Avino Silver & Gold Mines Q1 2026 Earnings Report

Avino Silver & Gold Mines EPS Results

• Actual EPS: C$0.20
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Avino Silver & Gold Mines Revenue Results

• Actual Revenue: $54.82 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Avino Silver & Gold Mines Announcement Details

• Quarter: Q1 2026
• Date: 5/13/2026
• Time: After Market Closes
• Conference Call Date: Thursday, May 14, 2026
• Conference Call Time: 11:00AM ET

Avino is a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company's silver, gold and copper production remains unhedged. The Company intends to maintain long-term sustainable and profitable mining operations to reward shareholders and the community alike through our growth at the historic Avino Property and the strategic acquisition of the adjacent La Preciosa which was finalized in Q1 2022. Early in 2024, the Pre-feasibility Study on the Oxide Tailings Project was completed. This study is a key milestone in our growth trajectory. Avino has been included in the Toronto Stock Exchange's 2025 TSX30¿. Avino has distinguished itself by reaching the 5th position on the TSX30 2025 ranking. As part of Avino's commitment to adopting sustainable practices, we have been operating a dry-stack tailings facility for more than two years with excellent results.

Avino Silver & Gold Mines Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Avino reported record Q1 2026 revenue of $39.4 million, net income of $15.9 million, and adjusted earnings of $24.3 million, driven by strong precious metal prices and solid operating performance.
• Positive Sentiment: The company ended the quarter with a record $139 million cash balance and $140 million of working capital, while also generating a quarterly record $17.2 million of free cash flow before La Preciosa development costs.
• Positive Sentiment: Q1 production reached 568,000 silver equivalent ounces, up 11% year over year, with La Preciosa contributing more than 14,000 tonnes of development material and helping support mill throughput.
• Positive Sentiment: Avino completed its inaugural mineral reserve and updated resource estimate, reporting 127 million silver equivalent ounces of proven and probable reserves across its assets, which management called a transformational milestone.
• Neutral Sentiment: Management kept its La Preciosa ramp-up target at 500 tonnes per day and said a 30,000-meter drilling program is underway, but noted that drilling and mine sequencing are still in progress and future quarter-by-quarter results may vary.

Presentation

[Operator]

Welcome to the Avino Silver & Gold Mines 1st 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 at Avino Silver & Gold Mines]

Thank you, operator. Good morning, everyone, 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 website.

[Jennifer North, Head of Investor Relations at Avino Silver & Gold Mines]

The full financial statements in MD&A are now available on our website under the Investor Center tab, then Reports and Financials. In addition, the full statements are available on Avino's profile on Sedar+ 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, note that certain statements made today on this call by the management team may include forward-looking information within the meaning of applicable securities laws.

[Jennifer North, Head of Investor Relations at Avino Silver & Gold Mines]

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 on our press release of yesterday's date.

[Jennifer North, Head of Investor Relations at Avino Silver & Gold Mines]

On the call today, we have the company's President and CEO, David Wolfin, our Chief Financial Officer, Nathan Harte, 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 U.S. dollars unless otherwise noted. Thank you.

[Jennifer North, Head of Investor Relations at Avino Silver & Gold Mines]

I will now hand over the call to Avino's President and CEO, David Wolfin. David?

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thanks, Jen. 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&A session. Once I've gone through the operational highlights and overall progress during the quarter, I will turn it over to Nathan Harte, Avino's CFO, to discuss the financial results for the period.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Please turn to slide five. 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.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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 Preciosa and welcoming Linda Broughton to our board, who has a track record in operations, sustainability, and the environment. We launched an ambitious 30,000 meter drill program across La Preciosa and Avino. We have currently drilled 2,600 meters at La Preciosa and 3,000 meters at Avino.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Our teams continued to actively manage throughput across all four circuits. Contributions from La Preciosa development exceeded plan, and we are seeing encouraging progress in great improvements, particularly towards the end of the quarter. The key drivers guiding success achieved in Q1 are as follows.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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. Continued advancing La Preciosa with increased tonnage processed during Q1 2026. Throughput averaged approximately 200-230 tonnes per day during the quarter, resulting in more than 14,000 tonnes of material processed.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

