In This Article:
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Revenue: $18.8 million, up 52% from Q1 2024.
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Gross Profit: $10.6 million, with a gross profit margin of 56%.
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Net Income: $5.6 million, translating to earnings per share of $0.04.
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Cash Position: $26.6 million at the end of the quarter.
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Working Capital: Over $31 million at the end of the quarter.
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Silver Equivalent Production: 678,000 ounces, an 8% increase from Q1 2024.
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Gold Production: 2,225 ounces, a 25% increase.
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Copper Production: 1.6 million pounds, a 19% increase.
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Silver Production: 265,681 ounces, a 6% increase.
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Cash Cost per Silver Equivalent Ounce: $12.62, the lowest since 2022.
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All-In Sustaining Cash Cost: $20.08 per silver equivalent ounce.
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Operating Cash Flow: $7.4 million before working capital movements.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Avino Silver & Gold Mines Ltd (ASM) reported record earnings for Q1 2025, with revenues up 52% from the previous year.
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The company achieved a gross profit margin of 56%, significantly improved from the previous year's 90% margin.
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Silver equivalent production increased by 8%, with notable improvements in gold and copper production.
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The company maintains a strong balance sheet with over $26 million in cash and record high working capital of over $31 million.
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Development at La Preciosa is progressing well, with underground development commenced and significant progress in blasting and construction.
Negative Points
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Silver recovery rates decreased by 3% despite improvements in gold and copper recoveries.
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Cash flow from operating activities was impacted by working capital movements, including an increase in inventory and concentrated sales receivable.
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The company does not plan to hedge gold or silver, leaving it exposed to market volatility.
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No dividends are planned in the short term as the company focuses on reinvesting in growth.
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The company is not currently pursuing mergers and acquisitions, focusing instead on internal growth, which may limit expansion opportunities.
Q & A Highlights
Q: Can you touch on any specific levers that you think you might be able to pull over the next quarter or so to accelerate development plans at La Preciosa? A: We are considering increasing ramp development and potentially adding another portal, as discussed with our engineering team during a recent site visit. - David Wolfin, President, CEO
Q: Do you have any plans to expand on the current exploration program given the strong working capital position? A: Yes, we are continuing to drill at ET below level 17 and are looking at drilling to the west along the fault and at La Preciosa, pending an upgrade to one of our drills. - David Wolfin, President, CEO