Avino Silver & Gold Mines Ltd. (ASM): Business Model Canvas [Dec-2025 Updated]

You're looking at a miner making a calculated, aggressive pivot, and honestly, the Business Model Canvas for Avino Silver & Gold Mines Ltd. (ASM) tells a compelling story of calculated growth, not just hope. Based on their recent $21.0 million Q3 2025 revenue and a rock-solid $57 million cash balance, they are executing a clear shift from a single-asset operator to a multi-asset powerhouse, using their existing mill to feed the La Preciosa project with low execution risk. This structure, which relies on unhedged metal sales and a clear path to intermediate producer status, shows exactly how they plan to capture upside in the metals market, so dig in below to see the nine building blocks that make this strategy tick.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Avino Silver & Gold Mines Ltd. (ASM) relies on to execute its transformational growth plan, especially as it brings La Preciosa online in late 2025. These partnerships are the backbone supporting their ambitious production targets.

Strategic Off-take Agreement with Samsung for Life-of-Mine Concentrate Sales

The relationship with Samsung C&T U.K. Ltd. is based on historical financing and concentrate sales. The concentrates prepayment agreement, originally announced in July 2015, was extended, obligating Avino Silver & Gold Mines Ltd. to sell concentrates on an exclusive basis to Samsung until December 2024.

The original facility involved an advance of US$10 million, of which a balance of US$6,666,670 remained as of the last reported amendment.

The repayment schedule for this outstanding balance was structured as:

• 23 equal monthly instalments of US$277,777, commencing October 2019 and ending August 2021.
• A single and final payment of $277,799 in September 2021.

Local Mexican Communities for Long-Term Land-Use and Operating Permits

Collaboration with local stakeholders in Durango, Mexico, is essential for operational continuity. Avino Silver & Gold Mines Ltd. secured a long-term land-use agreement with the local community at La Preciosa early in 2024.

This agreement paved the way for key 2025 activities, including the receipt of all required permits and the commencement of underground development at La Preciosa in January 2025.

Avino Silver & Gold Mines Ltd.'s Corporate Social Responsibility (CSR) team focuses on tangible actions aligned with the United Nations Sustainable Development Goals (SDGs) in the areas of:

• Education.
• Infrastructure (e.g., Pánuco de Coronado highway repair).
• Environment.

The company received the ESR Designation for its CSR initiatives for the third consecutive year as of early 2025.

Financial Agents (e.g., Cantor Fitzgerald) for the US$60 million ATM Equity Program

Avino Silver & Gold Mines Ltd. renewed its At-The-Market (ATM) equity program in late November 2025, allowing for flexible capital raising. The aggregate sales amount for the ATM Offering is up to the Maximum Amount of US$60 million.

The key financial agents involved in the Sales Agreement, dated June 13, 2023, include:

This program is registered in the United States under a registration statement declared effective by the SEC on May 28, 2025.

Key Suppliers for Mining Equipment and Processing Consumables

Operational continuity depends on securing necessary inputs and equipment, funded by strong internal cash generation. Avino Silver & Gold Mines Ltd. reported $57.3 million in cash at September 30, 2025, and remained debt-free (excluding leases and deferred royalty).

Capital expenditures for equipment and development are budgeted for 2025 across both the Avino Mine and La Preciosa.

Specific spending data available for Q1 2025 shows:

• Capital expenditures (including lease/loan payments) were $2.3 million in Q1 2025.
• Development costs at La Preciosa were included in Q2 2025 capital expenditures.

The company's 2025 production guidance is between 2.5 million and 2.8 million silver equivalent ounces.

Key partnership metrics as of late 2025:

Finance: draft 13-week cash view by Friday.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Key Activities

Avino Silver & Gold Mines Ltd. focuses its key activities on extracting value from its Mexican assets through active mining, processing efficiency, and strategic resource expansion.

Underground silver, gold, and copper mining at Avino Mine and La Preciosa

Mining operations are centered at the established Avino Mine and the developing La Preciosa property. The integration of higher-grade ore from La Preciosa is a major focus for late 2025.

