Yahoo Finance Avino Silver (ASM) Hits 52-Week High: What's Driving It?
Shares of Avino Silver ASM closed at a new 52-week high of $1.02 on May 17. The appreciation was driven by rising gold and silver prices and ASM’s strong first-quarter results.
The company has a market capitalization of $135.5 million and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Avino Silver have soared 130% in the past three months outpacing the industry’s 77% growth. The S&P 500 has meanwhile moved up 7%.
Image Source: Zacks Investment Research
Avino Silver announced first-quarter adjusted earnings per share of 2 cents on May 8, which reflected a 100% year-over-year increase. The upside was driven by higher gold and silver prices and lower costs. Revenues increased 26% year over year to $12.4 million.
Consolidation production was 629,302 silver equivalent ounces, a 13% sequential increase, attributed to a 18% improvement in mill throughput. This comprised 250,642 ounces of silver, 1,778 ounces of gold and 1,347,110 pounds of copper. Compared with the fourth quarter of 2023, silver production rose 7%, gold output increased 22% and copper production grew 2%. With this performance, Avino Silver believes it is on track to achieve its targeted full-year production of 2.5 million to 2.8 million silver equivalent ounces.
In the first quarter, the company also reported several other key achievements. In January 2024, ASM signed a long-term land-use agreement with a local community for the development of La Preciosa in Durango, Mexico, which is one of the largest undeveloped primary silver resources in the country. The addition of La Preciosa's mineral resource inventory significantly enhanced Avino Silver’s consolidated NI 43-101 mineral resources, which currently comprise 371 million silver equivalent ounces.
Avino Silver has applied for an environmental permit from the authorities. A new permission will be submitted right after receiving the environmental permit, which is required to begin construction of the portal, haulage ramp and mining of the Gloria and Abundancia veins. Avino anticipates receiving these in the coming year.
Additionally, Avino Silver completed a Pre-Feasibility Study for its Oxide Tailings Project at the Avino Mine Operations. The study highlighted proven and probable mineral reserves of 6.7 million tons at a silver and gold grade of 55 g/t and 0.47 g/t respectively, a first in the company’s 57-year history.
The company’s shares have also benefited from a 17% increase in gold prices and a 32% rise in silver prices so far in 2024. Notably, gold has remained consistently above the $2,000-per-ounce mark.
Several factors have contributed to this upward trajectory, including increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks. Physical demand has also been strong in China of late. Gold is currently at $2,435.71 an ounce boosted by expectations of interest rate and safe haven demand amid the potential escalation of geopolitical tensions. Silver prices are at $31.78 per ounce.
Other Mining Stocks Trading Near/At 52-Week Highs
Other mining companies have also benefited from these price trends as well as their upbeat first-quarter performances and are currently trading near their 52-week highs.
Fortuna Silver Mines FSM shares have appreciated 109.3% in the past three months. The company closed at $5.84, on May 17, at its 52-week high.
Fortuna Silver recently reported earnings per share of 9 cents for the first quarter, which marked an 80% year-over-year improvement. FSM’s revenues increased 28% year over year to $225 million, which was attributed to an increase in gold sales volumes and higher realized gold and silver prices.
MAG Silver Corp. MAG shares have gained 61.8% in the past three months and closed at its 52-week high of $14.06 on May 17.
MAG reported adjusted earnings per share of 14 cents for first-quarter 2024 on May 14. Compared with the year-ago quarter, earnings improved a solid 180% attributed to higher metal volumes and realized metal prices. Sales were recorded at $124 million, up 140% from $51 million recorded in the first quarter of 2023.
Agnico Eagle Mines Limited AEM shares have gained 44% in the past three months and closed at $70.11 on May 17, near its 52-week high of $70.37.
AEM reported adjusted earnings of 76 cents per share in the first quarter, up 33% from the year-ago quarter attributed to solid operational and cost performance. Agnico Eagle generated revenues of $1.83 billion, up nearly 21% year over year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Fortuna Silver Mines Inc. (FSM) : Free Stock Analysis Report
Avino Silver (ASM) : Free Stock Analysis Report
MAG Silver Corporation (MAG) : Free Stock Analysis Report
