Avino Silver and Gold mines (ASM.V, NYSEMKT:ASM) has reported very decent results for the second quarter of this year, as the company produced just over 295,000 silver-equivalent ounces at an AISC of $12.02 per silver-equivalent ounce, which is quite good (but keep in mind this number does not include the expansion capex at the Avino mine and the process plant expansion which is booked as expansion capex and not as sustaining capex).
Thanks to an increased output and lower cost base, Avino’s working capital position increased to C$15.2M as of at the end of June of this year, which is much better than the C$5.95M at the same time last year. These are busy times for Avino as not only is it looking to increase the gold and silver production in Mexico, the company is also busy to buy out Bralorne Gold Mines (BGM.V) to get its hands on the Bralorne-Pioneer gold project in Canada, which is currently in test production. We are confident that Avino Silver and Gold has a plan in place to increase the production, and more importantly the resources at Bralorne and that this will be an accretive transaction down the road.
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Disclosure: The author holds a long position in Avino Silver and Gold Mines. Please see our disclaimer for current positions.
