1 Silver equiva ratio of the a v "Non-IFRS M ounce, and ca Novembe Avino Si Company financial i amounts release s statement and analy 31, 2013 under the "Avino is has rema results of (“Bralorne increasing Avino Min recently r
AVIN NO SIL LVER & & F 604.682.3 T 604.682.3 3701 Suite 900, 5 570 Granville Stree et [email protected] 3600 Vancouver, BC V6C 3P1 www w.avino.com GOL LD MIN NES LTD.
N NYSE ‐ MKT: ASM TSX‐V: ASM Novembe er 12, 2014 FSE: GV6
AVINO O REPORTS THIRD QU UARTER 20 014 FINANCIAL RESU ULTS
Avino Silver & Gold Mines Ltd. (ASM: TSX X.V, ASM: NY YSE – MKT, , GV6: FSE, “Avino” or r “the Company
y”) is pleased d to report its s financial res sults for the t third quarter e ended Septem mber 30, 201
14. All financial information, o other than non-IFRS meas sures, is prep pared in accordance with I IFRS and all dollar amounts are expresse wise specified. The information in this news ed in Canadian dollars un nless otherw release s d consolidated interim financial should be rea ad in conjunction with the Company's s condensed statement ts for the nin ne months en nded September 30, 2014 4 and associa ated manage ement’s discu ussion and analy ysis (“MD&A”) and the aud dited consolid dated financia al statements s for the year r ended Dece ember 31, 2013 and associat ted MD&A which are avai ilable on the Company's w website at ww ww.avino.com m and under the Company's p profile on SED DAR at www.sedar.com.
"Avino is pleased to deliver anothe er profitable q quarter during g a time of de eclining meta al prices. Our team has remained focused on managing g a tight cost structure and d their efforts s are once again reflected in the results of this quarter. Now that we ne Gold Mines Ltd. e have comp pleted our rec cent acquisitio on of Bralorn (“Bralorne e”), we plan to
- apply our e effective opera ating and cos st models at B Bralorne with the expectat tion of
increasing g our positive overall result ts. Further, w we are looking g forward to c completing ou ur expansion at the e operations of the Avino Min ne site and bringing Circuit 3 online lat ter this year. We are conf fident that the recently re-opened Avino Mine will further contribute to the s success of Av vino’s consoli idated operat tions," stated Ma alcolm Davids son, CFO.
Highlight ts of Three and Nine Mon nths Ended S September 30 0, 2014 (Com mpared to 20 013)
l Financial
ce1 was $13.0
- Conso rd quarter of 2014 olidated all-in n sustaining c cash cost pe er AgEq ounc 01 in the thir compared to $11.3 35 in the third quarter of 20
- Reven nues reported for the qu uarter were $ $4,704,213 co ompared to $3,821,622 i in the compa arable quarte er of 2013, an n increase of 23%
- Incom me from mine e operations w was $1,710,0 078 in the thir rd quarter of 2014, a decrease of $613,139 from t the third quarter of 2013
- General and adm ministrative ex xpenses were e $668,612 in the third quarter of 2 2014 compar red to $873,522 in the third quarter of 2013
- Earnin ngs before in ncome taxes w were $1,203,929 in the third quarter of f 2014 compa ared to $1,02 29,694 in the third quarter of 2013
- Earnin ngs for the th hird quarter of 2014 were $787,805, a decrease of $ $150,889 from m the third quarter of 201
- Earnin ngs per share e, basic and d diluted, was $ $0.02 in the th hird quarter of f 2014 compa ared to $0.03 in the third q quarter of 201
- Avera age realized p prices per ounce of silver and gold were US$19.24 and US$1,267 respective ely for ectively for the third quarte the third quarter 20 014 and US$2 21.76 and US S$1,337 respe er of 2013
- Cash flows from o operations before moveme ents in workin ng capital we ere $3.8 millio on for the firs st nine month hs of 2014, co ompared to $4 4.4 million for r the correspo onding period d of the previo ous year are1, basic a
- Cash flow per sha and diluted, w was $0.12 pe er share for the first nine e months of 2014, compared to $0.16 6 per share fo or the correspo onding period d of the previo ous year.
1 Silver equiva alent ounces sold ( (“AgEq ounce”) con nsists of the numbe er of ounces of silv ver sold plus the nu umber of ounces of f gold sold multiplie ed by the rmation under the heading ratio of the av verage spot gold p price to the averag ge spot silver price for the corresponding period. Pleas se refer to the infor "Non-IFRS Measures" of this ne ews release for a d discussion of cash cost per silver equ uivalent ounce, all l-in sustaining cash h cost per silver eq quivalent ounce, and ca ash flow per share.
Operational
- Silver production for the third quarter of 2014 increased 21% to 217,024 oz compared to the third quarter of 2013
Gold production for the third quarter of 2014 increased 27% to 1,105 oz compared to the third quarter of 2013
- Silver equivalent production for the third quarter of 2014 increased 28% to 298,381 oz* compared to the third quarter of 2013
- Concentrate inventory available for sale at quarter-end was 74.5 dry metric tonnes.
