NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, Aug. 15, 2016 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX-V,
ASM: NYSE–MKT, GV6: FSE, "Avino" or "the Company") is pleased
to announce the consolidated financial results for the Company's
second quarter ended June 30,
2016. The financial statements and the management discussion
and analysis can be viewed on the Company's web site at
www.avino.com, on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
SECOND QUARTER 2016 HIGHLIGHTS
- Declared Commercial Production at the Avino Mine
- Generated revenues of $11.9
million from the sale concentrates, a 102% increase from the
second quarter of 2015
- Mine operating income amounted to $3.2
million, a 36% increase compared to the second quarter of
2015
- Total equity reached $58.8
million, a 20% increase compared to the second quarter of
2015
- Net income (loss) after taxes amounted to $(450,087)
- Produced 629,780 silver equivalent ounces, including 380,620
ounces of silver, 1,509 ounces of gold and 1,054,935 pounds of
copper
- Consolidated all-in sustaining cost ("AISC")2 was
$14.51 (US$11.27) per payable silver equivalent ounce, a
247% increase compared to $11.72 or
(US$9.53) per ounce in the second
quarter of 2015
- Average realized selling prices for silver and gold were
US$16.99 and US$1,262 per ounce respectively
- Cash and cash equivalents of $10.7
million were on hand at the end of the quarter
"Clearly the highlight of the Company's second quarter was
declaring commercial production at the Avino Mine, our second and
largest mining operation," said David
Wolfin, Avino's President and CEO. "This achievement marks
years of determined effort by our entire team, both in Mexico and Canada, for which I am grateful. The Company
is significantly more valuable as a result.
"The real work, however, has just begun. We continue to lay the
foundation for expansion, higher output and improvements in
efficiency going forward. The quarter's declines in production and
income, combined with higher costs, represent short-term
adjustments due primarily to maintenance and working through
lower-grade material in Mexico
while advancing operations at our Bralorne Mine in British Columbia. As we continue to fine-tune
our operations in this improving metals market, I believe
shareholders can look forward to stronger results going
forward."
- David Wolfin, President, CEO
& Director
OVERALL PERFORMACE AND HIGHLIGHTS
|
|
|
|
HIGHLIGHTS
|
Second
Quarter
2016
|
Second
Quarter
2015
|
Change
|
Operating
|
|
Tonnes
Milled
|
131,612
|
135,767
|
-3%
|
Silver Ounces
Produced
|
380,620
|
451,505
|
-16%
|
Gold Ounces
Produced
|
1,509
|
1,891
|
-20%
|
Copper Pounds
Produced
|
1,054,935
|
1,256,164
|
-16%
|
Silver Equivalent
Ounces1 Produced
|
629,780
|
819,299
|
-23%
|
Concentrate Sales
and Cash Costs
|
|
Silver Equivalent
Ounces Sold2
|
626,837
|
345,300
|
82%
|
Cash Cost per Silver
Equivalent Ounce2,3
|
$
|
12.75
|
$
|
8.67
|
47%
|
Cash Cost per Silver
Equivalent Ounce2,3 ($US)
|
US$
|
9.89
|
US$
|
7.05
|
40%
|
All-in Sustaining
Cost per Silver Equivalent Ounce2,3
|
$
|
14.51
|
$
|
11.72
|
24%
|
All-in Sustaining
Cost per Silver Eq. Ounce2,3 ($US)
|
US$
|
11.27
|
US$
|
9.53
|
18%
|
Average Realized
Silver Price per Ounce ($US)
|
US$
|
16.99
|
US$
|
16.10
|
6%
|
Average Realized Gold
Price per Ounce ($US)
|
US$
|
1,262
|
US$
|
1,179
|
7%
|
Average Realized
Copper Price per Tonne ($US)
|
US$
|
4,706
|
-
|
-%
|
Financial
|
|
Revenues
|
$
|
11,918,749
|
$
|
5,908,883
|
102%
|
Mine Operating
Income
|
$
|
3,218,632
|
$
|
2,372,903
|
36%
|
Net Income
(Loss)
|
$
|
(450,087)
|
$
|
361,655
|
-224%
|
Cash
|
$
|
10,665,086
|
$
|
3,256,186
|
228%
|
Working Capital
(Deficiency)
|
$
|
19,429,748
|
$
|
(964,211)
|
2,115%
|
Shareholders
|
|
Earnings (Loss) per
Share ("EPS") – Basic
|
$
|
(0.01)
|
$
|
0.01
|
-100%
|
Cash Flow per
Share3
|
$
|
0.05
|
$
|
0.02
|
150%
|
All figures in
Canadian dollars unless other wise indicated
|
1. Metal
production is expressed in terms of silver equivalent ounces, (oz
Ag Eq), the formula for which depends on the copper, gold and
silver metal prices used in each period and hence are only
indicative.
|
|
2. "Silver
equivalent ounces sold" for the purposes of cash costs and all-in
sustaining costs consists of the sum of silver ounces, gold ounces
and copper tonnes sold multiplied by the ratio of the average spot
gold and copper prices to the average spot silver price for the
corresponding period.
|
|
3. The Company
reports non-IFRS measures which include cash cost per silver
equivalent ounce, all-in sustaining cash cost per ounce, and cash
flow per share. These measures are widely used in the mining
industry as a benchmark for performance, but do not have a
standardized meaning and the calculation methods may differ from
methods used by other companies with similar reported
measures.
|
Financial Results
The Company generated revenues of $11.9
million during the second quarter of 2016; a 102% increase
compared to the second quarter of 2015. The increase is a result of
commercial production being declared at the Avino Mine.
