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.