NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, Nov. 8, 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
third quarter ended September 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.
THIRD QUARTER 2016 HIGHLIGHTS
- Generated revenues of $13.2
million from the sale concentrates, a 163% increase from the
third quarter of 2015
- Mine operating income of $6
million, a 172% increase compared to the third quarter of
2015
- Total equity of over $68 million,
a 32% increase compared to the third quarter of 2015
- Net income after taxes of $1.2
million
- Produced 649,831 silver equivalent ounces¹, including 410,908
ounces of silver, 1,813 ounces of gold and 1,045,091 pounds of
copper
- Consolidated all-in sustaining cost ("AISC")2 was
$13.83 (US$10.60) per payable silver equivalent ounce, a
15% increase compared to $11.99 or
(US$9.16) per ounce in the third
quarter of 2015
- Average realized selling prices for silver and gold were
US$19.49 and US$1,328 per ounce respectively
- Cash and cash equivalents of $15
million were on hand at the end of the quarter
"We are pleased with the Company's Q3 results, especially the
improvements in revenues, operating income and net income. We
continue to fine tune operations at both the San Gonzalo and
Avino Mines, which we expect will
result in production and recovery improvements in upcoming
quarters. I'm most grateful for our team's ongoing efforts
towards more efficient operations, and I thank them for their
support and dedication. Other key achievements for the
quarter, included the start of construction for a new tailings
storage facility in Mexico, new
resource estimates for both the Avino and Bralorne properties, as
well as commencing a new exploration drilling project at the Avino
mine; this program aligns directly with our brownfield exploration
initiatives and objectives."
- David Wolfin, President, CEO
& Director, Avino Silver &
Gold Mines Ltd
OVERALL PERFORMACE AND HIGHLIGHTS
|
|
|
|
HIGHLIGHTS
|
Third
Quarter
2016
|
Third
Quarter
2015
|
Change
|
Operating
|
|
|
Tonnes
Milled
|
138,031
|
130,490
|
6%
|
Silver Ounces
Produced
|
410,908
|
399,836
|
3%
|
Gold Ounces
Produced
|
1,813
|
1,644
|
10%
|
Copper Pounds
Produced
|
1,045,091
|
1,344,174
|
-22%
|
Silver Equivalent
Ounces1 Produced
|
649,831
|
770,004
|
-16%
|
Concentrate Sales
and Cash Costs
|
|
Silver Equivalent
Ounces Sold2
|
608,795
|
300,420
|
103%
|
Cash Cost per Silver
Equivalent Ounce2,3
|
$
|
10.83
|
$
|
8.26
|
31%
|
US$ Cash Cost per
Silver Equivalent Ounce2,3
|
US$
|
8.30
|
US$
|
6.31
|
32%
|
All-in Sustaining Cost
per Silver Equivalent Ounce2,3
|
$
|
13.83
|
$
|
11.99
|
15%
|
US$ All-in Sustaining
Cost per Silver Equivalent Ounce2,3
|
US$
|
10.60
|
US$
|
9.16
|
16%
|
Average Realized Silver
Price per Ounce ($US)
|
US$
|
19.49
|
US$
|
15.75
|
24%
|
Average Realized Gold
Price per Ounce ($US)
|
US$
|
1,328
|
US$
|
1,158
|
15%
|
Average Realized Copper
Price per Tonne ($US)
|
US$
|
4,804
|
-
|
-%
|
Financial
|
|
Revenues
|
$
|
13,218,226
|
$
|
5,028,314
|
|
163%
|
Mine Operating
Income
|
$
|
5,962,954
|
$
|
2,188,568
|
|
172%
|
Net Income
(Loss)
|
$
|
1,166,699
|
$
|
(625,193)
|
|
274%
|
Cash
|
$
|
14,908,063
|
$
|
9,145,588
|
|
63%
|
Working
Capital
|
$
|
21,701,958
|
$
|
11,549,712
|
|
88%
|
Shareholders
|
Earnings (Loss) per
Share ("EPS") – Basic
|
$
|
0.03
|
$
|
(0.02)
|
|
250%
|
Cash Flow per Share
(YTD)3
|
$
|
0.12
|
$
|
0.10
|
|
20%
|
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 $13.2
million during the third quarter of 2016; a 163% increase
compared to the third quarter of 2015. The increase is a result of
commercial production being declared at the Avino Mine.
Mine operating income was $6
million during the third quarter of 2016, an increase of
$3.8 million or 172% from
$2.2 million in 2015. During the
third quarter of 2016, net income increased by $1.8 million to $1.2
million or $0.03 per share,
compared to a net loss of $625,193 or
$0.02 basic and diluted per share
during the corresponding period of 2015.
Operational Results
Silver equivalent production for the third quarter of 2016
decreased 16% to 649,831 oz1 compared to 770,004 oz in
the third quarter of 2015. Silver production for the third quarter
of 2016 increased 3% to 410,908 oz compared the third quarter of
2015. Gold production for the third quarter of 2016 increased by
10% to 1,813 oz compared to 1,644 oz in the corresponding period of
2015. Copper production decreased by 22% to 1,045,091 lbs compared
to 1,344,174 lbs in the third quarter of 2015. Total mill feed
processed during the third quarter of 2016 was 138,031 dry tonnes
compared to 130,490 dry tonnes during the third quarter of 2015, an
increase of 6%.
At the Avino Mine, silver equivalent ounces1 produced
during the third quarter totalled 396,397 compared to 493,455
during the third quarter of 2015, a decrease of 20%. The lower
production is due to the lower recoveries achieved as a result of
mining activities taking place in a new mineralized zone which is
located on the hanging wall side of the Avino vein beyond the
fault. This new zone has yet to be fully studied. Going forward we
expect recoveries to improve as the plant is optimized for material
from this new zone.
At the San Gonzalo Mine, silver equivalent ounces1
produced during the third quarter of 2016 totalled 253,434
representing a decrease of 8% compared to the third quarter of
2015. All-in sustaining cash costs during the third quarter of 2016
were $11.27 (US$8.64) per AgEq ounce1 compared to
$12.04 (US$9.20) during the third quarter of 2015, a
decrease of 6%.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq
ounce1 during the third quarter of 2016 were
$13.83 (US$10.60) compared to $11.99 (US$9.16)
during the corresponding period of 2015, an increase of 15%.
Capital expenditures during the nine months ended September 30, 2016, net of concentrate proceeds
of $6,020,183, were $7,420,163 compared to $6,947,324 during the nine months ended
September 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 third 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 is expected to 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 before the end of 2016.
The tailings impoundment for the Tailings Storage Facility
("TSF") was raised in October 2015,
and additional buttress work was completed on the impoundment
during the third quarter of 2016. The Interim Mine Closure Plan
("IMCP") and review process is underway and is expected to be
completed by the end 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 November 9, 2016 at 8:00
am Pacific Standard Time (11:00 am
Eastern Standard Time).
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.
- The Company 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 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.