Avino Silver & Gold Mines (ASM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $14.6 million, up 19% year-over-year, driven by higher metal prices and a 13% increase in silver equivalent production, with strong operational performance and higher realized prices across all three metals produced.

• Net income was $1.2 million ($0.01/share), adjusted earnings were $5.0 million ($0.04/share), and operating cash flows were $4.1 million, reversing a loss in Q3 2023.

• Free cash flow for 2024 is positive at $2.6 million, a turnaround from $6.5 million used in 2023.

• La Preciosa project advanced with better-than-expected recoveries from stockpile sampling, nearing final approvals for underground development, integral to a five-year growth plan targeting 8–10 million ounces by 2029.

• Major growth initiatives include advancing La Preciosa and the Oxide Tailings Project, aiming to transition from a single to three producing mines by 2029.

Financial highlights

• Q3 gross profit was $5.7 million, up 141% year-over-year, with mine operating cash flow before taxes of $6.7 million and EBITDA of $3.8 million.

• Cash on hand at quarter-end was $7.8 million, and working capital improved to $15.9 million, up $2 million in the quarter and $6 million since year-end 2023.

• Year-to-date, revenue increased 33% and gross profit 142% versus the first nine months of 2023; net income was $3 million, EBITDA nearly $9 million, and adjusted earnings $11.4 million ($0.08/share).

• Cash cost per silver equivalent ounce for Q3 was $14.94, improved from prior quarters and below the 2024 average; all-in sustaining cash cost per ounce was $22.06.

• Capital expenditures for the first nine months of 2024 were $5.0 million, down from $7.4 million in the same period of 2023.

Outlook and guidance

• 2024 production guidance remains at 2.5–2.8 million ounces silver equivalent, with strong Q3 and early Q4 performance supporting this target.

• La Preciosa underground development is expected to begin once final military approval is received, anticipated by year-end; initial CapEx guidance remains $3–$4 million.

• Growth strategy aims for 8–10 million ounces silver equivalent production by 2029, leveraging three assets within a 20-km footprint and existing infrastructure.