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Avino Silver (ASM) Q4 Earnings Beat, Revenues Improve Y/Y

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Avino Silver & Gold Mines Ltd. (ASM - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 5 cents that beat the Zacks Consensus Estimate of 3 cents per share. The company had reported break-even earnings per share in the prior-year quarter.

Including one-time items, the company reported earnings of 3 cents per share in the fourth quarter against a loss per share of 2 cents in the year-ago quarter.

Avino Silver’s revenues skyrocketed 562% year over year to $9.3 million in the quarter under review — the highest recorded revenues since the fourth quarter of 2019. However, the top line missed the Zacks Consensus Estimate of $10 million.

Avino Silver reported consolidation production of 541,432 silver equivalent ounces in the fourth quarter of 2021. This comprised 163,933 ounces of silver, 2,158 ounces of gold, and 1,128,728 pounds of copper.

Avino Silver Price, Consensus and EPS Surprise Avino Silver Price, Consensus and EPS Surprise

Avino Silver price-consensus-eps-surprise-chart | Avino Silver Quote

Operational Update

The company recorded cash costs of $9.57 per silver equivalent payable ounce, indicating a slump of 32% from the year-ago quarter. Consolidated all-in sustaining costs (“AISC”) of $17.24 per silver payable equivalent ounce came in 76% lower than the prior-year quarter.

Avino Silver reported a mine-operating profit of $4.4 million in the quarter, a turnaround from a loss of $1.2 million in the prior-year quarter. EBITDA was $4.8 million against a loss of $2.3 million in the year-ago quarter.

Financial Position

Avino Silver ended 2021 with $24.6 million of cash in hand, up from the $11.7 million at the prior-year quarter’s end. Capital expenditures for 2021 were $3.2 million, up from $2.2 million in the prior year. During the year, ASM fully repaid its $10 million term facility and is now debt free.

The company has closed the previously announced acquisition of the La Preciosa silver project from Coeur Mining, Inc. (CDE - Free Report) . La Preciosa is a development stage mineral property, hosting one of the largest undeveloped primary silver resources in Mexico. It is located adjacent to Avino’s existing operations at the Avino Property in Durango, Mexico.

The La Preciosa buyout represents a major milestone for ASM as it advances its growth strategy to become an intermediate silver producer with a large silver resource base.

As a result of the transaction, Coeur acquired the ASM Shares, representing approximately 12% of the total issued and outstanding shares of the company and the ASM Warrants on a non-diluted basis, and approximately 16% of the total issued and outstanding shares of the company, assuming the exercise of the ASM Warrants.

Price Performance

Shares of the company have fallen 26.7% over the past year compared with the industry’s decline of 16.6%.

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Zacks Rank & Stocks to Consider

Avino Silver currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) and AdvanSix Inc. (ASIX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mosaic has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised upward by 22.2% in the past 60 days.

Mosaic beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 87.3% in a year.

AdvanSix has a projected earnings growth rate of 30.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 25% in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 23.6%. ASIX has surged 57.3% in a year.


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