Earnings call transcript: Avino Silver & Gold Mines Q2 2025 beats EPS forecast

Avino Silver & Gold Mines Ltd (ASM) reported its Q2 2025 earnings with a significant EPS beat, posting $0.06 against a forecast of $0.04, a 50% surprise. The company also exceeded revenue expectations, reporting $21.8 million compared to the forecasted $18.83 million. Despite these positive results, the stock saw a slight decline of 1.03% in premarket trading, closing at $3.85, possibly reflecting broader market trends.

Key Takeaways

• Avino posted a 50% EPS surprise, beating forecasts.
• Revenue grew by 47% year-over-year, reaching $21.8 million.
• The stock declined slightly by 1.03% in premarket trading.
• Strong production increases and cost reductions were reported.
• The company maintains a strong cash position with no debt.

Company Performance

Avino Silver & Gold Mines demonstrated robust performance in Q2 2025, with significant revenue growth of 47% compared to the same period last year. The company increased its production across silver, gold, and copper, achieving record mill throughput. This performance is set against a backdrop of positive trends in the precious metals sector, positioning Avino favorably among its peers.

Financial Highlights

• Revenue: $21.8 million, a 47% increase from Q2 2024.
• EPS: $0.06, a substantial beat over the forecast of $0.04.
• Gross profit: $10.2 million, with margins improving to 45% from 32% a year ago.
• Net income: $2.9 million, or $0.02 per share.
• Cash flow from operations: $8.5 million, with a free cash flow of $4.4 million.
• Cash position: $37.3 million, up by over $10 million from the previous quarter.

Earnings vs. Forecast

Avino’s Q2 2025 earnings surpassed expectations with a 50% EPS surprise, reporting $0.06 against a forecast of $0.04. Revenue also exceeded projections, coming in at $21.8 million compared to the expected $18.83 million. This strong performance highlights the company’s effective operational strategies and market positioning.

Market Reaction

Despite the positive earnings report, Avino’s stock experienced a slight decline of 1.03% in premarket trading, closing at $3.85. This movement might be influenced by broader market conditions affecting the precious metals sector, rather than company-specific issues. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a beta of 2.36 indicating higher volatility than the broader market. For deeper insights into ASM’s valuation and 13 additional ProTips, subscribers can access the comprehensive Pro Research Report.

Outlook & Guidance

Avino projects annual production of 2,500,000 to 2,800,000 silver equivalent ounces for 2025. The company is focusing on organic growth, with plans for significant throughput at La Preciosa and the first mineral reserve estimate by Q1 2026. Future guidance remains steady, reflecting confidence in ongoing operational efficiencies.

Executive Commentary

"We are confident that long-term shareholders will be well positioned to share in the success we are working hard to achieve," stated David Wolfin, CEO. CFO Nathan Hart emphasized, "Our cost structure remains intact, and we are poised to take advantage of the increased metal price environment." These comments underscore the company’s strategic focus and operational discipline.

Risks and Challenges

• Market volatility affecting precious metals prices.
• Potential operational disruptions or cost overruns.
• Macroeconomic pressures impacting demand and pricing.
• Regulatory changes in the mining sector.
• Competitive pressures from other mining companies.

Q&A

During the earnings call, analysts inquired about the progress at La Preciosa and potential expansion projects. The company confirmed intercepting the Abundancia vein and reiterated its focus on optimizing operational efficiency and disciplined capital allocation.

Full transcript - Avino Silver & Gold Mines Ltd (ASM) Q2 2025:

Conference Operator: Welcome to the Avino Silver and Gold Mines Second Quarter twenty twenty five Financial Results Conference Call and Webcast. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. I would now like to turn the conference over to Jennifer North, Head of Investor Relations.

Please go ahead.