The La Preciosa development saw blasting commence in April 2025, following permit receipt in Q1 2025. By the end of Q3 2025, over 6,700 tons of mineralized material from La Preciosa had been stockpiled and trucking to the Avino Mill for processing was actively underway. The site workforce for La Preciosa is currently 70 people across three shifts. Drilling at La Preciosa has shown high-grade intercepts, such as 7.9 meters of 1,600 grams of silver equivalent, which is substantially higher than the 200-gram resource grid used previously.

Production figures for the combined operations in 2025 show consistent output:

Individual metal production highlights from Q1 and Q3 2025 include:

• Q1 2025 Gold Production: 2,225 ounces, a 25% increase year-over-year.
• Q1 2025 Copper Production: 1.6 million pounds, a 19% increase year-over-year.
• Q1 2025 Silver Production: 265,681 ounces, a 6% increase year-over-year.
• Q3 2025 Silver Production: 263,231 ounces.
• Q3 2025 Copper Production: 1.3 million pounds.
• Q3 2025 Gold Production: 1,935 ounces, a 19% increase year-over-year.

Operating the 2,500 tonnes per day (TPD) on-site processing mill

Avino Silver & Gold Mines Ltd. operates an on-site processing mill with a stated capacity of 2,500 TPD. Operational focus in 2025 has been on throughput improvement through upgrades and automation.

Actual throughput achieved in recent quarters demonstrates performance above the prior year:

• Q2 2025 Mill Throughput: A quarterly record of 190,987 tonnes, up 36% versus Q2 2024.
• Q3 2025 Mill Throughput: 188,757 tonnes of material processed, a 21% increase versus Q3 2024.
• Mill Availability: Q3 2025 saw a 21% improvement in mill availability.

The 2025 outlook projected processing approximately 700,000 to 750,000 tonnes of material in total, sourced from both the Avino Mine and La Preciosa, with La Preciosa material expected in the second half of the year.

Mineral exploration and resource expansion drilling (e.g., La Preciosa, Avino Vein)

Exploration activities are budgeted to support the company's growth plan, which aims for 8 to 10 million silver equivalent ounces by 2029.

Key exploration focus areas and results include:

• Avino Mine Drilling: Focused on drilling deeper underground below level 17.
• Historical Best Intercept: Drilling in 2023 returned what was reported as the best intercept in company history: approximately 400 gram of silver equivalent over 55 to 60 meters.
• La Preciosa Exploration: Targeting areas not previously explored under the initial open pit focus.

Advancing the Oxide Tailings Project to a construction decision in 2026

The Oxide Tailings Project (OTP) is the third asset in the growth plan, with the company targeting a construction decision sometime in 2026.

The project is based on a Pre-Feasibility Study (PFS) completed in February 2024, which established proven and probable mineral reserves:

The estimated cost per ounce for leaching from this project is around $10 bucks, which could drive overall costs down into the low teens by 2028-2029.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Key Resources

You're looking at the bedrock of Avino Silver & Gold Mines Ltd. (ASM)'s operations, the tangible assets that drive everything else in their business model. These aren't just properties on a map; they are the operational engine and the resource base. The company's primary production comes from the wholly-owned Avino Mine, located in Durango, Mexico. Critically, this mine is strategically adjacent to the La Preciosa project, which is the major growth driver. La Preciosa is a development-stage property, but you should note that underground development has already commenced following the receipt of all required permits, which is a huge de-risking step. This adjacency allows for significant operational synergy.

Financially, Avino Silver & Gold Mines Ltd. is in a strong position to fund its growth organically. As of the end of the third quarter of 2025, the company reported a record cash position of $57.3 million. What's more, Avino remains debt-free, if you exclude operating equipment leases and the deferred royalty repurchase payment. Honestly, that clean balance sheet is a massive asset in this sector. To be fair, subsequent to the quarter end, the cash position had already climbed further to approximately $65 million as of early November 2025, which helps fund the ongoing La Preciosa ramp-up.

