Please wait

 

avino_ex991img3.jpg

 

 

 

AVINO SILVER & GOLD MINES LTD.

 

Condensed Consolidated Interim Financial Statements

 

For the three and nine months ended September 30, 2025 and 2024

 

(Unaudited)

 

 

 

 

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img13.jpg 

 

 

 

Note

 

 

September 30, 2025

 

 

December 31, 2024

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash

 

 

 

 

$57,331

 

 

$27,317

 

Amounts receivable

 

 

 

 

 

4,802

 

 

 

3,350

 

Amounts due from related parties

 

 

10(b)

 

 

210

 

 

 

18

 

Taxes recoverable

 

 

4

 

 

 

1,136

 

 

 

195

 

Derivative asset

 

 

 

 

 

 

1,525

 

 

 

-

 

Prepaid expenses and other assets

 

 

 

 

 

 

2,745

 

 

 

2,278

 

Inventory

 

 

5

 

 

 

12,000

 

 

 

7,611

 

Total current assets

 

 

 

 

 

 

79,749

 

 

 

40,769

 

Exploration and evaluation assets

 

 

7

 

 

 

16,242

 

 

 

52,890

 

Plant, equipment and mining properties

 

 

9

 

 

 

120,022

 

 

 

53,801

 

Long-term investments

 

 

6

 

 

 

3,579

 

 

 

1,247

 

Other assets

 

 

 

 

 

 

2,266

 

 

 

4

 

Total assets

 

 

 

 

 

$221,858

 

 

$148,711

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

$12,768

 

 

$10,292

 

Taxes payable

 

 

 

 

 

 

5,478

 

 

 

3,125

 

Deferred consideration payable

 

 

9

 

 

 

8,161

 

 

 

-

 

Derivative liability

 

 

 

 

 

 

-

 

 

 

475

 

Current portion of finance lease obligations

 

 

 

 

 

 

2,305

 

 

 

1,476

 

Current portion of equipment loans

 

 

 

 

 

 

242

 

 

 

166

 

Total current liabilities

 

 

 

 

 

 

28,954

 

 

 

15,534

 

Finance lease obligations

 

 

 

 

 

 

1,890

 

 

 

960

 

Equipment loans

 

 

 

 

 

 

231

 

 

 

27

 

Reclamation provision

 

 

11

 

 

 

2,468

 

 

 

2,062

 

Deferred income tax liabilities

 

 

 

 

 

 

6,193

 

 

 

4,729

 

Total liabilities

 

 

 

 

 

 

39,736

 

 

 

23,312

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

12

 

 

 

203,434

 

 

 

163,325

 

Equity reserves

 

 

 

 

 

 

11,456

 

 

 

11,529

 

Treasury shares

 

 

 

 

 

 

(97)

 

 

(97)

Accumulated other comprehensive loss

 

 

 

 

 

 

(5,596)

 

 

(6,035)

Accumulated deficit

 

 

 

 

 

 

(27,075)

 

 

(43,323)

Total equity

 

 

 

 

 

 

182,122

 

 

 

125,399

 

Total liabilities and equity

 

 

 

 

 

$221,858

 

 

$148,711

 

 

Commitments & Contingencies – Note 15

 

Subsequent Events – Note 19

 

Approved by the Board of Directors on November 6, 2025.

 

 

Michael Clark

 

Director

 

David Wolfin

 

Director

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
1

 

  

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img14.jpg 

 

 

 

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

Note

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue from mining operations

 

 

13

 

 

$21,042

 

 

$14,616

 

 

$61,683

 

 

$41,796

 

Cost of sales

 

 

13

 

 

 

11,137

 

 

 

8,907

 

 

 

30,992

 

 

 

29,051

 

Mine operating income

 

 

 

 

 

 

9,905

 

 

 

5,709

 

 

 

30,691

 

 

 

12,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

14

 

 

 

1,832

 

 

 

1,455

 

 

 

5,928

 

 

 

4,518

 

Share-based payments

 

 

12

 

 

 

1,165

 

 

 

531

 

 

 

2,847

 

 

 

1,601

 

Income before other items

 

 

 

 

 

 

6,908

 

 

 

3,723

 

 

 

21,916

 

 

 

6,626

 

Other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

 

 

 

 

342

 

 

 

(77)

 

 

675

 

 

 

77

 

Gain (loss) on long-term investments

 

 

6

 

 

 

2,383

 

 

 

(268)

 

 

2,746

 

 

 

87

 

Unrealized gain on derivative

 

 

 

 

 

 

86

 

 

 

-

 

 

 

2,000

 

 

 

-

 

Foreign exchange gain (loss)

 

 

 

 

 

 

1,139

 

 

 

170

 

 

 

(391)

 

 

342

 

Finance cost

 

 

 

 

 

 

(69)

 

 

(5)

 

 

(78)

 

 

(10)

Accretion of reclamation provision

 

 

11

 

 

 

(56)

 

 

(49)

 

 

(156)

 

 

(151)

Interest expense

 

 

 

 

 

 

(27)

 

 

(77)

 

 

(218)

 

 

(248)

Other expenses

 

 

 

 

 

 

-

 

 

 

-

 

 

 

(421)

 

 

-

 

Write-down of uncollectible account

 

 

 

 

 

 

-

 

 

 

(621)

 

 

-

 

 

 

(621)

Income before income taxes

 

 

 

 

 

 

10,706

 

 

 

2,796

 

 

 

26,073

 

 

 

6,102

 

Income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

 

 

 

 

 

(3,333)

 

 

(1,258)

 

 

(8,426)

 

 

(2,033)

Deferred income tax (expense) recovery

 

 

 

 

 

 

329

 

 

 

(369)

 

 

(1,464)

 

 

(1,061)

Income tax expense

 

 

 

 

 

 

(3,004)

 

 

(1,627)

 

 

(9,890)

 

 

(3,094)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

7,702

 

 

 

1,169

 

 

 

16,183

 

 

 

3,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency translation differences

 

 

 

 

 

 

(1,075)

 

 

1

 

 

 

439

 

 

 

(123)

Total comprehensive income

 

 

 

 

 

$6,627

 

 

$1,170

 

 

$16,622

 

 

$2,885

 

Income per share

 

 

12(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

$0.05

 

 

$0.01

 

 

