NYSE American: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, Nov. 8, 2017 /CNW/ - Avino Silver &
Gold Mines Ltd. (ASM: TSX-V, ASM: NYSE American, GV6: FSE, "Avino"
or "the Company") is pleased to announce the consolidated
financial results for the Company's third quarter ended
September 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.
Effective January 1, 2017, the
Company changed its presentation currency to US dollars from
Canadian dollars. As a result, all dollar amounts in this news
release are expressed in US dollars, unless otherwise noted.
"We have achieved another productive quarter with solid
operational and financial results, and are confident that the
Company will achieve our internal projected production target for
the year. Our mission is to achieve shareholder value by focusing
on organic growth which includes our expansion plans at the Avino
mine in Mexico, with the addition
of Mill Circuit 4, now approximately 75% complete. Additionally, we
have drills turning at Avino, and a planned surface and underground
drill program at the Bralorne Mine in British Columbia. The support and dedication
of our teams in Mexico and
Canada are greatly appreciated and
instrumental to the success of our operations."
- David Wolfin,
President, CEO & Director, Avino
Silver & Gold Mines Ltd.
THIRD QUARTER 2017 HIGHLIGHTS – IN $USD
- Revenues of $8.4 million from the
sale of concentrates
- Mine operating income of $2.1
million
- Net loss after taxes of $0.7
million or $(0.01) per
share
- Working capital of $20.2 million,
an increase of 9% from the third quarter of 2016
- Cash of $3.8 million and short
term investments of $4.0 million at
the end of the quarter
- Produced 760,756 silver equivalent ounces¹, including 368,456
ounces of silver, 2,673 ounces of gold and 1,106,305 pounds of
copper
- Consolidated all-in sustaining cost ("AISC")2 was
$11.25 per payable silver equivalent
ounce
- Average realized selling prices for silver and gold were
US$16.81 and US$1,281 per ounce, respectively, and copper was
US$6,292 per tonne
Overall Performance and Highlights
|
|
|
|
HIGHLIGHTS (Expressed in US$)
|
Third Quarter
2017
|
Third Quarter
2016
|
Change
|
Operating
|
|
Tonnes
Milled
|
|
138,200
|
|
138,031
|
0%
|
Silver Ounces
Produced
|
|
368,456
|
|
410,908
|
-10%
|
Gold Ounces
Produced
|
|
2,673
|
|
1,813
|
47%
|
Copper Pounds
Produced
|
|
1,106,305
|
|
1,045,091
|
6%
|
Silver Equivalent
Ounces1 Produced
|
|
760,756
|
|
649,831
|
17%
|
Concentrate Sales
and Cash Costs
|
|
Silver Equivalent
Ounces Sold1,2
|
|
582,303
|
|
608,795
|
-4%
|
Cash Cost per Silver
Equivalent Ounce2,3
|
$
|
9.74
|
$
|
8.30
|
17%
|
All-in Sustaining
Cost per Silver Equivalent Ounce2,3
|
$
|
11.25
|
$
|
10.60
|
6%
|
Average Realized
Silver Price per Ounce
|
$
|
16.81
|
$
|
19.49
|
-14%
|
Average Realized Gold
Price per Ounce
|
$
|
1,281
|
$
|
1,328
|
-4%
|
Average Realized
Copper Price per Tonne
|
$
|
6,292
|
$
|
4,804
|
31%
|
Financial
|
|
Revenues
|
$
|
8,435,743
|
$
|
10,035,932
|
-16%
|
Mine Operating
Income
|
$
|
2,077,644
|
$
|
4,501,114
|
-54%
|
Net Income
(Loss)
|
$
|
(715,774)
|
$
|
847,263
|
-184%
|
Cash
|
$
|
3,758,731
|
$
|
11,365,451
|
-67%
|
Working
Capital
|
$
|
20,180,364
|
$
|
18,558,511
|
9%
|
Shareholders
|
|
Earnings (Loss) per
Share ("EPS") – Basic
|
$
|
(0.01)
|
$
|
0.02
|
N/A
|
Cash Flow per Share
(YTD)3 – Basic
|
$
|
0.09
|
$
|
0.10
|
-10%
|
1.
|
*For comparison
purposes, the silver equivalent ratio has been calculated using
metal prices of $17.45 oz Ag, $1,316 oz Au and $2.99 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.
|
"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.
|
|
|
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.
|
Financial
Results
The Company generated revenues of $8.4
million during the third quarter of 2017; a 16% decrease
compared to the third quarter of 2016. The decrease is a result of
lower realized silver prices during the period compared to the
third quarter of 2016.
Mine operating income was $2.1
million during the third quarter of 2017, which is a
decrease of 54% from the comparable quarter of 2016. The
decrease is mainly due to increased non-cash costs, such as
depreciation and depletion at the San Gonzalo Mine.
