NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, May 10, 2017 /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 30, 2017.
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.
"We are pleased to commence reporting in USD, which will better
reflect the Company's business activities and will, therefore,
improve investors' ability to compare the Company's financial
results with other publicly traded mining companies. Our Q1 results
reflect improvements in revenues, operating income, and net
income. We remain focused on our objectives which include our
expansion plans announced in January that are progressing very
well, and we are confident that the implementation of these
important plans will continue to support the company's growth
efforts. We experienced lower production and development numbers in
the first quarter compared to the same period last year, except
gold production, which increased by 23%. While the results are
lower, due to lower grade material being mined, we are confident
that the company will achieve another solid year. Our team
continually looks to improve efficiencies, and we are very
appreciative of their support and dedication. Other key
achievements for the quarter included the commencement of the work
required for the expansion of Mill Circuit #4, the receipt of a
positive Preliminary Economic Assessment of the Oxide Tailings at
the Avino mine, and a review of possible alternatives to the
Tailings Storage Facility."
- David Wolfin,
President, CEO & Director, Avino
Silver & Gold Mines Ltd
FIRST QUARTER 2017 HIGHLIGHTS – IN $USD
- Generated revenues of $8.1
million from the sale of concentrates, a 306% increase from
the first quarter of 2016 due to the commencement of production
mining at the Avino mine during the second quarter of 2016
- Mine operating income of $3.5
million, a 168% increase compared to the first quarter of
2016
- Net income after taxes of $0.7
million or $0.01 per
share
- Working capital of $21.1
million
- Net earnings of $1.1 million
- Produced 604,643 silver equivalent ounces1,
including 320,082 ounces of silver, 1,837 ounces of gold and
1,024,853 pounds of copper
- Consolidated all-in sustaining cost ("AISC")2 was
$9.55 per payable silver equivalent
ounce, a 16% increase compared to $8.22 per ounce in the first quarter of 2016
- Average realized selling prices for silver and gold were
US$17.38 and US$1,218 per ounce, respectively
- Cash of $7.7 million and short
term investments consisting of cash of $10
million was on hand at the end of the quarter
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HIGHLIGHTS
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First
Quarter
2017
|
First
Quarter
2016
|
Change
|
Operating
|
|
|
|
|
|
Tonnes
Milled
|
136,686
|
140,116
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-2%
|
Silver Ounces
Produced
|
320,082
|
403,447
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-21%
|
Gold Ounces
Produced
|
1,837
|
1,497
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23%
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Copper Pounds
Produced
|
1,024,853
|
1,350,912
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-24%
|
Silver Equivalent
Ounces1 Produced
|
604,643
|
715,933
|
-16%
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Concentrate Sales
and Cash Costs
|
|
|
|
|
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Silver Equivalent
Ounces Sold2
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524,356
|
150,507
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237%
|
Cash Cost per Silver
Equivalent Ounce2,3
|
$
|
8.01
|
$
|
4.11
|
95%
|
All-in Sustaining
Cost per Silver Equivalent Ounce2,3
|
$
|
9.55
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$
|
8.22
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16%
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Average Realized
Silver Price per Ounce
|
$
|
17.38
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$
|
16.42
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6%
|
Average Realized Gold
Price per Ounce
|
$
|
1,218
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$
|
1,194
|
2%
|
Average Realized
Copper Price per Tonne
|
$
|
5,873
|
-
|
-%
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Financial
|
|
|
|
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Revenues
|
$
|
8,127,863
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$
|
2,002,728
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306%
|
Mine Operating
Income
|
$
|
3,460,843
|
$
|
1,291,889
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168%
|
Net Income
(Loss)
|
$
|
721,305
|
$
|
42,246
|
1,607%
|
Cash
|
$
|
7,654,982
|
$
|
4,637,163
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65%
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Working
Capital
|
$
|
21,133,853
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$
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2,900,349
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629%
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Shareholders
|
Earnings (Loss) per
Share ("EPS") – Basic
|
$
|
0.01
|
$
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0.00
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100%
|
Cash Flow per Share
(YTD)3
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$
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0.04
|
$
|
0.02
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100%
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1. For
comparison purposes, the silver equivalent ratio has been
calculated using metal prices of $17.42 oz Ag, $1,220 oz Au and
$2.63 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.
