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

Key Partnerships

Avino Silver & Gold Mines Ltd. recognizes the value of establishing strong relationships with key partners to support its operations and drive growth. The following are the key partnerships that play a crucial role in the business model of ASM:

• Joint ventures and strategic alliances with other mining companies allow ASM to share resources, knowledge, and technology to explore new opportunities and maximize production.
• Partnerships with local mining companies also help ASM navigate the regulatory environment and access valuable resources in different regions.

• Collaboration with mining equipment suppliers ensures ASM has access to the latest technology and equipment to maximize efficiency and productivity in its mining operations.
• Partnerships with suppliers also enable ASM to keep up with industry best practices and maintain a competitive edge in the market.

• Engaging with environmental and regulatory consultants helps ASM navigate complex regulatory requirements and ensure compliance with environmental standards.
• Consultants also provide valuable insight and expertise on sustainable mining practices, helping ASM minimize its environmental impact and maintain its social license to operate.

• Partnerships with logistics and transportation providers are essential for ASM to efficiently transport raw materials and finished products to and from its mining sites.
• Collaboration with providers helps ASM optimize its supply chain, reduce costs, and ensure timely delivery of goods, ultimately supporting the continuity of its operations.

Key Activities

Silver and gold mining operations: Avino Silver & Gold Mines Ltd. engages in the exploration, extraction, and production of silver and gold at its various mining properties. This includes underground and surface mining operations to extract the precious metals from the earth.

Exploration and development of mining projects: In addition to its current mining operations, Avino Silver & Gold Mines Ltd. is actively involved in exploring new mining projects and developing them into viable mining operations. This includes conducting geological surveys, drilling, and feasibility studies to assess the potential of new mining opportunities.

Ore processing: Once the ore is extracted from the mines, Avino Silver & Gold Mines Ltd. processes it to extract the silver and gold. This involves crushing the ore, grinding it into a fine powder, and then using various chemical processes to separate the precious metals from the ore.

Environmental management: Avino Silver & Gold Mines Ltd. is committed to conducting its mining operations in an environmentally responsible manner. This includes implementing proper waste management practices, reclamation of mined areas, and minimizing the impact of its operations on the surrounding ecosystem.

• Silver and gold mining operations
• Exploration and development of mining projects
• Ore processing
• Environmental management

Key Resources

Avino Silver & Gold Mines Ltd. (ASM) has several key resources that are crucial to its operations and success in the mining industry:

• Mining licenses and permits: ASM holds the necessary licenses and permits to operate its mining sites legally and in compliance with environmental regulations. These licenses allow the company to extract precious metals from its mineral reserves without facing any legal issues.
• Mineral reserves: ASM possesses a significant amount of mineral reserves containing silver, gold, copper, and other precious metals. These reserves serve as the primary source of revenue for the company, as they are extracted and processed to produce valuable commodities for sale in the market.
• Mining technology and machinery: ASM employs state-of-the-art mining technology and machinery to extract minerals from its reserves efficiently and effectively. This technology allows the company to maximize its production output while minimizing costs and reducing downtime.
• Trained workforce: ASM has a skilled and experienced workforce that is essential to its mining operations. From geologists and engineers to miners and operators, the company's employees play a critical role in ensuring the success and sustainability of its mining activities.

Value Propositions

Avino Silver & Gold Mines Ltd. prides itself on offering a range of value propositions that set us apart in the precious metals industry:

• Reliable supplier of silver and gold: At Avino, we prioritize consistency and reliability in our mining operations. Our customers can trust us to deliver high-quality silver and gold products on time, every time.
• Commitment to sustainable mining practices: We are dedicated to conducting our mining operations in an environmentally responsible manner. Avino ensures that our mining practices meet strict environmental standards, minimizing our impact on the surrounding ecosystems.
• High-quality and pure metal products: Avino is renowned for producing some of the highest-quality silver and gold products in the industry. Our metals are refined to the highest purity levels, ensuring that our customers receive only the best products.
• Long-standing industry expertise: With over 50 years of experience in the precious metals industry, Avino has built a reputation for excellence and reliability. Our team of experts brings a wealth of knowledge and expertise to every aspect of our operations, ensuring the highest standards of quality and professionalism.

Customer Relationships

Avino Silver & Gold Mines Ltd. (ASM) prioritizes building strong and lasting relationships with its customers to ensure satisfaction and loyalty. The company focuses on the following strategies to maintain positive customer relationships:

• Long-term contracts with buyers: ASM values the importance of establishing long-term partnerships with its customers. By entering into contracts with buyers, the company ensures a stable and consistent source of revenue while also demonstrating commitment to serving their needs.
• Customer support and consultancy: ASM provides excellent customer support and consultancy services to assist customers in navigating the complexities of the mining industry. Whether it's helping clients understand market trends or providing guidance on investment decisions, the company goes above and beyond to meet their needs.
• Transparency in operations and sourcing: ASM believes in transparency when it comes to its operations and sourcing practices. By being open and honest with customers about how their products are mined and processed, the company builds trust and credibility with its client base.
• Regular updates on market and industry insights: ASM keeps customers informed by providing regular updates on market trends and industry insights. By sharing valuable information, the company helps clients make informed decisions and stay ahead of the curve in a competitive market.

