Avino Silver & Gold Mines Ltd. (ASM): Business Model Canvas [Jan-2025 Updated]

In the dynamic world of precious metal mining, Avino Silver & Gold Mines Ltd. (ASM) emerges as a strategic powerhouse, leveraging a sophisticated business model that transforms rugged Mexican terrain into a lucrative mineral extraction landscape. With two operational mines and a laser-focused approach to sustainable mining, ASM represents a compelling narrative of innovation, environmental responsibility, and strategic resource development that promises investors not just metals, but a vision of responsible resource extraction in the 21st century.

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Key Partnerships

Strategic Mining Agreements with Local Mexican Contractors

As of 2024, Avino Silver & Gold Mines has established partnerships with local Mexican contractors for mining operations at the Avino Property in Durango, Mexico.

Contractor Type	Number of Active Partnerships	Contract Duration
Local Mining Contractors	3	2-3 years
Exploration Support Contractors	2	1-2 years

Equipment Suppliers for Mining Operations

Avino maintains critical equipment supply partnerships to support mining infrastructure and operational capabilities.

• Caterpillar Inc. - Heavy mining equipment
• Sandvik Mining - Drilling and excavation equipment
• Atlas Copco - Underground mining machinery

Geological Consulting Firms for Resource Exploration

Strategic partnerships with geological consulting firms enhance resource exploration capabilities.

Consulting Firm	Exploration Focus	Contract Value
SRK Consulting	Resource estimation	$250,000 annually
Tetra Tech	Geological mapping	$180,000 annually

Environmental Compliance and Sustainability Partners

Environmental partnerships ensure regulatory compliance and sustainable mining practices.

• Mexican Environmental Protection Agency
• Local Environmental Conservation Groups
• Sustainability Certification Organizations

Transportation and Logistics Service Providers

Logistics partnerships are crucial for efficient mineral transportation and supply chain management.

Logistics Provider	Service Type	Annual Transportation Volume
Grupo México Transportes	Mineral concentrate shipping	45,000 metric tons
Ferromex Railroad	Bulk material transportation	38,000 metric tons

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Key Activities

Silver and Gold Mineral Exploration

Avino Silver & Gold Mines Ltd. conducts exploration activities primarily in the Durango State, Mexico. As of 2023, the company holds the following exploration properties:

Property Name	Location	Type	Status
Avino Property	Durango, Mexico	Silver-Gold-Copper	Active Exploration
San Gonzalo Property	Durango, Mexico	Silver-Gold	Active Development

Mining and Extraction Operations in Mexico

The company's current mining operations include:

• Total mineral resource estimate of 54.7 million tonnes
• Average annual silver production of approximately 1.2 million ounces
• Average annual gold production of approximately 4,000 ounces

Mineral Processing and Refining

Processing capabilities at the Avino Mine:

Processing Parameter	Capacity	Details
Mill Throughput	1,000 tonnes per day	Flotation and processing facility
Recovery Rate	Silver: 85%	Metallurgical efficiency
Recovery Rate	Gold: 75%	Metallurgical efficiency

Mineral Resource Development

Current mineral resource development metrics:

• Measured and indicated mineral resources: 37.8 million tonnes
• Inferred mineral resources: 16.9 million tonnes
• Average silver grade: 81 grams per tonne
• Average gold grade: 0.4 grams per tonne

Sustainable Mining Practices Implementation

Environmental and sustainability investments:

Sustainability Initiative	Investment	Status
Water Recycling System	$2.3 million	Implemented
Energy Efficiency Program	$1.7 million	Ongoing
Land Rehabilitation	$1.1 million	In Progress

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Key Resources

Pomona Silver-Gold Mine in Durango, Mexico

Property details:

• Total property size: 1,600 hectares
• Located in Durango State, Mexico
• Historical production: Over 6 million ounces of silver

Resource Metric	Current Status
Proven and Probable Reserves	1.34 million tonnes
Silver Grade	82.7 g/t
Gold Grade	0.37 g/t

San Miguel Silver-Gold Mine Complex

Property characteristics:

• Total property area: 2,100 hectares
• Located in Aguascalientes, Mexico

Resource Category	Quantity
Measured and Indicated Resources	5.6 million tonnes
Inferred Resources	3.2 million tonnes

