Group 1 - Avino Silver & Gold Mines Ltd. (ASM) acquired full ownership of its La Preciosa project from Deterra Royalties Limited, leading to a 4% increase in shares [1] - The acquisition eliminates royalty obligations and allows for full control of La Preciosa, which is one of Mexico's largest undeveloped silver resources [2][8] - The deal includes an upfront payment of $13.25 million and a deferred payment of $8.75 million, with the company utilizing existing cash for the upfront payment [3][8] Group 2 - The acquisition is expected to lower La Preciosa's operating cost profile, enhancing the company's financial position, which is currently strong due to favorable metal prices [4] - In Q2 2025, Avino Silver reported earnings per share of 6 cents, surpassing the Zacks Consensus Estimate of 2 cents, and showing improvement from 3 cents in Q2 2024 [5] - Revenues for Q2 increased by 47% year over year to $22 million, driven by higher sales and metal prices, exceeding the Zacks Consensus Estimate of $18 million [6][8] Group 3 - The company has seen a significant stock price increase of 303.9% over the past year, compared to the industry's growth of 40.8% [7]

Core Insights - Avino Silver & Gold Mines Ltd. reported earnings per share of 6 cents for Q2 2025, exceeding the Zacks Consensus Estimate of 2 cents, and showing an improvement from 3 cents in Q2 2024 [1][8] - The company's revenues surged 47% year over year to $22 million, driven by higher sales and metal prices, surpassing the Zacks Consensus Estimate of $18 million [2][8] - Mine-operating profit reached $10 million, marking a 118% increase from $4.7 million in the previous year, and this is the third consecutive quarter with profits exceeding $10 million [4][8] Financial Performance - EBITDA for Q2 2025 was $7.4 million, up 118% from $3.4 million in the year-ago quarter [4] - Cash costs per silver equivalent payable ounce decreased by 7% to $15.11 from $16.29 in the prior year [3] - Consolidated all-in sustaining costs were $20.93 per silver equivalent payable ounce, down from $22.74 in Q2 2024 [3] Production Metrics - Silver-equivalent production was 645,602 ounces, a 5% increase from Q2 2024, attributed to record quarterly mill throughput [5] - Payable silver equivalent sold rose 26% year over year to 676,453 ounces [2] - Silver production decreased by 3% to 283,619 ounces, while gold production increased by 17% to 1,774 ounces, and copper production rose by 12% to 1.46 million pounds [5] Cash Position - The company ended Q2 2025 with $37 million in cash, an increase from $27 million at the end of 2024 [6] - Cash provided by operating activities was $8.3 million, compared to $1.1 million in the year-ago quarter [6] Stock Performance - Avino Silver's shares have increased by 276.5% over the past year, significantly outperforming the industry growth of 36.4% [7]

Core Viewpoint - Avino Silver & Gold Mines Ltd. is conducting its Q2 2025 earnings conference call, highlighting its financial results and operational updates for the quarter [1][2]. Group 1: Company Overview - The conference call features key company executives including President and CEO David Wolfin, CFO Nathan Harte, COO Carlos Rodriguez, and VP of Technical Services Peter Latta [4]. - The call is being recorded and is available for participants in listen-only mode [2]. Group 2: Financial Results - The financial results for Q2 2025 will be discussed, with a focus on the company's performance metrics and operational achievements during the quarter [3].

Industry Overview - The Zacks Mining - Silver industry is experiencing promising prospects due to rising silver prices, with global industrial demand projected at approximately 1.15 billion ounces, while supply is expected to be lower, indicating a fifth consecutive year of deficit [1][4] - The industry comprises companies engaged in the exploration, development, and production of silver, with only 20% of silver coming from mining activities where silver is the primary revenue source [3] Demand and Supply Dynamics - Total silver demand is expected to dip by 1% to 1.148 billion ounces in 2025, with industrial use projected at around 677.4 million ounces, accounting for roughly 59% of total demand, driven by the solar energy industry and rising usage in electrical applications [4][5] - Silver prices increased by approximately 22% in 2024 and 33.7% in 2025, supported by economic uncertainties and solid demand amid tight supply [5] Cost Management and Operational Efficiency - Industry players are facing rising production costs, particularly in energy, wages, and materials, leading to a focus on improving sales volumes and cost-effectiveness through technological innovations [6] - Companies are investing in R&D to enhance operational efficiency and sustain growth while managing costs [6] Stock Performance and Valuation - The Mining-Silver Industry has outperformed the Basic Material sector and the Zacks S&P 500 composite over the past year, with a collective gain of 42% compared to the sector's 2.4% rise [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 11.79X, lower than the S&P 500's 17.66X and the Basic Material sector's 12.73X [12] Company Highlights - **Pan American Silver (PAAS)**: Reported record cash flow of $233 million and a 291% year-over-year increase in earnings per share, with a projected output of 20-21 million ounces of silver in 2025 [16][17] - **Vizsla Silver (VZLA)**: Advancing its flagship Panuco silver-gold project, targeting first production in the second half of 2027, with a recent 43% increase in estimated mineral resources [22][23] - **Avino Silver Mines (ASM)**: Produced 645,602 silver equivalent ounces in Q2 2025, up 5% year-over-year, and remains on track to achieve a production range of 2.5 - 2.8 million silver equivalent ounces in 2025 [25][26] - **Hecla Mining (HL)**: Reported record revenues of $304 million and a 10% increase in silver production, with a projected silver equivalent output of 35.5 - 39.0 million ounces for 2025 [29][30]

