Avino Silver and Gold (ASM.V, NYSEMKT:ASM) is in the final stages to restart its Avino gold-silver-copper mine in Mexico by the end of this year. This should almost double the silver production and more than double the production of silver-equivalent ounces.
We expect the Avino mine to produce roughly 600,000 ounces of silver, 3,750 ounces of gold and 4.5 million pounds of copper in 2015 for a silver-equivalent production of approximately 1.75 million ounces. This comes on top of the expected production at San Gonzalo of 650-700,000 ounces of silver and roughly 3,500 ounces of gold, and the production at the mines acquired in the Bralorne Gold transaction should be in excess of 6,000 ounces of gold. This means that Avino will be on track to produce a consolidated total of 3-3.1 million silver-equivalent ounces at an AISC of $12-12.5/oz AgEq.
On top of that, Avino’s revenues will be less depending on the precious metals as roughly 25-30% of the total revenues will be generated through the production of copper at the Avino mine. We are surprised to see Avino trading at the current levels despite the turmoil on the precious metals market, and we think the company could be a big winner in 2015, even at the current gold and silver price.
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Disclosure: The author holds a long position in Avino Silver and Gold. Please see our disclaimer for current positions.
