Silver-Gold Producer Reports 568,112oz Production While Targeting Higher Q2 Output

1. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avino Silver & Gold Mines Ltd.
2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Avino Silver & Gold Mines Ltd. (ASM:TSX.V; ASM:NYSE.MKT; GV6:FSE) announced its production results for the first quarter of 2026, according to an April 23 release.

The company reported producing 263,057 ounces of silver, 1,851 ounces of gold, and 1,343,654 pounds of copper, culminating in a total of 568,112 silver equivalent ounces, the the release said.

"We have started 2026 with positive momentum, reflected in quarterly production of 568,112 million ounces, providing a strong foundation to deliver on our annual production target," President and Chief Executive Officer David Wolfin said.

Wolfin highlighted the solid performance of the mill during the quarter, with milled tonnage surpassing expectations. He also noted that the elevated silver prices are expected to significantly boost the company's revenues, reflecting both robust metal prices and strong operational performance. The company has been actively managing throughput across all four circuits, with contributions from the La Preciosa development ore surpassing plans and showing promising grade improvements, particularly towards the end of the quarter.

Wolfin emphasized ongoing efforts to optimize performance across operations as part of Avino's transformational growth plans. He also mentioned that production is anticipated to be higher in the second half of 2026 as La Preciosa progresses, with the company remaining on track to meet its forecasted production for the year.

Key production highlights from the first quarter of 2026 include steady progress at La Preciosa, with ongoing extraction, haulage, and processing of mineralized development material, the company said. Although slightly below plan early in the quarter due to mill availability and the intentional processing of lower-grade development ore, this strategy allowed the company to capitalize on strong silver prices while utilizing previously stockpiled higher-grade material.

Silver and gold production for the quarter slightly decreased compared to the first quarter of 2025, reflecting planned mining sequencing into lower-grade areas, Avino said. However, development production from La Preciosa contributed 49,830 silver ounces, slightly higher than in the fourth quarter of 2025.

Furthermore, Avino noted it achieved an 11% increase in mill throughput year-over-year in the first quarter of 2026. This improvement is attributed to targeted upgrades and automation initiatives led by the operations and maintenance teams, which have enhanced mill availability and supported higher, more consistent throughput levels.

MRE Update

The company announced its most recent mineral reserve estimate and updated mineral resource estimate earlier in April, marking a significant milestone with the inaugural proven and probable mineral reserves at two of its three assets. These reserves total 27 million tonnes, containing 95 million ounces (Moz) of silver at a grade of 109 grams per tonne (g/t), 356,000 ounces of gold at a grade of 0.41 g/t, and 85 million pounds of copper at a grade of 0.31%. This equates to 127 million silver equivalent ounces at a grade of 145 g/t.

The mineral resources and reserves estimate will be included in an updated technical report prepared by Tetra Tech Canada Inc. in accordance with NI-43-101 standards, the company said. This report will be available on SEDAR+ under the company's profile and will also be filed with the SEC on Form 6-K within 45 days.

In terms of operational updates, during the first quarter of 2026, development mining continued on the north faces of the La Gloria and Abundancia veins at La Preciosa, with ore being transported to the mill for processing, the release said. Post-Q1, mining and haulage rates were increased to facilitate a switch from Avino ore to La Preciosa development ore in Mill Circuit 2, in anticipation of planned increases in processing throughput at La Preciosa. Mine engineering during the quarter focused on the publication of the reserves and resources and has now shifted towards mine planning scenario analysis to optimize the two deposits.

The exploration program at Avino involved two drills during the quarter; one focused on infill drilling in the upper eastern area of the system, and the other on extension drilling in the footwall breccia area. At La Preciosa, two drills were also active, with one concentrating on infill drilling and poised to transition to extension drilling, and the other on exploratory drilling to evaluate previously underexplored areas. Updates from these drilling activities at both properties will be released once results are compiled.

Lastly, the company's financial results for the first quarter of 2026 are scheduled to be released after the market closes on May 13, and a conference call to discuss these operational and financial results will be held on May 14.

La Preciosa to Contribute to Higher Production Rates, Analyst Says

According to a research note issued April 24 by Alliance Global Partners Analyst Jake Sekelsky, Avino's first quarter 2026 production results aligned with expectations as the company progresses with development work at La Preciosa. The project is anticipated to significantly contribute to higher production rates later in the year. Additionally, Avino recently announced its first-ever mineral reserve estimate, marking a significant milestone in the company's history. This development is seen as an affirmation of Avino's status as a rapidly growing silver producer with a substantial underlying mineral inventory.

Following the end of the quarter, development rates at La Preciosa have increased, setting the stage for Mill Circuit 2 to transition from processing ore from the Avino Mine to using La Preciosa development material in upcoming quarters, Sekelsky noted.

La Preciosa is viewed as the central element of Avino's near-term growth strategy due to its exceptional combination of grade and scale. The company's five-year growth strategy targets production of approximately 4 million AgEq ounces in 2027, nearly 7 million AgEq ounces in 2028, and over 8 million ounces in 2029.

"We are reiterating our Buy rating and US$12.75 price target," the analyst wrote. "Our valuation remains based on a NAV analysis utilizing an 8% discount rate and 1.2x NAV multiple at the Avino Mine and La Preciosa. In short, we believe Avino is in the unique position of being a growing silver producer with extensive exploration potential amid a strong silver price backdrop."