Financial Data and Key Metrics Changes - Avino reported revenues of $21.8 million for Q2 2025, a 47% increase from Q2 2024, marking the second highest revenue in company history [13] - Gross profit was $10.2 million, with gross profit margins improving to 45% from 32% in Q2 2024 [13][14] - Net income for the quarter was $2.9 million, translating to earnings per share of $0.02, up from $1.2 million or $0.01 per share in Q2 2024 [14] - Cash flow from operating activities improved to $8.5 million, with free cash flow at $4.4 million [14][16] - Cash cost per silver equivalent ounce was $15.11, down 7% from Q2 2024, while all-in sustaining cash cost was just under $21 per ounce, an 8% decrease [15][18] Business Line Data and Key Metrics Changes - Silver equivalent production increased by 5% to almost 646,000 ounces in Q2 2025, driven by improved mill availability [9] - Gold production rose by 17% due to increased tons processed and improved recoveries [10] - Copper production increased by 12%, reaching 1.5 million pounds [10] - Silver production slightly decreased by 3% to just under 284,000 ounces [10] Market Data and Key Metrics Changes - The company maintained strong production momentum through the first half of the year, with record mill throughput of 190,987 tons processed, a 36% increase from Q2 2024 [10][11] - The cash position at the end of the quarter was $37.3 million, up over $10 million from the previous quarter [15] Company Strategy and Development Direction - Avino is focused on sustaining momentum and reaching new milestones, with a strong balance sheet and ongoing development of La Preciosa [7][8] - The company aims for annual production guidance of 2.5 to 2.8 million ounces of silver equivalent for 2025 [13] - The strategic focus remains on organic growth with three key assets, while remaining disciplined regarding M&A opportunities [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and ability to capitalize on positive market trends in the precious metals sector [71] - The operational team is expected to continue driving cost improvements while advancing La Preciosa development [8][12] Other Important Information - The company has initiated several CSR and ESG initiatives, including community reforestation and the delivery of low-cost water tanks [21][22] - Avino published its inaugural sustainability report, reflecting its commitment to transparency and responsible growth [23] Q&A Session Summary Question: Progress on La Preciosa access decline - Management confirmed that they have intercepted the Abundancia vein and are a few weeks away from intercepting the Gloria vein [31] Question: Mill throughput expectations for 2026 - The company is currently focused on development ore and is not providing specific throughput targets for this year, but aims for 400 to 500 tons per day by late next year [32] Question: M&A considerations in the current market - Management stated they are focused on organic growth and capital discipline, with no immediate plans for external growth opportunities [33] Question: Third quarter mill availability trends - Management indicated that while they are in a lower grade area, higher grades are expected later in the quarter [38] Question: Clarification on site services at La Preciosa - Site services include installations like compressed air and ventilation systems, as well as facilities for personnel [42] Question: Targeted cash balance for future expansions - Management is evaluating capital needs for future expansions but does not have a specific cash balance target at this time [48] Question: Changes in revenue impacting factors - Management noted improvements in terms with partners and inventory management, which may affect revenue fluctuations [54]

Financial Performance - Revenues increased by 47% from $14.8 million in Q2 2024 to $21.8 million in Q2 2025[37] - Gross profit/mine operating earnings increased by 118% from $4.7 million in Q2 2024 to $10.2 million in Q2 2025[37] - Net income increased by 131% from $1.2 million in Q2 2024 to $2.9 million in Q2 2025[37] - Cash flow from operations increased significantly by 690% from $1.1 million in Q2 2024 to $8.5 million in Q2 2025[37] - Free cash flow improved from negative $0.2 million in Q2 2024 to $4.4 million in Q2 2025[37] Production Results - Silver equivalent production increased by 5% from 616,571 ounces in Q2 2024 to 645,602 ounces in Q2 2025[22] - Silver production increased by 3% from 283,619 ounces in Q2 2024 to 292,946 ounces in Q2 2025[22] - Gold production decreased by 17% from 1,774 ounces in Q2 2024 to 1,514 ounces in Q2 2025[22] - Copper production increased by 12% from 1,305,549 pounds in Q2 2024 to 1,461,980 pounds in Q2 2025[22] Cost Metrics - Cash costs per silver equivalent ounce decreased by 7% from $16.29 in Q2 2024 to $15.11 in Q2 2025[42] - All-in sustaining cash costs per silver equivalent ounce decreased by 8% from $22.74 in Q2 2024 to $20.93 in Q2 2025[42]

Core Viewpoint - Avino Silver (ASM) reported strong quarterly earnings, significantly exceeding expectations, indicating robust financial performance and potential for future growth [1][2]. Financial Performance - The company achieved quarterly earnings of $0.06 per share, surpassing the Zacks Consensus Estimate of $0.02 per share, and showing an increase from $0.03 per share a year ago, resulting in an earnings surprise of +200.00% [1]. - Revenues for the quarter ended June 2025 were $21.81 million, exceeding the Zacks Consensus Estimate by 21.82%, and up from $14.79 million year-over-year [2]. - Over the last four quarters, Avino Silver has consistently surpassed consensus EPS estimates and revenue estimates [2]. Stock Performance - Avino Silver shares have increased approximately 343.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.6% [3]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [6]. Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.03 for the coming quarter and $0.17 for the current fiscal year [7]. - The Mining - Silver industry is ranked in the top 7% of over 250 Zacks industries, suggesting a favorable environment for Avino Silver's performance [8].

