エドガーで原本を確認する
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the Month of August, 2026
Commission File Number: 001-35254
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
☐ Form 20-F ☒ Form 40-F
Explanatory Note
Avino Silver & Gold Mines Ltd. (the “Company”) is furnishing this Form 6-K to provide its financial information for the three and six months ended June 30, 2026, and to incorporate such financial information into the Company’s registration statement referenced below.
Exhibits:
The following exhibits are filed as part of this Form 6-K.
Exhibit No. |
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101.INS |
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Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH |
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Inline XBRL Taxonomy Extension Schema Document |
101.CAL |
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Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF |
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Inline XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB |
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Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE |
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Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 |
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Cover Page Interactive Data File (formatted as inline XBRL). |
2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AVINO SILVER & GOLD MINES LTD. |
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Date: August 12, 2026 |
By: |
/s/ Jennifer Trevitt |
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Jennifer Trevitt |
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Corporate Secretary |
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3 |
EXHIBIT 99.1
AVINO SILVER & GOLD MINES LTD.
Condensed Consolidated
Interim Financial Statements
For the three and six months ended June 30, 2026 and 2025
(Unaudited)
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TSX: ASM | NYSE AMERICAN: ASM |
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Condensed Consolidated Interim Statements of Financial Position
(Expressed in Thousands of US Dollars - Unaudited)
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Note |
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June 30, 2026 |
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December 31, 2025 |
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ASSETS |
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Current assets: |
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Cash |
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$ |
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$ |
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Amounts receivable |
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Amounts due from related parties |
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10(b) |
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Taxes recoverable |
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4 |
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Derivative asset |
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Prepaid expenses and other assets |
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Inventory |
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5 |
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Total current assets |
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Exploration and evaluation assets |
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7 |
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Plant, equipment and mining properties |
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9 |
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Long-term investments |
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6 |
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Other assets |
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Total assets |
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$ |
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$ |
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LIABILITIES |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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Taxes payable |
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Deferred consideration payable |
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9 |
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Current portion of finance lease obligations |
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Current portion of equipment loans |
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Total current liabilities |
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Finance lease obligations |
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Equipment loans |
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Reclamation provision |
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11 |
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Deferred income tax liabilities |
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Total liabilities |
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EQUITY |
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Share capital |
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12 |
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Equity reserves |
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Treasury shares |
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( |
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( |
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Accumulated other comprehensive loss |
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( |
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( |
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Retained earnings (accumulated deficit) |
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( |
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Total equity |
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Total liabilities and equity |
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$ |
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$ |
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Commitments & Contingencies – Note 15
Subsequent Events – Note 19
Approved by the Board of Directors on August 12, 2026
Michael Clark |
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Director |
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David Wolfin |
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Director |
The accompanying notes are an integral part of the condensed consolidated interim financial statements
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AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
2 |
Condensed Consolidated Interim Statements of Operations
and Comprehensive Income (Loss)
(Expressed in Thousands of US Dollars, other than per share amounts - Unaudited)
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Note |
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Three months ended June 30, 2026 |
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Three months ended June 30, 2025 |
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Six months ended June 30, 2026 |
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Six months ended June 30, 2025 |
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Revenue from mining operations |
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13 |
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$ |
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$ |
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$ |
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$ |
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Cost of sales |
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13 |
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Mine operating income |
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OPERATING EXPENSES |
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General and administrative expenses |
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14 |
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Share-based payments |
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12 |
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Income before other items |
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OTHER ITEMS |
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Interest and other income |
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Gain (loss) on long-term investments |
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6 |
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( |
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( |
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( |
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Unrealized gain (loss) on derivatives |
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( |
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Foreign exchange gain (loss) |
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( |
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( |
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Finance cost |
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( |
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( |
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( |
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( |
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Accretion of reclamation provision |
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11 |
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( |
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( |
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( |
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( |
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Interest expense |
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( |
) |
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( |
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( |
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( |
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Other expenses |
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( |
) |
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( |
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Income before income taxes |
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INCOME TAXES |
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Current income tax expense |
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( |
) |
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( |
) |
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( |
) |
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( |
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Deferred income tax recovery (expense) |
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( |
) |
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( |
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Income tax expense |
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( |
) |
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( |
) |
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( |
) |
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( |
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Net income |
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OTHER COMPREHENSIVE INCOME (LOSS) |
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Currency translation differences |
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( |
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( |
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Total comprehensive income |
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$ |
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$ |
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$ |
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$ |
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INCOME PER SHARE |
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12(e) |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
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12(e) |
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Basic |
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Diluted |
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The accompanying notes are an integral part of the condensed consolidated interim financial statements
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
3 |
Condensed Consolidated Interim Statements of Changes in Equity
(Expressed in Thousands of US Dollars - Unaudited)
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Note |
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Number of Common Shares |
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Share Capital Amount |
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Equity Reserves |
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Treasury Shares |
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Accumulated Other Comprehensive Income (Loss) |
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Retained Earnings Accumulated (Deficit) |
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Total Equity |
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Balance, January 1, 2025 |
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$ |
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$ |
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$ | ( |
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$ | ( |
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$ | ( |
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$ |
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Common shares issued: |
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At the market issuances |
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12 |
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Exercise of options |
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( |
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Vesting of RSUs |
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( |
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Carrying value of RSU forfeited for withholding taxes |
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12 |
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- |
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( |
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( |
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Issuance costs |
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12 |
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- |
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( |
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( |
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Share-based payments |
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12 |
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- |
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Net income for the period |
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- |
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Currency translation differences |
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- |
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Balance, June 30, 2025 |
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$ |
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$ |
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$ | ( |
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$ | ( |
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$ | ( |
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$ |
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Balance, January 1, 2026 |
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( |
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( |
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( |
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Common shares issued: |
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At the market issuances |
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12 |
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Exercise of options |
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12 |
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( |
) |
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Vesting of RSUs |
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12 |
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( |
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Shares repurchased and cancelled |
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12 |
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( |
) |
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( |
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( |
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Issuance costs |
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12 |
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- |
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( |
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( |
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Share-based payments |
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12 |
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- |
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Net income for the period |
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12 |
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- |
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Currency translation differences |
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- |
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( |
) |
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( |
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Balance, June 30, 2026 |
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$ |
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$ |
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$ | ( |
) |
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$ | ( |
) |
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$ |
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$ |
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The accompanying notes are an integral part of the condensed consolidated interim financial statements
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
4 |
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Thousands of US Dollars - Unaudited)
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Note |
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2026 |
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2025 |
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OPERATING ACTIVITIES |
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Net income |
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$ |
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$ |
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Adjustments for non-cash items: |
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Deferred income tax expense (recovery) |
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( |
) |
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Depreciation and depletion |
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Accretion of reclamation provision |
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11 |
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Loss (gain) on investments |
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6 |
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( |
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Unrealized loss (gain) on derivatives |
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17 |
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( |
) | |
Unrealized loss (gain) on foreign exchange |
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( |
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Write down of equipment and materials |
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Other expenses |
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Finance costs on deferred consideration payable |
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Share-based payments |
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12(c)(d) |
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Net change in non-cash working capital items |
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16 |
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( |
) |
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( |
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Cash provided by operating activities |
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FINANCING ACTIVITIES |
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Shares issued for cash, net of issuance costs |
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Proceeds from option exercises and RSU vesting, net |
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Shares repurchased and cancelled |
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( |
) |
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Lease liability payments |
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( |
) |
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( |
) |
Equipment loan payments |
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( |
) |
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( |
) |
Cash provided by financing activities |
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INVESTING ACTIVITIES |
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Proceeds from sale of long-term investments |
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Exploration and evaluation expenditures |
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|
|
( |
) |
|
|
( |
) |
Additions to plant, equipment and mining properties |
|
|
|
|
|
|
( |
) |
|
|
( |
) |
Cash used in investing activities |
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash |
|
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash |
|
|
|
|
|
|
( |
) |
|
|
( |
) |
Cash, beginning of period |
|
|
|
|
|
|
|
|
|
|
||
Cash, ending of period |
|
|
|
|
|
$ |
|
|
$ |
|
||
Supplementary Cash Flow Information (Note 16)
The accompanying notes are an integral part of the condensed consolidated interim financial statements
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
5 |
AVINO SILVER & GOLD MINES LTD.
Notes to Unaudited Condensed
Consolidated Interim Financial Statements
For the six months ended June 30, 2026, and 2025
(Expressed in Thousands of US Dollars – except where otherwise noted)
1. Nature of Operations
Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.
The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada (except for the province of Quebec) and the United States, and trades on the Toronto Stock Exchange (“TSX”) under the ticker ASM:TSX, the NYSE American under the ticker ASM:NYSE-A, and the Frankfurt and Berlin Stock Exchanges under the ticker GV6.
The Company operates the Elena Tolosa Mine (“ET Mine” or “Avino Mine”), which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Avino property also hosts the San Gonzalo Mine, which is currently on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (“La Preciosa”), a Mexican corporation, which owns the La Preciosa Property.
2. Basis of Presentation
Statement of Compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 – Interim Financial Reporting under IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2025 annual consolidated financial statements, which were prepared in accordance with IFRS Accounting Standards as issued by the IASB. In particular, the Company’s material accounting policy information was presented in Note 3 of the annual audited consolidated financial statements for the year ended December 31, 2025, and have been consistently applied in the preparation of these condensed consolidated interim financial statements, except as follows:
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
6 |
Plant, equipment and mining properties
Effective April 16, 2026, and the date of the Company’s NI 43-101 Technical Report, the Company commenced depleting mining properties using the units of production method based on the estimated remaining life of the mine, for its mining operations that have achieved management’s intended production levels. The change in accounting policy did not have a significant impact on depreciation in the current period nor will it have a significant impact in subsequent periods.
Basis of Presentation
These consolidated financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements as if the policies have always been in effect.
Foreign Currency Translation
Foreign Currency Transactions
Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the statement of financial position. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.
Foreign Operations
Subsidiaries that have functional currencies other than the US dollar translate their statement of operations items at the average rate during the year. Assets and liabilities are translated at exchange rates prevailing at the end of each reporting period. Exchange rate variations resulting from the retranslation at the closing rate of the net investment in these subsidiaries, together with differences between their statement of operations items translated at actual and average rates, are recognized in accumulated other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange difference is recognized in the statement of operations.
Significant Accounting Judgments and Estimates
The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its consolidated financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.
The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the six months ended June 30, 2026, are consistent with those applied and disclosed in Note 2 to the Company’s annual consolidated financial statements for the year ended December 31, 2025.
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
7 |
Basis of Consolidation
The financial statements include the accounts of the Company and its Mexican subsidiaries as follows:
Subsidiary |
Ownership Interest |
Jurisdiction |
Nature of Operations |
Oniva Silver and Gold Mines S.A. de C.V. |
|||
Nueva Vizcaya Mining, S.A. de C.V. |
|||
Promotora Avino, S.A. de C.V. (“Promotora”) |
|||
|
Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”) |
|
||
La Luna Silver & Gold Mines Ltd. |
|||
La Preciosa Silver & Gold Mines Ltd. |
|||
Proyectos Mineros La Preciosa S.A. de C.V. |
|||
Cervantes LLP |
Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.
3. Recent Accounting Pronouncements
New and amended IFRS Accounting Standards that are effective for the current year:
Certain new accounting standards and interpretations have been published that are either applicable in the current year or are not mandatory for the current period and have not been early adopted.
During the six months ended June 30, 2026, the Company adopted amendments to IFRS 9 Financial Instruments and related amendments to IAS 7 Statement and of Cash Flows and IFRS 7 Financial Instruments: Disclosures, related to the settlement of financial assets and financial liabilities through electronic payment systems. The amendments clarify the timing of recognition and derecognition of financial assets and financial liabilities settled electronically and introduce and optional exception for certain electronic payment arrangements. We have assessed these amendments and the adoption of these amendments did not have a material impact on the Company’s consolidated financial statements.
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
8 |
4. Taxes Recoverable
The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
VAT recoverable |
|
$ |
|
|
$ |
|
||
GST recoverable |
|
|
|
|
|
|
||
Income taxes recoverable |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
5. Inventory
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Process material stockpiles |
|
$ |
|
|
$ |
|
||
Concentrate inventory |
|
|
|
|
|
|
||
Materials and supplies |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
The amount of inventory recognized as an expense for the three and six months ended June 30, 2026 totaled $
6. Long-Term Investments
The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:
For the six months ended June 30, 2026 |
|
Fair Value December 31, 2025 |
|
|
Net Additions / (Disposals) |
|
|
Movements in foreign exchange |
|
|
Fair value Adjustments for the period |
|
|
Fair Value June 30, 2026 |
|
|||||
Talisker Resources Common Shares |
|
$ |
|
|
$ | ( |
) |
|
$ | ( |
) |
|
$ | ( |
) |
|
$ |
|
||
Silver Wolf Exploration Ltd. Common Shares |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|||
Silver Wolf Exploration Ltd. Warrants |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|||
Endurance Gold Corp. Common Shares |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
||||
Endurance Gold Corp. Warrants |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ | ( |
) |
|
$ | ( |
) |
|
$ | ( |
) |
|
$ |
|
||
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
9 |
7. Exploration and Evaluation Assets
The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:
|
|
Note |
|
|
Avino, Mexico |
|
|
La Preciosa, Mexico |
|
|
Total |
|
||||
Balance, December 31, 2024 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Drilling and exploration |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assessments and taxes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transfer to other assets |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) | ||
Transfer to mining properties |
|
|
10 |
|
|
|
|
|
|
( |
) |
|
|
( |
) | |
Disposition of Ana Maria and El Laberinto claims |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) | |
Effect of movements in exchange rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance, December 31, 2025 |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|||
Drilling and exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Assessments and taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Effect of movements in exchange rates |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) | |
Balance, June 30, 2026 |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|||
A. Avino, Mexico
The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following two groups:
1. Avino Mine Area Property
The Avino Mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering
2. Unification La Platosa Properties
The Unification La Platosa properties, consist of three leased concessions in addition to the leased concessions situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.
In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015.
Under the agreement,
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
10 |
B. La Preciosa, Mexico
La Preciosa is a development stage mineral property located in the state of Durango, Mexico, within the municipalities of Pánuco de Coronado and Canatlán. The Project is hosting one of the largest undeveloped primary silver resources in Mexico, and is located adjacent to Avino’s existing operations at the Avino Property in Durango, Mexico. The property covers an area of approximately 1,134 hectares and is located on the eastern flank of the Sierra Madre Occidental mountain range.
