Avino Silver & Gold Mines TSE: ASM reported record first-quarter 2026 financial results, with management pointing to stronger precious metals prices, continued mill performance and rising contributions from the La Preciosa development project as key drivers of the period.
President and CEO David Wolfin said the company is continuing to advance what it describes as a “transformational growth” strategy, moving from a single-mine operator toward a diversified, multi-asset producer in Mexico. During the quarter, Avino produced just over 568,000 silver equivalent ounces and processed 185,000 tonnes of total mill feed, which Wolfin said was 11% higher than the first quarter of 2025.
“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,” Wolfin said.
Record Revenue and Earnings
Chief Financial Officer Nathan Harte said Avino generated record revenue of $39.4 million in the first quarter. Silver accounted for 60% of revenue, with Harte citing an average realized price of $86.42 per silver ounce.
Net income reached $15.9 million, or $0.09 per diluted share, which Harte said was Avino’s highest-ever first-quarter earnings result. That compared with $5.6 million, or $0.04 per share, in the first quarter of 2025, and $10.5 million, or $0.06 per share, in the prior quarter.
Adjusted earnings were $24.3 million, or $0.14 per share, compared with just under $10 million, or $0.07 per share, in the year-earlier quarter. Operating cash flow before working capital adjustments was $18.7 million, or $0.11 per share. Harte said free cash flow, excluding La Preciosa development costs, was a quarterly record at $17.2 million.
Avino ended the quarter with $139 million in cash and working capital of $140 million. Harte said the company has no secured debt other than leases on operating equipment at the Avino and La Preciosa sites.
Costs Rise, but Management Points to Price and Development Effects
Cash costs per payable silver equivalent ounce were $24.46 in the first quarter, up 16% from $21.10 in the prior quarter. All-in sustaining cash costs were $34.72 per ounce, up 10% from $31.59 in the fourth quarter of 2025.
Harte said the increases were partly due to the addition of La Preciosa development material and the impact of higher silver prices on silver equivalent ounce calculations. He said La Preciosa material currently being processed is development material, not yet representative of the operation’s long-term cost expectations.
“We are in a unique position that a lot of the development from La Preciosa is in ore,” Harte said, adding that current metal prices allow the company to process that material “at a meaningful profit.”
On a per-tonne basis, cash costs were $64.04, below the company’s 2026 guidance range, while all-in costs were $90.80 per tonne, slightly above the range, according to Harte.
La Preciosa Remains Central to Growth Plan
Wolfin said La Preciosa contributed more than 14,000 tonnes of material during the quarter, with throughput averaging roughly 200 to 230 tonnes per day. He said contributions from La Preciosa development exceeded plan, while grades improved toward the end of the quarter.
Avino is targeting 500 tonnes per day from La Preciosa. In response to an analyst question, Peter Latta, vice president of technical services, said the company remains focused on development work that will support lower-cost production mining and fill two mill circuits. Latta said the next major step above 500 tonnes per day would be 1,000 tonnes per day, enough to fill another circuit.
Management also discussed the potential for longer-term expansion. In response to a question from Cantor Fitzgerald analyst Matthew O’Keefe, company representatives said Avino is conducting community engagement for the oxide tailings project before applying for permits. They also said an outside engineering firm has been engaged to review alternatives for La Preciosa, including higher throughput at Avino or a possible standalone operation at La Preciosa, though no conclusions have been provided yet.
Reserve Milestone and Drilling Plans
Wolfin highlighted the company’s inaugural mineral reserve estimate and updated mineral resource estimate, announced April 16, as a major milestone. He said Avino reported proven and probable mineral reserves of 27 million tonnes containing 127 million silver equivalent ounces at a grade of 145 grams per tonne.
The company also reported measured and indicated mineral resources of 67.7 million tonnes containing 301 million silver equivalent ounces at a grade of 162 grams per tonne, along with inferred resources of 24.8 million tonnes containing 87.6 million silver equivalent ounces at a grade of 123 grams per tonne.
Avino has budgeted 30,000 meters of drilling in 2026, split between 15,000 meters at La Preciosa and 15,000 meters at Avino. Wolfin said the company had drilled 2,600 meters at La Preciosa and 3,000 meters at Avino at the time of the call. Latta said the company expects to meet its La Preciosa drilling target and is adding staff and a fifth drill, with four drills already turning.
Wolfin also said results from the completed 2025 La Preciosa drill program showed “excellent silver grades” from the remaining six holes, totaling 1,400 meters. He said the results were not included in the recent mineral resource update because the data was received after the cutoff period.
Management Says Balance Sheet Supports Expansion
During the question-and-answer session, Harte said Avino does not currently plan to hedge silver production, citing management’s bullish view on silver and a preference to keep shareholders unhedged. He also said the company has “zero plans” to use its at-the-market equity facility at this time, noting that the last use occurred in January when the stock reached all-time highs.
Management reiterated that Avino’s growth strategy is aimed at scaling production by 2029 through its three key assets and existing infrastructure, including the operating mill complex, water, power and tailings storage. Asked how the company defines becoming a mid-tier producer, management said the target developed after acquiring La Preciosa was annual production of 8 million to 10 million silver equivalent ounces, while noting there is no fixed industry definition.
“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,” Wolfin said in closing remarks.
About Avino Silver & Gold Mines TSE: ASM
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 instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Avino Silver & Gold Mines, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Avino Silver & Gold Mines wasn't on the list.
While Avino Silver & Gold Mines currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat's analysts have just released their top five short plays for May 2026. Learn which stocks have the most short interest and how to trade them. Click the link to see which companies made the list.
Get This Free Report