$0.11

 

 

$0.02

 

Diluted

 

 

 

 

 

$0.05

 

 

$0.01

 

 

$0.10

 

 

$0.02

 

Weighted average number of common shares outstanding

 

 

12(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

147,988,156

 

 

 

135,070,079

 

 

 

144,682,370

 

 

 

132,925,193

 

Diluted

 

 

 

 

 

 

157,140,213

 

 

 

140,429,861

 

 

 

154,716,640

 

 

 

138,723,903

 

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
2

 

 

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Changes in Equity

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img15.jpg 

 

 

 

Note

 

 

Number of

Common

Shares

 

 

Share

Capital

Amount

 

 

Equity Reserves

 

 

Treasury Shares

 

 

Accumulated Other

Comprehensive Income (Loss)

 

 

Accumulated Deficit

 

 

Total Equity

 

Balance, January 1, 2024

 

 

 

 

 

128,728,248

 

 

$151,688

 

 

$11,041

 

 

$(97)

 

$(5,208)

 

$(51,423)

 

$106,001

 

Common shares issued:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the market issuances

 

 

12

 

 

 

5,050,585

 

 

 

3,906

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,906

 

Exercise of options

 

 

 

 

 

 

561,000

 

 

 

572

 

 

 

(200)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

372

 

Vesting of RSUs

 

 

12

 

 

 

1,197,709

 

 

 

1,018

 

 

 

(1,018)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Issuance costs

 

 

12

 

 

 

-

 

 

 

(276)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(276)

Share-based payments

 

 

12

 

 

 

-

 

 

 

-

 

 

 

1,601

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,601

 

Net income for the period

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,008

 

 

 

3,008

 

Currency translation differences

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(123)

 

 

-

 

 

 

(123)

Balance, September 30, 2024

 

 

 

 

 

 

135,537,542

 

 

$156,908

 

 

$11,424

 

 

$(97)

 

$(5,331)

 

$(48,415)

 

$114,489

 

Balance, January 1, 2025

 

 

 

 

 

 

140,565,642

 

 

$163,325

 

 

$11,529

 

 

$(97)

 

$(6,035)

 

$(43,323)

 

$125,399

 

Common shares issued:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the market issuances

 

 

12

 

 

 

9,953,995

 

 

 

37,538

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37,538

 

Exercise of options

 

 

12

 

 

 

2,562,615

 

 

 

3,165

 

 

 

(1,505)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,660

 

Vesting of RSUs

 

 

12

 

 

 

1,308,296

 

 

 

1,008

 

 

 

(1,008)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Carrying value of RSUs forfeited for withholding taxes

 

 

 

 

 

 

-

 

 

 

-

 

 

 

(342)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(342)

Issuance costs

 

 

12

 

 

 

-

 

 

 

(1,602)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,602)

Share-based payments

 

 

12

 

 

 

-

 

 

 

-

 

 

 

2,847

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,847

 

Expiration of options

 

 

12

 

 

 

-

 

 

 

-

 

 

 

(65)

 

 

-

 

 

 

-

 

 

 

65

 

 

 

-

 

Net income for the period

 

 

12

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16,183

 

 

 

16,183

 

Currency translation differences

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

439

 

 

 

-

 

 

 

439

 

Balance, September 30, 2025

 

 

 

 

 

 

154,390,548

 

 

$203,434

 

 

$11,456

 

 

$(97)

 

$(5,596)

 

$(27,075)

 

$182,122

 

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
3

 

  

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img16.jpg 

 

 

 

 

 

Nine months ended September 30,

 

 

 

Note

 

 

2025

 

 

2024

 

Operating Activities

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

$16,183

 

 

$3,008

 

Adjustments for non-cash items:

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense

 

 

 

 

 

1,464

 

 

 

1,061

 

Depreciation and depletion

 

 

 

 

 

2,736

 

 

 

2,504

 

Accretion of reclamation provision

 

 

11

 

 

 

156

 

 

 

151

 

Gain on investments

 

 

6

 

 

 

(2,746)

 

 

(87)

Unrealized gain on derivatives

 

 

 

 

 

 

(2,000)

 

 

-

 

Unrealized foreign exchange loss (gain)

 

 

 

 

 

 

1,369

 

 

 

(283)

Write down of uncollectible account

 

 

 

 

 

 

-

 

 

 

621

 

Write down of equipment and materials and supplies inventory

 

 

 

 

 

 

413

 

 

 

566

 

Finance costs on deferred consideration payable

 

 

 

 

 

 

64

 

 

 

-

 

Other expenses

 

 

 

 

 

 

425

 

 

 

-

 

Share-based payments

 

 

 

 

 

 

2,847

 

 

 

1,601

 

 

 

 

 

 

 

 

20,911

 

 

 

9,142

 

Net change in non-cash working capital items

 

 

17

 

 

 

(3,474)

 

 

(1,569)

Cash provided by operating activities

 

 

 

 

 

 

17,437

 

 

 

7,573

 

Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued for cash, net of issuance costs

 

 

 

 

 

 

35,936

 

 

 

3,630

 

Proceeds from option exercises and RSU vesting, net

 

 

 

 

 

 

1,318

 

 

 

372

 

Lease liability payments

 

 

 

 

 

 

(1,608)

 

 

(1,371)

Equipment loan payments

 

 

 

 

 

 

(240)

 

 

(126)

Cash provided by financing activities

 

 

 

 

 

 

35,406

 

 

 

2,505

 

Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and evaluation expenditures

 

 

 

 

 

 

(568)

 

 

(1,920)

Additions to plant, equipment and mining properties

 

 

 

 

 

 

(22,258)

 

 

(3,112)

Cash used in investing activities

 

 

 

 

 

 

(22,826)

 

 

(5,032)

Change in cash

 

 

 

 

 

 

30,017

 

 

 

5,046

 

Effect of exchange rate changes on cash

 

 

 

 

 

 

(3)

 

 

33

 

Cash, beginning

 

 

 

 

 

 

27,317

 

 

 

2,688

 

Cash, ending

 

 

 

 

 

$57,331

 

 

$7,767

 

 

Supplementary Cash Flow Information (Note 16)

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
4

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img17.jpg

 

1. NATURE OF OPERATIONS

 

Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.

