NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, Nov. 9, 2015 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX-V,
ASM: NYSE–MKT, GV6: FSE, "Avino" or "the Company") is pleased
to report its financial results for the third quarter ended
September 30, 2015. All financial
information, other than non-IFRS measures, is prepared in
accordance with IFRS and all dollar amounts are expressed in
Canadian dollars unless otherwise specified. The information in
this news release should be read in conjunction with the Company's
condensed consolidated interim financial statements for the nine
months ended September 30, 2015, and
associated management's discussion and analysis ("MD&A") which
are available on the Company's website at www.avino.com and under
the Company's profile on SEDAR at www.sedar.com.
"The Company is pleased to report another quarter of positive
results from mining operations. Compared to the third quarter
of 2014, our revenues have increased, despite weaker metals prices,
as the result of producing and selling more silver equivalent
ounces. Our operations and finance teams have continued to do an
excellent job of managing costs and controlling expenditures. Our
consolidated all-in sustaining cash costs for the quarter decreased
to $11.99 compared to $13.01 in the third quarter of 2014, and we will
continue to seek out opportunities to further reduce costs and
improve efficiencies. Softer metals prices and market conditions
continue to present challenges; however, our stable financial and
operational condition and our strong balance sheet have well
positioned the Company to advance and meet its objectives," stated
Malcolm Davidson, CFO.
Highlights of the Three Months Ended September 30, 2015 (Compared to Q3 2014)
Financial
- Consolidated all-in sustaining cash cost per AgEq
ounce1 was $11.99 in the
third quarter of 2015 compared to $13.01 in the third quarter of 2014;
- Revenues reported for the quarter were $5,028,314 compared to $4,704,213 in the comparable quarter of 2014, an
increase of 7%;
- Income from mine operations was $2,188,568 in the third quarter of 2015, an
increase of $478,490 from the third
quarter of 2014;
- General and administrative expenses were $1,162,481 in the third quarter of 2015 compared
to $1,437,957 in the third quarter of
2014;
- Earnings before income taxes were $44,310 in the third quarter of 2015 compared to
$1,203,929 in the third quarter of
2014;
- Loss for the third quarter of 2015 was $625,193, compared to income of $787,805 during the third quarter of 2014, a
difference of $1,412,998;
- Losses per share, basic and diluted, was $0.02 in the third quarter of 2015 compared to
earnings per share of $0.02 in the
third quarter of 2014;
- Average realized prices per ounce of silver and gold were
US$15.12 and US$1,126 respectively for the third quarter 2015,
and US$19.24 and US$1,267 respectively for the third quarter of
2014;
- Cash flows from operations before movements in working capital
were $1,490,881 during the third
quarter of 2015, compared to $3,824,341 for the comparative period;
- Cash flow per share, basic and diluted, was $0.04 per share for the nine months ended
September 30, 2015, compared to
$0.12 per share for the corresponding
period of the previous year.
Operational
- Silver equivalent production for the third quarter of 2015
increased 148% to 770,004 oz* compared to 310,880 oz in the third
quarter of 2014;
- Silver production for the third quarter of 2015 increased 84%
to 399,836 oz compared to the third quarter of 2014;
- Gold production for the third quarter of 2015 increased by 49%
to 1,644 oz compared to 1,105 the third quarter of 2014;
- Copper production for the third quarter of 2015 increased by
1,646% to 1,344,174 lbs compared to 76,983 lbs the third quarter of
2014.
Financial Review
The Company generated revenues of $5,028,314 during the third quarter of 2015, a 7%
increase compared to the third quarter of 2014.
Mine operating income was $2,188,568, an increase of $478,490 or 28% from $1,710,078 during the third quarter of
2014.During the third quarter of 2015, net income decreased by
$1,412,998 to $(625,193) or $(0.02) per share, compared to net income of
$787,805 or $0.02, basic and diluted per share during the
third quarter of 2014.
Cash flow from operations before movements in working capital
during the third quarter of 2015 was $1,490,881, a decrease of 61% from the
$3.8 million generated during the
third quarter of 2014.
Operational Review
- Total silver equivalent production in the third quarter of 2015
increased to 770,004 silver equivalent ounces*, an increase of 148%
compared to the corresponding period in 2014. The production growth
was due to the completed refurbishment of the 1,000 tonne per day
Mill Circuit 3 used to process new underground material from the
Avino Mine.
- Total mill feed processed during the third quarter of 2015 was
130,490 dry tonnes compared to 39,571 dry tonnes during the third
quarter of 2014, an increase of 230%.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq
ounce1 during the third quarter of 2015 were
$11.99 compared to $13.01 during the corresponding period of 2014, a
decrease of 8%.
