Avino Silver & Gold ((TSE:ASM)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Avino Silver & Gold’s recent earnings call painted a picture of strong financial and operational performance, with significant revenue increases and improved cost metrics. The company also made notable progress in strategic projects like La Preciosa. Despite minor setbacks in silver production and potential foreign exchange risks, the overall sentiment was overwhelmingly positive, reflecting the company’s robust position in the market.
Record Financial Performance
Avino Silver & Gold reported a remarkable financial performance with revenues reaching $21.8 million, marking a 47% increase from Q2 2024. The company achieved a gross profit margin of 45%, inclusive of noncash depreciation and depletion, and net income rose significantly to $2.9 million from $1.2 million in the previous year.
Production Milestones
The company achieved record mill throughput of 190,987 tonnes, a 36% increase from Q2 2024. Gold and copper production saw significant increases of 17% and 12%, respectively, alongside improved gold recoveries, showcasing Avino’s operational efficiency and capacity expansion.
Strong Balance Sheet
Avino ended the quarter with over $37 million in cash and working capital exceeding $40 million. The cash position further increased to approximately $48 million subsequent to the quarter’s end, underscoring the company’s strong financial health.
Cost Efficiency
Avino reported a cash cost per silver equivalent ounce of $15.11, a 7% decrease from Q2 2024. The all-in sustaining cash cost was just under $21, reflecting an 8% reduction, positioning Avino in the lower quartile among junior producers.
Progress at La Preciosa
The development of La Preciosa is progressing well, with the San Fernando main access decline under construction and site services installed. This marks significant progress in one of Avino’s key strategic projects.
Slight Decrease in Silver Production
Silver production for the quarter was just under 284,000 ounces, representing a slight decrease of 3% compared to Q2 2024. This was attributed to lower feed grade from mine sequencing, a minor setback amidst otherwise strong production metrics.
Foreign Exchange Risks
Avino faces potential impacts from tariffs and currency fluctuations between the USD and Mexican peso. However, current hedging strategies are in place to offset some of these risks, ensuring stability in financial operations.
Forward-Looking Guidance
Avino’s forward-looking guidance remains robust, with expectations of achieving 2.5 to 2.8 million ounces of silver equivalent production in 2025. This is supported by ongoing development at La Preciosa and operational improvements. The management emphasized their focus on organic growth and maintaining capital discipline, with no immediate plans for external acquisitions.
In summary, Avino Silver & Gold’s earnings call highlighted a strong positive sentiment, driven by impressive financial performance and strategic advancements. Despite minor challenges, the company is well-positioned for continued growth and success in the coming year.