VANCOUVER, BC, Nov. 9, 2020 /CNW/ - Avino Silver & Gold Mines Ltd. (TSX:
ASM) (NYSE American: ASM) (FSE: GV6) ("Avino" or "the
Company") released today its consolidated financial
results for the Company's third quarter ended September 30, 2020. The Financial Statements and
Management's 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's operating performance for the third quarter was
directly impacted due to the strike action at the mine by the
Company's unionized workers, which halted production activities
during Q3 2020. In October, we were pleased to announce that an
agreement had been reached and the strike at the mine had ended.
Currently, we are working towards restarting production and mining
operations.
I would like to thank all our stakeholders for their support,
patience and understanding during the quarter. In addition, I would
like to extend my gratitude to the management team in Mexico who negotiated a successful and
peaceful resolution."
Third Quarter 2020 Financial Highlights
- Cash balance of $12.5
million
- Working capital of $16.9
million
- Reduction in debt liabilities by $2.0
million during the quarter, and $6.1
million for the year to date 2020.
- Revenues from mining operations of $2.7
million
- Mine operating losses of $0.2
million, including $0.9
million in standby costs
- Losses before interest, taxes, depreciation, and amortization
("EBITDA")2 of $4.3
million
- Net losses from continuing operations of $4.6 million, or $0.05 per share
- Adjusted losses2 of $0.7
million
- Consolidated cash production costs2, net of standby
costs, of $12.56 per silver
equivalent payable ounce1
- Consolidated all-in sustaining cash costs, including standby
costs ("AISC")2 of $31.61
per silver payable equivalent ounce1
1. In Q3
2020, AgEq was calculated using metals prices of $24.26 oz Ag,
$1,909 oz Au and $2.96 lb Cu. In Q3 2019, AgEq was calculated using
metals prices of $16.98 oz Ag, $1,472 oz Au and $2.63 lb
Cu.
|
|
2. "Silver
equivalent payable ounces sold" for the purposes of cash costs and
all-in sustaining costs consists of the sum of payable silver
ounces, gold ounces and copper tonnes sold, multiplied by the ratio
of the average spot gold and copper prices to the average spot
silver price for the corresponding period.
|
|
3. The Company
reports non-IFRS measures which include cash cost per silver
equivalent payable ounce, all-in sustaining cash cost per payable
ounce, EBITDA, adjusted earnings/losses, and cash flow per share.
These measures are widely used in the mining industry as a
benchmark for performance, but do not have a standardized meaning
and the calculation methods may differ from methods used by other
companies with similar reported measures. See Non-IFRS Measures
section for further information and detailed
reconciliations.
|
Financial Highlights
HIGHLIGHTS
(Expressed in
000's of US$)
|
Third
Quarter
2020
|
Third Quarter
2019
|
Change
|
YTD
2020
|
YTD
2019
|
Change
|
Financial
Operating Performance
|
|
|
|
Revenues
|
$
|
2,659
|
$
|
6,796
|
-61%
|
$
|
14,615
|
$
|
21,320
|
-31%
|
Mine operating
income
|
$
|
(189)
|
$
|
(177)
|
7%
|
$
|
1,441
|
$
|
175
|
723%
|
Net loss from
continuing operations
|
$
|
(4,587)
|
$
|
(1,545)
|
197%
|
$
|
(5,930)
|
$
|
(2,209)
|
168%
|
Net loss including
discontinued operations
|
$
|
(4,589)
|
$
|
(1,642)
|
179%
|
$
|
(6,097)
|
$
|
(2,418)
|
152%
|
Earnings (loss)
before interest, taxes and amortization
("EBITDA")1
|
$
|
(4,250)
|
$
|
(1,575)
|
170%
|
$
|
(4,675)
|
$
|
(917)
|
410%
|
Adjusted
earnings1
|
$
|
(665)
|
$
|
(136)
|
388%
|
$
|
1,684
|
$
|
328
|
414%
|
Per Share
Amounts
|
|
|
|
Loss per share from
cont. operations – basic
|
$
|
(0.05)
|
$
|
(0.02)
|
-150%
|
$
|
(0.07)
|
$
|
(0.03)
|
-133%
|
Loss per share
– basic
|
$
|
(0.05)
|
$
|
(0.02)
|
-150%
|
$
|
(0.08)
|
$
|
(0.04)
|
-100%
|
Cash Flow
per share1 – basic
|
$
|
(0.01)
|
$
|
0.00
|
-100%
|
$
|
(0.00)
|
$
|
0.00
|
-%
|
HIGHLIGHTS
(Expressed in
000's of US$)
|
September 30,
2020
|
June
30,
2020
|
Change
|
September 30,
2020
|
December 31,
2019
|
Change
|
Liquidity &
Working Capital
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
12,493
|
$
|
10,386
|
20%
|
$
|
12,493
|
$
|
9,625
|
30%
|
Working
capital
|
$
|
16,859
|
$
|
13,797
|
22%
|
$
|
16,859
|
$
|
13,209
|
28%
|
|
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 earnings/losses, 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 the third quarter of 2020 were
$0.4 million compared to $2.3 million for Q3 2019. All necessary capital
expenditures continued during the third quarter, as the Company
finalized key upgrades to mill equipment to boost gold recoveries,
as well as secured deposits on long-lead items for the planned
dry-stack tailings storage facility ("TSF #2").