Specialized Mining Equipment

• Underground mining machinery
• Processing plant equipment
• Exploration drilling equipment

Equipment Type	Quantity	Estimated Value
Underground Loaders	4 units	$2.4 million
Drilling Rigs	3 units	$1.8 million

Skilled Geological and Mining Workforce

Workforce composition:

• Total employees: 287
• Geologists: 22
• Mining engineers: 35
• Technical specialists: 48

Mineral Exploration and Extraction Expertise

Technical capabilities:

• Over 30 years of mining experience in Mexico
• Advanced geological mapping technologies
• Sustainable mining practices

Exploration Metric	Current Status
Annual Exploration Budget	$3.2 million
Exploration Drill Meters	12,500 meters

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Value Propositions

High-quality Silver and Gold Mineral Production

As of Q4 2023, Avino Silver & Gold Mines reported the following mineral production metrics:

Metal	Production Volume	Grade
Silver	220,000 ounces	180 g/t
Gold	3,500 ounces	0.75 g/t

Sustainable and Environmentally Responsible Mining

Environmental compliance metrics for 2023:

• Carbon emissions reduction: 12% compared to 2022
• Water recycling rate: 65%
• Land rehabilitation investment: $1.2 million

Consistent Mineral Resource Development

Mineral resource inventory as of December 2023:

Resource Category	Silver (Moz)	Gold (Moz)
Measured	12.5	0.22
Indicated	35.7	0.65

Diversified Precious Metal Portfolio

Portfolio composition in 2023:

• Mexican operations: 75% of total production
• Canadian exploration projects: 25% of portfolio
• Silver-to-gold ratio: 65:35

Potential for Long-term Investment Growth

Financial performance indicators for 2023:

Metric	Value
Revenue	$42.3 million
EBITDA	$15.6 million
Net Income	$5.2 million

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Customer Relationships

Direct Sales to Metal Traders

As of 2024, Avino Silver & Gold Mines Ltd. maintains direct sales channels with metal traders globally. The company's silver and gold concentrate sales are primarily conducted through spot market transactions.

Customer Segment	Sales Volume (2023)	Average Transaction Value
International Metal Traders	1,245 metric tons	$3.2 million per transaction
Regional Metal Buyers	687 metric tons	$1.8 million per transaction

Long-Term Contracts with Industrial Metal Buyers

Avino has established strategic long-term contracts with industrial metal buyers to ensure consistent revenue streams.

• Contract duration: 3-5 years
• Minimum annual purchase commitment: 500 metric tons
• Price adjustment mechanisms linked to market indices

Transparent Reporting for Investors

The company maintains quarterly financial reporting with detailed metrics on production and sales.

Reporting Metric	Frequency	Disclosure Platform
Financial Results	Quarterly	SEDAR, Company Website
Production Metrics	Monthly	Investor Presentations

Engagement Through Investor Relations

Avino actively manages investor relationships through multiple communication channels.

• Annual shareholder meetings
• Quarterly investor conference calls
• Dedicated investor relations email: investors@avino.com
• Investor information hotline: +1 (604) 682-3707

Community Relationship Management

The company implements community engagement strategies in mining regions.

Community Engagement Initiative	Annual Investment	Beneficiary Regions
Local Infrastructure Development	$750,000	Durango, Mexico
Educational Support Programs	$250,000	Local mining communities

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Channels

Direct Metal Sales Platforms

Avino Silver & Gold Mines Ltd. utilizes the following direct sales platforms:

Platform Type	Sales Channel Details	Annual Transaction Volume
Online Precious Metals Portal	Direct B2B metal trading platform	$37.6 million in 2023
Corporate Sales Department	Direct client relationship management	$22.4 million in 2023

Mining Industry Conferences

Avino participates in key industry conferences for metal sales and investor engagement:

• Prospectors & Developers Association of Canada (PDAC) Conference
• Vancouver Resource Investment Conference
• Silver & Gold Summit

Investor Relations Websites

Website Platform	Unique Visitors (2023)	Investor Interaction Metrics
Avino Corporate Website	124,567 annual visitors	3,245 investor inquiries
TSX Venture Exchange Profile	89,321 annual visitors	2,134 information requests

Financial Market Presentations

Avino conducts financial presentations through:

• Quarterly earnings webinars
• Institutional investor roadshows
• Virtual investor conference calls

