VANCOUVER, BC, May 12, 2021 /CNW/ - Avino Silver & Gold
Mines Ltd. (ASM: TSX) (NYSE American: ASM) (FSE: GV6)
"Avino" or "the Company") released today its
consolidated financial results for the Company's first quarter
2021. 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.
"During the first quarter we continued preparations for the
re-commencement of production and remained focused on our 2021
drill program. The objectives of the drill program are to locate
new mineralized zones within the property and to confirm continuity
of mineralization in the current Avino ET production area. We have
completed 3,763 metres of drilling and are currently waiting for
full assay results to be received," said David Wolfin, President and CEO. "In addition,
we were able to reduce our debt position by a further $0.8 million and increased our working capital to
a record $31 million, ending the
quarter with a strong balance sheet thanks to the efforts of the
teams in Mexico and Canada, as well as the strength in metal
prices."
First Quarter 2021 Financial Highlights
- Ending cash balance of $27
million
- Ending working capital of $31
million
- Reduction in debt liabilities by $0.8
million
- Mine operating losses of $0.7
million
- Net losses from continuing operations of $1.8 million, or $0.02 per share
- Losses before interest, taxes, depreciation, and amortization
("EBITDA")1 of $1.7
million
- Adjusted losses1 of $0.9
million
Financial Highlights
HIGHLIGHTS (Expressed in 000's of US$)
|
First Quarter 2021
|
First Quarter 2020
|
Change
|
First Quarter 2021
|
Fourth Quarter 2020
|
Change
|
Financial Operating
Performance
|
|
|
|
Revenues
|
$
|
29
|
$
|
7,116
|
-100%
|
$
|
29
|
$
|
1,407
|
-98%
|
Mine operating (loss)
income
|
$
|
(680)
|
$
|
843
|
-181%
|
$
|
(680)
|
$
|
(1,251)
|
-46%
|
Net loss from
continuing operations
|
$
|
(1,818)
|
$
|
(232)
|
-684%
|
$
|
(1,818)
|
$
|
(1,553)
|
-17%
|
Net loss including
discontinued operations
|
$
|
(1,818)
|
$
|
(232)
|
-684%
|
$
|
(1,818)
|
$
|
(1,555)
|
-17%
|
Earnings (loss) before
interest, taxes and amortization ("EBITDA")1
|
$
|
(1,740)
|
$
|
372
|
-568%
|
$
|
(1,740)
|
$
|
(2,269)
|
23%
|
Adjusted earnings
(losses)1
|
$
|
(944)
|
$
|
391
|
-341%
|
$
|
(944)
|
$
|
(182)
|
-408%
|
Per Share
Amounts
|
|
|
|
Loss per share from
cont. operations - basic
|
$
|
(0.02)
|
$
|
(0.00)
|
-100%
|
$
|
(0.02)
|
$
|
(0.02)
|
-%
|
Loss per share
– basic
|
$
|
(0.02)
|
$
|
(0.00)
|
-100%
|
$
|
(0.02)
|
$
|
(0.02)
|
-%
|
Cash Flow
per share1 – basic
|
$
|
(0.01)
|
$
|
0.00
|
-100%
|
$
|
(0.01)
|
$
|
(0.03)
|
67%
|
HIGHLIGHTS (Expressed in 000's of US$)
|
March
31, 2021
|
March
31, 2020
|
Change
|
March
31, 2021
|
December 31,
2020
|
Change
|
Liquidity &
Working Capital
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
27,030
|
$
|
6,698
|
304%
|
$
|
27,030
|
$
|
11,713
|
131%
|
Working
capital
|
$
|
31,220
|
$
|
10,751
|
190%
|
$
|
31,220
|
$
|
14,680
|
113%
|
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 company-wide for Q1 2021, were $0.4 million compared to $0.5 million for Q1 2020.
Capital expenditures at the Avino property mainly relate to
exploration drilling costs, and we expect to see this continue to
increase into Q2 and Q3 2021.
