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

• Revenues of $14.6 million
• Mine operating income of $4.4 million, $5.3 million net of non-cash costs of sales
• Net income of $1.3 million, or $0.01 per share
• Cash costs per silver equivalent payable ounce sold^1,2 – $11.76 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 – $18.63 per ounce
• Earnings before interest, taxes, depreciation and amortization ³ of $3.2 million
• Adjusted earnings³ of $4.0 million, or $0.03 per share
• Cash provided by operating activities of $3.3 million

 

Full Year 2022 Financial Highlights

• Revenues of $44.2 million
• Mine operating income of $15.1 million, $17.6 million net of non-cash costs of sales
• Net income of $3.1 million, or $0.03 per share
• Cash cost per silver equivalent payable ounces sold^1,2 – $10.34 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 – $17.91 per ounce
• Earnings before interest, taxes, depreciation and amortization³ of $10.3 million
• Adjusted earnings³ of $10.2 million, or $0.08 per share
• Cash provided by operating activities of $11.8 million

“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 3^rd and 4^th 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.”

 

Financial Highlights

 

Operating Highlights and Overview

 

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.

 

4^th Quarter and FY 2022 Highlights

Closing of Strategic Acquisition of La Preciosa Silver Project from Coeur Mining Inc.

• On March 21, 2022, the Company announced that it has closed the acquisition with Coeur to acquire the La Preciosa silver project, which is located adjacent to the Avino Mine in the State of Durango, Mexico, for upfront consideration of $29.7 million on closing and $5 million due within 12 months of closing, which has now been paid. Further contingent consideration including cash, royalties and a mineral reserve discovery payment. Currently the company is conducting community engagement in the nearby towns adjacent to the property to move forward with the growth plan.

 

Beats Yearly Silver Equivalent Production Estimate at Avino; Ramped Up to 3.0 Million AgEq Oz Annualized Production During 2^nd Half of 2022

• With over 2.65 million silver equivalent ounces produced during the year, the Company successfully beat the internal annual production estimate of 2.2 to 2.4 million silver equivalent ounces following the restart of mining operations in late 2021.
• 457,798 silver equivalent ounces were produced in Q1 2022, as the Company continued its ramp-up of production. Q1 2022 marked the second full quarter following the restart of operations in August 2021.
• 649,569 silver equivalent ounces were produced in Q2 2022, as the Company continued its ramp-up of production, with a significant increase shown over Q1 2022.
• A record 778,008 silver equivalent ounces were produced in Q3 2022, marking a 20% increase over Q2 2022.
• 770,127 silver equivalent ounces were produced in Q4 2022, which represents second highest production quarter in recent times and inline with Q3 2022 production.

 

Dry-Stack Tailings Facility Commissioned

• The installation and commissioning of the dry-stack tailings project has been completed and the facility is now fully operational. Avino chose dry-stack tailings for its environmental, safety and economic advantages. Dry-stack tailings improve the overall tailings facility safety and stability and reduces the need for fresh water by recycling the water contained in the tailings. In addition, dry-stack tailings require less storage area which results in a smaller environmental footprint.

 

Avino ET Area Drills Higher Grade Silver and Copper in Multiple Holes

• On June 13, 2022, the Company announced drill results from the Avino Elena Tolosa Area (“ET”) to define the continuity of widths and grades of the Avino vein extending significant potential depth of at least 290 metre down dip below the current development, the results confirm the mineralization continues and also contains significantly higher copper mineralization in the ET area. Click here to view full release.
• On October 11, 2022, the Company announced drill results from a further six holes at the Avino Elena Tolosa Area to define the continuity of widths and grades of the Avino vein extending significant potential depth of at least 290 metre down dip below the deepest levels of development. The results confirm the mineralization continues and also contains significantly higher copper mineralization in the ET area. Click here to view full release.
• On January 5, 2023, the Company announced assays results showing the Avino vein now extending 315 metres below the deepest level 17 mining area demonstrating the Avino vein is getting richer in copper. Click here to view full release.

 

Avino Receives ESR Award: 

• Avino received for the first time, the ESR “Empresa Socialmente Responsible ESR 2022” Award granted by the Mexican Center for Philanthropy (El Centro Mexicano para la Filantropia or Cemefi, and the Alliance for Corporate Social Responsibility (Alizanza por la Responsabilidad Social Empresarial or (AliaRSE)). The ESR® Award is obtained through a diagnostic process based on indicators reviewed and endorsed annually by a committee of experts in the various CSR areas, supported with documentary evidence, an assessment differentiated by company size and by maturity levels, and an external verification process. Avino continues to view its social responsibility with importance and care of our communities.
• Avino is committed to performing the CSR diagnostic processes with diligence each year to show our support and commitment to the local communities and the environment.

 

Capital Expenditures

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.

 

ESG Initiatives

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.

 

Qualified Person(s)

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.

 

Non-IFRS Measures

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.

 

About Avino

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.