Mine operating income was $3.2
million during the second quarter of 2016, an increase of
$846 thousand or 36% from
$2.4 million in 2015. During the
second quarter of of 2016, net income decreased by $812 thousand to $(450,087) or $(0.01) per share, compared to net income of
$362 thousand or $0.01 basic and diluted per share during the
corresponding period of 2015.
Operational Results
Silver equivalent production for the second quarter of 2016
decreased 23% to 629,780 oz1 compared to 819,299 oz in
the second quarter of 2015. Silver production for the second
quarter of 2016 decreased 16% to 380,620 oz compared the second
quarter of 2015. Gold production for the second quarter of 2016
decreased by 20% to 1,509 oz compared to 1,891 oz in the
corresponding period of 2015. Copper production decreased by 16% to
1,054,935 lbs compared to 1,256,164 lbs in the second quarter of
2015. Total mill feed processed during the second quarter of 2016
was 131,612 dry tonnes compared to 135,767 dry tonnes during the
second quarter of 2015, a decrease of 3%.
At the Avino Mine, silver equivalent ounces1 produced
during the second quarter totalled 341,521 compared to 458,324
during the second quarter of 2015, a decrease of 25%. The
production decrease can be attributed to required maintenance on
the Mill Circuit 3 ball mill, as well as variability in the
resource block. All-in sustaining cash costs during the second
quarter of 2016 were $14.66 per AgEq
ounce1
At the San Gonzalo Mine, silver equivalent ounces1
produced during the second quarter of 2016 totalled 288,259
representing a decrease of 20% compared to the second quarter of
2015. All-in sustaining cash costs during the second quarter of
2016 were $14.23 per AgEq
ounce1 compared to $11.72
during the second quarter of 2015, an increase of 21%. The decrease
in production and increase in costs can be attributed to lower
grade development material from the San Gonzalo stockpile being
processed using Mill Circuit 2.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq
ounce1 during the second quarter of 2016 were
$14.51 compared to $11.72 during the corresponding period of 2015,
an increase of 24%.
Capital expenditures during the six months ended June 30, 2016, net of concentrate proceeds of
$5,994,516, were $3,351,908 compared to $2,410,734 during the six months ended
June 30, 2015.
Capital expenditures relate to the Avino mine advancement and
mining and production equipment to advance operations at the San
Gonzalo, Avino, and Bralorne mines.
Bralorne Mine Update
During the second quarter of 2016, the Company continued to
develop a strategic operating plan for profitable production at
Bralorne. The mine plan includes changing the mining method to long
hole mining, which is considered safer and less labour intensive
than previous trial methods employed and would support production
levels of up to 300 tpd. New mining equipment is being acquired to
replace older equipment and to further mechanize for long hole
mining. The first work to be carried out underground will be to
test the long hole mining method. Engineering is in progress to
expand the mill from 100 tpd to 300 tpd. Engineering is also being
carried out to upgrade the surface infrastructure for a 300 tpd
operation. Expansion work for the mill and infrastructure is
expected to start in the latter part of 2016.
The tailings impoundment for the Tailings Storage Facility
("TSF") was raised in October 2015,
and additional buttress work is currently being carried out on the
impoundment with completion scheduled for the third quarter of
2016. The Interim Mine Closure Plan ("IMCP") and review process is
also expected to be completed by the third quarter of 2016. The
work on the TSF, the IMCP and the strategic operating plan is
contributing to the Company's goal of obtaining the permits to
resume processing and mining activities from British Columbia's Ministry of Energy &
Mines and Ministry of Environment.
Non-IFRS Measures
The financial results in this news release include references to
cash flow per share, cash cost per silver equivalent ounce, and
all-in sustaining cash cost per silver equivalent ounce, each of
which are non-IFRS measures. Cash flow per share, cash cost per
ounce, and all-in sustaining cash cost per ounce are measures
developed by mining companies in an effort to provide a comparable
standard of performance. However, there can be no assurance that
our reporting of these non-IFRS measures is similar to that
reported by other mining companies. Cash flow per share, cash cost
per silver equivalent ounce, and all-in sustaining cash cost per
silver equivalent ounce are measures used by the Company to manage
and evaluate operating performance of the Company's mining
operations, and are widely reported in the silver and gold mining
industry as benchmarks for performance, but do not have
standardized meanings prescribed by IFRS, and are disclosed in
addition to the prescribed IFRS measures provided in the Company's
financial statements and MD&A.
