Avino Silver & Gold Mines (ASM) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 financial and operational results, with revenues up 109% year-over-year and 29% sequentially, driven by improved mill performance, strong metal prices, and transformational growth initiatives including completion of a major drill program and inaugural mineral reserve and updated resource estimates.

• Net income after taxes reached a record $15.9 million ($0.09/diluted share), up 183% year-over-year, with EBITDA at $25.5 million, up 163% year-over-year.

• Adjusted earnings were $24.3 million ($0.14/share), more than double the prior year, and operating cash flow before working capital adjustments was $18.7 million.

• 60% of revenues were from silver production at an average realized price of $86.42/oz, reflecting a strategic return to primary silver.

• Strategic focus on expanding from a single-mine operator to a diversified, multi-asset mid-tier producer in Mexico, supported by robust infrastructure and community engagement.

Financial highlights

• Record quarterly revenue of $39.4 million, up 109% year-over-year and 29% sequentially, with gross profit margin at 59% (68% cash basis).

• Net income reached $15.9 million, up 183% year-over-year and 52% sequentially.

• EBITDA rose 163% year-over-year to $25.5 million.

• Operating cash flow before working capital adjustments was $18.7 million, and free cash flow (excluding La Preciosa development) was $17.2 million, both quarterly records.

• Cash position at quarter-end was $139 million, with working capital of $140 million and no secured debt except equipment leases.

Outlook and guidance

• Targeting 15,000 meters of drilling at both La Preciosa and Avino for the remainder of 2026, with 2,600 meters completed by Q1 end.

• Aiming to increase La Preciosa throughput to 500 tons per day by year-end, with potential for further expansion.

• 2026 guidance for cash cost per AgEq oz is $19.00–$21.00; AISC guidance is $25.00–$27.00 per AgEq oz.

• Expectation for silver revenue share to rise in the second half as La Preciosa's contribution grows.

• Five-year growth plan aims to transition to a multi-asset mid-tier producer with significant production increases by 2029.