[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statements of Financial Position](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) Avino Silver & Gold Mines Ltd. saw significant increases in total assets, equity, and liabilities as of June 30, 2025 Condensed Consolidated Interim Statements of Financial Position (in Thousands of US Dollars) | Item | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | **ASSETS** | | | | Current assets | $59,157 | $40,769 | | Exploration and evaluation assets | $16,129 | $52,890 | | Plant, equipment and mining properties | $95,566 | $53,801 | | Long-term investments | $1,690 | $1,247 | | Other assets | $2,138 | $4 | | **Total assets** | **$174,680** | **$148,711** | | **LIABILITIES** | | | | Current liabilities | $18,542 | $15,534 | | Finance lease obligations | $2,219 | $960 | | Equipment loans | $274 | $27 | | Reclamation provision | $2,350 | $2,062 | | Deferred income tax liabilities | $6,522 | $4,729 | | **Total liabilities** | **$29,907** | **$23,312** | | **EQUITY** | | | | Share capital | $173,527 | $163,325 | | Equity reserves | $10,706 | $11,529 | | Treasury shares | $(97) | $(97) | | Accumulated other comprehensive loss | $(4,521) | $(6,035) | | Accumulated deficit | $(34,842) | $(43,323) | | **Total equity** | **$144,773** | **$125,399** | - **Total Assets increased by $25,969K (17.5%) from $148,711K at December 31, 2024, to $174,680K at June 30, 2025**[1](index=1&type=chunk) - **Total Equity increased by $19,374K (15.4%) from $125,399K at December 31, 2024, to $144,773K at June 30, 2025**[1](index=1&type=chunk) [Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Net income and total comprehensive income substantially increased for the six months ended June 30, 2025 Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (Six Months Ended June 30, in Thousands of US Dollars) | Item | 2025 | 2024 | |:---|:---|:---|\n| Revenue from mining operations | $40,641 | $27,180 | | Cost of sales | $19,855 | $20,144 | | Mine operating income | $20,786 | $7,036 | | Income before other items | $15,008 | $2,903 | | Income before income taxes | $15,367 | $3,306 | | Income tax expense | $(6,886) | $(1,467) | | **Net income** | **$8,481** | **$1,839** | | Currency translation differences | $1,514 | $(124) | | **Total comprehensive income** | **$9,995** | **$1,715** | | Basic income per share | $0.06 | $0.01 | | Diluted income per share | $0.06 | $0.01 | - **Revenue from mining operations for the six months ended June 30, 2025, increased by 49.5% to $40,641K from $27,180K in the same period of 2024**[2](index=2&type=chunk) - **Net income for the six months ended June 30, 2025, surged by 361.2% to $8,481K from $1,839K in the prior year**[2](index=2&type=chunk) - **Mine operating income for the six months ended June 30, 2025, increased by 195.4% to $20,786K from $7,036K in the prior year**[2](index=2&type=chunk) [Condensed Consolidated Interim Statements of Changes in Equity](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity significantly increased due to net income, share issuances, and currency translation differences Condensed Consolidated Interim Statements of Changes in Equity (in Thousands of US Dollars) | Item | Share Capital | Equity Reserves | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Equity | |:---|:---|:---|:---|:---|:---|:---|\n| Balance, January 1, 2025 | $163,325 | $11,529 | $(97) | $(6,035) | $(43,323) | $125,399 | | Common shares issued: At the market issuances | $7,331 | - | - | - | - | $7,331 | | Common shares issued: Exercise of options | $2,255 | $(1,155) | - | - | - | $1,100 | | Common shares issued: Vesting of RSUs | $1,008 | $(1,008) | - | - | - | $- | | Carrying value of RSUs forfeited for withholding taxes | - | $(342) | - | - | - | $(342) | | Issuance costs | $(392) | - | - | - | - | $(392) | | Share-based payments | - | $1,682 | - | - | - | $1,682 | | Net income for the period | - | - | - | - | $8,481 | $8,481 | | Currency translation differences | - | - | - | $1,514 | - | $1,514 | | **Balance, June 30, 2025** | **$173,527** | **$10,706** | **$(97)** | **$(4,521)** | **$(34,842)** | **$144,773** | - **Total equity increased by $19,374K from $125,399K at January 1, 2025, to $144,773K at June 30, 2025**[3](index=3&type=chunk) - **Net income of $8,481K and at-the-market share issuances of $7,331K were significant contributors to the increase in equity for the six months ended June 30, 2025**[3](index=3&type=chunk) [Condensed Consolidated Interim Statements of Cash Flows](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Operating cash flow and total cash balance significantly increased for the six months ended June 30, 2025 Condensed Consolidated Interim Statements of Cash Flows (Six Months Ended June 30, in Thousands of US Dollars) | Activity | 2025 | 2024 | |:---|:---|:---|\n| Net income | $8,481 | $1,839 | | Cash provided by operating activities | $9,108 | $3,425 | | Cash provided by financing activities | $6,635 | $2,429 | | Cash used in investing activities | $(5,757) | $(3,265) | | Change in cash | $9,986 | $2,589 | | Effect of exchange rate changes on cash | $(24) | $34 | | Cash, beginning | $27,317 | $2,688 | | **Cash, ending** | **$37,279** | **$5,311** | - **Cash provided by operating activities increased by 166% to $9,108K for the six months ended June 30, 2025, compared to $3,425K in the prior year**[5](index=5&type=chunk) - **Cash provided by financing activities increased by 173% to $6,635K for the six months ended June 30, 2025, primarily due to shares issued for cash**[5](index=5&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Nature of Operations](index=4&type=section&id=1.%20NATURE%20OF%20OPERATIONS) Avino Silver & Gold Mines Ltd. produces silver, gold, and copper, and explores mineral properties, primarily in Mexico - **Avino Silver & Gold Mines Ltd. is engaged in the production and sale of silver, gold, and copper, and the acquisition, exploration, and advancement of mineral properties**[6](index=6&type=chunk) - **The Company operates the Elena Tolosa Mine (ET Mine or Avino Mine) in Durango, Mexico, and holds 100% interest in the La Preciosa Property**[8](index=8&type=chunk) - **The Company's shares trade on the Toronto Stock Exchange (TSX), NYSE American, and the Frankfurt and Berlin Stock Exchanges**[7](index=7&type=chunk) [2. Basis of Presentation](index=4&type=section&id=2.