Avino Reports Q3 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
November 9, 2021
Avino Reports Q3 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 third 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.
“We had a very busy third quarter . We finalized the work necessary to recommence operations at the mine , and the restart was
announced on August 3 rd,” said David Wolfin, President and CEO. “I would like to extend my appreciation to the team in Mexico for
their hard work and efforts that made it possible to accomplish the restart. In addition, in early July, we announced initial drill results
from Phase 1 of the campaign and completed almost 5,000 metres in the quarter. Q3 production results were achieved after a period
of closure, and we continue to increase production and reach levels established prior to closure. Also in the quarter, we made the final
installment in our debt to Samsung, and we are now debt free. We had revenues of $1.9 million with only one month of sales, working
capital of over $28 million and cash of over $22 million. With the recent announcement of the acquisition of La Preciosa, we feel we
are poised for growth with many more years of mining in our future.”
3rd Quarter 2021 Highlights
Strategic Acquisition of La Preciosa Silver Project from Coeur Mining Inc. (“Coeur”)
• On October 27, 2021, and subsequent to the end of Q3 2021, the Company announced that it has entered into a definitive
agreement (the “Agreement”) with Coeur to acquire the La Preciosa silver project, which is located adjacent to the Avino
Mine in the state of Durango, Mexico, for upfront cons ideration of $29.7 million on closing and $5 million due within 12
months of closing. Further contingent consideration including cash, royalties and a mineral reserve discovery payment.
Mining Operations Resumed at Avino Mine
• On August 3, 2021, the Compan y announced that mining operations have officially restarted at the Avino Mine. During the
three months ended September 30, 2021, mining activities continued to ramp up and management expects to reach previous
production levels during Q4 2021 or Q1 2022.
Term Facility Repaid on Schedule
• As of September 30, 2021, the Company has fully repaid its $10 million term facility with Samsung C&T U.K. Limited
(“Samsung”). The Company remains committed to selling Avino Mine concentrate to Samsung until December 31, 2 024.
Exploration Continues
• Approximately 5,000 metres were drilled during the quarter. Areas drilled include the existing Oxide Tailings Resource, which
is contained within the tailings storage facility (“TSF #1). 200 holes are planned on this program, w ith over 150 having been
completed to date. Additional areas for exploration include the main Avino vein below current mining activities and at the La
Potosina vein. Turnaround times for assay results have been slow; however, results are expected to be rel eased prior to the
end of 2021.
Third Quarter 2021 Financial Highlights
• Cash balance of $23.4 million
• Working capital of $28.9 million
• Completed term facility repayment to Samsung
• Revenues of $1.9 million
• Mine operating income of $0.8 million, $1.1 million net of depreciation & depletion
• Cash costs per silver equivalent ounce sold - $6.75 per ounce
• All-in sustaining cash cost per silver equivalent payable ounce of $25.60
• Earnings before interest, taxes, depreciation, and amortization (“EBITDA”)1 of $0.2 million
N E W S R E L E A S E
Avino Silver & Gold Mines Ltd. – November 9, 2021
Avino Reports Q3 2021 Financial Results
Page 2
Financial Highlights
HIGHLIGHTS
(Expressed in 000’s of US$)
Third Quarter
2021
Third Quarter
2020
Change
YTD
2021
YTD
2020
Change
Financial Operating Performance
Revenues $ 1,881 $ 2,659 -29% $ 1,910 $ 14,615 -87%
Mine operating income (loss) $ 838 $ (189) 543% $ (859) $ 1,441 -160%
Net loss from continuing operations $ (214) $ (4,587) 95% $ (4,686) $ (5,930) 21%
Net loss including discontinued operations $ (214) $ (4,589) 95% $ (4,686) $ (6,097) 23%
Earnings (loss) before interest, taxes and amortization
(“EBITDA”)1 $ 227 $ (4,250) 105% $ (4,377) $ (4,675) 6%
Adjusted earnings (losses)1 $ (728) $ (665) -9% $ (2,448) $ 1,684 -245%
Per Share Amounts
Loss per share from cont. operations – basic $ (0.00) $ (0.05) 100% $ (0.05) $ (0.07) -29%
Loss per share – basic $ (0.00) $ (0.05) 100% $ (0.05) $ (0.08) -38%
Cash Flow per share1 – basic $ 0.00 $ (0.01) 100% $ (0.02) $ (0.00) 100%
HIGHLIGHTS
(Expressed in 000’s of US$)
September 30,
2021
September 30,
2020 Change
September 30,
2021
December 31,
2020
Change
Liquidity & Working Capital
Cash $ 22,341 $ 12,493 79% $ 22,341 $ 11,713 91%
Working capital $ 28,903 $ 16,859 71% $ 28,903 $ 14,680 97%
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 measur es. See Non-IFRS Measures section for further information and detailed reconciliations.
