Interview with David Wolfin, President & CEO, Avino Silver & Gold Mines

Recording date: 2nd of March, 2025

Avino Silver & Gold Mines (ASM), a family-founded silver and gold producer with a 57-year legacy, is embarking on an ambitious growth plan to triple production within five years. Led by CEO David Wolfin, who followed in his father's footsteps, the company aims to transition from its current 2.6 million ounces of silver equivalent annual production to 8-10 million ounces.

The company's Q4 2024 financial results showcase its strengthening position, with cash reserves growing from $7.8 million to $26 million in just three months. This remarkable growth, generating $12 million in free cash flow for the quarter, reflects competitive production metrics with cash costs of $15 per ounce and all-in sustaining costs around $22 per ounce.

ASM's growth strategy centers on three key assets: the producing Avino mine featuring a "stockwork system" with bulk tonnage mineralization, the recently acquired La Preciosa project, and an oxide tailings project. La Preciosa, purchased from Coeur Mining for $30 million in 2022, represents exceptional value as its previous owner paid $350 million in 2013. This asset, containing approximately three times the silver grade of the Avino mine, will begin processing 500 tons per day in 2025.

The third component, the oxide tailings project, will reprocess material from mining conducted in the 1970s and 1980s, with production targeted for 2027-2028. As Wolfin explains, "All the profits are sitting in the waste pile now."

Currently, 49% of ASM's revenue comes from silver, 19% from gold, and the remainder from copper. This mix is expected to shift further toward silver as La Preciosa comes online, making the company an increasingly pure silver play in a market with diminishing silver-focused investment options.

With a current market capitalization of approximately $200 million, compared to similar producers at $1 billion, ASM sees significant valuation growth potential. The company's resource base of 75 million metric tons could theoretically support 100 years of mine life at current processing rates.

Operating in Mexico with significant infrastructure advantages, ASM employs 450 people and plans to add 200 more through its expansion projects. The company's disciplined approach focuses on organic growth rather than acquisitions, with Wolfin noting, "Right now it's to keep blinders on and focus on what we're doing."

As silver markets show strength amid industrial demand growth, particularly in electronics and renewable energy, ASM appears well-positioned to benefit from both improving metal prices and its strategic growth plan.

Learn more: https://www.cruxinvestor.com/companies/avino-silver-gold-mines-ltd

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