Avino Silver & Gold Mines Ltd.

Avino reported Q2 2026 revenue of $26.8 million, with 54% of revenue from silver ounces sold at an average realized price of $68.90 per silver ounce. Net income was $10.9 million, or $0.06 per diluted share, compared with $2.9 million, or $0.02 per share, in Q2 2025. Gross profit margin was 48% inclusive of non-cash items and 54% on a cash basis. Operating cash flows were $13.3 million, after working capital adjustments $8.3 million, and free cash flow was $5.6 million excluding La Preciosa development costs and capitalized/expensed exploration. Cash ended the quarter at a record $144 million and working capital was $141 million. For production, consolidated output was 535 thousand silver equivalent ounces and 185 thousand tons of total mill feed. Looking ahead, management said La Preciosa is close to 500 tons per day and full-year drilling is budgeted at 15 thousand meters across La Preciosa and Avino; no formal companywide revenue or EPS guidance was stated.

David Wolfin framed the quarter as another step toward becoming a diversified multi-asset mid-tier producer in Mexico. He emphasized the inaugural reserve/resource update, continued progress at La Preciosa, and the company’s ability to fund growth from a strong balance sheet and cash generation at Avino. His tone was upbeat and confident, with repeated references to transformational growth, resource expansion, and long-term shareholder value.

Nathan Harte focused on the financial quality of the quarter and the factors that affected margins. He cited $26.8 million of revenue, $10.9 million of net income, $13.3 million of operating cash flow, $5.6 million of free cash flow, $144 million of cash, and $141 million of working capital, while noting no secured debt aside from equipment leases. He said margin pressure came from $5 million of provisional pricing adjustments, higher concentrate inventory, and a stronger Mexican peso, and stressed that current La Preciosa costs reflect development ore and are not indicative of longer-term unit costs.

Analysts pressed management on drilling results, cost inflation, provisional pricing, production mix, and the timing of La Preciosa ramp-up. Management said drilling has shifted toward exploration and step-out holes, but they are waiting to combine results with future reserve/resource updates rather than release isolated data. On costs, they said drilling inflation is only modest and that La Preciosa’s current costs are tied to development material; they also said they are re-evaluating the La Preciosa production plan and will need more time to give a more precise timeline for reaching 500 tons per day and full production. They declined to hedge metals in the near term and said they may consider disclosing the provisional pricing impact earlier in future releases.