Capital expenditures during the third quarter of 2015, net of
concentrate proceeds, were $4,536,590
compared to $5,353,202 for the
comparable quarter last year.
Capital expenditures primarily relate to the Avino mine
advancement, the process plant expansion for Mill Circuit 3, and
equipment to advance operations at the San Gonzalo and Avino
mines.
Avino Mine
On January 1, 2015, Mill Circuit 3
began processing new material taken from underground at the Avino
Mine.
Silver equivalent ounces* produced during the third quarter of
2015 totalled 493,455. This represents an increase of 12% compared
to the second quarter of 2015 as there was no production from the
Avino Mine during the comparable quarter in 2014. Production for
the third quarter also includes output from Mill Circuit 2 which
was used to process mill feed from the Avino Mine during July and
August.
San Gonzalo Mine
Silver equivalent ounces* produced during the third quarter of
2015 totalled 276,549. This represents a 16% increase compared to
the same period 2014. Production for the third quarter also
includes output from Mill Circuit 2 which was used to process mill
feed from the Avino Mine during September.
All-in sustaining cash costs during the third quarter of 2015
were $12.04 per AgEq
ounce1 compared to $12.30
in the third quarter of 2014, a decrease of 2%.
Mill Circuit 2
Based on improved mining production results from Avino and San
Gonzalo, and the consideration of feed grades, recovery rates, and
smelter returns of the historic surface stockpile materials, during
the three months ended September 30,
2015, Mill Circuit 2 was used to process mill feed from both
the Avino and San Gonzalo Mines. The material from Avino was
processed during July and August, and material from San Gonzalo was
processed in September with the corresponding production reflected
in the above sections for each mine.
Bralorne Mine
During the second quarter of 2015, the necessary permits to
construct a raise to the embankment dam for the tailings storage
facility were received from British
Columbia's Ministry of Energy & Mines and Ministry of
Environment. Construction of the raise began during the last week
of August 2015 and was completed
during the final week of October
2015. This major project was necessary due to unseasonably
high temperatures and rainfall in December
2014 which led management to suspend processing at the
Bralorne mill facility due to concerns about the water level within
the tailings storage facility. With the embankment raise complete,
Avino has applied for permits to resume processing and mining and
is now well-prepared for a similar weather event in the future.
During the third quarter, ongoing maintenance and improvements
continued at the mill, and two new scoop trams were received from
Sandvik. Orders have also been placed for a new Caterpillar loader
and a Sandvik jumbo, and the search continues for additional
equipment as part of Avino's commitment to modernize the mining
fleet. Strategic planning alternatives, including new mining
methods tailored to the attributes of the Bralorne resource, are
being evaluated. The Company is maintaining open lines of
communication with First Nations communities, and management
continues its efforts to build meaningful progressive relationships
with its stakeholders. Should exploration drilling lead to
potential new resources, Avino will consider expanding the existing
mine and processing facility infrastructure.
"Our third quarter results highlight Avino's strong operational
position. We increased our silver equivalent production by 148%,
maintained low all-in sustaining costs and sustained profitable
mining operations, despite a challenging metal price
environment. Our focus over the balance of this year and next
is on attentive management of our costs, successful replacement of
mine resources and to fund Avino's promising organic growth
opportunities.
- David Wolfin, President, CEO
& Director
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 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.
Conference Call
Avino will be holding a conference call on Tuesday, November 10, 2015 at 8 am PST (11 am
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.
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 MD&A.
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.
Management remains focused on the following key objectives:
- Maintain and improve profitable mining operations while
managing operating costs and achieving efficiencies;
- Advance the Bralorne project towards profitable
production;
- Explore regional targets on the Avino Property followed by
other properties in our portfolio;
- Assess the potential for processing the oxide tailings resource
from previous milling operations (PEA issued in 2012); and
- Identify and evaluate potential projects for acquisition.
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, and timing, 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 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.
* For comparison purposes, the silver
equivalent ratio has been calculated using metal prices
of $16 oz
Ag, $1,150oz Au
and $3.00 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.
1 Silver equivalent ounces sold ("AgEq
ounce") consists of the number of ounces of silver sold plus the
number of ounces of gold sold multiplied by the ratio of the
average spot gold price to the average spot silver price for the
corresponding period. Please refer to the information under the
heading "Non-IFRS Measures" of this news release for a discussion
of cash cost per silver equivalent ounce, all-in sustaining cash
cost per silver equivalent ounce, and cash flow per share.
SOURCE Avino Silver & Gold
Mines Ltd.