Avino Silver & Gold Mines Ltd. (AMEX:ASM) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a positive sentiment overall. Record revenues and increased production, alongside reduced costs, indicate strong financial performance. The development at La Preciosa and a robust five-year growth plan are promising. However, lack of clear guidance on dividends and Q2 income, coupled with regulatory and economic challenges, tempers optimism. The Q&A suggests a proactive approach to exploration and technology, but hesitancy in hedging metals and expanding assets. Given the positive financial metrics and strategic developments, the stock price is likely to react positively in the short term.
Key Financial Performance
Revenue $18.8 million, up 52% from Q1 2024; driven by higher realized metal prices and increased production.
Gross Profit $10.6 million, gross profit margin increased to 56% from 90% in Q1 2024; improved operational efficiencies and cost management.
Net Income $5.6 million, up significantly from just over $0.5 million in Q1 2024; attributed to increased revenues and improved margins.
Cash Flow from Operating Activities $7.4 million before working capital adjustments; impacted by $6.6 million in working capital movements.
Cash Cost per Silver Equivalent Ounce $12.62, down 15% from Q1 2024; due to improved operational efficiencies.
All-in Cash Cost per Silver Equivalent Ounce $20.08, slightly down from Q1 2024; impacted by lower ounces sold.
Cash Position $26.6 million at the end of the quarter; consistent with previous levels despite working capital movements.
Working Capital Increased by over $6 million; due to decreases in income taxes payable and increases in inventory and concentrate sales receivable.
Capital Expenditures Just under $2 million; includes deposits on equipment for La Preciosa of about $0.5 million.
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Operating Highlights
Gold Production: Gold production increased 25% to 2,225 ounces, driven by improved feed grade of 17% and significant recovery improvements.
Copper Production: Copper production increased 19%, totaling 1.6 million pounds, due to improved feed grade of 17% and recovery increases.
Silver Production: Silver production increased 6% to 265,681 ounces, with a 10% increase in feed grade.
Revenue Growth: Generated $18.8 million in revenues, up 52% from Q1 of last year, marking the second highest in company history.
Production Guidance: On track to meet 2025 annual production guidance of 2.5 million to 2.8 million ounces of silver equivalent.
Operational Efficiency: Successfully executed a jaw crusher replacement while maintaining regular mill operations, contributing to improved milling efficiencies.
Cost Improvements: Operating costs decreased for another consecutive quarter, enhancing profit margins.
La Preciosa Development: Underground development at La Preciosa has commenced, with blasting and construction of a 360-meter decline underway.
Growth Strategy: Aiming to scale up production by 2029 through existing assets, mitigating risks associated with new project development.
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Risk or Challenges
Competitive Pressures: Tariff discussions continue to create uncertainty in the currencies in which Avino operates, which may impact costs and pricing strategies.
Regulatory Issues: The company is subject to regulatory requirements in Mexico, including income tax payments, which can affect cash flow and financial performance.
Supply Chain Challenges: Working capital movements, including increases in inventory and concentrate sales receivable, have impacted cash flow generation.
Economic Factors: Fluctuations in metal prices and currency exchange rates, particularly the strength of the Mexican Peso against the U.S. Dollar, can influence profitability and operational costs.
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Guidance & Outlook
Growth Strategy: Avino is committed to advancing its growth strategy, focusing on the development of La Preciosa and leveraging existing assets to scale up production by 2029.
Production Guidance: Avino is on track to meet its 2025 annual production guidance of 2.5 million to 2.8 million ounces of silver equivalent.
Capital Expenditures: Capital expenditures in Q1 were just under $2 million, with additional deposits on equipment for La Preciosa of about $0.5 million.
Operational Efficiency: The new mining equipment at La Preciosa is positively impacting operational efficiencies, contributing to increased production across silver, gold, and copper.
Revenue Expectations: Avino generated $18.8 million in revenues for Q1 2025, up 52% from Q1 2024.
Net Income: Net income for Q1 2025 was a record $5.6 million, translating to earnings per share of $0.04.
Gross Profit Margin: Gross profit margin increased to 56% in Q1 2025, significantly improved from previous quarters.
Cash Position: Cash position at the end of Q1 2025 was $26.6 million, with record high working capital of over $31 million.
Cost Projections: Cash cost per silver equivalent ounce was $12.62, the lowest since 2022, with all-in sustaining cash costs at $20.08 per ounce.
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Shareholder Return Plan
Cash Position: $26.6 million at the end of Q1 2025.
Net Income: $5.6 million in Q1 2025, translating to earnings per share of $0.04.
Cash Cost per Silver Equivalent Ounce: $12.62, the lowest since 2022.
All-in Cash Cost per Silver Equivalent Ounce: $20.08.
Capital Expenditures: Just under $2 million in Q1 2025.
Working Capital: Increased by over $6 million.
