Avino Silver & Gold (ASM) Q3 2026 Earnings Report

The call was predominantly positive, supported by 15% year-over-year silver production growth, advancing La Preciosa development, encouraging exploration results, strong cash generation, substantial liquidity, and a clear long-term expansion strategy. The principal challenges were La Preciosa's development costs being more than 30% above budget, grades remaining below plan, foreign-exchange and industry cost pressures, and revised full-year production and cost guidance. Management remained confident in the transition toward higher-grade production mining and future growth opportunities.

Avino revised full-year production guidance to 2.2-2.5 million ounces of silver equivalent, with cash costs and all-in sustaining costs per ounce revised to a midpoint of $23 and $31 per ounce respectively, and all-in sustaining cost per ton revised to a midpoint of $90 per ton; cash cost guidance is unchanged for the full year. The company intends to complete 15,000 meters of planned drilling at La Preciosa and 15,000 meters of planned drilling at the Avino mine, continue La Preciosa development toward production mining at the La Gloria and Abundancia veins, and achieve a target mining rate of 500 tons per day. For 2027, the expectation is around 200 grams a ton silver and 0.35 or so gold at La Preciosa, while the longer-term objective is more than 10 million silver equivalent ounces of annual production.