%20BASIS%20OF%20PRESENTATION) Interim financial statements prepared under IAS 34 (IFRS), in US dollars, using historical cost and accrual basis [Statement of Compliance](index=4&type=section&id=Statement%20of%20Compliance) - **These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 – Interim Financial Reporting under IFRS Accounting Standards**[9](index=9&type=chunk) - **They should be read in conjunction with the Company's December 31, 2024, annual consolidated financial statements**[11](index=11&type=chunk) [Basis of Presentation (Accounting Policies)](index=5&type=section&id=Basis%20of%20Presentation%20(Accounting%20Policies)) - **The consolidated financial statements are expressed in US dollars and prepared on a historical cost basis, except for financial instruments measured at fair value**[12](index=12&type=chunk) - **The accrual basis of accounting and going concern basis have been applied consistently to all periods presented**[12](index=12&type=chunk) [Foreign Currency Translation](index=5&type=section&id=Foreign%20Currency%20Translation) - **Transactions in foreign currencies are recorded at prevailing exchange rates on transaction dates, and monetary assets and liabilities are translated at reporting date rates**[13](index=13&type=chunk) - **For foreign operations, statement of operations items are translated at average rates, while assets and liabilities are translated at period-end rates, with exchange rate variations recognized in accumulated other comprehensive income (loss)**[14](index=14&type=chunk) [Significant Accounting Judgments and Estimates](index=5&type=section&id=Significant%20Accounting%20Judgments%20and%20Estimates) - **Management makes judgments, assumptions, and estimates regarding the impacts on carrying amounts of assets and liabilities and reported revenues and expenses**[17](index=17&type=chunk) - **Critical judgments and estimates for the six months ended June 30, 2025, are consistent with those applied and disclosed in the Company's audited consolidated financial statements for the year ended December 31, 2024**[18](index=18&type=chunk) [Basis of Consolidation](index=5&type=section&id=Basis%20of%20Consolidation) - **The consolidated financial statements include the accounts of Avino Silver & Gold Mines Ltd. and its Mexican subsidiaries, including Oniva Silver and Gold Mines S.A. de C.V., Nueva Vizcaya Mining, S.A. de C.V., Promotora Avino, S.A. de C.V., Compañía Minera Mexicana de Avino, S.A. de C.V., and Proyectos Mineros La Preciosa S.A. de C.V.**[19](index=19&type=chunk)[20](index=20&type=chunk) - **Intercompany balances and transactions, including unrealized income and expenses, are eliminated in preparing the consolidated financial statements**[20](index=20&type=chunk) - **The financial statements are prepared in accordance with IAS 34 – Interim Financial Reporting under IFRS Accounting Standards**[9](index=9&type=chunk) - **They are expressed in US dollars, prepared on a historical cost basis (except for financial instruments measured at fair value), using the accrual basis of accounting on a going concern basis**[12](index=12&type=chunk) - **The consolidated financial statements include the accounts of the Company and its Mexican subsidiaries, with intercompany balances and transactions eliminated**[19](index=19&type=chunk)[20](index=20&type=chunk) [3. Recent Accounting Pronouncements](index=6&type=section&id=3.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) New IFRS Accounting Standards are not expected to materially impact current or future reporting periods - **New and amended IFRS Accounting Standards that are effective for the current year are not expected to have a material impact on the Company in the current or future reporting periods**[21](index=21&type=chunk) [4. Taxes Recoverable](index=6&type=section&id=4.%20TAXES%20RECOVERABLE) Taxes recoverable, mainly Mexican VAT, significantly increased to $704K at June 30, 2025 Taxes Recoverable (in Thousands of US Dollars) | | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\n| VAT recoverable | $637 | $179 | | GST recoverable | $51 | $16 | | Income taxes recoverable | $16 | $- | | **Total** | **$704** | **$195** | - **The Company's taxes recoverable consist of Mexican I.V.A. ('VAT') and income taxes recoverable, and Canadian sales taxes ('GST/HST') recoverable**[22](index=22&type=chunk) [5. Inventory](index=6&type=section&id=5.%20INVENTORY) Total inventory increased to $10,516K at June 30, 2025, driven by concentrate and supplies Inventory Breakdown (in Thousands of US Dollars) | | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\n| Process material stockpiles | $2,704 | $2,520 | | Concentrate inventory | $3,052 | $1,861 | | Materials and supplies | $4,760 | $3,230 | | **Total** | **$10,516** | **$7,611** | - **The amount of inventory recognized as an expense for the six months ended June 30, 2025, totaled $19,855K, compared to $19,760K for the same period in 2024**[24](index=24&type=chunk) [6. Long-Term Investments](index=6&type=section&id=6.%20LONG-TERM%20INVESTMENTS) Long-term investments increased to $1,690K due to fair value adjustments and foreign exchange - **The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9**[25](index=25&type=chunk) Long-Term Investments (in Thousands of US Dollars) | Investment | Fair Value Dec 31, 2024 | Net in foreign exchange | Fair value adjustments for the period | Fair Value June 30, 2025 | |:---|:---|:---|:---|:---|\n| Talisker Resources Common Shares | $685 | $50 | $335 | $1,070 | | Silver Wolf Exploration Ltd. Common Shares | $359 | $15 | $(58) | $316 | | Silver Wolf Exploration Ltd. Warrants | $20 | $1 | $(9) | $12 | | Endurance Gold Corp. Common Shares | $146 | $11 | $74 | $231 | | Endurance Gold Corp. Warrants | $37 | $3 | $21 | $61 | | **Total** | **$1,247** | **$80** | **$363** | **$1,690** | [7. Exploration and Evaluation Assets](index=7&type=section&id=7.