The next key driver was the completion of a new mineral reserve estimate and updated mineral resource estimate. This was released on April 16th. 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, further advancing the company towards a multi-asset mid-tier producer.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

We are very pleased to report an inaugural mineral reserve estimate of 127 million silver equivalent ounces across all three assets. The milestone is co-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 our ore bodies and mineralized systems. Together, these results reinforce the depth of our organic pipeline and position of Avino for continued growth and long-term value creation for shareholders.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Next, La Preciosa was an important contributor to our operational progress this quarter, with strategic exploration efforts continuing successfully. The planned 2025 drill program was completed, results were released in late January. We reported excellent silver grades from the remaining six holes, which totaled 1,400 meters drilled. The entire 2025 program consisted of 14 holes for approximately 3,500 meters of drilling.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

La Preciosa also contributed positively to our 1st quarter performance through ongoing extraction, haulage, and processing of development material, supporting elevated mill throughput and operational flexibility. Silver revenues have increased with 60% revenue from silver production in Q1, 2026, record revenues and free cash flow generation. During Q1, precious metal prices remained strong, supporting our operations and contributing positively to our overall financial results.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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 six, we turn to our Q1 production results, which were released on April 23rd and reflect steady operational performance.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

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 seven, we highlight production by operation, showing contributions from both Avino and La Preciosa for the year. We continue to see contribution from La Preciosa delivering just over 14,000 tons during the quarter.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

At this time, I'll hand it over to Nathan Harte, Avino CFO, to present our record financial performance for the first quarter. Nathan?

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Thank you, David, and thank you to all of you for taking the time to join us as we recap our record financial and operating results for the first quarter. Here on slide eight, we have an overview of some key financial and operating highlights, as well as our improved balance sheet with the full table on the next slide.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

In the first quarter, we generated record revenues of $39.4 million, with 60% of our revenues coming from the sale of silver production at an average realized price of $86.42 per silver ounce. Gross profit margins were 59% inclusive of non-cash items and 68% on a cash basis, excluding depreciation and depletion.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Avino recorded its highest ever earnings for Q1, with $15.9 million in net income or $0.09 per diluted share, beating Q1 of last year's totals of $5.6 million or $0.04 per share, as well as the previous record from the prior quarter of $10.5 million or $0.06 per share.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

First quarter adjusted earnings were a record $24.3 million, or $0.14 per share, compared to just under $10 million or $0.07 per share in Q1 of last year and $16.3 million or $0.10 per share last quarter. Operating cash flows and free cash flow both improved compared to Q1 of last year. We generated operating cash flows before working capital adjustments of $18.7 million or $0.11 per share.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Free cash flow generation was $17.2 million, excluding La Preciosa development costs, which was a quarterly record. Moving to liquidity and treasury, our cash position was a record $139 million at the end of the quarter, and working capital was $140 million. Avino has no secured debt other than leases on operating equipment at both the Avino and La Preciosa mining operation sites, and we are well-positioned to execute on all growth options in front of us.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Coming to slide nine, we see all other financial metrics for the first quarter, as well as changes from this past quarter. As everyone can see, almost all categories saw meaningful increases. Highlighting again the per share metrics for the quarter where we see $0.09 earning per share and $0.14 on an adjusted earnings basis.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Here on slide 10, we have an overview of operating results on a per ounce and per ton basis, as well as margins at our operation. Cash cost per payable silver equivalent ounce for Q1 was $24.46, a 16% increase compared to $21.10 in last quarter. All-in sustaining cash costs were $34.72 for the quarter, a 10% increase from $31.59 last quarter. On a per ton basis, cash costs of $64.04 were up 7% compared to $60 per ton last quarter, and all-in costs per ton were flat compared to Q4 of 2025, with both periods being right around $90.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Our mine operating cash flows before taxes and margins for the quarter were significantly improved, with margins at 68% on the quarter and $26.7 million was generated, once again demonstrating the leverage that producers have in this current price environment. In the quarter, we did see some increases in cost per ounce for a few different reasons. The main reason being the addition of processing La Preciosa development material.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

