Avino Announces Financial Results for Fourth Quarter and Year End 2017
¹The Company reports non-IFRS measures which include cash cost per silver equivalent ounce, all -in sustaining cash cost per ounce, 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.
²In 2017, AgEq was calculated using metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb Cu. In 2016, AgEq was calculated using $17.10 oz Ag, $1,248 oz Au and $2.21 lb Cu .
ASM: TSX/NYSE American
Avino Silver & Gold Mines Ltd. T (604) 682 3701
Suite 900-570 Granville Street F (604) 682 3600
Vancouver, BC V6C 3P1 www.avino.com
April 2, 2018
Avino Announces Financial Results for Fourth Quarter and Year End 2017
Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American; FSE:GV6, "Avino" or "the Company") is pleased to announce the
consolidated financial results for the Company’s fourth quarter and year ended December 31, 201 7. The financial statements and
the management 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.
Effective January 1, 2017, the Company changed its presentation currency to US dollars from Canadian dollars. As a result, al l dollar
amounts in this news release are expressed in US dollars, unless otherwise noted.
FOURTH QUARTER 2017 HIGHLIGHTS
Generated revenues of $8.9 million from the sale of San Gonzalo and Avino concentrates
Mine operating income amounted to $3.4 million an increase of 25% over the same period of 2016
Net income after taxes amounted to $1.5 million or a Basic EPS of $0.03
Produced 637,012 silver equivalent ounces2, including 319,678 ounces of silver, 1,472 ounces of gold and 1,108,800
pounds of copper
Total consolidated cash cost1 was $7.90 per payable silver equivalent ounce²
Consolidated all-in sustaining cost1 (“AISC”) was $9.23 per payable silver equivalent ounce², an 8% decrease compared
to $10.01 per ounce in the fourth quarter of 2016
Average realized selling prices for silver and gold were $16.65 and $1,278 per ounce, respectively; and the average
realized copper price per tonne was $6,784
Cash of $3.4 million and short term investments consisting of cash of $1.0 million were on hand at the end of the
quarter
2017 HIGHLIGHTS
Generated revenues of $33.4 million from sales of San Gonzalo and Avino concentrates, an increase of 11% compared to
2016
Mine operating income was $11.4 million, an increase of 4% compared to 2016
Net income after taxes amounted to $2.7 million or a Basic EPS of $0.05
Operating cash flow before movements in working capital was $7.1 million or $0.13 per share - Basic
Produced 2,700,585 silver equivalent ounces, 2 including 1,394,203 million ounces of silver, 7,935 ounces of gold and
4,373,166 pounds of copper
Total cash cost1 was $8.65 per silver equivalent ounce2
All-in sustaining cost1 (“AISC”) was $10.11 per payable silver equivalent ounce2, a 2% decrease compared to $10.34 per
ounce in 2016
Average realized selling prices for silver and gold were $17.05 and $1,268 per ounce respectively; and the average
realized copper price per tonne was $6,251
Cash of $3.4 million and short term investments consisting of cash of $1.0 million were on hand at December 31, 2017
Invested $12.2 million in capital expenditures at the Avino and Bralorne mines
N E W S R E L E A S E
April 2, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Financial Results for Fourth Quarter and Year End 2017
Page 2
“We successfully achieved our internal production targets in 2017, and we are very close to the completion of Mill Circuit 4, a
significant investment in Avino’s future , while maintaining a solid financial position ” said David Wolfin, President and CEO. “During
the year, we delivered a positive PEA (“Preliminary Economic Assessment”) on the Oxide Tailings project, completed a 22-hole drill
program comprising 3,374 metres between San Luis and Elena Tolosa , and an additional drill program located to the East and to the
North of the Avino vein targeting three areas of mineralization. The drill results support the continuation of the extensive Avino vein
system. We delivered an 11% increase in revenue, an improvement in earnings, and maintained consistent silver equivalent
production levels. Avino is celebrating its 50th year in the mining industry, and this would not be possible without the support and
dedication of our teams in both Canada and Mexico.”