 

The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada (except for the province of Quebec) and the United States, and trades on the Toronto Stock Exchange (“TSX”) under the ticker ASM:TSX, the NYSE American under the ticker ASM:NYSE-A, and the Frankfurt and Berlin Stock Exchanges under the ticker GV6.

 

The Company operates the Elena Tolosa Mine (“ET Mine” or “Avino Mine”) which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Avino property also hosts the San Gonzalo Mine, which is currently on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property.

 

2. BASIS OF PRESENTATION

 

Statement of Compliance

 

These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 – Interim Financial Reporting under IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2024, annual consolidated financial statements, which were prepared in accordance with IFRS Accounting Standards as issued by the IASB.

 

Basis of Presentation

 

These consolidated financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements as if the policies have always been in effect.

 

Foreign Currency Translation

 

Foreign currency transactions

 

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the statement of financial position. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.

 

Foreign operations

 

Subsidiaries that have functional currencies other than the US dollar translate their statement of operations items at the average rate during the year. Assets and liabilities are translated at exchange rates prevailing at the end of each reporting period. Exchange rate variations resulting from the retranslation at the closing rate of the net investment in these subsidiaries, together with differences between their statement of operations items translated at actual and average rates, are recognized in accumulated other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange difference is recognized in the statement of operations.

 

 
5

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img18.jpg

 

 

Significant Accounting Judgments and Estimates

 

The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its consolidated financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

 

The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2025, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2024.

 

Basis of Consolidation

 

The audited consolidated financial statements include the accounts of the Company and its Mexican subsidiaries as follows:

 

Subsidiary

Ownership Interest

Jurisdiction

Nature of

Operations

Oniva Silver and Gold Mines S.A. de C.V.

100%

Mexico

Mexican administration

Nueva Vizcaya Mining, S.A. de C.V.

100%

Mexico

Mexican administration

Promotora Avino, S.A. de C.V. (“Promotora”)

79.09%

Mexico

Holding company

Compañía Minera Mexicana de Avino, S.A. de C.V.

(“Avino Mexico”)

98.45% direct

1.22% indirect (Promotora)

99.67% effective

Mexico

Mining and exploration

La Luna Silver & Gold Mines Ltd.

100%

Canada

Holding company

La Preciosa Silver & Gold Mines Ltd.

100%

Canada

Holding company

Proyectos Mineros La Preciosa

S.A. de C.V.

100%

Mexico

Mining and exploration

Cervantes LLP

100%

U.S.

Holding company

 

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.

 

3. RECENT ACCOUNTING PRONOUNCEMENTS

 

New and amended IFRS Accounting Standards that are effective for the current year:

 

Certain new accounting standards and interpretations have been published that are either applicable in the current year, or are not mandatory for the current period and have not been early adopted.

 

 
6

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img19.jpg

 

 

Amendments to IAS 21 – Lack of Exchangeability

 

The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. In addition, the amendments require the disclosure of information that enables users of financial statements to understand the impact of currency not being exchangeable. There was no material impact on the Company’s consolidated financial statements from the adoption of these amendments.

 

Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial instruments

 

The amendments provide guidance on the derecognition of a financial liability settled through electronic transfer, as well as the classification of financial assets for: contractual terms consistent with a basic lending arrangement; assets with non-recourse features and contractually linked instruments.

 

Additionally, the amendments introduce new disclosure requirements related to investments in equity instruments designated at fair value through other comprehensive income (“FVOCI”), and additional disclosures for financial instruments with contingent features.

 

The amendments to IFRS 9 and IFRS 7 regarding the Classification and Measurement of Financial Instruments with a mandatory application of the standard on annual reporting periods beginning on or after January 1, 2026. We are currently assessing these standards, and their potential impact on the Company in the current or future reporting periods.

 

Amendments to IFRS 18 – Presentation and Disclosure in Financial Statements

 

In April 2024, the IASB released IFRS 18. IFRS 18 replaces IAS 1 while carrying forward many of the requirements in IAS 1. IFRS 18 introduces new requirements: i) present specified categories and defined subtotals in the statement of earnings, ii) provide disclosures on management defined performance measures (MPMs) in the notes to the financial statements, iii) improve aggregation and disaggregation. IFRS 18 requires retrospective application with specific transition provisions.

 

IFRS 18 regarding the Presentation and Disclosure of Financial Statements with a mandatory application of the standard on annual reporting periods beginning on or after January 1, 2027. We are currently assessing these standards, and their potential impact on the Company in future reporting periods.

 

 
7

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img20.jpg

 

4. TAXES RECOVERABLE

 

The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.

 

September 30,

2025

 

 

December 31,

2024

 

VAT recoverable

 

$1,101

 

 

$179

 

GST recoverable

 

 

19

 

 

 

16

 

Income taxes recoverable

 

 

16

 

 

 

-

 

 

 

$1,136

 

 

$195

 

 

5. INVENTORY

 

 

 

September 30,

2025

 

 

December 31,

2024

 

Process material stockpiles

 

$3,045

 

 

$2,520

 

Concentrate inventory

 

 

3,439

 

 

 

1,861

 

Materials and supplies

 

 

5,516

 

 

 

3,230

 

 

 

$12,000

 

 

$7,611

 

 

The amount of inventory recognized as an expense for the three and nine months ended September 30, 2025 totaled $11,137 and $30,579 (three and nine months ended September 2024 - $8,725 and $28,485). See Note 14 for further details.

 

6. LONG-TERM INVESTMENTS

 

The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:

 

For the nine months ended September 30, 2025:

 

Fair Value

December 31,

 

 

Net Additions /

 

 

Movements

in foreign

 

 

Fair value

adjustments

 

 

Fair Value

September 30,

 

 

 

2024

 

 

(Disposals)

 

 

exchange

 

 

for the period

 

 

2025

 

Talisker Resources Common

Shares

 

$685

 

 

$(466)

 

$40

 

 

$2,442

 

 

$2,701

 

Silver Wolf Exploration Ltd.

Common Shares

 

 

359

 

 

 

-

 

 

 

7

 

 

 

129

 

 

 

495

 

Silver Wolf Exploration Ltd.

Warrants

 

 

20

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

27

 

Endurance Gold Corp.

Common Shares

 

 

146

 

 

 

-

 

 

 

4

 

 

 

125

 

 

 

275

 

Endurance Gold Corp.

