Comparison of Avino (ASM) Q3 2016 and Don Mario Q2 2016The following graphic shows a comparison of Avino's two underground mines with Orvana Minerals' Don Mario mine. Why should we care about Avino's Q3 results? Well, they are the only other producer that has an offtake agreement with Samsung. And based on their previous quarter's results, Samsung pays Avino 83 percent of the metal value in their copper, silver, and gold concentrate. Avino also produces a silver and gold concentrate from the San Gonzalo underground mine. Samsung pays for 86.8 percent of the precious metals content of that concentrate.
In contrast, Don Mario has only been getting about 74 percent of the metals value in their copper concentrate. The offtake agreement with Samsung cuts out the middle man, and may result in an increase in the pay factor for Don Mario gold, silver, and copper production.
My estimate for Q3 2016 Avino revenue is $10.45 million USD ($13.79 million Canadian dollars), and looking at Avino as a gold equivalent producer, the total Q3 production was 9521 gold equivalent ounces.
For comparison, Don Mario had 12,680 gold equivalent ounces and revenue of $11.85 million USD last quarter. So Don Mario, by itself, is about a third bigger than Avino's 2 mines. ASM trades at $1.94 and on a float adjusted basis ORV trades at 51 cents.
