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AVINO REPORTS Q1 2022 FINANCIAL RESULTS

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AVINO REPORTS Q1 2022 FINANCIAL RESULTS

 

 

 

 

 

Generates Record Quarterly Revenue and Mine Operating Income

 

Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) released its consolidated financial results for the Company’s first quarter 2022. The Financial Statements and Management’s Discussion and Analysis (MD&A) can be viewed on the Company’s website at www.avino.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

 

“We are very pleased with the strong start to the year, highlighted by record revenues and mine operating income,” said David Wolfin, President and CEO. “We had an outstanding first quarter and our financial performance demonstrates strong operational achievements that generated $11.1 million in revenues and $4.7 million in mine operating income, with earnings per share of $0.01 and operating cash flow and adjusted earnings per share of $0.03. During the quarter, we maintained strong and consistent margins. The closing of the acquisition of La Preciosa sets us on the pathway to expand our current mining complex through regional growth with the goal of achieving intermediate producer status. Together with exciting drill results from La Potosina and the Oxide Tailings, the events of the quarter are just the beginning of an important time in Avino’s history, and we are looking forward to the remainder of the year and beyond.”

 

1st Quarter 2022 Highlights

 

Strong Q1 2022 Financial Performance with Record Revenues and Mine Operating Income

  • Record revenues and mine operating income, with revenues of $11.1 million and mine operating income of $4.7 million, earnings per share of $0.01 and operating cash flow generated (pre-working capital adjustments) per share of $0.03.

 

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, consisting of $15.3 million cash and the remaining in equity on closing, and $5 million due within 12 months of closing. Further contingent consideration including cash, royalties and a mineral reserve discovery payment.

 

La Potosina Exploration Results Continue to Impress

 

  • On March 9, 2022, the Company announced drill results from the La Potosina area of the Avino property, including 668 g/t AgEq over 2.95 metres. These results are following up on historic results from 2011, which included 2,737 g/t AgEq over 0.40 metres.

 

Advanced the Oxide Tailings Project

  • With the release of the results from the 110 drill-hole program, the Company is moving forward with a comprehensive metallurgical testwork program to progress this project to the next phase of development.

 

Working Capital & Liquidity at March 31, 2022

  • The Company’s cash balance at March 31, 2022, totaled $11.7 million compared to $24.8 million at December 31, 2021. Working capital totaled $14.5 million at March 31, 2022, compared to $31.6 million at December 31, 2021. Both of these figures have increased on a net basis following the upfront consideration payment of $15.3 million and addition of $5 million note payable to Coeur for the acquisition La Preciosa.

 

First Quarter 2022 Financial Highlights

 

  • Record revenues of $11.1 million
  • Record mine operating income of $4.7 million, $5.2 million net of non-cash depreciation and depletion
  • Net income of $0.6 million, or $0.01 per share
  • Cash costs per silver equivalent payable ounce sold1 – $11.81 per ounce
  • All in sustaining cash cost per silver equivalent payable ounce sold1 – $19.90 per ounce
  • Earnings before interest, taxes, depreciation and amortization1 of $2.8 million
  • Adjusted earnings1 of $3.4 million, or $0.03 per share
  • Operating cash flows (before working capital changes) of $3.7 million, or $0.03 per share1

 

Financial Highlights

 

HIGHLIGHTS

(Expressed in 000’s of US$)

First   

Quarter 2022

First

Quarter 2021

 

Change

 

First
Quarter 2022
Fourth
Quarter 2021
Change
Financial Operating Performance
Revenues $ 11,050 $ 29 -% $ 11,050 $ 9,318 19%
Mine operating income (loss) $ 4,744 $ (680) 798% $ 4,744 $ 4,406 8%
Net income (loss) $ 646 $ (1,818) 136% $ 646 $ 2,629 -75%
Earnings (losses) before interest, taxes and amortization (“EBITDA”)1 $ 2,777 $ (1,740) 260% $ 2,777 $ 4,821 -42%
Adjusted earnings (losses)1 $ 3,350 $ (944) 455% $ 3,350 $ 4,746 -29%
Cash flow from operations before working capital changes $ 3,652 $ (1,093) 434% $ 3,652 $ 4,020 -9%
Per Share Amounts (diluted)
Earnings (loss) per share $ 0.01 $ (0.02) 150% $ 0.01 $ 0.03 -67%
Adjusted earnings (loss)1 per share $ 0.03 $ (0.01) 400% $ 0.03 $ 0.05 -40%
Cash flow per share1 $ 0.03 $ (0.01) 400% $ 0.03 $ 0.04 -25%
HIGHLIGHTS

