Avino Silver & Gold Mines (ASM) Q2 2026 Earnings Call Transcript

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DATE

Wednesday, Aug. 12, 2026 at 1:00 p.m. ET

CALL PARTICIPANTS

• Head of Investor Relations - Jennifer North
• President and CEO - David Wolfin
• Chief Financial Officer - Nathan Harte
• Chief Operating Officer - Carlos Rodriguez
• Senior Vice President, Technical Services - Peter Latta
• Senior Vice President of Corporate Development - Marc Turcotte

TAKEAWAYS

• Revenue -- $26.8 million, growing 23% year over year primarily due to improved realized silver prices.
• Net Income -- $10.9 million, or $0.06 per diluted share, rising from $2.9 million in the second quarter of 2025.
• Silver Production -- 267,305 ounces, decreasing 6% year over year.
• Gold Production -- 2,178 ounces, increasing 23% compared to the prior-year period.
• Copper Production -- 729,929 pounds, declining 50% year over year as the company mined lower-grade areas.
• All-in Sustaining Cost (AISC) per Silver Equivalent Payable Ounce -- $38.75, increasing from $20.93 in the second quarter of 2025.
• Cash Cost per Ton Processed -- $74.72, rising from $52.61 in the prior-year period.
• La Preciosa Development Production -- 100,658 silver equivalent ounces, representing 59% growth compared to the first quarter of 2026.
• Proven and Probable Mineral Reserves -- 127 million silver equivalent ounces at a grade of 145 grams per ton across three assets.
• Measured and Indicated Mineral Resources -- 67.7 million tons for 301 million silver equivalent ounces at a grade of 102 grams per ton.
• Inferred Mineral Resources -- 24.8 million tons for 87.6 million silver equivalent ounces at a grade of 123 grams per ton.
• Cash Balance -- $144.2 million as of June 30, 2026, providing liquidity for growth initiatives.
• Working Capital -- $140.8 million, increasing 41% from Dec. 31, 2025.
• Realized Silver Price -- $68.90 per ounce, rising 104% compared to $33.85 per ounce in the second quarter of 2025.
• Share Repurchases -- 500,000 common shares repurchased and canceled during the quarter under the normal course issuer bid.
• Provisional Pricing Adjustments -- $5 million negative impact on revenues and gross margin due to pricing volatility.
• Exploration Drilling -- 6,591 meters completed by the end of the second quarter as part of a 15,000-meter plan for 2026.
• Mill Throughput -- 184,293 tons, declining 4% year over year while remaining consistent with management plans.
• Mexican Peso Headwind -- 12% to 15% currency strength relative to the U.S. dollar, which impacted operating margins.
• Mine Operating Income -- $13.0 million, an increase of 27% from $10.2 million in the prior-year quarter.
• Lost Time Incident Frequency Rate -- 4.82 per 1,000,000 hours worked during the second quarter.
• La Preciosa Silver Production -- 84,806 silver ounces, contributing to the 59% increase in development production from the first quarter.

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RISKS

• Harte reported that revenues and gross margins were reduced by "provisional pricing adjustments of $5 million" during the period.
• Wolfin stated that mining near-surface material outside of reserves at the Avino mine involved oxidized ore that "did not recover quite as well," resulting in fewer produced ounces.

SUMMARY

Avino Silver & Gold Mines Ltd. (NYSEMKT:ASM) is transitioning from a single-mine operator to a multiasset producer through the development of the La Preciosa project. Management reported the establishment of inaugural mineral reserves as a foundational milestone for long-term growth and confirmed that its transformational plan remains on track. The company maintained a high cash balance to fund organic expansion and implemented a share repurchase program to return value to shareholders. Strategic focus remains on optimizing mill throughput while conducting exploration to expand the resource base across its Mexican properties.

