Avino Reports 2013 Financial Results of $848,212 $0.03 Per Share
and Cash Flow From Operations of $5,196,736 $0.19 Per Share
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 17, 2014) -
Avino Silver & Gold Mines Ltd.
(TSX-VENTURE:ASM)(NYSEMKT:ASM)(NYSE Amex:ASM)(FRANKFURT:GV6)
("Avino" or "the Company") is pleased to report its financial
results for the year ended December 31, 2013. All financial
information is prepared in accordance with IFRS and all dollar
amounts are expressed in Canadian dollars unless otherwise
specified. The information in this news release should be read in
conjunction with the Company's audited consolidated financial
statements for the year ended December 31, 2013 and associated
management discussion and analysis ("MD&A") which are available
on the Company's website at www.avino.com and under the Company's
profile on SEDAR at www.sedar.com.
"We are very pleased to report our earnings for the year ended
December 31, 2013 which reflects a full year of production at our
San Gonzalo Mine. Our financial results are strong and particularly
satisfying given the environment of fluctuating metal prices,"
stated Malcolm Davidson, CFO. "Our teams in Mexico and Canada have
worked hard to manage costs and increase production which has
helped significantly to earn an after tax profit of $842,212 or
$0.03 per share.
Highlights of Fiscal
2013 (Compared to Fiscal 2012)
Financial
- Revenues reported for year were $16,094,701 compared to
$2,255,376 in 2012, an increase of 600%
- Income from mine operations was $7,126,292, an increase of
$6,305,485
- General and administrative expenses $4,247,431 compared to
$1,929,746 in 2012
- Earnings before income taxes was $3,409,212 compared to a loss
of $1,002,857 in 2012
- Earnings for the year were $848,212, an increase of $2,111,390
from 2012
- Earnings per share - basic and diluted $0.03
- Average realized prices per ounce of silver and gold were
$22.59 and $1,342.07 respectively
- Cash cost per AgEq ounce decreased from $14.22 in 2012 to
$10.16 in 2013
- Consolidated all-in sustaining cash cost per AgEq ounce was
$14.39
Operational*
- Silver production increased 264% to 698,076 oz
- Gold production increased 162% to 3,243 oz
- Silver equivalent production increased 253% to 895,240
oz**
- Concentrate inventory available for sale at year-end was
183.170 dry metric tonnes
- Successfully added a second 250 TPD circuit to process Avino
Mine surface stockpiles
*During the first three quarters of 2012, the Company was
considered an exploration stage company and the proceeds from the
sale of bulk concentrate were charged as a reduction of and
exploration and evaluation costs. On October 1, 2012, the Company
transitioned to full production at operating levels intended by
management at the San Gonzalo Mine and production results from that
point forward were reflected in the statement of
operations.
** Silver equivalent ounces in Q3 and Q4 2013 were
calculated using a 65:1 ratio for silver to gold. During Q1 and Q2
2013, a 55:1 ratio was used in the calculation. In 2012 a ratio of
50:1 was used. (The ratio was changed to reflect the respective
gold and silver prices during those periods). Mill production
figures have not been reconciled and are subject to adjustment with
concentrate sales. Year-to-date and calculated figures may not add
up due to rounding.
Highlights for the
Fourth Quarter ended December 31, 2013 (Compared to Fourth Quarter
2012)
Financial
- Revenues reported for year were $3,831,123 compared to
$2,255,376 in 2012, an increase (70%)
- Income from mine operations was $1,423,829, an increase of
$603,022 (73%)
- General and administrative expenses $873,458 compared to
$889,152 in 2012
- Earnings before income taxes was $759,238 compared to $433,981
in 2012
- Loss for the quarter was $1,625,762, a decrease of $1,799,422
from 2012
- Loss per share - basic and diluted was $0.06 for the
quarter
- Cash cost per AgEq ounce decreased from $14.22 in 2012 to
$11.32 in 2013
- Consolidated all-in sustaining cash cost per AgEq ounce was
$15.72
Operational*
- Silver production increased by 44% to 184,760 oz
- Gold production increased by 122% to 1,011 oz
- Silver equivalent production increased by 66% to 250,533
oz
- Plant throughputs, ore grades and metal recoveries were higher
at the San Gonzalo Mine
* Production in both periods includes output from the San
Gonzalo Mine (Circuit 1); there was no output from the Avino Mine
stockpiles (Circuit 2) during Q4 2012 as the circuit was not
operational.
**Silver equivalent ounces in Q4 2013 have been calculated
using a 65:1 ratio for silver to gold. In 2012, a ratio of 50:1 was
used. (The ratio was changed to reflect the respective gold and
silver prices during these periods)
"In 2013, we delivered a significant year of silver and gold
production and revenue. Production increased in each quarter and we
managed to cut operating costs and remain cash flow positive
despite weaker metal prices. We kept a lean operation which
resulted in a respectable $10.16 cash cost per ounce. During the
fourth quarter, we recorded a deferred income tax expense which is
a non cash item thus clouding the year end numbers. Our operations
remains robust, with 2014 shaping up to be another record year. Our
expansion is going ahead as planned and is scheduled for completion
in Q4; thus, 2015 should be the most productive year the company
has seen in its 46 year history. I would like to thank all the
people involved in making our plan a reality."
- David Wolfin,
President, CEO & Director, Avino Silver & Gold Mines
Ltd.
Conference Call
Avino will be holding a conference call on Thursday, April 17,
2014 at 9 am PST (12 pm EST).
To participate in the conference call, please dial the
following:
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;
participants will have the opportunity to ask questions during the
Q&A portion of the call. Alternatively, participants can send
questions via email to ir@avino.com on April 16th, following the
release of the financial results.
Participants should dial in 10 minutes prior to the
conference.
The conference call will be recorded and the replay will be
available on the Company's website within one hour following the
conclusion of the call.
Outlook
Avino's mission is to create shareholder value through
profitable organic growth at the Avino Property. We are committed
to managing all business activities in an environmentally
responsible and cost-effective manner while contributing to the
well-being of the community in which we operate.
Management remains focused on the following key objectives:
- Maintain profitable mining operations at San Gonzalo while
managing operating costs and improving efficiencies;
- Advance the Avino Mine for mineral production, expand mill
output from 500 to 1,500 TPD;
- Continue to review and develop plans to process the oxide
tailings resource from previous milling operations (PEA issued in
2012);
- Continue to explore regional targets on the Property followed
by other properties in our portfolio.
Avino
Avino is a silver and gold producer operating the Avino property
located in Durango, Mexico. The Company's mission is to become the
next mid-tier silver producer through profitable organic growth at
the Avino property. We are committed to managing all business
activities in an environmentally responsible and cost-effective
manner while contributing to the well-being of the community in
which we operate.
ON BEHALF OF THE BOARD
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 our belief as to the
extent and timing of various studies including the PEA, and
exploration results, the potential tonnage, grades and content of
deposits, timing and establishment and extent of resources
estimates. 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.
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 of 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 to United States Investors - The information
contained herein and incorporated by reference herein has been
prepared in accordance with the requirements of Canadian securities
laws, which differ from the requirements of United States
securities laws. In particular, the term "resource" does not equate
to the term "reserve". The Securities Exchange Commission's (the
"SEC") disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute "reserves" by SEC standards, unless such
information is required to be disclosed by the law of the Company's
jurisdiction of incorporation or of a jurisdiction in which its
securities are traded. U.S. investors should also understand that
"inferred mineral resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. Disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Avino Silver & Gold Mines Ltd.David WolfinPresident &
CEO604.682.3701604.682.3600ir@avino.comwww.avino.com
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