Channels

Direct sales to bullion banks and traders: Avino Silver & Gold Mines Ltd. has established strong relationships with bullion banks and traders to sell their precious metals directly to them. This channel ensures a steady stream of revenue and a reliable market for their products.

Contracts with jewelry manufacturers and industrial users: In addition to selling to bullion banks and traders, ASM also secures contracts with jewelry manufacturers and industrial users to further diversify their customer base. By supplying these industries with high-quality precious metals, ASM ensures a consistent demand for their products.

Online marketing for investor relations: ASM utilizes online marketing strategies to build and maintain relationships with investors. Through their website, social media platforms, and email campaigns, they provide regular updates on company performance, market trends, and industry news to keep investors informed and engaged.

Trade shows and industry conferences: ASM participates in trade shows and industry conferences to showcase their products, network with potential customers, and stay up-to-date on the latest developments in the precious metals market. These events provide valuable opportunities for ASM to generate leads, close sales, and build brand awareness within the industry.

Customer Segments

The customer segments of Avino Silver & Gold Mines Ltd. (ASM) can be broadly categorized into four main groups:

• This segment includes individuals, financial institutions, and investment funds that trade or invest in precious metals such as silver and gold.
• They are interested in ASM's production of high-quality silver and gold, as well as the potential for future growth and profitability.

• ASM supplies raw materials to jewelry manufacturers who use silver and gold in their products.
• These customers demand consistent quality and reliable supply from ASM to meet their manufacturing needs.

• Companies that use silver and gold for industrial purposes, such as in electronics, healthcare, and renewable energy technologies, are another key customer segment for ASM.
• These customers require a steady supply of silver and gold that meets their specific technical requirements.

• As ASM operates in the mining industry, it is important for the company to engage with stakeholders who are concerned about environmental and social sustainability.
• These stakeholders include local communities, non-governmental organizations, and government agencies that advocate for responsible mining practices.

Cost Structure

Avino Silver & Gold Mines Ltd. (ASM) operates in the mining industry, where various costs are incurred to extract precious metals like silver and gold. The cost structure of ASM includes the following key components:

• Mining and processing costs: ASM incurs significant costs related to mining and processing activities. This includes expenses for equipment, fuel, maintenance, and supplies needed to extract and process silver and gold ores. The company also invests in technology and innovation to improve efficiency and reduce costs in mining and processing operations.
• Labor and employee benefits: ASM employs a skilled workforce to operate its mines and facilities. Labor costs include wages, salaries, benefits, and training programs to ensure the safety and productivity of employees. The company also provides competitive compensation packages to attract and retain top talent in the mining industry.
• Environmental compliance and management expenses: ASM is committed to environmental stewardship and sustainability. The company invests in compliance with regulations and best practices to minimize the impact of its mining activities on the environment. Environmental expenses include monitoring, remediation, and restoration efforts to protect air, water, and land resources in the areas where ASM operates.
• Exploration and development expenses: ASM invests in exploration and development activities to identify new mineral reserves and expand its mining operations. Exploration costs include geological surveys, drilling, and sampling to evaluate the potential of mineral deposits. Development expenses cover the construction of infrastructure, such as roads, tunnels, and processing plants, to support future mining projects.

Revenue Streams

Sale of extracted silver and gold: Avino Silver & Gold Mines Ltd. generates a significant portion of its revenue through the sale of extracted silver and gold. These precious metals are extracted from the company's mining operations and sold to customers in various industries, including jewelry, electronics, and investment.

Long-term contracts for metal supply: The company also secures long-term contracts with key customers for the supply of silver and gold. These contracts provide a stable source of revenue and help minimize the impact of fluctuations in metal prices on the company's financial performance.

Joint ventures and partnerships in mining projects: Avino Silver & Gold Mines Ltd. actively seeks opportunities to enter into joint ventures and partnerships with other mining companies to explore and develop new mining projects. Through these collaborations, the company is able to leverage its expertise and resources to maximize the value of its mining assets.

Licensing of mining technology and expertise: In addition to its traditional mining operations, Avino Silver & Gold Mines Ltd. also generates revenue by licensing its mining technology and expertise to other companies in the industry. This allows the company to diversify its revenue streams and generate additional income from its intellectual property.

• Sale of extracted silver and gold
• Long-term contracts for metal supply
• Joint ventures and partnerships in mining projects
• Licensing of mining technology and expertise