• CEO Wolfin stated, "Establishing mineral reserves across all properties as a transformational milestone for Avino."
• Management is currently conducting trade-off studies to evaluate the potential for a stand-alone processing facility at La Preciosa.
• Drilling operations shifted from infill holes to step-out exploration at high-priority targets and vein projections to identify resource expansion.
• Wolfin attributed increased market recognition to "new institutional funds and ETFs" joining the company's shareholder base.
• The company utilized its four independent mill circuits to process surface mineralization material found near current workings.
• Management repurchased 500,000 shares, describing the normal course issuer bid as a flexible tool for capital allocation.
• Wolfin confirmed that development mining at La Preciosa is approaching a target rate of 500 tons per day.

INDUSTRY GLOSSARY

• AgEq (Silver Equivalent): A metric that expresses the value of various metals produced in terms of silver ounces based on specific metal price ratios.
• AISC (All-in Sustaining Cost): A non-GAAP financial measure that represents the total cost to sustain mining operations, including capital expenditures.
• NCIB (Normal Course Issuer Bid): A Canadian term for a company's intention to repurchase its own shares through a public exchange.
• M&I Resources (Measured and Indicated): Mineral resources that have been identified and sampled to a high degree of confidence for economic extraction.
• Inferred Mineral Resources: A part of a mineral resource for which quantity and grade are estimated on the basis of limited geological evidence and sampling.
• Provisional Pricing Adjustment: A financial adjustment made when the value of a metal shipment changes between the time of delivery and final settlement.
• ET Deposit (Elena Tolosa): The main producing deposit at the Avino mine site.

Full Conference Call Transcript

Operator: Welcome to the Avino Silver and Gold Mine Second Quarter 2026 Financial Results Conference Call and Webcast. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Jennifer North, Head of Investor Relations. Please go ahead.

Jennifer North: Thank you, operator. Good morning, everyone, and welcome to our Q2 2026 earnings call and webcast. To join this webcast and call, there is a link in our news release, which was disseminated this morning. And can be found on our website under investor center, then news and media. In addition, a link can be found on the homepage of the Avino website. The full financial statements and MD and A are now available on our website under the investor center tab then reports and financials. In addition, the full statements are available on Avino's on SEDAR+ and on EDGAR.

Before we get started, I remind you to view our language regarding forward looking statements and the risk factors pertaining to these statements and note that certain statements made today on this call by the management team may include forward looking information within the meaning of applicable securities laws. Forward looking statements are subject to known and unknown risks uncertainties and other factors that may cause the results to be materially different than those expressed by or implied by such forward looking statements. For additional information, we refer you to our detailed cautionary note in the presentation related to this call or on today's press release.

On the call today, we have the company's president and CEO, David Wolfin our chief financial officer, Nathan Harte our chief operating officer, Carlos Rodriguez our senior vice president, technical services, Peter Latta and the newest member of the management team, Marc Turcotte, senior vice president of corporate development. I would like to remind everyone that this conference call is being recorded and will be available for replay later today. Replay information and the presentation slides from this conference call and webcast will be available on our website. Please note that all figures stated are in U. S. Dollars unless otherwise noted. Thank you. I will now hand over the call to Avino's president and CEO, David Wolfin. David?

David Wolfin: Thanks, Jennifer. Good morning, everyone, and welcome to Avino's Second Quarter 2026 Earnings Call and Webcast. We will cover the highlights of our financial and operating results and then provide an overview of what is coming up in the next quarter followed by a Q&A session. Once I have gone through the operational highlights and overall progress, I will turn it over to Nathan Harte, Avino's CFO, to discuss the financial results for the period. Please turn to Slide 5. We continue executing on our growth strategy, advancing Avino from a single mine operator towards a diversified multi asset mid tier producer in Mexico. The second quarter marked another significant step forward for Avino.

We achieved an important milestone with the announcement of our inaugural mineral reserve and updated mineral resources. Providing a strong foundation for our long term growth strategy. We also continued to make steady progress at La Preciosa increasing development production as we advance towards commercial mining. Beyond our operations, we strengthen the company through key corporate initiatives, including an announcement of a normal course issuer bid and the appointment of Marc Turcotte as senior vice president of corporate development. Together, these achievements reflect our continued execution and our commitment to growing Avino. During the quarter, we had meaningful contributions from La Preciosa with a 59% increase in silver production, as we continue to move the project forward.