I do want to remind everyone that this is development material running through the mill. We are in a unique position that a lot of the development from La Preciosa is in ore. It allowed us to offset some of the costs associated with development work, which we would have to do regardless. These costs for La Preciosa are not indicative of long-term cost per ounce and per ton expectations.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

However, at current metal prices, each ton of development material mined and processed is being done so at a meaningful profit. Another significant item to highlight is the movement in silver price, which did have an impact on our silver equivalent payable ounce sold calculation, which also has an impact on our cash cost and all-in sustaining cost per ounce figures.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Using the prices from our cost and production guidance we put out at the beginning of 2026, our cash cost per ounce for the first quarter would have come in at $19.82, which is in line with our cost guidance of between $19 and $21 per ounce. On an all-in sustaining cost basis, silver price had a larger impact.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Using the same budget prices, our all-in sustaining cost per silver equivalent payable ounce was $28.14, slightly above our cost guidance range. We do expect this to normalize back into the range as grade improves in our mine sequence in subsequent quarters. Our consolidated cash cost per ton figure of $64.04 came in below our cost guidance range for 2026, and on an all-in basis, we were just above our range at $90.80.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Flipping back to the revenue side, here are the expectations for production and revenues by metal moving forward. Given the recent price movement in silver, we do expect that the silver portion as it relates to revenue will be higher than the estimated graph shown in front of you, especially as La Preciosa contributes more in the second half of the year.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

At this point, I will now turn it back over to David to run through our upcoming activities.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thanks, Nathan. Moving to slide 12, as we summarize our key goals for the remainder of 2026, our focus is on strategic exploration and drilling with 15,000 meters of drilling budgeted for both La Preciosa and Avino, as mentioned earlier on this call. We also look forward to increased production of La Preciosa with a goal of 500 tons per day.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

As mentioned earlier, we completed an inaugural mineral reserve and updated mineral resource estimate. Collectively, our assets host proven and probable mineral reserves of 27 million tons for 127 million silver equivalent ounces at a grade of 145 grams per ton.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

As well as measured and indicated mineral resource totaling 67.7 million tons and 301 million silver equivalent ounces at a grade of 162 grams a ton, with inferred mineral resource totaling 24.8 million tons and 87.6 million silver equivalent ounces at a grade of 123 grams a ton.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Finally, Avino is achieving market recognition, institutional buying and ETF inclusion broadening our investor base. As outlined on slide 13, I'd like to highlight again the company's growth strategy. With a 20-kilometer footprint, we have three key assets, including our operating mill complex, which currently processes material from Avino and La Preciosa.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

We have access to water, power, and tailing storage, critical infrastructure that supports our ability to expand production efficiently. As you can see on this slide, our goal is to scale up production by 2029 through the contributions from our three key assets. By leveraging our existing infrastructure assets and resource base, we believe we are well-positioned to execute our growth plan efficiently and effectively. We rounded out the quarter with more record-breaking financial metrics, which reflects the strength of our strategy and the dedication of our team, both which drive the success as we pursue the next phase of growth.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

We are focused on the future and advancing our path to transformational growth. With decades of work behind us to build this foundation, we remain disciplined in how we manage our financial strength, making thoughtful and strategic decisions to support long-term value creation.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

On behalf of our leadership, thank you to our entire team for your efforts and contributions. We'd now like to move the call to the question-and-answer portion. Operator?

[Operator]

Thank you very much. We will now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause a moment as callers join the queue. Thank you very much. Our first question is coming from Jake Sekelsky of Alliance Global. Jake, your line is live.

[Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global]

Hi, David, Nathan, and team. Thanks for taking my questions.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

No problem.

[Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global]

Just looking at cost, I mean, obviously, we saw a record realized silver price during the quarter. Nathan, you touched on this a bit, but did higher prices trigger any cost pressures outside of that silver equivalent ounce calculation that you mentioned?

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Hey, Jake, good question. Nathan here. Yeah, I guess you might be referencing some of the pressures that are coming from maybe royalties or other items that some other producers are facing.

[Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global]

Yeah, that's correct.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Obviously, La Preciosa is royalty-free. We repurchased that last year, no impact there. At Novillo, there's the long-standing royalty, which we've been able to manage, and it doesn't impact us too bad. Pretty minimal overall. I think the change maybe on a quarter basis about $0.20 a ton or, sorry, $0.20 an ounce. Not overly material to our costs.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

On the other side, obviously, you know, there is profit sharing in Mexico where we ensure that all the workers are compensated fairly. Obviously, additional compensation comes with making money. There's a bit of impact there. Again, nothing outside normal course for us.

[Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global]

Okay, that's helpful. Just on the La Preciosa ramp, any additional color on that transition from development tonnage to the, to the higher grade material? Do you have any targeted throughput in mind that you'd like to be at by, let's call it year-end?

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

Yeah. Thanks, Jake. Peter here. Great question. We are still targeting that 500 tons per day. You know, really, it's about doing the development to look at bringing our cost down when it comes to the production mining, just setting ourselves up for long hauling in these particular areas. That goal is still 500 tons per day to fill those two circuits. Of course, you know, the way our mill is set up, each circuit one and two do 250 tons, more or less each, with circuit three and four doing 1,000 tons. The next step up after 500 tons would have to be 1,000 tons in order to fill one of those circuits.

[Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global]

Makes sense.

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

Okay.

[Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global]

That's all for me. Congrats on the strong quarter again.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thank you.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Thanks, Jake.

[Operator]

Thank you very much. Our next question is coming from Heiko Ihle of HC Wainwright. Heiko, your line is live.

[Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright]

Hey, David and team. Nice to once again be able to raise my target price this morning.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thank you very much.

[Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright]

There was a little paragraph in the press release, where you're talking about the ongoing extraction, haulage, and processing of the development material. There was a little sentence in there that you were slightly below plan early in the quarter. Obviously, we're gonna be halfway through Q2 tomorrow. I just want to see the actual financial impact. I mean, I assume transportation expenses are slightly higher given that you have to, you know, unload and load it one extra time, I would assume. You wanna just maybe give us an idea of what we should use in our model once that's no longer a factor?

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Yeah, Heiko, fair question. I think what you're referencing to is, you know, when silver prices did shoot up, we did process some lower grade material. While obviously the grade is a bit lower, we're still making it at quite a significant profit. Yes, you will see a transition back to kind of what the, you know, the grade expectations that we're looking at internally. The big transition is gonna be once we switch to production mining, which should be coming in subsequent months, the grade will significantly improve.

[Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright]

Fair enough. Also the drill program for the year. You're calling for 50,000 meters of drilling. You did 2,600 in Q3?

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

30,000 meters.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

$30,000.

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

$30,000.

[Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright]

Sorry, I'm talking about just La Preciosa at this point.

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

Got it.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

$15,000.

[Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright]

Okay. You're calling for $50,000. You had $2,600 at the end of Q1. Just the run rate to get up to the $15,000 is $4,130 a quarter. What did you do in Q2, and should this just essentially be a second half type of thing in our models?

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

Yeah. Thanks, Heiko Ihle. I think we're gonna be able to hit the 15,000. We didn't get started for the drilling until kind of midway through Q1, we don't see the full quarter there. You know, we are hiring other extra geologists and bringing in and increasing our staff there to log all the core that's required. We do think that we're gonna hit the required metrics.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Yeah-

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

And we-

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Sourcing a fifth drill.

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

We're adding a fifth drill as well. There's currently four drills turning, as we said in the last press release, and we are adding a fifth.

[Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright]

I'll build on this question. You wanna give me a best guess for your Q2 metrics?

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

Not at this time. We're still going through it. You know, the rock changes every day, right? Some days you get to plow through it, and other days you have issues. That's life on a drill rig.

[Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright]

Fair enough. I tried. I'll get back into you. Thanks, guys.

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

Thank you.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thanks, Heiko.

[Operator]

Thank you very much. Our next question is coming from Joseph Reagor of Roth Capital Partners. Joseph, your line is live.

[Joseph Reagor, Managing Director, Senior Research Analyst at Roth Capital Partners]

Hey, guys. Thanks for taking my questions, and congrats on a strong start to the year. Two kind of, like, accounting questions. One is, depreciation specifically for Avino jumped Q4 to Q1. Is that a reflection of the reserves and now accounting for depreciation over the reserve life, or is there something else in there?