Online and Physical Metal Commodity Exchanges

Exchange Platform	Trading Volume (2023)	Transaction Value
London Bullion Market Association	12,456 ounces	$24.3 million
COMEX Silver Futures	8,765 contracts	$18.7 million

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Customer Segments

Industrial Metal Purchasers

Avino Silver & Gold Mines Ltd. targets industrial metal purchasers with specific purchasing characteristics:

Segment Characteristic	Quantitative Data
Annual Silver Demand	31,000 metric tons globally
Industrial Metal Purchase Volume	1,200 metric tons per year
Average Contract Value	$4.7 million per transaction

Precious Metal Investment Firms

Key customer segment with specific investment parameters:

• Total addressable market: $180 billion precious metals investment market
• Average investment portfolio allocation: 3-5% in silver and gold
• Typical investment size: $2.5 million to $15 million

Manufacturing Companies

Manufacturing segment breakdown:

Industry	Silver Consumption	Annual Demand
Electronics	7,500 metric tons	$375 million market
Solar Panel	3,200 metric tons	$160 million market
Medical Equipment	1,800 metric tons	$90 million market

Global Commodity Traders

Commodity trading segment characteristics:

• Global trading volume: 45,000 metric tons annually
• Average transaction size: $6.3 million
• Market concentration: Top 10 traders control 62% of market

Long-term Institutional Investors

Institutional investment profile:

Investor Type	Average Investment	Investment Duration
Pension Funds	$12.5 million	5-10 years
Sovereign Wealth Funds	$25 million	10-15 years
University Endowments	$7.8 million	3-7 years

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Cost Structure

Mining Equipment Acquisition and Maintenance

According to Avino's 2022 Annual Financial Report, total mining equipment costs were $4,237,000. Breakdown of equipment expenses:

Equipment Category	Annual Cost
Heavy Mining Machinery	$2,103,000
Maintenance and Repairs	$1,134,000
Equipment Depreciation	$1,000,000

Labor and Workforce Expenses

Total labor costs for 2022 fiscal year:

• Total workforce expenses: $8,456,000
• Direct mining labor: $5,234,000
• Administrative staff salaries: $2,122,000
• Employee benefits: $1,100,000

Exploration and Development Costs

Exploration expenditures for 2022:

Exploration Category	Expenditure
Geological Surveys	$1,345,000
Drilling Expenses	$2,456,000
Resource Estimation	$678,000

Environmental Compliance Investments

Environmental compliance costs for 2022:

• Total environmental compliance expenses: $3,200,000
• Waste management: $987,000
• Ecological restoration: $1,456,000
• Environmental monitoring: $757,000

Transportation and Logistics Expenses

Transportation and logistics cost breakdown:

Logistics Category	Annual Cost
Ore Transportation	$2,345,000
Equipment Shipping	$456,000
Fuel and Vehicle Maintenance	$789,000

Avino Silver & Gold Mines Ltd. (ASM) - Business Model: Revenue Streams

Silver Metal Sales

As of Q3 2023, Avino Silver & Gold Mines reported silver metal sales of 143,862 ounces. Average realized silver price was $23.45 per ounce, generating approximately $3,375,548 in silver revenue.

Metric	Value	Period
Silver Production	143,862 ounces	Q3 2023
Average Silver Price	$23.45/oz	Q3 2023
Total Silver Revenue	$3,375,548	Q3 2023

Gold Metal Sales

In Q3 2023, Avino produced 1,809 gold ounces with an average realized price of $1,932 per ounce, generating approximately $3,493,388 in gold revenue.

Metric	Value	Period
Gold Production	1,809 ounces	Q3 2023
Average Gold Price	$1,932/oz	Q3 2023
Total Gold Revenue	$3,493,388	Q3 2023

Mineral Concentrate Exports

Avino exports mineral concentrates from its Guadalupe and Diaz properties in Mexico. Export revenues for Q3 2023 totaled $4,612,736.

Precious Metal Trading

The company's precious metal trading activities generated additional revenue of $752,194 in Q3 2023.

Potential Metal Derivative Financial Instruments

• Hedging contracts value: $1,245,000
• Metal forward sales: $876,500
• Options trading revenue: $423,750

Total Revenue Streams Q3 2023: $14,355,616