VANCOUVER, BC, March 3, 2021 /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 fourth quarter and year end 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, "2020 was a challenging year, and although we are
relieved to put it behind us, the year can be marked as one of
learning, patience, and a significant focus on the health and
safety of the entire company spanning Mexico, Canada, and the US. The pandemic presented new
challenges for our entire team and I am proud of the way we were
united by our shared culture of discipline, flexibility and
teamwork that made us stronger as a Company. Operations were
temporarily suspended in April due to the pandemic; a phased ramp
up started in June; and in early July, we were sidelined with a
strike at the mine. Fortunately, the strike came to a successful
conclusion in October. As we begin a new year, we are thrilled to
have already reported an increase in measured and indicated mineral
resources at the Avino property, and have kicked off the 2021 drill
program, as well, we remain focused on ramping up operations at the
Avino mine as we embark upon a busy and positive year ahead."
Fourth Quarter 2020 Financial Highlights
- Ending cash balance of $11.7
million
- Ending working capital of $14.7
million
- Reduction in debt liabilities by $1.1
million
- Revenues from mining operations of $1.4
million
- Mine operating losses of $ 1.3
million, including $1.5
million in stand-by costs
- Net losses from continuing operations of $1.6 million, or $0.02 per share
- Losses before interest, taxes, depreciation, and amortization
("EBITDA")3 of $2.3
million
- Adjusted losses3 of $0.2
million
- Consolidated cash production costs3, including
standby costs, of $14.01 per silver
equivalent payable ounce sold2
- Consolidated all-in sustaining cash costs, including standby
costs of $1.5 million,
("AISC")3 of $73.08 per
silver payable equivalent ounce sold2 due to
significantly lower ounces sold in the quarter
Full Year 2020 Financial Highlights
- Reduction in debt liabilities by $7.1
million
- Revenues from mining operations of $16.0
million
- Mine operating income of $0.2
million, including $2.4
million in stand-by costs
- Net loss from continuing operations of $7.5 million, or $0.09 per share
- Losses before interest, taxes, depreciation, and amortization
("EBITDA")3 of $6.9
million
- Adjusted earnings3 of $1.5
million
- Consolidated cash production costs3, including
standby costs, of $10.68 per silver
equivalent payable ounce sold2
- Consolidated all-in sustaining cash costs, including standby
costs of $2.4 million,
("AISC")3 of $20.35 per
silver payable equivalent ounce sold2
1.
|
In 2020, AgEq was
calculated using metals prices of $20.55 oz Ag, $1,769 oz Au and
$2.80 lb Cu. In 2019, AgEq was calculated using metals prices of
$16.20 oz Ag, $1,393 oz Au and $2.72 lb Cu. In Q4 2020, AgEq was
calculated using metals prices of using metals prices of $24.39 oz
Ag, $1,867 oz Au and $3.25 lb Cu. In Q4 2019, AgEq was calculated
using metal prices of $17.32 oz Ag, $1,482 oz Au and $2.67 lb
Cu.
|
|
|
2.
|
"Silver equivalent
payable ounces sold" for the purposes of cash costs and all-in
sustaining costs consists of the sum of payable silver ounces, gold
ounces and copper tonnes sold, multiplied by the ratio of the
average spot gold and copper prices to the average spot silver
price for the corresponding period.
|
|
|
3.
|
The Company
reports non-IFRS measures which include cash cost per silver
equivalent payable ounce, all-in sustaining cash cost per payable
ounce, EBITDA, adjusted earnings/losses, and cash flow per share.
These measures are widely used in the mining industry as a
benchmark for performance, but do not have a standardized meaning
and the calculation methods may differ from methods used by other
companies with similar reported measures. See Non-IFRS Measures
section for further information and detailed
reconciliations.
