Avino Meets Full Year 2025 Production Guidance; La Preciosa Contributes to Results

On January 22, 2026, Avino reported its full-year and Q4 2025 production results. The company met its full-year guidance, producing 2.6 million silver equivalent ounces (AgEq), falling comfortably within the 2.5 to 2.8 million ounce range. * Production: Q4 production was 671,583 AgEq oz. Full-year silver production increased 4% to 1.16 million ounces. * La Preciosa Contribution: The new La Preciosa mine contributed for the first time, processing 11,995 tonnes. Notably, the feed grade from La Preciosa was high (191 g/t Ag) compared to the Avino mine (62 g/t Ag), validating the high-grade thesis. However, recoveries at La Preciosa were lower (66% for Silver) compared to the main Avino mine (84%). * Cash Position: The company reported a cash balance of approximately US$100 million as of December 31, 2025. This is a massive increase from the $57 million reported at the end of Q3 (Nov 2025). * Operational Milestones: La Preciosa advanced from first blast to mill delivery in under eight months. The company notes Q4 marks a return to being a "primary silver producer" with silver representing over 50% of consolidated production.

This news is Material - Positive as it confirms the successful transition of Avino from a single-asset operator to a multi-mine producer. The operational execution is precise; they met guidance and successfully integrated La Preciosa ore into the mill ahead of schedule.

However, a critical look at the financials is required. The cash balance jumped from ~$57 million in November 2025 (Q3 results) to ~$100 million in January 2026. While operating cash flow is positive, it is highly probable that a significant portion of this $43 million increase came from exercising the "At-The-Market" (ATM) equity program renewed and increased in November 2025. While this strengthens the balance sheet significantly, investors should be aware this cash likely came from dilution, albeit at all-time high share prices.

From a technical mining standpoint, the La Preciosa grades (191 g/t Ag) are excellent, but the 66% silver recovery rate is a teething issue that needs to be optimized. If they can bring La Preciosa recoveries up to the ~80% range seen at the Avino mine, margins will expand further.

Avino Silver & Gold Mines Ltd. is a Canadian-based mining company with a long history of operations in Mexico. * Flagship Asset: The Avino Mine Complex in Durango, Mexico. It produces Silver, Gold, and Copper. * Growth Project: La Preciosa, also in Durango (within 20km of Avino), has recently commenced production. The strategy involves trucking high-grade ore from La Preciosa to the existing Avino mill, utilizing excess capacity and creating a regional hub. * Tagline: "A long-standing silver producer in Mexico transitioning to a multi-asset hub-and-spoke model."