Amazing with this company is that there's a very clear path to huge production growth, and they have already seen quite a lot of growth. It's the best is probably coming in the not-too-distant future.
Thanks, Claude. Welcome, everybody. I'm David Wolfin, President and CEO of Avino Silver & Gold Mines. The company was incorporated in 1968 by my father, who was a successful stockbroker and mining financier. I grew up in the industry. I worked at the mine. We built this mine in 1974 and ran it for 27 years until the first tech bubble in 2001, when gold went below $300 and silver went below $4. We closed the mine. Avino Canada owned 49% up until that point. I approached the board of directors and I said, "We should buy the other half of the mine," because NAFTA was in place. I was appointed president and negotiated and successfully purchased the other half of the mine in 2006, reassembled the team, brought back our senior geologist, who incidentally worked for the previous company's lead independent director, Eduardo Luna.
He made a big discovery at the San Dimas Mine, and they sent him to Colorado School of Mines to get his degree. That's who's running our operation. I better start going through the slides. A clear path to transformational growth. It's clear because we are going to grow organically. We own the assets that are going to drive our growth. Here you can see, located in the heart of Mexico, in the state of Durango, it's in a mining-friendly jurisdiction. The project portfolio is made up of three assets: the producing Avino mine, that's going to produce between 2.5 million-2.8 million ounces of silver equivalent this year; La Preciosa, which is 19 kilometers away, that's our second asset. We announced we got the permit in Q1.
We did our initial blast in April, and we're already hauling ore to our processing plant 19 km away. Within six months, you're going to see in Q4, it's going to improve our revenue. The third asset is the oxide tailings. This is leftover waste from when we opened Pitt Pine in the 1970s and 1980s. We've done a pre-feasibility study on reprocessing the oxide tailings, and we've got proven and probable reserves there. We've got a large silver equivalent resource base, close to 377 million ounces of silver equivalent. 277 million is measured and indicated. 94 million is inferred. We're working on a brand new reserve estimate that's going to come out in Q1. We expect these numbers to go up because we have three drills turning there. 60% of that is pure silver. Here's our growth plan.
We put this together prior to the rally when we did not have a lot of money. Now we are cash flow positive with over $60 million in the bank and debt-free. It is a good growth story. We are putting together a plan to improve this and even look bigger. Here you can see the dark blue represents the producing Avino mine. The light blue is La Preciosa, and the lightest blue is oxide tailings. We want to get up to intermediate status, which is between 8-12 million ounces per year. This year, 49% of our revenue will come from silver, 19% from gold, and 31% from copper. Next year, it is going to go up because of La Preciosa. La Preciosa is a pure silver vein with 90% silver and 10% gold. It is going to make a big impact on our silver revenue.
There's not too many companies that exist that have that amount of revenue from silver. This is a base case. The La Preciosa grade that I'll show you coming up was given to us by Kuhr. They were planning a giant open pit mine, so it's a diluted grade. They had a 20-1 strip ratio. We are going to go in and strategically mine that undiluted or less diluted. The grade we expect to be even higher than this base case. Key financials for Q3. We generated $21 million in revenue. Gross profit, $10 million. This is all U.S. dollars. 47% gross margin. Net income, $0.05 a share. Free cash flow we generated of $5 million. This is a quarter that was below the previous quarters because of mine sequencing. We were mining in a lower grade area.
Q4 is already looking better than this. Cash costs and all-in sustaining, $17 and $24.06 is the AISC. The average for the year is less than that. $57.3 million in cash, $51 million in working capital. The cash as of today is above $60 million. You can see all the positive metrics. I do not have time to go through all that, but you can see it on our website. Cash cost per ounce, as I mentioned earlier, $17.09, but year to date, $14.95. It shows that Q3 was an anomaly and the previous quarters were lower. You can see the AISC all-in sustaining for the year, $21.64. That is more in line with what we expect for the full year. Cost per ton. This is what we are quite proud of. We have got a unique geological system there.
It's a stockwork system, which is 50 meters wide and 600 meters a strike. We're mechanized mining. It's called long hole sublevel caving. This is giving us under $100 per ton cost AISC. Moving on. Here, we got included in the TSX 30, the special distinction for the top performing 30 companies on the TSX. We were ranked fifth. Our stock has gone up 610%, and the market cap has gone up by 778% using a three-year trailing average. We've been included in every silver ETF. We have a very liquid stock. We're trading over $30 million worth of stock daily. The Avino mine, we've improved the throughput and increased by 36%. When we went in to examine the core from Kuhr Mining at La Preciosa, a lot of the intercepts were gone because they did so many studies.