HIGHLIGHTS
(Expressed in US$)
Fourth
Quarter 2017
Fourth
Quarter 2016
Change Year 2017 Year 2016
Change
Operating
Tonnes Milled 129,555 134,668 -4% 541,935 544,336 0%
Silver Ounces Produced 319,678 419,355 -24% 1,394,203 1,612,060 -14%
Gold Ounces Produced 1,472 2,581 -43% 7,935 7,119 11%
Copper Pounds Produced 1,108,800 755,645 47% 4,373,166 4,206,585 4%
Silver Equivalent Ounces1 Produced 637,012 707,775 -10% 2,700,585 2,679,334 1%
Concentrate Sales and Cash Costs
Silver Equivalent Ounces Sold2 597,285 644,479 -7% 2,245,946 2,035,618 10%
Cash Cost per Silver Equivalent Ounce2,3 $ 7.90 $ 8.62 -8% $ 8.65 $ 8.48 2%
All-in Sustaining Cost per Silver Equivalent Ounce2,3 $ 9.23 $ 10.01 -8% $ 10.11 $ 10.34 -2%
Average Realized Silver Price per Ounce $ 16.65 $ 16.69 0% $ 17.05 $ 17.71 -4%
Average Realized Gold Price per Ounce $ 1,278 $ 1,194 7% $ 1,268 $ 1,258 1%
Average Realized Copper Price per Tonne $ 6,784 $ 5,313 28% $ 6,251 $ 4,850 29%
Financial
Revenues $ 8,883,647 $ 9,048,747 -2% $ 33,358,641 $ 30,105,336 11%
Mine Operating Income $ 3,363,245 $ 2,692,056 25% $ 11,383,511 $ 10,944,536 4%
Net Income (Loss) $ 1,496,381 $ 950,770 57% $ 2,653,461 $ 1,503,531 76%
Cash $ 3,371,478 $ 11,779,718 -71% $ 3,371,478 $ 11,779,718 -71%
Working Capital $ 16,544,762 $ 23,306,043 -29% $ 16,544,762 $ 23,306,043 -29%
Shareholders
Earnings (Loss) per Share ("EPS") – Basic $ 0.03 $ 0.02 50% $ 0.05 $ 0.04 25%
Cash Flow per Share (YTD)3 – Basic $ 0.05 $ 0.02 150% $ 0.13 $ 0.11 18%
1. In 2017, AgEq was calculated using metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb Cu. In 2016, AgEq was calculated using $17.10 oz Ag, $1,248 oz Au and
$2.21 lb Cu.
2. “Silver equivalent ounces sold” for the purposes of cash costs and all -in sustaining costs consists of the sum of 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 ounce, all-in sustaining cash cost per silver equivalent ounce, and cash flow
per share. These measures are widely used in the mining indu stry 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.
April 2, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Financial Results for Fourth Quarter and Year End 2017
Page 3
¹ In 2017, AgEq was calculated using metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb Cu. In 2016, AgEq was calculated using $17.10 oz Ag, $1,248
oz Au and $2.21 lb Cu.
Financial Results
The Company generated revenues of $33.4 million during 201 7; an 11% increase compared with 2016 , due to the Avino
Mine entering into production at levels intended by management effective April 1, 2016 , and were partially offset by lower
silver prices in the period . In 2015, and the first quarter of 2016, the Avino mine was in the evaluation phase and proceeds
from the sale of Avino Mine Concentrate were classified as a recovery of exploration and evaluation expenditures. Higher
copper prices were also a contributing factor to the increased revenue in 2017.
Mine operating income was $ 11.4 million duri ng 201 7, an increase of $ 0.5 million or 4% from
$10.9 million in 2016. During 2017, net income increased by $1.2 million to $ 2.7 million or $0.05 basic and diluted per
share, compared to net income of $ 1.5 million or $0.04 basic and $0.03 diluted per share during 2016. The primary reason
for the increase is the addition of revenue from the Avino Mine.
Operational Results
2017 Production Highlights
• Silver equivalent1 production - 2,700,585 oz*
• Silver production - 1,394,203 oz
• Gold production - 7,935 oz
• Copper production - 4,373,166 lbs
*In 2017, we also produced and sold 73,460 silver equivalent ounces from our low grade zinc concentrate.
Silver equivalent1 production for 2017 increased by 1% to 2,700,585 oz compared to 2,679,334 oz in 2016. Silver production
for 2017 decreased 14% to 1,394,203 from 1,612,060 oz compared to 201 6. Gold production for 2017 increased by 11% to
7,935 oz compared to 7,119 oz in 201 6. Copper production for 201 7 increased by 4% to 4,373,166 lbs compared to
4,206,585 lbs in 2016. Total mill feed processed during 201 7 was 541,935 compared to 544,336 dry tonnes during 201 6, a
decrease of 0.5%.
