ASM: TSX/NYSE American
VANCOUVER, May 6, 2020
/PRNewswire/ - Avino Silver &
Gold Mines Ltd. (ASM: TSX/NYSE American; FSE: GV6, "Avino" or "the
Company") released today its consolidated financial
results for the Company's first quarter ended March 31, 2020. 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.
David Wolfin, President and CEO
commented, "Avino had a strong first quarter that included a 10%
increase in silver equivalent payable ounces sold, a 6% increase in
revenues and a significant increase in mine operating income
compared to Q1 2019. We were also able to transition to full
production from the Avino mine, in keeping with our scheduled mine
plan. We have, as previously announced, placed the mine on care and
maintenance, and are following the Mexican Government's order to
temporarily suspend operations. We look forward to bringing the
Avino mine back into production when it is safe to do so. Above
all, the health and wellness of our employees, stakeholders, and
shareholders globally is our top priority, and we are working on
back-to-work plans that we will be able to implement as soon as we
are given the all-clear by both the Mexican and Canadian
Governments."
Financial Highlights and Overview
FIRST QUARTER 2020 FINANCIAL HIGHLIGHTS
- Revenues from mining operations of $7.1
million, up 6% from Q1 2019
- Mine operating income of $0.8
million, up significantly from $0.1
million for the same period in 2019
- Net loss from continuing operations of $0.2 million, or $Nil per share
- Earnings before interest, taxes, depreciation and amortization
("EBITDA")2 and Adjusted EBITDA2 of
$0.4 million
- Consolidated cash costs2 of $9.83 per silver equivalent payable
ounce1
- Consolidated all-in sustaining cash cost ("AISC")2
of $14.88 per silver payable
equivalent ounce1
- Working capital of $10.8 million,
with $6.7 million consisting of cash,
at the end of Q1 2020
- Reduced term facility and equipment debt by $1.2 million during Q1 2020
1. In Q1, 2020, AgEq was
calculated using metals prices of $16.94 oz Ag, $1,584 oz Au and
$2.56 lb Cu. In Q1, 2019, AgEq was calculated using metals
prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb Cu.
Calculated figures may not add up due to rounding.
|
|
2. "Silver
equivalent payable ounces sold" for the purposes of cash costs and
all-in sustaining costs consists of the sum of payable silver
ounces, gold ounces and copper tonnes sold, multiplied by the ratio
of the average spot gold and copper prices to the average spot
silver price for the corresponding period.
|
|
3. The Company
reports non-IFRS measures which include cash cost per silver
equivalent payable ounce, all-in sustaining cash cost per payable
ounce, EBITDA, adjusted EBITDA, and cash flow per share. These
measures are widely used in the mining industry as a benchmark for
performance, but do not have a standardized meaning and the
calculation methods may differ from methods used by other companies
with similar reported measures. See Non-IFRS Measures section for
further information and detailed reconciliations.
|
HIGHLIGHTS (Expressed in 000's of US$)
|
First Quarter
2020
|
First
Quarter
2019
|
Change
|
Financial
|
Revenues
|
$
|
7,116
|
$
|
6,711
|
6%
|
Mine operating
income
|
$
|
843
|
$
|
56
|
1405%
|
Net loss from
continuing operations
|
$
|
(232)
|
$
|
(539)
|
57%
|
Cash
|
$
|
6,698
|
$
|
2,526
|
165%
|
Working
capital
|
$
|
10,751
|
$
|
10,507
|
2%
|
Earnings before
interest, taxes and amortization ("EBITDA")1
|
$
|
372
|
$
|
63
|
490%
|
Adjusted
EBITDA1
|
$
|
391
|
$
|
15
|
2507%
|
Per Share
Amounts
|
Loss per share
("EPS") – basic
|
$
|
(0.00)
|
$
|
(0.01)
|
100%
|
Cash flow
per share (YTD)1 – basic
|
$
|
0.00
|
$
|
0.00
|
-%
|
|
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.
|
Costs and Capital Expenditures:
Capital expenditures for Q1 2020, were $0.5 million compared to $2.5 million for the corresponding period in
2019, with the decrease is due mostly to the timing of expenditures
and a cautious approach regarding the current COVID-19 pandemic. We
expect that this amount will increase later into 2020, as certain
capital expenditures have been pushed into the latter half of the
year.
