On Thursday, H.C. Wainwright adjusted its price target for Avino Silver & Gold (NYSE:ASM), increasing it to $1.60 from the previous $1.50, while keeping a Buy rating on the stock. This revision follows the mining company's announcement of its first-quarter production numbers for 2024.
Avino Silver & Gold reported a production of 629,302 silver equivalent ounces (SEOs) in the first quarter, marking a year-over-year decrease of 7%, but a quarter-over-quarter increase of 13%. The overall mill throughput for the period was 169,595 tonnes, showing a year-over-year increase of 6% and an 18% rise from the previous quarter.
Despite a 7% year-over-year increase in silver production, totaling 250,642 ounces, the company experienced a 22% decline in gold production, which amounted to 1,778 ounces. The drop in gold production was primarily due to a lower average gold feed grade, which decreased by 19% year-over-year to 0.47 grams per tonne.
The firm also reported on its operational efficiencies, which led to a quarter-over-quarter production growth of 12% for silver and 22% for gold. Copper production was noted at 1.3 million pounds, down 4% from the previous year but up 2% from the last quarter.
The analyst from H.C. Wainwright cited these production figures and efficiency improvements as the basis for the reiteration of the Buy rating and the updated price target.
InvestingPro Insights
Following H.C. Wainwright's revised price target on Avino Silver & Gold, current metrics from InvestingPro provide additional context to investors. The company is expected to see net income growth and sales growth in the current year, aligning with the analyst's positive outlook. With a P/E ratio of 59.16, Avino is trading at a high earnings multiple, indicating that investors may be expecting high future growth. Meanwhile, the recent stock price performance has been notable, with a strong return of 29.67% over the last month and an impressive 63.86% over the last three months.
InvestingPro Tips suggest that despite recent volatility, analysts remain confident in the company's profitability for the year, a sentiment supported by a solid performance over the last twelve months. However, the company does operate with a moderate level of debt and is trading at high EBIT and EBITDA valuation multiples, which could be points of consideration for risk-aware investors. Moreover, it's important to note that Avino Silver & Gold does not pay a dividend, which might influence the investment strategy for those seeking regular income.
For investors looking for more comprehensive analysis and additional tips, there are 12 more InvestingPro Tips available for Avino Silver & Gold at https://www.investing.com/pro/ASM. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and enrich your investment strategy with expert insights.
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