%20EXPLORATION%20AND%20EVALUATION%20ASSETS) Exploration and evaluation assets decreased to $16,129K, mainly due to La Preciosa reclassification [Avino, Mexico](index=7&type=section&id=Avino,%20Mexico) - **The Avino Mine area property includes exploration and exploitation concessions, while the Gomez Palacio/Ana Maria property consists of nine exploration concessions**[27](index=27&type=chunk) - **The Company has an option agreement with Silver Wolf Exploration Ltd. for the Ana Maria and El Laberinto properties, with all exploration expenditure requirements met as of June 30, 2025**[29](index=29&type=chunk)[30](index=30&type=chunk) - **The Company holds exclusive rights to explore and mine the La Platosa property ('ET zone') for an initial 15 years, with a 3.5% net smelter returns (NSR) royalty payable to Minerales de Avino, S.A. de C.V.**[32](index=32&type=chunk)[33](index=33&type=chunk) [La Preciosa, Mexico](index=8&type=section&id=La%20Preciosa,%20Mexico) - **On April 1, 2025, the La Preciosa property was reclassified from the exploration and evaluation asset stage to the development stage and mining properties, having demonstrated technical feasibility and commercial viability**[36](index=36&type=chunk) - **An impairment assessment under IFRS 6 was performed prior to reclassification, and no impairment was recorded as the recoverable amount exceeded the carrying value**[36](index=36&type=chunk)[37](index=37&type=chunk) - **La Preciosa is a development stage mineral property located adjacent to Avino's existing operations, hosting one of Mexico's largest undeveloped primary silver resources**[35](index=35&type=chunk) [British Columbia, Canada](index=9&type=section&id=British%20Columbia,%20Canada) - **Endurance Gold Corporation exercised its option to acquire 100% ownership of the Olympic Claims (Minto Gold Mine, Olympic and Kelvin gold prospects) during the year ended December 31, 2024**[38](index=38&type=chunk)[39](index=39&type=chunk) Exploration and Evaluation Assets (in Thousands of US Dollars) | | Avino, Mexico | La Preciosa, Mexico | Canada | Total | |:---|:---|:---|:---|:---|\n| Balance, December 31, 2024 | $15,992 | $36,898 | $- | $52,890 | | Drilling and exploration | $41 | $310 | $- | $351 | | Assessments and taxes | $88 | $12 | $- | $100 | | Transfer to other assets | $- | $(2,215) | | $(2,215) | | Transfer to mining properties (Note 9) | $- | $(35,005) | | $(35,005) | | Effect of movements in exchange rates | $8 | $- | $- | $8 | | **Balance, June 30, 2025** | **$16,129** | **$-** | **$-** | **$16,129** | - **The significant decrease in total exploration and evaluation assets is primarily due to the transfer of $35,005K from La Preciosa, Mexico, to mining properties**[27](index=27&type=chunk) [8. Non-Controlling Interest](index=9&type=section&id=8.%20NON-CONTROLLING%20INTEREST) The Company holds a 99.67% interest in Avino Mexico, with an insignificant non-controlling interest - **The Company had an effective 99.67% interest in its subsidiary Avino Mexico at June 30, 2025, with the remaining 0.33% representing a non-controlling interest**[40](index=40&type=chunk) - **The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and not presented separately in the consolidated financial statements**[40](index=40&type=chunk) [9. Plant, Equipment and Mining Properties](index=9&type=section&id=9.%20PLANT,%20EQUIPMENT%20AND%20MINING%20PROPERTIES) Plant, equipment, and mining properties increased to $95,566K, driven by La Preciosa reclassification and additions Net Book Value of Plant, Equipment and Mining Properties (in Thousands of US Dollars) | Category | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\n| Mining properties | $45,101 | $9,331 | | Office equipment, furniture, and fixtures | $498 | $548 | | Computer equipment | $627 | $763 | | Mine machinery and transportation equipment | $16,887 | $11,034 | | Mill machinery and processing equipment | $20,383 | $20,373 | | Buildings and construction in process | $12,070 | $11,752 | | **Total Net Book Value** | **$95,566** | **$53,801** | - **A significant transfer of $35,005K from exploration and evaluation assets (La Preciosa) to mining properties occurred during the six months ended June 30, 2025**[41](index=41&type=chunk) - **The Company recorded a write-down of $164K against mine and mill machinery and transportation equipment due to damage and obsolescence as of June 30, 2025**[44](index=44&type=chunk) [10. Related Party Transactions and Balances](index=10&type=section&id=10.%20RELATED%20PARTY%20TRANSACTIONS%20AND%20BALANCES) Related party transactions involve key management compensation, intercompany balances, and cost-sharing agreements [Key Management Personnel](index=10&type=section&id=Key%20management%20personnel) - **Compensation costs for key management personnel for the six months ended June 30, 2025, totaled $2,259K, an increase from $1,507K in the prior year, primarily due to higher share-based payments**[46](index=46&type=chunk) [Amounts Due to/From Related Parties](index=10&type=section&id=Amounts%20due%20to/from%20related%20parties) - **Amounts due from related parties increased to $166K at June 30, 2025, from $18K at December 31, 2024, primarily due to amounts receivable from Silver Wolf Exploration Ltd.