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ASM: Future Cash Flows Will Disappoint Despite Strong La Preciosa Drill Results

ASM: Future Silver Output Declines Will Outweigh Short-Term Gold Production Gains

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ASM
AnalystConsensusTarget
Not Invested
Published 23 Feb 2025

Update shared on 11 Dec 2025

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1Y
426.1%
7D
9.1%

Analysts have modestly lifted their price target on Avino Silver & Gold Mines by adjusting the discount rate and future earnings assumptions. This reflects a slightly more optimistic view of the company’s long term cash flow potential and valuation in dollar terms.

What's in the News

  • La Preciosa drilling results at the La Gloria and Abundancia veins show significantly higher than expected silver and gold grades, confirming and strengthening the existing vein-based resource model (Key Developments).
  • Four new drill holes at La Preciosa intersected multiple mineralized veins, with assays returning very high silver grades over meaningful true widths, supporting the project’s potential as a high grade epithermal silver system (Key Developments).
  • Third quarter operating results showed lower copper and silver output but higher gold production year over year, leading to a modest decline in total silver equivalent ounces produced (Key Developments).
  • Avino Silver & Gold Mines was added to the S&P Global BMI Index, increasing its visibility and potential inclusion in index-tracking investment products (Key Developments).

Valuation Changes

  • Fair Value: Unchanged at CA$5.30 per share, indicating no revision to the intrinsic value estimate despite updated assumptions.
  • Discount Rate: Risen slightly from 7.07 percent to 7.14 percent, reflecting a modestly higher required return for valuing future cash flows.
  • Revenue Growth: Effectively unchanged at about 19.71 percent, suggesting no material shift in long term top line growth expectations.
  • Net Profit Margin: Essentially stable at roughly 35.20 percent, indicating no significant change in long term profitability assumptions.
  • Future P/E: Increased slightly from 17.11x to 17.46x, implying a modestly higher valuation multiple applied to expected future earnings.

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Disclaimer

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