Avino Silver & Gold Mines (TSX:ASM) reported first-quarter financial results on Thursday. The transcript from the company’s first-quarter earnings call has been provided below.
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Access the full call at https://www.webcaster5.com/Webcast/Page/3038/53838
Summary
Avino Silver & Gold Mines Ltd reported record revenue of $39.4 million for Q1 2026, with a strong cash position of $139 million and working capital of $140 million.
The company completed the 2025 drill program at La Preciosa and launched a 30,000-meter drill program across La Preciosa and Avino, aiming to bolster production and resource estimates.
Avino Silver & Gold Mines Ltd announced an inaugural mineral reserve estimate of 127 million silver equivalent ounces, reinforcing its growth strategy towards becoming a mid-tier producer.
The company’s mill performance exceeded expectations, with significant contributions from La Preciosa, processing over 14,000 tons of material in Q1, and aiming for 500 tons per day by year-end.
Revenue from silver production accounted for 60% of the total, with average realized silver prices at $86.42 per ounce, contributing to record free cash flow generation.
Management highlighted strategic exploration, community engagement, and operational sustainability as key factors in supporting long-term growth and shareholder value.
Future guidance includes scaling up production by 2029 and leveraging existing infrastructure to efficiently execute the growth plan, with continued focus on maintaining financial discipline and strategic capital allocation.
Full Transcript
OPERATOR
Welcome to the Avino Silver & Gold Mines Ltd First Quarter 2026 Financial Results Conference call and webcast. As a reminder, all participants are in a listen only mode and the conference is being recorded. After the presentation there will be an opportunity to ask questions. To join the question queue you may press Star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing Star and zero. I would now like to turn the conference over to Jennifer North, Head of Investor Relations. Please go ahead.
Jennifer North (Head of Investor Relations)
Thank you operator. Good morning everyone and welcome to our Q1 2026 earnings call and webcast. To join this webcast and conference call, there is a link in our news release of yesterday’s date which can be found on our new website under Investor center then News and Media. In addition, a link can be found on the homepage of the Avino Silver & Gold Mines Ltd website. The full financial statements in MDA are now available on our website under the Investor center tab, then Reports and Financials. In addition, the full statements are available on Avino Silver & Gold Mines Ltd’s profile, on SEDAR plus and on EDGAR. Before we get started, I remind you to view our precautionary language regarding forward looking statements and the risk factors pertaining to these statements and note that that certain statements made today on this call by the management team may include forward looking information within the meaning of applicable securities laws. Forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different than those expressed by or implied by such forward looking statements. For additional information, we refer you to our detailed cautionary note in the presentation related to this call or or on our press release of yesterday’s date. On the call today we have the Company’s President and CEO David Wolfen, our Chief Financial Officer Nathan Hart, our Chief Operating Officer Carlos Rodriguez and our VP Technical Services Peter Latta. I would like to remind everyone that this conference call is being recorded and will be available for replay later today. Replay information and the presentation slides from this call and webcast will be available on our website. Also, please note that all figures stated are in US Dollars unless otherwise noted. Thank you. I will now hand over the call to Avino Silver & Gold Mines Ltd’s President and CEO David Wolven. David?
