Avino Reports Q2 2021 Financial Results
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
August 11, 2021
Avino Reports Q2 2021 Financial Results
Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American; FSE: GV6, "Avino" or "the Company") released today its consolidated
financial results for the Company’s second quarter 2021. The Financial Statements and Management’s Discussion and Analysis (MD&A)
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.
“During the second quarter, the Company focused on the steps necessary for resumption of operations. These included hiring mine
workers, upgrades to improve recoveries at the mill, testing the mill circuits, and clean-up of equipment, grounds, and facilities” said
David Wolfin, President and CEO. “We were extremely pleased to announce last week, that mining operations had resumed at the
Avino Mine. I wish to extend our sincere appreciation to the management team in Mexico for their tireless efforts as the y prepared
the way over many months for this positive outcome. Further, I am excited about the released initial drill results from our ongoing
2021 drill program. To date, we have completed 9,200 metres of drilling across the property at various targets. I am also pleased to
report that our debt position has been reduced by a further $ 1.7 million, and our working capital remains above $30 million, as we
ended the quarter with a robust balance sheet. Finally, and above all, we are very much looking forward to ramping up production
and getting back to normal operation levels as quickly as possible.”
Second Quarter 2021 Financial Highlights
• Ending cash balance of $26.8 million
• Ending working capital of $30.4 million
• Reduction in debt liabilities by $1.7 million since the beginning of the year
• Mine operating losses of $1.7 million
• Net losses from continuing operations of $2.7 million, or $0.03 per share
• Losses before interest, taxes, depreciation, and amortization (“EBITDA”)1 of $2.9 million
• Adjusted losses1 of $0.8 million
Financial Highlights
HIGHLIGHTS
(Expressed in 000’s of US$)
Second
Quarter 2021
Second
Quarter 2020
Change
YTD
2021
YTD
2020
Change
Financial Operating Performance
Revenues $ - $ 4,840 -100% $ 29 $ 11,956 -100%
Mine operating (loss) income $ (1,017) $ 787 -229% $ (1,697) $ 1,630 -204%
Net loss from continuing operations $ (2,654) $ (1,111) 139% $ (4,472) $ (1,343) 233%
Net loss including discontinued operations $ (2,654) $ (1,276) 108% $ (4,472) $ (1,508) 197%
Earnings (loss) before interest, taxes and
amortization (“EBITDA”)1 $ (2,866) $ (797) 260% $ (4,606) $ (425) 984%
Adjusted earnings (losses)1 $ (778) $ 1,958 -140% $ (1,722) $ 2,349 -173%
Per Share Amounts
Loss per share from cont. operations – basic $ (0.03) $ (0.01) 200% $ (0.05) $ (0.02) 150%
Loss per share – basic $ (0.03) $ (0.02) 50% $ (0.05) $ (0.02) 150%
Cash Flow per share1 – basic $ (0.01) $ 0.00 -100% $ (0.02) $ 0.01 -200%
HIGHLIGHTS
(Expressed in 000’s of US$)
June 30,
2021
June 30,
2020 Change
June 30,
2021
December 31,
2020
Change
Liquidity & Working Capital
Cash $ 26,814 $ 10,386 158% $ 26,814 $ 11,713 129%
Working capital $ 30,416 $ 13,797 120% $ 30,416 $ 14,680 107%
1. 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 for further information and detailed reconciliations
N E W S R E L E A S E
Avino Silver & Gold Mines Ltd. – August 11, 2021
Avino Reports Q2 2021 Financial Results
Page 2
Costs and Capital Expenditures:
Capital expenditures company-wide for the first half of 2021 were $1.0 million compared to $0.7 million for H1 2020.
Capital expenditures at the Avino property relate to exploration drilling costs and costs related to the construction of the dry -stack
tailings storage facility. We expect to see a continued increase into Q3 and Q4 2021.
