VANCOUVER, Feb. 27, 2019 /CNW/ -
Avino Silver & Gold
Mines Ltd. (ASM: TSX/NYSE American; FSE:GV6, "Avino" or "the
Company") is pleased to announce the consolidated
financial results for the Company's fourth quarter and year ended
December 31, 2018. The
Financial Statements and Management Discussion and Analysis
(MD&A) 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.
FOURTH QUARTER 2018 HIGHLIGHTS
- Generated revenues of $8.3
million from the sale of San Gonzalo and Avino
concentrates
- Mine operating income amounted to $1.3 million, a decrease of 60 % over the same
period of 2017
- Net income after taxes amounted to $1.0 million or a EPS (Earnings per share) of
$0.02
- Silver equivalent production of 720,187
ounces1, including 288,600
ounces of silver, 1,973 ounces of gold, and
1,375,758 lbs of copper
- Total consolidated cash cost2 was $8.93 per silver equivalent payable
ounce1
- Consolidated all-in sustaining cost2 ("AISC")
was $9.41 per silver equivalent
payable ounce1 a 2% increase compared to $9.23 per ounce in the fourth quarter of
2017
- Working capital of $13.1
million, a 20% decrease from $16.4
million in 2017 due to continued reinvestment in
capital projects
- Earnings before interest, taxes, depreciation and
amortization ("EBITDA") was 1.2 million
- Cash of $3.2 million was on
hand at the end of the quarter
2018 HIGHLIGHTS
- Generated revenues of $34.1
million from sales of San Gonzalo and Avino concentrates, an
increase of 2% compared to 2017
- Mine operating income was $6.3
million, a decrease of 44% compared to 2017
- Net income after taxes amounted to $1.6 million or a EPS (Earnings per share) of
$0.03
- Silver equivalent production of 2,863,753
ounces1, including 1,286,382 ounces of silver, 8,092
ounces of gold, and 4,819,022 lbs of copper
- Total consolidated cash cost2 was $9.32 per silver equivalent payable
ounce1
- AISC2 was $10.67
per silver equivalent payable ounce1, a 5% increase
compared to $10.11 per ounce in
2017
- Working capital of $13.1
million, a 20% decrease from $16.4
million in 2017 due to continued reinvestment in capital
projects
- EBITDA of $6.0
million
- Cash of $3.2 million was on
hand at December 31, 2018
- Invested $14.8 million
in capital expenditures at the Avino and Bralorne
mines
"Despite the challenges faced in 2018, our overall silver
equivalent production increased in both the fourth quarter and for
the full year. Operationally, 2018 was a year in which we
successfully achieved our goal of completing Mill Circuit 4 and
several drill programs on numerous areas of the Avino property,
which successfully outlined longer term targets that warrant
further investigation and drilling." stated David Wolfin, President and CEO. "We announced
an updated mineral resource estimate in 2018 that increased the
measured and indicated resources by 225% at the Avino property. At
the Bralorne Gold Mine in British
Columbia, we commenced an exciting and comprehensive
exploration drilling program, which was possible due to the
Flow-Through share offering in April. We delivered a slight
increase in revenues for the year, and earnings per share of
$0.03. We are pleased with the
successes achieved for 2018, which were challenging due to
significantly lower metal prices. The implementation of cost
reducing initiatives across the Company, remain in place. We are
steadfast in our approach to delivering strong financial health
which is fundamental to the Company's continued
success."
