UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the Month of May, 2024

 

Commission File Number: 001-35254

 

AVINO SILVER & GOLD MINES LTD.

 

Suite 900, 570 Granville Street, Vancouver, BC V6C 3P1

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

☐ Form 20-F    ☒  Form 40-F

 

 

 

 

Explanatory Note

 

Avino Silver & Gold Mines Ltd. (the “Company”) is furnishing this Form 6-K to provide its financial information for the three months ended March 31, 2024, and to incorporate such financial information into the Company’s registration statement referenced below.

 

Exhibits 99.1 and 99.2 attached hereto are hereby incorporated by reference into the Company’s Registration Statement on Form F-10 (Registration Statement File number 333-270315)  to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed.

 

Exhibits

 

The following exhibits are filed as part of this Form 6-K.

 

Exhibit No.   

 

Document

99.1

 

Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2024 and 2023 (Unaudited)

99.2 

 

Management’s Discussion & Analysis

101.INS

 

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

101.SCH 

 

Inline XBRL Taxonomy Extension Schema Document

101.CAL 

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF 

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB 

 

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE  

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104         

 

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

 

 

2

 

  

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

AVINO SILVER & GOLD MINES LTD.

 

 

Date: May 8, 2024

By:

/s/ Jennifer Trevitt

Jennifer Trevitt

Corporate Secretary

 

 

3

EXHIBIT 99.1

 

avino_ex991img2.jpg

 

AVINO SILVER & GOLD MINES LTD.

 

 Condensed Consolidated Interim Financial Statements

 

For the three months ended March 31, 2024 and 2023

 

(Unaudited)

 

 

 

 

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in thousands of US dollars - Unaudited)

  

 

 

Note

 

 

March 31,

2024

 

 

December 31,

2023

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash

 

 

 

 

$3,474

 

 

$2,688

 

Amounts receivable

 

 

 

 

 

1,856

 

 

 

3,303

 

Amounts due from related parties

 

 

10(b)

 

 

 

194

 

 

 

167

 

Taxes recoverable

 

 

4

 

 

 

6,502

 

 

 

6,580

 

Prepaid expenses and other assets

 

 

 

 

 

 

2,077

 

 

 

1,971

 

Inventory

 

 

5

 

 

 

8,338

 

 

 

8,826

 

Total current assets

 

 

 

 

 

 

22,441

 

 

 

23,535

 

Exploration and evaluation assets

 

 

7

 

 

 

51,911

 

 

 

50,111

 

Plant, equipment and mining properties

 

 

9

 

 

 

52,550

 

 

 

53,069

 

Long-term investments

 

 

6

 

 

 

1,043

 

 

 

934

 

Other assets

 

 

 

 

 

 

699

 

 

 

691

 

Total assets

 

 

 

 

 

$128,644

 

 

$128,340

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

$10,713

 

 

$11,867

 

Taxes payable

 

 

 

 

 

 

189

 

 

 

127

 

Current portion of finance lease obligations

 

 

 

 

 

 

1,590

 

 

 

1,650

 

Current portion of equipment loans

 

 

 

 

 

 

164

 

 

 

164

 

Total current liabilities

 

 

 

 

 

 

12,656

 

 

 

13,808

 

Finance lease obligations

 

 

 

 

 

 

1,159

 

 

 

1,445

 

Equipment loans

 

 

 

 

 

 

151

 

 

 

195

 

Reclamation provision 

 

 

11

 

 

 

2,264

 

 

 

2,195

 

Deferred income tax liabilities

 

 

 

 

 

 

4,614

 

 

 

4,696

 

Total liabilities

 

 

 

 

 

 

20,844

 

 

 

22,339

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

12

 

 

 

153,088

 

 

 

151,688

 

Equity reserves

 

 

 

 

 

 

10,952

 

 

 

11,041

 

Treasury shares

 

 

 

 

 

 

(97 )

 

 

(97 )

Accumulated other comprehensive loss

 

 

 

 

 

 

(5,319 )

 

 

(5,208 )

Accumulated deficit

 

 

 

 

 

 

(50,824 )

 

 

(51,423 )

Total equity

 

 

 

 

 

 

107,800

 

 

 

106,001

 

Total liabilities and equity

 

 

 

 

 

$128,644

 

 

$128,340

 

 

Commitments – Note 15

 

Approved by the Board of Directors on May 8, 2024.

