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Avino Reports Q1 2020 Financial Results

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Avino Reports Q1 2020 Financial Results

 

 

 

 

 

Avino Silver & Gold Mines Ltd. (TSX:ASM) (NYSE American:ASM) (FSE: GV6) released its consolidated financial results for the Company’s first quarter ended March 31, 2020. The Financial Statements and Management Discussion and Analysis (MD&A) 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.

 

David Wolfin, President and CEO commented, “Avino had a strong first quarter that included a 10% increase in silver equivalent payable ounces sold, a 6% increase in revenues and a significant increase in mine operating income compared to Q1 2019. We were also able to transition to full production from the Avino mine, in keeping with our scheduled mine plan. We have, as previously announced, placed the mine on care and maintenance, and are following the Mexican Government’s order to temporarily suspend operations. We look forward to bringing the Avino mine back into production when it is safe to do so. Above all, the health and wellness of our employees, stakeholders, and shareholders globally is our top priority, and we are working on back-to-work plans that we will be able to implement as soon as we are given the all-clear by both the Mexican and Canadian Governments.”

 

Financial Highlights and Overview

 

FIRST QUARTER 2020 FINANCIAL HIGHLIGHTS

 

  • Revenues from mining operations of $7.1 million, up 6% from Q1 2019
  • Mine operating income of $0.8 million, up significantly from $0.1 million for the same period in 2019
  • Net loss from continuing operations of $0.2 million, or $Nil per share
  • Earnings before interest, taxes, depreciation and amortization 2 and Adjusted EBITDA2 of $0.4 million
  • Consolidated cash costs2 of $9.83 per silver equivalent payable ounce1
  • Consolidated all-in sustaining cash cost 2 of $14.88 per silver payable equivalent ounce1
  • Working capital of $10.8 million, with $6.7 million consisting of cash, at the end of Q1 2020
  • Reduced term facility and equipment debt by $1.2 million during Q1 2020
1. In Q1, 2020, AgEq was calculated using metals prices of $16.94 oz Ag, $1,584 oz Au and $2.56 lb Cu. In Q1, 2019, AgEq was calculated using metals prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb Cu. Calculated figures may not add up due to rounding.
 
2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable 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 payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA, 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. See Non-IFRS Measures section for further information and detailed reconciliations.

 

 

 

HIGHLIGHTS
(Expressed in 000’s of US$)
First Quarter

2020

First Quarter

2019

 

Change

Financial
Revenues $ 7,116 $ 6,711 6%
Mine operating income $ 843 $ 56 1405%
Net loss from continuing operations $ (232) $ (539) 57%
Cash $ 6,698 $ 2,526 165%
Working capital $ 10,751 $ 10,507 2%
Earnings before interest, taxes and amortization (“EBITDA”)1 $ 372 $ 63 490%
Adjusted EBITDA1 $ 391 $ 15 2507%
Per Share Amounts
Loss per share (“EPS”) – basic $ (0.00) $ (0.01) 100%
Cash flow per share (YTD)1 – basic $ 0.00 $ 0.00 -%
 
1. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA, 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. See Non-IFRS Measures section for further information and detailed reconciliations.

 

Costs and Capital Expenditures:

 

Capital expenditures for Q1 2020, were $0.5 million compared to $2.5 million for the corresponding period in 2019, with the decrease is due mostly to the timing of expenditures and a cautious approach regarding the current COVID-19 pandemic. We expect that this amount will increase later into 2020, as certain capital expenditures have been pushed into the latter half of the year.

 

Operational Highlights and Overview

 

 

HIGHLIGHTS

(Expressed in US$)

First Quarter

2020

First Quarter

2019

 

Change

Operating
Tonnes Milled 164,096 197,687 -16%
Silver Ounces Produced 266,718 268,399 -1%
Gold Ounces Produced 1,531 1,813 -16%
Copper Pounds Produced 1,808,172 1,062,702 70%
Silver Equivalent Ounces1 Produced 683,944 615,019 11%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2 575,067 522,626 10%
Cash Cost per Silver Equivalent Payable Ounce1,2 $ 9.83 $ 11.44 -14%
All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2 $ 14.88 $ 16.22 -8%
 
1. In Q1 2020, AgEq was calculated using metals prices of $16.94 oz Ag, $1,584 oz Au and $2.56 lb Cu. In Q1 2019, AgEq was calculated using metals prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb Cu.
 
2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, 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 payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA, 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. See Non-IFRS Measures section for further information and detailed reconciliations.

 

 

Silver equivalent production in Q1 2020 increased by 11% compared to Q1 2019, with record copper quarterly production of over 1.8 million pounds.  The Avino Mine produced a record 262,238 silver ounces, the highest quarterly total achieved to date.

 

Operational Overview

 

Consolidated Production Tables

 

 

Q1 2020
Production by Mine Tonnes
Processed
Silver
Oz
Gold
Oz
Copper
Lbs
AgEq
Avino 159,385 262,238 1,512 1,803,315 677,084
Historic Above Ground Stockpiles 4,711 4,481 19 4,857 6,860
Consolidated 164,096 266,719 1,531 1,808,172 683,944

 

Q1 2020
Grade & Recovery by Mine Grade
Ag g/t
Grade
Au g/t
Grade
Cu %
Recovery
Ag %
Recovery
Au %
Recovery
Cu %
Avino 57 0.40 0.58 90% 74% 88%
Historic Above Ground Stockpiles 59 0.31 0.15 50% 41% 31%
Consolidated 57 0.40 0.57 89% 73% 86%

 

 
* In Q1, 2020, AgEq was calculated using metals prices of $16.94 oz Ag, $1,584 oz Au and $2.56 lb Cu. In Q1, 2019, AgEq was calculated using metals prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb Cu. Calculated figures may not add up due to rounding.

 

Increase in Talisker Resources Inc. Holdings

 

During the first quarter of 2020, the Company increased its position in Talisker by 3.29 million shares, up to 15.87 million common shares from 12.58 million at the end of 2019. The increase was made through the exercise of 6.29 million share purchase warrants at an exercise price of C$0.25 per share, and paid for using proceeds from the sale of 3 million Talisker common shares at an average price of $0.57 per share, thus the Company did not have to put up any cash to increase its position.

 

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, EBITDA and adjusted EBITDA, 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.

 

Qualified Person(s)

 

Peter Latta, P.Eng, MBA, Avino’s VP Technical Services, and Jasman Yee, P.Eng., Avino Director, both of whom are qualified persons within the context of National Instrument 43-101 have reviewed and approved the technical data in this document.

 

Posted May 6, 2020

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