Avino Silver & Gold Mines Ltd. (ASM) Q2 2025 Earnings Conference Call Transcript
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Overview
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.
Key Financial Performance
Revenue $21.8 million, up 47% from Q2 2024. This increase was attributed to higher production volumes and improved mill availability.
Gross Profit $10.2 million, with gross profit margins at 45%, up from 32% in Q2 2024. The improvement was due to higher revenues and operational efficiencies.
Net Income $2.9 million, translating to earnings per share of $0.02, up from $1.2 million or $0.01 per share in Q2 2024. This increase was driven by higher revenues and improved cost management.
Adjusted Earnings $8.8 million or $0.06 per share, compared to $4.3 million or $0.03 per share in Q2 2024, representing over 100% improvement due to operational efficiencies and higher production.
Cash Flow from Operating Activities $8.5 million or $0.06 per share, showing improvement from Q2 2024 due to increased revenues and cost efficiencies.
Free Cash Flow $4.4 million, with $6.5 million generated from Avino operations alone. This was an improvement from Q2 2024, attributed to higher production and better cost management.
Cash Cost per Silver Equivalent Ounce $15.11, down 7% from Q2 2024, due to operational efficiencies and higher production volumes.
All-in Sustaining Cash Cost per Silver Equivalent Ounce $20.93, down 8% from Q2 2024, reflecting improved cost management and operational efficiencies.
Cash Position $37.3 million at the end of Q2 2025, up over $10 million from the previous quarter and year-end, due to improved cash flow from operations.
Working Capital Over $40 million at the end of Q2 2025, an increase of over $9 million from Q1 2025, driven by higher cash reserves.
Silver Equivalent Production 646,000 ounces, up 5% from Q2 2024, driven by improved mill availability.
Gold Production Increased by 17% due to higher tonnes processed and improved gold recoveries (74% vs. 70% in Q2 2024).
Copper Production 1.5 million pounds, up 12% from Q2 2024, attributed to higher processing volumes.
Silver Production 284,000 ounces, a slight decrease of 3% from Q2 2024, due to lower feed grades in the mine sequencing.
Cost per Tonne Processed (Cash Basis) $52.61, down 24% from Q2 2024, due to higher mill throughput and better mill availability.
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Operating Highlights
La Preciosa Development: Blasting and construction of the 360-meter San Fernando main access decline is underway. Equipment mobilization has expedited development, and a new jumbo drill is progressing towards intercepting the Gloria and Abundancia Veins. Site services have been installed, and an existing building has been renovated for site personnel.
Production Expansion: Avino achieved record mill throughput of 190,987 tonnes, a 36% increase from Q2 2024. Gold production increased by 17%, and copper production rose by 12%. Silver equivalent production increased by 5% to 646,000 ounces.
Revenue Growth: Revenue increased by 47% year-over-year to $21.8 million, marking the second-highest in company history. Gross profit margins improved to 45%, up from 32% in Q2 2024.
Cost Efficiency: Cash cost per silver equivalent ounce decreased by 7% to $15.11, and all-in sustaining costs dropped by 8% to $20.93 per ounce.
Operational Efficiencies: Efficiency improvements and automation enhancements led to record mill throughput and reduced downtime. Cost per tonne processed decreased by 24% year-over-year.
Hedging Program: A hedging program for the Mexican peso offset foreign exchange losses, resulting in a $1.5 million derivative asset on the balance sheet.
Growth Strategy: Avino is focused on organic growth with its three key assets within a 20-kilometer footprint. The company plans to scale up production by 2029, leveraging existing resources and infrastructure.
Exploration and Reserves: Delineation drilling at the Avino Mine and La Preciosa is ongoing to update resource estimates and publish the first mineral reserve estimate in Q1 2026.
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Risk or Challenges
Tariff and Currency Risks: Tariff discussions and currency fluctuations, particularly between the USD and Mexican peso, pose uncertainties. While there have been no direct impacts yet, managing these risks will be critical to avoid potential cost increases.
Lower Grade Mining Areas: Current mine sequencing has led to operations in lower-grade areas, which has slightly decreased silver production and could impact overall production efficiency and profitability.
La Preciosa Development Risks: The development of La Preciosa involves significant capital expenditures and operational challenges, including ensuring timely progress and managing costs effectively to meet production targets.
Operational Downtime Risks: While mill availability has improved, maintaining minimal downtime is crucial to sustaining production levels and cost efficiency.
Market and Revenue Volatility: Revenue is subject to fluctuations in precious metal prices and treatment charges, which could impact financial performance.
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Guidance & Outlook
2025 Annual Production Guidance: Avino's 2025 annual production guidance is set at 2.5 million to 2.8 million ounces of silver equivalent.
La Preciosa Development Timeline: Blasting and construction of the San Fernando main access decline is underway, with progress on track. The Gloria vein is expected to be intercepted in the coming weeks.
La Preciosa Throughput Goals: The goal for 2026 is to ramp up throughput to 400-500 tonnes per day, filling the two smaller circuits of the mill.
Exploration and Resource Updates: Delineation drilling at the Avino Mine commenced in April 2025, with plans to test the down-dip extension of the Avino Vein. A resource estimate update and the first mineral reserve estimate are expected in Q1 2026.
Capital Deployment and Growth Plans: Avino is deploying capital for La Preciosa development and evaluating potential expansions at the Avino mill and Oxide Tailings Project. The company is focused on organic growth and disciplined capital management.
Cost Management and Profitability: Cash costs per silver equivalent ounce are $15.11, with all-in sustaining costs under $21 per ounce. The company aims to maintain competitive cost structures as it transitions to a multi-asset producer.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Review of Unclear Management Responses
A:
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
ATM
Avino Mine
CSR
Financial
Gold
Head Investor
Investor Relations
National
President CEO
Silver
Slide
Wolfin
balance sheet
basis cash
cash balance
cash cost
cash flow
cash position
drill
expansion
figure
grade
highlight
improvement
milestone
mill availability
mineral
production ounce
reduction
resource reserve
silver
statement
term
throughput
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
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