Contradictions Uncovered: Analyzing None's Q2 2025 Earnings Call on Hedging, M&A, and Production Challenges

Hedging strategy, M&A strategy, La Preciosa production timeline, La Preciosa throughput ramp, and inflationary pressures and cost management are the key contradictions discussed in None's latest 2025Q2 earnings call.



Strong Financial Performance and Operating Metrics:
- Avino Silver & Gold Mines reported $21.8 million in revenues for Q2 2025, up 47% from Q2 2024.
- Gross profit reached $10.2 million, with a 45% gross profit margin, up from 32% in Q2 2024.
- The increase in revenues and profitability was driven by robust production and improved operational efficiencies.

Production and Mill Throughput:
- Silver equivalent production increased by 5% to almost 646,000 silver equivalent ounces in Q2.
- Avino achieved a record mill throughput of 190,987 tonnes of material processed, a 36% increase from Q2 2024.
- The increase in production and mill throughput was due to improved mill availability and operational enhancements.

Cash Cost and Operating Expenses:
- The cash cost per silver equivalent ounce was $15.11, down 7% from Q2 2024.
- Free cash flow for the quarter was $4.4 million, with working capital reaching over $40 million.
- Cost reductions were achieved through increased tonnes processed and Better mill availability, leading to improved overall profitability.

La Preciosa Development Progress:
- La Preciosa development is on track, with blasting and construction of the main access decline underway.
- Avino has begun deploying capital at La Preciosa, with site services installed and an existing building renovated for site personnel.
- Progress is aligned with the company's 5-year organic growth plan, aiming to bring La Preciosa material into the production profile by the end of the year.