At the Avino mine, the silver equivalent 1 ounces produced during 2017 totalled 1,911,428 compared to 1,606,272 produced
in 2016, which was a n increase of 19%, mainly due to the higher grade of the mill feed resulting in an increase of 9% in
concentrate produced and the grade of copper increasing by 35%. Copper production increased by 47% during the 4 th
quarter. Over the year, gold production increased by 42%, copper by 4% and silver by 2%.
At the San Gonzalo Mine, the silver equivalent 1 ounces produced during 2017 totalled 789,157 compared to 1,073,062
compared in 2016. This represents a 26% decrease compared to 2016, and was mainly due to lower tonnage of San Gonzalo
mill feed being processed using Mill Circuit 2. In 2017, Mill Circuit 2 was primarily used for processing Avino Mine material,
whereas in 2016, there were some months when this Circuit wa s used to process San Gonzalo material in addition to Mill
Circuit 1.
Costs and Capital Expenditures
Consolidated all -in sustaining cash costs per AgEq ounce during 201 7 was $10.11 compared to $10.34 during 201 6, a
decrease of 2%. As we continue to transit ion from development mining to production mining we anticipate achieving lower
production costs.
Capital expenditures during 2017 were $12.4 million compared to $10.7 million during 2016.
Capital expenditures primarily relate to advancing the Avino Mine which included construction of Mill Circuit 4, which is
now over 90% complete, exploration at the Avino Mine, the purchasing of new mining, milling/processing and
transportation equipment, as well as advancing the Bralorne Mine and exploration and mining equipme nt.
April 2, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Financial Results for Fourth Quarter and Year End 2017
Page 4
Bralorne Mine
During the year, the Company completed its review of potential scenarios for developing a long term mine operating plan.
The original phased plan was for the future start -up of a small tonnage operation, and during the course of work being
completed, our site management identified ground and safety issues in the existing 800 level portal. It was determined that
the 800 level portal needed rehabilitative work, and consultants were engaged to review and develop a plan for the repairs.
In view of the proposed repairs, which would have restricted mine throughput, the consultant’s recommendations were to
construct a new portal on the 800 level, due to the age and limiting size of the original main access tunnel. The future
construction of a new 800 portal should allow earlier access to the resources below the 800 level.
In November, the Company received an approved Permit Amendment from The Ministry of Energy, Mines and Petroleum
Resources (“MEM PR”). The Permit Amendment provides a comprehensive and responsible permit, which is updated to
modern environmental and permitting standards, and is an important step in the Company’s strategic pla n to re -open the
Bralorne Gold Mine. With the receipt of this modern permit, the Company anticipates an easier and quicker transition to an
amended permit that would allow for future expansion. A surface drilling program is underway, and an underground dri ll
program is being planned to update and increase the confidence in the current resource base.
First Nations Education, Training & Engagement, and Collaboration
In 2017, Avino continued the underground mining training for members of the St’at’imc communit ies, and the third training
program with North Island College was completed in February 2018 in Pemberton, B.C. In addition to the training program
through North Island College, Avino has been working with the Center for Training Excellence in Mining, the BC
government, Thompson Rivers University, New Gold, Seabridge Gold and Sandvik, amongst others, on the development of
the curriculum for a new accredited underground mining training program aligned with the Mining Industry Human
Resources Council’s Canadian Mining Certification Program.
During 2017, Avino announced the signing of a non -binding Letter of Intent (“LOI”) with St’at’imc Eco -Resources to
recognize the opportunity for collaboration and the establishment of joint ventures to allow the St’át’imc F irst Nations (the
“St’át’imc”) to economically participate in the development and ongoing operations of the Bralorne Gold Mine project.
St’át’imc Eco-Resources Ltd. is the economic arm of the St’at’imc and is owned by 9 of the 11 St’át’imc Communities.
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, each of which are non -IFRS measures. Cash flow per sha re, 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.
Additional information
Avino will be holding a conference call and webcast on April 3, at 8 am PDT (11 am EDT).