 

Peter Bojtos

Director

 

David Wolfin

Director

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
- 1 -

 

   

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)

(Expressed in thousands of US dollars, other than per share amounts - Unaudited)

 

 

 

 

 

 

Three months ended March 31,

 

 

 

Note

 

 

2024

 

 

2023

 

Revenue from mining operations

 

 

 13

 

 

$12,393

 

 

$9,825

 

Cost of sales

 

 

 13

 

 

 

10,054

 

 

 

7,974

 

Mine operating income

 

 

 

 

 

 

2,339

 

 

 

1,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

12(c)(d) 

 

 

1,272

 

 

 

1,184

 

Share-based payments

 

 

12 

 

 

 

423

 

 

 

339

 

 

 

 

 

 

 

 

644

 

 

 

328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other items

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

 

 

 

 

3

 

 

 

209

 

Gain (loss) on long-term investments

 

 

 6

 

 

 

132

 

 

 

(319)

Fair value adjustment on warrant liability

 

 

 

 

 

 

-

 

 

 

(293)

Foreign exchange gain (loss)

 

 

 

 

 

 

80

 

 

 

(136)

Finance cost

 

 

 

 

 

 

(2)

 

 

(74)

Accretion of reclamation provision

 

 

 11

 

 

 

(51)

 

 

(11)

Interest expense

 

 

 

 

 

 

(90)

 

 

(45)

Income (loss) before income taxes

 

 

 

 

 

 

716

 

 

 

(341)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

 

 

 

 

 

(199)

 

 

(25)

Deferred income tax recovery

 

 

 

 

 

 

82

 

 

 

14

 

Income tax expense

 

 

 

 

 

 

(117)

 

 

(11)

Net income (loss)

 

 

 

 

 

 

599

 

 

 

(352)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

Currency translation differences

 

 

 

 

 

 

(111)

 

 

(263)

Total comprehensive income (loss)

 

 

 

 

 

$488

 

 

$(615)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share

 

 

12(e) 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

$0.00

 

 

$(0.00)

Diluted

 

 

 

 

 

$0.00

 

 

$(0.00)

Weighted average number of common shares outstanding

 

 

12(e) 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

130,027,962

 

 

 

118,572,700

 

Diluted

 

 

 

 

 

 

133,022,671

 

 

 

122,602,929

 

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
- 2 -

 

 

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Changes in Equity

(Expressed in thousands of US dollars - Unaudited)

 

 

 

Note

 

 

Number of Common Shares

 

 

Share Capital Amount

 

 

Equity Reserves

 

 

Treasury Shares

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Accumulated Deficit

 

 

Total Equity

 

Balance, January 1, 2023

 

 

 

 

 

118,349,090

 

 

$145,515

 

 

$9,852

 

 

$(97)

 

$(5,223)

 

$(52,026)

 

$98,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares issued:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the market issuances

 

 

 12

 

 

 

253,700

 

 

 

207

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

207

 

Carrying value of RSUs exercised

 

 

 12

 

 

 

592,667

 

 

 

512

 

 

 

(512)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Issuance costs

 

 

 12

 

 

 

-

 

 

 

(5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5)

Share-based payments

 

 

 12

 

 

 

-

 

 

 

-

 

 

 

339

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

339

 

Net loss for the period

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(352)

 

 

(352)

Currency translation differences

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(263)

 

 

-

 

 

 

(263)

Balance, March 31, 2023

 

 

 

 

 

 

119,195,457

 

 

$146,229

 

 

$9,679

 

 

$(97)

 

$(5,486)

 

$(52,378)

 

$97,947

 

 

 

 

Note

 

 

Number of Common Shares

 

 

Share Capital Amount

 

 

Equity Reserves

 

 

Treasury Shares

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Accumulated Deficit

 

 

Total Equity

 

Balance at January 1, 2024

 

 

 

 

 

128,728,248

 

 

$151,688

 

 

$11,041

 

 

$(97)

 

$(5,208)

 

$(51,423)

 

$106,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares issued:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the market issuances

