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Avino Silver & Gold Mines Announces Normal Course Issuer Bid

Author:
FAQSIR News Desk
Last Updated:
Reading Time
2 min

#Overview of the NCIB

Avino Silver & Gold Mines Ltd. has announced its intention to implement a Normal Course Issuer Bid (NCIB) approved by the Toronto Stock Exchange (TSX). This plan allows the company to repurchase up to 8,428,566 common shares, which accounts for approximately 5% of its total outstanding shares as of the end of March 2026.

#Strategic Intent

President and CEO David Wolfin emphasized that this initiative arises from Avino's significant share price increase over the past nine months. The company aims to leverage this opportunity to enhance shareholder value, particularly if the market does not adequately reflect its underlying value and growth potential.

#Details of the Repurchase Program

The repurchase program is set to begin on April 8, 2026, and will continue for one year, ending on April 7, 2027, or until the maximum share limit is reached. Transactions will be conducted on the TSX, NYSE American, and permitted alternative trading platforms, utilizing prevailing market prices.

All repurchased shares will be cancelled post-acquisition, thereby potentially increasing earnings per share and overall shareholder value. The maximum number of shares purchasable daily on the TSX is capped at 248,266 shares, reflecting regulatory limits based on the average trading volume.

#Financial Capacity and Considerations

Avino is positioned strongly to support this initiative, with expectations of generating sufficient free cash flow in 2026 to facilitate the stock buybacks. This aligns with the company's broader capital allocation strategy designed to benefit shareholders while ensuring financial stability.

#Automatic Share Purchase Plan

To streamline the execution of the repurchase, Avino has implemented an Automatic Share Purchase Plan (ASPP), which allows for share purchases even during regulatory blackouts. This plan will help maintain active repurchase efforts without violating trading regulations.

#Conclusion

Avino's decision to initiate a Normal Course Issuer Bid reflects strategic planning aimed at optimizing shareholder value and capital management amid a favorable market backdrop for silver producers. The move signifies a robust commitment to enhancing long-term shareholder returns.

#Key Takeaways

  • Avino Silver & Gold Mines is set to repurchase up to 8.4 million common shares via a Normal Course Issuer Bid.
  • This initiative aims to increase shareholder value amidst significant recent share price gains.
  • The program, starting April 8, 2026, will run for one year or until the maximum share limit is achieved.
  • All repurchased shares will be cancelled, potentially enhancing earnings per share.
  • An Automatic Share Purchase Plan will facilitate purchases even during blackout periods.

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Frequently Asked Questions

An NCIB allows a company to repurchase its own shares from the market. Avino is implementing this strategy to potentially enhance shareholder value, especially if the share price is perceived to undervalue the company’s long-term prospects.
Avino intends to repurchase up to 8,428,566 common shares, equating to approximately 5% of its outstanding shares, which indicates a commitment to shareholder value amid significant recent share price appreciation.
Avino has expressed confidence in generating sufficient free cash flow in 2026 to fund the buybacks, highlighting a solid financial foundation that can bolster shareholder returns.
All shares repurchased under the NCIB will be cancelled, which can potentially lead to increased earnings per share and enhance overall shareholder value.
Avino has established an Automatic Share Purchase Plan (ASPP), allowing purchases to continue even during regulatory blackouts, which efficiently optimises share repurchases.
The share repurchase programme is viewed as a strategic tool to bolster shareholder value, particularly if the market price does not reflect the underlying value of the company, thus enhancing long-term investment attractiveness.
The company's shares have appreciated significantly over the past nine months, indicating positive market sentiment and potentially strong fundamentals.
Being ranked in the TSX30 reflects Avino's strong performance and growth potential, further enhancing its appeal to investors as a robust player in the silver and gold mining sector.