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Shares of Avino Silver & Gold Mines Ltd. ASM gained 4% as it announced on Monday that it acquired the full ownership of its La Preciosa project from Deterra Royalties Limited. This deal provides Avino Silver with full value and control of La Preciosa and eliminates the royalty burden prior to commencing production by the end of 2025.
La Preciosa is one of Mexico’s largest undeveloped silver resources.
In March 2022, Avino Silver acquired La Preciosa from Coeur Mining, Inc. CDE and issued the La Preciosa Obligations to Coeur Mining as part of the deal. In May 2023, Coeur Mining sold these obligations to Trident Royalties Plc, which was then acquired by Deterra in September 2024.
Avino Silver acquired La Preciosa Obligations from Deterra for an upfront payment of $13.25 million and a deferred payment of $8.75 million payable after one year of closing.
The company will pay upfront with existing cash on hand. The deferred payment is expected to be paid in cash and is structured to align with an existing production payment obligation that the company intends to fulfill by the end of 2026.
This deal is expected to lower La Preciosa’s operating cost profile. Avino Silver's recent operations are reporting substantial profits and cash flow, backed by favorable metal prices. This puts the company in its strongest financial position yet. This financial strength allows ASM to explore opportunities that will benefit shareholders.
The company reported earnings per share of 6 cents for the second quarter of 2025, which beat the Zacks Consensus Estimate of 2 cents. ASM reported earnings of 3 cents in the second quarter of 2024. The improvement in earnings was aided by increased metal prices and consistent production.
Avino Silver’s revenues increased 47% year over year to $22 million, owing to higher sales and metal prices. The top line beat the Zacks Consensus Estimate of $18 million. Payable silver equivalent sold increased 26% year over year to 676,453 ounces.
Shares of the company have skyrocketed 303.9% over the past year compared with the industry’s 40.8% growth.
Avino Silver currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the basic materials space are CF Industries Holdings, Inc. CF and Idaho Strategic Resources IDR. CF flaunts a Zacks Rank #1 (Strong Buy) and IDR flaunts a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CF’s 2025 earnings is pegged at $8.10 per share, indicating a 20.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 25.3%. CF shares have gained 9.2% in the past year.
Idaho Strategic Resources has an average trailing four-quarter earnings surprise of 2.6%. The Zacks Consensus Estimate for its 2025 earnings is pegged at 76 cents per share, indicating year-over-year growth of 13.4%. IDR shares skyrocketed 110% last year.
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This article originally published on Zacks Investment Research (zacks.com).
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