VANCOUVER - Avino Silver & Gold Mines Ltd. (TSX:ASM)(NYSE American:ASM)(FSE:GV6) a long-standing silver producer in Mexico, announces its consolidated financial results for the Company's fourth quarter and year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights
Revenues of $12.5 million
Mine operating income of $2.6 million, $3.6 million net of non-cash costs of sales
Net Income of $0.6 million
Earnings before interest, taxes, depreciation and amortization ('EBITDA')3 of $1.1 million
Adjusted earnings3 of $2.0 million
Cash costs per silver equivalent ounce payable sold1,2,3 of $15.04
All in sustaining cash costs per equivalent payable ounce sold1,2,3 of $21.67
Full Year 2023 Financial Highlights
Revenues of $43.9 million
Mine operating income of $7.8 million, $11.1 million net of non-cash costs of sales
Net Income of $0.5 million
Earnings before interest, taxes, depreciation and amortization ('EBITDA')3 of $2.5 million
Adjusted earnings3 of $4.6 million
Cash costs per silver equivalent payable ounce sold1,2,3 of $15.61
All in sustaining cash costs per silver equivalent payable ounce sold1,2,3 of $21.87
Cash of $2.7 million at December 31, 2023
Working capital3 of $9.7 million at December 31, 2023
The earnings should be read in conjunction with the Company's Financial Statements and Management's Discussion and Analysis (MD&A) for the corresponding period, which can be viewed on the Company's website at www.avino.com, or on SEDAR+ at www.sedarplus.ca or on EDGAR at www.sec.gov.
'The fourth quarter showed steady improvement with positive net income and reduced operating costs,' said Nathan Harte, Chief Financial Officer. 'With lower per ounce costs and improved margins, we are well positioned for 2024. With costs stabilizing in Mexico, our team has worked diligently to preserve our cost structure. Working capital has improved throughout the year, up to close to $10 million at the end of the year and we remain confident in our plans to move forward with La Preciosa without significant capital spending.'
'Cash management remains top of mind and Avino, like other Mexican miners in 2023, experienced inflationary pressures coupled with a stronger Mexican Peso. This environment proved challenging, said David Wolfin, President and CEO. 'However, through strong cost control measures across the Company, we have been able to moderately lower costs over the last quarter. We continue to focus on our growth goals and have recently made significant progress with our plans for La Preciosa, our development stage mineral property which hosts a large undeveloped primary silver resource in Mexico, which is located adjacent to Avino's existing operations in Durango, Mexico. The addition of La Preciosa's mineral resource inventory significantly increased Avino's consolidated NI 43-101 mineral resources, which is currently 371 million silver equivalent ounces.'
La Preciosa
On February 28, 2024, the Company provided an update on recently completed and ongoing work in connection with La Preciosa. Capital costs for 2024 are expected to be between US$3.0 - US$4.0 million and will include surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia Veins. Avino already has the mining equipment necessary to commence operations at La Preciosa. The application for the Environmental Permit has been submitted by the Company to the relevant authorities. A further permit will be submitted shortly after receipt of the Environmental Permit, which is required to commence the construction of the portal, haulage ramp, and the mining of the Gloria and Abundancia veins. Avino anticipates receiving these permits sometime in 2024. Avino is fully committed to moving this project forward as it factors prominently in the Company's 5-year growth strategy. Recent photos from the La Preciosa property can be viewed on our website by clicking here.
Consistent Production Results at Avino:
Silver equivalent production was steady although 27% lower compared to Q4 2022 and 9% lower compared to full year 2022. Overall production was impacted by mining in lower grade areas. Although grades were lower in 2023, we did see positive increases as we moved into other blocks of the mine in the fourth quarter. 2023 planned production levels for 2024, both the Avino Mine and stockpiles from La Preciosa will be 700,000 - 750,000 tonnes for mill processing. Targeted full year production between 2.5M and 2.8M silver equivalent ounces.
Pre-Feasibility Study - Oxide Tailings Project
On February 5, 2024, the Company announced the completion of the Pre-Feasibility Study ('PFS') for its Oxide Tailings Project ('OTP') at the Avino Mine Operations. The completion of the PFS is a key milestone in our growth trajectory.
The study highlighted Proven and Probable Mineral Reserves, a first in Avino's long history, of 6.70 Million tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively.
The OTP is considered one of our 3 catalysts for growth as a future gold and silver production asset.