Warrants

 

 

37

 

 

 

-

 

 

 

1

 

 

 

43

 

 

 

81

 

 

 

$1,247

 

 

$(466)

 

$52

 

 

$2,746

 

 

$3,579

 

 

 
8

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img21.jpg

  

7. EXPLORATION AND EVALUATION ASSETS

 

The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:

 

Avino, Mexico

La Preciosa,

Mexico

Canada

Total

Balance, December 31, 2023

$15,698$34,412$1$50,111

Drilling and exploration

1301,449-1,579

Assessments and taxes

1951,018-1,213

Effect of movements in exchange rates

(31)19-(12)

Disposition of Olympic claims

--(1)(1)

Balance, December 31, 2024

$15,992$36,898$-$52,890

Drilling and exploration

60310-370

Assessments and taxes

18512-197

Transfer to other assets

-(2,215)(2,215)

Transfer to mining properties (Note 9)

-(35,005)(35,005)

Effect of movements in exchange rates

5--5

Balance, September 30, 2025

$16,242$-$-$16,242

 

(a) Avino, Mexico

 

The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following two groups:

 

 

(i)

Avino Mine area property

 

 

 

 

The Avino Mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares.

 

 

 

 

(ii)

Gomez Palacio/Ana Maria property

 

 

 

 

The Ana Maria property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares.

  

 
9

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img22.jpg

 

 

Option Agreement – Silver Wolf Exploration Ltd. (“Silver Wolf”)

 

On March 11, 2021, the Company entered into an option agreement to grant Silver Wolf the exclusive right to acquire a 100% interest in the Ana Maria and El Laberinto properties in Mexico (the “Option Agreement”).

 

All exploration expenditure requirements on the properties have been met as of September 30, 2025, and Silver Wolf is in compliance with the terms of the Option Agreement as of September 30, 2025. As of September 30, 2025, the final milestone payments and the transfer of title of the claims comprising the properties remain outstanding.

 

The Option Agreement between the Company and Silver Wolf is considered a related party transaction as the two companies have directors in common.

 

Unification La Platosa properties

 

The Unification La Platosa properties, consist of three leased concessions in addition to the leased concessions situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.

 

In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015.

 

Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$250 during the year ended December 31, 2012.The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes.

 

Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property.

 

(b) La Preciosa, Mexico

 

La Preciosa is a development stage mineral property located in the state of Durango, Mexico, within the municipalities of Pánuco de Coronado and Canatlán. The Project is hosting one of the largest undeveloped primary silver resources in Mexico, and is located adjacent to Avino’s existing operations at the Avino Property in Durango, Mexico. The property covers an area of approximately 1,134 hectares and is located on the eastern flank of the Sierra Madre Occidental mountain range.

 

On April 1, 2025, the Company determined that La Preciosa had demonstrated technical feasibility and commercial viability to support the reclassification from the exploration and evaluation asset stage to the development stage and mining properties with plant, equipment and mining properties.

 

As such, the Company performed an assessment for impairment under IFRS 6 prior to reclassification. Management assessed whether or not the assets were impaired using a quantitative assessment of the recoverable value.

 

Based on these factors, all of the criteria required by IAS 36.10 have been met, and the Company determined that the recoverable amount exceeds the carrying value, and no impairment was recorded.

 

 
10

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img23.jpg

 

 

(c) British Columbia, Canada

 

Minto and Olympic-Kelvin properties – British Columbia

 

On May 2, 2022, the Company granted Endurance Gold Corporation the right to acquire an option to earn 100% ownership of the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grant and mineral claims (the “Olympic Claims”).

 

During the year ended December 31, 2024, Endurance exercised the option to acquire 100% ownership of the Olympic Claims by satisfying all required terms of the option agreement.

 

8. NON-CONTROLLING INTEREST

 

At September 30, 2025, the Company had an effective 99.67% (December 31, 2024 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2024 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and accordingly have not been presented separately in the consolidated financial statements.

 

 
11

 

  

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img24.jpg

 

9. PLANT, EQUIPMENT AND MINING PROPERTIES

 

 

 

Mining properties

 

 

Office equipment, furniture, and

fixtures

 

 

Computer equipment

 

 

Mine machinery and

transportation equipment

 

 

Mill machinery and processing

equipment

 

 

Buildings and construction in

process

 

 

Total

 

 

 

 $

 

 

 $

 

 

$ 

 

 

 $

 

 

 $

 

 

 $

 

 

$

 

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2024

 

 

18,375

 

 

 

844

 

 

 

1,929

 

 

 

17,573

 

 

 

26,232

 

 

 

15,370

 

 

 

80,323

 

Additions / Transfers

 

 

870

 

 

 

395

 

 

 

18

 

 

 

417

 

 

 

2,994

 

 

 

445

 

 

 

5,139

 

Writedowns

 

 

-

 

 

 

(36)

 

 

(183)

 

 

(1,679)

 

 

(983)

 

 

(822)

 

 

(3,703)

Effect of movements in exchange rates

 

 

(15)

 

 

(12)

 

 

(1)

 

 

20

 

 

 

(21)

 

 

(11)

 

 

(40)

Balance at December 31, 2024

 

 

19,230

 

 

 

1,191

 

 

 

1,763

 

 

 

16,331

 

 

 

28,222

 

 

 

14,982

 

 

 

81,719

 

Additions / Transfers

 

 

3,060

 

 

 

33

 

 

 

114

 

 

 

6,438

 

 

 

2,574

 

 

 

554

 

 

 

12,773

 

Transfer from exploration and evaluation assets (Note 7)

 

 

35,005

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

35,005

 

Royalty buyback

 

 

21,423

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

21,423

 

Writedowns

 

 

-

 

 

 

(12)

 

 

(5)

 

 

(797)

 

 

(426)

 

 

-

 

 

 

(1,240)

Effect of movements in exchange rates

 

 

7

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

38

 

 

 

46

 

Balance at September 30, 2025

 

 

78,725

 

 

 

1,212

 

 

 

1,872

 

 

 

21,973

 

 

 

30,370

 

 

 

15,574

 

 

 

149,726

 

ACCUMULATED DEPLETION AND DEPRECIATION / IMPAIRMENT

Balance at January 1, 2024

 

 

9,473

 

 

 

548

 

 

