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

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

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

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.