We put a drill rig out there to verify the results and see if it's above the 200 grams. What did we hit? 8 meters of 1,628 grams of pure silver. Within there, there was 15 kilograms of silver. We're showing the market it's going to be above our base case. AI, so verify who's the sponsor of this conference. They're putting together all our data for 50 years. It's all going into a computerized system. They're preparing targets that are going to go in our budget for next year, and they're going to prioritize them from brownfields to greenfields. Here you can see La Preciosa. It's 20 kilometers away. We're in the high desert, 2,200 meters high. It's safe. You can see it's in rolling farmland. It's not in a remote area. We don't have any issues with cartels.
We do not produce silver bars on site. We produce a concentrate that goes to the shipping port of Manzanillo and is sold to Samsung. It goes in their electronics. We are an exclusive supplier to Samsung. They gave us 10 years ago at this conference. We met, and they gave us a $10 million off-take agreement, and we expanded our mill by 1,000 tons per day. We have since paid that off, and we sell them our concentrate with no discount. It is at spot pricing. We built a 20-kilometer dedicated power line capable of 7 megawatts. We have got excess capacity for when we go to build out our third asset. High water supply. We built a dry-stack tailings facility. We were not mandated. We are using best practices. We want to look after the community in which we operate in. We have this special distinction of 100% Mexican labor force.
Mexico is one of the best places to operate on this earth because you can get all the skills you need in one country. Makes it cheaper. Here you can see 1,500 drill holes, 500,000 meters drilled on La Preciosa, $90 million spent by Pan American Silver, Kuhr Mining, and Orco and Lewisman. You can see it's been pin-cushioned. It's all red, between 150 and 500 grams of pure silver. It's all ore grade. Here you can see hot zones above 500 grams. The tonnage, 17.4 million metric tons of M&I, 4 million tons of inferred. You can see the 200-gram grade, which we're showing that we're going to be able to beat through our drill program. How we're mining it is a trackless decline ramp, 4 meter by 4 meters.
Rubber tire trucks can go in there and long hole mine it, mechanized mine it. The deeper Barther vein is going to be room and pillar, and then we're going to build a paste backfill plant. Here you can see more drilling we've done at La Preciosa, 5 meters of 800 grams silver, half a gram gold. It is way higher than the 200 grams that we show in the resource estimate. More intercepts you can see are higher. That is a 3D model. Brand new equipment because we operate a mine 19 kilometers away. We have credit facilities with Caterpillar and Sandvik. From day one at La Preciosa, we had this million EUR piece of equipment there, and it is working very well. You can see Caterpillar equipment as well. Here you can see the first blast in April.
Within six months, we're pulling ore out already and delivering it to our mill. We started processing material on October 15th. It's going to have a contribution in Q4. The third asset, the oxide tailings, you can see the years of the progress. It took a while to be able to do the feasibility study because it was an active tailings dam. When we decommissioned it, it dried out. We drilled it. We did a pre-feasibility study. Here you can see using $23.45 silver and $1,840 gold, it gave a post-tax NPV of $61 million with a 5% discount. At spot pricing, it's $250 million NPV. You can look here, the AISC, $10. It's going to combine the AISC from all three operations to take us to the mid-teens from the low 20s.
Global resource, 53.1 million metric tons of M&I, 23.8 million metric tons of inferred. Our mill can do 750,000 tons on an annual basis. This represents 100 years of mine life. We are looking at future expansions now. What to expect? Updates on La Preciosa and drill results before the end of the year. In Q1, we're coming out with a maiden reserve calculation. Because we didn't do a feasibility study, the only other way to publish reserves is you have to have three years of $30 million in revenue under 4311 guidelines. We reached that milestone. We're coming out with reserves in Q1. ESR, we received this designation for three years in a row. It's awarded by an independent board of philanthropists. Research coverage. We've hit all their targets this year, and they've all been revised upwards.
The highest one is $750 U.S. and market cap. So $700 million U.S., about CAD 1 billion. You can see the 52-week range. We're a liquid stock. We trade 600,000-700,000 shares a day on Toronto, 5 million-6 million shares a day on New York. 75% retail- owned, 20% institutional and growing. It's gone from about 10% earlier this year to 20% and 5% management. I put my money where my mouth is. I'm the largest shareholder of the company outside of the ETF. And so wrapping it up, you know we're a pure silver producer and explorer with a growth strategy that's clear. It's not opaque. We're not going to do M&A. We're going to grow organically. And so it's a five-year plan. And so we're running out of time here. So I think I should wrap it up pretty quick.