Mill performance remained solid during the quarter with tons milled exceeding expectations and contributions from La Preciosa development ore continued to increase throughout the quarter. Our strong second quarter performance was driven by several key drivers, including firstly, our financial discipline and strategic capital allocation played an important role driving improvement across key financial metrics. Quarterly revenue of $26.8 million, cash of $145 million, working capital position of $141 million, Our financial strength enables us to carry out our organic growth plan with a bulletproof balance sheet. Next, we announced the normal course issuer bid in April and we have repurchased and canceled over 500 thousand common shares in the quarter.

Which in turn decreased the issued and outstanding common shares by that amount. We believe that the NCIB is a flexible tool that is part of our overall capital allocation program and we remain committed to returning value to shareholders by reducing the number of shares outstanding and increasing the percent of ownership and earnings per share. The next key driver was the completion of a new mineral reserve estimate and updated mineral resource estimate This was released on April 16. Establishing mineral reserves across all properties as a transformational milestone for Avino.

For the first time, we have defined reserves that demonstrate the underlying quality, scale, and economic potential of our asset base, further advancing company towards multi asset mid-tier producer. 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. This growth was achieved after accounting for depletion from ongoing mining activities, underscoring the strength and continuity of our ore bodies and mineralized systems. Together, these results reinforce the depth of our organic pipeline and positions Avino for continued growth and long term value creation for shareholders. Next, La Preciosa was an important contributor to our operation progress this quarter.

Development mining and haulage rates increased to allow Mill Circuit 2 to switch from ET ore to La Preciosa development ore and now mill circuit 1 and 2 are both processing La Preciosa development ore. In addition, development and mine preparation work is nearly complete on Level 3 of Abundancia and Gloria allowing for production long hole mining to begin. This will result in higher grade ore being sent to the mill as compared to development ore processed to date. Which is subject to additional mining dilution. Engineering and technical studies are ongoing at the mine level to evaluate optimum mining, hauling, processing rates for long term.

Additionally, Avino is currently conducting trade off studies between hauling and potential of stand alone processing facility at La Preciosa. The next key factor underpinning our performance is the exploration programs. There are 2 drills currently turning at La Preciosa with 6.59 thousand meters of drilling completed at the end of Q2 as part of the planned 15 thousand meters of exploration for 2026. Drilling has now shifted from infill holes to exploration and step out holes at high priority targets at vein intersections and projections. It is important to note that none of the infill holes completed to date were included in the mineral reserve update. Furthermore, most of the exploration holes are outside the current resource model.

Next, at Avino Mine, we identified some surface mineralization material near its current workings which was out of the current reserves. Given the ease of accessibility along with low cost mining extraction and process flexibility of our 4 independent mill circuits, Avino elected to mine, haul, and process material in 1 of the large mill circuits. Drilling remains ongoing in the same location as Q1, as we continue to try and understand the nature of the veining. The first drill was focused in the upper area of the eastern portion of the system. The second drill was focused on extension drilling in the footwall brecci area of the upper east portion.

Avino has been hosting geological consultants that are helping identify key geological features to target areas for resource expansion. Next, 54% of our revenue is from silver ounces sold, and 90% of our revenue comes from precious metals, silver, and gold. During Q2, precious metal prices were volatile. But remained above historical averages providing favorable pricing environment that supported our overall financial results. As we continue to execute our transformational growth strategy, we are seeing growing recognition from institutional investment community. New institutional funds and ETFs continue to join our shareholder base reflecting increased awareness of Avino's growth profile and long term potential. These achievements demonstrate meaningful progress in advancing Avino's transformational growth strategy while reinforcing the company's investment case.

Moving on to slide 6, we turn to our Q2 production results, which were released on July 22 and reflect steady operational performance. On this slide, we show our production results compared to Q2 2025 and year to date 2025. And consolidated production of 535 thousand silver equivalent ounces 185 thousand tons of total mill feed. On slide 7, we highlight production by operation, showing contributions from both Avino and La Preciosa for the year. At La Preciosa, development production increased 59% from Q1 26. Contributing just over 100 thousand silver equivalent ounces and just shy of 85 thousand silver ounces, and 182 gold ounces. I was at La Preciosa last week and witnessed the rapid pace of development firsthand.

