Avino Silver & Gold Mines Ltd.

Avino Silver & Gold Mines Ltd. is a junior silver producer headquartered in Vancouver, Canada, operating primarily in Mexico. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 development project, in addition to several early-stage exploration prospects. Key assets include Avino and La Preciosa. The company's business model centers on the evaluation, acquisition, exploration, and operation of mineral properties, with a primary focus on assets with near-term production potential. Operations are vertically integrated, encompassing the extraction and processing of mineralized material through company-owned milling facilities. The enterprise produces concentrates which are sold to a limited number of metals traders and smelters; a long-term sales agreement is in place with a significant customer, though management asserts it is not economically dependent due to the availability of alternate purchasers. Processing capabilities include multiple grinding and flotation lines with froth flotation and gravity concentration circuits. The business is highly cyclical and competitive, requiring specialized skills in geology, engineering, and finance, which the management team possesses. The company's ability to acquire viable mineral properties depends on its capacity to develop current assets and identify suitable new prospects.

The organization's strategic direction is centered on a 5-year growth plan aimed at achieving intermediate producer status. A key pillar of this strategy is the phased development of a recently acquired, large undeveloped resource, leveraging proximity to existing infrastructure to realize operational and financial synergies while minimizing the environmental footprint. Near-term plans involve processing surface stockpiles from this new asset at the company's existing mill. Capital allocation for 2024 was directed toward surface works and equipment procurement for the initial development phase of the new project's primary veins. The company has utilized an At-The-Market offering to fund capital expansion. Resource base expansion is another core objective, pursued through systematic drilling programs designed to upgrade and increase mineral resources. A recent mineral resource update represented a significant milestone in the company's transformational growth path. A key operational advancement supporting this strategy is the commissioning of a dry stack tailings facility and conveyor system.

The board of directors is composed of 4 members, with a governance structure that includes 3 standing committees: Audit, Compensation, and Governance and Nominating. The Audit Committee consists of 3 directors, all of whom are independent and financially literate as defined by regulatory standards. Its members include a professional engineer with over 50 years of global mining industry experience and individuals with backgrounds in business management and public company directorships. Executive leadership includes a President and Chief Executive Officer, who has been a director since 1995, a Chief Financial Officer, a Chief Operating Officer, and a Vice President of Technical Services. The company's governance framework is formalized through an Audit Committee Charter and a Code of Ethics applicable to all employees and directors. Procedures are in place for managing potential conflicts of interest, requiring directors to disclose any such conflicts and abstain from related voting matters.

The company's commitment to social responsibility was recognized with the 'Empresa Socialmente Responsible ESR 2022' award, granted by the Mexican Center for Philanthropy and the Alliance for Corporate Social Responsibility. A key environmental initiative is the fully operational dry stack tailings facility, which includes a conveyor system to transport filtered residues, designed to enhance tailings management and reduce environmental risk. The corporate social responsibility team engages regularly with stakeholders in neighboring communities, focusing on education, infrastructure, and environmental initiatives aligned with the United Nations Sustainable Development Goals. In 2024, the company secured a long-term land-use agreement with a local community, enabling the development of a key growth project. The organization also operates a water treatment plant and maintains financial provisions for future reclamation and closure costs associated with its mineral properties and equipment.

In 2022, the company completed a significant transaction by acquiring all issued and outstanding equity of Proyectos Mineros La Preciosa S.A. De C.V. from Coeur Mining, Inc., a strategic move intended to leverage operational synergies with existing infrastructure. The company's primary operating subsidiaries include Compañía Minera Mexicana de Avino, S.A. de C.V. and the aforementioned acquired entity. As part of its portfolio optimization, the company granted an option to Endurance Gold Corporation to acquire the Olympic Claims; Endurance fulfilled all requirements to earn 100% ownership in 2024. In 2023, the company divested its interest in the Eagle Property through a sale to a subsidiary of Hecla Mining Company. The company maintains a sales agreement with several financial firms to facilitate an At-The-Market offering for capital raising purposes.