Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE: ASM) (FSE: GV6) a growing silver producer in Mexico, released today its consolidated financial results for the Company’s fourth quarter and year end 2022. The earnings should be read in conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis for the corresponding period, which can be viewed on the Company’s website at www.avino.com, or on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.
Fourth Quarter 2022 Financial Highlights
Full Year 2022 Financial Highlights
“We are very pleased to report that we have posted record revenue for the fourth quarter and the full year of 2022. This year was highlighted by record 3rd and 4th quarterly production levels not seen in Avino’s recent history as we increased our mill throughput by 228% year over year to almost 542,000 tonnes. This reflects the steady ramp up at the Avino mine,” said David Wolfin, President and CEO. “In a year impacted by inflation, global conflicts, and an uneasy economic outlook, we have demonstrated resilient operational achievements at Avino that have generated a significant 294% increase of yearly revenues to $44.2 million and $15.1 million in yearly mine operating income. We are focused on our clear path to transformation growth, with a collective effort of initiative, resilience, and once again strong cost management both corporately and at the mine site. We remain well-positioned to manage through any near-term pressures arising from an overall economic slowdown and focused on delivering the best performance to our shareholders and stakeholders, while executing on our growth plan to become an intermediate producer in Mexico.”
|(Expressed in 000’s of US$)||Fourth
|Financial Operating Performance|
|Revenues||$||14,649||$||9,318||57 %||$||44,187||$||11,228||294 %|
|Mine operating income||$||4,356||$||4,406||-1 %||$||15,062||$||3,547||325 %|
|Net income (loss)||$||1,296||$||2,629||-51 %||$||3,096||$||(2,057)||251 %|
|Earnings before interest, taxes and amortization (“EBITDA”)3||$||3,207||$||4,821||-33 %||$||10,263||$||443||2217 %|
|Adjusted earnings3||$||4,026||$||4,746||-15 %||$||10,239||$||2,298||346 %|
|Cash provided by operating activities||$||3,320||$||3,518||-6 %||$||11,831||$||109||NM%|
|Per Share Amounts|
|Earnings (loss) per share||$||0.01||$||0.03||-67 %||$||0.03||$||(0.02)||250 %|
|Adjusted earnings per share3||$||0.03||$||0.05||-33 %||$||0.08||$||0.02||267 %|
(Expressed in 000’s of US$)
|Liquidity & Working Capital|
|Cash||$||11,245||$||10,920||3 %||$||11,245||$||24,765||-55 %|
|Working capital3||$||8,821||$||12,273||-28 %||$||8,821||$||31,635||-72 %|
Operating Highlights and Overview
|(Expressed in US$)||Fourth
|Tonnes Milled||150,292||103,513||45 %||541,823||165,304||228 %|
|Silver Ounces Produced||309,856||163,933||89 %||985,195||245,372||302 %|
|Gold Ounces Produced||2,426||2,158||12 %||5,778||3,386||71 %|
|Copper Pounds Produced||1,540,851||1,128,728||37 %||6,504,177||1,869,306||248 %|
|Silver Equivalent Ounces1 Produced||770,127||541,432||42 %||2,655,502||842,373||215 %|
|Concentrate Sales and Cash Costs|
|Silver Equivalent Payable Ounces Sold2||756,536||417,881||81 %||2,449,704||524,993||367 %|
|Cash Cost per Silver Equivalent Payable Ounce1,2,3||$||11.76||$||9.08||30 %||$||10.34||$||8.07||28 %|
|All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2,3||$||18.63||$||17.24||8 %||$||17.91||$||24.07||-26 %|
Working Capital & Liquidity at December 31, 2022
The Company’s cash balance at December 31, 2022, totaled $11.2 million compared to $24.8 million at December 31, 2021. Working capital totaled $8.8 million at December 31, 2022, compared to $31.6 million at December 31, 2021.
4th Quarter and FY 2022 Highlights
Closing of Strategic Acquisition of La Preciosa Silver Project from Coeur Mining Inc.
Beats Yearly Silver Equivalent Production Estimate at Avino; Ramped Up to 3.0 Million AgEq Oz Annualized Production During 2nd Half of 2022
Dry-Stack Tailings Facility Commissioned
Avino ET Area Drills Higher Grade Silver and Copper in Multiple Holes
Avino Receives ESR Award:
Fourth quarter cash capital expenditures company-wide were $2.7 million, bringing the year-to-date total to $8.9 million, compared to $3.2 million during 2021, within the range as previously disclosed in the Avino 2022 Outlook press release which can be found here on the Company’s website. This figure also includes exploration expenditures at prospective areas around the Avino Property, such as La Potosina and Guadalupe, which has led to inaugural mineral resource estimates on both deposits.
Avino continues to create value for all stakeholders and supports the communities that host the Avino mine with the new dry-stack tailings project, the acquisition of La Preciosa, the continued replacement of mineral resources, and the strengthening of local partnerships as part of our long-term commitment to the community. In line with Avino’s policy of local employment, Mexican nationals account for 100% of the mine work force. Currently there are 452 direct jobs at the mine, which has increased substantially since the restart of operations in 2021, and this translates to over 1,200 indirect jobs in Durango, Mexico. In addition, Avino is actively increasing its workforce diversification by hiring more women for historically male-dominated roles through targeted recruitment and development programs. Currently at site, 10 – 15% of the labor force is female.
We continue to invest in sustainable economic community projects such as school building maintenance, street and road maintenance, water irrigation work, a reforestation campaign of native species, and by providing school supplies. Perhaps most importantly, we are providing information and education about mining to the youngest in the community, by showing the Company’s direct interest in them and their families. Our goal is to teach the children in the communities about the mine, what we do there, how minerals are important to our daily lives, and to positively foster a generation of future miners.
Peter Latta, P.Eng, MBA, VP Technical Services, Avino who is a qualified person within the context of National Instrument 43-101 has reviewed and approved the technical data in this news release.
The financial results in this news release include references to cash flow per share, cash cost per silver equivalent ounce, all-in sustaining cash cost per silver equivalent ounce, EBITDA, and adjusted earnings/losses, all of which are non-IFRS measures. These measures are 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. For a reconciliation of non-GAAP and GAAP measures, please refer to the “Non-IFRS Measures” section of the Company’s Management Discussion and Analysis dated March 28, 2023 for the year ended December 31, 2022, which is incorporated by reference within this news release and is available on SEDAR at www.sedar.com.
Avino is a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company’s silver, gold and copper 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 and the strategic acquisition of the La Preciosa property. Avino currently controls mineral resources, as per NI 43-101, that total 368 million silver equivalent ounces, within our district-scale land package. We are committed to managing all business activities in a safe, environmentally responsible, and cost-effective manner, while contributing to the well-being of the communities in which we operate.
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