**[1](index=1&type=chunk)[47](index=47&type=chunk) - **All amounts payable and receivable with related parties are non-interest bearing, unsecured, and due on demand**[47](index=47&type=chunk) [Other Related Party Transactions](index=11&type=section&id=Other%20related%20party%20transactions) - **The Company paid Intermark Capital Corporation (controlled by the President and CEO) $259K for consulting services for the six months ended June 30, 2025, up from $142K in 2024**[48](index=48&type=chunk) - **Transactions with Oniva International Services Corp. for salaries, benefits, office, and miscellaneous expenses totaled $844K for the six months ended June 30, 2025, compared to $743K in 2024**[50](index=50&type=chunk) Key Management Personnel Compensation (Six Months Ended June 30, in Thousands of US Dollars) | Category | 2025 | 2024 | |:---|:---|:---|\n| Salaries, benefits, and consulting fees | $923 | $613 | | Share-based payments | $1,336 | $894 | | **Total** | **$2,259** | **$1,507** | Amounts Due To/(From) Related Parties (in Thousands of US Dollars) | Related Party | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\n| Oniva International Services Corp. | $94 | $95 | | Silver Wolf Exploration Ltd. | $(260) | $(113) | | **Total** | **$(166)** | **$(18)** | - **The Company has a cost sharing agreement with Oniva International Services Corp. for office and administration services, with a 2.5% markup on overhead and corporate expenses**[49](index=49&type=chunk) [11. Reclamation Provision](index=11&type=section&id=11.%20RECLAMATION%20PROVISION) Reclamation provision increased to $2,350K, with activities estimated to begin in 2027 and 2042 - **Management's estimate of the reclamation provision at June 30, 2025, is $2,350K, with an undiscounted value of $5,251K**[51](index=51&type=chunk) - **The present value of the obligation was calculated using a risk-free interest rate of 9.71% and an inflation rate of 3.69%**[51](index=51&type=chunk) Reconciliation of Reclamation Provision (in Thousands of US Dollars) | | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\n| Balance at beginning of the period | $2,062 | $2,195 | | Changes in estimates | $- | $84 | | Unwinding of discount | $100 | $197 | | Effect of movements in exchange rates | $188 | $(414) | | **Balance at end of the period** | **$2,350** | **$2,062** | [12. Share Capital and Share-Based Payments](index=11&type=section&id=12.%20SHARE%20CAPITAL%20AND%20SHARE-BASED%20PAYMENTS) Share capital increased from offerings and exercises; share-based payments expense also rose [Authorized and Issued Shares](index=11&type=section&id=Authorized) - **The Company has an unlimited number of common shares authorized without par value**[53](index=53&type=chunk) - **For the six months ended June 30, 2025, the Company issued 2,872,200 common shares for $7,331K gross proceeds via at-the-market offerings**[54](index=54&type=chunk) - **Additionally, 1,308,296 common shares were issued upon RSU vesting and 1,819,879 common shares from stock option exercises during the same period**[54](index=54&type=chunk)[55](index=55&type=chunk) [Stock Options](index=12&type=section&id=Stock%20options) - **The Company's stock option plan allows for granting stock options of up to 10% of the total issued and outstanding common shares to directors, officers, employees, and consultants**[57](index=57&type=chunk) Stock Options Continuity | | Underlying Shares | Weighted Average Exercise Price (C$) | |:---|:---|:---|\n| Stock options outstanding, January 1, 2024 | 6,666,000 | $1.27 | | Granted | 2,500,000 | $0.78 | | Exercised | (1,301,000) | $1.04 | | Cancelled / Forfeited | (190,000) | $1.26 | | Stock options outstanding, December 31, 2024 | 7,675,000 | $1.15 | | Granted | 2,547,000 | $2.24 | | Exercised | (2,077,000) | $1.43 | | **Stock options outstanding, June 30, 2025** | **8,145,000** | **$1.42** | - **The fair value of stock options is calculated using the Black-Scholes model, with a weighted average fair value of C$1.06 at June 30, 2025, and $863K charged to operations for the six months ended June 30, 2025**[59](index=59&type=chunk) [Restricted Share Units](index=13&type=section&id=Restricted%20Share%20Units) - **The RSU Plan, approved in 2018, grants RSUs to officers, directors, consultants, and employees, with each RSU entitling the participant to receive one common share upon vesting**[60](index=60&type=chunk)[61](index=61&type=chunk) Restricted Share Units Continuity | | Underlying Shares | Weighted Average Price (C$) | |:---|:---|:---|\n| RSUs outstanding, January 1, 2024 | 2,994,709 | $1.03 | | Granted | 1,881,000 | $1.02 | | Exercised | (1,197,709) | $1.15 | | Cancelled / Forfeited | (137,132) | $1.08 | | RSUs outstanding, December 31, 2024 | 3,540,868 | $1.08 | | Granted | 1,547,715 | $2.50 | | Exercised | (1,308,296) | $1.10 | | Cancelled / Forfeited | (443,572) | $1.11 | | **RSUs outstanding, June 30, 2025** | **3,336,715** | **$1.72** | - **For the six months ended June 30, 2025, $819K was charged to operations as share-based payments for the fair value of the RSUs vested**[64](index=64&type=chunk) [Earnings Per Share](index=14&type=section&id=Earnings%20per%20share) Earnings Per Share (Six Months Ended June 30) | | 2025 | 2024 | |:---|:---|:---|\n| Net income for the period | $8,481 | $1,839 | | Basic weighted average number of shares outstanding | 142,194,583 | 131,834,975 | | Diluted weighted average number of shares outstanding | 151,901,381 | 137,207,540 | | **Basic income per share** | **$0.06** | **$0.01** | | **Diluted income per share** | **$0.06** | **$0.01** | - **During the six months ended June 30, 2025, the Company issued 2,872,200 common shares in an at-the-market offering for net proceeds of $7,129K**[54](index=54&type=chunk) - **Share-based payments charged to operations for stock options and RSUs for the six months ended June 30, 2025, totaled $863K and $819K respectively, both showing increases from the prior year**[59](index=59&type=chunk)[64](index=64&type=chunk) [13. Revenue and Cost of Sales](index=14&type=section&id=13.