Avino Silver & Gold Mines Ltd (NYSEAM:ASM) 2025 Conference Transcript

Financial Data and Key Metrics Changes - The company generated free cash flow of $4.5 million, inclusive of all development costs at La Presiosa and Avino, with all-in costs around $20.21 per ounce, indicating profitability at current silver prices [6][7] - As of the end of the second quarter, the company had $37 million in cash and over $40 million in working capital, which has increased to approximately $50 million recently [8][25] - The company is debt-free, except for operating leases, providing significant room for growth [8][25] Business Line Data and Key Metrics Changes - The Avino mine is currently producing approximately 2.5 to 2.8 million ounces of silver equivalent, on target for this year's guidance [2][4] - La Presiosa is in the development phase, with production expected to start next year, focusing on low capital expenditures by trucking ore to the Avino mill [3][4] - The oxide tailings project has a projected capital expenditure of $50 million, with a net present value (NPV) of approximately $160 to $170 million at current spot prices [4][18] Market Data and Key Metrics Changes - The company aims to grow production to 8 million ounces by 2029, with a focus on becoming Mexico's next intermediate silver producer [5][24] - By 2029, the company expects 90% of its production to come from silver and gold, primarily focusing on silver [6][24] Company Strategy and Development Direction - The company is focused on transforming from one producing asset to three producing assets over the next four years, with a strategic growth plan centered on silver and gold in Mexico [4][24] - The company has revamped its balance sheet and is committed to organic growth, emphasizing sustainability and community engagement [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current silver price environment and its impact on profitability, indicating a positive outlook for the third quarter [6] - The company has successfully obtained underground mining permits, which is a significant achievement in the current regulatory landscape in Mexico [20][29] Other Important Information - The company has a resource base of approximately 370 million ounces of silver equivalent, with over 60% being silver [4][18] - Recent drill results at La Presiosa have shown high-grade silver, with some drill holes reporting up to 1,600 grams of silver over significant widths [11][15] Q&A Session Summary Question: Do you export the concentrates or sell them locally? - The company primarily sells to Samsung C and T, with a partnership that includes a $10 million investment for mill expansion, but also sells to other local buyers [27] Question: Congratulations on obtaining permits from Mexico. - The company received underground mining permits in Q1 2025, which is a significant achievement as only a few others received similar permits [29] Question: Are you looking at M&A opportunities and will you remain a pure Mexican producer? - The company is focused on Mexico, particularly Durango, and while they are open to good projects elsewhere, their primary focus remains on their current operations [32][33]