Jennifer North, Head of Investor Relations, Avino Silver and Gold Mines: Thank you, operator. Good morning, everyone, and welcome to the Avino Silver and Gold Mines Limited Second Quarter Financial Results Conference Call and Webcast. To join this webcast and call, there is a link in our news release dated 07/22/2025, and in our news release of yesterday’s date, which can be found on the website under News 2025. In addition, a link can be found on the homepage of the Avino website. On the call today, we have the company’s President and CEO, David Wolfin our Chief Financial Officer, Nathan Hart our Chief Operating Officer, Carlos Rodriguez and our VP, Technical Services, Peter Lada.

Before we get started, please note that certain statements made today on this call by the management team may include forward looking information within the meaning of applicable securities laws. Forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different than those expressed by or implied by such forward looking statements. The company does not intend to and does not assume any obligation to update such forward looking statements or information other than as required by applicable law. For more information, we refer you to our detailed cautionary note in the presentation related to this call or on our press release of yesterday’s date. The full financial statements and MD and A are now available on our website under the Investors tab and then click on Financial Statements.

In addition, the full statements are available on Avino’s profile on SEDAR plus and EDGAR. I would like to remind everyone that this conference call is being recorded and will be available for replay later today. Replay information and the presentation slides from this call and webcast will be available on our website. Also, note that all figures stated are in U. S.

Dollars unless otherwise noted. Thank you. I will now hand over the call to Avino’s President and CEO, David Wolfin. David?

David Wolfin, President and CEO, Avino Silver and Gold Mines: Thanks, Jen. Good morning, everyone, and welcome to Avino’s second quarter twenty twenty five financial results conference call and webcast. We will cover the highlights of our financial and operating performance, and then we’ll go over the work that we are currently doing, followed by a Q and A. I will start with a discussion on operations, and then I will turn it over to Nathan Hart, Avino’s CFO, to discuss the financial performance for the period. And then Jennifer North, our Head of Investor Relations, will present an overview of Q2 CSR ESG initiatives.

Please turn to Slide five for our Q2 twenty twenty five highlights. Avino delivered another quarter of strong financial performance, posting robust revenues, higher operating margins, improved cost metrics and increased working capital, demonstrating strength across several key financial metrics. Nathan will provide a detailed overview of the financials later in the call. The second quarter results build on financial success we saw in the first quarter. With confidence in our strategic direction, we are focused on sustaining our momentum and reaching our new milestones.

Our balance sheet remains strong with just over $37,000,000 in cash at the June and working capital of over $40,000,000 at the end of the quarter. Our operations team continues to drive meaningful cost improvements while development of La Preciosa is progressing according to plan. Backed by strong operational performance, Aveeno remains firmly on track to deliver long term growth for all stakeholders and shareholders. Moving on to Slide six, we turn through our Q2 twenty twenty five production results that were released in mid July showing that we’ve maintained strong production momentum through the first half of the year. Compared to Q2 twenty twenty four, results were as follows: silver equivalent production increased by 5% to almost 646,000 silver equivalent ounces in Q2.

The increase was driven by significantly improved mill availability. Avino achieved record mill throughput of 190,987 tons of material processed, a 36% increase from Q2 of last year. Gold production increased by 17% as a result of the increased tons processed, as well as improvements in gold recoveries to 74% from 70 in Q2 twenty twenty four. Copper production increased by 12%, reaching 1,500,000 pounds of copper in Q2. Silver production for the quarter was just under 284,000 ounces, representing a slight decrease of 3% compared to Q2 twenty twenty four.

During the quarter, feed grade for the three metals were lower than the previous quarter as our mine sequencing put us in a lower grade area. Please turn to Slide seven, which highlights the Q2 updates. The highlights of the quarter was achieving the highest mill throughput in Avino’s history, a milestone made possible by previous plant upgrades, automation enhancements and the exceptional work of our operations team. Additionally, efficiency improvements implemented in earlier periods are now yielding measurable and positive results. Moving on to La Preciosa.