Conference Call
Avino will be holding a conference call on August 16, 2016 at 8 am
PST (11 am EST).
To participate in the conference call, please dial the
following:
Toll Free Canada & USA:
1-800-319-4610
Outside of Canada &
USA: 1-604-638-5340
No pass-code is necessary to participate in the conference call;
participants will have the opportunity to ask questions during the
Q&A portion of the call.
Participants should dial in 10 minutes prior to the
conference.
The conference call will be recorded and the replay will be
available on the Company's web site within one hour following the
conclusion of the call.
Qualified Person(s)
Avino's Mexican projects are under the supervision of Mr.
Chris Sampson, P.Eng, BSc, Avino
consultant and Mr. Jasman Yee,
P.Eng, Avino director; Avino's Bralorne Mine project is under the
supervision of Fred Sveinson, B.A.,
BSc, P.Eng, Avino Senior Mining Advisor. These individuals are
qualified persons ("QP") within the context of National Instrument
43-101. The respective QP's have reviewed and approved all the
applicable technical data in this press release.
Outlook
Avino's mission is to create shareholder value through
profitable organic growth at the Avino Property and the strategic
acquisition and advancement of mineral exploration and mining
properties. We are committed to expanding our operations and
managing all business activities in an environmentally responsible
and cost-effective manner while contributing to the well-being of
the communities in which we operate.
Management remains focused on the following key objectives:
- Maintain and improve profitable mining operations while
managing operating costs and achieving efficiencies;
- Advance the Bralorne project towards profitable
production;
- Explore regional targets on the Avino Property followed by
other properties in our portfolio;
- Assess the potential for processing the oxide tailings resource
from previous milling operations (PEA issued in 2012); and
- Identify and evaluate potential projects for acquisition.
ON BEHALF OF THE BOARD
"David
Wolfin"
________________________________
David Wolfin
President & CEO
Avino Silver & Gold Mines
Ltd.
Safe Harbor Statement - This news release contains
"forward-looking information" and "forward-looking statements"
(together, the "forward-looking statements") within the meaning of
applicable securities laws and the United States Private Securities
Litigation Reform Act of 1995, including our belief as to the
extent and timing of various studies including the PEA, and
exploration results, the potential tonnage, grades and content of
deposits, and timing, establishment, and extent of resource
estimates. These forward-looking statements are made as of the date
of this news release and the dates of technical reports, as
applicable. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
future circumstances, outcomes or results anticipated in or implied
by such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur. While we have based these
forward-looking statements on our expectations about future events
as at the date that such statements were prepared, the statements
are not a guarantee that such future events will occur and are
subject to risks, uncertainties, assumptions and other factors
which could cause events or outcomes to differ materially from
those expressed or implied by such forward-looking
statements.
Such factors and assumptions include, among others, the
effects of general economic conditions, the price of gold, silver
and copper, changing foreign exchange rates and actions by
government authorities, uncertainties associated with legal
proceedings and negotiations and misjudgments in the course of
preparing forward-looking information. In addition, there are known
and unknown risk factors which could cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with project development; the need for additional
financing; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters;
uncertainties and risks related to carrying on business in foreign
countries; environmental liability claims and insurance; reliance
on key personnel; the potential for conflicts of interest among
certain of our officers, directors or promoters with certain other
projects; the absence of dividends; currency fluctuations;
competition; dilution; the volatility of our common share price and
volume; tax consequences to U.S. investors; and other risks and
uncertainties. Although we have attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. We are under no obligation to update or alter any
forward-looking statements except as required under applicable
securities laws.
Cautionary Note to United States Investors - The information
contained herein and incorporated by reference herein has been
prepared in accordance with the requirements of Canadian securities
laws, which differ from the requirements of United States securities laws. In particular,
the term "resource" does not equate to the term "reserve". The
Securities Exchange Commission's (the "SEC") disclosure standards
normally do not permit the inclusion of information concerning
"measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute
"reserves" by SEC standards, unless such information is required to
be disclosed by the law of the Company's jurisdiction of
incorporation or of a jurisdiction in which its securities are
traded. U.S. investors should also understand that "inferred
mineral resources" have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility. Disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
1. Metal Production is expressed in terms of silver
equivalent ounces, (oz Ag Eq.), the formula for which depends on
the gold and silver metal prices used in each year and hence are
only indicative.
2. The Company reports non-IFRS measures which include cash
cost per silver equivalent ounce, all-in sustaining cash cost per
ounce, and cash flow per share. These measures are widely used in
the mining industry as a benchmark for performance, but do not have
a standardized meaning and the calculation methods may differ from
methods used by other companies with similar reported
measures.
SOURCE Avino Silver & Gold
Mines Ltd.