Avino Silver & Gold (ASM) Q3 2026: EPS Triples Estimates as Costs Surge

Avino Silver & Gold Mines posted adjusted earnings of $0.08 per share for the third quarter of 2026, four times the $0.02 consensus estimate. The outperformance traced almost entirely to silver prices: the company realized $63.33 per ounce during the quarter, up from $38.21 a year earlier, lifting revenue even as payable silver-equivalent ounces sold slipped.

The revenue picture was far less flattering. Sales came in at $33.4 million, missing expectations against the $54.8 million analyst estimate. The gap reflects lower metal volumes sold and shows how much the earnings beat depended on spot silver holding at elevated levels.

Costs are the central concern heading into the next quarter. All-in sustaining costs climbed to $34.71 per silver-equivalent ounce from $24.06 a year ago, driven by higher consumables costs, a stronger Mexican peso, and still-elevated unit costs at La Preciosa, where the mine remains in its development stage. Production costs rose and silver recovery fell to 70% from 84% a year earlier.

On a GAAP basis, net income actually declined 20.8% year-over-year to $6.1 million, or $0.03 per diluted share, weighed down by a $6.1 million income tax charge and a $1.15 million unrealized loss on peso forward derivatives. Operating cash flow was a healthier $12.7 million, up 52.5% from a year ago, and the company ended the quarter with $138.2 million in cash, more than double the balance from a year earlier.

Management is pursuing a plan to become a Mexico-focused mid-tier primary silver producer, with a long-term target of silver making up 75% of silver-equivalent production. Near-term milestones include the start of long-hole production mining on Level 3 at La Preciosa, where mine preparation on the Abundancia and La Gloria zones is nearly complete, and trade-off studies for a stand-alone processing plant at the site are already finished. A 15,000-metre drill program at La Preciosa was under way as of the filing, with recent holes returning intervals including 616 g/t silver over 4.86 metres.

The quarter's earnings story is essentially a one-variable equation: if silver stays near $63 an ounce, the margin math works despite rising costs. If the metal retreats toward levels seen a year ago, the gap between AISC and the realized price compresses quickly. Investors will also want to track La Preciosa's progression from development-stage costs toward the lower unit costs expected once long-hole production mining is fully under way.