Operational Highlights and Overview
HIGHLIGHTS
(Expressed in US$)
Second
Quarter 2021
Second
Quarter 2020
Change1
YTD
2021
YTD
2020
Change
1
Operating
Tonnes Milled 3,533 40,190 -91% 3,533 204,286 -98%
Silver Ounces Produced 3,504 50,581 -93% 3,504 317,299 -99%
Gold Ounces Produced 45 404 -89% 45 1,935 -98%
Copper Pounds Produced 55,043 459,767 -88% 55,043 2,267,939 -98%
Silver Equivalent Ounces1 Produced 15,477 158,286 -90% 15,477 842,230 -98%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2 - 322,886 -100% - 897,953 -100%
Cash Cost per Silver Equivalent Payable
Ounce1,2,3 $ - $ 10.92 -100% $ - $ 10.22 -100%
All-in Sustaining Cash Cost per Silver Equivalent
Payable Ounce1,2,3 $ - $ 16.37 -100% $ - $ 15.42 -100%
1. In Q2 2021, AgEq was calculated using metal prices of $26.98 oz Ag, $1,835 oz Au, and $4.36 lb Cu. In Q2 2020, AgEq was calculated using metals prices of $16.38 oz Ag, $1,707 oz A u and
$2.45 lb Cu. No ounces were sold in Q1 or Q2 2021; therefore, cash costs and all-in sustaining cash costs per AgEq ounce were Nil for the 3 months and 6 months ended June 30, 2021.
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 standardiz ed meaning and th e 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.
During Q2 2021, there was limited production mining activities as the mill circuits were being tested for ongoing preparations for
resumption of operational activities.
Exploration Update – 2021 Drill Program
In July 2021, the Company announced initial drill results from its exploration program. The full results were released on July 15, 2021
and can be found on our Company website as well as on our SEDAR and Edgar profiles under the company name.
Drill results from Phase 1 were released on the El Trompo Vein, the Santiago Vein, and the La Malinche Vein.
We are in the process of integrating the information from the initial drill results into the geological model to improve our
understanding as we continue to focus on determining potential target areas.
Current Drilling Results
• To date, 9,200 metres have been drilled, and the breakdown of this drilling is as follows:
• 2,469 metres at the Avino vein
• 1,717 metres at the Santiago vein
• 1,568 metres at El Trompo vein
• 820 metres at the La Malinche vein
• 340 metres at the Neustra Senora vein
• 133 metres at the San Jorge vein
• 2,160 metres at the oxide tailings
The focus for the next quarter is to ramp up the production levels and operating activities at the mine and to keep moving forward
with the exploration program. We are focused on locating new mineralized zones within the property and confirming continuity of
mineralization in the current Avino ET production area.
Avino Silver & Gold Mines Ltd. – August 11, 2021
Avino Reports Q2 2021 Financial Results
Page 3
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 equival ent 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 mini ng 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 and Webcast
In addition, the Company will be holding a conference call and webcast on Thursday, August 12 at 8:00 am PST ( 11:00 am EST).
Shareholders, analysts, investors and media are invited to join the webcast and conference call by logging in here Avino Second Quarter
2021 Financial Results Conference Call and Webcast or by dialing the following numbers five to ten minutes prior to the start time:
Toll Free Canada & USA: 1-800-319-4610
Outside of Canada & USA: 1-604-638-5340
No passcode 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.
Qualified Person
Peter Latta, P.Eng, MBA, Avino’s VP Technical Services, who is a qualified person within the context of National Instrument 43-101 and
has reviewed and approved the technical data in this document.
About Avino
Avino is primarily a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company’s silver and gold
production remains unhedged. The Company’s mission and strategy is to create shareholder value through 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. We encourage you to connect with us on Twitter at @Avino_ASM and on LinkedIn at Avino
Silver & Gold Mines.
ON BEHALF OF THE BOARD
“David Wolfin”
________________________________
David Wolfin
President & CEO
Avino Silver & Gold Mines Ltd.
Avino Silver & Gold Mines Ltd. –August 11, 2021
Avino Reports Q2 2021 Financial Results
Page 4
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 n ear Durango in west-central Mexico (the “Property”) with an effective date of January 13, 2021 prepared for the Company,
and referenced 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 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. No assurance can be given
that the Company’s Property has the amount of the mineral resources indicated in the updated report or that such mineral reso urces may be economically extracted.
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 achie vements 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; com petition; 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 Regarding Non-GAAP Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under Intern ational Financial Reporting
Standards (“IFRS”), including silver equivalent ounces (AgEq oz) of production. Non -GAAP measures do not have any standardized meaning prescribed under IFRS and,
therefore, they may not be comparable to similar measures reported by other companies. We believe that, in addition to conventional measures prepared in accordance
with IFRS, certain investors use this information to evaluate our performance. The data presented is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Readers should also refer to our management’s discussion and
analysis available under our corporate profile at www.sedar.com or on our website at www.avino.com.