 

781

 

 

 

5,235

 

 

 

7,894

 

 

 

3,323

 

 

 

27,254

 

Additions

 

 

426

 

 

 

130

 

 

 

401

 

 

 

1,534

 

 

 

549

 

 

 

339

 

 

 

3,379

 

Writedowns

 

 

-

 

 

 

(35)

 

 

(182)

 

 

(1,472)

 

 

(594)

 

 

(432)

 

 

(2,715)

Balance at December 31, 2024

 

 

9,899

 

 

 

643

 

 

 

1,000

 

 

 

5,297

 

 

 

7,849

 

 

 

3,230

 

 

 

27,918

 

Additions

 

 

364

 

 

 

109

 

 

 

308

 

 

 

577

 

 

 

1,018

 

 

 

237

 

 

 

2,613

 

Writedowns

 

 

-

 

 

 

(11)

 

 

(3)

 

 

(734)

 

 

(79)

 

 

-

 

 

 

(827)

Balance at September 30, 2025

 

 

10,263

 

 

 

741

 

 

 

1,305

 

 

 

5,140

 

 

 

8,788

 

 

 

3,467

 

 

 

29,704

 

NET BOOK VALUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2025

 

 

68,462

 

 

 

471

 

 

 

567

 

 

 

16,833

 

 

 

21,582

 

 

 

12,107

 

 

 

120,022

 

At December 31, 2024

 

 

9,331

 

 

 

548

 

 

 

763

 

 

 

11,034

 

 

 

20,373

 

 

 

11,752

 

 

 

53,801

 

 

 
12

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img25.jpg

 

 

Included in Buildings and construction in process above are assets under construction of $4,098 as at September 30, 2025 (December 31, 2024 - $3,443) on which no depreciation was charged in the periods then ended. Once the assets are available for use, they will be transferred to the appropriate class of plant, equipment and mining properties.

 

As of September 30, 2025, the Company recorded a write-down of $413 (December 31, 2024 - $988) against the carrying value of mine and mill machinery and transportation equipment due to damage and obsolescence.

 

As at September 30, 2025, plant, equipment and mining properties included a net carrying amount of $7,949 (December 31, 2024 - $5,162) for mining equipment and right of use assets under lease.

 

On August 25, 2025, the Company acquired all outstanding royalties and obligations held by Deterra Royalties Inc., on the La Preciosa property. Consideration for the transaction was $13.25 million upfront payment, followed by an $8.75 million payment deferred for one year. The consideration has been assigned at fair value as of the transaction date and recorded as an addition to mineral properties. The present value of the deferred obligation payment was calculated using a discount interest rate of 7.47%.

 

10. RELATED PARTY TRANSACTIONS AND BALANCES

 

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.

 

(a) Key management personnel

 

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel is as follows:

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Salaries, benefits, and consulting fees

 

$304

 

 

$273

 

 

$1,227

 

 

$886

 

Share-based payments

 

 

949

 

 

 

424

 

 

 

2,285

 

 

 

1,318

 

 

 

$1,253

 

 

$697

 

 

$3,512

 

 

$2,204

 

 

(b) Amounts due to/from related parties

 

In the normal course of operations, the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand.

 

The following table summarizes the amounts were due to/(from) related parties:

 

 

 

September 30,

2025

 

 

December 31,

2024

 

Oniva International Services Corp.

 

$97

 

 

$95

 

Silver Wolf Exploration Ltd.

 

 

(307)

 

 

(113)

 

 

$(210)

 

$(18)

 

 
13

 

  

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img26.jpg

 

 

For consulting services provided to the Company by the President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by the Company’s President and CEO and director. For the nine months ended September 30, 2025, the Company paid $333 (September 30, 2024 - $212) to ICC.

 

(c) Other related party transactions

 

The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company, with a 2.5% markup. The President & CEO, and director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

 

The transactions with Oniva are summarized below:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Salaries and benefits

 

$261

 

 

$235

 

 

$834

 

 

$731

 

Office and miscellaneous

 

 

131

 

 

 

95

 

 

 

402

 

 

 

342

 

 

 

$392

 

 

$330

 

 

$1,236

 

 

$1,073

 

 

11. RECLAMATION PROVISION

 

Management’s estimate of the reclamation provision at September 30, 2025, is $2,468 (December 31, 2024 – $2,062), and the undiscounted value of the obligation is $5,389 (December 31, 2024 – $4,825).

 

The present value of the obligation was calculated using a risk-free interest rate of 9.71% (December 31, 2024 – 9.70%) and an inflation rate of 3.69% (December 31, 2024 – 3.69%). Reclamation activities are estimated to begin in 2027 for the San Gonzalo Mine and in 2042 for the Avino Mine.

 

A reconciliation of the changes in the Company’s reclamation provision is as follows:

 

September 30,

2025

 

 

December 31,

2024

 

Balance at beginning of the period

 

$2,062

 

 

$2,195

 

Changes in estimates

 

 

-

 

 

 

84

 

Unwinding of discount

 

 

156

 

 

 

197

 

Effect of movements in exchange rates

 

 

250

 

 

 

(414)

Balance at end of the period

 

$2,468

 

 

$2,062

 

 

 
14

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img27.jpg

 

12. SHARE CAPITAL AND SHARE-BASED PAYMENTS

 

(a) Authorized: Unlimited common shares without par value

 

(b) Issued:

 

 

 

(i)

During the nine months ended September 30, 2025, the Company issued 9,953,995 common shares in an at- the-market offering under prospectus supplement for gross proceeds of $37,538. The Company paid a 2.75% cash commission of $1,032 on gross proceeds, for net proceeds of $36,506. Professional fees incurred associated with the base shelf and prospectus supplements were $570.

 

 

 

 

 

 

During the nine months ended September 30, 2025, the Company issued 1,308,296 common shares upon vesting of RSUs. As a result, $1,008 was recorded to share capital and $342 was recorded as a result of RSUs forfeit for withholding taxes.

 

 

 

 

 

 

During the nine months ended September 30, 2025, the Company issued 2,562,615 common shares following the exercise of 2,839,750 stock options, with 277,135 shares being forfeit for net exercise. As a result, $3,165 was recorded to share capital, representing cash proceeds of $1,660 and the fair value upon issuance of $1,505.