Blasting and construction of the relatively short three sixty meter San Fernando main access decline is underway with expedited equipment mobilization, which has allowed the development to advance on plan. The new jumbo drill is working on the ramp as it progresses towards intercepting the Gloria and Abundancia veins. Site services have been installed and an existing building has been renovated for site personnel. We are now halfway through the year and we are making steady progress towards the milestone of including La Precio Preziosa material into our production profile. With strong performance at the Avino mine year to date and the continued advancement at La Preziosa, we remain on track with our transformational growth strategy.

Avino’s 2025 annual production guidance is 2,500,000 to 2,800,000 ounces of silver equivalent. Please turn to Slide eight, where we will have photos of recent development activity, including a picture of the first blast. We are pleased with the progress we are making at La Preciosa and with operations at Avino. At this time, I will now hand it over to Nathan Hart, Avino’s CFO, to present our record financial performance for Q2 twenty twenty five. Nathan?

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Thank you, David. It is my pleasure to be presenting another quarter of strong financial and operating results to everyone who has joined us and is doing our presentation Here on Slide nine, we have an overview of our financial highlights and improved balance sheet with the full table to come on the next slide. Our second quarter results continue to demonstrate profitability and our ability to grow. We generated $21,800,000 in revenues, up 47% from 2024 and was our second highest in company history, beating last quarter’s revenue figures by over $3,000,000 Gross profit was 10,200,000 our third consecutive quarter with over $10,000,000 in mine operating income. Gross profit margins were 45% inclusive of non cash depreciation and depletion, which has significantly improved from the 32% margin in Q2 of last year.

On a cash basis, our gross profit margin was 52%. Avino earned $2,900,000 in net income in the second quarter, which translated to earnings per share of $02 This was up significantly compared to Q2 of last year where we earned $1,200,000 or $01 per share. Adjusted earnings was $8,800,000 or $06 per share compared to $4,300,000 or $03 per share in Q2 of last year, an over 100% improvement. Cash flow from operating activities and free cash flow improved from last quarter as well as from Q2 of last year. We generated $8,500,000 from operating activities or $06 per share and free cash flow after all capital expenditures came in at $4,400,000 Included in these capital expenditures were the development costs at La Presiosa in Q2, and on a standalone basis, cash flow from the Avino operation was $6,500,000 Our cash cost per silver equivalent ounce was $15.11 down 7% from Q2 of last year.

And on an all in sustaining cash cost basis, we came in just under $21 per silver equivalent sold, which was 8% lower than Q2 of last year. As mentioned last quarter, this puts us in the lower quartile of our junior producing peers and in the mid range with intermediate producers in Mexico. Now moving on to the balance sheet. Our cash position was $37,300,000 at the end of the quarter, up over $10,000,000 from last quarter and year end. Working capital also increased by over $9,000,000 from the first quarter as a result of the increased cash.

Subsequent to quarter end and as of today, our current cash position is approximately 48,000,000 As discussed on our call, we have also began deploying capital at La Presiosa as we move forward with development. With no debt, excluding operating equipment, we continue to be well positioned to execute on our five year organic growth plan and continue with reviews for acceleration and increases to the existing plan based on our improved capitalization and balance sheet. Coming to Slide 10, you see all other financial metrics and the significant increases compared to Q2 and year to date figures in 2024. Capital expenditures in Q2 were $4,100,000 with over half of that being spent at La Presiosa on mine development and site activities. Highlighting again the per share metrics, where we saw $06 earned on a cash flow basis and on adjusting earning basis.

And free cash flow generated in the quarter was $4,400,000

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Here on Slide 11, you can

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: see our cash cost per ounce figures were improved from Q2 of last year at $15.11 as mentioned. This represents an improvement of 7% from 2024. And on a year to date basis, cash costs were $13.97 a 10% improvement from the 2024. On an all in sustaining cash cost basis, our second quarter costs were $20.93 per silver equivalent ounce, down 8% from Q2 of last year. On a year to date basis, costs averaged $20.54 per ounce, which was 4% lower than the 2024.