David Wolfen (President and CEO)
Thanks Jennifer. Good morning everyone and welcome to Avino’s first quarter 2026 earnings call and webcast. We will cover the highlights of our financial and operating results and then provide an overview of what’s coming up in the next quarter followed by a Q and A session once I’ve gone Through the operational highlights and overall progress during the quarter, I will turn it over to Nathan Hart, Avino’s CFO, to discuss the financial results for the period. Please turn to Slide 5. We continue advancing along our clear path for transformational growth, evolving Avino from a single mine operator to a diversified multi asset mid tier producer in Mexico. We’ve had a very active first quarter achieving progress across operations, development and corporate initiatives including the completion of the 2025 drill program at La Preciosaa and welcoming Linda Broughton to our board who has a track record in operations, sustainability and the environment. In addition, we launched an ambitious 30,000 meter drill program across La Preciosaa and Avino. We have currently drilled 2,600 meters at La Preciosaa and 3,000 meters at Avino early in the second quarter. On April 16, we announced our inaugural mineral reserve and updated mineral resource estimates. We began 2026 with a positive momentum which is reflected in our quarterly production of just over 568,000 ounces, providing a strong foundation to deliver on our annual production target. Mill performance remained solid during the quarter, with tons milled exceeding expectations. Our teams continued to actively manage throughput across all four circuits. Contributions from the Preciosaa development exceeded plan and we are seeing encouraging progress in grade improvements particularly towards the end of the quarter. The key drivers guiding success achieved in Q1 are as follows. Firstly, financial discipline and strategic capital allocation played an important role driving meaningful improvement across key financial metrics. Record revenue of 39.4 million, cash of 139 million and working capital position of 140 million. Our financial strength enables us to carry out our organic growth plan with a bulletproof balance sheet. Next, continued advancing La Preciosaa with increased tonnage processed during Q1 2026. Throughput averaged approximately 200 to 230 tons per day during the quarter resulting in more than 14,000 tons of material processed. The next key driver was the completion of a new mineral reserve estimate and updated mineral resource estimate. This was released on April 16. Establishing mineral reserves across all of our properties is a transformational milestone for Avino. For the first time, we have defined reserves that demonstrate the underlying quality, scale and economic potential at our asset base base. Further advancing the company towards a multi asset mid tier producer. We are very pleased to report an inaugural mineral reserve estimate of 127 million silver equivalent ounces across all three assets. The milestone is complemented by growth in our mineral resource base. The growth was achieved after accounting for depletion from ongoing mining activities, underscoring the strength and continuity of of our ore bodies and mineralized systems. Together, these results reinforce the depth of our organic pipeline and position Avino for continued growth and long term value creation for shareholders. NEXT La Preciosao was an important contributor to our operational progress this quarter. With strategic exploration efforts continuing successfully. The planned 2025 drill program was completed and results were released in late January. We reported excellent silver grades from the remaining six holes which totaled 1400 meters drilled. The entire 2025 program consisted of 14 holes for approximately 3500 meters of drilling. The silver grade continues to surprise us with significantly higher silver grades compared to the average grade in the current mineral resource. These latest holes were outside of our recent mineral resource update as the data was not received until after the cutoff period. However, we expect to encounter similar high grades as we continue with development mining on each face of the vein to the north and south of the main San Fernando ramp. The Preciosa also contributed positively to our first quarter performance through ongoing extraction, haulage and processing of development material, supporting elevated mill throughput and operational flexibility. NEXT Silver revenues have increased with 60% revenue from silver production in Q1 2026, record revenues and free cash flow generation. Also during Q1, precious metal prices remained strong, supporting our operations and contributing positively to to our overall financial results. Another important contributor to our continued progress is the growing recognition Avino is receiving within the institutional investment community as we continue to execute on our transformational growth strategy. Additional funds and ETFs are becoming shareholders of the company, broadening our investor base and enhancing overall market visibility. These achievements demonstrate the meaningful progress made in advancing Avino’s transformational growth strategy while reinforcing the company’s investment case. In addition, a key contributor of our continued success is the quality of the jurisdiction and communities in which we operate. Mexico remains an important and established mining jurisdiction and we believe our long operating history in Durango continues to demonstrate the strength of the region in which we operate. We have built strong relationships with our local communities and workforce over the decades, which is reflected in our low labor turnover and growing base of skilled employees. Our operations contribute meaningfully to the local economy through employment, training, procurement and community initiatives. At the same time, we remain focused on responsible mining practices and continually work to reduce our environmental footprint through initiatives such as water recycling, backfilling underground workings where appropriate, and reclaiming historic open pit areas. We believe this balanced approach to operational excellence, community engagement and environmental stewardship supports the long term sustainability of our operations and future growth plans. Moving to slide 6, we turn to our Q1 production results which were released on April 23rd and reflect steady operational performance. On this slide we show our production Results compared to Q1 2025 and Q4 2024 with production of 568,000 silver equivalent ounces and 185,000 tons of total mill feed, which is 11% higher than Q1 of last year. On slide 7 we highlight production by operation showing contributions from both Avino and La Preciosaa for the year. We …
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