On April 1, 2025, the Company determined that La Preciosa had demonstrated technical feasibility and commercial viability to support the reclassification from the exploration and evaluation asset stage to the development stage and mining properties with plant, equipment and mining properties.
As such, the Company performed an assessment for impairment under IFRS 6 prior to reclassification. Management assessed whether or not the assets were impaired using a quantitative assessment of the recoverable value.
Based on these factors, all of the criteria required by IAS 36.10 have been met, and the Company determined that the recoverable amount exceeds the carrying value, and no impairment was recorded.
8. Non-Controlling Interest
At June 30, 2026, the Company had an effective
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
11 |
9. Plant, Equipment and Mining Properties
|
|
Mining properties |
|
|
Office equipment, furniture, and fixtures |
|
|
Computer equipment |
|
|
Mine machinery and transportation equipment |
|
|
Mill machinery and processing equipment |
|
|
Buildings and construction in process |
|
|
Total |
|
|||||||
COST |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at January 1, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Additions / Transfers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Transfer from exploration and evaluation assets (Note 7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Royalty buyback |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Writedowns |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) | ||
Effect of movements in exchange rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Additions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Writedowns |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) | ||
Effect of movements in exchange rates |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) | ||||
Balance at June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
ACCUMULATED DEPLETION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Additions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Writedowns |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) | ||
Balance at December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Additions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Writedowns |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) | ||
Balance at June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
NET BOOK VALUE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
At December 31, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Included in Buildings and construction in process above are assets under construction of $
As of June 30, 2026, the Company recorded a write-down of $
As at June 30, 2026, plant, equipment and mining properties included a net carrying amount of $
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
12 |
On August 25, 2025, the Company acquired all outstanding royalties and obligations held by Deterra Royalties Inc., on the La Preciosa property. Consideration for the transaction was $
10. Related Party Transactions and Balances
All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.
A. Key management personnel
The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel is as follows:
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Salaries, benefits, and consulting fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Share-based payments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
B. Amounts due to/from related parties
In the normal course of operations, the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand.
The following table summarizes the amounts were due to/(from) related parties:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Oniva International Services Corp. |
|
$ |
|
|
$ |
|
||
Silver Wolf Exploration Ltd. |
|
|
( |
) |
|
|
( |
) |
|
|
$ | ( |
) |
|
$ | ( |
) |
For consulting services provided to the Company by the President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by the Company’s President and CEO and director. For the six months ended June 30, 2026, the Company paid $
C. Other related party transactions
The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company, with a 2.5% markup. The President & CEO, and director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
13 |
The transactions with Oniva are summarized below:
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Salaries and benefits |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Office and miscellaneous |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
11. Reclamation Provision
Management’s estimate of the reclamation provision at June 30, 2026, is $
The present value of the obligation was calculated using a risk-free interest rate of
A reconciliation of the changes in the Company’s reclamation provision is as follows:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Balance at beginning of the period |
|
$ |
|
|
$ |
|
||
Changes in estimates |
|
|
|
|
|
|
||
Unwinding of discount |
|
|
|
|
|
|
||
Effect of movements in exchange rates |
|
|
|
|
|
|
||
Balance at end of the period |
|
$ |
|
|
$ |
|
||
12. Share Capital and Share-Based Payments
A. Authorized
Unlimited common shares without par value
B. Issued
|
i. |
During the six months ended June 30, 2026, the Company issued |
|
|
|
|
During the six months ended June 30, 2026, the Company issued |
|
|
|
|
|
During the six months ended June 30, 2026, the Company issued |
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
14 |
|
|
On April 6, 2026, the Company received acceptance from the Toronto Stock Exchange (the “TSX”) of the Company’s Notice of Intention to make a Normal Course Issuer Bid (the “NCIB”) to repurchase, for cancellation, up to an aggregate of |
|
|
|
|
|
ii. |
During the year ended December 31, 2025, the Company issued |
|
|
|
|
During the year ended December 31, 2025, the Company issued |
|
|
|
|
|
During the year ended December 31, 2025, the Company issued |
C. Stock Options
The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date.
Continuity of stock options is as follows:
|
|
Underlying Shares |
|
|
Weighted Average Exercise Price (C$) |
|
||
Stock options outstanding, January 1, 2025 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
$ |
|
||
Exercised |
|
|
( |
) |
|
$ |
|
|
Expired |
|
|
( |
) |
|
$ |
|
|
Stock options outstanding, December 31, 2025 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
$ |
|
||
Exercised |
|
|
( |
) |
|
$ |
|
|
Cancelled |
|
|
( |
) |
|
$ |
|
|
Stock options outstanding, June 30, 2026 |
|
|
|
|
$ |
|
||
Stock options exercisable, June 30, 2026 |
|
|
|
|
$ |
|
||
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
15 |
The following table summarizes information about the stock options outstanding and exercisable at June 30, 2026:
|
|
|
|
Outstanding |
|
|
Exercisable |
|
||||||||||||
Expiry Date |
|
Price (C$) |
|
|
Number of Options |
|
|
Weighted Average Remaining Contractual Life (Years) |
|
|
Number of Options |
|
|
Weighted Average Remaining Contractual Life (Years) |
|
|||||
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Valuation of stock options requires the use of estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the stock options was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Weighted average assumptions |
|
|
|
|
|
|
||
Risk-free interest rate |
|
|
% |
|
|
% | ||
Expected dividend yield |
|
|
% |
|
|
% | ||
Expected life |
|
|
|
|
||||
Expected stock price volatility |
|
|
% |
|
|
% | ||
Expected forfeiture rate |
|
|
% |
|
|
% | ||
Weighted average fair value |
|
C$ |
|
|
C$ |
|
||
During the six months ended June 30, 2026, the Company charged $
D. Restricted Share Units
On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period.
Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
16 |
Continuity of RSUs is as follows:
|
|
Underlying Shares |
|
|
Weighted Average Price (C$) |
|
||
RSUs outstanding, January 1, 2025 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
$ |
|
||
Exercised |
|
|
( |
) |
|
$ |
|
|
Cancelled / Forfeited |
|
|
( |
) |
|
$ |
|
|
RSUs outstanding, December 31, 2025 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
$ |
|
||
Exercised |
|
|
( |
) |
|
$ |
|
|
Cancelled / Forfeited |
|
|
( |
) |
|
$ |
|
|
RSUs outstanding, June 30, 2026 |
|
|
|
|
$ |
|
||
The following table summarizes information about the RSUs outstanding at June 30, 2026:
Issuance Date |
|
Price (C$) |
|
|
Number of RSUs Outstanding |
|
||
April 1, 2024 |
|
$ |
|
|
|
|
||
April 9, 2025 |
|
$ |
|
|
|
|
||
May 27, 2025 |
|
$ |
|
|
|
|
||
March 16, 2026 |
|
$ |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
During the six months ended June 30, 2026,
During the six months ended June 30, 2026, the Company charged $
E. Earnings Per Share
The calculations for basic earnings per share and diluted earnings per share are as follows:
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Net income for the period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Basic weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of dilutive share options and RSUs (‘000) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic income per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Diluted income per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
17 |
13. Revenue and Cost of Sales
The Company’s revenues for the six months ended June 30, 2026 and 2025, are all attributable to Mexico, from shipments of concentrate from the Avino Mine and processing of development material from the La Preciosa Mine.
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Concentrate sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Provisional pricing adjustments |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products.
Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following for the six months ended June 30, 2026 and 2025:
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Production costs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Write down of equipment and materials and supplies inventory |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and depletion |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
18 |
14. General and Administrative Expenses
General and administrative expenses consist of the following:
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Salaries and benefits |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Office and miscellaneous |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Professional fees |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Management and consulting fees |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investor relations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Regulatory and compliance fees |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Directors’ fees |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Travel and promotion |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
15. Commitments & Contingencies
The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 10.
The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Not later than one year |
|
$ |
|
|
$ |
|
||
Later than one year and not later than five years |
|
|
|
|
|
|
||
Later than five years |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
Office lease payments recognized as an expense during the six months ended June 30, 2026, totaled $
Due to the nature of the Company’s activities, the Company is from time to time involved in various claims and legal proceedings arising in the conduct of its business. At the reporting date, none of such claims and legal proceedings are considered probable of resulting in a material loss or judgment against the Company.
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
19 |
16. Supplementary Cash Flow Information
|
|
For the six months ended June 30, 2026 |
|
|
For the six months ended June 30, 2025 |
|
||
NET CHANGE IN NON-CASH WORKING CAPITAL ITEMS |
|
|
|
|
|
|
||
Inventory |
|
$ | ( |
) |
|
$ | ( |
) |
Prepaid expenses and other assets |
|
|
( |
) |
|
|
( |
) |
Taxes recoverable |
|
|
( |
) |
|
|
( |
) |
Taxes payable |
|
|
( |
) |
|
|
|
|
Accounts payable and accrued liabilities |
|
|
( |
) |
|
|
|
|
Amounts receivable |
|
|
|
|
|
( |
) | |
Amounts due to related parties |
|
|
|
|
|
( |
) | |
|
|
$ | ( |
) |
|
$ | ( |
) |
OTHER SUPPLEMENTARY INFORMATION |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
|
|
$ |
|
||
Taxes paid |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Transfer of share-based payments reserve upon vesting of RSUs |
|
$ |
|
|
$ |
|
||
Transfer of share-based payments reserve upon exercise of stock options |
|
|
|
|
|
|
||
Equipment acquired under finance leases and equipment loans |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
17. Financial Instruments
The fair values of the Company’s amounts receivable not subject to provisional pricing, due to/from related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable subject to provisional pricing, long-term investments are recorded at fair value. The carrying amounts of the Company’s deferred consideration payable, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.
The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.
A. Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
20 |
The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with two (December 31, 2025 – two) counterparties (see Note 18). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.
The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At June 30, 2026, no amounts were held as collateral.
B. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at June 30, 2026, in the amount of $
The maturity profiles of the Company’s contractual obligations and commitments as at June 30, 2026, are summarized as follows:
|
|
Total |
|
|
Less Than 1 Year |
|
|
1-5 years |
|
|
More Than 5 Years |
|
||||
Accounts payable and accrued liabilities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Deferred consideration payable |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equipment loans |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Finance lease obligations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
C. Market Risk
Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.
Interest Rate Risk
Interest rate risk consists of two components:
|
i. |
To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk. |
|
ii. |
To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk. |
In management’s opinion, the Company is not materially exposed to interest rate risk, as any material debt obligations that bear interest are fixed and not subject to floating interest rates.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
21 |
|
|
|
|
|
June 30, 2026 |
|
|
|
|
December 31, 2025 |
|
|||||
|
|
MXN |
|
|
CDN |
|
|
MXN |
|
|
CDN |
|
||||
Cash |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Due from related parties |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Long-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reclamation bonds |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amounts receivable |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Due to related parties |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) | ||
Finance lease obligations |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net exposure |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
US dollar equivalent |
|
$ | ( |
) |
|
$ |
|
|
$ | ( |
) |
|
$ |
|
||
Based on the net US dollar denominated asset and liability exposures as at June 30, 2026, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the six months ended June 30, 2026, by approximately $
Price Risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.
The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At June 30, 2026, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $
The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At June 30, 2026, a 10% change in market prices would have an impact on net earnings (loss) of approximately $
The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.
D. Classification of Financial Instruments
IFRS 13 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
22 |
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at June 30, 2026:
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|||
FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|||
Cash |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Amounts receivable |
|
|
|
|
|
|
|
|
|
|||
Derivative asset |
|
|
|
|
|
|
|
|
|
|||
Long-term investments |
|
|
|
|
|
|
|
|
|
|||
Total financial assets |
|
$ |
|
|
$ |
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
|
|
$ | ( |
) |
|
$ |
|
||
Derivative liability |
|
|
|
|
|
|
|
|
|
|||
Total financial liabilities |
|
$ |
|
|
$ | ( |
) |
|
$ |
|
||
The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2025:
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|||
FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|||
Cash |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Amounts receivable |
|
|
|
|
|
|
|
|
|
|||
Derivative asset |
|
|
|
|
|
|
|
|
|
|||
Long-term investments |
|
|
|
|
|
|
|
|
|
|||
Total financial assets |
|
$ |
|
|
$ |
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liability |
|
|
|
|
|
|
|
|
|
|||
Total financial liabilities |
|
$ |
|
|
$ |
|
|
$ |
|
|||
18. Segmented Information
The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company’s Chief Operating Decision Maker (the Company’s CEO) to review operating segment performance at the mine operating income or loss level, as well as on the basis of total comprehensive income. Effective December 31, 2025, it was determined that the Company has two reportable operating segments, located in Mexico (Avino and La Preciosa). The Company also has a Corporate segment located in Canada. Revenues, cost of sales, operating expenses, other items and income taxes are attributed to the operation in which they arise. Segment results are presented net of intersegment transactions where services are performed on behalf of other segments within the Company. There are no amounts unallocated to reportable segments. Previously, the Company only had one reportable segment. Following this change in the composition of reportable segments, the Company has restated the corresponding segment information for the three and six months ended June 30, 2025.
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
23 |
The following tables represent the statement of operations and other comprehensive income by segment:
|
For the three months ended June 30, 2026 and 2025 |
|
|
|
Revenue |
|
|
Cost of sales (production costs) |
|
|
Cost of sales (depreciation) |
|
|
Mine operating income |
|
|
Total comprehensive income |
|
|||||
MEXICO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Avino |
|
2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
La Preciosa |
|
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CANADA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) | ||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) | ||||
Consolidated |
|
2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
For the six months ended June 30, 2026 and 2025 |
|
|
|
Revenue |
|
|
Cost of sales (production costs) |
|
|
Cost of sales (depreciation) |
|
|
Mine operating income |
|
|
Total comprehensive income |
|
|||||
MEXICO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Avino |
|
2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
La Preciosa |
|
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CANADA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) | ||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) | ||||
Consolidated |
|
2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
24 |
The following table represents information from the consolidated statement of financial position by segment:
|
As at June 30, 2026 and December 31, 2025 |
|
|
|
PP&E assets (incl. mineral properties) |
|
|
E&E assets |
|
|
Total mining assets |
|
|
Total assets |
|
|
Total liabilities |
|
|||||
MEXICO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Avino |
|
2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
La Preciosa |
|
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CANADA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated |
|
2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
On the consolidated statements of operations and other comprehensive income for the three months ended June 30, 2026 and 2025, the Company had revenue from the following product mixes, all deriving from its Mexico operations:
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Silver |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Copper |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Penalties, treatment costs and refining charges |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total revenue from mining operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
For the three and six months ended June 30, 2026 and 2025, the Company had the following customers that accounted for total revenues as follows:
|
|
Three months ended June 30, 2026 |
|
|
Three months ended June 30, 2025 |
|
|
Six months ended June 30, 2026 |
|
|
Six months ended June 30, 2025 |
|
||||
Customer #1 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Customer #2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other customers |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenue from mining operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
25 |
19. Subsequent Events
Normal Course Issuer Bid (“NCIB”)
Subsequent to June 30, 2026, the Company repurchased and cancelled
Stock Option Exercises
Subsequent to June 30, 2026, the Company issued
|
AVINO SILVER & GOLD MINES |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS |
26 |
EXHIBIT 99.2
AVINO SILVER & GOLD MINES LTD.
