NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, Aug. 18, 2015 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX-V,
ASM: NYSE–MKT, GV6: FSE, "Avino" or "the Company") is pleased
to report its financial results for the second quarter ended
June 30, 2015. All financial
information, other than non-IFRS measures, 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
condensed consolidated interim financial statements for the six
months ended June 30, 2015, and
associated management's 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.
"Avino is pleased to report another successful quarter of
financial and operational results. We have maintained an efficient
cost structure while advancing and expanding our operations. Our
low all-in sustaining consolidated cash costs of $11.72 per AgEq is consistent with previous
quarters and we continue to review opportunities to further reduce
costs and improve efficiencies. Softer metal prices continue to
present challenges however our strong financial and operational
condition, and the recent receipt of $US10
million prepayment from Samsung, has well positioned the
Company to advance and meet its objectives. " stated Malcolm Davidson, CFO.
Highlights of the Three Months Ended June 30, 2015 (Compared to Q2 2014)
Financial
- Consolidated all-in sustaining cash cost per AgEq
ounce1 was $11.72 in the
second quarter of 2015 compared to $12.02 in the second quarter of 2014;
- Revenues reported for the quarter were $5,908,883 compared to $5,104,921 in the comparable quarter of 2014, an
increase of 16%;
- Income from mine operations was $2,372,903 in the second quarter of 2015, an
increase of $60,975 from the second
quarter of 2014;
- General and administrative expenses were $1,094,459 in the second quarter of 2015 compared
to $931,935 in the second quarter of
2014;
- Earnings before income taxes were $1,214,429 in the second quarter of 2015 compared
to $440,797 in the second quarter of
2014;
- Earnings for the second quarter of 2015 were $361,655, an increase of $448,752 from the second quarter of 2014;
- Earnings per share, basic and diluted, was $0.01 in the second quarter of 2015 compared to
losses per share of $0.00 in the
second quarter of 2014;
- Average realized prices per ounce of silver and gold were
US$16.20 and US$1,187 respectively for the second quarter
2015, and US$19.59 and US$1,283 respectively for the second quarter of
2014;
- Cash flows from operations before movements in working capital
were $768,381 during the second
quarter of 2015, compared to $2.3
million for the comparative period;
- Cash flow per share1, basic and diluted, was
$0.02 per share for the second
quarter of 2015, compared to $0.07
per share for the corresponding period of the previous year.
Operational
- Silver equivalent production for the second quarter of 2015
increased 167% to 819,229 oz* compared to 306,342 oz in the second
quarter of 2014;
- Silver production for the second quarter of 2015 increased 102%
to 451,505 oz compared to the second quarter of 2014;
- Gold production for the second quarter of 2015 increased by 63%
to 1,891 oz compared to 1,157 the second quarter of 2014;
- Copper production continued from startup phase in late 2014,
and 1,236,622 lbs were recovered during the second quarter.
Financial Review
The Company generated revenues of $5,908,883 during the second quarter of 2015, a
16% increase compared to the second quarter of 2014.
Mine operating income was $2,372,903, an increase of $60,975 or 3% from $2,311,928 during the second quarter of
2014.During the second quarter of 2015, net income increased by
$448,752 to $361,655 or $0.01
per share, compared to a net loss of ($87,097) or $0.00,
basic and diluted per share during the second quarter of 2014.
Cash flow from operations before movements in working capital
during the second quarter of 2015 was $768,381, a decrease of 67% from the $2.3 million generated during the second quarter
of 2014.
Operational Review
- Total silver equivalent production in the second quarter of
2015 increased to 819,299 silver equivalent ounces*, an increase of
167% compared to the corresponding period in 2014. The production
growth was due to the completed refurbishment of the 1,000 tonne
per day Mill Circuit 3 used to process new underground material
from the Avino Mine.
- Total mill feed processed during the second quarter of 2015 was
135,767 dry tonnes compared to 40,052 dry tonnes during the second
quarter of 2014, an increase of 239%.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq
ounce1 during the second quarter of 2015 were
$11.72 compared to $12.02 during the corresponding period of 2014, a
decrease of 2%.
