Avino Silver & Gold Mines (ASM) reported strong third-quarter results for 2026, highlighting increased silver production and higher operating cash flow. The company generated $33.4 million in revenue and $6.1 million in net income, or $0.03 per diluted share, with adjusted earnings reaching $14.3 million, or $0.08 per share. Chief Financial Officer Nathan Harte noted that silver accounted for 55% of revenue, sold at an average price of $63.33 per ounce. Gross profit margin stood at 44%, though Harte cautioned that a weaker U.S. dollar and additional costs at La Preciosa weighed on margins.
Production in the quarter totaled 303,000 ounces of silver, nearly 2,000 ounces of gold, and 1.1 million pounds of copper, combining to 583,000 silver equivalent ounces. Silver production rose 15% from the previous year, with the Avino Mine contributing 477,000 silver equivalent ounces. Development at La Preciosa increased 5% from the second quarter, producing 106,000 silver equivalent ounces. Operating cash flow surged 52% year-over-year to $12.7 million, while free cash flow was $6 million, excluding La Preciosa exploration costs.
President and CEO David Wolfin noted that mining and processing rates at La Preciosa exceeded 450 tons per day, with over 3,000 meters of underground development completed. The transition to higher-grade material is expected soon, though current costs include preparation for future mining. Harte emphasized that La Preciosa development was over 30% above budget due to additional equipment and productivity. The company plans to continue processing development material at current prices and expects to begin production-style mining in the coming quarter.
Avino revised its full-year production outlook to 2.2 million to 2.5 million silver equivalent ounces and updated several cost targets. Consolidated cash cost per ton was $71.40 in the quarter, with all-in sustaining cost at the Avino Mine just under $80 per ton. The company aims to reach a mining rate of 500 tons per day at La Preciosa and is evaluating a standalone processing facility. Long-term, Avino targets exceeding 10 million silver equivalent ounces of annual production.