¹ In
2018, AgEq was calculated using metals prices of $15.71 oz Ag,
$1,270 oz Au and $2.96 lb Cu. In 2017, AgEq was calculated using
metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb
Cu
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|
² The
Company reports non-IFRS measures which include cash cost per
silver equivalent ounce, all-in sustaining cash cost per ounce, and
cash flow per share. These measures are widely used in the mining
industry as a benchmark for performance, but do not have a
standardized meaning and the calculation methods may differ from
methods used by other companies with similar reported
measures.
|
Operational Highlights
|
|
|
|
|
|
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HIGHLIGHTS
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Change
|
Year
2018
|
Year
2017
|
Change
|
(Expressed in US$)
|
Operating
|
|
|
|
|
|
|
Tonnes
Milled
|
189,574
|
129,555
|
46%
|
708,764
|
541,935
|
31%
|
Silver Ounces
Produced
|
288,600
|
319,678
|
-10%
|
1,286,382
|
1,394,203
|
-8%
|
Gold Ounces
Produced
|
1,973
|
1,472
|
34%
|
8,092
|
7,935
|
2%
|
Copper Pounds
Produced
|
1,375,758
|
1,108,800
|
24%
|
4,819,022
|
4,373,166
|
10%
|
Silver Equivalent
Ounces1 Produced
|
720,187
|
637,012
|
13%
|
2,863,753
|
2,700,585
|
6%
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Concentrate Sales and Cash
Costs
|
|
|
|
|
|
|
Silver Equivalent
Payable Ounces Sold3
|
713,384
|
597,285
|
19%
|
2,640,129
|
2,245,946
|
18%
|
Cash Cost per Silver
Equivalent Payable Ounce1,2,3,4
|
$
|
8.93
|
$
|
7.90
|
13%
|
$
|
9.32
|
$
|
8.65
|
8%
|
All-in Sustaining
Cash Cost per Silver Equivalent Payable
Ounce1,2,3,4
|
$
|
9.41
|
$
|
9.23
|
2%
|
$
|
10.67
|
$
|
10.11
|
5%
|
|
1. In
2018, AgEq8 was calculated using metals prices of $15.71 oz Ag,
$1,270 oz Au and $2.96 lb Cu. In 2017, AgEq was calculated using
metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb Cu
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|
2. In Q4 2018,
AgEq was calculated using metals prices of $14.55 oz Ag, $1,229 oz
Au and $2.80 lb Cu. In Q4 2017, AgEq was calculated using metals
prices of $16.70 oz Ag, $1,276 oz Au and $3.09 lb
Cu.
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3. "Silver equivalent payable ounces sold" for
the purposes of cash costs and all-in sustaining costs consists of
the sum of payable silver ounces, gold ounces and copper tonnes
sold, before penalties, treatment charges, and refining charges,
multiplied by the ratio of the average spot gold and copper prices
to the average spot silver price for the corresponding
period.
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4. The Company reports non-IFRS measures which
include cash cost persilver equivalent payable ounce, all-in
sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA,
and cash flow per share. These measures are widely used in the
mining industry as a benchmark for performance, but do not have a
standardized meaning and the calculation methods may differ from
methods used by other companies with similar reported measures. See
Non-IFRS Measures section for further information and detailed
reconciliations.
|
Financial Highlights
|
|
|
|
|
|
|
HIGHLIGHTS
|
Fourth Quarter
2018
|
Fourth Quarter
2017
|
Change
|
Year
2018
|
Year
2017
|
Change
|
(Expressed in 000's of US$)
|
Financial
|
Revenues
|
$
|
8,268
|
$
|
8,884
|
-7%
|
$
|
34,116
|
$
|
33,359
|
2%
|
Mine Operating
Income
|
$
|
1,347
|
$
|
3,363
|
-60%
|
$
|
6,266
|
$
|
11,253
|
-44%
|
Net Income
|
$
|
981
|
$
|
1,496
|
-34%
|
$
|
1,626
|
$
|
2,522
|
-36%
|
Cash
|
$
|
3,252
|
$
|
3,420
|
-5%
|
$
|
3,252
|
$
|
3,420
|
-5%
|
Working
Capital
|
$
|
13,106
|
$
|
16,402
|
-20%
|
$
|
13,106
|
$
|
16,402
|
-20%
|
Earnings before
interest, taxes and amortization ("EBITDA")1
|
$
|
1,242
|
$
|
3,312
|
-63%
|
$
|
5,999
|
$
|
8,258
|
-27%
|
Adjusted
EBITDA1
|
$
|
1,690
|
$
|
3,367
|
-50%
|
$
|
6,127
|
$
|
10,648
|
-42%
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Per Share Amounts
|
|
|
|
Earnings per Share
("EPS") –Basic
|
$
|
0.02
|
$
|
0.03
|
-33%
|
$
|
0.03
|
$
|
0.05
|
-40%
|
Cash Flow per Share
(YTD)1 –Basic
|
$
|
0.03
|
$
|
0.05
|
-40%
|
$
|
0.07
|
$
|
0.13
|
-46%
|
1. The Company reports non-IFRS measures which
include cash cost per silver equivalent payable ounce, all-in
sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA,
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. See
Non-IFRS Measures section for further information and detailed
reconciliations.