(Expressed in 000’s of US$)

March 31,
2022
March 31,
2021
Change  

March 31,
2022

 

December

31, 2021

Change
Liquidity & Working Capital
Cash $ 11,686 $ 27,030 -57% $ 11,686 $ 24,765 -53%
Working capital $ 14,528 $ 31,220 -53% $ 14,528 $ 31,635 -54%
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
earnings, 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 of the MD&A for
further information and detailed reconciliations.

 

 

Capital Expenditures:

 

Cash capital expenditures company-wide for the first quarter 2022 were $0.9 million compared to $0.4 million for first quarter 2021. Expenditures relate to exploration drilling costs on the Avino property and on TSF #1, which contains the Oxide Tailings Resource, and costs related to the construction of the dry-stack tailings storage facility. The Company also added an additional $1.0 million in leased capital equipment, including a new underground scooptram.

 

Operational Highlights and Overview

 

HIGHLIGHTS

(Expressed in US$)

First   

Quarter 2022

First   

Quarter 2021

 

Change

First     

Quarter 2022

Fourth
Quarter 2021
 

Change1

Operating
Tonnes Milled 111,138 100% 111,138 103,513 7%
Silver Ounces Produced 164,358 100% 164,358 163,933 -%
Gold Ounces Produced 801 100% 801 2,158 -63%
Copper Pounds Produced 1,217,349 100% 1,217,349 1,128,728 8%
Silver Equivalent Ounces1 Produced 457,798 100% 457,798 541,432 -15%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2 495,109 100% 495,109 417,881 18%
Cash Cost per Silver Equivalent Payable Ounce1,2,3 $ 11.81 $ 100% $ 11.81 $ 9.57 23%
All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2,3 $ 19.90 $ 100% $ 19.90 $ 17.24 15%
1. In Q1 2022, AgEq was calculated using metals prices of $23.94 oz Ag, $1,874 oz Au and $4.53 lb Cu. In Q4 2021, AgEq was calculated using metals prices of $23.32 oz Ag, $1,783 oz Au and $4.40 lb Cu. Q4 2021 was the most recent quarter of consolidated production and is most appropriate for comparison purposes, as there was no production for Q1 2021. 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, 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 and all-in sustaining cash cost per payable ounce. 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 of the MD&A for further information and detailed reconciliations.

 

 

During Q1 2022, underground mining operations continued to ramp up with consolidation production for the quarter of 457,798 silver equivalent ounces consisting of 164,358 ounces of silver, 801 ounces of gold, and 1,217,349 pounds of copper.

 

Underground mining operations are now hauling between 1,400 and 1,900 tpd to surface on a daily basis, with the mill operating at a similar capacity. The Company is working towards achieving nameplate capacity of 2,500 tpd.

 

Exploration Update – 2022 Drill Program

 

The Company has budgeted 15,000 metres of drilling in 2022, with a focus on La Potosina, at depths below the current Elena Tolosa production area and further drilling of 17 additional holes on the Oxide Tailings project. To date, the Company has completed 5,075 metres of drilling in 2022.

 

During the quarter, the Company announced drill results from Phase 2 of the 2021 drill campaign which included over 15,500 metres of drilling focusing on several targets.

 

The initial results from La Potosina were announced in early March and included 2,400 metres of drilling. This area of the Avino property has been known to host high-grade, low suphidation style mineralization similar to our San Gonzalo mine. The La Potosina area is only 3 kms from the San Gonzalo Mine and 5 kms from the mill facilities at the Avino mine.

 

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, and 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, and are disclosed in addition to the prescribed IFRS measures provided in the Company’s MD&A.


About Avino

 

Avino is primarily 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 mineral exploration and mining properties. 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.

 

Posted May 12, 2022

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