"We had a very busy third quarter. We finalized the work necessary to recommence operations at the mine, and the restart was announced on
3rd Quarter 2021 Highlights
Strategic Acquisition of
- 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 theAvino Mine in the state ofDurango, Mexico , for upfront consideration 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
- On
August 3, 2021 , the Company announced that mining operations have officially restarted at theAvino Mine . During the three months endedSeptember 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 withSamsung C&T U.K. Limited ("Samsung"). The Company remains committed to sellingAvino Mine concentrate to Samsung untilDecember 31, 2024 .
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, with 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 released 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
Financial Highlights
HIGHLIGHTS | Third Quarter | Third Quarter | Change | YTD | YTD |
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 | $ | 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% |
|
|
| Change |
|
| Change | ||||
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 measures. See Non-IFRS Measures section for further information and detailed reconciliations. |
Costs and Capital Expenditures:
Year to date 2021 capital expenditures company-wide were
Operational Highlights and Overview
HIGHLIGHTS | Third Quarter | Third Quarter | Change1 | YTD | YTD | 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 | $ | 25.60 | $ | 31.61 | -19% | $ | 51.85 | $ | 17.23 | -201% |
1. In Q3 2021, AgEq was calculated using metal prices of |
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 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. |
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.
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
Exploration Update – 2021 Drill Program
The Company's 2021 exploration program is ongoing. In
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
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 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
Toll Free Canada &
Outside of
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
About Avino
Avino is primarily a silver producer from its wholly owned
ON BEHALF OF THE BOARD
"David Wolfin"
________________________________
President & CEO
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
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. 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
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 under 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 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.
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