Management’s Discussion
and Analysis
For the six months ended June 30, 2026
|
|
SX: ASM | NYSE AMERICAN: ASM |
|
The following discussion and analysis of the operations, results, and financial position of Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) should be read in conjunction with the Company’s condensed consolidated interim financial statements for the three and six months ended June 30, 2026, and the notes thereto.
This Management’s Discussion and Analysis (“MD&A”) is dated August 12, 2026, and discloses specified information up to that date. The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). Unless otherwise cited, references to dollar amounts are in US dollars. This MD&A contains “forward-looking statements” that are subject to risk factors including those set out in the “Cautionary Statement” at the end of this MD&A. All information contained in this MD&A is current and has been approved by the Company’s Board of Directors as of August 12, 2026, unless otherwise indicated. Throughout this report we refer to “Avino”, the “Company”, “we”, “us”, “our”, or “its”. All these terms are used in respect of Avino Silver & Gold Mines Ltd. We recommend that readers consult the “Cautionary Statement” on the last page of this report. Additional information relating to the Company is available on the Company’s website at www.avino.com and on SEDAR+ at www.sedarplus.ca.
Business Description
Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.
The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada (except for the province of Quebec) and the United States, and its common shares are listed on the Toronto Stock Exchange (“TSX”) under the ticker ASM:TSX, the NYSE American under the ticker ASM:NYSE-A, and the Frankfurt and Berlin Stock Exchanges under the ticker GV6.
Discussion of Operations
The Company’s production, exploration, and evaluation activities during the six months ended June 30, 2026, have been conducted on the Avino Property and the La Preciosa Property.
The Company holds a 99.67% effective interest in Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”), a Mexican corporation which owns the Avino Property. The Avino Property covers approximately 1,104 contiguous hectares, and is located approximately 80 km north-east of the city of Durango. The Avino Property is equipped with milling and processing facilities that presently process all output from the Avino Mine located on the property. The Avino Property also hosts the San Gonzalo Mine, which is currently on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property.
On April 1, 2025, the Company determined that La Preciosa had demonstrated technical feasibility and commercial viability to support the reclassification from the exploration and evaluation asset stage to the development stage and mining properties with plant, equipment and mining properties.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 2 |
Operational & Financial Highlights
| Highlights (In US$, unless otherwise noted) |
| Q2 2026 |
|
| Q2 2025 |
|
| Change |
|
| YTD 2026 |
|
| YTD 2025 |
|
| Change |
|
||||||
| OPERATING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
| Tonnes Milled |
|
| 184,293 |
|
|
| 190,987 |
|
|
| -4 | % |
|
| 369,790 |
|
|
| 358,840 |
|
|
| 3 | % |
| Silver Ounces Produced |
|
| 267,305 |
|
|
| 283,619 |
|
|
| -6 | % |
|
| 530,632 |
|
|
| 549,300 |
|
|
| -3 | % |
| Gold Ounces Produced |
|
| 2,178 |
|
|
| 1,774 |
|
|
| 23 | % |
|
| 4,029 |
|
|
| 3,999 |
|
|
| 1 | % |
| Copper Pounds Produced |
|
| 729,929 |
|
|
| 1,461,980 |
|
|
| -50 | % |
|
| 2,073,583 |
|
|
| 3,065,323 |
|
|
| -32 | % |
| Silver Equivalent Ounces1 Produced |
|
| 534,945 |
|
|
| 645,602 |
|
|
| -17 | % |
|
| 1,103,057 |
|
|
| 1,324,060 |
|
|
| -17 | % |
| CONCENTRATE SALES AND COSTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Silver Equivalent Payable Ounces Sold2 |
|
| 387,142 |
|
|
| 676,453 |
|
|
| -43 | % |
|
| 870,866 |
|
|
| 1,244,334 |
|
|
| -30 | % |
| Average Realized Silver Price per Ounce Sold |
| $ | 68.90 |
|
| $ | 33.85 |
|
|
| 104 | % |
| $ | 74.62 |
|
| $ | 33.30 |
|
|
| 124 | % |
| Cash Cost per Silver Equivalent Payable Ounce2,3 |
| $ | 28.62 |
|
| $ | 15.11 |
|
|
| 89 | % |
| $ | 26.31 |
|
| $ | 13.97 |
|
|
| 88 | % |
| All-in Sustaining Cost per Silver Equivalent Payable Ounce2,3 |
| $ | 38.75 |
|
| $ | 20.93 |
|
|
| 85 | % |
| $ | 36.52 |
|
| $ | 20.54 |
|
|
| 78 | % |
| Cash Cost per Tonne Processed3 |
| $ | 74.72 |
|
| $ | 52.61 |
|
|
| 42 | % |
| $ | 69.36 |
|
| $ | 52.29 |
|
|
| 33 | % |
| All-in Sustaining Cost per Tonne Processed3 |
| $ | 96.01 |
|
| $ | 73.70 |
|
|
| 30 | % |
| $ | 93.40 |
|
| $ | 75.33 |
|
|
| 24 | % |
| FINANCIAL OPERATING PERFORMANCE (IN 000’S) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
| $ | 26,787 |
|
| $ | 21,805 |
|
|
| 23 | % |
| $ | 66,220 |
|
| $ | 40,641 |
|
|
| 63 | % |
| Mine operating income |
| $ | 12,971 |
|
| $ | 10,224 |
|
|
| 27 | % |
| $ | 36,389 |
|
| $ | 20,786 |
|
|
| 75 | % |
| Net income |
| $ | 10,899 |
|
| $ | 2,864 |
|
|
| 281 | % |
| $ | 26,812 |
|
| $ | 8,481 |
|
|
| 216 | % |
| Earnings before interest, taxes and amortization (“EBITDA”)3 |
| $ | 12,559 |
|
| $ | 7,432 |
|
|
| 69 | % |
| $ | 38,090 |
|
| $ | 17,130 |
|
|
| 122 | % |
| Adjusted earnings3 |
| $ | 11,125 |
|
| $ | 8,837 |
|
|
| 26 | % |
| $ | 35,462 |
|
| $ | 18,592 |
|
|
| 91 | % |
| Cash provided by operating activities |
| $ | 13,260 |
|
| $ | 8,350 |
|
|
| 59 | % |
| $ | 26,892 |
|
| $ | 9,108 |
|
|
| 195 | % |
| Operating cash flow before working capital adjustments3 |
| $ | 8,254 |
|
| $ | 6,269 |
|
|
| 32 | % |
| $ | 26,943 |
|
| $ | 13,630 |
|
|
| 98 | % |
| Mine operating cash flow before taxes3 |
| $ | 14,419 |
|
| $ | 11,273 |
|
|
| 28 | % |
| $ | 41,132 |
|
| $ | 22,670 |
|
|
| 81 | % |
| PER SHARE AMOUNTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share - diluted |
| $ | 0.06 |
|
| $ | 0.02 |
|
|
| 200 | % |
| $ | 0.15 |
|
| $ | 0.06 |
|
|
| 150 | % |
| Adjusted earnings per share3 |
| $ | 0.06 |
|
| $ | 0.06 |
|
| - | % |
| $ | 0.20 |
|
| $ | 0.12 |
|
|
| 67 | % | |
| Liquidity & Working Capital (in 000’s) |
| June 30, 2026 |
|
| March 31, 2026 |
|
| Change |
|
| June 30, 2026 |
|
| December 31, 2025 |
|
| Change |
|
||||||
| Cash |
| $ | 144,183 |
|
| $ | 138,646 |
|
|
| 4 | % |
| $ | 144,183 |
|
| $ | 101,724 |
|
|
| 42 | % |
| Working capital3 |
| $ | 140,774 |
|
| $ | 139,724 |
|
|
| 1 | % |
| $ | 140,774 |
|
| $ | 99,562 |
|
|
| 41 | % |
| 1 | AgEq was calculated using metal prices of $45.30 per oz Ag, $3,929 per oz Au and $4.85 per lb Cu. These metal prices are based on the Company’s 2026 budget as approved by the Board of Directors, and previous periods have been recalculated using these prices for comparability purposes. Calculated figures may not add up due to rounding. |
| 2 | “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period. |
| 3 | Non-IFRS Accounting Standard measure. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS Accounting Standards and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Accounting Standards Measures section for further information and detailed reconciliations. |
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 3 |
Q2 2026 Financial Highlights
|
| · | Revenues of $26.8 million, an increase of 23% from Q2 2025. |
|
| · | Mine operating income of $13.0 million, an increase of 27% from Q2 2025. |
|
| · | Net income of $10.9 million, or $0.06 per share on a diluted basis. |
|
| · | Adjusted earnings of $11.1 million, or $0.14 per diluted share, an increase of 26% and 133%, respectively, from Q2 2025. |
|
| · | Cash flow provided by operating activities of $13.3 million, a significant increase compared to $8.4 million in Q2 2025. Prior to working capital adjustments, cash flow provided from operating activities was $8.3 million, an increase of 32% compared to Q2 2025. |
|
| · | Mine operating cash flow before taxes of $14.4 million, an increase of 28% from Q2 2025. |
|
| · | Earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $12.6 million, an increase of 69% from Q2 2025. |
|
| · | Cash costs per AgEq payable ounce sold of $28.62, an increase of 89% from Q2 2025, primarily due to lower silver equivalent ounces sold. Using budget prices as per the Company’s 2026 guidance, cash costs per AgEq payable ounce sold was $24.07. |
|
| · | All in sustaining costs per AgEq payable ounce sold of $38.75, an increase of 85% from Q2 2025, again primarily due to lower silver equivalent ounces sold. Using budget prices as per the Company’s 2026 guidance, all in sustaining costs per AgEq payable ounce sold was $31.81. |
|
| · | Avino had $144.8 million in cash at June 30, 2026, and remains debt-free, excluding operating equipment leases and the deferred royalty repurchase payment. Our working capital position of $140.8 million and strong balance sheet will provide the foundation to support our transformational growth plan to become a Mexico-focused mid-tier primary silver producer. |
2026 Highlights
|
| · | Steady Progress at La Preciosa: Ongoing extraction, haulage, and processing of mineralized development material from La Preciosa was above plan due to Mill circuit 2 becoming available. This increased throughput was offset by intentional processing of lower grade development ore during elevated metal prices, that would have otherwise been stockpiled. |
|
| · | Increased La Preciosa Development Production: Avino produced 534,945 silver equivalent1 ounces in Q2 2026, representing a decrease compared to Q2 2025. The decrease reflects planned mining sequencing in to lower copper grade areas near the historical open pit at Avino. At La Preciosa, development production increased 59% from Q1 2026, contributing 100,658 AgEq ounces and consisting of 84,806 silver oz and 182 gold oz. |
|
| · | Consistent Mill Throughput: In Q2 2026, mill throughput remained on plan with 184,293 tonnes processed from both Avino and La Preciosa. Continued steady mill performance and availability reflects the impact of targeted upgrades and automation initiatives led by our operations and maintenance teams over the recent years. |
|
| · | Normal Course Issuer Bid: During Q2 2026, Avino repurchased and subsequently cancelled 508,039 common shares, decreasing the issued and outstanding common shares by the same amount. As previously announced, the Company is permitted to repurchase for cancellation up to an aggregate of 8,248,566 common chares prior to April 7, 2027. The Company believes the NCIB is a flexible tool as part of its overall capital allocation program and remains committed to returning value to shareholders by reducing the number of shares outstanding therefore increasing percentage of ownership and earning per share. |
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 4 |
Operational Updates
Development — La Preciosa
During Q2 2026, development mining and haulages rates increased to allow for Mill Circuit 2 to switch from ET ore to La Preciosa development ore and now Mill Circuit’s 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 the development ore processed to date, which was subject to additional mining dilution. Engineering and technical studies are on going at the mine level to evaluate the optimum mining, hauling and processing rates for the long-term. Additionally, Avino is currently conducting trade-off studies between hauling and the potential of a stand-alone processing facility at La Preciosa.
Mine and Mill Update — Avino
Avino identified some surface mineralized material near its current workings, which was out of the current reserves. Given the ease of accessibility along with the lower cost of extraction and process flexibility of the four independent mill circuits, Avino elected to mine, haul and process this material in one of the large mill circuits. Silver and gold grades have proven to be quite good, however copper grades are lower and due to the near surface nature, can be highly oxidized affecting recovery. However, given the lower cost and attractive metal price environment this material represents acceptable margin in addition to reducing depletion on Avino reserves and providing additional flexibility on mine sequencing.
Drilling remains ongoing in the same locations as in Q1 as we continue to understand the nature of the veining. The first drill was focused in the upper area in the eastern portion of the system. The second drill at Avino was focused on extension drilling in the footwall breccia area in the upper east portion. Subsequent to Q1 2026, Avino has been hosting geological consultants that are helping identify key geological features to target areas for resource expansion.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 5 |
Inaugural Mineral Reserve and Updated Mineral Resource Estimates
The Company released the details of most recent mineral reserve estimate and updated mineral resource estimate on April 16th, 2026. The highlights included inaugural proven and probable mineral reserves at two of the Company’s three assets, totaling 27 million tonnes containing 95 million ounces of silver at a grade of 109 g/t, 356 thousand ounces of gold at a grade of 0.41 g/t, and 85 million pounds of copper at a grade of 0.31%. This calculates to 127 million silver equivalent ounces at a grade of 145 g/t. The full news release can be viewed here. The mineral resources and reserves estimate is included in an updated technical report (the “Updated Technical Report” prepared by Tetra Tech Canada Inc. in accordance with the requirements of NI-43-101), and is available on SEDAR+ at www.sedarplus.ca under the Company’s profile and filed on Form 6-K.
Exploration
There are two drills currently turning at La Preciosa, with 6,591 meters of drilling completed at the end of Q2 2026 as part of the planned 15,000 metres 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 drilling holes completed to date were included in the mineral reserve update mentioned below. Furthermore, most of the exploration holes are in areas outside the current resource model.