Costs and Capital Expenditures:
Year to date 2021 capital expenditures company-wide were $2.1 million compared to year to date 2020 of $1.0 million. Expenditures
relate to exploration drilling costs on the Avino property & the Oxide Tailings Resource , costs related to the construction of the dry -
stack tailings storage facility, as well as the purchase of a scoop tram. We expect to see a continued increase into Q4 2021.
Operational Highlights and Overview
HIGHLIGHTS
(Expressed in US$)
Third Quarter
2021
Third Quarter
2020
Change1
YTD
2021
YTD
2020
Change1
Operating
Tonnes Milled 58,258 - 100% 61,791 204,286 -70%
Silver Ounces Produced 77,935 - 100% 81,439 317,299 -74%
Gold Ounces Produced 1,183 - 100% 1,228 1,935 -37%
Copper Pounds Produced 685,535 - 100% 740,578 2,267,939 -67%
Silver Equivalent Ounces1 Produced 285,464 - 100% 300,941 842,230 -64%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2 107,112 113,703 -6% 107,112 1,011,657 -89%
Cash Cost per Silver Equivalent Payable
Ounce1,2,3 $ 6.75 $ 12.56 -46% $ 6.75 $ 10.48 -36%
All-in Sustaining Cash Cost per Silver Equivalent
Payable Ounce1,2,3 $ 25.60 $ 31.61 -19% $ 51.85 $ 17.23 -201%
1. In Q3 2021, AgEq was calculated using metal prices of $24.36 oz Ag, $1,789 oz Au, and $4.25 lb Cu. In Q3 2020, AgEq was calculated using metals prices of $24.26 oz Ag, $1,909 oz Au and
$2.96 lb Cu. No ounces were sold in first half of 2021; therefore, there was no calculation of cash costs and all -in sustaining cash costs per AgEq ounce for the 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 the calculation methods may differ f rom
methods used by other companies with similar reported measures. See Non -IFRS Measures section for further information and detailed reconciliations.
Operations successfully recommenced and consolidation production of 285,464 silver equivalent ounces consisting of 77,935 ounces
of silver, 1,183 ounces of gold, and 685,535 pounds of copper, was achieved during Q3 2021.
Avino Silver & Gold Mines Ltd. – November 9, 2021
Avino Reports Q3 2021 Financial Results
Page 3
Underground mining operations are now hauling between 1,000 and 1,500 tpd to surface on a daily basis, with the mill operating at a
similar capacity. The Company is working towards achieving pre -shutdown levels of mine and mill production. Current plant capacity
remains at 2,500 tpd.
During Q3 2021 production came primarily from the Avino Mine. The Company is currently mining and milling f rom the Avino Mine
only. As part of the ramp -up of operations 10,806 tonnes of Historic Above Ground stockpile material having been processed during
Q3 2021. Production from this material totaled 15,784 silver equivalent ounces, consisting of 9,336 ounces of silver, 58 ounces of gold,
and 12,584 pounds of copper, and there was no comparable production from Q2 2020.
Exploration Update – 2021 Drill Program
The Company’s 2021 exploration program is ongoing. In July 2021, the Company announced initial drill res ults 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.
During Q3, 2021, there was a total of 4,931 metres drilled and is as follows:
• La Potosina – 601 metres
• Oxide Tailings – 1,931 metres
• Avino Vein – 2,399
To date, a total of 13,427 metres have been drilled as part of the fully funded 30,600 metre initial drill program. Assay results are
pending due to long turn-around times at the laboratories and will be released once received and interpreted.
Strategic Acquisition – La Preciosa
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.
As well, following the news release on October 27, 2021, announcing the acquisition of the La Preciosa project, work is underway to
determine how best to integrate La Preciosa into Avino’s current operations given the proximity to the current processing facilities
and infrastructure. The Company expects a large portion of the existing La Preciosa resource c ould be mined via an underground
operation to potentially improve Avino’s production and organic growth profile.
The above-mentioned news release which details the rationale and terms of the acquisition can be found on Avino’s website as well
as its SEDAR and Edgar profiles.
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, 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 mining industry as benchmarks for pe rformance, 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 Wednesday, November 10th at 8:00 am PDT (11:00 am EDT).
Shareholders, analysts, investors and media are invited to join the webcast and conference call by logging in here Avino Third 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 ques tions
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.
Avino Silver & Gold Mines Ltd. – November 9, 2021
Avino Reports Q3 2021 Financial Results
Page 4
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.
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 “Property”) with an effective date of October 31, 2020, prepared for the Company, and La Preciosa’s
updated October 27, 2021 r esource estimate and references 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 nor the La Preciosa Property have the amount of the mineral resources indicated
in their reports or that such mineral resources may be economically extracted.
Such factors and assumptions include, among others, the effects of general e conomic 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 achieve ments to differ materially from any
future results, performance or achievements expressed or implied by the forward -looking stateme nts. Other 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 Included in filings made from time to time with the U.S.
Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, our most recent reports on Form 20-F and Form 6-K. 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 b e 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 responsibility for the adequacy or accuracy of this release.
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 un der International 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 addi tional 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.