NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, May 16, 2016 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX-V,
ASM: NYSE–MKT, GV6: FSE, "Avino" or "the Company") is pleased
to announce the consolidated financial results for the Company's
first quarter ended March 31,
2016. The financial statements and the management discussion
and analysis 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.
FIRST QUARTER 2016 HIGHLIGHTS
- Generated revenues of $2,751,949
million from the sale of San Gonzalo concentrates
- Mine operating income amounted to $1,775,185 million
- Net income after taxes amounted to $58,046
- Produced 715,933 silver equivalent ounces, including 403,447
ounces of silver, 1,497 ounces of gold and 1,350,912
pounds of copper
- Consolidated all-in sustaining cost ("AISC")2 was
$11.29 (US$8.22) per payable silver equivalent ounce, a
9% decrease compared to $12.36 or
(US$10.09) per ounce in the first
quarter of 2015
- Total consolidated cash2 cost was $5.64 per payable silver ounce
- Average realized selling prices for silver and gold were
US$16.42 and US$1,194 per ounce respectively
- Cash and cash equivalents of $6,022,283
million were on hand at the end of the quarter
"We are pleased to have delivered another quarter of positive
operating and financial results. Our revenues from the San Gonzalo
Mine were lower than expected due to a new sales arrangement which
resulted in only two months of sales. Going forward, each
quarter will reflect three months of sales and related production
costs. Our teams in Mexico and
Canada have done an excellent job
of monitoring and reducing costs, with stronger metal prices we
anticipate improved profitability in future periods. During the
quarter we achieved a consolidated all-in sustaining cash cost of
$11.29 (US$8.22) compared to $12.36 (US$10.09)
per silver equivalent ounce in the first quarter of 2015. In
April 2016, the Company commenced
underground mining using the long-hole caving method at the Avino
Mine. Management is currently analyzing the economics of the new
mining method and is optimistic that the results will lead to a
commercial production decision in the coming months."
- David Wolfin, President, CEO
& Director
OVERALL PERFORMACE AND HIGHLIGHTS
|
|
|
|
HIGHLIGHTS
|
First
Quarter
2016
|
First
Quarter
2015
|
Change
|
Operating
|
Tonnes
Milled
|
140,116
|
114,453
|
22%
|
Silver Ounces
Produced
|
403,447
|
363,210
|
11%
|
Gold Ounces
Produced
|
1,497
|
1,750
|
-14%
|
Copper Pounds
Produced
|
1,350,912
|
872,884
|
55%
|
Silver Equivalent
Ounces1 Produced
|
715,933
|
627,058
|
14%
|
Consolidated San
Gonzalo and Historical Stockpiles
|
Silver Equivalent
Ounces1 Sold
|
155,507
|
253,194
|
- 39%
|
Cash Cost per Silver
Equivalent Ounce1,2
|
$5.64
|
$ 8.60
|
- 34%
|
All-in Sustaining Cost
per Silver Equivalent Ounce1,2
|
$11.29
|
$ 12.36
|
- 9%
|
Average Realized Silver
Price per Ounce ($US) ¹
|
US$16.42
|
US$ 16.22
|
1%
|
Average Realized Gold
Price per Ounce ($US) ¹
|
US$1,194
|
US$ 1,188
|
1%
|
Financial
|
Revenues – San
Gonzalo
|
$ 2,751,949
|
$ 4,285,541
|
- 36%
|
Mine Operating Income –
San Gonzalo
|
$ 1,775,185
|
$ 2,087,856
|
- 15%
|
Net Income
|
$ 58,046
|
$ 376,287
|
- 85%
|
Cash and Cash
Equivalents
|
$ 6,022,283
|
$ 7,475,134
|
- 19%
|
Working
Capital
|
$ 3,766,684
|
$ 2,352,345
|
60%
|
Shareholders
|
Earnings per Share
("EPS") – Basic
|
$ 0.00
|
$ 0.01
|
- 100%
|
Cash Flow per
Share2
|
$ 0.01
|
$ 0.01
|
-%
|
|
|
|
|
Financial Results
The Company generated revenues of $2,751,949 million during the first quarter of
2016; a 36% decrease compared to the first quarter of 2015. The
decrease was due to a new sales agreement for sale of San Gonzalo
Mine concentrate. The new sales agreement has slightly different
shipping which resulted in the sale March's production being
deferred to April 2016. Accordingly,
the first quarter financial figures represent only operations
during January and February. This deferral will only occur once and
subsequent quarters will reflect three months or revenues and
related production costs.
Mine operating income was $1,775,185
million during the first quarter of 2016, a decrease of
$312,761 or 15% from $2,087,856 in 2015. During the first quarter of
of 2016, net income decreased by $318,241 to $58,046
or $0.00 per share, compared to net
income of $376,287 or $0.01 basic and diluted per share during the
corresponding period of 2015.
