Avino Silver & Gold Mines (TSE:ASM) outlined record financial results for the fourth quarter and full year 2025, highlighting a return to “primary silver” revenue mix and initial contributions from development material at its La Preciosa project during the company’s year-end earnings call.
Management framed 2025 as a transition year
President and CEO David Wolfin said the company is working to transform from a single-mine operator into a multi-asset Mexican mid-tier producer. Wolfin pointed to progress at the Avino Mine and the start of development and material extraction at La Preciosa as key milestones achieved during 2025.
La Preciosa development material begins contributing to the mill
Wolfin said Avino began extraction, haulage, and processing of mineralized development material from La Preciosa during the quarter at an average rate of 200 tons per day. In total, 11,995 tons of La Preciosa material were processed at the Avino Milling and Processing Facility, which management noted is located 19 kilometers from the La Preciosa mine entrance.
On the operating side, Wolfin said consolidated production remained consistent at approximately 2.6 million silver-equivalent ounces for the year, while total mill feed increased 14% year over year. He also highlighted that La Preciosa contributed just under 12,000 tons of material during the year.
Record revenue, earnings, and cash position highlighted in Q4 and full-year results
Chief Financial Officer Nathan Harte reported that Avino generated record revenue of more than $30 million in the fourth quarter and $92.2 million for the full year, which he said was achieved despite lower ounces sold. Harte said the company also posted its highest-ever quarterly and annual earnings.
- Q4 net income: $10.5 million, or $0.06 per share
- Full-year net income: $26.6 million, or $0.17 per share (compared with $8.1 million, or $0.06 per share, in 2024)
- Q4 adjusted earnings: $16.3 million, or $0.10 per share
- Full-year adjusted earnings: $46.5 million, or $0.29 per share (compared with $21.0 million, or $0.15 per share, in 2024)
Harte said operating cash flow before working capital changes was $19 million in Q4 (or $0.12 per share), and $35.3 million for the year (or $0.22 per share), which he described as quarterly and annual records. He also reported Q4 free cash flow generation of $15.6 million excluding La Preciosa development costs, and annual free cash flow of just over $24 million.
Liquidity was another focus. Harte said the company ended the year with a record cash balance of $102 million and working capital just under $100 million, and added that Avino has no secured debt other than leases on operating equipment at both Avino and La Preciosa.
Costs and margins: per-ounce costs rose, per-ton costs stayed steady
On costs, Harte said 2025 cash costs per silver-equivalent payable ounce were $16.13, up 9% from $14.84 in 2024, while all-in sustaining cash costs were $23.75, up 15% from $20.57 in 2024. However, per-ton performance was more stable: cash costs per ton were $53.69, down 3% from $55.43 in 2024, and all-in costs per ton were flat at roughly $78 per ton.
Harte said mine operating income and margins increased significantly, citing 2025 mine operating income of $48.5 million and a margin of 53%.
He also attributed some Q4 cost increases to processing La Preciosa development material, emphasizing that these development-related costs are “not indicative of long-term” cost expectations. Harte noted that at current metal prices, each ton of development material mined was profitable, and also said changes in silver prices affected silver-equivalent payable ounce calculations and, in turn, per-ounce cost metrics.
Exploration updates, 2026 drilling plan, and expansion discussions
Wolfin highlighted drilling results from La Preciosa released in October 2025 (following August 2025 drilling) and additional holes announced in January, which he said exceeded expectations. He cited select intercept highlights discussed on the call, including:
- 7.9 meters true width of 1.6 kilograms of silver and 2 grams gold, including 15 kilograms of silver and 1.55 grams gold over 0.37 meters true width
- Over 5 meters true width of 787 grams silver and 0.5 gram gold
Management said these intercepts were significantly higher than the average grades in the current resource and suggested potential upside from underground mining methods. Wolfin also said larger widths encountered at La Gloria and Abundancia suggest the deposit still holds geological surprises, and that the original mine plan is evolving with improved understanding. He said independent engineers have been engaged to deliver a strategic plan that extends beyond the original project scope.
Looking to 2026, Wolfin said the company plans approximately 30,000 meters of drilling, split evenly between Avino and La Preciosa. He also said Avino expects to release updated mineral resource estimates and announce its inaugural mineral reserves by the end of the first half of the year. The company’s goal at La Preciosa is to reach a production rate of 500 tons per day.
During Q&A, management discussed several strategic topics, including:
- M&A environment: Harte said the company remains focused on organic growth, adding that “everything’s for sale at the right price,” but that broader market conditions do not fully dictate industry M&A.
- Labor and inflation: Harte said labor cost increases seen in 2024 and 2025 have stabilized somewhat, though management expects some “cost creep” in a rising price environment and is not expecting material changes at this time.
- La Preciosa acceleration: Management said it ordered a new jumbo to support underground development and is working with SRK Consulting while evaluating a larger mine plan.
- Mill expansion: When asked about the possibility of a mill expansion, management responded that it was a “safe assumption” within the next year or two, while noting work is underway to determine the appropriate size and whether expansion occurs at Avino, La Preciosa, or both.
- Mexico/open pit scenario: Management said an open-pit approach at La Preciosa is one of multiple scenarios being evaluated, and referenced a feasibility study completed in 2013 that they described as outdated and under review.
- ATM and dilution: Harte said the company used its ATM as shares hit 52-week or all-time highs but is “staying put” amid a market pullback, while noting shareholder returns remain an industry discussion point and organic growth will require capital.
In closing remarks, management reiterated that 2025 ended with “record-breaking achievements” and said the company remains focused on executing its organic growth plan and delivering additional milestones for shareholders.
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.