Qualified Person(s)
The Qualified Persons as defined by NI 43-101, who are responsible for the technical content and have verified the underlying data of the information above are Michael O’Brien P.Geo., Senior Principal Consultant, Red Pennant Communications Corp., and Peter Latta, P.Eng, Avino’s VP, Technical Services. The mineral resource estimate and mineral reserve estimate above were prepared under the supervision of, or were reviewed by both Mr. Latta and Mr. O’Brien, both of whom are qualified persons within the context of NI 43-101.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 6 |
Financial Results – Q2 2026
Three months ended June 30, 2026, compared to three months ended June 30, 2025
| In 000’s |
| Three months ended June 30, 2026 |
|
| Three months ended June 30, 2025 |
|
||
| Revenue from mining operations |
| $ | 26,787 |
|
| $ | 21,805 |
|
| Cost of sales |
|
| 13,816 |
|
|
| 11,581 |
|
| Mine operating income |
|
| 12,971 |
|
|
| 10,224 |
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
| 2,340 |
|
|
| 1,973 |
|
| Share-based payments |
|
| 1,465 |
|
|
| 1,320 |
|
|
|
|
| 9,166 |
|
|
| 6,931 |
|
| OTHER ITEMS |
|
|
|
|
|
|
|
|
| Interest and other income |
|
| 1,135 |
|
|
| 170 |
|
| Loss on long-term investments |
|
| (995 | ) |
|
| (81 | ) |
| Unrealized gain on derivative liability |
|
| 441 |
|
|
| 1,509 |
|
| Foreign exchange gain (loss) |
|
| 2,476 |
|
|
| (1,431 | ) |
| Finance cost |
|
| (166 | ) |
|
| (4 | ) |
| Accretion of reclamation provision |
|
| (69 | ) |
|
| (52 | ) |
| Interest expense |
|
| (122 | ) |
|
| (110 | ) |
| Other expenses |
|
| - |
|
|
| (421 | ) |
| Income before income taxes |
|
| 11,866 |
|
|
| 6,511 |
|
| INCOME TAXES |
|
|
|
|
|
|
|
|
| Current income tax expense |
|
| (4,394 | ) |
|
| (3,061 | ) |
| Deferred income tax recovery (expense) |
|
| 3,427 |
|
|
| (586 | ) |
| Income tax expense |
|
| (967 | ) |
|
| (3,647 | ) |
| Net income |
| $ | 10,899 |
|
| $ | 2,864 |
|
| OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
| Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
| Currency translation differences |
|
| (2,938 | ) |
|
| 1,419 |
|
| Total comprehensive income |
| $ | 7,961 |
|
| $ | 4,283 |
|
| INCOME PER SHARE |
|
|
|
|
|
|
|
|
| Basic |
| $ | 0.06 |
|
| $ | 0.02 |
|
| Diluted |
| $ | 0.06 |
|
| $ | 0.02 |
|
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
| Basic |
|
| 170,022,896 |
|
|
| 144,108,234 |
|
| Diluted |
|
| 175,512,841 |
|
|
| 154,134,484 |
|
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 7 |
Revenues
During the three months ended June 30, 2026, the Company recognized revenues of $26.8 million on the sale of Avino Mine bulk copper/silver/gold concentrate and La Preciosa silver/gold concentrate, compared to $21.8 million revenues for the 2025 period, an increase of $5 million. The increase is a result of higher average realized metal prices for silver, gold and copper for the period offset by lower payable silver equivalent ounces sold in the current period.
Metal prices for revenues recognized during the period were $68.90 per ounce of silver, $4,294 per ounce of gold, and $13,797 per tonne of copper, with comparable prices for Q2 2025 were $33.85 per ounce of silver, $3,276 per ounce of gold, and $9,534 per tonne of copper.
Payable silver equivalent ounces sold in the current period were 387,142 ounces, compared to 676,453 ounces in Q2 2025. Payable silver equivalent ounces sold were lower in the current period than previous periods as a result of higher silver prices impacting the silver:gold and silver: copper ratios used to calculate silver equivalent ounces and lower grade material processed mainly from la Preciosa mine development ore.
Cost of Sales & Mine Operating Income
During the three months ended June 30, 2026, cost of sales was $13.8 million, compared to $11.6 million in Q2 2025, an increase of $2.2 million. The increase is mainly attributable to higher depreciation and lower payable silver equivalent sold as well as a stronger average Mexican Peso compared to the US Dollar during the current quarter, with an average of $17.47 Mexican Pesos to 1 US Dollar in Q2 2026 compared to an average of $19.98 Mexican Pesos to 1 US Dollar in Q2 2025, a strengthening of approximately 14%.
Mine operating income was $13.0 million, compared to $10.2 million in Q2 2025. The increase in mine operating income is a result of the items noted above as well as mark to market movements resulting from changes in metal prices and metal contents from provisional to final invoicing. Provisional adjustments had a negative impact of $5.2 million in Q2 2026 compared to $0.1 million in Q2 2025.
General and Administrative Expenses & Share-Based Payments
General and administrative expenses were $2.3 million, compared to $2.0 million in Q2 2025. The increase is a result of higher salaries and benefits primarily as a result of increase in operations and increased employee benefits and profit-sharing accruals from improved financial performance.
Share-based payments were $1.5 million, compared to $1.3 million in Q2 2025, an increase of $0.2 million. The increase is a direct result of the timing of option and RSU grants, and fluctuations in share price at the time of the grants.
Other Items
Loss on long-term investments was $0.9 million compared to $0.1 million in Q2 2025. This is a direct result of fluctuations in the Company’s investment in shares of Talisker Resources, as well as minor movements in the Company’s investment in shares of Silver Wolf Exploration and Endurance Gold.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 8 |
Unrealized gain on derivatives was $0.4 million compared to a gain of 1.5 million in Q2 2025. This is a direct result of US Dollar/Mexican Peso foreign exchange forward contracts entered into during the year to mitigate risks surrounding the Company of material foreign exchange movements that could cause the Company to incur material losses.
Foreign exchange gain for the period was $2.5 million compared to a loss of $1.4 million in Q2 2025. Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar functional currency. During the three months ended June 30, 2026, the US dollar appreciated in relation to the Mexican Peso and the Canadian dollar, resulting in foreign exchange gains overall.
Current and Deferred Income Taxes
Current income tax expense was $4.3 million in Q2 2026, an increase of $1.3 million compared to an income tax expense of $3.0 million for Q2 2025. The movement relates primarily to additional taxable income in Avino due to increased profits, which resulted in increased income tax expense.
Deferred income tax recovery was $3.4 million in Q2 2026 compared to an expense of $0.6 million in Q2 2025. Deferred income taxes fluctuate due to movements in taxable and deductible temporary differences related to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors. The changes in current income taxes and deferred income taxes during the current and comparable periods primarily relate to movements in the tax bases and mining profits and/or losses in Mexico.
Net Income
Net income was $10.9 million for the period, or $0.06 per basic and diluted share, compared to net income of $2.9 million, or $0.02 per basic and diluted share for Q2 2025. The increase is a result of the items noted above, including increases in revenues, mine operating income, gain on long-term investments, gain on foreign exchange and interest income. The positive movements were partially offset by increases to current income tax expense.
EBITDA & Adjusted Income/Loss
(see “Non-IFRS Accounting Standards Measures”)
EBITDA was $12.6 million for the period, an increase of $5.2 million when compared to $7.4 million for Q2 2025. The changes in EBITDA are primarily a factor of the items above, excluding any changes in depreciation and depletion, changes in interest expense and income, as well as any changes in income taxes. See Non-IFRS Accounting Standards Measures for a reconciliation for EBITDA.
Adjusted earnings for the period was $11.1 million, an increase of $2.2 million when compared to adjusted earnings of $8.9 million in the corresponding quarter in 2025. Changes to adjusted earnings are a result of the items noted above in EBITDA, further excluding share-based payments, unrealized gains and losses related to derivative liabilities, write-downs of equipment and movements in foreign exchange. See Non-IFRS Accounting Standards Measures for a reconciliation for adjusted earnings.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 9 |
Cash Costs & All-in Sustaining Costs
(see “Non-IFRS Accounting Standard Measures”)
Cash costs per silver equivalent payable ounce sold was $28.6, compared to $15.11 for Q2 2025. The increase is attributable to lower payable silver equivalent ounces sold in the current period than previous periods as a result of higher silver prices impacting the silver:gold and silver:copper ratios used to calculate silver equivalent ounces, as well as lower volumes sold of silver, gold and copper. Using the silver:gold and silver:copper ratios from the Company’s 2026 guidance, cash costs per AgEq payable ounce sold was $24.07.
All-in sustaining costs per silver equivalent payable ounce sold was $38.75, compared to $20.93 for Q2 2025. As noted above, the increase is primarily due to lower payable silver equivalent ounces sold in the current period than previous periods as a result of higher silver prices impacting the silver:gold and silver:copper ratios used to calculate silver equivalent ounces, as well as lower volumes sold of silver, gold and copper. This was further impacted by increased sustaining capital expenditures and increased general & administrative expenses in the current period compared to Q2 2025. Using the silver:gold and silver:copper ratios from the Company’s 2026 guidance, all-in sustaining costs per AgEq payable ounce sold was $31.81.
See Non-IFRS Accounting Standard Measures for a reconciliation for cash costs and all-in sustaining costs.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 10 |
Financial Results – YTD 2026
Six months ended June 30, 2026, compared to the six months ended June 30, 2025:
| In 000’s |
| Six months ended June 30, 2026 |
|
| Six months ended June 30, 2025 |
|
||
| Revenue from mining operations |
| $ | 66,220 |
|
| $ | 40,641 |
|
| Cost of sales |
|
| 29,831 |
|
|
| 19,855 |
|
| Mine operating income |
|
| 36,389 |
|
|
| 20,786 |
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
| 5,315 |
|
|
| 4,096 |
|
| Share-based payments |
|
| 2,340 |
|
|
| 1,682 |
|
| Income before other items |
|
| 28,734 |
|
|
| 15,008 |
|
| OTHER ITEMS |
|
|
|
|
|
|
|
|
| Interest and other income |
|
| 2,061 |
|
|
| 333 |
|
| Gain (loss) on long-term investments |
|
| (438 | ) |
|
| 363 |
|
| Unrealized gain (loss) on derivative liability |
|
| (684 | ) |
|
| 1,914 |
|
| Foreign exchange gain (loss) |
|
| 5,670 |
|
|
| (1,530 | ) |
| Finance cost |
|
| (331 | ) |
|
| (9 | ) |
| Accretion of reclamation provision |
|
| (134 | ) |
|
| (100 | ) |
| Interest expense |
|
| (244 | ) |
|
| (191 | ) |
| Other expenses |
|
| - |
|
|
| (421 | ) |
| Income before income taxes |
|
| 34,634 |
|
|
| 15,367 |
|
| INCOME TAXES |
|
|
|
|
|
|
|
|
| Current income tax expense |
|
| (11,289 | ) |
|
| (5,093 | ) |
| Deferred income tax recovery (expense) |
|
| 3,467 |
|
|
| (1,793 | ) |
| Income tax expense |
|
| (7,822 | ) |
|
| (6,886 | ) |
| Net income |
| $ | 26,812 |
|
| $ | 8,481 |
|
| OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
| Currency translation differences |
|
| (5,830 | ) |
|
| 1,514 |
|
| Total comprehensive income |
| $ | 21,432 |
|
| $ | 9,995 |
|
| INCOME PER SHARE |
|
|
|
|
|
|
|
|
| Basic |
| $ | 0.16 |
|
| $ | 0.06 |
|
| Diluted |
| $ | 0.15 |
|
| $ | 0.06 |
|
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
| Basic |
|
| 168,298,839 |
|
|
| 142,194,583 |
|
| Diluted |
|
| 173,996,975 |
|
|
| 151,901,381 |
|
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 11 |
Revenues
The Company recognized revenues net of penalties, treatment costs and refining charges, of $66.2 million on the sale of Avino Mine bulk copper/silver/gold concentrate, compared to revenues of $40.6 million for the 2025 period, an increase of $25.6 million.
The increase in revenues is a result of higher average metal prices as described below, offset by 17% lower payable silver equivalent ounces sold in the current year.
Metal prices for revenues recognized during the period were $74.62 per ounce of silver, $4,508 per ounce of gold, and $13,069 per tonne of copper, with comparable prices for the six months ended June 30, 2025, of $33.30 per ounce of silver, $3,150 per ounce of gold, and $9,491 per tonne of copper.
Cost of Sales & Mine Operating Income
Cost of sales for the period were $29.8 million, compared to $19.9 million in the 2025 period, an increase of $9.9 million. The increase in cost of sales is attributable to lower ounces sold as mentioned above, which resulted in higher overall costs and a stronger 6-month average Mexican Peso compared to the US dollar, which impacted labour and contractor costs.
Mine operating income for the period was $36.4 million, compared to $20.8 million in the 2025 period. The increase in mine operating income is a result of higher revenues, with cost of sales being similar to the comparative period, as noted above.
General and Administrative Expenses & Share-Based Payments
General and administrative expenses were $5.3 million, compared to $4.1 million in the comparable period, with any increases coming from additional professional fees and salaries and benefits in the period.
Share-based payments were $2.4 million, compared to $1.7 million in the comparable period, an increase of $0.7 million. The increase is a direct result of the timing of stock option and RSU grants, and fluctuations in share price from period to period.
Other Items
Unrealized loss on derivative liability was $0.7 million compared to $1.9 million in the comparable period. This is a direct result of US dollar/Mexican Peso foreign exchange forward contracts entered into mitigate risks surrounding the Company of material foreign exchange movements that could cause the Company to incur material losses.
Foreign exchange gain for the period was $5.7 million, a positive movement of $7.2 million compared to a loss of $1.5 million in the comparable period in 2025. Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar functional currency. During the period, the Canadian dollar and the Mexican Peso appreciated against the US dollar, resulting in an overall foreign exchange loss for the period. During the six months ended June 30, 2025, the US dollar remained constant in relation to the Canadian dollar but depreciated compared to the Mexican peso by the end of first semester, resulting in a foreign exchange gain.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 12 |
Current and Deferred Income Taxes
Current income tax expense for the period was $11.3 million, compared to a current income tax expense of $5.1 million in the comparable period. The movements are a result of higher profits generated in 2026, resulting in increased income tax expense, whereas in 2025, the Company had losses available to partially offset taxable income in Mexico.
Deferred income tax recovery was $3.5 million, a change of $5.8 million compared to an expense of $1.8 million in 2025. Deferred income tax fluctuates due to movements in taxable and deductible temporary differences related to the special mining duty in Mexico and to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors. The changes in current income taxes and deferred income taxes during the current and comparable periods primarily relate to movements in the tax bases and mining profits and/or losses in Mexico.