Operational Highlights and Overview
HIGHLIGHTS
(Expressed in
US$)
|
First
Quarter
2020
|
First
Quarter
2019
|
Change
|
Operating
|
Tonnes Milled
|
164,096
|
197,687
|
-16%
|
Silver
Ounces Produced
|
266,718
|
268,399
|
-1%
|
Gold Ounces
Produced
|
1,531
|
1,813
|
-16%
|
Copper Pounds
Produced
|
1,808,172
|
1,062,702
|
70%
|
Silver Equivalent
Ounces1 Produced
|
683,944
|
615,019
|
11%
|
Concentrate Sales
and Cash Costs
|
Silver Equivalent
Payable Ounces Sold2
|
575,067
|
522,626
|
10%
|
Cash Cost
per Silver Equivalent Payable Ounce1,2
|
$
|
9.83
|
$
|
11.44
|
-14%
|
All-in Sustaining
Cash Cost per Silver Equivalent Payable
Ounce1,2
|
$
|
14.88
|
$
|
16.22
|
-8%
|
|
1. In Q1
2020, AgEq was calculated using metals prices of $16.94 oz Ag,
$1,584 oz Au and $2.56 lb Cu. In Q1 2019, AgEq was calculated using
metals prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb
Cu.
|
|
2. "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.
|
|
3. 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.
|
Silver equivalent production in Q1 2020 increased by 11%
compared to Q1 2019, with record copper quarterly production of
over 1.8 million pounds. The Avino Mine produced a record
262,238 silver ounces, the highest quarterly total achieved to
date.
Operational Overview
Consolidated Production Tables
Q1
2020
|
Production by
Mine
|
Tonnes
Processed
|
Silver
Oz
|
Gold
Oz
|
Copper
Lbs
|
AgEq
|
Avino
|
159,385
|
262,238
|
1,512
|
1,803,315
|
677,084
|
Historic Above Ground
Stockpiles
|
4,711
|
4,481
|
19
|
4,857
|
6,860
|
Consolidated
|
164,096
|
266,719
|
1,531
|
1,808,172
|
683,944
|
Q1
2020
|
Grade &
Recovery by Mine
|
Grade
Ag g/t
|
Grade
Au g/t
|
Grade
Cu %
|
Recovery
Ag %
|
Recovery
Au %
|
Recovery
Cu %
|
Avino
|
57
|
0.40
|
0.58
|
90%
|
74%
|
88%
|
Historic Above Ground
Stockpiles
|
59
|
0.31
|
0.15
|
50%
|
41%
|
31%
|
Consolidated
|
57
|
0.40
|
0.57
|
89%
|
73%
|
86%
|
|
* In Q1,
2020, AgEq was calculated using metals prices of $16.94 oz Ag,
$1,584 oz Au and $2.56 lb Cu. In Q1, 2019, AgEq was calculated
using metals prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb Cu.
Calculated figures may not add up due to rounding.
|
Increase in Talisker Resources Inc. ("Talisker")
Holdings
During the first quarter of 2020, the Company increased its
position in Talisker by 3.29 million shares, up to 15.87 million
common shares from 12.58 million at the end of 2019. The increase
was made through the exercise of 6.29 million share purchase
warrants at an exercise price of C$0.25 per share, and paid for using proceeds
from the sale of 3 million Talisker common shares at an average
price of $0.57 per share, thus the
Company did not have to put up any cash to increase its
position.
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, EBITDA and
adjusted EBITDA, all 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 and Webcast
In addition, the Company will be holding a conference call and
webcast on Thursday, May 7, 2020 at
9:00 am PST (12:00 am EST). Shareholders, analysts, investors
and media are invited to join the webcast and conference call by
logging in here Avino First Quarter 2020 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 passcode 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)
Peter Latta, P.Eng, MBA, Avino's
VP Technical Services, and Jasman
Yee, P.Eng., Avino Director, both of whom are qualified
persons within the context of National Instrument 43-101 have
reviewed and approved the technical data in this document.
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.