AVINO SILVER & GOLD MINES LTD Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Avino Silver & Gold Mines performed this year. My goal is to turn complex financial filings into clear information to help you decide if this company fits your investment goals.

1. What does this company do?

Avino is a Canadian mining company based in Vancouver. Since 1968, they have explored and processed silver, gold, and copper at their primary site, the Avino Mine in Durango, Mexico. As a producer, their profit depends on how efficiently they run their mill and how well they manage costs compared to shifting global metal prices.

2. Financial performance: A breakout year

2025 was a strong year for Avino’s bottom line. Revenue hit $92.2 million, up 39.3% from $66.2 million in 2024. Profit reached $26.6 million, a 228% increase over the previous year. This growth was driven by higher silver and copper prices and improved mill efficiency. Even with rising labor and energy costs, they maintained production costs at approximately $18.50 per silver-equivalent ounce.

3. Major wins and challenges

The primary focus is La Preciosa, a high-grade project located 19 kilometers from their main plant. The company is currently constructing a 1.1-kilometer tunnel to access new mineral veins. In 2025, they successfully processed material from La Preciosa, contributing to a total production of 2.6 million silver-equivalent ounces. While they encountered lower silver concentrations in some areas, they compensated for this by increasing the total volume of rock processed by 12%.

4. Financial health

Avino ended 2025 with $12.5 million in cash. They have also filed a plan to raise up to $50 million over the next two years to fund expansion. Investors should note that if the company issues new shares to raise this capital, it may dilute existing ownership and impact earnings per share unless the new projects generate significant returns.

5. Key risks

• Price Swings: Revenue is tied to global silver and copper prices. If these prices drop, profits can decrease because operating costs remain relatively fixed.
• Location Risk: Operating in Mexico requires navigating local mining laws, potential royalty adjustments, and environmental regulations.
• Capital Needs: Developing La Preciosa into a full-scale mine requires significant investment. Delays or cost overruns could necessitate additional borrowing or share issuance.
• Grade Variability: Mining results can fluctuate. If the extracted rock contains less metal than anticipated, the company must process more material to achieve the same output, which increases costs.

6. Competitive positioning

Avino has gained significant market visibility. In 2025, they ranked 5th on the "TSX30," a list of top-performing stocks on the Toronto Stock Exchange. Their inclusion in the VanEck Junior Gold Miners ETF (GDXJ) also provides added credibility and liquidity to the stock.

7. Future outlook

The company is in a growth phase. With the La Preciosa tunnel advancing and their waste-recycling project operating at full capacity, they have set a target to produce 4 million silver-equivalent ounces by 2027.

8. A note for investors

Avino is a growth-focused mining company rather than a dividend-paying utility. To track their progress, keep an eye on quarterly updates regarding production costs and development milestones at the La Preciosa project. These metrics will be the best indicators of whether the company is successfully scaling toward its 2027 production goals.