Shares of Avino Silver & Gold Mines Ltd. ASM have gained around 3% as of Aug 12, 2020, despite reporting second-quarter 2020 adjusted loss per share of 1 cent on Aug 11. However, the figure matched the Zacks Consensus Estimate for bottom line. Notably, the company had reported breakeven earnings in the prior-year quarter. Lower production owing to the temporary mine shutdowns amid the COVID-19 pandemic impacted the company’s top-line performance in the quarter under review. Nevertheless, the company reported an improvement of 459% in adjusted EBITDA, leading to price gains.
Including one-time items, the company reported a loss of 2 cents per share in the second quarter.
Avino Silver’s revenues slumped 38% year over year to $4.8 million in the second quarter. The top line beat the Zacks Consensus Estimate of $3 million. This can primarily be attributed to lower production as a result of temporary suspension of operations.
Avino Silver Price, Consensus and EPS Surprise 
Avino Silver price-consensus-eps-surprise-chart | Avino Silver Quote
The company produced 50,581 ounces of silver in the reported quarter, down 78% from the prior-year quarter. While gold production was down 75%, copper production fell 60%. Silver equivalent production decreased by 56% to 158,286 ounces. Mining operations had been temporarily suspended at the beginning of April as mandated by the Mexican government. The Avino Mine had been transitioned to care and maintenance utilizing a reduced workforce to protect employees, contractors, and local communities. On Jun 1, 2020, Avino Silver was approved by the Secretariat of Health to restart regular mining activities in an orderly, gradual and cautious manner.
Operational Update
The company recorded cash costs of $10.92 per silver equivalent payable ounce, up 0.3% from the year-ago quarter. Consolidated all-in sustaining costs (“AISC”) of $16.37 per silver payable equivalent ounce came in 5% higher than the prior-year quarter.
Avino Silver reported mine-operating profit of $0.8 million in the second quarter, a 166% improvement from the $0.3 million in the prior-year quarter. Adjusted EBITDA came in at $1.96 million compared with $0.35 million in the prior-year quarter.
Financial Position
Avino Silver ended second-quarter 2020 with $10.4 million of cash in hand, up from the $3.4 million at the prior-year quarter end. Capital expenditures for the first half of 2020 were $0.7 million, down from $4.9 million in the prior-year comparable period, reflecting the company’s cautious stance amid the COVID-19 crisis. The company has lowered term facility and equipment debt by $2.2 million since Dec 31, 2019.
Price Performance
Shares of the company have gained 77.8% over the past year compared with the industry’s rally of 46.6%.
Zacks Rank & Stocks to Consider
Avino Silver currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Coeur Mining Inc. CDE, Commercial Metals Company CMC and The Scotts MiracleGro Company SMG, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coeur Mining has an expected earnings growth rate of 138.7% for 2020. The company’s shares have surged 50% over the past year.
Commercial Metals has a projected earnings growth rate of 15% for the current year. The company’s shares have gained 45% in a year’s time.
Scotts MiracleGro has an estimated earnings growth rate of 44.5% for the ongoing year. Its shares have appreciated 48% in the past year.
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