Here's a quick look at the hard numbers underpinning these key resources as of late 2025:

The processing infrastructure is a critical, ready-to-use resource. Avino Silver & Gold Mines Ltd. owns a wholly-owned, permitted 2,500 TPD processing facility located in Durango, Mexico. This existing mill is key because it allows La Preciosa to be brought into production with minimal initial capital costs by capitalizing on excess capacity. This infrastructure is what makes the La Preciosa development so capital-efficient for Phase 1. The company is actively stockpiling material from La Preciosa, with over 6,700 tons of mineralized material already stockpiled by the end of Q3 2025, and trucking to the Avino Mill is underway. That's using what you have to build the future.

The scale of the resource base is substantial, forming the long-term value proposition. Avino Silver & Gold Mines Ltd. currently controls total mineral resources of 371 million silver equivalent ounces across its district-scale land package, which includes the resources from both the Avino Property and the La Preciosa Property. This resource base is the foundation for their transformational growth plan, which aims to significantly increase production by 2029. The company is focused on leveraging this inventory, especially as La Preciosa, which hosts one of Mexico's largest undeveloped primary silver resources, comes online. The resource classification is in accordance with NI 43-101 standards.

You can see the core tangible assets laid out here:

• Avino Mine: Existing production base.
• La Preciosa Project: Major undeveloped silver resource adjacent to Avino.
• 2,500 TPD Mill: Permitted, wholly-owned processing capacity.
• Cash Reserves: $57.3 million as of Q3 2025.

Finance: draft 13-week cash view by Friday.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors and partners see value in Avino Silver & Gold Mines Ltd. right now, late in 2025. It boils down to direct commodity exposure, a clear, self-funded growth trajectory, and operational advantages built on existing infrastructure.

Unhedged exposure to rising silver, gold, and copper prices

The primary value proposition here is pure leverage to the metals market. Avino Silver & Gold Mines Ltd. maintains a policy where its silver, gold and copper production remains unhedged. This means every dollar the metal price rises directly flows through to the top line and, eventually, the bottom line, assuming costs are managed.

Consider the recent financial performance which reflects this exposure:

This direct, unhedged exposure is a key differentiator when you believe in the near-term trajectory of precious and base metals.

Clear path to becoming a multi-asset, intermediate producer by 2029

Avino Silver & Gold Mines Ltd. is executing a transformational growth strategy to move from a single-asset junior producer to a multi-asset intermediate producer within five years. The target is ambitious, aiming for annual production between 8 to 10 million AgEq ounces by 2029.

This growth is organic, meaning it is driven by developing assets the company already controls, which management suggests lowers execution risk compared to acquisitions. The plan involves transitioning from the current Avino Mine to a three-asset base, including La Preciosa and the Oxide Tailings Project.

• 2025 Production Guidance (Avino Mine): 2.5 - 2.8 million silver equivalent ounces.
• La Preciosa Contribution (Projected): Expected to add one million AgEq ounces in 2026.
• Total Projected Production (2026): Approximately 3.5 million ounces, driven by high-grade La Preciosa feed.
• Long-Term Cost Target: All-in sustaining costs (AISC) are expected to drop to the mid-teens range once La Preciosa is fully integrated.

The company's financial strength supports this self-funded path; cash reserves stood at $57 million and working capital at $51 million as of September 30, 2025.

Ethically sourced metals for industrial/tech supply chains (e.g., Samsung)

Avino Silver & Gold Mines Ltd. emphasizes responsible management and contributing to community well-being. Historically, this commitment was formalized through a concentrates prepayment agreement with Samsung C&T, which secured exclusive sales of Avino Mine concentrates until December 2024. This relationship highlights the value of Avino's output to major industrial consumers, as Samsung was noted as both a consumer and trader of silver, gold, and copper, with concentrates shipped to Asia for refining for end-user products.

The current operational focus is on integrating La Preciosa ore, which is also part of the company's commitment to responsible production.

Low execution risk by leveraging an existing mill for La Preciosa feed

A significant de-risking factor for the La Preciosa development is the plan to use the existing infrastructure at the Avino Mine. This avoids the massive capital expenditure and timeline associated with building a new processing facility.

