The Prospector News

Avino Reports Q2 2020 Financial Results

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Avino Reports Q2 2020 Financial Results

 

 

 

 

 

Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6)  released today its consolidated financial results for the Company’s second quarter ended June 30, 2020. The Financial Statements and Management’s 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.

 

David Wolfin, President and CEO commented, “Similar to many other mining companies, Avino’s financial performance for the second quarter was impacted by the temporary mine shutdown due to Covid-19, which in turn resulted in decreased production.

 

At the beginning of June, the Company announced a phased ramp-up of operational activities and a production restart.  As we head into the second half of the year, our plans to commence the 2020 exploration program, as well as connect the underground levels at the Avino Mine to allow for a higher haulage rate to surface for processing, have been put on hold with the current strike action.

 

I would like to thank our employees globally for their dedication and commitment to safety during these challenging times. The health and wellness of all of our employees and stakeholders continues to be imperative along with protecting our shareholder’s interests.”

 

Second Quarter 2020 Financial Highlights

 

  • Revenues from mining operations of $4.8 million, down 38% from Q2 2019
  • Mine operating income of $0.8 million, up 166% from Q2 2019
  • Loss before interest, taxes, depreciation, and amortization 2 of $0.8 million
  • Adjusted EBITDA2 of $2.0 million
  • Net loss from continuing operations of $1.1 million, or $0.01 per share
  • Consolidated cash costs2 of $10.92 per silver equivalent payable ounce1
  • Consolidated all-in sustaining cash cost (“AISC”)2 of $16.37 per silver payable equivalent ounce1
  • Working capital of $13.8 million
  • Reduction in term facility and equipment debt by $2.2 million since December 31, 2019
1. In Q2, 2020, AgEq was calculated using metals prices of $16.38 oz Ag, $1,707 oz Au and $2.45 lb Cu. In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 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$)

Second Quarter
2020
Second Quarter
2019
Change YTD

2020

YTD

2019

Change
Financial      
Revenues $ 4,840 $ 7,813 -38% $ 11,956 $ 14,524 -18%
Mine operating income $ 787 $ 296 166% $ 1,630 $ 352 363%
Net loss from continuing operations $ (1,111) $ (125) -789% $ (1,343) $ (664) -102%
Net loss including discontinued operations $ (1,276) $ (166) -669% $ (1,508) $ (776) -94%
Cash $ 10,386 $ 3,405 205% $ 10,386 $ 3,405 205%
Working capital $ 13,797 $ 8,665 59% $ 13,797 $ 8,665 59%
Earnings before interest, taxes and amortization
(“EBITDA”)1
$ (797) $ 609 -231% $ (425) $ 658 -164%
Adjusted EBITDA1 $ 1,958 $ 350 458% $ 2,349 $ 350 567%
Per Share Amounts      
Loss per share from cont. operations  – basic $ (0.01) $ -100% $ (0.02) $ (0.01) -100%
Loss per share – basic $ (0.02) $ -100% $ (0.02) $ (0.01) -100%
Cash Flow per share (YTD)1 – basic $ $ 0.01 -100% $ $ 0.01 -100%
                       
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 the first half of 2020 were $0.7 million compared to $4.9 million for the corresponding period in 2019, with the decrease 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, and potentially into 2021.

 

Operational Highlights and Overview

 

 

HIGHLIGHTS

 

(Expressed in US$)

Second Quarter
2020
Second Quarter
2019
Change YTD

2020

YTD

2019

Change
Operating      
Tonnes Milled 40,190 200,873 -80% 204,286 398,560 -49%
Silver Ounces Produced 50,581 246,129 -78% 317,299 514,528 -38%
Gold Ounces Produced 404 1,609 -75% 1,935 3,422 -43%
Copper Pounds Produced 459,767 1,136,113 -60% 2,267,939 2,198,815 3%
Silver Equivalent Ounces1 Produced 158,286 599,493 -74% 842,230 1,214,512 -31%
Concentrate Sales and Cash Costs      
Silver Equivalent Payable Ounces Sold3 322,886 618,894 -48% 897,953 1,141,521 -21%
Cash Cost per Silver Equivalent Payable Ounce1,2,3 $ 10.92 $ 10.89 -% $ 10.22 $ 11.14 -8%
All-in Sustaining Cash Cost per Silver Equivalent
Payable Ounce1,2,3
$ 16.37 $ 15.61 5% $ 15.42 $ 15.89 -3%
                       
1.  In Q2, 2020, AgEq was calculated using metals prices of $16.38 oz Ag, $1,707 oz Au and $2.45 lb Cu. In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 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, 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.                      

