Avino Silver & Gold Mines Ltd (NYSE: ASM)

Avino Silver & Gold Mines Ltd. was incorporated in 1968 under the laws of the Province of British Columbia Canada. The company’s head office and principal place of business is located at Suite 900 570 Granville Street Vancouver BC Canada. It is a reporting issuer in both Canada and the United States and its shares trade on the TSX the NYSE A and the Frankfurt and Berlin Stock Exchanges. The core business of Avino Silver & Gold Mines Ltd. involves the evaluation acquisition exploration development and operation of precious metals and polymetallic mineral properties. The company’s primary focus is Mexico where it owns and operates the Avino Mine on the Avino property in the state of Durango. Commercial production at the Avino Mine was declared effective July 1 2015 and the mine has continued to produce copper concentrates containing silver gold and copper since that date. In addition to the Avino Mine the company holds a 100 percent interest in the La Preciosa property also situated in Durango approximately twenty kilometres southwest of the Avino Mine. La Preciosa is currently in the advanced exploration and early development stage with underground work having commenced in 2025 after receipt of required permits. The company’s other mineral holdings in Canada are considered non core and have been optioned sold or otherwise relinquished in recent years. Through these activities Avino Silver & Gold Mines Ltd. seeks to build a diversified base of producing and near term production assets in Mexico.

Avino Silver & Gold Mines Ltd. generates revenue from the sale of copper concentrates that contain silver gold and copper produced at the Avino Mine. The ore mined at the underground operation is milled on site to produce a concentrate that is filtered dried and prepared for shipment. The company typically achieves grades in the range of several hundred grams per tonne of silver and a fraction of a gram per tonne of gold along with copper percentages that support a marketable concentrate. Revenue is realized when the concentrate is delivered to purchasers under the terms of sales agreements. Avino has entered into a long term concentrate sales agreement with Samsung C&T U. K Limited which provides a defined outlet for a portion of its annual production. In 2025 the company reported mining revenue of ninety two million two hundred twenty seven thousand dollars compared with sixty six million one hundred seventy eight thousand dollars in 2024 and forty three million eight hundred eighty nine thousand dollars in 2023. Beyond concentrate sales Avino occasionally receives proceeds from the divestiture of non core properties such as the sale of its Eagle Property in the Yukon to a subsidiary of Hecla Mining Company for cash consideration of two hundred fifty thousand Canadian dollars in 2023. The company also earns modest amounts of interest income and gains or losses on financial instruments which are reported separately in its financial statements. Overall the bulk of Avino’s turnover is derived from the production and sale of its metal concentrates.

Avino Silver & Gold Mines Ltd. operates within the competitive global mining sector where larger multinational companies often possess superior financial resources and technical expertise. The firm competes for access to prospective mineral properties in Mexico a jurisdiction that attracts numerous exploration and development companies due to its rich mineral endowment. Despite the presence of bigger peers Avino benefits from having an operating mine that generates cash flow and provides a platform for further investment. The Avino Mine’s established infrastructure underground workings milling facility and tailings management system reduce the capital intensity required to expand production compared with starting from scratch. The company’s advanced stage project at La Preciosa adds value by offering a potential second source of production that could be brought online within a few years. Avino’s long term concentrate sales agreement with Samsung C&T U. K Limited helps mitigate price volatility and secures a reliable customer for a portion of its output. The management team’s focus on maintaining low operating costs and disciplined capital allocation supports the company’s ability to generate positive mine operating income even during periods of modest metal prices. These factors collectively give Avino a competitive niche as a junior producer with a producing asset and a clear development pipeline.

The company’s customers are primarily smelters traders and other processors that purchase copper concentrates for further refining into metal products. While Avino is not dependent on a single purchaser its long term agreement with Samsung C&T U. K Limited provides a defined counterpart for a share of its sales volume. The remainder of the concentrate is sold on the open market to a variety of international buyers that include metal trading houses and industrial consumers. Avino emphasizes that the availability of alternate processing and commercialization options for its concentrates reduces reliance on any specific client. The company’s sales strategy aims to achieve transparent pricing linked to prevailing market quotations for silver gold and copper. In addition to concentrate sales Avino maintains relationships with logistics providers port authorities and customs agencies to ensure timely delivery of its product to customers. The firm also works with assay laboratories and inspection companies to verify the quality and content of each shipment before it leaves the mine site. Overall the customer base consists of a diverse group of entities involved in the downstream processing and trading of base and precious metals.