Avino Silver & Gold Mines Ltd (ASM) Q4 2024 Earnings Call Highlights: Record Revenue and ...

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Thu, Mar 13, 2025, 1:07 AM 4 min read

Revenue: Record $24.4 million in Q4 2024; $66.2 million for the full year, a 51% increase from 2023.
Gross Profit Margin: 43% in Q4 2024; 49% on a cash basis.
Free Cash Flow: $14.1 million in Q4 2024, translating to $0.10 per share.
Net Income: $8.1 million for the full year 2024, or $0.06 per share.
Adjusted Earnings: $21.3 million for the full year 2024, or $0.15 per share.
All-In Sustaining Cash Cost: $18.62 per silver equivalent ounce in Q4 2024; $20.57 for the full year, a 6% decrease from 2023.
Silver Equivalent Production: 736,000 ounces in Q4 2024, a 32% increase from Q4 2023; 2.6 million ounces for the full year, a 10% increase from 2023.
Gold Production: 2,560 ounces in Q4 2024, a 76% increase from Q4 2023.
Cash Position: $27.3 million at the end of 2024, up from under $8 million at the end of Q3 2024.
Capital Expenditures: $1.5 million in Q4 2024; $6.6 million for the full year.
Cash Cost per Ounce: $13.88 in Q4 2024, an 8% decrease from Q4 2023.
Cost per Ton Processed: $51.11 in Q4 2024, a 17% reduction from Q4 2023.

Warning! GuruFocus has detected 5 Warning Sign with ASM.

Release Date: March 12, 2025

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

Positive Points

Avino Silver & Gold Mines Ltd (ASM) achieved record financial results in 2024, with significant growth across key financial metrics.
The company posted record revenues of $66.2 million for the year, a 51% increase from 2023.
Silver equivalent production increased by 10% year-over-year, driven by improved copper and silver grades and higher mill feed.
The company reported a strong balance sheet with a cash position of $27.3 million, a 916% increase from 2023.
Avino received necessary permits for the underground development of La Preciosa, a significant step in their growth plan.

Negative Points

The company is nearing the maximum throughput of its mill, indicating potential bottlenecks in production capacity.
Capital expenditures were below the 2024 guidance range due to deferral of certain expenditures to 2025.
There is uncertainty regarding the cost structure due to potential fluctuations in the Mexican peso against the US dollar.
The ramp-up of La Preciosa's production may not contribute significantly until late 2024 or early 2025.
The company faces potential risks associated with tariff discussions and currency fluctuations impacting operational costs.

Q & A Highlights

Q: Can you provide a breakdown of expected CapEx spending for La Preciosa this year? A: Nathan Harte, CFO, explained that the majority of development expenditures are expected in Q2 and Q3, with a tapering off in Q4. The total guidance for CapEx is $5 to $6 million, with lighter spending in Q1 and heavier in Q2 and Q3.

Q: Are there any bottlenecks at the plant, and can the plant be expanded without additional permits? A: Peter Latta, VP Technical Services, noted that the plant is nearing its maximum throughput. While no additional permits are needed for expansion, a few pieces of equipment would be required to add an additional circuit, which is a straightforward process.

Q: Should we expect the current cost levels to continue into 2025? A: Nathan Harte, CFO, stated that they expect costs per ton to remain stable, with a goal to maintain or slightly reduce the all-in cost numbers from 2024, which were around $20.57 per ounce.

Q: When will the benefits of La Preciosa's ramp-up be realized? A: The company expects to see benefits in Q4 2025, with potential stockpiling to ensure full capacity operations. However, processing might start later in the year or in Q1 2026.

Q: Will there be a resource update for La Preciosa, and how will it be reported? A: Peter Latta confirmed a resource update is planned for next year. La Preciosa will be treated as a separate operation with its own financial metrics, similar to past practices with other deposits.

Q: What is the expected annual tonnage for La Preciosa once fully ramped up? A: The target is 4 to 500 tons per day in 2026, with long-term goals of around 1,500 tons per day, depending on further developments.

Q: What are the social conditions around the mines, given the US border situation? A: David Wolfin, CEO, stated that the area is safe, with no human trafficking issues. The company employs 450 people directly and impacts the local community positively through various initiatives.

Q: Can you elaborate on the peso hedging strategy? A: Nathan Harte explained that the company has contracts in place to limit downside exposure while allowing for upside, though they are not hedged near 50% of their OpEx.

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

This article first appeared on GuruFocus.

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