%20REVENUE%20AND%20COST%20OF%20SALES) Revenue from mining operations significantly increased to $40,641K, improving profitability - **All revenues for the six months ended June 30, 2025 and 2024, are attributable to Mexico, from shipments of concentrate from the Avino Mine**[66](index=66&type=chunk) Revenue from Mining Operations (Six Months Ended June 30, in Thousands of US Dollars) | | 2025 | 2024 | |:---|:---|:---|\n| Concentrate sales | $37,702 | $27,020 | | Provisional pricing adjustments | $2,939 | $160 | | **Total Revenue** | **$40,641** | **$27,180** | Cost of Sales (Six Months Ended June 30, in Thousands of US Dollars) | | 2025 | 2024 | |:---|:---|:---|\n| Production costs | $17,971 | $18,143 | | Write down of equipment and materials and supplies inventory | $164 | $384 | | Depreciation and depletion | $1,720 | $1,617 | | **Total Cost of Sales** | **$19,855** | **$20,144** | [14. General and Administrative Expenses](index=15&type=section&id=14.%20GENERAL%20AND%20ADMINISTRATIVE%20EXPENSES) General and administrative expenses increased to $4,096K, mainly due to higher salaries and benefits General and Administrative Expenses (Six Months Ended June 30, in Thousands of US Dollars) | Category | 2025 | 2024 | |:---|:---|:---|\n| Salaries and benefits | $1,826 | $855 | | Office and miscellaneous | $926 | $958 | | Professional fees | $427 | $469 | | Management and consulting fees | $348 | $265 | | Investor relations | $226 | $181 | | Regulatory and compliance fees | $102 | $93 | | Directors' fees | $86 | $90 | | Travel and promotion | $79 | $77 | | Depreciation | $76 | $75 | | **Total** | **$4,096** | **$3,063** | [15. Commitments & Contingencies](index=15&type=section&id=15.%20COMMITMENTS%20%26%20CONTINGENCIES) The Company has cost-sharing and lease commitments, with no material losses expected from legal claims - **The Company has a cost sharing agreement with Oniva International Services Corp. for overhead and corporate expenses, which may be terminated with one-month notice by either party**[70](index=70&type=chunk) Operating Lease Commitments (in Thousands of US Dollars) | Maturity Profile | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\n| Not later than one year | $724 | $180 | | Later than one year and not later than five years | $1,599 | $1,052 | | Later than five years | $3,115 | $3,312 | | **Total** | **$5,438** | **$4,544** | - **At the reporting date, none of the Company's claims and legal proceedings are considered probable of resulting in a material loss or judgment against the Company**[73](index=73&type=chunk) [16. Supplementary Cash Flow Information](index=16&type=section&id=16.%20SUPPLEMENTARY%20CASH%20FLOW%20INFORMATION) Non-cash working capital saw a $4,522K outflow; investing and financing activities significantly increased Net Change in Non-Cash Working Capital Items (Six Months Ended June 30, in Thousands of US Dollars) | Item | 2025 | 2024 | |:---|:---|:---|\n| Inventory | $(2,841) | $(1,100) | | Prepaid expenses and other assets | $(257) | $(417) | | Taxes recoverable | $(508) | $1,532 | | Taxes payable | $288 | $169 | | Accounts payable and accrued liabilities | $2,079 | $(1,943) | | Amounts receivable | $(3,135) | $122 | | Amounts due to related parties | $(148) | $(120) | | **Total** | **$(4,522)** | **$(1,757)** | Non-Cash Investing and Financing Activities (Six Months Ended June 30, in Thousands of US Dollars) | Item | 2025 | 2024 | |:---|:---|:---|\n| Transfer of share-based payments reserve upon vesting of RSUs | $1,008 | $1,018 | | Transfer of share-based payments reserve upon exercise of stock options | $1,155 | $90 | | Equipment acquired under finance leases and equipment loans | $4,014 | $820 | | **Total** | **$6,177** | **$1,928** | - **Interest paid was $136K and taxes paid were $3,590K for the six months ended June 30, 2025**[74](index=74&type=chunk) [17. Financial Instruments](index=16&type=section&id=17.%20FINANCIAL%20INSTRUMENTS) The Company faces credit, liquidity, and market risks, with fair values approximating carrying values for most instruments [Credit Risk](index=16&type=section&id=Credit%20Risk) - **The Company manages credit risk for cash and short-term investments by maintaining them at highly rated financial institutions**[78](index=78&type=chunk) - **A significant concentration of credit risk exists with trade accounts receivable, as all concentrate sales are with two counterparties, but no allowance has been recorded due to consistent full settlement**[79](index=79&type=chunk) - **The Company's maximum exposure to credit risk is equal to the carrying amount of its financial assets as recorded in the consolidated statement of financial position**[80](index=80&type=chunk) [Liquidity Risk](index=17&type=section&id=Liquidity%20Risk) - **The Company manages its liquidity risk by forecasting cash flows and had $37,279K in cash at June 30, 2025, with current assets exceeding current liabilities by $40,615K**[81](index=81&type=chunk) Maturity Profiles of Contractual Obligations (June 30, 2025, in Thousands of US Dollars) | Obligation | Total | Less Than 1 Year | 1-5 years | More Than 5 Years | |:---|:---|:---|:---|:---|\n| Accounts payable and accrued liabilities | $12,174 | $12,174 | $- | $- | | Equipment loans | $612 | $318 | $294 | $- | | Finance lease obligations | $5,315 | $2,956 | $2,359 | $- | | **Total** | **$18,101** | **$15,448** | **$2,653** | **$-** | [Market Risk](index=17&type=section&id=Market%20Risk) - **The Company is not materially exposed to interest rate risk as any material debt obligations that bear interest are fixed and not subject to floating interest rates**[84](index=84&type=chunk) - **Foreign currency risk arises from monetary assets and liabilities denominated in Mexican pesos (MXN) and Canadian dollars (CDN), with a 10% fluctuation impacting earnings by approximately $103K for the six months ended June 30, 2025**[86](index=86&type=chunk) - **The Company is exposed to price risk from amounts receivable (subject to metal price adjustments) and long-term investments (carried at fair value), with a 10% change in metal prices impacting net earnings by approximately $330K at June 30, 2025**[89](index=89&type=chunk)[90](index=90&type=chunk) [Classification of Financial Instruments](index=18&type=section&id=Classification%20of%20Financial%20Instruments) - **IFRS 13 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes inputs to valuation techniques: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)**[92](index=92&type=chunk) Financial