The progress is being supported in part by additional new mining equipment, which is improving development efficiency, increasing productivity, and helping the team advance underground development. At this time, I will now hand it over to Nathan Harte, Avino's CFO, to present our financial performance for the second quarter. Nathan?

Nathan Harte: Thank you, David. Thank you to all of you for taking the time to join us as we recap the financial and operating results for the second quarter. Here on Slide 8, we have an overview of some key financial and operating highlights and the improved balance sheet with the full table on the next slide. In the second quarter, we generated revenues of $26.8 million with 54% of our revenues coming from silver ounces sold at an average realized price of $68.90 per silver ounce. Further, silver and gold sales combined for over 90% of our revenues this quarter. Gross profit margin was 48% inclusive of non cash items and 54% on a cash basis, excluding depreciation and depletion.

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. And a weakened US dollar against the Mexican peso. Despite these headwinds, Avino earned $10.9 million in net income after tax or $0.06 per diluted share. Beating Q2 of last year's totals of $2.9 million or $0.02 per share. Q2 adjusted earnings were similar at $11.1 million or $0.06 per share compared to $8.8 or $0.06 per share in Q2 of last year. Operating cash flows and free cash flow both improved compared to Q2 of last year.

Generated operating cash flows of $13.3 million and after working capital adjustments, the amount earned was $8.3 million or $0.05 per share. Free cash flow generated was $5.6 million excluding La Preciosa development costs and all capitalized and expensed exploration associated with the 30 thousand meters of planned drilling this year. Moving to liquidity and treasury. Our cash position was a record $144 million at the end of quarter, and working capital was $141 million. Avino has no secured debt other than leases on an operating equipment at both Avino and La Preciosa mining operation sites. We are well positioned to execute on all growth options in front of us.

Coming to slide 9, we see all other financial metrics for the second quarter and year to date. As everyone can see, almost all categories saw meaningful increases. Highlighting again the continued cash generation coming from Avino, which is more than covering all cost of development at La Preciosa as we begin to transition to production mining methods. On slide 10, we have an overview of operating results on a per ounce and per ton basis. As well as margins at our operations. As noted previously, provisional pricing adjustments did have a negative impact on our margins.

Along with the continued Mexican peso strength with the peso averaging between 12-15% strong compared to the US dollar this quarter compared to Q2 of 2025. In the quarter, we did see some increases in cost per ounce and per ton for a few different reasons. This quarter, we doubled throughput from La Preciosa development material, even compared to Q1. As discussed last quarter, this material is development material running through the mill that at lower prices would have been considered waste material.

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. These costs for La Preciosa are not indicative of long term cost per ounce and per ton expectations. However, at current metal prices, each ton of development material is being processed at a profit. 1 other item to highlight is that the movement in silver price did have an impact on our silver equivalent pay payable ounces sold calculations. Which again impacts our cash cost and all in sustaining cost per ounce numbers.

Using the prices from our cost and production guidance at the beginning of 2026, our cash cost per ounce for the second quarter would have come in around $24.07 which is a swing of $4.55 or 16%. On an all in basis, silver price had a larger impact. Using those same budget prices, our all in sustaining cash cost per silver equivalent payable ounce would be $30.28, which is a swing of $8.47 or 22%. As mentioned in our production news release, we did change the mine sequence by opening up processing capacity in Mill Circuit 2 to La Preciosa 3 months ahead of schedule. As well as we mined some other lower grade areas at Avino.

We do expect the numbers to normalize back into the range as grade improves in our mine sequence in subsequent quarters. Consolidated cash cost per ton figure of $74.72 came in at the high end of our guidance range for 2026. However, year to date, we are just under $70 per ton, which is right around the midpoint. On an all in basis, we were above our range at $96. Again, primarily from the change to more La Preciosa material. As costs at Avino were $84 per ton in the second quarter. Flipping back to the revenue side, here is our expectations for production and revenues by metal moving forward.

Expect that the silver portion as it relates to revenue will continue to be higher, than the estimated production by metal figures shown here, especially as La Preciosa contributes even more in the second half of the year. At this point, I will now turn it back over to David to run through upcoming activities.