Net Income
Net income was $26.8 million for the period, or $0.16 per basic share and $0.15 per diluted share, compared to net income of $8.5 million, or $0.06 per basic and diluted share during the comparable period in 2025. The changes are a result of the items noted above, which are primarily increases in revenues, mine operating income between the two comparable periods. The increase was partially offset by increases in general and administrative expenses and share-based payments, and an elevated foreign exchange loss. Net income was further impacted by movements in the unrealized derivative liability / asset.
EBITDA & Adjusted Income/Loss
(see “Non-IFRS Accounting Standards Measures”)
EBITDA for the period was $38.1 million, an increase of $21.0 million when compared to $17.1 million for the comparable period. The changes in EBITDA are primarily a factor of the items above, excluding any changes in depreciation and depletion, and any changes in income taxes. See Non-IFRS Accounting Standards Measures for a reconciliation for EBITDA.
Adjusted earnings for the period was $35.5 million, an increase of $16.9 million when compared to adjusted earnings of $18.6 million in the corresponding period in 2025. Changes to adjusted earnings are a result of the items noted above in EBITDA, further excluding share-based payments, unrealized gains and losses related to derivative liabilities, write-downs of equipment and movements in foreign exchange. See Non-IFRS Accounting Standards Measures for a reconciliation for adjusted earnings.
Cash Costs & All-in Sustaining Cash Costs
(see “Non-IFRS Accounting Standards Measures”)
Cash costs per silver equivalent payable ounce sold was $26.31, compared to $13.97 for the comparable period in 2025. Cash costs per ounce increased compared with the prior year period, which is attributable to lower silver equivalent ounces sold and additionally to a stronger Mexican Peso compared to the US dollar on average during the six months ended June 30, 2026 compared to the six months ended June 2025, resulting in higher labour and contractor costs.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 13 |
All-in sustaining cash costs per silver equivalent payable ounce sold was $36.52, compared to $20.54 for the comparable period in 2025. The increase is a result of the items noted above, as well as movements in penalties, treatment and refining charges, exploration expenses and sustaining capital expenditures.
See Non-IFRS Accounting Standards Measures for a reconciliation for cash costs and all-in sustaining cash costs.
Production Highlights
| Production Highlights |
| Q2 2026 |
|
| Q2 2025 |
|
| Change |
|
| YTD 2026 |
|
| YTD 2025 |
|
| Change |
|
||||||
| Total Mill Feed (dry tonnes) |
|
| 184,293 |
|
|
| 190,987 |
|
|
| -4 | % |
|
| 369,790 |
|
|
| 358,840 |
|
|
| 3 | % |
| Feed Grade Silver (g/t) |
|
| 67 |
|
|
| 55 |
|
|
| 22 | % |
|
| 62 |
|
|
| 56 |
|
|
| 10 | % |
| Feed Grade Gold (g/t) |
|
| 0.51 |
|
|
| 0.39 |
|
|
| 30 | % |
|
| 0.47 |
|
|
| 0.46 |
|
|
| 1 | % |
| Feed Grade Copper (%) |
|
| 0.30 |
|
|
| 0.42 |
|
|
| -29 | % |
|
| 0.36 |
|
|
| 0.46 |
|
|
| -21 | % |
| Recovery Silver (%) |
|
| 69 | % |
|
| 85 | % |
|
| -18 | % |
|
| 75 | % |
|
| 85 | % |
|
| -12 | % |
| Recovery Gold (%) |
|
| 72 | % |
|
| 74 | % |
|
| -2 | % |
|
| 73 | % |
|
| 75 | % |
|
| -3 | % |
| Recovery Copper (%) |
|
| 72 | % |
|
| 83 | % |
|
| -14 | % |
|
| 79 | % |
|
| 85 | % |
|
| -7 | % |
| Total Silver Produced (oz) |
|
| 267,305 |
|
|
| 283,619 |
|
|
| -6 | % |
|
| 530,362 |
|
|
| 549,300 |
|
|
| -3 | % |
| Total Gold Produced (oz) |
|
| 2,178 |
|
|
| 1,774 |
|
|
| 23 | % |
|
| 4,029 |
|
|
| 3,999 |
|
|
| 1 | % |
| Total Copper Produced (lbs) |
|
| 729,929 |
|
|
| 1,461,980 |
|
|
| -50 | % |
|
| 2,073,583 |
|
|
| 3,065,323 |
|
|
| -32 | % |
| Total Silver Equivalent Produced (oz)1 |
|
| 534,945 |
|
|
| 645,602 |
|
|
| -17 | % |
|
| 1,103,057 |
|
|
| 1,324,060 |
|
|
| -17 | % |
| Production Results by Operation – Q2 2026 |
| Avino |
|
| La Preciosa |
|
| Total |
|
|||
| Total Mill Feed (dry tonnes) |
|
| 155,650 |
|
|
| 28,643 |
|
|
| 184,293 |
|
| Feed Grade Silver (g/t) |
|
| 51 |
|
|
| 153 |
|
|
| 67 |
|
| Feed Grade Gold (g/t) |
|
| 0.54 |
|
|
| 0.30 |
|
|
| 0.51 |
|
| Feed Grade Copper (%) |
|
| 0.30 |
|
|
| 0.05 |
|
|
| 0.30 |
|
| Recovery Silver (%) |
|
| 71 | % |
|
| 60 | % |
|
| 69 | % |
| Recovery Gold (%) |
|
| 73 | % |
|
| 67 | % |
|
| 72 | % |
| Recovery Copper (%) |
|
| 72 | % |
| - | % |
|
| 72 | % | |
| Total Silver Produced (oz) |
|
| 182,499 |
|
|
| 84,806 |
|
|
| 267,305 |
|
| Total Gold Produced (oz) |
|
| 1,996 |
|
|
| 182 |
|
|
| 2,178 |
|
| Total Copper Produced (lbs) |
|
| 729,929 |
|
|
| - |
|
|
| 729,929 |
|
| Total Silver Equivalent1 Produced (oz) |
|
| 434,287 |
|
|
| 100,658 |
|
|
| 534,945 |
|
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 14 |
| Production Results by Operation – YTD 2026 |
| Avino |
|
| La Preciosa |
|
| Total |
|
|||
| Total Mill Feed (dry tonnes) |
|
| 327,049 |
|
|
| 42,741 |
|
|
| 369,790 |
|
| Feed Grade Silver (g/t) |
|
| 49 |
|
|
| 159 |
|
|
| 62 |
|
| Feed Grade Gold (g/t) |
|
| 0.49 |
|
|
| 0.29 |
|
|
| 0.47 |
|
| Feed Grade Copper (%) |
|
| 0.36 |
|
|
| 0.03 |
|
|
| 0.36 |
|
| Recovery Silver (%) |
|
| 77 | % |
|
| 61 | % |
|
| 75 | % |
| Recovery Gold (%) |
|
| 73 | % |
|
| 66 | % |
|
| 73 | % |
| Recovery Copper (%) |
|
| 79 | % |
| -% |
|
|
| 79 | % | |
| Total Silver Produced (oz) |
|
| 395,726 |
|
|
| 134,636 |
|
|
| 530,362 |
|
| Total Gold Produced (oz) |
|
| 3,762 |
|
|
| 267 |
|
|
| 4,029 |
|
| Total Copper Produced (lbs) |
|
| 2,073,583 |
|
|
| - |
|
|
| 2,073,583 |
|
| Total Silver Equivalent1 Produced (oz) |
|
| 945,202 |
|
|
| 157,855 |
|
|
| 1,103,057 |
|
In Q2 2026, AgEq was calculated using metal prices of $68.90 per oz Ag, $4,294 per oz Au and $6.26 per lb Cu. In Q2 2025, AgEq was calculated using metals prices of $33.64 oz Ag, $3,280 oz Au and $4.32 lb Cu. For YTD 2026, AgEq was calculated using metal prices of $74.62 per oz Ag, $4,507 per oz Au and $5.93 per lb Cu. For YTD 2025, AgEq was calculated using metal prices of $32.77 oz Ag, $3,071 oz Au and $4.28 lb Cu. Calculated figures may not add up due to rounding.
Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company's decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company.
Qualified Person(s)
Peter Latta, P.Eng, MBA, Vice President, Technical Services, is a qualified person within the context of National Instrument 43-101, and has reviewed and approved the technical data in this document.
Non-IFRS Accounting Standards Measures
EBITDA and Adjusted earnings
Earnings, or loss, before interest, taxes and amortization (“EBITDA”) is a non - IFRS financial measure which excludes the following items from net earnings:
|
| · | Income tax expense |
|
| · | Finance costs |
|
| · | Amortization and depletion |
Adjusted earnings excludes the following additional items from EBITDA
|
| · | Share-based compensation; |
|
| · | Non-cash items including foreign exchange movements, fair value adjustments on derivative liability movements and other non-recurring items |
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 15 |
Management believes EBITDA and adjusted earnings provides an indication of continuing capacity to generate operating cash flow to fund capital needs, service debt obligations and fund capital expenditures. These measures are intended to provide additional information to investors and analysts and are indicative of the Company’s financial performance. There are not standardized definitions under IFRS Accounting Standards and should not be considered in isolation or as a substitute for measures of operating performance prepared in accordance with IFRS Accounting Standards.
Adjusted earnings excludes share-based payments, and non-operating or recurring items such as foreign exchange gains and losses, writedown of equipment or supplies and materials inventory, fair value adjustments on outstanding warrants and fair value adjustments on derivative liabilities. Under IFRS Accounting Standards, entities must reflect within compensation expense the cost of share-based payments. In the Company’s circumstances, share-based compensation can involve significant amounts that will not be settled in cash but are settled by issuance of shares in exchange. The Company discloses adjusted earnings to aid in understanding the results of the Company.
Adjusted earnings per share is calculated taking adjusted earnings divided by the weighted average number of diluted common shares per the financial statements.
The following table provides a reconciliation of net earnings in the financial statements to EBITDA, adjusted earnings and adjusted earnings per share:
| Expressed in 000’s of US$, unless otherwise noted |
| Q2 2026 |
|
| Q2 2025 |
|
| YTD 2026 |
|
| YTD 2025 |
|
||||
| Net income for the period |
| $ | 10,899 |
|
| $ | 2,864 |
|
| $ | 26,812 |
|
| $ | 8,481 |
|
| Depreciation and depletion |
|
| 1,471 |
|
|
| 925 |
|
|
| 4,808 |
|
|
| 1,796 |
|
| Interest income and other |
|
| (1,135 | ) |
|
| (170 | ) |
|
| (2,061 | ) |
|
| (333 | ) |
| Interest expense |
|
| 122 |
|
|
| 110 |
|
|
| 244 |
|
|
| 191 |
|
| Finance cost |
|
| 166 |
|
|
| 4 |
|
|
| 331 |
|
|
| 9 |
|
| Accretion of reclamation provision |
|
| 69 |
|
|
| 52 |
|
|
| 134 |
|
|
| 100 |
|
| Current income tax expense |
|
| 4,394 |
|
|
| 3,061 |
|
|
| 11,289 |
|
|
| 5,093 |
|
| Deferred income tax (recovery) expense |
|
| (3,427 | ) |
|
| 586 |
|
|
| (3,467 | ) |
|
| 1,793 |
|
| EBITDA |
| $ | 12,559 |
|
| $ | 7,432 |
|
| $ | 38,090 |
|
| $ | 17,130 |
|
| Unrealized (gain) loss on derivatives |
|
| (441 | ) |
|
| (1,509 | ) |
|
| 684 |
|
|
| (1,914 | ) |
| Share-based payments |
|
| 1,465 |
|
|
| 1,320 |
|
|
| 2,340 |
|
|
| 1,682 |
|
| Write down of equipment |
|
| 18 |
|
|
| 163 |
|
|
| 18 |
|
|
| 164 |
|
| Foreign exchange (gain) loss |
|
| (2,476 | ) |
|
| 1,431 |
|
|
| (5,670 | ) |
|
| 1,530 |
|
| Adjusted earnings |
| $ | 11,125 |
|
| $ | 8,837 |
|
| $ | 35,462 |
|
| $ | 18,592 |
|
| Shares outstanding (diluted) |
|
| 175,512,841 |
|
|
| 154,134,484 |
|
|
| 173,996,975 |
|
|
| 151,901,381 |
|
| Adjusted earnings per share |
| $ | 0.06 |
|
| $ | 0.06 |
|
| $ | 0.20 |
|
| $ | 0.12 |
|
Cash Cost and All-in Sustaining Cost per Silver Equivalent Payable Ounce
Sold and per Tonne Processed
The following tables provide a reconciliation of cost of sales from the consolidated financial statements to cash cost and all-in sustaining cost per silver equivalent payable ounce sold and per tonne processed. In each table, “silver equivalent payable ounces sold” consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot silver, gold and copper prices for the corresponding period. Tonnes processed consists of tonnes of ore that were processed at the Company’s milling facilities.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 16 |
Cash cost and all-in sustaining cost per payable ounce and per tonne processed are measures developed by mining companies in an effort to provide a comparable standard. However, there can be no assurance that our reporting of these non-IFRS Accounting Standard measures is similar to that reported by other mining companies. Total cash cost per payable ounce and all-in sustaining cost per payable ounce are measures used by the Company to manage and evaluate operating performance of the Company’s mining operations, and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS Accounting Standards, and are disclosed in addition to IFRS Accounting Standards measures.
The Company’s calculation of all-in sustaining costs includes sustaining capital expenditures of $437 for the six months ended June 30, 2026 and all of which is attributable to the Avino Mine.
To facilitate a better understanding of these measures as calculated by the Company, detailed reconciliations between the non-IFRS Accounting Standard measures and the Company’s consolidated financial statements are provided below. The non-IFRS Accounting Standard measures presented are intended to provide additional information, and should not be considered in isolation nor should they be considered substitutes for IFRS Accounting Standards measures. Calculated figures may not add up accurately due to rounding.
