• Revenue: Record $24.4 million in Q4 2024; $66.2 million for the full year, a 51% increase from 2023.
• Gross Profit Margin: 43% in Q4 2024; 49% on a cash basis.
• Free Cash Flow: $14.1 million in Q4 2024, translating to $0.10 per share.
• Net Income: $8.1 million for the full year 2024, or $0.06 per share.
• Adjusted Earnings: $21.3 million for the full year 2024, or $0.15 per share.
• All-In Sustaining Cash Cost: $18.62 per silver equivalent ounce in Q4 2024; $20.57 for the full year, a 6% decrease from 2023.
• Silver Equivalent Production: 736,000 ounces in Q4 2024, a 32% increase from Q4 2023; 2.6 million ounces for the full year, a 10% increase from 2023.
• Gold Production: 2,560 ounces in Q4 2024, a 76% increase from Q4 2023.
• Cash Position: $27.3 million at the end of 2024, up from under $8 million at the end of Q3 2024.
• Capital Expenditures: $1.5 million in Q4 2024; $6.6 million for the full year.
• Cash Cost per Ounce: $13.88 in Q4 2024, an 8% decrease from Q4 2023.
• Cost per Ton Processed: $51.11 in Q4 2024, a 17% reduction from Q4 2023.

• Warning! GuruFocus has detected 5 Warning Sign with ASM.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Avino Silver & Gold Mines Ltd (ASM) achieved record financial results in 2024, with significant growth across key financial metrics.
• The company posted record revenues of $66.2 million for the year, a 51% increase from 2023.
• Silver equivalent production increased by 10% year-over-year, driven by improved copper and silver grades and higher mill feed.
• The company reported a strong balance sheet with a cash position of $27.3 million, a 916% increase from 2023.
• Avino received necessary permits for the underground development of La Preciosa, a significant step in their growth plan.

Negative Points

• The company is nearing the maximum throughput of its mill, indicating potential bottlenecks in production capacity.
• Capital expenditures were below the 2024 guidance range due to deferral of certain expenditures to 2025.
• There is uncertainty regarding the cost structure due to potential fluctuations in the Mexican peso against the US dollar.
• The ramp-up of La Preciosa's production may not contribute significantly until late 2024 or early 2025.
• The company faces potential risks associated with tariff discussions and currency fluctuations impacting operational costs.

Q & A Highlights

Q: Can you provide a breakdown of expected CapEx spending for La Preciosa this year? A: Nathan Harte, CFO, explained that the majority of development expenditures are expected in Q2 and Q3, with a tapering off in Q4. The total guidance for CapEx is $5 to $6 million, with lighter spending in Q1 and heavier in Q2 and Q3.

Q: Are there any bottlenecks at the plant, and can the plant be expanded without additional permits? A: Peter Latta, VP Technical Services, noted that the plant is nearing its maximum throughput. While no additional permits are needed for expansion, a few pieces of equipment would be required to add an additional circuit, which is a straightforward process.

Q: Should we expect the current cost levels to continue into 2025? A: Nathan Harte, CFO, stated that they expect costs per ton to remain stable, with a goal to maintain or slightly reduce the all-in cost numbers from 2024, which were around $20.57 per ounce.

Q: When will the benefits of La Preciosa's ramp-up be realized? A: The company expects to see benefits in Q4 2025, with potential stockpiling to ensure full capacity operations. However, processing might start later in the year or in Q1 2026.

Q: Will there be a resource update for La Preciosa, and how will it be reported? A: Peter Latta confirmed a resource update is planned for next year. La Preciosa will be treated as a separate operation with its own financial metrics, similar to past practices with other deposits.

Q: What is the expected annual tonnage for La Preciosa once fully ramped up? A: The target is 4 to 500 tons per day in 2026, with long-term goals of around 1,500 tons per day, depending on further developments.

Q: What are the social conditions around the mines, given the US border situation? A: David Wolfin, CEO, stated that the area is safe, with no human trafficking issues. The company employs 450 people directly and impacts the local community positively through various initiatives.

Q: Can you elaborate on the peso hedging strategy? A: Nathan Harte explained that the company has contracts in place to limit downside exposure while allowing for upside, though they are not hedged near 50% of their OpEx.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.