Here's how the integration is progressing:

• La Preciosa underground development permits were secured in January 2025.
• Blasting at La Preciosa commenced in Q2 2025.
• Over 6,700 tons of mineralized material from La Preciosa had been stockpiled by the end of Q3 2025.
• Initial processing of La Preciosa material into the Avino Mill began in late 2025.
• The Avino Mill has a capacity of 2,500 tons per day with four independent circuits, allowing for the material feed to be folded in.

This strategy is already showing results in throughput efficiency; Q3 2025 saw mill throughput reach 188,757 tonnes, which was 21% higher than Q3 2024.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Customer Relationships

You're looking at how Avino Silver & Gold Mines Ltd. (ASM) manages its key relationships, which for a producer like this, boils down to who buys the metal, who funds the operation, and who lets them operate locally. It's a mix of industrial buyers, public markets, and local communities.

Strategic, long-term off-take contracts with major industrial buyers

Specific financial details or volumes tied to strategic, long-term off-take contracts with major industrial buyers were not explicitly detailed in the latest public filings available up to November 2025. However, a core aspect of Avino Silver & Gold Mines Ltd.'s sales relationship is that its production remains completely unhedged.

• Production of silver, gold, and copper remains unhedged.

Direct, active investor relations for public equity shareholders (TSX30 inclusion)

Investor relations is clearly a focus, evidenced by market recognition and capital-raising flexibility. The company actively engages its public equity shareholders through performance milestones and capital program management. Here's the quick math on their recent market standing:

The renewal of the At-The-Market (ATM) equity program to raise up to US$60 million shows a direct mechanism for accessing shareholder capital when needed for financial flexibility.

Dedicated community engagement to maintain social license to operate

Maintaining the social license to operate in Mexico is critical, especially with the advancement of the La Preciosa project. Avino Silver & Gold Mines Ltd. has formalized relationships and executed specific Corporate Social Responsibility (CSR) projects. They achieved the 3rd ESR designation for CSR.

Key community relationship milestones and Q2 2025 activities include:

• Secured a long-term land-use agreement with the local community at La Preciosa early in 2024.
• CSR teams delivered low cost water tanks and cisterns during Q2 2025.
• Approved a reforestation project covering five hectares, planning for 1,100 plants per hectare.
• 67 families in the community received solar boilers at reduced cost via company-led subsidy facilitation.

This level of tangible support helps secure the ongoing ability to operate the Avino Mine and advance La Preciosa.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Channels

You're looking at how Avino Silver & Gold Mines Ltd. moves its product and secures the funds to keep growing. It's a mix of physical shipping and public market access. Here's the quick math on their distribution and financing channels as of late 2025.

Direct sales of concentrate to global smelters and traders

Avino Silver & Gold Mines Ltd. moves its mined material directly to the market. The company's production, which remains unhedged, is sold as concentrate. For the first nine months of 2025, the company was on track to meet its annual production guidance range of 2.5 - 2.8 million silver equivalent ounces. This output is the physical product flowing through this channel.

The financial results show the effectiveness of this sales channel, which benefits from metal prices. Avino realized revenues of $21.8 million in Q2 2025, a 47% increase from the prior year, and $21.0 million in Q3 2025, a 44% increase year-over-year. The cost structure for this production, which directly impacts the realized value, saw Cash costs per silver equivalent payable ounce sold at $15.11 and All-in sustaining cash costs per silver equivalent payable ounce sold at $20.93 for Q2 2025.

The structure of their sales involves:

• Selling silver, gold, and copper concentrate.
• Selling to a primary buyer and other groups on a spot basis.
• Achieving strong profitability metrics, with Q3 2025 Gross profit (mine operating income) reaching $9.9 million.

Logistics network for shipping concentrate via Mexican ports like Manzanillo

The physical movement of the concentrate relies on a defined logistics path out of Mexico. The company uses its proximity to Pacific shipping lanes to its advantage. Specifically, concentrate is shipped out of the port in Manzanillo on a vessel bound for a smelter, with one destination mentioned being Korea.

A key feature of this channel is the payment timing tied to logistics milestones. Avino Silver & Gold Mines Ltd. gets paid as soon as the concentrate reaches the port in Mexico or in Manzanillo. This structure helps manage working capital, which was strong at $50.8 million as of September 30, 2025.