The following table reconciles cost of sales to cash cost per payable AgEq oz and all-in sustaining cash cost per payable AgEq oz:
|
|
| Consolidated |
|
|||||||||||||
| Expressed in 000’s of US$, unless otherwise noted |
| Q2 2026 |
|
| Q2 2025 |
|
| YTD 2026 |
|
| YTD 2025 |
|
||||
| Cost of sales |
| $ | 13,816 |
|
| $ | 11,581 |
|
| $ | 29,831 |
|
| $ | 19,855 |
|
| Exploration expenses |
|
| (1,288 | ) |
|
| (307 | ) |
|
| (2,176 | ) |
|
| (582 | ) |
| Write down of equipment |
|
| (18 | ) |
|
| (163 | ) |
|
| (18 | ) |
|
| (164 | ) |
| Depletion and depreciation |
|
| (1,430 | ) |
|
| (886 | ) |
|
| (4,725 | ) |
|
| (1,720 | ) |
| Cash production cost |
|
| 11,080 |
|
|
| 10,225 |
|
|
| 22,912 |
|
|
| 17,389 |
|
| Silver equivalent payable ounces sold |
|
| 387,142 |
|
|
| 676,453 |
|
|
| 870,866 |
|
|
| 1,244,334 |
|
| Cash cost per silver equivalent ounce |
| $ | 28.62 |
|
| $ | 15.11 |
|
| $ | 26.31 |
|
| $ | 13.97 |
|
| General and administrative expenses |
|
| 3,805 |
|
|
| 3,198 |
|
|
| 7,655 |
|
|
| 5,682 |
|
| Treatment & refining charges |
|
| 178 |
|
|
| 654 |
|
|
| 607 |
|
|
| 1,264 |
|
| Penalties |
|
| 30 |
|
|
| 605 |
|
|
| 435 |
|
|
| 1,495 |
|
| Sustaining capital expenditures |
|
| 128 |
|
|
| 525 |
|
|
| 437 |
|
|
| 904 |
|
| Exploration expenses |
|
| 1,288 |
|
|
| 307 |
|
|
| 2,176 |
|
|
| 582 |
|
| Share-based payments and G&A depreciation |
|
| (1,506 | ) |
|
| (1,359 | ) |
|
| (2,422 | ) |
|
| (1,758 | ) |
| Cash operating cost |
| $ | 15,003 |
|
| $ | 14,155 |
|
| $ | 31,800 |
|
| $ | 25,558 |
|
| AISC per silver equivalent ounce |
| $ | 38.75 |
|
| $ | 20.93 |
|
| $ | 36.52 |
|
| $ | 20.54 |
|
*Certain amounts shown may not add exactly to the total due to rounding differences
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 17 |
The following tables reconcile cost of sales to cash cost and all-in sustaining cash cost per payable AgEq oz at each of the Company’s mining operations:
|
|
| Q2 2026 |
|
| Q2 2025 |
|
||||||||||||||||||
| Expressed in 000’s of US$, unless otherwise noted |
| Avino |
|
| La Preciosa |
|
| Total |
|
| Avino |
|
| La Preciosa |
|
| Total |
|
||||||
| Cost of sales |
| $ | 11,184 |
|
| $ | 2,632 |
|
| $ | 13,816 |
|
| $ | 11,581 |
|
| $ | - |
|
| $ | 11,581 |
|
| Exploration expenses |
|
| (584 | ) |
|
| (704 | ) |
|
| (1,288 | ) |
|
| (307 | ) |
|
| - |
|
|
| (307 | ) |
| Write down of equipment |
|
| (18 | ) |
|
| - |
|
|
| (18 | ) |
|
| (163 | ) |
|
| - |
|
|
| (163 | ) |
| Depletion and depreciation |
|
| (1,213 | ) |
|
| (217 | ) |
|
| (1,430 | ) |
|
| (886 | ) |
|
| - |
|
|
| (886 | ) |
| Cash production cost |
|
| 9,369 |
|
|
| 1,711 |
|
|
| 11,080 |
|
|
| 10,225 |
|
|
| - |
|
|
| 10,225 |
|
| Silver equivalent payable ounces sold |
|
| 334,128 |
|
|
| 53,014 |
|
|
| 387,142 |
|
|
| 676,453 |
|
|
| - |
|
|
| 676,453 |
|
| Cash cost per silver equivalent payable ounce sold |
| $ | 28.04 |
|
| $ | 32.29 |
|
| $ | 28.62 |
|
| $ | 15.11 |
|
| $ | - |
|
| $ | 15.11 |
|
| General and administrative expenses |
|
| 3,519 |
|
|
| 286 |
|
|
| 3,805 |
|
|
| 3,198 |
|
|
| - |
|
|
| 3,198 |
|
| Treatment & refining charges |
|
| 237 |
|
|
| (59 | ) |
|
| 178 |
|
|
| 654 |
|
|
| - |
|
|
| 654 |
|
| Penalties |
|
| 30 |
|
|
| - |
|
|
| 30 |
|
|
| 605 |
|
|
| - |
|
|
| 605 |
|
| Sustaining capital expenditures |
|
| 128 |
|
|
| - |
|
|
| 128 |
|
|
| 525 |
|
|
| - |
|
|
| 525 |
|
| Exploration expenses |
|
| 584 |
|
|
| 704 |
|
|
| 1,288 |
|
|
| 307 |
|
|
| - |
|
|
| 307 |
|
| Share-based payments and G&A depreciation |
|
| (1,357 | ) |
|
| (149 | ) |
|
| (1,506 | ) |
|
| (1,359 | ) |
|
| - |
|
|
| (1,359 | ) |
| Cash operating cost |
| $ | 12,510 |
|
| $ | 2,493 |
|
| $ | 15,003 |
|
| $ | 14,155 |
|
| $ | - |
|
| $ | 14,155 |
|
| AISC per silver equivalent payable ounce sold |
| $ | 37.44 |
|
| $ | 47.06 |
|
| $ | 38.75 |
|
| $ | 20.93 |
|
| $ | - |
|
| $ | 20.93 |
|
|
|
| YTD 2026 |
|
| YTD 2025 |
|
||||||||||||||||||
| Expressed in 000’s of US$, unless otherwise noted |
| Avino |
|
| La Preciosa |
|
| Total |
|
| Avino |
|
| La Preciosa |
|
| Total |
|
||||||
| Cost of sales |
| $ | 25,575 |
|
| $ | 4,256 |
|
| $ | 29,831 |
|
| $ | 19,855 |
|
| $ | - |
|
| $ | 19,855 |
|
| Exploration expenses |
|
| (917 | ) |
|
| (1,259 | ) |
|
| (2,176 | ) |
|
| (582 | ) |
|
| - |
|
|
| (582 | ) |
| Write down of equipment and supplies and materials inventory |
|
| (18 | ) |
|
| - |
|
|
| (18 | ) |
|
| (164 | ) |
|
| - |
|
|
| (164 | ) |
| Depletion and depreciation |
|
| (4,396 | ) |
|
| (329 | ) |
|
| (4,725 | ) |
|
| (1,720 | ) |
|
| - |
|
|
| (1,720 | ) |
| Cash production cost |
|
| 20,244 |
|
|
| 2,668 |
|
|
| 22,912 |
|
|
| 17,389 |
|
|
| - |
|
|
| 17,389 |
|
| Silver equivalent payable ounces sold |
|
| 767,886 |
|
|
| 102,980 |
|
|
| 870,866 |
|
|
| 1,244,334 |
|
|
| - |
|
|
| 1,244,334 |
|
| Cash cost per silver equivalent payable ounce sold |
| $ | 26.36 |
|
| $ | 25.91 |
|
| $ | 26.31 |
|
| $ | 13.97 |
|
| $ | - |
|
| $ | 13.97 |
|
| General and administrative expenses |
|
| 7,099 |
|
|
| 556 |
|
|
| 7,655 |
|
|
| 5,682 |
|
|
| - |
|
|
| 5,682 |
|
| Treatment & refining charges |
|
| 664 |
|
|
| (57 | ) |
|
| 607 |
|
|
| 1,264 |
|
|
| - |
|
|
| 1,264 |
|
| Penalties |
|
| 435 |
|
|
| - |
|
|
| 435 |
|
|
| 1,495 |
|
|
| - |
|
|
| 1,495 |
|
| Sustaining capital expenditures |
|
| 437 |
|
|
| - |
|
|
| 437 |
|
|
| 904 |
|
|
| - |
|
|
| 904 |
|
| Exploration expenses |
|
| 917 |
|
|
| 1,259 |
|
|
| 2,176 |
|
|
| 582 |
|
|
| - |
|
|
| 582 |
|
| Share-based payments and G&A depreciation |
|
| (2,184 | ) |
|
| (238 | ) |
|
| (2,422 | ) |
|
| (1,758 | ) |
|
| - |
|
|
| (1,758 | ) |
| Cash operating cost |
| $ | 27,612 |
|
| $ | 4,188 |
|
| $ | 31,800 |
|
| $ | 25,558 |
|
| $ | - |
|
| $ | 25,558 |
|
| AISC per silver equivalent payable ounce sold |
| $ | 35.96 |
|
| $ | 40.68 |
|
| $ | 36.52 |
|
| $ | 20.54 |
|
| $ | - |
|
| $ | 20.54 |
|
*Certain amounts shown may not add exactly to the total due to rounding differences – prior to Q4 2025, there was minimal processing from La Preciosa and primarily all production came from the Avino property.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 18 |
The following tables reconcile cost of sales to cash cost and all-in sustaining cash cost per tonne:
|
|
| Consolidated |
|
|||||||||||||
| Expressed in 000’s of US$, unless otherwise noted |
| Q2 2026 |
|
| Q2 2025 |
|
| YTD 2026 |
|
| YTD 2025 |
|
||||
| Cost of sales |
| $ | 13,816 |
|
| $ | 11,581 |
|
| $ | 29,831 |
|
| $ | 19,855 |
|
| Exploration expenses |
|
| (1,288 | ) |
|
| (307 | ) |
|
| (2,176 | ) |
|
| (582 | ) |
| Write down of equipment |
|
| (18 | ) |
|
| (163 | ) |
|
| (18 | ) |
|
| (164 | ) |
| Inventory adjustment |
|
| 2,691 |
|
|
| (175 | ) |
|
| 2,738 |
|
|
| 1,376 |
|
| Depletion and depreciation |
|
| (1,430 | ) |
|
| (886 | ) |
|
| (4,725 | ) |
|
| (1,720 | ) |
| Cash production cost |
|
| 13,771 |
|
|
| 10,050 |
|
|
| 25,650 |
|
|
| 18,765 |
|
| Tonnes processed |
|
| 184,293 |
|
|
| 190,987 |
|
|
| 369,790 |
|
|
| 358,840 |
|
| Cash cost per silver equivalent ounce |
| $ | 74.72 |
|
| $ | 52.61 |
|
| $ | 69.36 |
|
| $ | 52.29 |
|
| General and administrative expenses |
|
| 3,805 |
|
|
| 3,198 |
|
|
| 7,655 |
|
|
| 5,682 |
|
| Treatment & refining charges |
|
| 178 |
|
|
| 654 |
|
|
| 607 |
|
|
| 1,264 |
|
| Penalties |
|
| 30 |
|
|
| 605 |
|
|
| 435 |
|
|
| 1,495 |
|
| Sustaining capital expenditures |
|
| 128 |
|
|
| 525 |
|
|
| 437 |
|
|
| 904 |
|
| Exploration expenses |
|
| 1,288 |
|
|
| 307 |
|
|
| 2,176 |
|
|
| 582 |
|
| Share-based payments and G&A depreciation |
|
| (1,506 | ) |
|
| (1,359 | ) |
|
| (2,422 | ) |
|
| (1,758 | ) |
| Cash operating cost |
| $ | 17,694 |
|
| $ | 13,980 |
|
| $ | 34,538 |
|
| $ | 26,934 |
|
| AISC per silver equivalent ounce |
| $ | 96.01 |
|
| $ | 73.20 |
|
| $ | 93.40 |
|
| $ | 75.06 |
|
*Certain amounts shown may not add exactly to the total due to rounding differences
The following tables reconcile cost of sales to cash cost and all-in sustaining cash cost per tonne processed at each of the Company’s mining operations:
|
|
| Q2 2026 |
|
| Q2 2025 |
|
||||||||||||||||||
| Expressed in 000’s of US$, unless otherwise noted |
| Avino |
|
| La Preciosa |
|
| Total |
|
| Avino |
|
| La Preciosa |
|
| Total |
|
||||||
| Cost of sales |
| $ | 11,184 |
|
| $ | 2,632 |
|
| $ | 13,816 |
|
| $ | 11,581 |
|
| $ | - |
|
| $ | 11,581 |
|
| Exploration expenses |
|
| (584 | ) |
|
| (704 | ) |
|
| (1,288 | ) |
|
| (307 | ) |
|
| - |
|
|
| (307 | ) |
| Write down of equipment |
|
| (18 | ) |
|
| - |
|
|
| (18 | ) |
|
| (163 | ) |
|
| - |
|
|
| (163 | ) |
| Inventory adjustment |
|
| 620 |
|
|
| 2,071 |
|
|
| 2,691 |
|
|
| (175 | ) |
|
| - |
|
|
| (175 | ) |
| Depletion and depreciation |
|
| (1,213 | ) |
|
| (217 | ) |
|
| (1,430 | ) |
|
| (886 | ) |
|
| - |
|
|
| (886 | ) |
| Cash production cost |
|
| 9,989 |
|
|
| 3,782 |
|
|
| 13,771 |
|
|
| 10,050 |
|
|
| - |
|
|
| 10,050 |
|
| Tonnes processed |
|
| 155,650 |
|
|
| 28,643 |
|
|
| 184,293 |
|
|
| 190,987 |
|
|
| - |
|
|
| 190,987 |
|
| Cash cost per silver equivalent payable ounce sold |
| $ | 64.17 |
|
| $ | 132.07 |
|
| $ | 74.72 |
|
| $ | 52.61 |
|
| $ | - |
|
| $ | 15.11 |
|
| General and administrative expenses |
|
| 3,519 |
|
|
| 286 |
|
|
| 3,805 |
|
|
| 3,198 |
|
|
| - |
|
|
| 3,198 |
|
| Treatment & refining charges |
|
| 237 |
|
|
| (59 | ) |
|
| 178 |
|
|
| 654 |
|
|
| - |
|
|
| 654 |
|
| Penalties |
|
| 30 |
|
|
| - |
|
|
| 30 |
|
|
| 605 |
|
|
| - |
|
|
| 605 |
|
| Sustaining capital expenditures |
|
| 128 |
|
|
| - |
|
|
| 128 |
|
|
| 525 |
|
|
| - |
|
|
| 525 |
|
| Exploration expenses |
|
| 584 |
|
|
| 704 |
|
|
| 1,288 |
|
|
| 307 |
|
|
| - |
|
|
| 307 |
|
| Share-based payments and G&A depreciation |
|
| (1,357 | ) |
|
| (149 | ) |
|
| (1,506 | ) |
|
| (1,359 | ) |
|
| - |
|
|
| (1,359 | ) |
| Cash operating cost |
| $ | 13,130 |
|
| $ | 4,564 |
|
| $ | 17,694 |
|
| $ | 13,980 |
|
| $ | - |
|
| $ | 13,980 |
|
| AISC per silver equivalent payable ounce sold |
| $ | 84.35 |
|
| $ | 159.40 |
|
| $ | 96.01 |
|
| $ | 73.20 |
|
| $ | - |
|
| $ | 73.20 |
|
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 19 |
|
|
|
|
| YTD 2026 |
|
| YTD 2025 |
|
||||||||||||||||||
| Expressed in 000’s of US$, unless otherwise noted |
| Avino |
|
| La Preciosa |
|
| Total |
|
| Avino |
|
| La Preciosa |
|
| Total |
|
||||||
| Cost of sales |
| $ | 25,575 |
|
| $ | 4,256 |
|
| $ | 29,831 |
|
| $ | 19,855 |
|
| $ | - |
|
| $ | 19,855 |
|
| Exploration expenses |
|
| (917 | ) |
|
| (1,259 | ) |
|
| (2,176 | ) |
|
| (582 | ) |
|
| - |
|
|
| (582 | ) |
| Write down of equipment |
|
| (18 | ) |
|
| - |
|
|
| (18 | ) |
|
| (164 | ) |
|
| - |
|
|
| (164 | ) |
| Inventory adjustment |
|
| (157 | ) |
|
| 2,895 |
|
|
| 2,738 |
|
|
| 1,376 |
|
|
|
|
|
|
| 1,376 |
|
| Depletion and depreciation |
|
| (4,396 | ) |
|
| (329 | ) |
|
| (4,725 | ) |
|
| (1,720 | ) |
|
| - |
|
|
| (1,720 | ) |
| Cash production cost |
|
| 20,087 |
|
|
| 5,562 |
|
|
| 25,650 |
|
|
| 18,765 |
|
|
| - |
|
|
| 18,765 |
|
| Tonnes processed |
|
| 327,049 |
|
|
| 42,741 |
|
|
| 369,790 |
|
|
| 358,840 |
|
|
| - |
|
|
| 358,840 |
|
| Cash cost per silver equivalent payable ounce sold |
| $ | 61.42 |
|
| $ | 130.15 |
|
| $ | 69.36 |
|
| $ | 52.29 |
|
| $ | - |
|
| $ | 52.29 |
|
| General and administrative expenses |
|
| 7,099 |
|
|
| 556 |
|
|
| 7,655 |
|
|
| 5,682 |
|
|
| - |
|
|
| 5,682 |
|
| Treatment & refining charges |
|
| 664 |
|
|
| (57 | ) |
|
| 607 |
|
|
| 1,264 |
|
|
| - |
|
|
| 1,264 |
|
| Penalties |
|
| 435 |
|
|
| - |
|
|
| 435 |
|
|
| 1,495 |
|
|
| - |
|
|
| 1,495 |
|
| Sustaining capital expenditures |
|
| 437 |
|
|
| - |
|
|
| 437 |
|
|
| 904 |
|
|
| - |
|
|
| 904 |
|
| Exploration expenses |
|
| 917 |
|
|
| 1,259 |
|
|
| 2,176 |
|
|
| 582 |
|
|
| - |
|
|
| 582 |
|
| Share-based payments and G&A depreciation |
|
| (2,184 | ) |
|
| (238 | ) |
|
| (2,422 | ) |
|
| (1,758 | ) |
|
| - |
|
|
| (1,758 | ) |
| Cash operating cost |
| $ | 27,455 |
|
| $ | 7,083 |
|
| $ | 34,538 |
|
| $ | 25,558 |
|
| $ | - |
|
| $ | 25,558 |
|
| AISC per silver equivalent payable ounce sold |
| $ | 83.95 |
|
| $ | 165.73 |
|
| $ | 93.40 |
|
| $ | 20.54 |
|
| $ | - |
|
| $ | 20.54 |
|
*Certain amounts shown may not add exactly to the total due to rounding differences – prior to Q4 2025, there was minimal processing from La Preciosa and primarily all production came from the Avino property.