"Our third quarter 2014 results reflect solid operating performance throughout our operations. During the quarter, we achieved an important milestone with the resumption of underground mining operations at the Avino Mine. Our performance in the third quarter reflects the quality of our mining assets and our people. The continued ramp-up of the Avino Mine, coupled with stable performance at the San Gonzalo mine, position the Company for a strong finish to 2014 and an exciting 2015. Going forward, Avino is poised to excel thanks to our growing operations in Mexico and the recent addition of the Bralorne mine project.”
- David Wolfin, President, CEO & Director
Financial Review
The Company generated revenues of $4,704,213 for the third quarter of 2014, a 23% increase compared the third quarter 2013. Although metals prices decreased significantly between the periods, the Company recorded a higher number of silver equivalent ounces sold as a result of improved grades and recoveries.
For the third quarter of 2014, net income decreased by $150,889 to $787,805 or $0.02 per share, compared to net income of $938,694 or $0.03 per share during the third quarter of 2013. The decrease reflects significant increases in current income taxes and non-cash share-based payments. Mine operating income was $1,710,078, a decrease of $613,139 or 26% from $2,323,217 during the third quarter of 2013.
Cash flows from operations before movements in working capital through the first three quarters of 2014 totalled $3.8 million, a decrease of 14% from the $4.4 million generated through the first three quarters of 2013.
Operational Review
Total silver equivalent production in the third quarter of 2014 increased to 298,381 silver equivalent ounces*, an increase of 28% compared to the third quarter of 2013. The production growth was primarily due to higher feed grades and recoveries at the San Gonzalo mine and higher tonnage processed, higher silver feed grade, and better silver recoveries at the Avino Mine stockpile operation.
The consolidated average silver equivalent feed grade for the third quarter of 2014 was 281 g/t compared to 253 g/t during the third quarter of 2013, an increase of 11%.
Total ore processed during the third quarter of 2014 was 39,571 dry tonnes compared to 37,630 dry tonnes during the third quarter of 2013, an increase of 5%.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq ounce1 during the third quarter of 2014 were $13.01 compared to $11.35 in the third quarter of 2013, an increase of 14%.
Year to date capital expenditures at the end of the third quarter were $6.0 million compared to $3.3 million as at the end of the third quarter of 2013.
Capital expenditures primarily relate to the Avino mine expansion, the process plant expansion for Circuit 3, and equipment to advance operations at the San Gonzalo mine.
Mine Operations
San Gonzalo Mine
A total of 231,011 silver equivalent ounces* were produced by Circuit 1 during the third quarter of 2014. This represents an increase of 24% compared to the third quarter of 2013.
All-in sustaining cash costs in the third quarter of 2014 were $12.30 per AgEq ounce1 compared to $10.51 in the third quarter of 2013, an increase of 17%.
Avino Mine Stockpiles
A total of 67,370 silver equivalent ounces* were produced using Circuit 2 during the third quarter of 2014 compared to 47,374 during the third quarter of 2013, an increase of 42%.
All-in sustaining cash costs during the quarter were $15.50 per AgEq ounce1 compared to $14.94 during the third quarter 2013, an increase of 4%.
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 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 allin 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.
Conference Call
Avino will be holding a conference call on Thursday, November 13, 2014 at 10 am PST (1 pm EST).
To participate in the conference call, please dial the following:
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; participants will have the opportunity to ask questions during the Q&A portion of the call. Alternatively, participants can send questions via email to [email protected] on November 12, 2014, following the release of the financial results.
Participants should dial in 10 minutes prior to the conference.
The conference call will be recorded and the replay will be available on the Company's web site within one hour following the conclusion of the call.
Outlook
Avino's mission is to create shareholder value through profitable organic growth at the historic Avino property near Durango, Mexico, and the strategic acquisition of mineral exploration and mining properties. We are 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.
Management remains focused on the following key objectives:
1. Maintain profitable mining operations while managing operating costs and improving efficiencies;
2. Advance the Avino Mine for mineral production, expand mill output from 500 to 1,500 TPD;
3. Integrate Bralorne Gold Mine’s operations into Avino’s corporate structure;
4. Continue to explore regional targets on the Avino Property followed by other properties in our portfolio;
5. Assess the potential for processing the oxide tailings resource from previous milling operations (PEA issued in 2012).
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 our belief as to the extent and timing of various studies including the PEA, and exploration results, the potential tonnage, grades and content of deposits, timing and establishment and extent of resource estimates. These forward‐looking statements are made as of the date of this news release and the dates 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 other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward‐looking statements.
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 misjudgments in the course of preparing forward‐looking information. In addition, there are known and unknown 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 with 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 countries; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers, directors or promoters with certain other projects; the absence of dividends; currency fluctuations; competition; dilution; 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 that 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.
Cautionary Note to United States Investors ‐ The information contained herein and incorporated by reference herein has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. In particular, the term "resource" does not equate to the term "reserve". The Securities Exchange Commission's (the "SEC") disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by SEC standards, unless such information is required to be disclosed by the law of the Company's jurisdiction of incorporation or of a jurisdiction in which its securities are traded. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Disclosure of "contained ounces" is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.