On Thursday, Avino Silver & Gold (NYSE:ASM) received an updated stock price target from H.C. Wainwright, which was increased to $1.80 from $1.50, while the firm maintained a Buy rating on the stock. The change in price target follows a strong financial performance by the mining company in the recent quarter.
Avino Silver & Gold reported $14.6 million in revenue, resulting in a net income of $1.2 million, or $0.01 per share. These results mark a significant improvement over the third quarter of 2023, when the company saw $12.3 million in revenue and a net loss of $0.8 million, or ($0.01) per share. The year-over-year revenue increase of 19% was primarily due to higher average realized prices for metals.
The company recognized an average silver price of $29.17 per ounce, a 25% increase from the previous year, and an average gold price of $2,445 per ounce, up by 27% year over year. Additionally, copper prices rose to $9,154 per tonne, representing a 9% increase. Despite these gains, there was a 3% year-over-year decrease in payable Silver Equivalent Ounces sold.
Cost of sales for Avino Silver & Gold decreased by 11% compared to the same period last year, mainly due to an 11% depreciation of the Mexican Peso against the U.S. dollar. This currency fluctuation positively impacted the company's expenses.
Looking forward, H.C. Wainwright expects Avino Silver & Gold to meet its production forecast of 2.5 million to 2.8 million Silver Equivalent Ounces. The firm believes the company is well-positioned to benefit from the weaker peso in the face of rising commodity prices, leading to the decision to raise the price target and reiterate the Buy rating.
In other recent news, Avino Silver & Gold Mines has reported robust growth in its third-quarter production results, with a 13% year-over-year increase in silver equivalent ounces (SEOs) produced, totaling 670,887 SEOs. The firm's silver production alone rose to 281,831 ounces, up 19% from the previous year.
Copper production also saw a significant jump, reaching 1.8 million pounds, a 55% increase compared to the same period last year. However, gold production experienced a decrease, falling 22% year-over-year to 1,625 ounces.
The company reported a 26% surge in silver production in the second quarter, resulting in record revenues of $14.8 million and a gross profit of $4.7 million. Avino's growth plan aims to expand silver equivalent production from 2.5 million to 2.8 million ounces in 2024 to 8-10 million ounces by 2029, with the La Preciosa project playing a key role in this expansion. These are among the recent developments for Avino Silver & Gold Mines.
InvestingPro Insights
To complement the positive outlook presented by H.C. Wainwright, recent data from InvestingPro provides additional context for Avino Silver & Gold's (ASM) performance. The company's revenue growth of 18.08% over the last twelve months aligns with the strong financial results mentioned in the article. This growth trend is expected to continue, as one InvestingPro Tip suggests that analysts anticipate sales growth in the current year.
Despite the recent stock price decline of 11.29% over the past week, ASM has shown impressive returns of 133.55% over the last year and 26.15% over the past six months. These figures underscore the company's strong market performance, which may be attributed to the improved financial results and higher metal prices discussed in the article.
It's worth noting that ASM operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating a solid financial position. This financial stability could support the company's ability to capitalize on favorable market conditions and potentially meet the production forecast mentioned by H.C. Wainwright.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for ASM, providing a deeper understanding of the company's financial health and market position.
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