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Joe, yeah, that's a fair question. It is more of a one-time thing, the significant jump. We will have a bit higher than what kinda quarterly you saw in 2025. Yeah, there's definitely a one-time jump there from just an accounting adjustment. That's all.

[Joseph Reagor, Managing Director, Senior Research Analyst at Roth Capital Partners]

Okay. Okay. Looking at your treatment charges, they declined again as a percentage of revenue, in the quarter. Is there anything specific in there one time, or is this just, you know, high demand for silver ore from smelters leads to lower charges for you guys?

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Sorry, you said they declined, right? I have that correctly.

[Joseph Reagor, Managing Director, Senior Research Analyst at Roth Capital Partners]

Yeah. went down both in a total dollar number and in a percentage of revenue.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

We had some improvements and changes in contract terms, and obviously, it's a seller's market right now. Our team, Peter and everyone did a great job negotiating just some better terms for us for the short, medium, and long term. That's probably more reflective of what you'll see moving forward. You know, long term, probably potential improvements as La Preciosa's grade improves as a percentage.

[Joseph Reagor, Managing Director, Senior Research Analyst at Roth Capital Partners]

Okay. All right. That's helpful. My other questions were covered by the prior caller, so I'll turn it over.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Thanks, Joe.

[Operator]

Thank you very much. Our next question is coming from Matthew O'Keefe of Cantor Fitzgerald. Matt, your line is live.

[Matthew O'Keefe, Senior Research Analyst, Metals and Mining at Cantor Fitzgerald]

Thanks, operator. Good morning. Guys, great quarter. Nice to hit some records. Most of my questions were answered. I just had a sort of a longer term one. The last chart you kind of referred to showing your growth profile over the next five years, obviously a big contribution from La Preciosa.

[Matthew O'Keefe, Senior Research Analyst, Metals and Mining at Cantor Fitzgerald]

You do have the oxide tailings in there starting in 28. Just wondering if you could talk, A, about the oxide tailings, if that's still kind of being pushed forward, or any plans there. Also, given the success at Preciosa and the change in metal price environment, are we looking at some accelerating or even more growth potential from La Preciosa?

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

oxide tailings, we're doing community engagement. We need the blessing before we can apply for permits, so that's ongoing. With La Preciosa, we've engaged an outside engineering firm to look at other alternatives, higher throughput at Avino or possibly a standalone operation at La Preciosa, but we don't have that information yet.

[Matthew O'Keefe, Senior Research Analyst, Metals and Mining at Cantor Fitzgerald]

Right. Okay, that's clearly something to be looked at this juncture. Okay, great. That's really it for me. Thanks.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thank you.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Thanks, Matt.

[Operator]

Thank you very much. Our next question is coming from Brendan Hoff, who's a private investor. Brendan, your line is live.

[Operator]

Thank you very much. Kudos on a great quarter, by the way.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thank you.

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

Thank you.

[Peter Latta, VP Technical Services at Avino Silver & Gold Mines]

My question is kinda like, almost. Well, I think it was more of a silly question, so as I kinda ruminate more about it seems more apropos. You talk about becoming a mid-tier producer in Mexico, and I can look up definition of that, but what does that definition mean to you guys? What is it that you are actually what metrics are you gonna hit that you say, "We have made it. We're the mid-tier producer"?

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Well, when we acquired La Preciosa, we looked at that time, what a mid-tier producer looked like, and it was between 8 million-10 million ounces of silver equivalent on an annual basis. That's where we developed the idea to get to. Yeah.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

But, but-

[Nathan Harte, CFO at Avino Silver & Gold Mines]

But, but now-

[Nathan Harte, CFO at Avino Silver & Gold Mines]

To your point, there is no clear definition. There is no clear line.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

The goal with our five-year program was to get to that 8 million to 10 million ounces. Even falling short of that 8 million to 10 million ounces, we could still categorize ourselves as a mid-tier and going above that as well. There isn't a clear definition. It's just, you know, to deliver on our growth plans there.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

