Avino Silver & Gold's Q1 2025: Unpacking Contradictions in Hedging, Dividends, and Growth Strategies

Hedging strategy, La Preciosa contribution, dividend policy and future cash allocation, capital expenditure and exploration focus are the key contradictions discussed in Avino Silver & Gold Mines Ltd.'s latest 2025Q1 earnings call.



Record Financial Performance:
- Avino Silver & Gold Mines reported $18.8 million in revenues for Q1 2025, up 52% from Q1 2024. Gross profit reached $10.6 million, with a margin of 56%.
- The strong financial performance was driven by higher realized metal prices and reduced operating costs, along with increased production in silver, gold, and copper.

Production and Cost Improvements:
- Silver equivalent production increased by 8% to 678,000 ounces in Q1 2025, with gold production up by 25% and copper production up by 19%.
- Cost improvements were evident with the all-in sustaining cash cost per silver equivalent ounce decreasing to $20.08.
- The improvements were due to increased feed grades, better recovery rates, and the diligent work of the operations team.

La Preciosa Development Progress:
- Avino commenced underground development at La Preciosa following necessary permits, with progress on the decline and equipment mobilization.
- This development is critical for future growth and is expected to contribute to increases in metal production and financial performance starting from late 2025 or early 2026.

ESG and CSR Initiatives:
- Avino initiated various ESG and CSR activities such as medical services, solar boiler installations, and infrastructure improvements in local communities, aligning with several UN Sustainable Development Goals.
- These initiatives reflect the company's commitment to responsible business practices and sustainability.