Shareholders, analysts, investors and media are invited to join the webcast and conference call by logging in here
Avino Fourth Quarter and Year End 2017 Webcast and Conference Call or by dialing the following numbers five to ten 10
minutes prior to the start time:
Toll Free Canada & USA: 1-800-319-4610
Outside of Canada & USA: 1-604-638-5340
No pass -code is necessary to participate in the conference call or webcast ; participants will have the opportunity to ask
questions during the Q&A portion.
The conference call and webcast will be recorded and the replay will be available on the Company's web site later that day.
April 2, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Financial Results for Fourth Quarter and Year End 2017
Page 5
Qualified Person(s)
Avino’s Mexican projects are under the supervision of Jasman Yee, P.Eng, Avino Director, and the Bralorne project is under
the supervision of Fred Sveinson, B.A., B.Sc., P. Eng., both of whom are qualified persons within the context of National
Instrument 43-101, and have reviewed and approved the technical data in this news release.
Outlook
Avino's mission is to create shareholder value through profitable organic growth at the Avino Property and the strategic
acquisition and advancement of mineral exploration and mining properties. We are committed to expanding our operations
and managing all business activities in an environmentally responsible and cost -effective manner while contributing to the
well-being of the communities, in which we operate.
The Company remains focused on the following key objectives:
Maintain and improve profitable mining operations while managing operating costs and achieving efficiencies;
Complete the Mill Circuit 4 expansion to increase Avino Mine production;
Conduct a successful drill program in 2018 to increase and improve confidence in our resource base at Bralorne;
Continue mine expansion drilling and explore regional targets on the Avino property; and,
Follow the recommendations made in the 2017 PEA on the Oxide Tailings Resource at the Avino Mine and assess
the potential for processing the oxide tailings resource.
About Avino
Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico and
Canada employing close to 600 people, and has created over 1,600 indirect jobs in Mexico. Avino produces from its wholly
owned Avino and San Gonzalo Mines near Durango, Mexico, and is currently planning for future production at the Bralorne
Gold Mine in British Columbia, Canada. The Company’s gold and silver production remains unhedged. The Company’s
mission and strategy is to c reate shareholder value through its focus on profitable organic growth at the historic Avino
Property near Durango, Mexico, and the strategic acquisition of mineral exploration and mining properties. Avino is
committed to managing all business activities in an environmentally responsible and cost -effective manner, while
contributing to the well-being of the communities in which we operate.
On Behalf of the Board
“David Wolfin”
________________________________
David Wolfin
President & CEO
Avino Silver & Gold Mines Ltd.
Safe Harbor Statement - This news release contains “forward -looking information” and “forward -looking statements” (together, the “forward looking
statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including the updated
mineral resource estimate for the Company’s Avino Property located near Durango in west -central Mexico (the “Proper ty”) with an effective date of
January 31, 2018 prepared for the Company, and reference to Measured, Indicated, Inferred Resources referred to in this press release. These forward -
looking statements are made as of the date of this news release and the dat es of technical reports, as applicable. Readers are cautioned not to place
undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied
by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward -looking statements are based will occur.
While we have based these forward -looking statements on our expectations about future events as at the date that such statements were prepared, the
statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and ot her factors which could cause
events or outcomes to differ materially from those expressed or implied by such forwar d-looking statements. No assurance can be given that the
Company’s Property does not have the amount of the mineral resources indicated in the updated report or that such mineral res ources may be
economically extracted.
April 2, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Financial Results for Fourth Quarter and Year End 2017
Page 6
Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold, silver and copper, changing foreign
exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and mi sjudgments in the course
of preparing forward -looking information. In addition, there are known and unknow n risk factors which could cause our actual results, performance or
achievements to differ materially from any future results, performance or achievements expressed or implied by the forward -looking statements. Known
risk factors include risks associated w ith project development; the need for additional financing; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreign c ountries; environmental liability
claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers, direc tors or promoters with certain
other projects; the absence of dividends; currency fluctuations; competition; diluti on; the volatility of the our common share price and volume; tax
consequences to U.S. investors; and other risks and uncertainties. Although we have attempted to identify important factors t hat could cause actual
actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. There can be no assurance that forward -looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or alter any forward -looking statements except as required under applicable securities
laws.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibil ity for the adequacy or accuracy
of this release.