David Wolfin, President and CEO of Avino Silver and Gold Mines (TSX:ASM – NYSE:ASM), joins me to outline the key metrics and takeaways from the record Q4 and record full year 2024 financials and operations. Then we take a deeper dive into the Company’s 5-year production growth plan, to become a Mexican intermediate silver producer, with the development of both the La Preciosa Project in 2025, and then the Tailings Project a few years out.
Fourth Quarter 2024 Financial Highlights (compared to Q4 2023)
- Record Revenues: The Company realized revenues of $24.4 million, an increase of 95%, driven by increased production and higher realized silver and gold prices in the quarter.
- Record Gross Profit: Gross profit, or mine operating income, was $10.5 million and represented an increase of 308%. The significant improvement was a result of items noted related to revenues, as well as meaningful unit cost reductions and currency movements between the US dollar and Mexican Peso.
- Record Cash Flow Generation: The Avino Mine delivered cash provided by operating activities of $15.6 million, up over 2,000%, as well as mine operating cash flows before taxes 3 of $11.9 million, up 230%.
- Record Earnings and Adjusted Earnings: The Company realized net income of $5.1 million, or $0.03 per share, up 804%, and adjusted earnings 3 of $10 million, or $0.07 per share, an increase of 405%. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) 3 was $9.1 million, up 712%
- Improved Costs per Ounce Metrics: Cash costs per silver equivalent payable ounce sold was $13.88 and all-in sustaining cash costs per silver equivalent payable ounce sold was $18.62, down 8% and 14%, respectively.
Full Year 2024 Financial Highlights (compared to FY 2023)
- All-Time High in Cash Strength: Cash balance of $27.3 million, an increase of 916%. This represents the highest balance in the Company’s history and positions the Company to execute on its organic growth plans.
- Record Revenues: The Company realized revenues of $66.1 million, an increase of 51%, driven by improved production and sales volumes, as well as higher realized metal prices in 2024
- Record Gross Profit: Gross profit, or mine operating income, was $23.2 million and represented an increase of 197%.
- Record Earnings and Adjusted Earnings: The Company realized net income of $8.1 million, or $0.06 per share, with adjusted earnings 3 up 364% at $21.3 million, or $0.15 per share. EBITDA 3 rose significantly and was $18 million, up 620%.
- Improved Costs per Ounce Metrics: Cash costs per silver equivalent payable ounce sold came in at $14.84, down 5% and all-in sustaining cash costs per silver equivalent payable ounce sold was $20.57, down 6%.
- Record Cash Flow Generation: The Avino Mine delivered cash provided by operating activities of $23.1 million, up over 1400%. Mine operating cash flow before taxes of $27.6 million, an increase of 150%
David outlines the consistent silver, gold, and copper production coming from the Avino Mine, where the Company delivered record financial performance driven by higher metal prices and increased production from their Avino Mine. With records set in revenues and cash flow generation, their operating margins were further strengthened, and with a debt-free balance sheet and over $27 million in cash to close out the year, they are well-positioned for the future. There is also a concerted effort in 2025 to invest in exploration around the Avino Gold Mine to spur on more organic growth.
For the balance of the discussion, we shifted over to the ongoing development work at the La Preciosa Project, now that the final permits were received to begin development, and the work on the underground decline has commenced and mining will get underway with first production expected in Q4 of 2025. We talk about the grade being about 3 times as high, and once in production it will start bringing AISC down into the high teens. Then the Oxide Tailings Project is also in cue for a few years out with low ~$10 All-In Sustaining Cost, it will contribute to their 5-year production growth plan and lowering costs down into the mid-teens.
If you have any follow up questions for David regarding Avino Silver and Gold then please email me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Avino Silver & Gold at the time of this recording.
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