Avino Reports Q1 2017 Financial Results
NYSE - MKT: ASM
TSX-V: ASM
May 10, 2017 FSE: GV6
Avino Reports Q1 2017 Financial Results
Avino Silver & Gold Mines Ltd. (ASM: TSX-V, ASM: NYSE–MKT, GV6: FSE, “Avino” or “the Company”) is
pleased to announce the consolidated financial results for the Company’s first quarter ended March 31,
2017. 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.
“We are pleased to commence reporting in USD , which will better reflect the Company’s business
activities and will, therefore, improve investors’ ability to compare the Company’s financial result s with
other publicly traded mining companies. Our Q1 results reflect improvements in revenues, operating
income, and net income. We remain focused on our objectives which include our expansion plans
announced in January that are progressing very well, and we are confident that the implementation of
these important plans will continue to support the company’s growth efforts. We ex perienced lower
production and development numbers in the first quarter compared to the same period last year,
except gold production, which increased by 23%. While the results are lower , due to lower grade
material being mined, we are confident that the c ompany will achieve another solid year. Our team
continually looks to improve efficiencies, and we are very appreciative of their support and dedication.
Other key achievements for the quarter included the commencement of t he work required for the
expansion of Mill Circuit #4, the receipt of a positive Preliminary Economic Assessment of the Oxide
Tailings at the Avino mine, and a review of possible alternatives to the Tailings Storage Facility.”
- David Wolfin, President, CEO & Director, Avino Silver & Gold Mines Ltd
FIRST QUARTER 2017 HIGHLIGHTS – IN $USD
Generated revenues of $8.1 million from the sale of concentrates, a 306% increase from the
first quarter of 2016 due to the commencement of production mining at the Avino mine during
the second quarter of 2016
Mine operating income of $3.5 million, a 168% increase compared to the first quarter of 2016
Net income after taxes of $0.7 million or $0.01 per share
Working capital of $21.1 million
Net earnings of $1.1 million
Produced 604,643 silver equivalent ounces¹, including 320,082 ounces of silver, 1,837 ounces
of gold and 1,024,853 pounds of copper
Consolidated all-in sustaining cost (“AISC”)2 was $9.55 per payable silver equivalent ounce, a
16% increase compared to $8.22 per ounce in the first quarter of 2016
Average realized selling prices for silver and gold were US$17.38 and US$1,218 per ounce,
respectively
Cash of $7.7 million and short term investments consisting of cash of $10 million was on hand
at the end of the quarter
AVINO SILVER &
GOLD MINES LTD.
T 604.682.3701 Suite 900, 570 Granville Street [email protected]
F 604.682.3600 Vancouver, BC V6C 3P1 www.avino.com
Avino Silver & Gold Mines Ltd. – May 10, 2017
Avino Reports Q1 2017 Financial Results
Page 2
HIGHLIGHTS
First
Quarter
2017
First
Quarter
2016
Change
Operating
Tonnes Milled 136,686 140,116 -2%
Silver Ounces Produced 320,082 403,447 -21%
Gold Ounces Produced 1,837 1,497 23%
Copper Pounds Produced 1,024,853 1,350,912 -24%
Silver Equivalent Ounces1 Produced 604,643 715,933 -16%
Concentrate Sales and Cash Costs
Silver Equivalent Ounces Sold2 524,356 150,507 237%
Cash Cost per Silver Equivalent Ounce2,3 $ 8.01 $ 4.11 95%
All-in Sustaining Cost per Silver Equivalent Ounce2,3 $ 9.55 $ 8.22 16%
Average Realized Silver Price per Ounce $ 17.38 $ 16.42 6%
Average Realized Gold Price per Ounce $ 1,218 $ 1,194 2%
Average Realized Copper Price per Tonne $ 5,873 - -%
Financial
Revenues $ 8,127,863 $ 2,002,728 306%
Mine Operating Income $ 3,460,843 $ 1,291,889 168%
Net Income (Loss) $ 721,305 $ 42,246 1,607%
Cash $ 7,654,982 $ 4,637,163 65%
Working Capital $ 21,133,853 $ 2,900,349 629%
Shareholders
Earnings (Loss) per Share ("EPS") – Basic $ 0.01 $ 0.00 100%
Cash Flow per Share (YTD)3 $ 0.04 $ 0.02 100%
1. For comparison purposes, the silver equivalent ratio has be en calculated using metal prices of $17.42 oz Ag, $1,220 oz Au and $2.63 Lb Cu. Mill
production figures have not been reconciled and are subject to adjustment with concentrate sales. Calculated figures may not add up due to rounding.
Metal production is expressed in terms of silver equivalent ounces, (oz Ag Eq), the formula for which depends on the copper, gold and silver metal
prices used in each period and hence are only indicative.
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 ounce, and cash
flow per share. These measu res 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.
Financial Results
The Company generated revenues of $8.1 million during the first quarter of 2017; a 306% increase
compared to the first quarter of 2016. The increase is a result of the commencement of production
mining at the Avino Mine.
Mine operating income was $ 3.5 million during the first quarter of 2017, an increase of $2.2 million or
168% from $ 1.3 million in 2016. During the first quarter of 2017, net income increased by 1,607% to
0.7 million or $0.01 per share, compared to net income of $42 thousand or $0.00 basic and diluted per
share during the corresponding period of 2016.