Cash on hand, longevity, and lots of silver ounces in the ground.
Great. Congratulations for being in the top 30 and just keep it up. Thank you, David. Thank you very much. To the podium, Ross McElroy, CEO of Apollo Silver. Let's see if they can do what Mag Silver was not able to do, which is getting a permit for this wonderful property, which is Cinco de Mayo. They also have this huge thing in California, the Calico project.
Wonderful. Thank you, Claude. Good afternoon, everybody. Hang on. How do we advance? Yeah. Green. Yeah. It's not okay there. Just takes a little time. Apollo Silver is a relative newcomer to the business. The company was formed back in 2021. We've been in this game for about four years. The first purchase, the first acquisition for the company was Calico.
That's our California project. I'll get into it and discuss. There are now two projects in the portfolio, one in California, one in Mexico. You've already heard the quick introduction on each of them. Just to let you know, we're obviously very bullish on the silver sectors. I think everybody in this room probably is. We've seen a 70% increase in the price of silver through this calendar year since January 1. Of course, we've been benefactors as companies that were up somewhere like about 200%-250% so far this year alone. We have excellent, I guess you'd call them advanced exploration projects, both with the potential to add significant new resources. We'll begin in California on doing economic studies on the Calico project, really working on getting community relations in Cinco de Mayo in Mexico. Here's a map showing where the two projects exist.
The Calico project, Southern California, halfway between Los Angeles and Las Vegas. We've just recently completed a mineral resource estimate with 125 million ounces of silver measured and indicated and an additional 58 million ounces in inferred category. The plan forward at Calico is to begin economic studies. A PEA will be kicking that off in early 2026. I'd say by mid-2026, we should have completion of the PEA going forward. We do believe that Calico is in a jurisdiction that does encourage mining. The people behind the story, I think you yes, we are a new company, but collectively, with the key management and founders of the company, we've put together over $2 billion worth of deals that have been sold. Exits, if you look at anywhere from $400 million-$500 million to over $1 billion in companies that we built in the past.
We do have a good, strong track record. There is always a delay in this. This just shows a little bit of the corporate structure. We currently have about 56 million shares outstanding. We recently completed a five-for-one consolidation. We did a financing now, so around $32 million in the treasury. We are well positioned to be able to carry on our activities over the next at least 24 months going forward. You see the high-quality shareholders in the company. Insiders own about 15% of the company. Institutions own around 25%, and the rest is retail held. At an EV value, you can see we are very, very undervalued. I mean, everybody talks about their companies, and they say they are undervalued. We absolutely feel that we are.
If you look at our peers in the business, most people are trading around $1.50-$2 per ounce in silver. Apollo Silver is sitting at around $0.40-$0.50 an ounce per silver. What that probably is reflective of is that our Cinco de Mayo project in Mexico does not yet show up in the market capitalization of the company. We will get into a little bit of an update and where we think we are going to aim at that. We should be in a position to significantly move ourselves a little further to the right on that chart. The next time we give a presentation by mid-year, we hope to be in a substantially better position. Calico is in San Bernardino County in California. There are other major players in there.
This is a mining-friendly jurisdiction, an oasis essentially in California as far as mining projects go. MP Materials operates the very large rare earth operation there nearby. We also have Equinox Gold that are operating as well. You are in a district that does encourage development. This is a district where we feel we can permit the project, move it forward. Calico itself has 183 million ounces of silver in all categories. That makes it the second largest primary silver deposit in the United States. It is a very large-scale project. As I said, what we'll be beginning in 2026, we're on the pathway for economic studies, initiating our PEA likely in January 2026. It is just a geologic map showing you what the deposit looks like. It is near surface, very large tonnage, low grade. It will be a bulk tonnage, open pit mining operation.
Silver throughout, a little bit of zonation with barite near the top of the zone, zinc down at the bottom, and gold also associated near the lower formation. Gold, by the way, is a resource that we feel we can continue to grow at Calico. This is the Langtree deposit. It's one parallel on National and on trend of the fault zone. This is the one with 58 million ounces of silver inferred. Part of the process going forward at Langtree is to continue to infill, drill, and get a better understanding as well so we can move it up to indicated and measured and into economic studies as well. Just having a quick look at Mexico. This is the Cinco de Mayo project. You are in a very prolific belt that hosts a number of world-class CRDs, carbonate replacement deposits along there.
