Avino Silver earnings up next as La Preciosa ramp tests growth story

Avino Silver & Gold Mines Ltd reports fourth-quarter earnings after the market close Tuesday, with analysts expecting the Canadian miner to show whether its high-grade La Preciosa project can deliver on the promise that has driven shares up nearly fivefold over the past year.

Analysts forecast earnings of 8 cents a share on revenue of $28.75 million for the quarter ended December, representing sequential gains of 14% and 37%, respectively, from the prior period. The consensus would extend a string of strong results: Avino beat profit expectations by 40% in the third quarter, though revenue came in slightly below forecasts.

H.C. Wainwright rates the stock a Buy with a $12.50 price target, implying 61% upside from the current $7.78 share price. The firm raised its target from $7.40 in January, citing "strong cash balance of roughly $100.0M" and noting La Preciosa production "begins to play a key role."

The company trades at 57 times trailing earnings and nearly 79 times forward estimates—well above typical mining valuations—reflecting investor optimism about its transition from a single-mine operator to a multi-asset producer. Avino reported high-grade silver and gold intercepts at La Preciosa in January, fueling expectations that the project will become a meaningful contributor to cash flow.

What Investors Are Watching

The key question is how much tonnage La Preciosa delivered in the fourth quarter. The project began development mining in April 2025, contributing 48,244 silver ounces and roughly 11,995 tonnes processed by year-end. Any acceleration in that ramp-up would validate management’s strategy and support the stock’s premium multiple.

Capital allocation is another focus. Avino reported approximately $100 million in cash at Dec. 31, 2025, and with silver prices more than doubling in 2025, investors will watch how management balances development spending at La Preciosa against potential shareholder returns.

Finally, 2026 guidance will be scrutinized. The company signaled a development-heavy year with higher all-in sustaining costs per silver-equivalent ounce but positioned La Preciosa for potential production growth in 2027. Any detail on production targets, cost expectations and the pace of La Preciosa’s contribution will help investors assess whether the near-term spending supports long-term value creation.

The report comes as cumulative silver deficits have exceeded 800 million ounces over the past five years, supporting elevated prices that benefit primary silver producers like Avino. The question for investors is whether operational execution can match the favorable commodity backdrop and the stock’s lofty valuation.

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