Here's a simple story: a company thinks its stock is cheap. So it decides to use its own cash to buy its own shares. Investors see this and think, "Hey, if the company thinks it's a good buy, maybe I should too." And then they buy the stock. That's basically what's happening with Avino Silver & Gold Mines Ltd (ASM) on Monday.
The silver and gold miner announced it got the green light from the Toronto Stock Exchange to launch what's called a normal course issuer bid (NCIB). In plain English, that's a share repurchase program. It allows Avino to buy back up to 8,428,566 of its common shares. That's about 5% of all the shares it had outstanding as of the end of March. The buyback window opens on April 8 and can run for three years, until April 7, 2027, unless they finish shopping early.
Why do this? Management says it gives them "flexibility" if the stock price isn't fully reflecting what the company is actually worth or its long-term potential. It's a way for a company to return capital to shareholders, other than paying a dividend. When a company buys back its shares, it reduces the number of shares floating around in the market. All else being equal, that can make each remaining share more valuable.
CEO David Wolfin put a finer point on it. "Avino is in a strong financial position," he said, adding that the company expects current silver prices to help it generate enough free cash flow in 2026 to support these repurchases. So, they're not just dipping into savings; they're planning to use future profits to fund the buyback. The purchases can happen on the TSX, the NYSE American, or other permitted trading systems at whatever the market price is that day. Any shares they buy back will be canceled—poof, gone for good. The company also set up an automatic plan to keep buying during blackout periods (when insiders can't trade) under preset rules, so the program can run on autopilot.
Now, let's talk about the stock's recent vibe. Over the past six months, Avino's Relative Strength Index (RSI)—a momentum indicator that shows whether a stock is overbought or oversold—has mostly hung out in the neutral zone. It spiked briefly above 70 (that's the traditional overbought line) a couple of times and recently dipped down near 30 (the oversold threshold). The latest reading has bounced back into the upper-40s. What does that mean? It suggests the stock's momentum has recovered from being nearly oversold but isn't yet showing signs of being overbought. It's like the stock caught its breath and is starting to jog again, not sprint.
And how is the market reacting to all this news? Investors are buying the story, literally. Avino Silver & Gold Mines shares were up 4.44% at $6.82 on Monday afternoon.