Revenue: $18.8 million in Q1 2025, up 52% from Q1 2024.
Gross Profit: $10.6 million, with a gross profit margin of 56%.
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Key Q&A
Q:Can you touch on any specific levers that you think you may be able to pull over the next quarter, or so to accelerate development plans at La Preciosa?
A:We were talking with our engineering team about increasing ramp development, and potentially adding another portal.
Q:Do you have any plans to expand on the current exploration program given the strong working capital position?
A:Yes. We’re continuing to drill at ET below Level 17 and looking at drilling to the West along the fault up higher in the system, and over at La Preciosa, but we’re just waiting for one of our drills to be upgraded.
Q:Have you guys given any thought to potentially hedging gold or silver forward?
A:At this time, we considered it, but it’s not something we’re looking at doing as of now, especially on gold and silver.
Q:Do you think you’re in a position now or maybe in the near term to look at rolling up additional assets in Mexico or elsewhere?
A:We’re not looking at that, at this stage. We’re just focused on our internal growth plan.
Q:Where should we expect Q2 mine operating income?
A:We do expect some of that to continue, but there will be fluctuations up and down in grade. I don’t want to say exactly what Q2 and the rest of the year should look like.
Q:At what point do you think there will be meaningful sums of mine income coming from La Preciosa?
A:We don’t really see anything coming until potentially the end of the year, but we’ve been messaging any meaningful income coming in 2026.
Q:Are there any other components in the plan that might take a couple of days of downtime to fix, replace, reinstate?
A:Nothing that we have planned that’s going to require a significant amount of downtime.
Q:Where else might we see uses of that cash?
A:We’re looking to allocate a few extra million dollars towards exploration, and we’re taking another look at some regional exploration targets.
Q:Are you guys looking at any new technologies that are coming out for increasing recovery rates?
A:Yes, we’re always running test work and doing different things to stay up to date on developments.
Q:Is there a possibility of dividends in two, three, five, 10 years?
A:At this time, there’s no policy plan for dividends in the short-term. We want to execute on the growth plans.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding the specific timeline for Q2 mine operating income and the potential for dividends in the future.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CSR
Gold Mines
Head Investor
Investor Relations
Peso
Silver Gold
Slide
balance
basis silver
capital movement
cash basis
cash cost
cash flow
community
concentrate
conference webcast
feed grade
figure
gold copper
highlight
improvement
income
increase
inventory
margin
price
production ounce
record
service
silver ounce
statement
sustainability
website
ASM Transcript
Avino Silver & Gold Mines Ltd. (ASM:CA) Q3 2025 Earnings Call Transcript
Positive11-7
The earnings call highlights strong financial performance with record high cash position and improved net income and adjusted earnings, indicating effective cost management and operational efficiency. Despite increased cash costs per silver equivalent ounce, the company demonstrates strategic focus on growth and disciplined capital management. The Q&A section reveals optimism with high-grade drilling results and ongoing development at La Preciosa. Although some management responses lack specific details, the overall sentiment is positive, supported by strong financial metrics and strategic growth plans.
Avino Silver & Gold Mines Ltd. (ASM) Q2 2025 Earnings Conference Call Transcript
Positive8-14
The earnings call summary reveals strong financial performance with significant revenue and profit growth. Operational efficiencies and cost management improvements are evident, with reduced cash costs and increased production. The strategic initiatives, including the development of La Preciosa and ongoing exploration, indicate a positive outlook. Despite some risks, such as tariff and currency fluctuations, the overall sentiment is positive, supported by optimistic production guidance and improved financial metrics. The lack of specific negative insights from the Q&A session further supports a positive stock price movement prediction.
Avino Silver & Gold Mines Ltd. (AMEX:ASM) Q1 2025 Earnings Call Transcript
Positive5-15
The earnings call presents a positive sentiment overall. Record revenues and increased production, alongside reduced costs, indicate strong financial performance. The development at La Preciosa and a robust five-year growth plan are promising. However, lack of clear guidance on dividends and Q2 income, coupled with regulatory and economic challenges, tempers optimism. The Q&A suggests a proactive approach to exploration and technology, but hesitancy in hedging metals and expanding assets. Given the positive financial metrics and strategic developments, the stock price is likely to react positively in the short term.
Avino Silver & Gold Mines Ltd. (ASM) Q1 2025 Earnings Call Transcript
Positive5-14
Avino reported record revenues and net income, improved operational efficiencies, and a strong cash position with no debt. The company achieved significant revenue growth and reduced cash costs per silver equivalent ounce. While there are competitive pressures and regulatory challenges, the company's financial health and growth plans, including La Preciosa development, are promising. The Q&A highlighted plans for exploration and technological advancements, though some responses lacked clarity. Overall, the financial performance and strategic plans suggest a positive sentiment, likely leading to a stock price increase of 2% to 8%.
ASM Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