Operational Highlights and Overview
HIGHLIGHTS
(Expressed in
US$)
|
Third Quarter
2020
|
Third Quarter
2019
|
Change
|
YTD
2020
|
YTD
2019
|
Change
|
Operating
|
|
|
|
Tonnes Milled
|
-
|
202,664
|
-100%
|
204,286
|
601,224
|
-66%
|
Silver
Ounces Produced
|
-
|
221,928
|
-100%
|
317,299
|
738,007
|
-57%
|
Gold Ounces
Produced
|
-
|
1,448
|
-100%
|
1,935
|
4,880
|
-60%
|
Copper Pounds
Produced
|
-
|
1,381,924
|
-100%
|
2,267,939
|
3,580,739
|
-37%
|
Silver Equivalent
Ounces1 Produced
|
-
|
570,220
|
-100%
|
842,230
|
1,788,402
|
-53%
|
Concentrate Sales
and Cash Costs
|
|
|
|
Silver Equivalent
Payable Ounces Sold2
|
113,703
|
503,742
|
-77%
|
1,011,657
|
1,645,263
|
-39%
|
Cash Cost
per Silver Equivalent Payable Ounce1,2,3
|
$
|
12.56
|
$
|
12.74
|
-1%
|
$
|
10.48
|
$
|
11.63
|
-10%
|
All-in Sustaining
Cash Cost per Silver Equivalent
Payable Ounce1,2,3
|
$
|
31.61
|
$
|
18.62
|
70%
|
$
|
17.23
|
$
|
16.73
|
3%
|
|
1. In Q3
2020, AgEq was calculated using metals prices of $24.26 oz Ag,
$1,909 oz Au and $2.96 lb Cu. In Q3 2019, AgEq was calculated using
metals prices of $16.98 oz Ag, $1,472 oz Au and $2.63 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 earnings/losses, 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.
|
During the quarter no production mining activities took place
due to the work stoppage at the Avino Mine.
Operational Overview
Consolidated Production Tables
Q3
2020
|
Production by
Mine
|
Tonnes
Processed
|
Silver
Oz
|
Gold
Oz
|
Copper
Lbs
|
AgEq
|
Avino
|
-
|
-
|
-
|
-
|
-
|
Historic Above Ground
Stockpiles
|
-
|
-
|
-
|
-
|
-
|
Consolidated
|
-
|
-
|
-
|
-
|
-
|
YTD
2020
|
Production by
Mine
|
Tonnes
Processed
|
Silver
Oz
|
Gold
Oz
|
Copper
Lbs
|
AgEq
|
Avino
|
199,575
|
312,819
|
1,916
|
2,263,082
|
835,370
|
Historic Above Ground
Stockpiles
|
4,711
|
4,481
|
19
|
4,857
|
6,860
|
Consolidated
|
204,286
|
317,299
|
1,935
|
2,267,939
|
842,230
|
Q3
2020
|
Grade &
Recovery by Mine
|
Grade
Ag g/t
|
Grade
Au g/t
|
Grade
Cu %
|
Recovery
Ag %
|
Recovery
Au %
|
Recovery
Cu %
|
Avino
|
-
|
-
|
-
|
-
|
-
|
-
|
Historic Above Ground
Stockpiles
|
-
|
-
|
-
|
-
|
-
|
-
|
Consolidated
|
-
|
-
|
-
|
-
|
-
|
-
|
YTD
2020
|
Grade &
Recovery by Mine
|
Grade
Ag g/t
|
Grade
Au g/t
|
Grade
Cu %
|
Recovery
Ag %
|
Recovery
Au %
|
Recovery
Cu %
|
Avino
|
54
|
0.40
|
0.58
|
90%
|
75%
|
88%
|
Historic Above Ground
Stockpiles
|
59
|
0.31
|
0.15
|
50%
|
41%
|
31%
|
Consolidated
|
54
|
0.40
|
0.57
|
89%
|
74%
|
87%
|
Option Agreement – Silver Wolf Exploration Ltd. (formerly
Gray Rock Resources Ltd.) ("Silver Wolf")
On August 13, 2020 the Company
announced that it had entered into an option agreement with Silver
Wolf in which they were granted the exclusive right to acquire
an 100% interest in the Ana Maria and El Laberinto properties in
Mexico (the "Option"), in
consideration of the issuance to Avino of share purchase warrants
to acquire 300,000 common shares of Silver Wolf at an exercise
price of $0.20 per share for a period
of 36 months from the date of the TSX Venture Exchange's final
acceptance of the Option Agreement (the "Approval Date").
By divesting of these non-core two assets, Avino limits the
costs of maintaining these properties, and retains exposure to any
exploration upside through the issuance of Silver Wolf purchase
shares or warrants. In addition, Avino will have a right of first
refusal to purchase and process any ore or concentrate extracted
from the properties for processing.
Exercise of Warrants
During the third quarter, the Company received proceeds of over
$3 million from the exercise of
warrants. The Company will use the proceeds to execute on its
operational plans of constructing TSF#2 and on exploration on other
areas of the Avino Mine.
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 earnings/losses, all of which are non-IFRS measures.
These measures are 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 Tuesday, November 10, 2020
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 Third Quarter Financial Results Conference
Call and Webcast 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, who is a qualified person within the context
of National Instrument 43-101 and has 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.