As we manage our first stage of growth, we are pleased that our cost structure remains intact even with the increased administrative activity arising from bringing a second mine online. We look forward to further economies of scale as La Presiosa begins producing and contributing to our overall production profile. Coming to Slide 12, you can see our cost per tonne processed for the quarter and year to date continue to remain fairly consistent. Cost per tonne processed on a cash basis was $52.61 down 24% compared to Q2 of last year. The reduction is primarily from significantly more tonnes processed and better mill availability in Q2 of this year, as our operational team has been working diligently to maintain as little downtime as possible.

In the first half of the year, we came in 7% lower than the 2024 on a per tonne basis. On the all in cost side for the quarter, a very similar story with a 23% reduction on a per tonne processed basis for the quarter and an 8% reduction overall on the first half of the year. Our cost per tonne remains extremely competitive for an underground operation. As shown by our profit margins, our cost structure remains intact, and we are poised to take advantage of the increased metal price environment as we transition to being a multi asset producer. Tariff discussions continue to put uncertainty in the currencies in which we operate in, and reducing our risk associated with these costs will be key throughout the rest of the year.

While there have been no direct significant impacts to our operations from tariffs, we are subject to movements between the USD and Mexican peso. Our current hedging program for the Mexican peso offset any foreign exchange losses incurred with the weakening U. S. Dollar in Q2, and we currently have a $1,500,000 derivative asset on our balance sheet, which represents the mark to market balance at the end of the quarter with most, if not all of our hedges being in the money. At this point, I will now turn it over to Jennifer North, Head of Investor Relations, for an overview of our recent ESG and CSR initiatives.

Jennifer North, Head of Investor Relations, Avino Silver and Gold Mines: Thank you, Nathan. Please follow along to Slide 13 for an update of our initiatives. Avino follows the ESG standards and aligns with the United Nations Sustainable Development Goals or the SDGs. There are 17 SDGs which were developed as a call to action by all countries developed and developing in a global partnership. During the second quarter, the CSR teams led the following strategic projects in the communities: delivery of low cost water tanks and cisterns, a trench was prepared to channel rainwater from the mine, A five hectare community reforestation has been approved and ongoing with 1,100 plants per hectare planned.

A total of 67 families in the community received solar boilers at reduced cost made possible through company led facilitation of a subsidy program. And a donation was made to the Mining and History Museum in the city of Turango for an exhibition space dedicated to Aveeno. There are several ongoing CSR initiatives, and we regularly post photos to our corporate social responsibility tab on our website. We also wanted to highlight that we now have published Aveeno’s inaugural sustainability report on our website. This marks a major milestone in our journey toward greater accountability and responsible growth, and it reflects our commitment to transparency, continuous improvement and long term value creation for all stakeholders.

I will now turn it back over to David to continue with the presentation providing our activities for the coming quarter. David?

David Wolfin, President and CEO, Avino Silver and Gold Mines: Thanks, Jan. Moving to Slide 14, summarizing our upcoming activities. With regards to our exploration resource and reserve update, which we mentioned in our Q2 production news release in July, the twenty twenty five delineation drilling commenced at the Avino mine in April with a program consisting of nine planned holes from surface. The objective is to test the down dip extension of the Avino vein below the current lowest mining level following the trend of previous drilling reported on 09/14/2023. The Avino deposit remains open at depth and earlier results have shown comparable grades and widths to those currently being mined.

Over at La Preciosa, a second surface drill was deployed to confirm prior drill results from previous operators and to improve the understanding of the grade zonation close to the scheduled mining areas near the ramp. To date, three drill holes have been completed with drilling ongoing. Drilling information will be utilized in underground mine planning, three d modeling, as well as an update to the resource estimate due in Q1 twenty twenty six. In addition, Avino is planning on releasing its first mineral reserve estimate at the same time as the company has now met the requirements for producing issuer under the National Instrument 40 three-one 101 standards of disclosure for mineral projects. At Avino, we are currently mining and hauling from level 12.5 at Elena Tolosa Mine and just as mentioned exploration drilling is ongoing on the Avino vein below the ET Mine.