The operational throughput supports this channel, with Q2 2025 achieving a record quarterly mill throughput of 190,987 tonnes of material. The company controls significant mineral resources, totaling 371 million silver equivalent ounces, which feeds this logistics chain.

Public equity markets (TSX and NYSE American) for capital access

Avino Silver & Gold Mines Ltd. accesses capital directly from public equity markets via its listings on the Toronto Stock Exchange (TSX) and NYSE American, trading as ASM. This channel is critical for funding growth, including the advancement of the La Preciosa project.

The market's view of the company's performance through these channels is reflected in recent recognition and capital structure metrics as of late 2025. The company secured the 5th position on the TSX30™ 2025 ranking, based on a 610% share price increase and 778% market capitalization growth over the three years ending June 30, 2025. Furthermore, the company renewed its At-The-Market (ATM) Equity Program on November 26, 2025, providing a mechanism for future equity issuance.

You can see the strength of the balance sheet, which underpins its access to capital, in the table below:

The company remains debt-free excluding operating equipment leases and the deferred royalty repurchase payment, as noted when reporting $57.3 million in cash at September 30, 2025.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Customer Segments

You're looking at the specific groups Avino Silver & Gold Mines Ltd. (ASM) sells its output to, and who funds its operations as of late 2025. Here's the quick math on those segments based on the latest filings.

Global smelters and refiners purchasing bulk concentrate

This segment buys the physical output from the Avino Mine in Mexico. The value is tied directly to the metal content in the concentrate sold. For the third quarter of 2025, Avino Silver & Gold Mines Ltd. produced $\text{263,231}$ silver ounces, $\text{1,935}$ gold ounces, and $\text{1.3 million}$ pounds of copper. The company realized revenues of $\text{21.0 million}$ in Q3 2025. The cost structure for this segment's output in Q3 2025 was a cash cost per silver equivalent payable ounce sold of $\text{17.09}$, with all-in sustaining costs per silver equivalent payable ounce sold at $\text{24.06}$. Avino Silver & Gold Mines Ltd.'s 2025 annual production guidance remains between $\text{2.5}$ and $\text{2.8 million}$ silver equivalent ounces.

Major electronics and industrial manufacturers (e.g., Samsung)

While Avino Silver & Gold Mines Ltd. produces silver and copper, which are essential inputs for electronics and industrial applications, the direct customer relationship for the refined metals is typically through traders or refiners, not the end-user manufacturers themselves. The company's Q3 2025 production included $\text{1.3 million}$ pounds of copper. The realized revenue for Q3 2025 was $\text{21.0 million}$.

Precious metals traders and financial institutions

These entities purchase the refined or semi-refined metals from Avino Silver & Gold Mines Ltd. or its primary off-takers, facilitating the flow of physical metal and price discovery. The company's financial performance reflects the market prices these traders operate within. Avino Silver & Gold Mines Ltd. reported gross profit (mine operating income) of $\text{9.9 million}$ in Q3 2025, a $\text{73\%}$ increase year-over-year. The company's cash position at the end of Q3 2025 was $\text{57.3 million}$.

Institutional and retail equity investors

This segment provides the necessary capital for Avino Silver & Gold Mines Ltd.'s operations and growth projects like La Preciosa. The ownership structure as of late 2025 shows a mix of professional money managers and individual holders. The Market Cap was reported at $\text{727.78M}$. The share price as of November 21, 2025, was $\text{4.36}$ per share.

The ownership breakdown is as follows:

• Institutional Shareholders: $\text{28.76\%}$
• Retail Investors: $\text{71.24\%}$
• Insiders Ownership: $\text{0.00\%}$ or $\text{4.68\%}$

Key institutional holders and their reported holdings include:

The total number of shares held by institutions filing 13D/G or 13F forms was $\text{49,622,436}$ shares. Avino Silver & Gold Mines Ltd. announced the renewal of its at-the-market (ATM) equity program on November 26, 2025.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Avino Silver & Gold Mines Ltd.'s operations, which are heavily influenced by production efficiency and the capital required to bring the La Preciosa asset online. The cost structure is a mix of variable costs tied to production and significant fixed overheads related to the Mexican operational base.

