11/7/2025

speaker
Operator
Conference Operator

Welcome to the Avino Silver and Gold Mines Third Quarter 2025 Financial Results Conference Call and Webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Jennifer North, Head of Investor Relations. Please go ahead.

speaker
Jennifer North
Head of Investor Relations

Thank you, Operator. Good morning, everyone, and welcome to our Q3 earnings call and webcast. To join this webcast and conference call, there is a link in our news release of yesterday's date, which can be found on our website under News 2025. In addition, a link can be found on the homepage of the Avino website. The full financial statements in MD&A are now available on our website under the Investors tab, and then click on Financial Statements. In addition, the full statements are available on Avino's profile on CEDAR Plus and on EDGAR. Before we get started, I remind you to view our precautionary language regarding forward-looking statements and the risk factors pertaining to these statements. And note that certain statements made today on this call by the management team may include forward-looking information within the meaning of applicable securities laws. Forward-looking statements are subject to known and unknown risks, uncertainties, and other facts that may cause the actual results to be materially different than those expressed by or implied by such forward-looking statements. For additional information, we refer you to the detailed cautionary note in this presentation for this call or on our press release of yesterday's date. On the call today, we have the company's president and CEO, David Wolfen, our chief financial officer, Nathan Hart, and our VP of technical services, Peter Latta. I would like to remind everyone that this conference call is being recorded and will be available for replay later today. Replay information and the presentation slides from this conference call and webcast will be available on our website. Also, please note that all figures stated are in U.S. dollars and thus otherwise noted. Thank you. I will now hand over the call to Aveeno's President and CEO, David Wolfram. David?

speaker
David Wolfen
President and CEO

Thanks, Jen. Good morning, everyone, and welcome to Aveeno's third quarter 2025 financial results conference call and webcast. We will cover the highlights of our financial and operating performance, and then we will go over the work that we are currently doing, followed by a Q&A. I will start with a discussion on operations and overall performance, And then I will turn it over to Nathan Hart, Avino CFO, to discuss the financial performance for the period. And then Jennifer North, our head of investor relations, will present an overview of the Q3 CSR slash ESG initiatives. Please turn to slide five. Our strategic vision for transformational growth remains focused on transitioning from a single production operation to a multi-asset Mexican mid-tier producer. We've had eventful third quarter and our performance was guided by five key drivers. Number one, operational excellence. Number two, portfolio optimization. Number three, a disciplined approach to financial management and capital allocation. Number four, strategic exploration and drilling to unlock further resource potential. Number five, continued growth and strengthened market recognition. The first driver is operational excellence. Our team at site advanced automation and process upgrades, which has been reflected in our strong mill performance and sustained throughput. In addition, the progress at La Preciosa has been exceptional. Operations management have expanded the workforce with ongoing equipment training to support operational efficiency. Subsequent to the end of the quarter, we had started processing La Preciosa material through circuit number one, which is well ahead of expectations. Portfolio optimization, our second key driver, is reflected in the August announcement where we reported the acquisition of the outstanding royalties and contingent payments on La Preciosa. Acquiring these consolidates ownership, improving project economics, and enhancing operational flexibility at La Preciosa. By removing third-party obligations, this reduces financial and operational complexity, strengthening Aveeno's overall asset portfolio. We believe that this enhances shareholder value by optimizing our portfolio and positioning Aveeno for sustained growth. Our third driver focuses on our disciplined approach to financial management and capital allocation. Avino achieved another quarter of strong financial performance, which is reflective of improved meal availability and consistent operational discipline demonstrated by our team. With record cash of $57 million and working capital of $51 million, our balance sheet continues to build strength. Nathan will provide a detailed overview of the financials later in the call. Fourth, we remain committed to strategic exploration and drilling to unlock additional resource potential. In August, we reported results of four drill holes from La Preciosa, which were drilled to twin previous drilling. The assay results from the intercepts of La Gloria and Abundancia were very positive. Highlights include from hole 2503, 1,638 grams of silver and 1.92 grams of gold over 7.9 meters of true width. Included in that is 15,352 grams of silver and 1.55 grams of gold over 0.37 meters of true width. The intercept grades... are significantly higher than the average grades outlined in our current resource, highlighting the potential we aim to capture by using underground mining methods. In addition, the larger widths encountered at both La Gloria and Abundancia were a welcome surprise, underscoring that there is still much to learn about the deposit despite the 1,500 drill holes and substantial exploration investment performed by previous operators. We just released a further four holes on October 27, which have also returned excellent grades. The full results for both news releases are on our website under the News Release tab. Our final driver for the quarter reflects continued growth and strengthened market recognition. Vino was proud to be included in the Toronto Stock Exchange 2025 TSX 30. distinguishing itself by ranking fifth among top-performing companies. For the three years ended June 30, 2025, Aveeno's share price performance increased 610% and market capitalization increased 778%. In addition to this, Aveeno was added to the Market Vectors Junior Gold Miners Index and VanEck's Junior Gold Miners ETF, GDXJ, effective market close on September 19, 2025. These achievements underscore the decisive steps we've taken to advance Aveeno's transformational growth strategy and reinforce the investment case for Aveeno. Moving to slide six, we turn to Aveeno's Q2 2025 production results. which were released in mid-October, reflecting steady operational performance. Overall results continued to support the company's original production estimate of 2.5 to 2.8 million silver-equivalent ounces. On slide 7, we put together various photos of recent development activity at La Preciosa. We are very pleased with the progress we are making. At this time, I will now hand it over to Nathan Hart, Avino's CFO, to present a record financial performance for Q3 2025. Nathan?

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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