• Revenue: $14.8 million in Q2 2024, a record for the company.
• Gross Profit: $4.7 million, with a cash basis gross profit of $5.9 million and a margin of almost 40%.
• Net Income: $1.2 million or $0.01 per share.
• Adjusted Earnings: $4.3 million or $0.03 per share.
• Operating Cash Flow: $3.6 million or $0.03 per share before working capital movements.
• Cash on Hand: $5.3 million at the end of the quarter.
• Working Capital: Improved to $13.6 million, three times higher than the previous year.
• EBITDA: $5.1 million for the first half of 2024.
• Cash Flow from Operations: $5.2 million before working capital movements for the first half of 2024.
• Cash Cost per Ounce: $16.29 for Q2 2024.
• All-in Sustaining Cash Cost per Ounce: $22.74 for Q2 2024.
• Cash Cost per Tonne Processed: $66.79 per ton for Q2 2024.
• All-in Sustaining Cash Cost per Tonne Processed: $92.31 for Q2 2024.

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

Release Date: August 14, 2024

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

Positive Points

• Avino Silver & Gold Mines Ltd (ASM) reported a 26% increase in silver production compared to Q2 2023, with silver equivalent production reaching 617,000 ounces.
• The company achieved record quarterly revenue of $14.8 million and a gross profit of $4.7 million, with a cash operating margin of almost 40%.
• ASM's working capital position improved significantly, with a balance of $13.6 million at the end of the quarter, three times higher than the previous year.
• The processing of La Preciosa surface stockpile material exceeded expectations, contributing to the increased silver production.
• ASM's five-year growth plan aims to increase production levels significantly, targeting 8 million to 10 million ounces of silver equivalent by 2029.

Negative Points

• The last two weeks of production in the quarter were impacted by repairs on a cone crusher, leading to reduced mill throughput.
• Cost per ounce figures increased slightly from Q1, with cash costs per ounce at $16.29 and all-in sustaining costs at $22.74, indicating room for improvement.
• The Mexican peso's strength in early 2024 impacted the company's cost structure, although recent weakening may provide some relief.
• Lower ounces sold in Q2 compared to Q1 affected cash cost and all-in cash cost figures.
• The company is awaiting permits for La Preciosa, which are necessary to commence underground mining and could impact future production timelines.

Q & A Highlights

Q: You mentioned processing 10,000 tonnes of stockpiled material at La Preciosa. Will this continue in the second half, and how much stockpile remains? A: Yes, processing will continue in the second half, with about 5,000 tonnes left. - Peter Latta, VP of Technical Services

Q: Can you provide details on the ramp-up at La Preciosa underground next year? A: We are focused on obtaining permits and starting construction. We have several ramp-up scenarios aligned with our circuit capacities, but specifics depend on timing. - Peter Latta, VP of Technical Services

Q: Should we expect any costs from the cone crusher repair to roll into Q3? A: There will be some CapEx for replacement parts and labor, but nothing significant. We are under budget in other areas, so costs will be reallocated. - Nathan Harte, CFO

Q: What impact does the Mexican peso have on your overall costs? A: A significant impact, as 80% of our costs are in pesos. The peso's recent weakening should positively affect costs if it remains at current levels. - Nathan Harte, CFO

Q: What CapEx is expected to get La Preciosa fully online? A: We expect $3 to $5 million for initial development at Gloria and Abundancia veins. Most infrastructure is already in place, minimizing additional costs. - Nathan Harte, CFO

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