Proactiveinvestors Australia Avino Proactiveinvestors Australia Avino RSS feed en Sat, 20 Jul 2019 05:11:30 +1000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Avino Silver & Gold Mines: undervalued, with near-term production growth ]]> Avino Silver & Gold Mines (CVE:ASM) is an underfollowed and undervalued silver-gold producer with immediate term production growth at a low cost, according to a Cantor Fitzgerald research note released today.

Analyst Rob Chang initiated coverage of the company with a buy recommendation and a $3.15 per share target price. 

Chang said immediate growth comes from the re-opening of the Avino mine in Mexico, while longer term growth is due via the company's Bralorne mine acquisition and the processing of an on-site tailings stockpile.

The company's current production hails from the San Gonzalo mine in Durango, Mexico, which began operations in October 2012. Additional production comes from historic marginal stockpiles, with nearly 300,000 silver equivalent ounces produced from the site in the third quarter.

Cantor Fitzgerald also noted the company's large production ramp-up, given the announcement of the re-opening of the Avino mine and the start of processing on September 1st. The Avino mine is located approximately 2 km from the San Gonzalo mine.

"We expect a meaningful production boost in light of the 1,000 TPD circuit #3 which was recently commissioned," Chang wrote in the report released to investors.

"The ability to re-start production quickly has set Avino apart from its peers and can be directly attributed to the existing milling facilities on the property left from past mining," he added.

The Avino mine has a history of strong production. In the three years prior to closing down due to low commodity prices in 2001, it consistently produced nearly 2 million silver equivalent ounces. The mine was in continuous production from 1974 to 2001.

Additional growth is also on the horizon with the Bralorne mine in British Columbia, given that it is a producing gold asset with exploration upside. The 2,490 hectare property is located 240 km northeast of Vancouver, and covers three historic gold mines that produced 4.1 million ounces of gold between 1928-1971. 

"With the San Gonzalo mine already in operation, the Avino mine now in its commissioning stage, the Bralorne acquisition now completed, and the low capex tailings heap leach asset showing excellent economics, we forecast notable production growth from Avino," Cantor's Chang concluded.

Tue, 16 Dec 2014 15:26:00 +1100
<![CDATA[News - Avino's production profile expected to increase on the back of copper ore, says H.C. Wainwright ]]> Avino Silver and Gold Mines (CVE:ASM) rallied almost 10 percent Wednesday after the company received a bullish rating from H.C. Wainwright analysts.

The analysts, Heiko Ihle and Jake Sekelsky, said fresh ore is now being processed from the Avino Mine, and reiterated their buy rating on the company and $2.70 price target.

Shares of Avino climbed 9.4 percent to C$1.75 in Toronto on Wednesday.

The report comes after the precious metals miner announced its third quarter production figures on Tuesday, with overall silver production for the period reaching 217,024 ounces, while gold output was 1,105 ounces.

It also produced 34,919 kilograms of copper, for a total of 298,381 ounces of silver equivalent. Notably, the analysts said that copper production from the Avino Mine reached a payable level for the first time, adding a small amount of silver equivalent ounces.

In the second quarter, the company produced 223,183 ounces of silver and 1,157 ounces of gold for a total of 295,531 silver equivalent ounces.

H.C. Wainwright noted that though production from the San Gonzalo mine decreased slightly, it still believes the future growth of the company should be realized at this historic site.

At the Avino Mine, the company began processing fresh material at the beginning of September, as opposed to historic stockpiles, which have somewhat lower grades. During the third quarter, the mine produced 67,370 silver equivalent ounces, up from 61,692 ounces in the previous period.

"Given the presence of a fair amount of copper in the Avino ore, we believe the inclusion of copper credits may add to overall production going forward," wrote Ihle and Sekelsky in their note.

Meanwhile, expansion plans for the Avino Mine remain on track, with expectations to be completed sometime this quarter, which would essentially triple Avino's current milling capacity. H.C. Wainwright said it does not expect any delays with regards to this project, which would serve as a catalyst for shares.

It is anticipated the expansion will bring up capacity to 1,500 tonnes per day (tpd) from the current 500 tpd.

Wed, 15 Oct 2014 13:31:00 +1100