The thing is, with the higher metal prices, we are delivering financially almost like a mid-tier at this time. Imagine what's gonna happen with higher throughput.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

It's a good way to put it. I was wondering if you were looking at specific metrics. If it was ounces per year, if it was revenue, if it was profit. I'd imagine you've got, I'm sure, I assume some metrics along the way of like, "Oh, when we hit this for tons processed per day," or, "We wanna hit this metric for revenue per quarter," and so forth, to say that, "Yes, we've made it.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

No, that's fair. I think, you know, we'd evaluate all of those, but I think the number one target was production. Obviously you're gonna, you know, if we hit the production targets, our revenue is gonna go up even more significantly with the rise in metal prices, too.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Another metric you can look at is price to net asset value. The three mid-tiers that were taken out last year, MAG, SilverCrest, and Gatos, were all well over two. We're sitting around one, that's another target of ours.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Okay, great. Thanks a lot, guys.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Thank you.

[Operator]

Thank you very much. Our next question is coming from Atul Bagga of Abbott. Atul, your line is live.

[Analyst]

Hi. It's actually Carl. Thanks, operator. Great quarter, as everyone has said. Guys, congratulations on that. Two questions that people haven't mentioned so far. First one is, I wonder if, given the high price environment we've had, whether there have been any further discussions internally on the possibility of hedging a portion of production. I know previously you guys have not been keen on that, obviously the price dynamic has changed considerably.

[Analyst]

Secondly, you continued to use the ATM facility during Q1, just wondered, again, what are the thoughts on the possibility of that going forward? Is that something that you guys feel, given the balance sheet being where it is no longer a requirement, no longer something that you're gonna lean on, or do you still have potential usage of that in mind?

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Hey, Nathan here. Those are good questions. Thank you for asking. Number one, on the hedging side, obviously we're very bullish on the silver price. We've, you know, obviously the industry's talked about that a lot, but we prefer to have our shareholders unhedged, and I think our shareholders also appreciate that. We've looked, you know, at our non-primary metals as well too, you know, copper being one of them, and there's some very large price increases going on this quarter. No, we're not in a position right now where we plan to hedge any of our silver production.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

One thing I will highlight, though, is we, you know, based on some optionality in our contracts, we were able to deliver higher realized silver prices than the average for the quarter too. There is the opportunity to take advantage when we want, but we are, we're not in a position where we wanna hedge future production at this time.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

ATM.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Yeah, the 2nd question on the ATM, that was in January, I think the last time we used it, when we hit all-time highs. As of now, we have zero plans to use the ATM. I think, yeah, that's something, you know, we're A lot of us are big shareholders in this room too, and we're looking to preserve that share capital structure.

[Analyst]

Fantastic. Thanks, Nathan.

[Nathan Harte, CFO at Avino Silver & Gold Mines]

Thank you.

[Operator]

Thanks very much. Just to double-check there, if anyone else has any remaining questions, you can join the queue by pressing star one now. Okay, I'm not seeing anyone else in the queue, so we have reached the end of our question and answer session, and I will now hand back over to David Wolfin for closing comments.

[David Wolfin, President and CEO at Avino Silver & Gold Mines]

Thank you again to everyone for joining us today and for your continued interest and support of Avino Silver & Gold Mines. We are encouraged by the strong start to 2026 and remain focused on executing our clear path for transformational growth. With continued operational improvements, advancement at La Preciosa, and a strong balance sheet and a disciplined approach to capital allocation, we believe Avino is well-positioned to continue creating long-term value for our shareholders. We look forward to updating you on our progress in the coming quarters. Have a great day.

[Operator]

Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.

Participants

Executives

• David Wolfin, President and CEO
• Jennifer North, Head of Investor Relations
• Nathan Harte, CFO
• Peter Latta, VP Technical Services

Analysts

• Heiko Ihle, Managing Director, Equity Research at H.C. Wainwright
• Jake Sekelsky, Managing Director and Head of Metals and Mining Research at Alliance Global
• Joseph Reagor, Managing Director, Senior Research Analyst at Roth Capital Partners
• Matthew O'Keefe, Senior Research Analyst, Metals and Mining at Cantor Fitzgerald
• Analyst