Avino Silver & Gold Mines Ltd (ASM) Q2 2024 Earnings Call Highlights: Record Revenue and ...

GuruFocus News
3 min read

In This Article:

  • Revenue: $14.8 million in Q2 2024, a record for the company.

  • Gross Profit: $4.7 million, with a cash basis gross profit of $5.9 million and a margin of almost 40%.

  • Net Income: $1.2 million or $0.01 per share.

  • Adjusted Earnings: $4.3 million or $0.03 per share.

  • Operating Cash Flow: $3.6 million or $0.03 per share before working capital movements.

  • Cash on Hand: $5.3 million at the end of the quarter.

  • Working Capital: Improved to $13.6 million, three times higher than the previous year.

  • EBITDA: $5.1 million for the first half of 2024.

  • Cash Flow from Operations: $5.2 million before working capital movements for the first half of 2024.

  • Cash Cost per Ounce: $16.29 for Q2 2024.

  • All-in Sustaining Cash Cost per Ounce: $22.74 for Q2 2024.

  • Cash Cost per Tonne Processed: $66.79 per ton for Q2 2024.

  • All-in Sustaining Cash Cost per Tonne Processed: $92.31 for Q2 2024.

Release Date: August 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Avino Silver & Gold Mines Ltd (ASM) reported a 26% increase in silver production compared to Q2 2023, with silver equivalent production reaching 617,000 ounces.

  • The company achieved record quarterly revenue of $14.8 million and a gross profit of $4.7 million, with a cash operating margin of almost 40%.

  • ASM's working capital position improved significantly, with a balance of $13.6 million at the end of the quarter, three times higher than the previous year.

  • The processing of La Preciosa surface stockpile material exceeded expectations, contributing to the increased silver production.

  • ASM's five-year growth plan aims to increase production levels significantly, targeting 8 million to 10 million ounces of silver equivalent by 2029.

Negative Points

  • The last two weeks of production in the quarter were impacted by repairs on a cone crusher, leading to reduced mill throughput.

  • Cost per ounce figures increased slightly from Q1, with cash costs per ounce at $16.29 and all-in sustaining costs at $22.74, indicating room for improvement.

  • The Mexican peso's strength in early 2024 impacted the company's cost structure, although recent weakening may provide some relief.

  • Lower ounces sold in Q2 compared to Q1 affected cash cost and all-in cash cost figures.

  • The company is awaiting permits for La Preciosa, which are necessary to commence underground mining and could impact future production timelines.

Q & A Highlights

Q: You mentioned processing 10,000 tonnes of stockpiled material at La Preciosa. Will this continue in the second half, and how much stockpile remains? A: Yes, processing will continue in the second half, with about 5,000 tonnes left. - Peter Latta, VP of Technical Services

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