Avino Silver & Gold Mines Ltd (NYSEAMERICAN:ASM) Stock Falls Sharply After Earnings
Not too long ago, the Avino Silver & Gold Mines Ltd (NYSEAMERICAN:ASM) stock had rallied strongly but on Wednesday the stock had a correction and went down by as much as 7%.
Market Stats
On Wednesday, ASM stock fell 7% to $0.95 with more than 1.58 million shares, compared to its average volume of 560k shares. The stock has moved within a range of $0.9329 – 1.0500 after opening the trade at $1.04.
Q3 2021 Financial Results
Could this fall actually be an opportunity for new investors to get in? In this regard, it should be noted that there was no news about the company on Wednesday but the day before Amino Silver & Gold had announced its financial results for the third fiscal quarter of 2021. In this situation, it might be a good idea for investors to take a closer look at it.
At the end of the third quarter, the company had a cash balance of as much as $23.4 million and in addition to that, the corpus of working capital was $28.9 million. The company had also managed to repay the term facility that was owed to Samsung and managed to clock revenues of as much as $1.9 million.
The revenues were made up of $1.1 million in the form of net depreciation and depletion, while the rest came from mine operating income. The cost of per silver equivalent ounce sold was around $6.75 an ounce.
Key Quote
“We had a very busy third quarter. We finalized the work necessary to recommence operations at the mine, and the restart was announced on August 3rd,” said David Wolfin, President and CEO. “I would like to extend my appreciation to the team in Mexico for their hard work and efforts that made it possible to accomplish the restart. In addition, in early July, we announced initial drill results from Phase 1 of the campaign and completed almost 5,000 metres in the quarter. Q3 production results were achieved after a period of closure, and we continue to increase production and reach levels established prior to closure. Also in the quarter, we made the final installment in our debt to Samsung, and we are now debt free. We had revenues of $1.9 million with only one month of sales, working capital of over $28 million and cash of over $22 million. With the recent announcement of the acquisition of La Preciosa, we feel we are poised for growth with many more years of mining in our future.”
Traders Corner
ASM stock is trading above the 20-Day and 50-Day Moving averages of $0.94 and $0.90 respectively. However, the stock is trading below the 20-Day moving average of $1.15. The stock is up 15% in the past month.