Assets Measured at Fair Value (June 30, 2025, in Thousands of US Dollars) | Financial Assets | Level 1 | Level 2 | Level 3 | |:---|:---|:---|:---|\n| Cash | $37,279 | $- | $- | | Amounts receivable | $1,286 | $5,198 | $- | | Due from related parties | $166 | $- | $- | | Derivative asset | $- | $- | $1,439 | | Long-term investments | $1,617 | $- | $73 | | **Total financial assets** | **$40,348** | **$5,198** | **$1,512** | Financial Liabilities Measured at Fair Value (December 31, 2024, in Thousands of US Dollars) | Financial Liabilities | Level 1 | Level 2 | Level 3 | |:---|:---|:---|:---|\n| Derivative liability | $- | $- | $(475) | | **Total financial liabilities** | **$-** | **$-** | **$(475)** | - **The Company's financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk (interest rate risk, foreign currency risk, and price risk)**[76](index=76&type=chunk)[83](index=83&type=chunk) - **The fair values of the Company's amounts due to related parties and accounts payable approximate their carrying values because of their short-term nature**[75](index=75&type=chunk) - **IFRS 13 establishes a fair value hierarchy (Level 1, Level 2, Level 3) for classifying financial instruments measured at fair value**[92](index=92&type=chunk) [18. Segmented Information](index=19&type=section&id=18.%20SEGMENTED%20INFORMATION) The Company operates a single segment (Avino Mine, Mexico), with revenues from silver, copper, and gold - **The Company has determined that each producing mine represents an operating segment, and as of June 30, 2025, there is one single reportable operating segment: the Avino Mine in Mexico**[95](index=95&type=chunk)[96](index=96&type=chunk) Revenue by Product Mix (Six Months Ended June 30, in Thousands of US Dollars) | Product | 2025 | 2024 | |:---|:---|:---|\n| Silver | $15,948 | $11,784 | | Copper | $14,335 | $11,832 | | Gold | $13,117 | $6,535 | | Penalties, treatment costs and refining charges | $(2,759) | $(2,971) | | **Total revenue from mining operations** | **$40,641** | **$27,180** | Revenue by Customer (Six Months Ended June 30, in Thousands of US Dollars) | Customer | 2025 | 2024 | |:---|:---|:---|\n| Customer 1 | $37,484 | $21,287 | | Customer 2 | $3,157 | $450 | | Other customers | $- | $5,443 | | **Total revenue from mining operations** | **$40,641** | **$27,180** | [19. Subsequent Events](index=20&type=section&id=19.%20SUBSEQUENT%20EVENTS) Subsequent events include additional share issuances from offerings and option exercises, generating $12,267K and C$243K - **Subsequent to June 30, 2025, the Company issued 3,129,100 common shares in at-the-market offerings for gross proceeds of $12,267K**[100](index=100&type=chunk) - **The Company also issued 171,250 common shares through stock option exercises at an average exercise price of C$1.42, generating C$243K in proceeds, subsequent to June 30, 2025**[100](index=100&type=chunk)

Core Insights - Avino Silver & Gold Mines Ltd. (ASM) is expected to report a year-over-year decline in its bottom line despite an increase in revenues for the second quarter of 2025, with results to be announced on August 13 after market close [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Avino Silver's second-quarter revenues is $18.30 million, reflecting a year-over-year growth of 23.7% [2] - The consensus estimate for earnings has increased by 50% over the past 60 days to three cents per share, indicating in-line results with the previous year's quarter [2] Earnings Surprise History - Avino Silver has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 104.2% [3][4] Production and Performance Factors - Silver-equivalent production for Q2 is estimated at 645,602 ounces, a 5% increase from the same quarter in 2024, driven by improved mill availability [5][7] - Gold production rose by 17% to 1,774 ounces, while silver production decreased by 3% to 283,619 ounces, and copper production increased by 12% to 1.46 million pounds [8] Commodity Price Trends - In the April-June 2025 period, gold prices averaged around $3,301.42 per ounce, a 41% year-over-year increase, while silver prices rose by 16% and copper prices increased by 5% [9] Cost Factors - Increased prices of gold, silver, and copper, along with higher production levels, are expected to positively impact ASM's top-line results, although these gains may be offset by higher general and administrative expenses [10] Stock Performance - Avino Silver's stock has surged 332.5% year-to-date, significantly outperforming the industry average growth of 50.3% [11]

Group 1 - Avino Silver's stock closed at $3.56, reflecting a +1.42% change from the previous day's closing price, outperforming the S&P 500 which gained 0.73% [1] - Over the past month, Avino Silver's shares have decreased by 0.57%, while the Basic Materials sector has lost 1.45% [1] Group 2 - The upcoming earnings report for Avino Silver is scheduled for August 13, 2025, with an expected EPS of $0.03, indicating no change from the same quarter last year [2] - Revenue is projected to be $18.3 million, representing a 23.73% increase from the previous year [2] Group 3 - For the entire year, the forecasted earnings per share is $0.17, showing a +13.33% change compared to the previous year, with revenue expected to reach $84.3 million, up +27.38% [3] - Recent analyst estimate revisions suggest a favorable outlook on Avino Silver's business health and profitability [3][4] Group 4 - The Zacks Rank system indicates Avino Silver currently holds a rank of 1 (Strong Buy), with a consensus EPS projection that has increased by 13.33% in the past 30 days [5] - The average annual gain for 1 ranked stocks has been +25% since 1988, highlighting the potential for strong performance [5] Group 5 - Avino Silver's Forward P/E ratio is 20.65, which aligns with the industry average, indicating no significant deviation [6] - The Mining - Silver industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 14, placing it in the top 6% of over 250 industries [6][7]