H.C. Wainwright maintained a positive outlook on Avino Silver & Gold (NYSE:ASM) with a reiterated Buy rating and a price target of $1.50. The endorsement follows Avino's announcement of its third-quarter production results on October 17, 2024, which showed a substantial increase in output.
During Q3, Avino Silver & Gold produced a total of 670,887 silver equivalent ounces (SEOs), marking a 13% year-over-year increase. The company's silver production alone rose to 281,831 ounces, up 19% from the previous year. However, gold production experienced a decrease, falling 22% year-over-year to 1,625 ounces. Notably, copper production for the quarter saw a significant jump, reaching 1.8 million pounds, a 55% increase compared to the same period last year.
The firm also reported improvements in the grades of silver and copper, which saw year-over-year increases of 13% and 37%, respectively. This contrasted with a 20% decline in gold grades. Despite this, Avino is expected to meet its annual production guidance, which ranges between 2.5 million and 2.8 million SEOs. This forecast is supported by higher grades and recovery rates.
Avino appears to be well-positioned for substantial long-term growth. This potential is further bolstered by the current favorable metal pricing, which could aid the company's performance. The reaffirmed Buy rating and price target reflect a steady confidence in Avino's prospects amidst its latest production achievements.
Avino Silver & Gold has announced robust growth in its production and financial performance. The company reported a 26% surge in silver production in the second quarter, reaching record revenues of $14.8 million and a gross profit of $4.7 million. Additionally, in the third quarter, Avino showed a 13% year-over-year growth in silver equivalent ounces produced, reaching a total of 670,887 SEOs, and a 19% increase in silver production itself.
Despite a decrease in gold production, Avino has made significant improvements in both silver and copper grades, which rose by 13% and 37% year-over-year respectively. The company also experienced a 55% year-over-year increase in copper production, amounting to 1.8 million pounds. These enhancements are expected to contribute positively to Avino's production efficiency and overall output.
Looking forward, Avino is aiming to expand its 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 growth. H.C. Wainwright maintained a Buy rating on Avino, emphasizing the company's strong positioning for long-term growth, likely to be bolstered by advantageous metal pricing in the market. These are among the recent developments for Avino Silver & Gold.
InvestingPro Insights
Avino Silver & Gold's (NYSE:ASM) recent production results align with several key metrics and insights from InvestingPro. The company's revenue growth of 21.53% over the last twelve months and an impressive 60.41% in the most recent quarter reflect the substantial increase in output reported in Q3 2024. This growth trajectory is further supported by an InvestingPro Tip indicating that net income is expected to grow this year.
The company's strong performance is also mirrored in its stock price movements. InvestingPro data shows a remarkable 139.61% price total return over the past year, with a 68% return in just the last six months. This aligns with the InvestingPro Tip highlighting ASM's high return over the last year and its trading near its 52-week high.
Despite these positive indicators, investors should note that ASM is trading at a high P/E ratio of 87.01, which the InvestingPro Tips flag as a high earnings multiple. This valuation suggests that market expectations for future growth are already quite high.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Avino Silver & Gold, providing a more comprehensive view of the company's financial health and market position.
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