|
Financial Highlights
HIGHLIGHTS (Expressed in 000's of US$)
|
Fourth
Quarter 2020
|
Fourth Quarter
2019
|
Change
|
Year 2020
|
Year 2019
|
Change
|
Financial Operating
Performance
|
|
|
|
Revenues
|
$
|
1,407
|
$
|
10,427
|
-87%
|
$
|
16,022
|
$
|
31,746
|
-50%
|
Mine operating (loss)
income
|
$
|
(1,251)
|
$
|
(445)
|
181%
|
$
|
190
|
$
|
(270)
|
270%
|
Net loss from
continuing operations
|
$
|
(1,553)
|
$
|
(126)
|
1133%
|
$
|
(7,482)
|
$
|
(2,335)
|
220%
|
Net loss including
discontinued operations
|
$
|
(1,555)
|
$
|
(29,043)
|
-95%
|
$
|
(7,651)
|
$
|
(31,461)
|
-76%
|
Earnings (loss) before
interest, taxes and amortization ("EBITDA")1
|
$
|
(2,269)
|
$
|
1,342
|
-269%
|
$
|
(6,945)
|
$
|
462
|
1603%
|
Adjusted earnings
(losses)1
|
$
|
(182)
|
$
|
1,568
|
-112%
|
$
|
1,500
|
$
|
1,929
|
-22%
|
Per Share
Amounts
|
|
|
|
Loss per share from
cont. operations – basic
|
$
|
(0.02)
|
$
|
(0.00)
|
-%
|
$
|
(0.09)
|
$
|
(0.03)
|
-200%
|
Loss per share
– basic
|
$
|
(0.02)
|
$
|
(0.38)
|
95%
|
$
|
(0.09)
|
$
|
(0.45)
|
80%
|
Cash Flow
per share1 – basic
|
$
|
(0.03)
|
$
|
0.01
|
-400%
|
$
|
(0.03)
|
$
|
0.02
|
-250%
|
HIGHLIGHTS (Expressed in 000's of US$)
|
December 31,
2020
|
September
30, 2020
|
Change
|
December 31,
2020
|
December 31,
2019
|
Change
|
Liquidity &
Working Capital
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
11,713
|
$
|
12,493
|
-6%
|
$
|
11,713
|
$
|
9,625
|
22%
|
Working
capital
|
$
|
14,680
|
$
|
16,859
|
-13%
|
$
|
14,680
|
$
|
13,209
|
11%
|
|
|
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:
On a consolidated basis, the Company reduced its G&A
expenditures by $0.3 million, or 9%
for the full year 2020 compared to 2019.
Capital expenditures company-wide for the full year 2020, were
$2.2 million compared to $9.0 million for 2019.
Capital expenditures at the Avino property mainly relate to
finalizing key upgrades to mill equipment to boost gold recoveries
as well as payments for items that are needed for the planned
dry-stack tailings storage facility ("TSF #2").
Operational Highlights and Overview
HIGHLIGHTS (Expressed in US$)
|
Fourth Quarter
2020
|
Fourth Quarter
2019
|
Change
|
Year 2020
|
Year 2019
|
Change
|
Operating
|
|
|
|
Tonnes Milled
|
-
|
188,436
|
-100%
|
204,286
|
789,660
|
-74%
|
Silver
ounces produced
|
-
|
220,804
|
-100%
|
317,299
|
958,811
|
-67%
|
Gold ounces
produced
|
-
|
2,031
|
-100%
|
1,935
|
6,912
|
-72%
|
Copper pounds
produced
|
-
|
1,389,515
|
-100%
|
2,267,939
|
4,970,254
|
-54%
|
Silver equivalent
ounces1 produced
|
-
|
608,640
|
-100%
|
842,230
|
2,397,042
|
-65%
|
Concentrate
Sales and Cash Costs
|
|
|
|
Silver equivalent
payable ounces sold2
|
59,710
|
700,191
|
-91%
|
1,071,367
|
2,345,453
|
-54%
|
Cash cost
per silver equivalent payable ounce1,2,3
|
$
|
14.01
|
$
|
13.14
|
7%
|
$
|
10.68
|
$
|
12.08
|
-12%
|
All-in sustaining cash
cost per silver equivalent payable ounce1,2,3
|
$
|
73.08
|
$
|
18.27
|
300%
|
$
|
20.35
|
$
|
17.19
|
18%
|
|
|
1.
|
In 2020, AgEq was
calculated using metals prices of $20.55 oz Ag, $1,769 oz Au and
$2.80 lb Cu. In 2019, AgEq was calculated using metals prices
of$16.20 oz Ag, $1,393 oz Au and $2.72 lb Cu. In Q4 2020, AgEq was
calculated using metals prices of $24.39 oz Ag, $1,867 oz Au and
$3.25 lb Cu. In Q4 2019, AgEq was calculated using metals prices of
$17.32 oz Ag, $1,482 oz Au and $2.67 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.
|
During the Q4 2020, no production mining activities took place
due to the work stoppage at the Avino Mine. Transitional efforts
are underway to restart production and mining operations.
Operational Overview
Consolidated Production Tables
Q4
2020
|
Production by
Mine
|
Tonnes
Processed
|
Silver
Oz
|
Gold
Oz
|
Copper
Lbs
|
AgEq
|
Avino
|
-
|
-
|
-
|
-
|
-
|
Historic Above Ground
Stockpiles
|
-
|
-
|
-
|
-
|
-
|
Consolidated
|
-
|
-
|
-
|
-
|
-
|
Year
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
|
4,480
|
19
|
4,857
|
6,860
|
Consolidated
|
204,286
|
317,299
|
1,935
|
2,267,939
|
842,230
|
Q4
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
|
-
|
-
|
-
|
-
|
-
|
-
|
Year
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%
|
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 Thursday, March 4, 2021 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 2020 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
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 securities laws and the United States Private Securities
Litigation Reform Act of 1995, including 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 January 13, 2021 prepared for the Company, and
referenced 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
has 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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content:http://www.prnewswire.com/news-releases/avino-reports-q4-and-ye-2020-financial-results-301240153.html
SOURCE Avino Silver & Gold
Mines Ltd.