Operational Results
Silver equivalent production for the first quarter of 2017 decreased by 16% to 604,643 oz1 compared to
715,933 oz1 in the first quarter of 2016. Silver production for the first quarter of 2017 decreased 21% to
320,082 oz compared to 403,447 oz in the first quarter of 2016. Gold production for the first quarter of
2017 increased by 23% to 1,837 oz compared to 1,497 oz in the corresponding period of 201 6. Copper
production decreased by 24% to 1,024,853 lbs compared to 1,350,912 lbs in the first quarter of 201 6.
Total mill feed processed during the first quarter of 2017 was 136,686 dry tonnes compared to 140,116
dry tonnes during the first quarter of 2016, a decrease of 2%.
Avino Silver & Gold Mines Ltd. – May 10, 2017
Avino Reports Q1 2017 Financial Results
Page 3
At the Avino M ine, silver equivalent ounces1 produced during the first quarter of 2017 totalled 439,163
compared to 474,206 during the first quarter of 2016, a decrease of 7%. The lower production is due to
the lower grade material being mined.
At the San Gonzalo Mine, silver equivalent ounces 1 produced during the first quarter of 2017 totalled
165,480 representing a decrease of 32% compared to 241,727 in the first quarter of 2016.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq ounce 1 during the first quarter of 2017 were $9.55
compared to $8.22 during the corresponding period of 2016, an increase of 16%.
All-in sustaining cash costs at San Gonzalo during the first quarter of 2017 were $6.21 per AgEq ounce 1
compared to $8.22 during the first quarter of 2016, a decrease of 24 %. All-in sustaining cash costs at
Avino during the first quarter of 2017 were $10.81, with no comparable available as production mining
commenced as of April 1, 2016.
Capital expenditures during the three months ended March 31, 2017, were $ 1,965,198 compared to
$946,217 for the corresponding period of 2016 (net of concentrate proceeds of $4,294,464).
Capital expenditures relate to the Avino mine advancement (including Mill Circuit #4 ) and mining and
production equipment to advance operations at the San Gonzalo, Avino, and Bralorne mines.
Bralorne Mine Update
During the first quarter of 2017, the Company continued to develop and review strategic operating plans
to achieve a profitable operation at Bralorne. The mine plan includes changing the mining method to
long hole mining, which is considered safer and less labour intensive than previous methods employed,
and is expected to support a higher production rate. Engineering is in progress to expand the mill and to
upgrade the surface infrastructure for a larger operation. Work in the mill during the quarter was
focused on demolishing the old ore and waste bins plus the removal of all of the old crushing equipment
to create room for new larger components.
In February 2017, Bralorne, in conjunction with North Island College, the B.C. Government and First
Nations co mpleted a second educational cohort to provide basic mining training for members of the
St’at’imc First Nation in Lillooet. Bralorne provided support and access to the mine site for hands -on
training. To date, 22 students have graduated from the program, two of whom are now full time
employees.
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, all of which are non -IFRS
measures. Cash flow per share, c ash 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 operati ons, 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.
Avino Silver & Gold Mines Ltd. – May 10, 2017
Avino Reports Q1 2017 Financial Results
Page 4
Conference Call
Avino will be holdi ng a conference call on May 11, 2017 at 8:00 am P acific Daylight Time (11:00 am
Eastern Daylight Time).
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 op portunity to
ask questions during the Q&A portion of the call.
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.
Qualified Person(s)
Avino's Mexican projects are under the supervision of Mr. Chris Sampson, P.Eng, BSc, Avino consultant
and Mr. Jasman Yee, P.Eng, Avino director; Avino’s Bralorne Mine project is under the supervision of
Fred Sveinson, B.A., BSc, P.Eng, Avino Senior Mining Advisor. These individuals are qualified persons
(“QP”) within the context of National Instrument 43 -101. The respective QP’s have reviewed and
approved all the applicable technical data in this press release.
Outlook
Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in
Mexico and Canada employing approximately 500 people. Avino produces from its wholly owned Avino
and San Gonzalo Mines near Durango, Mexico, and is currently planning for future produ ction at the
Bralorne Gold Mine in British Columbia, Canada. The Company’s gold and silver production remains
unhedged.
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:
1. Maintain and improve profitable mining operations while managing operating costs and
achieving efficiencies;
2. Advance the Bralorne project towards profitable production;
3. Explore regional targets on the Avino Property followed by other properties in our portfolio;
4. Assess the potential for processing the oxide tailings resource from previous milling operations
and;
5. Identify and evaluate potential projects for acquisition.
Avino Silver & Gold Mines Ltd. – May 10, 2017
Avino Reports Q1 2017 Financial Results
Page 5
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 Ref orm Act of 1995,
including our belief as to the extent and timing of various s tudies including the PEA, and exploration results, the potential tonnage, grades and
content of deposits, and timing, establishment, and extent of resource estimates. 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 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 wit h 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 mi neral 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 poten tial for conflicts of
interest am ong certain of our officers, directors or promoters with certain other projects; the absence of dividends; currency fluctuati ons;
competition; dilution; the volatility of 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 materia lly 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. Accordin gly, 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 m ineral 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 jurisdi ction in which its securities are
traded. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to thei r 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 Ven ture Exchange)
accepts responsibility for the adequacy or accuracy of this release.