 

 

 

 

 

 

(ii)

During the year ended December 31, 2024, the Company issued 9,338,685 common shares in an at- the-market offering under prospectus supplement for gross proceeds of $9,732. The Company paid a 2.75% cash commission of $268 on gross proceeds, for net proceeds of $9,464. The Company also incurred $360 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.

 

 

 

 

 

 

During the year ended December 31, 2024, the Company issued 1,197,709 common shares upon vesting of RSUs. As a result, $1,018 was recorded to share capital.

 

 

 

 

 

 

During the year ended December 31, 2024, the Company issued 1,301,000 common shares following the exercise of 1,301,000 stock options. As a result, $1,515 was recorded to share capital, representing cash proceeds of $986 and the fair value upon issuance of $529.

 

(c) Stock options:

 

The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date.

 

 
15

 

  

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img28.jpg

 

 

Continuity of stock options is as follows:

 

 

 

Underlying

Shares

 

 

Weighted Average Exercise Price (C$)

 

Stock options outstanding, January 1, 2024

 

 

6,666,000

 

 

$1.27

 

Granted

 

 

2,500,000

 

 

$0.78

 

Exercised

 

 

(1,301,000)

 

$1.04

 

Cancelled / Forfeited

 

 

(190,000)

 

$1.26

 

Stock options outstanding, December 31, 2024

 

 

7,675,000

 

 

$1.15

 

Granted

 

 

2,547,000

 

 

$2.24

 

Exercised

 

 

(2,839,750)

 

$1.36

 

Expired

 

 

(100,000)

 

$1.64

 

Stock options outstanding, September 30, 2025

 

 

7,282,250

 

 

$1.44

 

Stock options exercisable, September 30, 2025

 

 

5,372,000

 

 

$1.16

 

 

The following table summarizes information about the stock options outstanding and exercisable at September 30, 2025:

 

 

 

 

 

Outstanding

 

 

Exercisable

 

Expiry Date

 

Price (C$)

 

 

Number of Options

 

 

Weighted Average Remaining

Contractual Life (Years)

 

 

Number of Options

 

 

Weighted Average Remaining Contractual Life

(Years)

 

March 25, 2027

 

$1.20

 

 

 

1,462,500

 

 

 

1.48

 

 

 

1,462,500

 

 

 

1.48

 

March 29, 2028

 

$1.12

 

 

 

1,580,000

 

 

 

2.50

 

 

 

1,580,000

 

 

 

2.50

 

July 10, 2028

 

$1.12

 

 

 

150,000

 

 

 

2.78

 

 

 

150,000

 

 

 

2.78

 

March 25, 2029

 

$0.78

 

 

 

1,624,000

 

 

 

3.48

 

 

 

1,624,000

 

 

 

3.48

 

April 9, 2030

 

$2.11

 

 

 

2,315,750

 

 

 

4.53

 

 

 

518,000

 

 

 

4.53

 

May 27, 2030

 

$4.38

 

 

 

150,000

 

 

 

4.66

 

 

 

37,500

 

 

 

4.66

 

 

 

 

 

 

 

 

7,282,250

 

 

 

3.21

 

 

 

5,372,000

 

 

 

2.74

 

 

Valuation of stock options requires the use of estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the stock options was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

 

 

 

September 30,

2025

 

 

December 31,

2024

 

Weighted average assumptions:

 

 

 

 

 

 

Risk-free interest rate

 

 

2.80%

 

 

3.51%

Expected dividend yield

 

 

0%

 

 

0%

Expected life (years)

 

 

5

 

 

 

5

 

Expected stock price volatility

 

 

60.28%

 

 

60.73%

Expected forfeiture rate

 

 

13%

 

 

15%

Weighted average fair value

 

C$1.06

 

 

C$0.43

 

 

During the nine months ended September 30, 2025, the Company charged $1,463 (nine months ended September 30, 2024 - $610) to operations as share-based payments for the fair value of stock options granted.

 

 
16

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img29.jpg

 

 

(d) Restricted Share Units:

 

On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period.

 

Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.

 

Continuity of RSUs is as follows:

 

 

 

Underlying

Shares

 

 

Weighted Average

Price (C$)

 

RSUs outstanding, January 1, 2024

 

 

2,994,709

 

 

$1.03

 

Granted

 

 

1,881,000

 

 

$1.02

 

Exercised

 

 

(1,197,709)

 

$1.15

 

Cancelled / Forfeited

 

 

(137,132)

 

$1.08

 

RSUs outstanding, December 31, 2024

 

 

3,540,868

 

 

$1.08

 

Granted

 

 

1,547,715

 

 

$2.50

 

Exercised

 

 

(1,308,296)

 

$1.10

 

Cancelled / Forfeited

 

 

(443,572)

 

$1.11

 

RSUs outstanding, September 30, 2025

 

 

3,336,715

 

 

$1.72

 

 

The following table summarizes information about the RSUs outstanding at September 30, 2025:

 

Issuance Date

 

Price (C$)

 

 

Number of RSUs Outstanding

 

March 29, 2023

 

$1.12

 

 

 

560,000

 

July 10, 2023

 

$0.94

 

 

 

25,000

 

April 1, 2024

 

$1.02

 

 

 

1,204,000

 

April 9, 2025

 

$2.41

 

 

 

1,476,000

 

May 27, 2025

 

$4.38

 

 

 

71,715

 

 

 

 

 

 

 

 

3,336,715

 

 

During the nine months ended September 30, 2025, the Company charged $1,384 (September 30, 2024 - $991) to operations as share-based payments for the fair value of the RSUs vested. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.

 

 
17

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img30.jpg

 

 

(e) Earnings per share:

 

The calculations for basic earnings per share and diluted earnings per share are as follows:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net income for the period

 

$7,702

 

 

$1,169

 

 

$16,183

 

 

$3,008

 

Basic weighted average number of shares outstanding

 

 

147,988,156

 

 

 

135,070,079

 

 

 

144,682,370

 

 

 

132,925,193

 

Effect of dilutive share options, warrants, and RSUs (‘000)

 

 

9,152,058

 

 

 

5,359,782

 

 

 

10,034,270

 

 

 

5,798,710

 

Diluted weighted average number of shares outstanding

 

 

157,140,213

 

 

 

140,429,861

 

 

 

154,716,640

 

 

 

138,723,903

 

Basic income per share

 

$0.05

 

 

$0.01

 

 

$0.11

 

 

$0.02

 

Diluted income per share

 

$0.05

 

 

$0.01

 

 

$0.10

 

 

$0.02

 

 

13. REVENUE AND COST OF SALES

 

The Company’s revenues for the nine months ended September 30, 2025 and 2024, are all attributable to Mexico, from shipments of concentrate from the Avino Mine.