 

 

12 (b)

 

 

1,886,248

 

 

 

926

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

926

 

Carrying value of RSUs exercised

 

 

12 (d)

 

 

585,265

 

 

 

512

 

 

 

(512)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Issuance costs

 

 

 

 

 

 

-

 

 

 

(38)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(38)

Share-based payments

 

 

12 (c) (d)

 

 

-

 

 

 

-

 

 

 

423

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

423

 

Net income for the period

 

 

12 (e)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

599

 

 

 

599

 

Currency translation differences

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(111)

 

 

-

 

 

 

(111)

Balance at March 31, 2024

 

 

 

 

 

 

131,199,761

 

 

$153,088

 

 

$10,952

 

 

$(97)

 

$(5,319)

 

$(50,824)

 

$107,800

 

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
- 3 -

 

 

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in thousands of US dollars - Unaudited)

 

 

 

 

 

Three months ended March 31,

 

 

 

Note

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

$599

 

 

$(352 )

Adjustments for non-cash items:

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense (recovery)

 

 

 

 

 

(82 )

 

 

(14 )

Depreciation and depletion

 

 

 

 

 

857

 

 

 

705

 

Accretion of reclamation provision

 

 

11

 

 

 

51

 

 

 

11

 

(Gain) loss on investments

 

 

6

 

 

 

(132 )

 

 

319

 

Unrealized foreign exchange gain

 

 

 

 

 

 

(88 )

 

 

(161 )

Unwinding of fair value adjustment

 

 

 

 

 

 

-

 

 

 

74

 

Fair value adjustment on warrant liability

 

 

 

 

 

 

-

 

 

 

293

 

Share-based payments

 

 

 

 

 

 

423

 

 

 

339

 

 

 

 

 

 

 

 

1,628

 

 

 

1,214

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in non-cash working capital items

 

 

16

 

 

 

719

 

 

 

(766 )

Cash provided by operating activities

 

 

 

 

 

 

2,347

 

 

 

448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Shares and units issued for cash, net of issuance costs

 

 

 

 

 

 

888

 

 

 

202

 

Lease liability payments

 

 

 

 

 

 

(452 )

 

 

(280 )

Equipment loan payments

 

 

 

 

 

 

(44 )

 

 

(88 )

Cash provided by (used in) financing activities

 

 

 

 

 

 

392

 

 

 

(166 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and evaluation expenditures

 

 

 

 

 

 

(1,116 )

 

 

(389 )

Additions to plant, equipment and mining properties

 

 

 

 

 

 

(851 )

 

 

(3,450 )

Acquisition of La Preciosa

 

 

 

 

 

 

-

 

 

 

(5,000 )

Cash provided by (used in) investing activities

 

 

 

 

 

 

(1,967 )

 

 

(8,839 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in cash

 

 

 

 

 

 

772

 

 

 

(8,557 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

 

 

 

 

14

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, beginning

 

 

 

 

 

 

2,688

 

 

 

11,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, ending

 

 

 

 

 

$3,474

 

 

$2,697

 

 

Supplementary Cash Flow Information (Note 16)

 

The accompanying notes are an integral part of the condensed consolidated interim financial statements

 

 
- 4 -

 

   

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

1. NATURE OF OPERATIONS

 

Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.

 

The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada (except for the province of Quebec) and the United States, and trades on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges.

 

The Company operates the Elena Tolosa Mine (“ET Mine” or “Avino Mine”) which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Avino property also hosts the San Gonzalo Mine, which is currently on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada.

 

2. BASIS OF PRESENTATION

 

Statement of Compliance

 

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting under International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual audited consolidated financial statements of the Company. These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2023, annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB.

 

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these unaudited condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out in the December 31, 2023 annual consolidated financial statements are applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements as if the policies have always been in effect.

 

Basis of Presentation

 

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements as if the policies have always been in effect.

 

Foreign Currency Translation

 

Foreign currency transactions

 

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the statement of financial position. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.

 

 
- 5 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

Foreign operations

 

Subsidiaries that have functional currencies other than the US dollar translate their statement of operations items at the average rate during the year. Assets and liabilities are translated at exchange rates prevailing at the end of each reporting period. Exchange rate variations resulting from the retranslation at the closing rate of the net investment in these subsidiaries, together with differences between their statement of operations items translated at actual and average rates, are recognized in accumulated other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange difference is recognized in the statement of operations.