We're up near the top. You can see in N orthern Chihuahua. This is an option agreement that we got from Mag Silver back in about a year ago. Mag had made some substantial new discoveries and did all their early work in about 2006, 2007. After about five years of drilling there, basically relationships with the local community, the Ejido, who are essentially the indigenous farmers that operate the surface title above the deposit. Them and Mag went off in different directions. They essentially forced Mag off the property, and there hasn't been any work done on the ground for the last 12 years. They did impose a 100-year access ban to the project. After several years of trying to right that ship, Mag basically were looking for other opportunities. They saw what Apollo was all about.
There's a great track record within the company on being able to solve community issues in Mexico. They have bet that we'll be able to carry this forward and build new relationships with the Ejido. It's a tremendous-looking asset. It looks to be quite large. It's on the scale of one of the better ones in this very prolific belt of high-grade silver and zinc. Sorry. Going on to the next slide. The option agreement for Cinco de Mayo basically calls for us to get social license on the ground, be able to go forward with a long-term life of project access agreement. We're looking to sign a sort of 30-year, 35-year access agreement with the local Ejido, drill 20,000 meters, and then issue Pan American now, because they bought Mag Silver, a 19.9% equity stake in the company.
There's lots of reasons for us to be optimistic that we'll get an agreement with the local Ejido. What we started doing earlier this year was putting out feelers down to the community, let them know that we're a new company in the area. We want to do business. They contacted us and asked for a face-to-face interview with management. I went down to meet with them in early September, a couple of months ago. Two days of sitting around across the table from each other. They know what this project is all about. We have some idea what it's all about. We basically come to an agreement on what we think are the terms.
What the Ajito will do or the executive will go back to the community looking to establish, get a vote from all the community members that would lift the mining ban in the region and allow us to get back on the ground and access there. We are optimistic that something can happen within the fairly near future. If it does, if we do get an access agreement in place, we will be on the ground running in early 2026. It will be working towards completing the 20,000-meter drill option. Of course, sometime before the end of the calendar year, we would be issuing Pan American now about a 19.9% equity stake in the company. This is a schematic of what these CRD deposits look like. It is one of the reasons that we feel really optimistic about what we have down at Cinco de Mayo.
This is a schematic out of the textbook of Peter Megaw, what CRDs look like. You can see we already have a historic resource in the upper manto zone. The last hole that Mag drilled before operation ceased in 2012, this is look on the right-hand side of this diagram. That's the Pegaso zone. Pegaso was an incredible intersection over about 100 meters of core width. It had multiple intervals of ore-grade material, the largest being a continuous 61.3-meter intersection of essentially ore-grade material outside of the overall historic resource. It's probably a feeder system in the chimneys of what these CRDs look like. Likely we can grow, we feel that you have somewhere like about a 3x growth potential on the deposit itself. On the left-hand side, the reason I show this more mature, the Santa Eulalia West Camp CRD deposit.
They're very similar in strike length, similar in depth. You can see that over the period of time at Santa Eulalia, you've been able to outline 47 million tons at even a lesser grade than what we see at Cinco de Mayo. We are looking at something in the order of 3.5 kilometers of strike length, certainly at least a 1,000-meter depth potential at Cinco. Can we get to 47 million tons? That would be about a three or four X to the resources presently defined. Of course, we can't do anything until we have the community agreement in place. As I say, we're optimistic that NERDI 26 will be able to establish that, get on the ground, start drilling and developing down at Cinco de Mayo in Mexico.
I think with that, I'm looking at pretty close, trying to stay on time here. We're all right globally?
You did a very good job. Is there a quick question? Both. Fine. Well done. Thank you very much. Now here comes the legend in the industry. Here comes Quinton Henning. He's a geologist for Crescat. Crescat has five of the top 10 hedge funds this year with a performance for their macro hedge fund of 122%. They're not doing as well on the gold side. Their precious metal fund is only up 120%. Of course, this is in large part due to Quinton Henning, who is a serial 10-bagger producer. As he usually says, "Go big or go home." He is now CEO of San Cristóbal. That's big.
All right. I realize the time is limited in these presentations.
I just ramp up how fast I talk, so get ready. Okay. We do have a pretty lengthy disclosure here. If people are interested, you can approach our IR and talk about getting this deck. I don't expect you to read all this, right? Let's see. Let's move.