ASM · Avino Silver & Gold Mines Ltd.

Avino’s Q1 2026 production results reflect deliberate operational sequencing rather than underperformance: management explicitly states the 10% year-over-year decline in silver-equivalent output stems from planned mining into lower-grade zones early in the year, while simultaneously leveraging stockpiled higher-grade material and strong silver prices. La Preciosa development ore contributed 49,830 silver oz — modestly above Q4 2025 — and its integration accelerated post-quarter as Mill Circuit 2 shifted to process La Preciosa feed, signaling tangible progress toward the company’s stated goal of second-half production weighting. Mill throughput rose 11% year-over-year to 185,497 dry tonnes, validating recent automation and maintenance initiatives, yet feed grade silver fell 9% to 56 g/t versus Q1 2025, confirming the intentional dilution effect of development ore blending. Recovery rates were mixed: silver recovery dipped slightly to 81%, gold improved to 73%, and copper held steady at 84%. CEO David Wolfin emphasized that elevated silver prices will drive significant revenue outperformance versus budget — a key investor takeaway absent in the release’s production-only metrics. The inaugural mineral reserve estimate (27M tonnes, 95M oz Ag) provides strategic validation but carries no near-term production impact, as it reflects an effective date of October 31, 2025 and awaits filing in the updated NI 43-101 technical report. With financial statements scheduled for May 13, 2026 and forward guidance limited to timing (“second half weighted”) and confidence (“on track”), investors should focus on upcoming metallurgical consistency, La Preciosa ramp-up execution, and how realized silver prices translate into revenue and margin outcomes in the Q1 earnings release.