For the second quarter of 2025, the company reported its All-in Sustaining Costs (AISC) per silver equivalent payable ounce sold at $20.93, which represented an 8% reduction compared to the same period in the prior year. This figure is slightly higher than the $20.54 per AgEq oz you mentioned, but it reflects the most recent reported metric for the period ending June 30, 2025. To be fair, the Q3 2025 AISC was higher at $24.06 per silver equivalent payable ounce sold, impacted by lower feed grades in that quarter.

A major component of the cost structure is the significant growth capital being deployed for the La Preciosa underground development. The initial phase of development at La Preciosa was estimated to cost under $5 million, intended to be funded from existing cash reserves. For the full 2025 fiscal year, Avino Silver & Gold Mines Ltd. budgeted a total capital expenditure of $13-18 million, with growth capital allocated between the Avino Mine and La Preciosa development falling in the $6-8 million range. The development cost at La Preciosa was explicitly included in the capital expenditures for Q2 2025.

The fixed cost base is dominated by running the Avino mill and associated Mexican labor. While specific labor costs aren't itemized, operational efficiency is reflected in the margins. In Q2 2025, the gross profit margin, inclusive of non-cash depreciation and depletion, stood at 45%, a significant improvement from 32% in Q2 2024. On a cash basis, that margin was 52%. The mill operation itself hit a record throughput of 190,987 tonnes of material processed in Q2 2025, up 36% year-over-year, showing the fixed asset base is being used more effectively.

Sustaining capital is necessary for keeping the existing Avino Mine running smoothly. The 2025 budget allocated $6-8 million for sustaining capital and mine development, which covers maintenance and replacement of existing underground mining equipment and further development within current operations.

Here's a quick look at the key cost-related metrics and allocations for 2025:

The ongoing cost management focus for Avino Silver & Gold Mines Ltd. centers on two main areas:

• Driving down AISC by integrating higher-grade ore from La Preciosa.
• Maximizing throughput at the Avino mill to spread fixed costs over more ounces.

The mill processed a record 190,987 tonnes in Q2 2025, which is key to managing those fixed mill operation expenses. Finance: draft 13-week cash view by Friday.

Avino Silver & Gold Mines Ltd. (ASM) - Canvas Business Model: Revenue Streams

The primary revenue generation for Avino Silver & Gold Mines Ltd. (ASM) comes from the Sales of silver, gold, and copper concentrate (unhedged). The Company explicitly states its production remains unhedged.

The financial performance in the third quarter of 2025 showed strong top-line results:

• Q3 2025 revenue totaled $21.0 million.
• This represented an increase of 44% from the $14.6 million realized in Q3 2024.
• The Q3 2025 revenue was primarily the result of increased metal prices and marginally higher ounces sold.
• Gross profit (mine operating income) for Q3 2025 was $9.9 million, a 73% increase.
• Net income after taxes for Q3 2025 was a record $7.7 million, or $0.05 per share.
• EBITDA for Q3 2025 was $11.5 million, a 200% increase from $3.8 million in Q3 2024.

To give you a broader view of the revenue progression leading into late 2025, here is a look at the reported quarterly revenues:

The operational targets support these revenue expectations. Avino Silver & Gold Mines Ltd. (ASM) expects to remain within its Annual production guidance for 2025 is 2.5 million to 2.8 million AgEq oz. For context, Q3 2025 production was 580,780 silver equivalent ounces.

To maintain financial flexibility for strategic maneuvers, Avino Silver & Gold Mines Ltd. (ASM) has renewed its At-The-Market (ATM) equity program, which allows for Potential equity raises for strategic flexibility, up to US$60 million via ATM. As of September 30, 2025, the company reported a record cash position of $57.3 million and working capital of $50.8 million, remaining debt-free excluding equipment leases and deferred royalty payments.

Key operational metrics underpinning revenue include:

• Q3 2025 mill throughput totaled 188,757 tonnes of material, a 21% increase versus Q3 2024.
• Gold production in Q3 2025 increased 19%.
• The company successfully started processing material from La Preciosa ahead of schedule.