 

As a result of the temporary shutdown due to COVID-19, all production results in Q2 2020 were lower than anticipated compared to Q2 2019. In addition, all production for the quarter came from the Avino Mine only. Silver equivalent production in Q2 2020 decreased by 56% compared to Q2 2019.  Copper production decreased by 54%, with silver and gold production decreased by 52 and 50%, respectively. This was offset by higher than planned grades, as well as higher recovery rates as a result of the grade increase and metallurgical improvements. 

 

Operational Overview

 

Consolidated Production Tables

 

Q2 2020
Production by Mine Tonnes
Processed
Silver
Oz
Gold
Oz
Copper
Lbs
AgEq
Avino 40,190 50,581 404 459,767 158,286
Historic Above Ground Stockpiles
Consolidated 40,190 50,581 404 459,767 158,286
YTD 2020
Production by Mine Tonnes
Processed
Silver
Oz
Gold
Oz
Copper
Lbs
AgEq
Avino 199,575 312,819 1,916 2,263,082 835,370
Historic Above Ground Stockpiles 4,711 4,481 19 4,857 6,860
Consolidated 204,286 317,299 1,935 2,267,939 842,230

 

 

Q2 2020
Grade & Recovery by Mine Grade
Ag g/t
Grade
Au g/t
Grade
Cu %
Recovery
Ag %
Recovery
Au %
Recovery
Cu %
Avino 43 0.40 0.58 90% 79% 90%
Historic Above Ground Stockpiles
Consolidated 43 0.40 0.58 90% 79% 90%
YTD 2020
Grade & Recovery by Mine Grade
Ag g/t
Grade
Au g/t
Grade
Cu %
Recovery
Ag %
Recovery
Au %
Recovery
Cu %
Avino 54 0.40 0.58 90% 75% 88%
Historic Above Ground Stockpiles 59 0.31 0.15 50% 41% 31%
Consolidated 54 0.40 0.57 89% 74% 87%
               
* In Q2, 2020, AgEq was calculated using metals prices of $16.94 oz Ag, $1,584 oz Au and $2.56 lb Cu. In Q2, 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.              

 

The Company continues to explore the potential of dry stack tailings as discussed earlier in the year as well as automation upgrades which are still planned and budgeted for. In addition, during the second quarter equipment was installed in Mill Circuit 4 to help boost metallurgical recovery on gold and to a lesser extent silver.

 

Exercise of Warrants

 

At the start of the third quarter, the Company received proceeds from the exercise of warrants. The Company will use the proceeds to execute on its operational plans.

 

Mine Update

 

Further to the company’s press release dated July 10, 2020, good-faith negotiations with representatives of the authorized union are ongoing and an update will be provided when further information is available. 

 

 

Posted August 12, 2020

Share this news article

MORE or "UNCATEGORIZED"


Orea Announces Closing of Oversubscribed Non-Brokered Private Placement

Orea Mining Corp. (TSX: OREA) (OTCQB: OREAF) (FSE: 3CG) is please... READ MORE

January 26, 2023

CANADA SILVER COBALT RELEASES SILVER ASSAY OF 29,165 g/t (850 oz/ton) FROM CONCENTRATE OF CASTLE MINE WASTE ROCK

Canada Silver Cobalt Works Inc. (TSX-V: CCW) (OTC: CCWOF) (Frankf... READ MORE

January 26, 2023

Guanajuato Silver Produces Record 836,375 AgEq Ounces in Q4

Sees 19% Q4 Production Increase Over Q3   Guanajuato Silver Comp... READ MORE

January 26, 2023

Argentina Lithium Drilling Extends Lithium Brine Zone at Rincon West

Argentina Lithium & Energy Corp. (TSX-V: LIT) (FSE: OAY3) (O... READ MORE

January 26, 2023

NEVADA KING ANNOUNCES SIGNIFICANT SILVER INTERCEPTS FROM ITS 2021 ATLANTA DRILL PROGRAM

Nevada King Gold Corp. (TSX-V: NKG) (OTCQX: NKGFF) is pleased t... READ MORE

January 26, 2023

We acknowledge the [financial] support of the Government of Canada.

Government of Canada Supported
Copyright 2023 The Prospector News