2023 Drill Programs - Announced Exceptional Drill Results
Avino completed its planned and budgeted drilling program for 2023 by drilling 7,545 metres in 13 drill holes. This included the best intercept in Avino's 55-year history and was announced on July 5, 2023. Our team of geologists are implementing recommendations made by our consulting structural geologists to further study the potential of the entire mineralization. Drilling news releases for the year can be found in these links: January 5, 2023, May 23, 2023, July 5, 2023, and September 14, 2023.
Avino Exploration and Evaluation for 2024
The Company's budgeted exploration and evaluation expenditures for 2024 will be focused on regional exploration and further understanding of the structural geology below the current Avino Mine production area, with no drilling planned. The Company's priority is to move La Preciosa forward to development and production.
Dry-Stack Tailings Facility
The facility has been fully operational for a year. The conveyor system is installed and is currently transporting the pressed dry residues to the disused Avino open pit area. A tab is now available on our website that provides further information on our tailings management system along with videos (in English and Spanish) that can be viewed. In addition, a selection of short videos of the facility in operation can be viewed on our Company website, under Videos and Media.
Capital Expenditures
Fourth quarter capital expenditures company-wide were $1.1 million, bringing the year-to-date total to $8.5 million, compared to just under $9.0 million for the full year 2022 and within the range as previously disclosed in the Avino 2023 Outlook press release which can be found here on the Company's website.
ESG Initiatives
Avino continues to strengthen and cultivate relationships with our local communities and stakeholders as it is our goal to contribute in positive and meaningful ways. We view the communities near the core of our operations as being indelibly at the center of successful mining projects. With recent additions to our Community Relations team in Durango, our energy has been directed towards supporting education in the local schools. Our ambition is to educate a younger population in their backyard, to encourage them to see the benefits of mining, and allow them to dream of a future where they can have a real career close to home.
Mexican nationals account for 100% of our mine work force. Currently, we have 448 direct jobs which includes the workers at the mine site and in our Durango offices. This translates to approximately 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area. After working diligently towards obtaining an ESR designation in 2022, the team in Durango has received this designation for the second time in August 2023, and is currently working on repeating this distinction.
Non-IFRS Measures
The financial results in this news release include references to cash cost per silver equivalent payable ounce, all-in sustaining cash cost per silver equivalent payable ounce, EBITDA, and adjusted earnings, all of which are non-IFRS measures. These measures are used by the Company to manage and evaluate the 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. For a reconciliation of non-GAAP and GAAP measures, please refer to the 'Non-IFRS Measures' section of the Company's Management Discussion and Analysis dated March 20, 2024 for the year ended December 31, 2023, which is incorporated by reference within this news release and is available on SEDAR+ at www.sedarplus.ca.
About Avino
Avino is a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company's silver, gold and copper production remains unhedged. The Company intends to maintain long term sustainable and profitable mining operations to reward shareholders and the community alike through our growth at the historic Avino Property and the strategic acquisition of the adjacent La Preciosa which was finalized in Q1 2022. Avino currently controls mineral resources, as per NI 43-101, with a total mineral content of 371 million silver equivalent ounces, within our district-scale land package. 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 X (formerly Twitter) at @Avino_ASM and on LinkedIn at Avino Silver & Gold Mines. '
Contact:
Tel: 604-682-3701
Email: IR@avino.com
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 mineral resource estimate for the Company's Avino Property, including La Preciosa, located near Durango in west-central Mexico (the 'Avino Property') with an effective date of November 30, 2022, prepared for the Company, and references to Measured, Indicated, Inferred Resources dated October 16, 2023 as well as the Prefeasibility Study dated January 16, 2024 and references to Measured, Indicated Resources, and Proven and Probable Mineral Reserves referred to in this press release. This information and these statements, referred to herein as 'forward-looking statements' are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the estimated amount and grade of mineral reserves and mineral resources, including the cut-off grade; (ii) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of operating the mine, of sustaining capital, of strip ratios and the duration of financing payback periods; (iii) the estimated amount of future production, both ore processed and metal recovered and recovery rates; (iv) estimates of operating costs, life of mine costs, net cash flow, net present value (NPV) and economic returns from an operating mine and (v) the completion of the full Technical Report, including a Preliminary Economic Assessment, and its timing. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as 'expects', 'anticipates', 'plans', 'projects', 'estimates', 'envisages', 'assumes', 'intends', 'strategy', 'goals', 'objectives' or variations thereof or stating that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. 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.
AVINO SILVER & GOLD MINES LTD. 