Mine Operating Cash Flow Before Taxes
Mine operating cash flow before taxes is a non-IFRS Accounting Standard measure that does not have a standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Mine operating cash flow before taxes is calculated as mine operating income less depreciation and depletion in cost of sales and write down or reversals of equipment and supplies and materials inventory. Mine operating cash flow before taxes is used by management to assess the performance of the mine operations, excluding corporate activities and is provided to investors as a measure of the Company’s operating performance.
| In 000’s |
| Q2 2026 |
|
| Q2 2025 |
|
| YTD 2026 |
|
| YTD 2025 |
|
||||
| Mine operating income – per financial statements |
| $ | 12,971 |
|
| $ | 10,224 |
|
| $ | 36,389 |
|
| $ | 20,786 |
|
| Depreciation and depletion included in cost of sales |
|
| 1,430 |
|
|
| 886 |
|
|
| 4,725 |
|
|
| 1,720 |
|
| Write down of equipment |
|
| 18 |
|
|
| 163 |
|
|
| 18 |
|
|
| 164 |
|
| Mine operating cash flow before taxes |
| $ | 14,419 |
|
| $ | 11,273 |
|
| $ | 41,132 |
|
| $ | 22,670 |
|
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 20 |
Operating Cash Flow Before Working Capital Adjustments
Operating cash flow before working capital adjustments a non-IFRS Accounting Standard measure that does not have a standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Operating cash flow before working capital adjustments is calculated as cash provided by operating activities on the consolidated statement of cash flows, less net changes in non-cash working capital items per the consolidated statement of cash flows. This measure is used by management to assess the performance of the mine operations and is provided to investors as a measure of the Company’s operating performance.
| In 000’s |
| Q2 2026 |
|
| Q2 2025 |
|
| YTD 2026 |
|
| YTD 2025 |
|
||||
| Cash provided by operating activities |
| $ | 13,260 |
|
| $ | 8,350 |
|
| $ | 26,892 |
|
| $ | 9,108 |
|
| Net change in non-cash working capital items |
|
| (5,006 | ) |
|
| (2,081 | ) |
|
| 51 |
|
|
| 4,522 |
|
| Operating cash flow before working capital adjustments |
| $ | 8,254 |
|
| $ | 6,269 |
|
| $ | 26,943 |
|
| $ | 13,630 |
|
Working Capital
Management uses working capital to assess the Company’s ongoing liquidity position and future requirements, and believe it provides useful information to an investor. The Company’s working capital position is as follows:
| In 000’s |
| June 30, 2026 |
|
| December 31, 2025 |
|
||
| Current assets |
| $ | 169,777 |
|
| $ | 132,068 |
|
| Current liabilities |
|
| (29,003 | ) |
|
| (32,506 | ) |
| Working capital |
| $ | 140,774 |
|
| $ | 99,562 |
|
Results of Operations – Summary of Quarterly Results
| In 000’s |
| Q2 2026 |
|
| Q1 2026 |
|
| Q4 2025 |
|
| Q3 2025 |
|
| Q2 2025 |
|
| Q1 2025 |
|
| Q4 2024 |
|
| Q3 2024 |
|
||||||||
| Revenue |
| $ | 26,787 |
|
| $ | 39,433 |
|
| $ | 30,544 |
|
| $ | 21,042 |
|
| $ | 21,805 |
|
| $ | 18,836 |
|
| $ | 24,382 |
|
| $ | 14,616 |
|
| Net income |
|
| 10,899 |
|
|
| 15,913 |
|
|
| 10,460 |
|
|
| 7,702 |
|
|
| 2,864 |
|
|
| 5,617 |
|
|
| 5,092 |
|
|
| 1,169 |
|
| Earnings per share - basic |
|
| 0.06 |
|
|
| 0.10 |
|
|
| 0.07 |
|
|
| 0.05 |
|
|
| 0.02 |
|
|
| 0.04 |
|
|
| 0.04 |
|
|
| 0.01 |
|
| Earnings per share - diluted |
|
| 0.06 |
|
|
| 0.09 |
|
|
| 0.06 |
|
|
| 0.05 |
|
|
| 0.02 |
|
|
| 0.04 |
|
|
| 0.03 |
|
|
| 0.01 |
|
| Total Assets |
| $ | 322,524 |
|
| $ | 318,838 |
|
| $ | 279,032 |
|
| $ | 221,858 |
|
| $ | 174,680 |
|
| $ | 157,693 |
|
| $ | 148,711 |
|
| $ | 135,366 |
|
During Q2 2026, revenue increased significantly compared to previous quarters, mainly due to elevated silver prices even with lower silver equivalent ounces sold in the current quarter.
Net income and earnings per share in Q2 2026 were lower than prior year mainly due to lower silver equivalent ounces sold compared with prior quarters. Earnings overall have increased quarter over quarter, other than Q3 2025, mainly due to better metal realized prices, volume sold and lower costs due to cost management as well as positive movements between the USD and Mexican Peso exchange rates.
For further details see “Financial Results” section.
Total assets continue to increase overall when compared to previous quarters, as result of operating and financing cash flow generation, and capital investment in the operation.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 21 |
Quarterly results will fluctuate with changes in revenues, cost of sales, general and administrative expenses, including non-cash items such as share-based payments, and other items including foreign exchange and deferred income taxes. These fluctuations are mainly caused by market conditions such as fluctuations in metal prices, currency fluctuations as well as variations in mineralization of the zones mined.
Cash Flow
|
|
| June 30, 2026 |
|
| June 30, 2025 |
|
||
| Cash generated by operating activities |
| $ | 26,892 |
|
| $ | 9,108 |
|
| Cash generated by financing activities |
|
| 22,717 |
|
|
| 6,635 |
|
| Cash used in investing activities |
|
| (6,529 | ) |
|
| (5,757 | ) |
| Change in cash |
|
| 43,080 |
|
|
| 9,986 |
|
| Effect of exchange rate changes on cash |
|
| (21 | ) |
|
| (24 | ) |
| Cash, beginning of period |
|
| 101,724 |
|
|
| 27,317 |
|
| Cash, end of period |
| $ | 144,783 |
|
| $ | 32,279 |
|
Operating Activities
Cash generated by operating activities for the six months ended June 30, 2026, was $26.9 million, an increase of $17.8 million compared to $9.1 million generated for the six months ended June 30, 2025. Cash movements from operating activities can fluctuate with changes in net income and working capital movements. During the six months ended June 30, 2026, cash generated from operating activities increased primarily as a result of increases to net income by $26.8 million, as well as positive unrealized foreign exchange movements totaling $5.7 million. These were offset by offset primarily by movements in non-cash items such as an increase to depreciation and depletion of $4.8 million, unrealized derivatives movements totaling $0.7 million in additional loss, as well as smaller movements in other non-cash items.
Financing Activities
Cash generated by financing activities was $22.7 million for the six months ended June 30, 2026, compared to $6.6 million generated for the six months ended June 30, 2025. The movement is a result of proceeds from shares issued on the ATM and option exercises, partially offset by higher payments of lease and equipment loan. During the six months ended June 30, 2025, the Company received net proceeds from issuance of shares for cash and from options exercise of $27.8 million (June 30, 2025 – $7.7 million) offset by share repurchased and cancelled totalling $3.0 million paid (June 30, 2025 - Nil). The Company also made lease and equipment loan payments totaling $2.0 million (June 30, 2025 – $1.1 million).
Investing Activities
Cash used in investing activities for the six months ended June 30, 2026, was $6.5 million compared to $5.8 million for the six months ended June 30, 2025. Investing activities in the period primarily related to additions to plant, equipment and mining properties at the Avino and La Preciosa mining operations.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 22 |
Liquidity and Capital Resources
The Company’s ability to generate sufficient amounts of cash, in both the short term and the long term, to maintain existing capacity and to fund ongoing exploration, is dependent upon the discovery of economically recoverable reserves or resources and the ability of the Company to continue with sustainable and profitable mining operations.
Management expects that the Company’s ongoing liquidity requirements will be funded from cash generated from current operations. If required to fund ongoing exploration activities, and meet its objectives, including ongoing advancement at the Avino Mine further financing may be required. The Company continues to evaluate financing opportunities to advance its projects. The Company’s ability to secure adequate financing is, in part, dependent on overall market conditions, the prices of silver, gold, and copper, and other factors.
The Company’s recent financing activities are summarized in the table below.
| Intended Use Of Proceeds |
|
| Actual Use Of Proceeds |
| In June 2025, the Company announced the renewal of the at-the-market (the “2025 ATM”) sales agreement for gross proceeds of up to $40 million. At December 31, 2025, the Company had received gross proceeds of $40 million in connection with the 2025 ATM, completing the program. Proceeds from the 2025 ATM are intended for development activities focused at La Preciosa, sustaining capital and development activities at the Avino Mine, including equipment lease and loan payments, and general working capital purposes.
In November 2025, the Company announced a new at-the-market (the “2025 ATM #2”) sales agreement for gross proceeds of up to $60 million. At March 31, 2026, the Company had received gross proceeds of approximately $59 million in connection with the 2025 ATM #2. The proceeds from the 2025 ATM #2 are intended for development activities focused at La Preciosa, sustaining capital and development activities at the Avino Mine, including equipment lease and loan payments, and general working capital purposes.
|
|
| As of the date of this MD&A, the Company is using the funds as intended.
During this period, funds have been used for exploration and evaluation activities, the acquisition of mining equipment and development activities at La Preciosa, shares repurchase and cancelled NCIB, the acquisition of sustaining capital equipment and development of the Avino Mine and the repayments of capital equipment acquired under lease and loan. Further, funds were used for the repurchase of existing royalty and production obligations at La Preciosa. Remaining funds have remained in treasury for further acquisitions or investments into the existing operations
|
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 23 |
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements other than those disclosed in the Commitments section of this MD&A.
Transactions with Related Parties
All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.
A. Key management personnel
The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel is as follows:
|
|
| Three months ended June 30, 2026 |
|
| Three months ended June 30, 2025 |
|
| Six months ended June 30, 2026 |
|
| Six months ended June 30, 2025 |
|
||||
| Salaries, benefits, and consulting fees |
| $ | 470 |
|
| $ | 347 |
|
| $ | 882 |
|
| $ | 923 |
|
| Share-based payments |
|
| 1,271 |
|
|
| 1,048 |
|
|
| 2,011 |
|
|
| 1,336 |
|
|
|
| $ | 1,741 |
|
| $ | 1,395 |
|
| $ | 2,893 |
|
| $ | 2,259 |
|
B. Amounts due to/(from) related parties
In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand.
