Earnings Season for the Silver Miners Index (SIL) has finally ended, and one of the most recent companies to report its results was Avino Silver & Gold (NYSE:ASM). Given that operations were shuttered

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Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough You can access more in-depth research, my current portfolios, my top-12 miner rankings, GDX buy/sell signals, new positions I am entering/exiting, plus proprietary sentiment indicators updated weekly for gold miners in my newsletter below. Returns Link: https://imgur.com/a/sreY6SzSubscription LinksMonthly: https://buy.stripe.com/7sI14d4b92vFdUc15cAnnual: https://buy.stripe.com/4gw28h0YXeen7vObJP - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GLDD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (3)

Akesha profile picture
The future prospects of ASM are excellent according to Investor Observers and Simply Wall St. Even the most pessimistic analyst has the stock price rising over 50% in the next 12 months. That forecast assumes the price of silver to remain very low. The risks that ASM endured are mostly tailwinds now. The number #1 risk is still jurisdiction with Mexico being difficult at times. My personal comment is that Mexico is applying stricter environmental standards to prevent mining companies from taking ores and leaving behind land devastation. I think that this is wholly positive. This forces mining concerns to be more efficient. It may raise initial costs and spur future smoother operations and profitability. ASM is medium risk with explosive potential. Not a good candidate for short term trading unless you are an expert. A suggestion, not investment advice, a safe play would be a longer term buy and hold with an active stop loss in place. If things suddenly go sideways you need protection. I am personally appalled by how many investors are willing to place 100% of their investment on contentious risk of losing it all without protection. From 2012 stock market investors have become lazy thinking that buying the dip is all you need for a successful investment plan.
The rules have changed and few are noticing. ASM is currently 50% undervalued. Along with PMNXF are my favorite 2 picks in the mining sector.
Good job on the numbers TD. You may want to take a closer look at LA Preciosa. A very strategic asset for Avino and one for which Coeur paid $384MM. For a proven operator with a mill next door it should have at least a purchase price valuation. I think it’s worth $100MM.
Taylor Dart profile picture
Hi Trey,

Nice to hear from you as always, and thanks for sharing your view. I'm still on the fence until we see an economic study since I think it's a little tight at conservative metals prices which is what Avino should be using ($22.0/oz silver), but I agree that it's worth what they paid, they certainly got a much better deal than Coeur.
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