 

Significant Accounting Judgments and Estimates

 

The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its unaudited condensed consolidated interim financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

 

The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2024, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2023.

 

Basis of Consolidation

 

The audited consolidated financial statements include the accounts of the Company and its Mexican subsidiaries as follows:

 

Subsidiary

 

Ownership Interest

 

 

Jurisdiction

 

Nature of Operations

 

Oniva Silver and Gold Mines S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Nueva Vizcaya Mining, S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Promotora Avino, S.A. de C.V. (“Promotora”)

 

 

79.09%

 

Mexico

 

Holding company

 

Compañía Minera Mexicana de Avino, S.A. de C.V.

(“Avino Mexico”)

 

98.45% direct

1.22% indirect (Promotora)

99.67% effective

 

 

Mexico

 

Mining and exploration

 

La Luna Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

La Preciosa Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

Proyectos Mineros La Preciosa S.A. de C.V.

 

 

100%

 

Mexico

 

Mining and exploration

 

Cervantes LLP

 

 

100%

 

U.S.

 

Holding company

 

 

 
- 6 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

  

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.

 

3. RECENT ACCOUNTING PRONOUNCEMENTS

 

New and amended IFRS that are effective for the current year:

 

Certain new accounting standards and interpretations have been published that are either applicable in the current year, or are not mandatory for the current period and have not been early adopted. We have assessed these standards, and they are not expected to have a material impact on the Company in the current or future reporting periods.

 

4. TAXES RECOVERABLE

 

The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.

 

 

 

March 31,

2024

 

 

December 31,

2023

 

VAT recoverable

 

$2,767

 

 

$3,231

 

GST recoverable

 

 

14

 

 

 

20

 

Income taxes recoverable

 

 

3,721

 

 

 

3,329

 

 

 

$6,502

 

 

$6,580

 

 

5. INVENTORY

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Process material stockpiles

 

$2,944

 

 

$4,050

 

Concentrate inventory

 

 

3,017

 

 

 

2,448

 

Materials and supplies

 

 

2,377

 

 

 

2,328

 

 

 

$8,338

 

 

$8,826

 

 

The amount of inventory recognized as an expense for the three months ended March 31, 2024 totalled $10,054 (2023 – $7,794). See Note 13 for further details.

 

During the three months ended March 31, 2024, the Company wrote down Nil of materials and supplies inventory due to obsolescence (year ended December 31, 2023 – $270).

 

 
- 7 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

6. LONG-TERM INVESTMENTS

 

The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:

 

For the three months ended March 31, 2024:

 

 

 

Fair Value

December 31,

 

 

Net

 

 

Movements in foreign

 

 

Fair value adjustments

 

 

Fair Value

March 31,

 

 

 

2023

 

 

 Additions

 

 

exchange

 

 

for the period

 

 

2024

 

Talisker Resources Common Shares

 

$782

 

 

$-

 

 

$(20)

 

$141

 

 

$903

 

Silver Wolf Exploration Ltd. Common Shares

 

 

71

 

 

 

-

 

 

 

(2)

 

 

9

 

 

 

78

 

Endurance Gold Corp. Common Shares

 

 

81

 

 

 

-

 

 

 

(1)

 

 

(18)

 

 

62

 

 

 

$934

 

 

$-

 

 

$(23)

 

$132

 

 

$1,043

 

 

7. EXPLORATION AND EVALUATION ASSETS

 

The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:

 

 

 

Avino,

 Mexico

 

 

La Preciosa, Mexico

 

 

British Columbia & Yukon, Canada

 

 

Total

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2022

 

$11,828

 

 

$37,975

 

 

$1

 

 

$49,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

La Preciosa non-core concessions transfer

 

 

2,946

 

 

 

(2,946)

 

 

 

 

 

 

-

 

Drilling and exploration

 

 

877

 

 

 

435

 

 

 

-

 

 

 

1,312

 

Assessments and taxes

 

 

88

 

 

 

(930)

 

 

-

 

 

 

(842)