Together our strong Q2 financial operation results continue to position Avino favorably as we advance towards our transformational growth objectives, particularly with the development of La Preciosa. We encourage you to visit the Avino website to view all the recent photo highlighting the work at La Preciosa and the Avino mine. As outlined on Slide 15, we want to emphasize again the company’s growth strategy. Within a 20 kilometer footprint, we have three key assets, including our operating mill complex, which currently produces material from our Avino mine. We have additional access to water, power and tailing storage, all of which support our ability to expand production efficiently.

Collectively, our assets host $277,000,000 silver equivalent ounces in the measured and indicated mineral resources category and an additional 94,000,000 silver equivalent ounces in the inferred mineral resources category providing a strong foundation for future production growth. As you can see on this slide, our goal is to scale up by 2029 through production from these three key assets. Leveraging our existing assets and resources, we are well positioned to execute our growth plans efficiently and effectively. We concluded the quarter with more record breaking financial metrics, which reflects the strength of our strategy and dedication of our team, both which drive our success as we pursue the next phase of growth. On behalf of our leadership, thank you to our entire team for your efforts and contributions.

We appreciate the continued confidence of

Peter Lada, VP Technical Services, Avino Silver and Gold Mines: our

David Wolfin, President and CEO, Avino Silver and Gold Mines: shareholders with a clear vision and a disciplined approach to growth. We are confident that long term shareholders will be well positioned to share in the success we are working hard to achieve. We’d now like to move the call to the question and answer portion. Operator?

Conference Operator: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset be before pressing any keys.

To withdraw your question, please press star then 2. We will pause for a moment as callers join the queue. Your first question for today is from Jake Sykowski with Alliance Global Partners.

Jake Sykowski, Analyst, Alliance Global Partners: Hey, David, Nathan and team. Thanks for taking my questions.

David Wolfin, President and CEO, Avino Silver and Gold Mines: Hi, Hi, Jake.

Jake Sykowski, Analyst, Alliance Global Partners: So just starting with the access decline at La Presios, it sounds like you’re making good progress there. Can you just remind us what this timeline looks like for for intercepting these veins?

David Wolfin, President and CEO, Avino Silver and Gold Mines: Well, David here. We’ve intercepted Abundancia this week. And so Gloria is a few more weeks away, but, it’s happening right now.

Jake Sykowski, Analyst, Alliance Global Partners: Perfect. That’s helpful. And then just building on that, the broader ramp of of throughput at La Preciosa, how should we be thinking about this heading into 2026? And do you have a targeted mill throughput percentage in mind? Or are you still kind of working through that as we head into the second half of the year here?

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Hey Jake, Nathan here and Peter maybe can expand afterwards but for this year we’re just you know it’s going be development ore for a little bit so we’re not providing any specific throughput per day targets. Obviously next year the goal is to get up to filling the two smaller circuits which as you know it’s four independent circuits, two smaller circuits are about 200 to two fifty tons per day. The goal is to get up to 400 to 500 tons per day throughout the latter part of next year.

Jake Sykowski, Analyst, Alliance Global Partners: Got it. Okay. And then just lastly, I’m just curious, how are you guys thinking about M and A with where precious metals prices have been? I guess I’m wondering if you feel your plate’s full with La Preciosa or if you’re seeing anything attractive on the external growth side of things?

David Wolfin, President and CEO, Avino Silver and Gold Mines: We’re remaining disciplined and we’re focused on organic growth with our three key assets. We have been shown projects but at the moment we’re just remaining focused on organic growth and capital discipline.

