Avino's Inaugural Reserve Locks In a Mid-Tier Silver Story
As La Preciosa ramps and the balance sheet bulges, Avino moves from development promise to production proof.
ASM · Earnings Call · 2026-08-12
A Monumental First
Avino's Q2 2026 report is defined by a first: the company published its inaugural mineral reserve estimate, converting years of drilling into 27 million tonnes at 145 g/t AgEq, or 127 million silver-equivalent ounces across its three Mexican assets. CEO David Wolfin called it “We achieved an important milestone with the announcement of our inaugural mineral reserve and updated mineral resources.” — David Wolfin, President and CEO · 2026-08-12 This is the tangible payoff of the drilling program that management had telegraphed for months. On last year's call, Wolfin hinted at this when he said “We are doing all this drilling so we're really excited about what we're going to publish next year.” — David Wolfin, President and CEO · 2025-08-14 Now that it's here, it validates the broader transformational growth strategy Avino has been selling: a single-mine operator evolving into a diversified multi-asset mid tier producer.La Preciosa Ramps Up
The growth engine is La Preciosa, where development production rose 59% sequentially, and both mill circuits are now processing development ore. Management targets 500 tonnes per day, and they're exploring a standalone processing facility. CFO Nathan Harte explained, “We are in the unique position that a lot of the development of La Preciosa is in ore and has allowed us to offset the costs associated with development work we would have had to do regardless to get the mine ready for production.” — Nathan Harte, CFO or Finance Executive · 2026-08-12 This means the company is effectively paid to develop, at current prices. When asked about the timeline to full production, Harte added, “I think given that metal prices have sustained, you know, much higher than when we had our initial plan of how we put La Preciosa into production.” — Nathan Harte, CFO or Finance Executive · 2026-08-12 The team is re-evaluating the optimal ramp, suggesting upside to earlier plans.Financial Discipline and Capital Allocation
Financially, Avino is in its best shape ever. Revenue hit $26.8 million, gross margin was 48% (54% cash), and net income was $10.9 million. The balance sheet shows $145 million in cash with no secured debt. The company repurchased 500k shares via an NCIB and brought in a new SVP of corporate development. Notably, management continues to resist hedging, preferring to keep shareholders exposed to the silver price. “we are not in the position right now where we plan to hedge any of our silver production.” — Nathan Harte, Unknown - likely senior management or finance based on context · 2026-05-14 That stance remains unchanged. However, the quarter wasn't without headwinds: provisional pricing adjustments shaved $5 million off revenue, and the peso's strength added cost pressure. As Harte noted, “Our revenues and gross margin were impacted this quarter by provisional pricing adjustments of $5 million as well as an increased amount of concentrate inventory at quarter end.” — Nathan Harte, CFO or Finance Executive · 2026-08-12 These are typical swing factors for a silver producer, but they don't obscure the underlying momentum.The inaugural mineral reserve estimate is 127 million silver equivalent ounces across our 3 assets This milestone is complemented by growth in our mineral resource base.