Effect of movements in exchange rates

 

 

22

 

 

 

(122)

 

 

-

 

 

 

(100)

Option income

 

 

(63)

 

 

-

 

 

 

-

 

 

 

(63)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2023

 

$15,698

 

 

$34,412

 

 

$1

 

 

$50,111

 

Costs incurred during 2024:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling and exploration

 

 

81

 

 

 

662

 

 

 

-

 

 

 

743

 

Assessments and taxes

 

 

100

 

 

 

959

 

 

 

-

 

 

 

1,059

 

Effect of movements in exchange rates

 

 

(2)

 

 

-

 

 

 

-

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2024

 

$15,877

 

 

$36,033

 

 

$1

 

 

$51,911

 

 

 
- 8 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

(a) Avino, Mexico

 

The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following two groups:

 

(i) Avino Mine area property

 

The Avino Mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares. Within the Avino Mine site area is the Company’s San Gonzalo Mine, which achieved production at levels intended by management as of October 1, 2012, and on this date accumulated exploration and evaluation costs were transferred to mining properties.

 

(ii) Gomez Palacio/Ana Maria property

 

The Ana Maria property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares, and is also known as the Ana Maria property.

 

Option Agreement – Silver Wolf Exploration Ltd. (formerly Gray Rock Resources Ltd.) (“Silver Wolf”)

 

On March 11, 2021, the Company entered into an option agreement to grant Silver Wolf the exclusive right to acquire a 100% interest in the Ana Maria and El Laberinto properties in Mexico (the “Option Agreement”).

 

All exploration expenditure requirements on the properties have been met as of March 31, 2024, and Silver Wolf is in compliance with the terms of the Option Agreement.

 

The Option Agreement between the Company and Silver Wolf is considered a related party transaction as the two companies have directors in common.

 

Unification La Platosa properties

 

The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concessions situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.

 

In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015.

 

Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$250 during the year ended December 31, 2012.The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes.

 

Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property.

 

 
- 9 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

(b) La Preciosa, Mexico

 

On March 21, 2022, the Company received approval for the closing of the acquisition of the La Preciosa property from Coeur Mining Inc.

 

(c) British Columbia & Yukon, Canada

 

Eagle Property - Yukon

 

The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property. During the year ended December 31, 2023, the Company sold to a subsidiary of Hecla Mining Company (“Hecla”) the Eagle Property for cash consideration of C$250. The gain on sale of the Eagle Property was recorded to “Interest and other income” on the consolidated statements of operations and comprehensive income (loss).

 

Minto and Olympic-Kelvin properties – British Columbia

 

On May 2, 2022, the Company granted Endurance Gold Corporation the right to acquire an option to earn 100% ownership of the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grant and mineral claims (the “Olympic Claims”).

 

As of March 31, 2024, Endurance was in compliance with all terms of the Option agreement.

 

8. NON-CONTROLLING INTEREST

 

At March 31, 2024, the Company had an effective 99.67% (December 31, 2023 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2023 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and accordingly have not been presented separately in the consolidated financial statements.

 

 
- 10 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

9. PLANT, EQUIPMENT AND MINING PROPERTIES

 

 

 

Mining

properties

 

 

Office equipment, furniture, and fixtures

 

 

Computer equipment

 

 

Mine machinery and transportation equipment

 

 

Mill machinery and processing equipment

 

 

Buildings and construction in process

 

 

Total

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2023

 

 

14,687

 

 

 

763

 

 

 

774

 

 

 

14,930

 

 

 

23,294

 

 

 

14,693

 

 

 

69,141

 

Additions / Transfers

 

 

3,716

 

 

 

78

 

 

 

1,176

 

 

 

3,270

 

 

 

3,079

 

 

 

701

 

 

 

12,020

 

Writedowns

 

 

-

 

 

 

(6)

 

 

(22)

 

 

(629)

 

 

(141)

 

 

-

 

 

 

(798)

Effect of movements in exchange rates

 

 

(28)

 

 

9

 

 

 

1

 

 

 

2

 

 

 

-

 

 

 

(24)

 

 

(40)

Balance at December 31, 2023

 

 

18,375

 

 

 

844

 

 

 

1,929

 

 

 