Jake Sykowski, Analyst, Alliance Global Partners: Fair enough. Okay, that’s all for me. I’ll hop back in queue.

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Thank you.

Conference Operator: Your next question is from Heiko Ihla with H. C. Wainwright.

Case, Analyst, H.C. Wainwright: Hi. This is Case. I’m filling in for Heiko. He’s not able to make the call, but, two questions. In the release, you mentioned the improvements in the mail availability during the second quarter a few times.

Guess this leads to an obvious question of what have you guys seen in the third quarter so far? And would you suggest maybe trend line in q two for the remainder of the year?

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Hey, Heiko. Nathan here. Peter, do you wanna take that one?

Peter Lada, VP Technical Services, Avino Silver and Gold Mines: Yeah. I can certainly take that one. Regarding third quarter, I mean, we are, just according to the mine plan, in a bit of a lower area. We are higher up in the mine, and there is some oxidization, that does happen. So that does impact recoveries a little bit, but things are are are scheduled to turn, with higher grades later in the quarter.

So that’s that’s say it at this

Case, Analyst, H.C. Wainwright: Okay. Great. Thank you. A quick follow-up. In the news release where you discussed La Preciosa, there’s a sentence there to quote site services have been installed and an existing building has been renovated for site personnel.

What exactly do you guys mean by site services have been installed?

David Wolfin, President and CEO, Avino Silver and Gold Mines: Things like oh, sorry.

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Go ahead.

Case, Analyst, H.C. Wainwright: Go

David Wolfin, President and CEO, Avino Silver and Gold Mines: ahead. No. No. Go ahead.

Peter Lada, VP Technical Services, Avino Silver and Gold Mines: No. Things like, compressed air, things like ventilation,

Jake Sykowski, Analyst, Alliance Global Partners: you know,

Peter Lada, VP Technical Services, Avino Silver and Gold Mines: things like just a changing room for the guys. You know, we have a number of employees and contractors now at site. The site’s getting busier, power, things like that.

Case, Analyst, H.C. Wainwright: Okay. Perfect. Thank you very much. I’ll hop back in the queue.

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Thank you.

Conference Operator: Your next question for today is from Joseph Reagor with Roth Capital.

Jake Sykowski, Analyst, Alliance Global Partners: David and team. Congrats on a good quarter.

David Wolfin, President and CEO, Avino Silver and Gold Mines: Thanks, Joe. Thanks, Joe. So

Jake Sykowski, Analyst, Alliance Global Partners: as you guys think about the balance sheet, is there a targeted cash balance you guys are trying to get to provide support for some future expansions? Or is there a certain cash balance that just would make you guys feel more comfortable as you go into the presciosa development? And then on the back of that, can you remind us what you have left on your ATM?

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Yeah, Joe, it’s a fair question. Nathan here. So first part of

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: the question, I wouldn’t say an exact cash balance to be fair.

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: We’re looking at all of

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: our capital expansion plans and as we mentioned in call, reevaluating them as well and looking at expansion at the Avino Mill. But then we also have the oxide tailings project to consider too and as well as potential expansion plans for La Presiosa. So between all three, it’s hard to say about a minimum cash balance, but we’re really just evaluating capital needs over the next couple of years and seeing if we will need more. But right now, we’re just kind of remaining disciplined. With regards to the second point of the question, on the ATM, it’s as we hit fifty two week highs, we did use it a little bit to top up the cash position.

Again, looking to that future growth. I think as of right now, there’s still over two thirds of room left on the ATM and that was $40,000,000 but no plans to use all that at

Jake Sykowski, Analyst, Alliance Global Partners: this time. Okay. And then a different question. You know, as you guys look at the different factors that impact your revenue, you know, inventory shifts, treatment charges, payability, etcetera, is there any, should we be reading anything into how these items have changed over the last couple of quarters? Or is it just normal quarter fluctuations?

