Avino Silver & Gold Mines Shares Climb on Buyback News
Avino Silver & Gold Mines (ASM) shares climbed Monday after the company received approval from the Toronto Stock Exchange to launch a normal course issuer bid (NCIB), enabling it to repurchase up to 8,428,566 common shares—about 5% of its outstanding shares as of March 31. The program will begin April 8 and may run through April 7, 2027, unless completed earlier, according to Benzinga.
All shares repurchased under the program will be canceled. The company also instituted an automatic share purchase plan, which allows share repurchases during blackout periods according to preset rules. Purchases may be made on the TSX and other permitted systems at prevailing market prices.
As reported by Benzinga, ASM shares were up 4.44% at $6.82 Monday afternoon following the announcement.
What the Repurchase Program Means for Investors
For investors, a buyback program typically signals management’s confidence in the company’s value and financial position and can reduce dilution risk by decreasing the number of shares outstanding. In the precious metals space, which often sees share issuance to fund growth, a repurchase plan can be perceived as a signal of capital discipline.
- Program size: The move covers up to 5% of Avino’s float as of March 31.
- Timeline: The buyback runs from April 8, 2024, through April 7, 2027, unless completed earlier.
- Implementation: The automatic share purchase plan allows for continued buybacks during blackout periods.
Technical Setup and Market Reaction
Benzinga notes that ASM’s Relative Strength Index (RSI) recently rebounded into the upper-40s, suggesting technical momentum has improved from recent oversold conditions but isn’t yet approaching overbought levels. Share volume and further execution of the buyback will be factors to watch in the near term.
Stocks365 Take
Today’s announcement is a clear, company-specific catalyst for Avino Silver & Gold Mines (ASM). In a sector where issuance can dilute shareholder value, a well-structured buyback represents a notable commitment to capital discipline. ASM traders should track the pace and scope of actual repurchases and monitor trading volume for confirmation of sustained momentum. A pickup in volume alongside price gains could signal further upside. Set alerts and use position sizing appropriate for a volatile small-cap miner.
