NYSE - MKT: ASM
TSX-V: ASM
FSE: GV6
VANCOUVER, March 2, 2016 /CNW/ - 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
fourth quarter and year ended December
31, 2015. 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.
FOURTH QUARTER 2015 HIGHLIGHTS
- Generated revenues of $3.9
million from the sale of San Gonzalo concentrates
- Mine operating income amounted to $1.5
million
- Net income after taxes amounted to $370,675 or a Basic EPS of $0.01
- Produced 761,767 silver equivalent ounces, including 409,216
ounces of silver, 1,588 ounces of gold and 1,272,565
pounds of copper
- Total consolidated cash1 cost was $8.24 per payable silver ounce
- Consolidated all-in sustaining cost ("AISC")1 was
$12.70 (US$9.70) per payable silver equivalent ounce, a
16% increase compared to $10.94
(US$9.63) per ounce in the fourth
quarter of 2014 and consistent with the previous quarter
- Average realized selling prices for silver and gold were
US$14.29 and US$1,092 per ounce respectively
- Cash and cash equivalents of $7.5
million were on hand at the end of the quarter
2015 HIGHLIGHTS
- Generated revenues of $19.0
million from sales of San Gonzalo concentrates
- Mine operating income were $8.1
million
- Net income after taxes amounted to $483,424 or a Basic EPS of $0.01
- Operating cash flows before movements in working capital to
$453,878 or $0.01 per share
- Produced 3.0 million silver equivalent ounces, including 1.6
million ounces of silver, 7,083 ounces of gold and 4.7
million pounds of copper
- Total cash cost1 was $8.45 (US$6.61) per
silver equivalent ounce
- All-in sustaining cost ("AISC")1 was $12.14 (US$9.49)
per payable silver ounce, a 1% reduction compared to $12.24 ($11.08) per
ounce in 2014
- Average realized selling prices for silver and gold were
US$15.46 and US$1,148 per ounce respectively
- Cash and cash equivalents of $7.5
million were on hand at December 31,
2015
- Invested $8.9 million in capital
expenditures net of concentrate proceeds of $21.5 million from the sales of Avino mine
concentrates to Samsung
1
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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 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
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"Avino has delivered another year of strong financial and
operating results. In 2015, the mining industry continued to endure
challenging market conditions and depressed metal price's however
Avino, through the hard work of its team of professionals,
maintained its strong financial position and increased its
production and silver equivalent ounces sold. During the year we
continued to build our first class fleet of mining and production
equipment which has significantly contributed to our consolidated
all-in sustaining cash cost of $12.14
(US$9.49) per silver equivalent
ounce. We continue to believe that our 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
|
Fourth
Quarter 2015
|
Fourth
Quarter 2014
|
Change
|
Year
2015
|
Year
2014
|
Change
|
Operating
|
Tonnes
Milled
|
136,817
|
82,558
|
66%
|
517,887
|
201,751
|
157%
|
Silver Ounces
Produced
|
409,216
|
296,914
|
38%
|
1,625,285
|
969,524
|
68%
|
Gold Ounces
Produced
|
1,588
|
1,644
|
-3%
|
7,083
|
5,180
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37%
|
Copper Pounds
Produced
|
1,271,565
|
228,436
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457%
|
4,743,691
|
305,417
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1,453%
|
Silver Equivalent
Ounces1,2 Produced
|
761,767
|
436,235
|
75%
|
3,020,348
|
1,399,102
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116%
|
Silver Equivalent
Ounces1,2 Sold
|
241,114
|
244,956
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-2%
|
1,140,029
|
1,085,029
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5%
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Cash Costs per Silver
Equivalent Ounce1,2
|
$ 8.24
|
$9.73
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-15%
|
$ 8.45
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$ 9.29
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-9%
|
All-in Sustaining
Cost per Silver Equivalent Ounce1,2
|
$12.70
|
$10.94
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16%
|
$12.14
|
$ 12.24
|
-1%
|
Average Realized
Silver Price per Ounce ($US) ¹
|
$14.29
|
$17.18
|
-17%
|
$15.46
|
$19.04
|
-19%
|
Average Realized Gold
Price per Ounce ($US) ¹
|
$1,092
|
$1,213
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-10%
|
$1,148
|
$1,266
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-9%
|
Financial
|
Revenues
|
$ 3,860,109
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$3,714,692
|
4%
|
$19,082,847
|
$19,297,953
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-1%
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Mine Operating
Income
|
$1,471,826
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$1,489,376
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-1%
|
$ 8,121,153
|
$ 7,904,549
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3%
|
Net Income
|
$ 370,675
|
$ 469,145
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-24%
|
$ 483,424
|
$ 2,514,169
|
-81%
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Cash and Cash
Equivalents
|
$7,475,134
|
$4,249,794
|
76%
|
$ 7,475,134
|
$ 4,249,794
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76%
|
Working
Capital1
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$6,003,557
|
$6,617,877
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-9%
|
$6,003,557
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$ 6,617,877
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-9%
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Shareholders
|
Earnings per Share
("EPS") – Basic
|
$0.01
|
$0.01
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0%
|
$0.01
|
$0.08
|
-88%
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Cash Flow per
Share1,2
|
$(0.03)
|
$0.01
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-400%
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$0.01
|
$0.13
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-92%
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1.