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Concentrate sales

 

$21,425

 

 

$13,974

 

 

$59,127

 

 

$40,994

 

Provisional pricing adjustments

 

 

(383)

 

 

642

 

 

 

2,556

 

 

 

802

 

 

 

$21,042

 

 

$14,616

 

 

$61,683

 

 

$41,796

 

 

Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products.

 

 
18

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img31.jpg

 

 

Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following for the nine months ended September 30, 2025 and 2024:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Production costs

 

$9,992

 

 

$7,952

 

 

$27,963

 

 

$26,095

 

Write down of equipment and materials and supplies inventory

 

 

249

 

 

 

182

 

 

 

413

 

 

 

566

 

Depreciation and depletion

 

 

896

 

 

 

773

 

 

 

2,616

 

 

 

2,390

 

 

 

$11,137

 

 

$8,907

 

 

$30,992

 

 

$29,051

 

 

14. GENERAL AND ADMINISTRATIVE EXPENSES

 

General and administrative expenses consist of the following:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Salaries and benefits

 

$455

 

 

$585

 

 

$2,281

 

 

$1,440

 

Office and miscellaneous

 

 

697

 

 

 

308

 

 

 

1,623

 

 

 

1,266

 

Professional fees

 

 

312

 

 

 

240

 

 

 

739

 

 

 

709

 

Management and consulting fees

 

 

122

 

 

 

126

 

 

 

470

 

 

 

391

 

Investor relations

 

 

60

 

 

 

44

 

 

 

286

 

 

 

225

 

Regulatory and compliance fees

 

 

45

 

 

 

52

 

 

 

147

 

 

 

145

 

Directors’ fees

 

 

49

 

 

 

38

 

 

 

135

 

 

 

128

 

Travel and promotion

 

 

47

 

 

 

23

 

 

 

126

 

 

 

100

 

Depreciation

 

 

45

 

 

 

39

 

 

 

121

 

 

 

114

 

 

 

$1,832

 

 

$1,455

 

 

$5,928

 

 

$4,518

 

 

15. COMMITMENTS & CONTINGENCIES

 

The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 9.

 

 
19

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img32.jpg

 

 

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

 

 

 

September 30,

2025

 

 

December 31,

2024

 

Not later than one year

 

$733

 

 

$180

 

Later than one year and not later than five years

 

 

1,641

 

 

 

1,052

 

Later than five years

 

 

3,159

 

 

 

3,312

 

 

 

$5,533

 

 

$4,544

 

 

Office lease payments recognized as an expense during the nine months ended September 30, 2025, totaled $28 (September 30, 2024 - $30).

 

Due to the nature of the Company’s activities, the Company is from time to time involved in various claims and legal proceedings arising in the conduct of its business. At the reporting date, none of such claims and legal proceedings are considered probable of resulting in a material loss or judgment against the Company.

 

16. SUPPLEMENTARY CASH FLOW INFORMATION

 

For the nine months ended

September 30,

2025

 

 

September 30,

2024

 

Net change in non-cash working capital items:

 

 

 

 

 

 

Inventory

 

$(4,512)

 

$(2,050)

Prepaid expenses and other assets

 

 

(1,082)

 

 

(432)

Taxes recoverable

 

 

(940)

 

 

3,088

 

Taxes payable

 

 

2,353

 

 

 

529

 

Accounts payable and accrued liabilities

 

 

2,351

 

 

 

(2,622)

Amounts receivable

 

 

(1,452)

 

 

273

 

Amounts due to related parties

 

 

(192)

 

 

(355)

 

 

$(3,474)

 

$(1,569)

 

 

 

 September 30,

2025

 

 

September 30,

2024

 

Other supplementary information:

 

 

 

 

 

 

Interest paid

 

$240

 

 

$187

 

Taxes paid

 

 

5,133

 

 

 

13

 

 

 

$5,373

 

 

$200

 

 

 

 

 

 

 

 

 

 

September 30,

2025

 

 

September 30,

2024

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Transfer of share-based payments reserve upon vesting of RSUs

 

$1,008

 

 

$1,018

 

Transfer of share-based payments reserve upon exercise of stock options

 

 

3,165

 

 

 

572

 

Equipment acquired under finance leases and equipment loans

 

 

3,915

 

 

 

887

 

 

 

$8,088

 

 

$2,477

 

 

 
20

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img33.jpg

 

17. FINANCIAL INSTRUMENTS

 

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments are recorded at fair value. The carrying amounts of the Company’s deferred consideration payable, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

 

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

 

(a) Credit Risk

 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short- term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.

 

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with two (December 31, 2024 – two) counterparties (see Note 18). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.

 

The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At September 30, 2025, no amounts were held as collateral.

 

(b) Liquidity Risk

 

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at September 30, 2025, in the amount of $57,331 and current assets exceeded current liabilities by $50,795 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

 

The maturity profiles of the Company’s contractual obligations and commitments as at September 30, 2025, are summarized as follows:

 

 

 

Total

 

 

Less Than

1 Year

 

 

1-5 years

 

 

More Than 5

Years

 

Accounts payable and accrued liabilities

 

$12,768

 

 

$12,768

 

 

$-

 

 

$-

 

Deferred consideration payable

 

 

8,750

 

 

 

8,750

 

 

 

-

 

 

 

-

 

Equipment loans

 

 

516

 

 

 

271

 

 

 

245

 

 

 

-

 

Finance lease obligations

 

 

4,528

 

 

 

2,535

 

 

 

1,993

 

 

 

-

 

Total

 

$26,562

 

 

$24,324

 

 

$2,238

 

 

$-

 

 

 
21

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img34.jpg

 

 

(c) Market Risk

 

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

 

Interest Rate Risk

 

Interest rate risk consists of two components:

 

 

(i)

To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.

