Avino Silver & Gold Mines Ltd (NYSEMKT: ASM) recently announced the declaration of commercial production at its Avino Mine located in Durango, Mexico. Avino Mine is ASM’s second-largest mining asset on the Avino property. ASM has already termed commercial production at Avino Mine a milestone, but what changes with the development?
Financials will never remain the same
First, Avino Silver & Gold Mines Ltd (NYSEMKT: ASM)’s financial statements will never remain the same. The company said that henceforth, financial outcomes of the activity at the Avino Mine will reflect on its future financial results.
The main financial statement items expected to be affected by commercial production at Avino Mine are consolidated revenues and product costs. Additionally, operations at the mine are expected to reflect on ASM’s comprehensive income statement.
It won’t take long before Avino Silver & Gold Mines Ltd (NYSEMKT: ASM) begins to disclose the financial results of the Avino Mine operation. The CEO, David Wolfin, said they hoped to start reporting the results beginning in 2Q2016.
Value to shareholders from Avino Silver & Gold Mines Ltd (NYSEMKT: ASM)
According to CEO Wolfin, commercial operation at Avino is another step by the management to enhance shareholder value. In a letter directed to shareholders, he said that his team has been able to do all that is possible to ensure that ASM continues to expand and create value for shareholders despite the tough economic environment for commodity companies.
In citing difficult times for commodities companies, ASM’s CEO echoes the lower prices and doused demand for commodities amid global economic slowdown. China’s slowing economic growth as triggered uncertainty in many global markets.
As for Avino Silver & Gold Mines Ltd (NYSEMKT :ASM), some of the measures to ensure that company survives the storms have included disciplined cash administration and lowering the cost of various projects.
Is there anything to show for the belt-tightening?
Avino Silver & Gold Mines Ltd (NYSEMKT: ASM) said it generated $2.75 million in 1Q2016 from the sale of its San Gonzalo concentrates. It said mine operating income was $1.78 million and net income after the taxes was $58,046.