Operational Results
Silver equivalent production for the first quarter of 2016
increased 14% to 715,933 oz1 compared to 627,058 oz in
the first quarter of 2015. Silver production for the first quarter
of 2016 increased 11% to 403,447 oz compared the first quarter of
2015. Gold production for the first quarter of 2016 decreased by
14% to 1,497 oz compared to 1,750 oz in the corresponding period of
2015. Copper production increased by 55% to 1,350,912 lbs compared
to 872,884 lbs in the first quarter of 2015. Total mill feed
processed during the first quarter of 2016 was 140,116 dry tonnes
compared to 114,453 dry tonnes during the first quarter of 2015, an
increase of 22%.
At the Avino Mine, silver equivalent ounces1 produced
during the first quarter totalled 474,206 compared to 319,216
during the first quarter of 2015, an increase of 48%. The
production increase can be attributed to the use of both Mill
Circuit 2 and Mill Circuit 3 to process mill feed from the Avino
Mine whereas in the corresponding quarter last year, only Mill
Circuit 3 was used.
At the San Gonzalo Mine, silver equivalent ounces1
produced during the first quarter of 2016 totalled 241,727
representing an increase of 14% compared to the first quarter of
2015. All-in sustaining cash costs during the first quarter of 2016
were $11.29 per AgEq
ounce1 compared to $12.36
during the first quarter of 2015, a decrease of 9%.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq
ounce1 during the first quarter of 2016 were
$11.29 compared to $12.36 during the corresponding period of 2015, a
decrease of 9%.
Capital expenditures during the first quarter of 2016, net of
concentrate proceeds of $5.6 million,
were $1,234,509 compared to
$445,466 during the first quarter of
2015.
Capital expenditures relate to the Avino mine advancement and
mining and production equipment to advance operations at the San
Gonzalo, Avino, and Bralorne mines.
Bralorne Mine Update
During the first quarter of 2016, Bralorne continued to prepare
and evaluate a strategic mine plan, including an assessment of more
cost effective mining methods and capital expenditures needed to
bring the project to a profitable position. The Company has
acquired new mining equipment including two new scoop trams and a
rock breaker from Sandvik, and a loader from Caterpillar as well as
a new medical facility and woman's dry. Further, the Company has
ordered a new development jumbo from Sandvik and expects to take
delivery in the coming months. This brand new equipment will help
to reduce maintenance costs while increasing mining productivity
and efficiency when the project resumes operations. Ongoing
maintenance and improvements continued in 2015 and the Company has
been reviewing the requirements to increase processing capacity
should the resources and mine plan prove feasible and viable. A
raise to the embankment dam for the tailings storage facility was
completed in October 2015 and the
Company is currently in the process of obtaining the permits to
resume processing and mining activities from British Columbia's Ministry of Energy &
Mines and Ministry of Environment.
In February 2016, Bralorne, in
conjunction with North Island College, the government and First
Nations completed a 4 month long underground mining fundamentals
educational cohort for 12 students from St'at'imc First Nation
communities around Lillooet.
Following three months of classroom instruction, Bralorne provided
support and access to the mine site for hands-on training. All 12
students graduated the program with a number of industry
certification tickets which will help towards Bralorne's long-term
goal of enhancing the local labour force. The Company is
maintaining open lines of communication with First Nations
communities, and management continues its efforts to build
meaningful positive relationships with its stakeholders.
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 May 17, 2016 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 Mr.
Chris Sampson, P.Eng, BSc, Avino
consultant and Mr. Jasman Yee,
P.Eng, Avino director; Avino's Bralorne Mine project is under the
supervision of Fred Sveinson, B.A.,
BSc, P.Eng, Avino Senior Mining Advisor. These individuals are
qualified persons ("QP") within the context of National Instrument
43-101. The respective QP's have reviewed and approved all the
applicable technical data in this press release.
Outlook
Avino's mission is to create shareholder value through
profitable organic growth at the Avino Property and the strategic
acquisition and advancement of mineral exploration and mining
properties. We are committed to expanding our operations and
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 and improve profitable mining operations while
managing operating costs and achieving efficiencies;
- Advance the Bralorne project towards profitable
production;
- Explore regional targets on the Avino Property followed by
other properties in our portfolio;
- Assess the potential for processing the oxide tailings resource
from previous milling operations (PEA issued in 2012); and
- Identify and evaluate potential projects for acquisition.
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.
1. For comparison purposes, the silver equivalent
ratio has been calculated using metal prices of $14.84 oz Ag, $1,180 oz Au and $2.12 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.
2. The Company reports non-IFRS measures which include cash
cost per silver equivalent ounce, all-in sustaining cash cost per
ounce, 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.
SOURCE Avino Silver & Gold
Mines Ltd.