David Wolfin: Thanks, Nathan. Moving to slide 12. As we summarize our key goals for the remainder of 2026, our focus is on strategic exploration and drilling with 15 thousand meters of drilling budgeted for both La Preciosa and the Avino mine as mentioned earlier on this call. We also look to increase production at La Preciosa, with a goal of 500 tons per day which we are close to achieving. It is important to reiterate here that we have inaugural mineral reserves and collectively our assets host proven and probable mineral reserves of 27 million tons, 127 million silver equivalent ounces at a grade of 145 grams per ton.

As well as measured and indicated mineral resources totaling 67.7 million tons and 301 million silver equivalent ounces at a grade of 102 grams per ton with inferred mineral resources totaling 24.8 million tons and 87.6 million silver equivalent ounces at a grade of 123 grams per ton. And Avino is achieving market recognition in institutional buying, and ETF inclusion is broadening our investor base. Turning to Slide 13, alongside our operational and growth initiatives, we continue to advance our corporate social responsibility programs across both Avino Mine and La Preciosa. Over many decades, we have built strong and lasting relationships with our local communities and workforce reflected in our low labor turnover and growing base of skilled employees.

Our operations are supported by a workforce of 707 men and women including 580 unionized workers, employees, and contractors at the Avino mine as well as additional 127 workers advancing activities at La Preciosa. Our operations continue to make meaningful contributions to the regional economy through local employment, training, procurement, community based initiatives. We remain committed to supporting long term social and economic development of the communities we operate while fostering sustainable growth for all stakeholders. I am pleased to announce that our second sustainability report has been completed and is now on our website. Moving to slide 14, I would like to highlight again the company's growth strategy. Within our 20-kilometer footprint, we have 3 key assets.

Including our operating mill complex, which currently processes material from the Avino Mine and La Preciosa. We have access to water, power, and tailing storage. Critical infrastructure that supports our ability to expand production efficiently, By leveraging our existing infrastructure, assets, and resource base, we believe we are well positioned to execute our growth plans efficiently and effectively. As you can see on this slide, our pathway to 10 million ounces of silver equivalent is supported by these growth initiatives. Advancing and scaling up La Preciosa including the potential for a stand alone plant and expansion opportunities at the Avino processing plant. Trade off studies and evaluation is ongoing.

We rounded out the quarter with strong financial metrics which reflect the strength of our strategy and the dedication of our team. Both which drive our success as we pursue the next phase of growth. We are focused on the future and advancing our path to transformational growth. With decades of work behind us to build this foundation, we remain disciplined in how we manage our financial strength making thoughtful and strategic decisions to support long term value creation. On behalf of our leadership thank you to our entire team for their efforts and contributions. We would now like to move the call to the question and answer portion. Operator?

Operator: Thank you. We will now begin the question and answer session. You will hear a tone to acknowledge your request. If you are using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. We will pause for a moment as callers join the queue. Your first question is coming from Heiko Ihle from H. C. Wainwright. Your line is live.

Heiko Ihle: Hey, everybody. Thanks for taking my questions, and, congratulations to Marc and Peter on their new appointments there. Couple of course.

Analyst: A couple of things. So let's start with the, drill program for the year. I mean, you said you have shifted from the infill holes to exploration step out holes. Leads to the obvious questions, what has been found and maybe the depth of the current holes that get drilled. And also maybe a bit of color on when you see new slow that coming along?

David Wolfin: Yes. Thanks so much for the question, Heiko. So I mean, there we are drilling at La Preciosa and Aveeno. And, know, both are looking for resource expansion at this point in time. You know, Avino is very wide body, and there is lots of targets. So it is quite it is quite easy to hit. So we have been successful there. You know, we did not we hesitate to put out any drill results just because we want to you know, a really comp comprehensive sort of answer that includes the reserve update.

So whether or not we put the drill results out now or we wait until we put out the updated reserve update, which will come out, next year. Because you the next question after the results is, well, what does this mean? And so we wanna be able to show that reserve growth or resource growth, and, we are not yet ready to do that. And then that is the same story at La Preciosa. You know, obviously, the geology is different and the targets are different. But, yeah, we are we definitely are excited from an exploration perspective for both targets for very different reasons. But, yeah, it is very exciting time for us.