The following table summarizes the amounts were due to/(from) related parties:
|
|
| June 30, 2026 |
|
| December 31, 2025 |
|
||
| Oniva International Services Corp. |
| $ | 95 |
|
| $ | 98 |
|
| Silver Wolf Exploration Ltd. |
|
| (236 | ) |
|
| (239 | ) |
|
|
| $ | (141 | ) |
| $ | (141 | ) |
For services provided to the Company by the President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by the Company’s President and CEO and director, for consulting services. For the six months ended June 30, 2026, the Company paid $181 (June 30, 2025 - $259) to ICC.
C. Other related party transactions
The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company, with a 2.5% markup. The President & CEO, and director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 24 |
The transactions with Oniva are summarized below:
|
|
| Three months ended June 30, 2026 |
|
| Three months ended June 30, 2025 |
|
| Six months ended June 30, 2026 |
|
| Six months ended June 30, 2025 |
|
||||
| Salaries and benefits |
| $ | 400 |
|
| $ | 262 |
|
| $ | 940 |
|
| $ | 573 |
|
| Office and miscellaneous |
|
| 132 |
|
|
| 137 |
|
|
| 372 |
|
|
| 271 |
|
|
|
| $ | 532 |
|
| $ | 399 |
|
| $ | 1,312 |
|
| $ | 844 |
|
Financial Instruments and Risks
The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.
The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.
A. Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short- term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.
The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with two (December 31, 2025 – two) counterparties. However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.
The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At June 30, 2026, no amounts were held as collateral.
B. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at June 30, 2026, in the amount of $144,783 and current assets exceeded current liabilities by $140,774 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 25 |
The maturity profiles of the Company’s contractual obligations and commitments as at June 30, 2026, are summarized as follows:
|
|
| Total |
|
| Less Than 1 Year |
|
| 1-5 years |
|
| More Than 5 Years |
|
||||
| Accounts payable and accrued liabilities |
| $ | 11,173 |
|
| $ | 11,173 |
|
| $ | - |
|
| $ | - |
|
| Deferred consideration payable |
|
| 8,750 |
|
|
| 8,750 |
|
|
| - |
|
|
| - |
|
| Equipment loans |
|
| 1,947 |
|
|
| 848 |
|
|
| 1,099 |
|
|
| - |
|
| Finance lease obligations |
|
| 7,102 |
|
|
| 3,187 |
|
|
| 3,915 |
|
|
| - |
|
| Total |
| $ | 28,972 |
|
| $ | 23,958 |
|
| $ | 5,014 |
|
| $ | - |
|
C. Market Risk
Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.
Interest Rate Risk
Interest rate risk consists of two components:
|
| i. | To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk. |
|
| ii. | To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk. |
In management’s opinion, the Company is not materially exposed to interest rate risk, as any material debt obligations that bear interest are fixed and not subject to floating interest rates. A 10% change in the interest rate would not a result in a material impact on the Company’s operations.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 26 |
The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:
|
|
|
|
| June 30, 2026 |
|
|
|
| December 31, 2025 |
|
||||||
|
|
| MXN |
|
| CDN |
|
| MXN |
|
| CDN |
|
||||
| Cash |
| $ | 30,176 |
|
| $ | 3,055 |
|
| $ | 29,172 |
|
| $ | 1,710 |
|
| Due from related parties |
|
| - |
|
|
| 335 |
|
|
| 4,026 |
|
|
| - |
|
| Long-term investments |
|
| - |
|
|
| 4,552 |
|
|
| - |
|
|
| 5,690 |
|
| Reclamation bonds |
|
| - |
|
|
| 6 |
|
|
| - |
|
|
| 6 |
|
| Amounts receivable |
|
| 10,094 |
|
|
| 73 |
|
|
| 11,461 |
|
|
| 30 |
|
| Accounts payable and accrued liabilities |
|
| (73,823 | ) |
|
| (190 | ) |
|
| (73,792 | ) |
|
| (311 | ) |
| Due to related parties |
|
| - |
|
|
| (135 | ) |
|
| - |
|
|
| (135 | ) |
| Finance lease obligations |
|
| (1,881 | ) |
|
| (374 | ) |
|
| (4,320 | ) |
|
| (430 | ) |
| Net exposure |
|
| (35,434 | ) |
|
| 7,322 |
|
|
| (33,453 | ) |
|
| 6,560 |
|
| US dollar equivalent |
| $ | (2,023 | ) |
| $ | 5,152 |
|
| $ | (1,863 | ) |
| $ | 4,785 |
|
Based on the net US dollar denominated asset and liability exposures as at June 30, 2026, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the six months ended June 30, 2026, by approximately $44 (December 31, 2025 - $248). The Company has entered into certain foreign currency contracts to mitigate this risk and during the six months ended June 30, 2026, recorded a derivative asset of $630 (December 31, 2025 – derivative liability of $1,314).
Price Risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.
The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At June 30, 2026, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $36 (December 31, 2025 - $743).
The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At June 30, 2026, a 10% change in market prices would have an impact on net earnings (loss) of approximately $293 (December 31, 2025 - $384).
The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 27 |
D. Classification of Financial Instruments
IFRS 13 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at June 30, 2026:
|
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
|||
| FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|||
| Cash |
| $ | 144,783 |
|
| $ | - |
|
| $ | - |
|
| Amounts receivable |
|
| - |
|
|
| - |
|
|
| - |
|
| Derivative asset |
|
| - |
|
|
| 630 |
|
|
| - |
|
| Long-term investments |
|
| 2,931 |
|
|
| - |
|
|
| 272 |
|
| Total financial assets |
| $ | 147,714 |
|
| $ | 630 |
|
| $ | 272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
| $ | - |
|
| $ | (356 | ) |
| $ | - |
|
| Derivative liability |
|
| - |
|
|
| - |
|
|
| - |
|
| Total financial liabilities |
| $ | - |
|
| $ | (356 | ) |
| $ | - |
|
The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2025:
|
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
|||
| FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|||
| Cash |
| $ | 101,724 |
|
| $ | - |
|
| $ | - |
|
| Amounts receivable |
|
| - |
|
|
| 7,430 |
|
|
| - |
|
| Derivative asset |
|
| - |
|
|
| 1,314 |
|
|
| - |
|
| Long-term investments |
|
| 3,843 |
|
|
| - |
|
|
| 308 |
|
| Total financial assets |
| $ | 105,567 |
|
| $ | 8,744 |
|
| $ | 308 |
|
| FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liability |
|
| - |
|
|
| - |
|
|
| - |
|
| Total financial liabilities |
| $ | - |
|
| $ | - |
|
| $ | - |
|
Commitments
The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 10 of the consolidated financial statements.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 28 |
The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:
|
|
| June 30, 2026 |
|
| December 31, 2025 |
|
||
| Not later than one year |
| $ | 803 |
|
| $ | 459 |
|
| Later than one year and not later than five years |
|
| 1,229 |
|
|
| 1,677 |
|
| Later than five years |
|
| 3,075 |
|
|
| 3,210 |
|
|
|
| $ | 5,107 |
|
| $ | 5,346 |
|
Office lease payments recognized as an expense during the six months ended June 30, 2026, totaled $22 (June 30, 2025 - $19).
Due to the nature of the Company’s activities, the Company is from time to time involved in various claims and legal proceedings arising in the conduct of its business. At the reporting date, none of such claims and legal proceedings are considered probable of resulting in a material loss or judgment against the Company.
Subsequent Events
Normal Course Issuer Bid (“NCIB”)
Subsequent to June 30, 2026, the Company repurchased and cancelled 40,000 common shares through its NCIB at an average price of $5.65 for a total cost of $226.
Stock Option Exercises
Subsequent to June 30, 2026, the Company issued 27,500 common shares through the exercise of 27,500 stock options at an average exercise price of C$1.20 for proceeds of C$33.
Outstanding Share Data
The Company’s authorized share capital consists of an unlimited number of common shares without par value. As at August 12, 2026 the following common shares, warrants, and stock options were outstanding:
|
|
| # of Shares |
|
| Exercise Price |
|
| Remaining Life (years) |
|
|||
| Share capital |
|
| 169,855,271 |
|
|
| - |
|
|
| - |
|
| Restricted Share Units (“RSUs”) |
|
| 1,825,166 |
|
|
| - |
|
| 0.64 – 2.59 |
|
|
| Stock options |
|
| 3,290,572 |
|
| C$0.78 - C$9.47 |
|
| 0.62 – 4.81 |
|
||
| Fully diluted |
|
| 174,971,009 |
|
|
|
|
|
|
|
|
|
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 29 |
The following are details of outstanding stock options as at June 30, 2026 and August 12, 2026:
| Expiry Date |
| Exercise Price Per Share (C$) |
|
| # of Shares Remaining Subject to Options (June 30, 2026) |
|
| # of Shares Remaining Subject to Options (August 12, 2026) |
|
|||
| March 25, 2027 |
| $ | 1.20 |
|
|
| 27,500 |
|
|
| - |
|
| March 29, 2028 |
| $ | 1.12 |
|
|
| 450,000 |
|
|
| 450,000 |
|
| March 25, 2029 |
| $ | 0.78 |
|
|
| 535,000 |
|
|
| 535,000 |
|
| April 9, 2030 |
| $ | 2.11 |
|
|
| 1,494,000 |
|
|
| 1,494,000 |
|
| May 27, 2030 |
| $ | 4.38 |
|
|
| 75,000 |
|
|
| 75,000 |
|
| March 16, 2031 |
| $ | 9.41 |
|
|
| 436,572 |
|
|
| 436,572 |
|
| June 4, 2031 |
| $ | 9.47 |
|
|
| 300,000 |
|
|
| 300,000 |
|
| Total |
|
|
|
|
|
| 3,318,072 |
|
|
| 3,290,572 |
|
The following are details of outstanding RSUs as at June 30, 2026 and August 12, 2026:
| Expiry Date |
| # of Shares Remaining Subject to RSUs (June 30, 2026) |
|
| # of Shares Remaining Subject to RSUs (August 12, 2026) |
|
||
| April 1, 2024 |
|
| 582,000 |
|
|
| 582,000 |
|
| April 9, 2025 |
|
| 984,000 |
|
|
| 984,000 |
|
| May 27, 2025 |
|
| 50,000 |
|
|
| 50,000 |
|
| March 16, 2026 |
|
| 209,166 |
|
|
| 209,166 |
|
| Total |
|
| 1,825,166 |
|
|
| 1,825,166 |
|
Recent Accounting Pronouncements
New and amended IFRS that are effective for the current year: Certain new accounting standards and interpretations have been published that are either applicable in the current year, or are not mandatory for the current period and have not been early adopted. During the six months ended June 30, 2026, the Company adopted amendments to IFRS 9 Financial Instruments and related amendments to IAS 7 Statement and of Cash Flows and IFRS 7 Financial Instruments: Disclosures, related to the settlement of financial assets and financial liabilities through electronic payment systems. The amendments clarify the timing of recognition and derecognition of financial assets and financial liabilities settled electronically and introduce and optional exception for certain electronic payment arrangements. We have assessed these standards and the adoption of these amendments did not have a material impact on the Company’s consolidated financial statements.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d- 15(f) of the Exchange Act, and by the Canadian Securities Administrators) that occurred during the six months ended June 30, 2026, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 30 |
Cautionary Note regarding Reserves and Resources
National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), issued by the Canadian Securities Administrators, lays out the standards of disclosure for mineral projects. This includes a requirement that a certified Qualified Person (“QP”) (as defined under the NI 43-101) supervises the preparation of the mineral reserves and mineral resources. Peter Latta, Vice President, Technical Services is a certified QP for the Company and has reviewed this MD&A for QP technical disclosures. All NI 43-101 technical reports can be found on the Company’s website at www.avino.com or under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Resources
This MD&A has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws applicable to U.S. companies. Information concerning our mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in respects from the requirements of the United States Securities and Exchange Commission (the “SEC”) applicable to domestic United States issuers. Accordingly, the disclosure in this MD&A regarding our mineral properties may not be comparable to the disclosure of United States issuers subject to the SEC’s mining disclosure requirements.
Additional Information
Additional information on the Company, including the Company’s consolidated audited financial statements for the six months ended June 30, 2026, is available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.avino.com.
Cautionary Statement
This MD&A is based on a review of the Company’s operations, financial position and plans for the future based on facts and circumstances as of August 12, 2026. Except for historical information or statements of fact relating to the Company, this document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward- looking statements in this document include, but are not limited to, those regarding the economic outlook for the mining industry, expectations regarding metals prices, expectations regarding production output, production costs, cash costs and other operating results, expectations regarding growth prospects and the outlook for the Company’s operations, and statements regarding the Company’s liquidity, capital resources, and capital expenditures. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company’s documents filed from time to time via SEDAR+ with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change, except as required by applicable securities regulations. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Material linked to the Company’s website within this MD&A is not deemed to be incorporated by reference nor form a part of this MD&A.
|
| AVINO SILVER & GOLD MINES | MANAGEMENT’S DISCUSSION & ANALYSIS | 31 |
EXHIBIT 99.3
Form 52-109F2
Certification of Interim Filings
Full Certificate
I, David Wolfin, Chief Executive Officer, of Avino Silver & Gold Mines Ltd., certify the following:
| 1. | Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Avino Silver & Gold Mines Ltd. (the “issuer”) for the interim period ended June 30, 2026. |
| 2. | No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings. |
| 3. | Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings. |
| 4. | Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer. |
| 5. | Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings |
|
| (a) | designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that |
|
| (i) | material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and |
|
|
|
|
|
| (ii) | information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and |
|
| (b) | designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP. |
| 5.1 | Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). |
|
|
|
| 5.2 | ICFR – material weakness relating to design – N/A |
|
|
|
| 5.3 | Limitation on scope of design - N/A |
|
|
|
| 6. | Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR. |
Date: August 12, 2026
“David Wolfin”
______________________________
David Wolfin
Chief Executive Officer
EXHIBIT 99.4
Form 52-109F2
Certification of Interim Filings
Full Certificate
I, Nathan Harte, Chief Financial Officer, of Avino Silver & Gold Mines Ltd., certify the following:
| 1. | Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Avino Silver & Gold Mines Ltd. (the “issuer”) for the interim period ended June 30, 2026 |
| 2. | No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings. |
| 3. | Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings. |
| 4. | Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer. |
| 5. | Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings |
|
| (a) | designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that |
|
| (i) | material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and |
|
|
|
|
|
| (ii) | information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and |
|
| (b) | designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP. |
| 5.1 | Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). |
|
|
|
| 5.2 | ICFR – material weakness relating to design – N/A |
|
|
|
| 5.3 | Limitation on scope of design - N/A |
|
|
|
| 6. | Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR. |
Date: August 12, 2026
“Nathan Harte”
____________________________
Nathan Harte
Chief Financial Officer
