zaterdag 9 februari 2013

Avino Silver and Gold Mines: The Perfect Growth Story

Avino silver and gold mines (ASM) is one of those miners that has long existed in Mexico and has a proven track record of 27 years. It closed in 2001 due to low metal prices but reopened in 2010 and is continuing to grow production as we speak. One of the most important aspects to take into account is the presence of a long existing infrastructure, including a mill with a replacement value of $40 million. This mill is fully operational now at 250 tpd (San Gonzalo mine) and is being expanded to 1250 tpd next year (Avino mine). For more information, I encourage investors to read the corporate presentation here.

ASM closely follows the silver price as you can see on chart 1, so you're buying a leveraged instrument to the silver price and I'm very bullish on silver in the coming months.
Chart 1: Avino Silver and Gold Mines Vs. Silver Price

In this article I will talk about the catalysts of ASM. I think Avino Silver and Gold Mines is a pure growth story. Production will go up 6 fold in just 2 years time. When people see that this company has turned from a net loss to a net profit in the coming year, they will all pile in to buy this stock with both hands. As a matter of fact, Eric Sprott is the largest shareholder in this company and if you've read this article carefully, you know exactly why this is...

Go here to continue.

1 opmerking:

  1. A plane carrying workers headed to a gold mine in Peru’s northern Andes region crashed, killing all nine people on board.
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