Nathan Harte: Yeah.

David Wolfin: Because CORE, was focused on preparing a feasibility study for an open pit line. So they focused on the obvious areas. They did not do any step out drilling. So we are we are drilling it below some of the intercepts, where the veins meet So we are really excited about, what we are finding and what, what the potential is. And I know you have seen the press releases for the drilling that we have released at La Preciosa. And the key point to take away the key point to take away there is that all of those holes are above the average reserve and resource grade. Just to say that, hey.

These you know, we are we are we are some good a surprise to the upside, we believe, on that. And, just wanna be very, we wanna take our time with the results and make sure that, we integrate them into that resource and reserve model.

Heiko Ihle: Very good. What are you seeing in regards to cost for drilling compared to, call it, 6 months and a year ago?

David Wolfin: I mean, you are seeing costs increase for sure, but it I mean, Carlos does a great job keeping a handle on the guys and using a drilling contractor that we have a lot of experience with. You know? And so you know, the availability of drills is a thing as well, you know, more so than that less, like, cost. Sometimes adding an extra drill is difficult because there is a lot of people looking to drill at this time. So we have 4 drills turning, and we are adding a fifth, but that is taking a bit longer than we would like.

Heiko Ihle: Very good. I will not get you to give me a percentage or a number, though.

David Wolfin: No. No. I mean, you are seeing a little bit, but it is not it is not a huge increase. And, certainly, Nate can touch a little bit more on the on the drilling cost, but I do not think we are seeing you know, very substantial increases in drilling cost.

Nathan Harte: No. Nothing significant. You know, we have got a long term relationship with the contractor we have been working with. So yeah, maybe some inflationary standard couple percent here, but nothing beyond that.

David Wolfin: it is a fair question.

Heiko Ihle: Okay. Very good. Nate, earlier on the call, you mentioned that costs of La Preciosa are indicative of longer term costs. And just to confirm, that cost statement is only attributable to the developer material. In other words, there is nothing that chains conceptually on as a whole. Right?

Nathan Harte: Yeah. that is correct. So, obviously, everything we have processed to date and the cost that you have seen to date are from development material. We have not processed anything from the production mining side. And as we, you know, get more development done and are able to take more tonnage out, obviously, you see some economies of scale, as well as we will get you know, production level grade. Which will help everything long term. But, yeah, again, just we wanted to reiterate that everything we process to date is not indicative of where we see long term costs. Yep.

Heiko Ihle: that is what I figured. And then finally, I know I have I have I have probably overstayed my welcome of questions for you here. The 500 ton per day goal at the timeline to full production maybe by quarters, Anything you wanna lay out for us for our models?

Nathan Harte: Yeah. No. I it is a it is a fair question, but I think we are what we wanted to do is and David alluded to in the call, is kind of look at some technical studies, some trade off studies about how we really optimize that. And 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. We wanna reevaluate for optimizing. So I think that looks like, like something different, and we are we need a bit more time to, to message that to yourselves in the market.

Heiko Ihle: Perfect. Very good. I will get back in queue. Thank you.

Operator: Your next question is coming from Joseph Reagor from ROTH Capital Partners. Your line is live.

Joseph Reagor: Hey, David and team. Thanks for taking the questions. I guess first thing, on the provisional pricing adjustments, is there any options out there to you guys going forward to do some, like, minor post quarter hedging to you know, reduce the impact of that? I mean, I know this was an abnormal quarter, but still, are there any options that you guys have where you could smooth that out a bit?

David Wolfin: Yeah. I will take that 1 over to Peter can add in.

Nathan Harte: Yeah. I will take it. So there is obviously, there is options out there at a cost. Having said that, you know, we are pretty you know, we again, I wanna reiterate, we are M+1, so we do not see kind of a longer term swings as you get to M+3. That sometimes we see in, you know, copper cons and things like that. But I think, you know, we are not really in the business of hedging our metals. So I know it is sometimes a little tough quarter to quarter for yourselves and others, to model that, and then kinda we see some we do see some ups and downs.