Capital expenditures during the second quarter of 2015, net of
concentrate proceeds, were $1,965,268
compared to $2,231,300 for the
comparable quarter last year.
Capital expenditures primarily relate to the Avino mine
advancement, the process plant expansion for Mill Circuit 3, and
equipment to advance operations at the San Gonzalo and Avino
mines.
Avino Mine
On January 1, 2015, Mill Circuit 3
began processing new material taken from underground at the Avino
Mine.
Silver equivalent ounces* produced during the second quarter of
2015 totalled 438,823. This represents an increase of 23% compared
to the first quarter of 2015 as there was no production from the
Avino Mine during the comparable quarter in 2014.
San Gonzalo Mine
Silver equivalent ounces* produced during the second quarter of
2015 totalled 251,571. This represents an insignificant change
compared to the same period 2014.
All-in sustaining cash costs during the second quarter of 2015
were $12.91 per AgEq
ounce1 compared to $11.70
in the second quarter of 2014, an increase of 10%.
Mill Circuit 2
Based on the consideration of feed grades, recovery rates, and
smelter returns, during the three months ended June 30, 2015, Mill Circuit 2 was used to process
both San Gonzalo stockpile mill feed as well as historic above
ground stockpiles left from past mining of the Avino vein. The
material from San Gonzalo was processed during April and June and
the historic stockpiles were processed in May. Combined output from
Mill Circuit 2 for the quarter was 95,630 oz Ag and 463 oz Au, or
128,905 oz AgEq*.
The Company will continue to assess the optimal feed material
for Mill Circuit 2 based on metals prices, feed grades, recovery
rates, concentrate grades and other factors. During the third
quarter of 2015, the Company plans to use Mill Circuit 2 to process
mill feed from the main Avino Mine.
Bralorne Mine
Exploration and advancement at Bralorne continued throughout the
second quarter. The Company intends to commence construction of its
tailings embankment raise next week and plans to restart operations
in the coming months.
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, each 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
Avino will be holding a conference call on Wednesday, August 19, 2015 at 8 am PST (11 am
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.
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 web site within one hour following the
conclusion of the call.
Qualified Person(s)
Avino's Mexican projects are under the supervision of
Chris Sampson, P.Eng, Avino
consultant and Jasman Yee P.Eng,
Avino director, who are both qualified persons within the context
of National Instrument 43-101. Both have reviewed and approved the
technical data in this news release.
Outlook
Avino's mission is to create shareholder value through
profitable organic growth at the historic Avino property near
Durango, Mexico, and the Bralorne
property in southwestern British
Columbia, Canada. We are committed to managing all business
activities in an environmentally responsible and cost-effective
manner while contributing to the well-being of the communities in
which we operate.
Management remains focused on the following key objectives:
- Maintain profitable mining operations while managing operating
costs and improving efficiencies;
- Integrate Bralorne Gold Mine's operations into Avino's
corporate structure;
- Continue to explore regional targets on the Avino Property
followed by other properties in our portfolio; and
- Assess the potential for processing the oxide tailings resource
from previous milling operations (PEA issued in 2012).
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 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, and timing, establishment, and extent of resource
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 with certain other
projects; the absence of dividends; currency fluctuations;
competition; dilution; the volatility of 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 the 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.
* For comparison purposes, the silver equivalent ratio
has been calculated using metal prices of $16 oz Ag, $1,150
oz Au and $3.00 Lb Cu. Mill
production figures have not been reconciled and are subject to
adjustment with concentrate sales. Calculated figures may not add
up due to rounding.
1 Silver equivalent
ounces sold ("AgEq ounce") consists of the number of ounces of
silver sold plus the number of ounces of gold sold multiplied by
the ratio of the average spot gold price to the average spot silver
price for the corresponding period. Please refer to the information
under the heading "Non-IFRS Measures" of this news release for a
discussion of cash cost per silver equivalent ounce, all-in
sustaining cash cost per silver equivalent ounce, and cash flow per
share.
SOURCE Avino Silver & Gold
Mines Ltd.