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Avino Silver & Gold Mines Ltd T.ASM

Alternate Symbol(s):  ASM

Avino Silver & Gold Mines Ltd. is a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company also maintains a diversified pipeline of gold and base metals exploration properties. It operates the Elena Tolosa Mine (Avino Mine), which produces copper, silver and gold at the Avino property in the state of Durango, Mexico. The Avino property also hosts the San Gonzalo Mine, which is on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (La Preciosa), a Mexican corporation, which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada. The Company’s mineral claims in Mexico are divided into two groups: Avino Mine area property and Gomez Palacio/Ana Maria property. La Preciosa is a development stage mineral property located in the state of Durango, Mexico. Its other properties include Eagle, Minto, and Olympic, among others.


TSX:ASM - Post by User

Post by Scorison Mar 12, 2012 4:26pm
282 Views
Post# 19659113

Avino in The Gold Report

Avino in The Gold Report

https://www.theaureport.com/pub/na/12798

"TGR: What's been the effect on Avino's prospects after being listed on the various stock exchanges?

MK: Anytime a junior mining stock secures a listing on a major exchange, like the NYSE, it increases that firm's pool of investors. I mentioned Endeavour and First Majestic and Great Panther. After these companies secured senior listings, their share prices went up substantially. I expect Avino to attract a larger following, causing its share price to increase.

TGR: Are there any other catalysts for Avino this year?

MK: Avino has had limited production. The company needed to reach an agreement with the landowner about dividing up royalties for its main mine. A few days ago, Avino announced it has reached that agreement. It is going to resume production from two separate mining zones, instead of just one. When Avino runs larger tonnage of ore through the processing plant, its unit costs will go down. Profit margins should improve.

TGR: Does Endeavour Silver still have some upside left to it?

MK: Endeavour trades at a higher price than Avino because it has more magnitude. But four years ago, Endeavour was where Avino is today. Avino has a growth path firmly in place, and it can advance to the next level. Five years ago, First Majestic was where Avino is today: it had one major mine that was expanding. First Majestic went on to acquire other assets. It achieved the $1 billion+ valuation that it has today. These companies are all pretty much following the same path.

TGR: And is Great Panther on that same path? Does it still have upside ahead?

MK: Absolutely. We're waiting for consolidation. A number of the smaller mines are starting to make money, but not as efficiently as they would under the umbrella of a single company. We recently saw a first indication of consolidation, when Minefinders Corp. (MFL:TSX; MFN:NYSE) announced that it had been acquired by Pan American Silver Corp. (PAA:TSX; PAAS:NASDAQ). I suggest that Avino is either going to be a takeover target, or it is going to start acquiring weaker companies to build growth.

TGR: Who could take over Avino?

MK: Any company that has a strong balance sheet that is looking to grow its total production by adding over a million ounces of silver a year. I don't necessarily think Avino will be a target for Pan American Silver or Goldcorp Inc. (G:TSX; GG:NYSE). But, Avino could partner with other mid-size producers. There's probably a dozen companies that could see an incremental value by bringing Avino under their umbrellas."

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