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Yeah. It’s a fair question. I’m guessing you might be alluding to lower TCs and RCs and penalties kind of compared to our revenue number. Is that kind

Case, Analyst, H.C. Wainwright: of where you’re going with that, Joe?

Jake Sykowski, Analyst, Alliance Global Partners: Yes. So those were both lower and then you guys sold more silver equivalent ounces than you produced. So I’m guessing there was some inventory drawdown, but just trying to figure out what we should anticipate across the board going forward.

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Yeah. That’s fair. So I would say we are obviously getting better terms on their improved terms. I think that, you know, we’ve done some work with Samsung in in improving some of our terms on what we’re selling them, and they’ve been a great partner in helping both sides reach a good agreement on that side. I know we mentioned on the last call as well too from Q1 and even our year end one.

We did we make a point of clearing out inventory, cost inventory a little bit at the end of the year. So we do build back up in Q1 and that’s why you see generally higher production versus ounces sold in the first quarter. And sometimes consequently in the fourth quarter, you see that opposite. But Q2 and Q3 are generally fairly flat. So I don’t know if that can be helpful for you moving forward.

Jake Sykowski, Analyst, Alliance Global Partners: Sure. That’s helpful. I think with that I’ll turn it over. Thanks.

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Thanks Joe. Thank you.

Conference Operator: Your next question for today is from Chris Temple with The National Investor.

Chris Temple, Analyst, The National Investor: Hey, all. Good show again. David, I got a question, actually clarification. You repeated some of the resource figures that you have right now, totally, I think $277,000,000 silver equivalent M and I and 90 some million in inferred. But you also said something about getting set up to be NI 40 three-one 101 issuer by next year so I’m a little confused as to what the basis is or what the formula is for the present resources.

David Wolfin, President and CEO, Avino Silver and Gold Mines: That’s just so we qualify to be able to publish reserves. So the rule is under National Instrument 40 three-one 101 if you don’t have a feasibility study you have to have 90,000,000 is it Nate?

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: Yeah, there’s a rule about annual and three year rolling revenue before qualifying for that under the Canadian standards. So we met that standard through by the 2024. So moving forward, we can issue mineral reserves. And, yeah, we can speak more to that offline in more detail, I think, Chris.

Case, Analyst, H.C. Wainwright: Okay.

Nathan Hart, Chief Financial Officer, Avino Silver and Gold Mines: But that’s the basis of it.

David Wolfin, President and CEO, Avino Silver and Gold Mines: But leading up to that, we’re doing all this drilling. So we’re really excited about what we’re gonna publish next year. Yep.

Chris Temple, Analyst, The National Investor: Okay. So it’s not so much that your formula and how you come about with the reserves has changed that much. It’s just for their reporting requirements since you’re a producer.

David Wolfin, President and CEO, Avino Silver and Gold Mines: That’s the only thing.

Jake Sykowski, Analyst, Alliance Global Partners: Alright. Alright.

Peter Lada, VP Technical Services, Avino Silver and Gold Mines: And, Chris, just to jump in, there’s a difference between resources and reserves. So Right. The resource is not gonna change there, but the reserve thing is new for us.

Chris Temple, Analyst, The National Investor: Okay. Gotcha. That helps too. Alright. Thanks, guys.

David Wolfin, President and CEO, Avino Silver and Gold Mines: Thank you.

Conference Operator: Once again, if you would like to ask a question, please press star one. We have reached the end of the question and answer session, and I will now turn the call over to David Wilson, President and CEO, for closing remarks.

David Wolfin, President and CEO, Avino Silver and Gold Mines: With another strong quarter behind us, which included excellent operational performance, a very healthy cash position and an additional quarter of record working capital of over $40,000,000 Avino is well positioned to capitalize on positive market trends in the precious metals sector. We are focused on a track to deliver sustainable growth and long term value for stakeholders and shareholders. Thank you for joining the Avino Q2 call today. Have a nice day.

Conference Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

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