17,573

 

 

 

26,232

 

 

 

15,370

 

 

 

80,323

 

Additions / Transfers

 

 

187

 

 

 

6

 

 

 

2

 

 

 

138

 

 

 

409

 

 

 

(454)

 

 

288

 

Writedowns

 

 

-

 

 

 

(1)

 

 

(1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2)

Effect of movements in

exchange rates

 

 

3

 

 

 

(2)

 

 

1

 

 

 

(1)

 

 

-

 

 

 

(21)

 

 

(20)

Balance at March 31, 2024

 

 

18,565

 

 

 

847

 

 

 

1,931

 

 

 

17,710

 

 

 

26,641

 

 

 

14,895

 

 

 

80,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED DEPLETION AND DEPRECIATION / IMPAIRMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2023

 

 

9,106

 

 

 

441

 

 

 

598

 

 

 

5,178

 

 

 

6,733

 

 

 

3,029

 

 

 

25,085

 

Additions / Transfers

 

 

367

 

 

 

111

 

 

 

204

 

 

 

676

 

 

 

1,170

 

 

 

294

 

 

 

2,822

 

Writedowns

 

 

-

 

 

 

(4)

 

 

(21)

 

 

(619)

 

 

(9)

 

 

-

 

 

 

(653)

Balance at December 31, 2023

 

 

9,473

 

 

 

548

 

 

 

781

 

 

 

5,235

 

 

 

7,894

 

 

 

3,323

 

 

 

27,254

 

Additions / Transfers

 

 

103

 

 

 

21

 

 

 

100

 

 

 

4

 

 

 

480

 

 

 

77

 

 

 

785

 

Balance at March 31, 2024

 

 

9,576

 

 

 

569

 

 

 

881

 

 

 

5,239

 

 

 

8,374

 

 

 

3,400

 

 

 

28,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2024

 

 

8,989

 

 

 

278

 

 

 

1,050

 

 

 

12,471

 

 

 

18,267

 

 

 

11,495

 

 

 

52,550

 

At December 31, 2023

 

 

8,902

 

 

 

296

 

 

 

1,148

 

 

 

12,339

 

 

 

18,338

 

 

 

12,047

 

 

 

53,069

 

 

 
- 11 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

Included in Buildings and construction in process above are assets under construction of $3,341 as at March 31, 2024 (December 31, 2023 - $3,166) on which no depreciation was charged in the periods then ended. Once the assets are available for use, they will be transferred to the appropriate class of plant, equipment and mining properties.

 

As of March 31, 2024, the Company performed an evaluation of the property plant and equipment and recorded a write-down of $1 (December 31, 2023 - $144) against the carrying value of mine and mill machinery and transportation equipment due to damage and obsolescence.

 

As at March 31, 2024, plant, equipment and mining properties included a net carrying amount of $5,850 (December 31, 2023 - $5,832) for mining equipment and right of use assets under lease.

 

10. RELATED PARTY TRANSACTIONS AND BALANCES

 

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.

 

(a) Key management personnel

 

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel is as follows:

 

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Salaries, benefits, and consulting fees

 

$

293

 

 

$

284

 

Share-based payments

 

 

387

 

 

 

321

 

 

 

$

680

 

 

$

605

 

 

(b) Amounts due to/from related parties

 

In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand.

 

The following table summarizes the amounts were due to/(from) related parties:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Oniva International Services Corp.

 

$

100

 

 

$

102

 

Directors Fees

 

 

44

 

 

 

-

 

Silver Wolf Exploration Ltd.

 

 

(338

)

 

 

(269

)

 

 

$

(194

)

 

$

(167

)

 

For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s President and CEO and also a director, for consulting services. For the three months ended March 31, 2024, the Company paid $71 (March 31, 2023 - $71) to ICC.

 

(c) Other related party transactions

 

The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company, with a 2.5% markup. David Wolfin, President & CEO, and a director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

 

 
- 12 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

The transactions with Oniva are summarized below:

 

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Salaries and benefits

 

$

254

 

 

$

245

 

Office and miscellaneous

 

 

133

 

 

 

133

 

 

 

$

387

 

 

$

378

 

 

11. RECLAMATION PROVISION

 

Management’s estimate of the reclamation provision at March 31, 2024, is $2,264 (December 31, 2023 – $2,195), and the undiscounted value of the obligation is $5,627 (December 31, 2023 – $5,491).