Metal production is expressed in terms of silver equivalent
ounces, (oz Ag Eq), the formula for which depends on the copper,
gold and silver metal prices used in each period and hence are only
indicative.
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2. "Silver
equivalent ounces sold" for the purposes of cash costs and all-in
sustaining costs consists of the sum of 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.
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3. 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.
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Financial
Results
The Company generated revenues of $8.1
million during the first quarter of 2017; a 306% increase
compared to the first quarter of 2016. The increase is a result of
the commencement of production mining at the Avino Mine.
Mine operating income was $3.5
million during the first quarter of 2017, an increase of
$2.2 million or 168% from
$1.3 million in 2016. During the
first quarter of 2017, net income increased by 1,607% to 0.7
million or $0.01 per share, compared
to net income of $42 thousand or
$0.00 basic and diluted per share
during the corresponding period of 2016.
Operational Results
Silver equivalent production for the first quarter of 2017
decreased by 16% to 604,643 oz1 compared to 715,933
oz1 in the first quarter of 2016. Silver production for
the first quarter of 2017 decreased 21% to 320,082 oz compared to
403,447 oz in the first quarter of 2016. Gold production for the
first quarter of 2017 increased by 23% to 1,837 oz compared to
1,497 oz in the corresponding period of 2016. Copper production
decreased by 24% to 1,024,853 lbs compared to 1,350,912 lbs in the
first quarter of 2016. Total mill feed processed during the first
quarter of 2017 was 136,686 dry tonnes compared to 140,116 dry
tonnes during the first quarter of 2016, a decrease of 2%.
At the Avino Mine, silver equivalent ounces1 produced
during the first quarter of 2017 totalled 439,163 compared to
474,206 during the first quarter of 2016, a decrease of 7%. The
lower production is due to the lower grade material being
mined.
At the San Gonzalo Mine, silver equivalent ounces1
produced during the first quarter of 2017 totalled 165,480
representing a decrease of 32% compared to 241,727 in the first
quarter of 2016.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq
ounce1 during the first quarter of 2017 were
$9.55 compared to $8.22 during the corresponding period of 2016, an
increase of 16%.
All-in sustaining cash costs at San Gonzalo during the first
quarter of 2017 were $6.21 per AgEq
ounce1 compared to $8.22
during the first quarter of 2016, a decrease of 24%. All-in
sustaining cash costs at Avino during the first quarter of 2017
were $10.81, with no comparable
available as production mining commenced as of April 1, 2016.
Capital expenditures during the three months ended March 31, 2017, were $1,965,198 compared to $946,217 for the corresponding period of 2016
(net of concentrate proceeds of $4,294,464).
Capital expenditures relate to the Avino mine advancement
(including Mill Circuit #4) and mining and production equipment to
advance operations at the San Gonzalo, Avino, and Bralorne
mines.
Bralorne Mine Update
During the first quarter of 2017, the Company continued to
develop and review strategic operating plans to achieve a
profitable operation at Bralorne. The mine plan includes changing
the mining method to long hole mining, which is considered safer
and less labour intensive than previous methods employed, and is
expected to support a higher production rate. Engineering is in
progress to expand the mill and to upgrade the surface
infrastructure for a larger operation. Work in the mill during the
quarter was focused on demolishing the old ore and waste bins plus
the removal of all of the old crushing equipment to create room for
new larger components.
In February 2017, Bralorne, in
conjunction with North Island College, the B.C. Government and
First Nations completed a second educational cohort to provide
basic mining training for members of the St'at'imc First Nation in
Lillooet. Bralorne provided support and access to the mine
site for hands-on training. To date, 22 students have graduated
from the program, two of whom are now full time employees.
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, all 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 11, 2017 at 8:00 am
Pacific Daylight Time (11:00 am
Eastern Daylight Time).
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 is a silver and gold producer with a diversified pipeline
of gold, silver and base metals properties in Mexico and Canada employing approximately 500
people. Avino produces from its wholly owned Avino and San
Gonzalo Mines near Durango,
Mexico, and is currently planning for future production at
the Bralorne Gold Mine in British
Columbia, Canada. The Company's gold and silver 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 near Durango,
Mexico, and the strategic acquisition of mineral exploration
and mining properties. 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.
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.
The Company 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 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.
SOURCE Avino Silver & Gold
Mines Ltd.