 

 

 

 

(ii)

To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

 

In management’s opinion, the Company is not materially exposed to interest rate risk, as any material debt obligations that bear interest are fixed and not subject to floating interest rates. A 10% change in the interest rate would not result in a material impact on the Company’s operations.

 

Foreign Currency Risk

 

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

 

September 30, 2025

 

 

December 31, 2024

 

 

 

MXN

 

 

CDN

 

 

MXN

 

 

CDN

 

Cash

 

$18,295

 

 

$475

 

 

$13,989

 

 

$396

 

Due from related parties

 

 

5,678

 

 

 

-

 

 

 

2,287

 

 

 

-

 

Long-term investments

 

 

-

 

 

 

4,983

 

 

 

-

 

 

 

1,742

 

Reclamation bonds

 

 

-

 

 

 

6

 

 

 

-

 

 

 

6

 

Amounts receivable

 

 

23,083

 

 

 

26

 

 

 

3,599

 

 

 

24

 

Accounts payable and accrued liabilities

 

 

(67,882)

 

 

(458)

 

 

(65,989)

 

 

(46)

Due to related parties

 

 

-

 

 

 

(238)

 

 

-

 

 

 

(136)

Finance lease obligations

 

 

(5,000)

 

 

-

 

 

 

(2,031)

 

 

(549)

Net exposure

 

 

(25,826)

 

 

4,794

 

 

 

(48,145)

 

 

1,437

 

US dollar equivalent

 

$(1,408)

 

$3,443

 

 

$(2,349)

 

$998

 

 

Based on the net US dollar denominated asset and liability exposures as at September 30, 2025, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the nine months ended September 30, 2025, by approximately $172 (year ended December 31, 2024 - $144). The Company has entered into certain foreign currency contracts to mitigate this risk and at September 30, 2025, recorded a derivative asset of $1,525 (December 31, 2024 – derivative liability of $475).

 

 
22

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img35.jpg

 

 

Price Risk

 

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

 

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At September 30, 2025, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $292 (December 31, 2024 - $36).

 

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At September 30, 2025, a 10% change in market prices would have an impact on net earnings (loss) of approximately $323 (December 31, 2024 - $119).

 

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

 

(d) Classification of Financial Instruments

 

IFRS 13 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

 

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 

The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at September 30, 2025:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

Cash

 

$57,331

 

 

$-

 

 

$-

 

Amounts receivable

 

 

-

 

 

 

4,802

 

 

 

-

 

Due from related parties

 

 

210

 

 

 

-

 

 

 

-

 

Derivative asset

 

 

-

 

 

 

1,525

 

 

 

-

 

Long-term investments

 

 

3,471

 

 

 

-

 

 

 

108

 

Total financial assets

 

$61,012

 

 

$6,327

 

 

$108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liability

 

 

-

 

 

 

-

 

 

 

-

 

Total financial liabilities

 

$-

 

 

$-

 

 

$-

 

 

 
23

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img36.jpg

 

 

The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2024:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

Cash

 

$27,317

 

 

$-

 

 

$-

 

Amounts receivable

 

 

-

 

 

 

3,350

 

 

 

-

 

Due from related parties

 

 

18

 

 

 

-

 

 

 

-

 

Derivative asset

 

 

-

 

 

 

-

 

 

 

-

 

Long-term investments

 

 

1,190

 

 

 

-

 

 

 

57

 

Total financial assets

 

$28,525

 

 

$3,350

 

 

$57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liability

 

 

-

 

 

 

(475)

 

 

-

 

Total financial liabilities

 

$-

 

 

$(475)

 

$-

 

 

18. SEGMENTED INFORMATION

 

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company’s Chief Operating Decision Maker (the Company’s CEO) to review operating segment performance. We have determined that each producing mine represents an operating segment, of which there is one as of September 30, 2025.

 

The Company’s revenues for the nine months ended September 30, 2025 of $61,683 (September 30, 2024 - $41,796) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine, and is considered to be one single reportable operating segment.

 

On the consolidated statements of operations, the Company had revenue from the following product mixes:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Silver

 

$9,195

 

 

$6,462

 

 

$25,143

 

 

$18,246

 

Copper

 

 

6,461

 

 

 

6,497

 

 

 

20,796

 

 

 

18,329

 

Gold

 

 

6,367

 

 

 

3,359

 

 

 

19,484

 

 

 

9,894

 

Penalties, treatment costs and refining charges

 

 

(981)

 

 

(1,702)

 

 

(3,740)

 

 

(4,673)

Total revenue from mining operations

 

$21,042

 

 

$14,616

 

 

$61,683

 

 

$41,796

 

 

For the three and nine months ended September 30, 2025 and 2024, the Company had the following customers that accounted for total revenues as follows:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Customer #1

 

$20,170

 

 

$14,117

 

 

$57,654

 

 

$35,404

 

Customer #2

 

 

(6)

 

 

487

 

 

 

3,151

 

 

 

5,930

 

Other customers

 

 

878

 

 

 

12

 

 

 

878

 

 

 

462

 

Total revenue from mining operations

 

$21,042

 

 

$14,616

 

 

$61,683

 

 

$41,796

 

 

 
24

 

  

AVINO SILVER & GOLD MINES LTD.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the nine Months Ended September 30, 2025, and 2024

(Expressed in Thousands of US Dollars - Unaudited)

 

avino_ex991img37.jpg

 

 

Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows:

 

September 30,

2025

 

 

December 31,

2024

 

Exploration and evaluation assets - Mexico

 

$16,242

 

 

$52,890

 

Total exploration and evaluation assets

 

$16,242

 

 

$52,890

 

 

September 30,

2025

 

 

December 31,

2024

 

Plant, equipment, and mining properties - Mexico

 

$119,682

 

 

$53,400

 

Plant, equipment, and mining properties - Canada

 

 

340

 

 

 

401

 

Total plant, equipment, and mining properties

 

$120,022

 

 

$53,801

 

 

19. SUBSEQUENT EVENTS

 

At-The-Market Sales – Subsequent to September 30, 2025, the Company issued 1,150,000 common shares in at- the-market offerings under prospectus supplement for gross proceeds of $6,437.

 

Stock Options Exercises – Subsequent to September 30, 2025, the Company issued 1,307,875 common shares through the exercise of 1,351,250 stock options at an average exercise price of C$1.20 for proceeds of C$1,575

 

 
25