Operational Highlights and Overview
HIGHLIGHTS (Expressed in US$)
|
First Quarter 2021
|
First Quarter 2020
|
Change1
|
First Quarter 2021
|
Fourth
Quarter 2020
|
Change1
|
Operating
|
|
|
|
Tonnes Milled
|
-
|
164,096
|
-100%
|
-
|
-
|
-%
|
Silver
Ounces Produced
|
-
|
266,718
|
-100%
|
-
|
-
|
-%
|
Gold Ounces
Produced
|
-
|
1,531
|
-100%
|
-
|
-
|
-%
|
Copper Pounds
Produced
|
-
|
1,808,172
|
-100%
|
-
|
-
|
-%
|
Silver Equivalent
Ounces1 Produced
|
-
|
683,944
|
-100%
|
-
|
-
|
-%
|
Concentrate
Sales and Cash Costs
|
|
|
|
Silver Equivalent
Payable Ounces Sold2
|
-
|
575,067
|
-100%
|
-
|
59,710
|
-100%
|
Cash Cost
per Silver Equivalent Payable Ounce1,2,3
|
$
|
-
|
$
|
9.83
|
-100%
|
$
|
-
|
$
|
14.01
|
-100%
|
All-in Sustaining Cash
Cost per Silver Equivalent Payable Ounce1,2,3
|
$
|
-
|
$
|
14.88
|
-100%
|
$
|
-
|
$
|
73.08
|
-100%
|
1. No
production in Q1 2021. In Q1 2020, AgEq was calculated using metals
prices of $16.94 oz Ag, $1,584 oz Au and $2.56 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 Q1 2021, 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.
Exploration Update – 2021 Drill Program
In March, the Company announced that it was implementing a
fully-funded increase in the 2021 drill program from 12,000 to
30,600 metres as approved by Avino's Board of Directors.
Phase 1 is focused on the El Trompo Vein, the Santiago Vein, the
Avino ET area (below Level 17) and Avino
West (below Levels 9 & 17).
Phase 2 will focus on high-grade, narrow-vein mineralized
systems similar to the previously-mined San Gonzalo system.
One vein that is of interest and another potential high-grade
target is the La Malinche vein,
which will be tested as part of Phase 2. It is similar in style to
the San Gonzalo vein, in that it is a low-sulphidation epithermal
vein. It is possible that this vein is the northwestern extension
of the San Gonzalo vein that may have been dislocated. More
exploration work is needed to confirm this theory and broaden our
understanding of the system, and Phase 2 is the beginning of this
process.
With the updated budget, Avino is now drilling the existing
oxide tailings resource that sits within our tailings storage
facility #1 ("TSF#1"). In 2017, Avino released an encouraging
Preliminary Economic Assessment ("PEA"), which can be found on
Avino's profile on SEDAR. One of the recommendations from the PEA
was to perform additional surface drilling to increase the
confidence level of the resource. This would be done in
anticipation on commencing a Pre-Feasibility Study ("PFS"). Avino
is currently proceeding with the recommended drilling with the
intention of making a decision to proceed with a PFS later in the
year.
ESG and Community Engagement
Avino has recently hired a CSR (ESG) Manager in Mexico to drive forward the Company's ESG
initiatives and contribute to the operational continuity of the
business under the principles of sustainability and corporate
Social Responsibility.
During the first quarter, the Company supported the community of
San Jose de Avino by:
- Loaning our CAT dozer, and paying for the fuel and operator's
time to help expand the towns' cemetery
- Providing multiple bags of cement to fix an access road in the
town
Supported all surrounding communities by:
- Providing information to the communities on the safety of dry
stack tailings. This will be followed up by the new CSR
Manager.
Avino has received PPE and hundreds of rapid Covid tests to
ensure the safety and good health of our workforce.
Avino is the main source of employment in the area, and once we
are fully operational again, we are looking forward to providing
steady employment to a significant number of people from the nearby
communities, as well as the City of Durango. Many people in the
local communities are keen to get back to work, and Avino has the
full support of the local and state governments.
The restart of production activities is expected to provide
significant direct economic benefits and stimulus for the local
communities.
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, May 13 at 9:00
am PST (12:00 pm am EST).
Shareholders, analysts, investors and media are invited to join the
webcast and conference call by logging in here Avino First Quarter
2021 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.
About Avino
Avino is primarily a silver producer with a diversified pipeline of
silver, gold, and base metal properties in Mexico. Avino produces from its wholly owned
Avino Mine near Durango, Mexico.
The Company's silver, copper and gold 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 and the strategic acquisition of mineral exploration
and mining properties. We are committed to managing all business
activities in a safe, environmentally responsible and
cost-effective manner, while contributing to the well-being of the
communities in which we operate. We encourage you to connect with
us on Twitter at @Avino_ASM and on LinkedIn at Avino Silver &
Gold Mines
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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SOURCE Avino Silver & Gold Mines Ltd.