And, obviously, this quarter was you know, it went the other way versus some other previous quarters. So while those options are out there, it is it is not really something that we are looking to kind of implement as of right now. if that answers your question.

Joseph Reagor: Oh, okay. As an alternative, is it something you guys could include in future production releases, like the total dollar number of revenue impact? I am assuming you guys know it. Like, early in the quarter. Right?

Nathan Harte: Yeah. You are that is fair. We do know it fairly early. it is something we will consider and, you know, can talk about that a bit more offline if that is helpful. But, yeah, something we can consider.

Joseph Reagor: Okay. And then on the production front, if you look at kind of, like, what Q1 was to Q2, looks like it was a little bit of a down quarter, you know, on a silver equivalent basis. I know some of it was you know, silver to gold, silver to copper ratio, but know, what do you guys attribute that to? And then, like, do you expect, like, a significant rebound this quarter, or is it gonna be more kind of, like, a steady rebound in production from here on?

David Wolfin: Yeah. No. Fair question. And, really, it comes down to, you know, like, we were a little bit lower on our copper production, and really that we took advantage of some near surface material. That was outside of our reserves and resources, you know, that was essentially profitable at these prices. And so we decided to go after that material. That was oxidized, it did not recover quite as well. And we had a couple of months where we ran that through both of our bigger circuits. Keeping in mind that we have those 4 circuits. So we have a lot of that processing flexibility.

It took a bit of pressure off of the ET mine, which allowed us to, you know, kind of be really, thoughtful with our development there. Know, the material was still good margin, but it resulted in lower ounces. So we thought that was a good strategic decision. Like I said, the margin was still good. But it did reduce a few ounces. But for the rest of the year, we are going back to you know, we have, in the sequence for ET, it looks like things are gonna be okay there, and we are back on track with where we wanted to mine.

Joseph Reagor: Okay. Thanks. Very helpful. I will turn it over.

Operator: And once again, everyone, if you have any questions or comments, please press star then 1 on your phone. Your next question is coming from Troy George. Your line is live.

Analyst: Okay. Hi, David. Great quarter. Really loving what you are doing. I did have a question about future projects. I am seeing, a project just down the road from you. I am at Southern Silver Exploration, the Cerro Las Minitas. I was wondering if you have taken the time to actually look at that and see if it is something that you might wanna turn your exploration toward in the future?

David Wolfin: Yeah. We know it very well. We know the company, the project, been there many times. it is a bit too far for hauling, so it would be a stand alone operation. And so we have got targets more high priority targets on our current projects So it is it is, it is not something that we are interested in at this moment. But possibly down the line. Okay. I just noticed that the dirt there kinda looks really similar to what you have going on at Avino and La Preciosa. And I had a follow-up question. Are you doing anything for oil hedging?

Or have you been are you 1 of the miners that is going for natural gas and electric? No. We do not do any oil hedging. The oil price is subsidized in Mexico. And we do not we are not seeing any sort of increase in our power price and that sort of thing. Mexico has a kind of a different relationship with their oil industry and how they subsidize that, but we are not seeing those costs pressures increase like they are in, in maybe other places like you are seeing in Europe or and certainly in Asia, which I think you might be referring to.

Analyst: Okay. Yeah.

Nathan Harte: And just to reiterate too, we are on the grid. So it is power in our mill.

Analyst: Okay. Alright. Great. Thank you for answering my questions, and see you at the mining forum. Next month.

Operator: That concludes our Q&A session. We will now hand the conference back to David Wolfin, president and CEO, for closing remarks. Please go ahead.

David Wolfin: Thank you again to everyone for joining us today. And for your continued interest and support of Avino Silver and Gold Mines. We are over halfway through the year now. We are encouraged by our results to date. While remaining focused on executing our clear path for transformational growth We continued operational improvements, advancement at La Preciosa, our strong balance sheet, and the disciplined approach to capital allocation, we believe Avino is well positioned to continue creating long term value for our shareholders. We look forward to updating you on our progress in the coming quarters. Have a great day.

Operator: Thank you. Everyone, this concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

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