During the third quarter of 2017, a net loss of $0.7 million or $(0.01) loss per share was realized compared to
net income of $0.8 million or a
$0.02 per share during the
corresponding period of 2016. The decrease is mainly due to
lower realized silver and gold prices and non cash expenses such as
share based payments and depreciation and depletion expense.
Operational Results
Silver equivalent production for the third quarter of 2017
increased by 17% to 760,756 oz1 compared to 649,831
oz1 in the third quarter of 2016. Silver production for
the third quarter of 2017 decreased 10% to 368,456 oz compared to
410,908 oz in the third quarter of 2016. Gold production for the
third quarter of 2017 increased by 47% to 2,673 oz compared to
1,813 oz in the corresponding period of 2016. Copper production
increased by 6% to 1,106,305 lbs compared to 1,045,091 lbs in the
third quarter of 2016. Total mill feed processed during the third
quarter of 2017 was 138,200 dry tonnes compared to 138,031 dry
tonnes during the third quarter of 2016, an increase of 4%.
At the Avino Mine, silver equivalent ounces1 produced
during the third quarter of 2017 totalled 542,846 compared to
396,397 during the third quarter of 2016, an increase of 37%. The
higher production in silver equivalent ounces¹ is due to the higher
production ounces in the gold and copper.
At the San Gonzalo Mine, silver equivalent ounces1
produced during the third quarter of 2017 totalled 217,910
representing a decrease of 14% compared to 253,434 in the third
quarter of 2016 mainly due to the lower tonnage processed.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per silver equivalent
ounce1 during the third quarter of 2017 were
$11.25 compared to $10.60 during the corresponding period of 2016,
an increase of 6%.
All-in sustaining cash costs at San Gonzalo during the third
quarter of 2017 were $12.91 per
silver equivalent ounce1 compared to $8.66 during the third quarter of 2016, an
increase of 49%. All-in sustaining cash costs at Avino during the
third quarter of 2017 were $10.76,
compared to $11.34 during the third
quarter of 2016, a decrease of 5%.
Capital expenditures during the nine months ended September 30, 2017, were $8,717,491 compared to $9,933,504 for the corresponding period of
2016.
Capital expenditures in the current period relate to the Avino
mine advancement, mining and production equipment (including Mill
Circuit 4) to advance operations at the San Gonzalo, Avino, and
Bralorne mines.
Bralorne Mine Update
On November 3, the Company
received an approved Permit Amendment from the MEM (The Ministry of
Energy, Mines and Petroleum Resources). The Permit Amendment
provides a comprehensive and responsible permit which is an
important step in the Company's strategic plan to re-open the
Bralorne Gold Mine. With the receipt of this modern permit
the Company anticipates an easier and quicker transition to an
amended permit that will allow for future expansion.
A surface and underground drill program is now being planned to
update and increase the confidence in the resource base.
We continued to review strategic operating plans, and on
July 10, 2017, we published a
comprehensive news release outlining our plans which can be found
on our website at the following link:
http://www.avino.com/i/pdf/nr/2017-07-10_NR.pdf. Our proposed plan
involves opening the mine at a higher throughput rather than our
original plans to scale up the operations to reach the desired
throughput level.
Shares Sold through the ATM Offering
Further to the Company's press release dated August 4, 2017, the Company has placed
through its US agent, Cantor Fitzgerald & Co. (the
"Agent") a total of 10,000 common shares at an average price
of US$1.6737 per share during its
recent third quarter ending September 30,
2017, and commencing from the effective date of the
Prospectus Supplement dated August 4,
2017 (the "Prospectus Supplement"), filed for the
Company's at-the-market offering in the
United States ("ATM Offering"). Gross proceeds
of US$16,737 were raised.
The Prospectus Supplement was filed in the US pursuant to the
terms of the Company's registration statement on Form 10 (SEC File
No. 333-214396) (the "Registration Statement"), and in each
Province of Canada, except
Quebec, pursuant to the base shelf
prospectus dated November 10, 2016
(the "Base Shelf Prospectus"). The Prospectus
Supplement, Registration Statement, and Base Shelf Prospectus can
be viewed under the Company's profile on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
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 for analysts and
investors on Thursday, November 9,
2017, at 8:00 am Pacific Standard
Time (11:00 am Eastern Standard
Time).
Conference Call Numbers:
- 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 website within one hour following the
conclusion of the call.
Qualified Person(s)
Avino's Mexican projects are under the supervision of Mr.
Jasman Yee, P.Eng, Avino director,
and 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.
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;
- Complete the Mill Circuit 4 expansion to increase Avino Mine
production;
- Conduct a successful surface and underground drill program in
2017/18 to increase
and improve confidence in our resource base at Bralorne;
- Continue mine expansion drilling and explore regional targets
on the Avino property; and,
- Follow the recommendations made in the 2017 PEA on the oxide
tailings resource at the Avino Mine and assess the potential for
processing the oxide tailings resource.
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.