|
Financial Results
The Company generated revenues of $34.1 million during 2018; a slight increase of
2% increase compared with 2017.
Mine operating income was $6.3
million during 2018, compared to $11.3 million in 2017, a decrease of 44%. The
decrease is largely due to lower realized metal prices; however the
company sold 18% more silver equivalent ounces. Other factors
include lower production results at San Gonzalo.
During 2018, the company reported net income of 1.6
million or $0.03 per share, compared
to net income of $2.5 million or
$0.05 basic per share in
2017.
Operational Results
2018 Production Highlights
- Silver equivalent1
production - 2,863,753 oz*
- Silver production - 1,286,382 oz
- Gold production – 8,092 oz
- Copper production – 4,819,022 lbs
In 2018, we also produced 43,586 silver equivalent
ounces from our low grade zinc concentrate
Silver equivalent production for 2018
increased by 6% to 2,863,753
ounces1 compared to 2,700,585
ounces in 2017. Silver production for 2018
decreased 8% to 1,286,382 ounces compared to 1,394,203 ounces
in 2017. Gold production for 2018
increased by 2% to 8,092 ounces compared to 7,935 ounces in
2017. Copper production for 2018 increased by 10% to 4,819,022 lbs
compared to 4,373,166 lbs in 2017. Total mill
feed processed during 2018 was 708,764 compared to 541,935 dry
tonnes during 2017, an increase of 31% which included Avino, San
Gonzalo, and the Avino Historic Above Ground ("AHAG")
stockpiles.
At the Avino mine, the silver equivalent
ounces1 produced during 2018
totalled 1,847,303 compared to 1,911,428 produced in 2017, which
was a slight decrease of 3%. When examined on a yearly basis, the
lower tonnage processed combined with the variations in feed grades
resulted in an increase in copper production by 4% and silver and
gold production decreased by 24% and 12%, respectively, for the
year compared to 2017.
At the San Gonzalo Mine, the silver equivalent
ounces1 produced during 2018 totaled 592,098 compared to
789,157 in 2017. This represents a 25% decrease compared to 2017,
and due to the San Gonzalo mine approaching its end of life and the
grades, recoveries and production have started to tail off. This is
in line with our internal expectations. On an annual basis
the silver and gold feed grades declined by 17% and 22%
respectively, compared to year end 2017. This combined
together with a slight decrease in both silver and gold recovery
resulted in San Gonzalo producing 25% fewer ounces compared to
2017.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs ("AISC") per
AgEq ounce during 2018 was $10.67
compared to 10.11 during 2017, an increase of 5%. The moderately
higher AISC are attributed to lower metal prices, lower grades at
Avino and San Gonzalo and higher operational costs such as labour
and production.
Capital expenditures during 2018 were $14.8 million compared to 12.2 million during
2017.
Capital expenditures primarily relate to finalizing the
mill expansion which included the completion of Mill Circuit 4,
exploration at the Avino Mine, development at the San Luis area of the Avino Mine, the
purchasing of new mining, milling/processing and equipment, as well
as advancing the exploration program at the Bralorne
Mine.