Cantor Fitzgerald Analyst Matthew O'Keefe, writing an update on April 23, noted that La Preciosa contributed approximately 57,000 ounces AgEq to the total production. The development and processing activities at La Preciosa are progressing well, with improvements in haulage and mill feed observed post-quarter. These enhancements are expected to support higher throughput and a production profile weighted towards the second half of 2026.

In terms of the company's broader production outlook, Avino remains on track to meet its long-term growth targets, said the analyst, who rated the stock a Buy with a US11.50 per share target price, a 57% return at the time of writing.

Given these first-quarter results, there have been no significant changes to the 2026 estimates, O'Keefe said. The price target for Avino remains based on equally blended target multiples of 1.5x NAVPS at discount rates of 5%, 10.0%, and 15x the estimated 2027 cash flow per share.

'Lionel Messi of the Silver World'

According to What is Chen Buying? What is Chen Selling? author Chen Lin on April 13, "ASM released excellent Q1 production, 568K oz of silver. It is a solid start of 2026."

Contributing Analyst Daniel Flynn noted for The Gold Advisor on April 16 that "Avino is emerging as the Lionel Messi of the silver world with all the company records it has been breaking recently."

He continued, "That hot streak continued today, with the company reporting another key technical de-risking milestone: the publication of an inaugural consolidated mineral reserve estimate for its asset base in Durango, Mexico. There’s a lot of numbers. They’re all good. And the message is simple: Avino is rapidly building a much bigger business."

Flynn noted that the stock was significantly below its year-to-date high (and still was on April 24 at CA$9.42). "With the company steadily emerging as a larger, longer-life, multi-asset silver producer, this could be an attractive price," he noted.

The Catalyst: Outlook for Metals Positive

Central banks, particularly in emerging markets, continue to be significant buyers of gold, purchasing approximately 60 tonnes monthly as they diversify their reserves away from the U.S. dollar, according to a report on gold and silver prices by FX Empire's Arslan Ali on April 24. This trend is part of a broader context where the Middle East's ongoing volatility contributes to gold's appeal as a safe-haven asset. Additionally, investor interest in gold remains robust, facilitated by investments through Exchange-Traded Funds (ETFs). This sustained interest is driven by persistent economic uncertainties and enduring inflation concerns.

This week, both JPMorgan and Goldman Sachs highlighted the substantial official and investor demand for gold, noting purchases amounting to hundreds of tonnes each quarter. Such insights reinforce a positive long-term outlook for gold, suggesting that it remains a favored asset amidst global financial uncertainties.

The silver market is also experiencing significant dynamics, facing its sixth consecutive annual deficit in 2026, projected to be between 46 and 67 Moz, Ali wrote. This deficit is largely due to robust industrial demand for silver, particularly for uses in solar panels, electric vehicles, electronics, and technologies related to artificial intelligence. Despite an increase in recycling, it has not been sufficient to meet the soaring demand, resulting in a tight silver market. Additionally, global concerns about energy transitions are further fueling the demand for silver.

In terms of market movements, gold was trading at US$4,686, hovering just above the critical 0.5 Fibonacci level of US$4,670, which has been acting as a significant pivot point, the author wrote. The price remains below the 50-day EMA, continuing to respect the broader downtrend characterized by lower highs since the March peak. Recent trading shows signs of indecision, suggesting that sellers are still influencing the market on any rallies. A daily close below US$4,670 could lead to further declines towards US$4,536 and potentially US$4,370. Conversely, a move back above US$4,800 could disrupt the bearish trend and allow for a retest of US$4,995.

Silver was trading at US$74.65 and recently fell below its channel support on the four-hour chart, indicating a potential shift in the trend, according to Ali. The price has also dropped below the 50 EMA, with the 200 EMA sitting above at US$78, reinforcing resistance. The RSI has dropped below 40, confirming bearish momentum, and the market's failure to reclaim US$76 suggests strong resistance at that level. Immediate support is seen at US$72.75, followed by US$69.85. A recovery above US$76.00 would be necessary to suggest an easing of bearish pressure and a potential return to the previous channel.

Bank of America has recently released a striking commodity forecast for silver, projecting that its price could soar to between US$135 and US$309 per ounce by the end of 2026, Hillary Remy wrote for The Street on April 22. This forecast is notably bold compared to the typical modest adjustments seen in most annual commodity predictions.

The basis for these aggressive targets lies in the gold-to-silver ratio, which is currently about 59:1, as reported by FastBull. This ratio indicates how many ounces of silver are needed to purchase one ounce of gold. A higher ratio suggests that silver is undervalued relative to gold, based on historical standards.

Michael Widmer, the head of metals research at Bank of America, told Remy that if this ratio were to compress to its historical lows, the price of silver would need to increase significantly. Given that gold is trading near US$5,000, applying the 2011 low ratio of 32:1 results in a silver price of US$135. Using the 1980 ratio of 14:1, seen during the Hunt Brothers' attempt to corner the silver market, the price could skyrocket to US$309.

Widmer acknowledged the inherent uncertainty in such forecasts, clarifying that the price might cap at US$309, rather than asserting this as a certainty. Despite this, he maintained a broader perspective that silver has the potential to significantly outperform gold in 2026, even if these extreme targets are not fully realized.

Ownership and Share Structure¹

About 24% of the company is held by institutions, with Mirae Asset Global Investments holding 3.82% and Van Eck Associates owning 3.03%. About 6% of Avino Silver is held by management and insiders. 

The rest is retail.

Avino has 168.57 million shares outstanding and an estimated market capitalization of approximately CA$1.62 billion, based on recent trading prices. Shares trade in a 52-week range between CA$2.58 and CA$16.11.