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For comparison
purposes, the silver equivalent ratio has been calculated using
metal prices of US$16/oz Ag, US$1,150/oz Au, and US$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.
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2.
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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 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.
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Financial Results
The Company generated revenues of $19
million during 2015; a 1% decrease compared 2014.
Mine operating income was $8.1
million during 2015, an increase of $216,604 or 3% from $7,904,549 in 2014. During the year of 2015, net
income decreased by $2.1 million to
$483,424 or $0.01 per share, compared to net income of
$2,514,169 or $0.08 basic and diluted per share during 2014.
The primary reasons for the decrease were foreign exchange loss of
$833,822 due to the translation of
$USD denominated liabilities and an increase in income taxes.
Operational Results
Silver equivalent production for 2015 increased 116% to
3,020,348 oz1 compared to 1,399,102 oz in 2014. Silver
production for 2015 increased 68% to 1,625,285 oz compared to 2014.
Gold production for 2015 increased by 37% to 7,083 oz compared to
5,180 oz in 2014. Copper production for 2015 increased by 1,453% to
4,743,691 lbs compared to 305,417 lbs in 2014. Total mill feed
processed during 2015 was 517,887 dry tonnes compared to 201,751
dry tonnes during 2014, an increase of 157%. 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.
At the Avino mine, which began processing new underground
material using Mill Circuit 3 on January 1,
2015; silver equivalent ounces1 produced during
2015 totalled 1,801,997. Production for the third and fourth
quarters also includes output from Mill Circuit 2 which was used to
process mill feed from the Avino Mine during July, August, November
and December.
At the San Gonzalo Mine, silver equivalent ounces1
produced during the year of 2015 totalled 1,218,351. This
represents a 23% increase compared to 2014. All-in sustaining cash
costs during 2015 were $12.15 per
AgEq ounce1 compared to $11.96 in 2014, an increase of 2%.
Costs and Capital Expenditures
Consolidated all-in sustaining cash costs per AgEq
ounce1 during 2015 were $12.14 compared to $12.24 during the period of 2014, a decrease of
1%.
Capital expenditures during 2015, net of concentrate proceeds of
$22.3 million, were $8,885,687 compared to $13,804,382 during 2014.
Capital expenditures primarily relate to the Avino mine
advancement, the process plant expansion for Mill Circuit 3, and
mining and production equipment to advance operations at the San
Gonzalo, and Avino, and Bralorne mines.
1.
|
For comparison
purposes, the silver equivalent ratio has been calculated using
metal prices of US$16/oz Ag, US$1,150/oz Au, and US$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.
|
2.
|
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 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.
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Bralorne Mine
During 2015, Bralorne continued to prepare and evaluate a
strategic mine plan, including an assessment of more cost effective
mining methods and capital expenditures needed to bring the project
to a profitable position. The Company has acquired new mining
equipment including two new scoop trams and a rockbreaker from
Sandvik, and a loader from Caterpillar. Further, the Company has
ordered a new development jumbo from Sandvik and expects to take
delivery in the coming months. This brand new equipment will help
to reduce maintenance costs while increasing mining productivity
and efficiency when the project resumes operations. Ongoing
maintenance and improvements continued in 2015 and the Company has
been reviewing the requirements to increase processing capacity
should the resources and mine plan prove feasible and viable. A
raise to the embankment dam for the tailings storage facility was
completed in October 2015 and the
Company is currently in the process of obtaining the permits to
resume processing and mining activities from British Columbia's Ministry of Energy &
Mines and Ministry of Environment.
In November 2015, Bralorne, in
conjunction with North Island College, the government and the First
Nations formed a cohort to provide basic mining training for
members of the St'at'imc First Nation in Lillooet. Bralorne provided support and access
to mine site for hands-on training. The Company is maintaining open
lines of communication with First Nations communities, and
management continues its efforts to build meaningful positive
relationships with its stakeholders.
"I'm very happy to report a strong performance for Avino in
2015. Avino remains one of the few mining companies to post
significant growth, including a record year with 116% higher
production over 2014. We have met overall expectations of
management, improved our cost structure and strengthened our
balance sheet. We owe these results to our dedicated teams in
both Canada and Mexico. This is a very professional group that
continues to meet daily challenges with creativity and
enthusiasm. Our goal for 2016 is to maintain consistent
operating results and look towards our next round of
expansion. With our new Samsung agreement in place, a
modernized plant and metals prices that appear to be stabilizing,
we believe Avino's future is bright."
- 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 March 3, 2016 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.
SOURCE Avino Silver & Gold
Mines Ltd.