¹ In
2018, AgEq was calculated using metals prices of $15.71 oz Ag,
$1,270 oz Au and $2.96 lb Cu. In 2017, AgEq was calculated using
metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb
Cu
|
Bralorne Mine
During the year, a CAD $6.0
million Flow Through share offering was announced for
exploration expenditures. With this financing, the Company was able
to embark on the most comprehensive exploration program in the
mine's 100-year history.
The program includes a total of 24,000 metres of drilling,
structural modelling and geological mapping, airborne and ground
geophysics surveys, and geochemical sampling.
In December, the Company announced drilling results from
holes targeting the 27 Vein extension. These holes confirmed the
vein continuity up dip from the area of historic production. The
initial assays were favourable, with the best of the three assays
intercepting 29.5 gold g/t over 0.88 metres true width.
Non-IFRS Measures
The financial results in this news release include
references to cash flow per share, cash cost per silver equivalent
payable ounce, and all-in sustaining cash cost per silver
equivalent payable 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.
Additional information
The Company will be holding a conference call and webcast
on Thursday, February 28, 2019 at
8:00 am PST (11:00 am EST).
Shareholders, analysts, investors and media are invited to
join the webcast and conference call by logging in here
Avino Fourth Quarter and Year End 2018 Webcast and Conference
Call or by dialing the following numbers five to ten
minutes prior to the start time:
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 or webcast; participants will have the opportunity to ask
questions during the Q&A portion.
The conference call and webcast will be recorded and the
replay will be available on the Company's web site later that
day.
Qualified Person(s)
Jasman Yee, P.Eng., Avino
Director, Fred Sveinson, B.A.,
B.Sc., P.Eng., Senior Mining Advisor, and Peter Latta, P.Eng, MBA, Senior Technical
Advisor, have reviewed and approved the technical data in this news
release, all of whom are qualified persons within the context of
National Instrument 43-101.
About Avino
Avino is a silver and gold producer with a diversified
pipeline of gold, silver and base metals properties in Mexico and Canada employing approximately 500 people.
Avino produces from its wholly owned Avino and San Gonzalo Mines
near Durango, Mexico, and is
currently exploring and drilling at the Bralorne Gold Mine in
British Columbia, Canada. The
Company's gold and silver production remains unhedged. The
Company's mission and strategy is to create shareholder value
through its focus on profitable organic growth at the historic
Avino Property near Durango,
Mexico, and the strategic acquisition of mineral exploration
and mining properties. We are committed to 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.
¹ In
2018, AgEq was calculated using metals prices of $15.71 oz Ag,
$1,270 oz Au and $2.96 lb Cu. In 2017, AgEq was calculated using
metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb
Cu
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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 Canadian securities laws and the United States Private
Securities Litigation Reform Act of 1995, including, but are not
limited to, the Company's ability to meet its production guidance,
expectations of All-In Sustaining Cash Cost ("AISC"), information
on the updated mineral resource estimate for the Company's Avino
Property located near Durango in west-central Mexico (the "Property") with an effective date
of February 21, 2018, and amended on
December 19, 2018, prepared for the
Company, and reference to Measured, Indicated, Inferred Resources
referred to in this press release. 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. No assurance can be given that the Company's Property
does not have the amount of the mineral resources indicated in the
updated report or that such mineral resources may be economically
extracted.
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 the 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 Regarding Non-GAAP Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including silver equivalent ounces (AgEq oz) of production.
Non-GAAP measures do not have any standardized meaning prescribed
under IFRS and, therefore, they may not be comparable to similar
measures reported by other companies. We believe that, in addition
to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate our performance. The
data presented is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Readers
should also refer to our management's discussion and analysis
available under our corporate profile at www.sedar.com or on our
website at www.avino.com.
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SOURCE Avino Silver & Gold
Mines Ltd.