 

The present value of the obligation was calculated using a risk-free interest rate of 9.72% (December 31, 2023 – 9.82%) and an inflation rate of 3.88% (December 31, 2023 – 3.76%). Reclamation activities are estimated to begin in 2025 for the San Gonzalo Mine and in 2042 for the Avino Mine.

 

A reconciliation of the changes in the Company’s reclamation provision is as follows:

 

 

 

March 31,

2024

December 31,

2023

 

 

 

 

 

 

 

 

Balance at beginning of the period

 

$

2,195

 

 

$

445

 

Changes in estimates

 

 

-

 

 

 

1,615

 

Unwinding of discount related to continuing operations

 

 

51

 

 

 

49

 

Effect of movements in exchange rates

 

 

18

 

 

 

86

 

Balance at end of the period

 

$

2,264

 

 

$

2,195

 

 

12. SHARE CAPITAL AND SHARE-BASED PAYMENTS

 

(a) Authorized: Unlimited common shares without par value

 

(b) Issued:

 

 

(i)

During the three months ended March 31, 2024, the Company issued 1,886,248 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $926. The Company paid a 2.75% cash commission of $25 on gross proceeds, for net proceeds of $901. The Company also incurred $13 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.

 

 

 

 

During the three months ended March 31, 2024, the Company issued 585,265 common shares upon exercise of RSUs. As a result, $512 was recorded to share capital.

 

 

 

 

(ii)

During the year ended December 31, 2023, the Company issued 9,373,825 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $5,648. The Company paid a 2.75% cash commission of $155 on gross proceeds, for net proceeds of $5,493. The Company also incurred $339 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.

 

 

 

 

During the year ended December 31, 2023, the Company issued 1,005,333 common shares upon exercise of RSUs. As a result, $1,019 was recorded to share capital.

 

 
- 13 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

(c) Stock options:

 

The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date.

 

Continuity of stock options is as follows:

 

 

 

Underlying

Shares

 

 

Weighted Average Exercise Price (C$)

 

 

 

 

 

 

 

 

Stock options outstanding, January 1, 2023

 

 

4,256,000

 

 

$1.36

 

Granted

 

 

2,545,000

 

 

$1.12

 

Expired

 

 

(105,000)

 

$1.30

 

Cancelled / Forfeited

 

 

(30,000)

 

$1.40

 

Stock options outstanding, December 31, 2023

 

 

6,666,000

 

 

$1.27

 

Granted

 

 

2,500,000

 

 

$0.78

 

Cancelled / Forfeited

 

 

(190,000)

 

$1.26

 

Stock options outstanding, March 31, 2024

 

 

8,976,000

 

 

$1.13

 

Stock options exercisable, March 31, 2024

 

 

6,401,000

 

 

$1.27

 

 

The following table summarizes information about the stock options outstanding and exercisable at March 31, 2024:

 

 

 

 

 

Outstanding

 

 

Exercisable

 

        Expiry Date

 

Price (C$)

 

 

Number of Options

 

 

Weighted Average Remaining Contractual Life (Years)

 

 

Number of Options

 

 

Weighted Average Remaining Contractual Life (Years)

 

August 21, 2024

 

$0.79

 

 

 

126,000

 

 

 

0.39

 

 

 

126,000

 

 

 

0.39

 

August 4, 2025

 

$1.64

 

 

 

1,620,000

 

 

 

1.35

 

 

 

1,620,000

 

 

 

1.35

 

March 25, 2027

 

$1.20

 

 

 

2,255,000

 

 

 

2.98

 

 

 

2,255,000

 

 

 

2.98

 

May 4, 2027

 

$0.92

 

 

 

25,000

 

 

 

3.09

 

 

 

25,000

 

 

 

3.09

 

March 29, 2028

 

$1.12

 

 

 

2,300,000

 

 

 

4.00

 

 

 

2,300,000

 

 

 

4.00

 

July 10, 2028

 

$1.12

 

 

 

150,000

 

 

 

4.26

 

 

 

75,000

 

 

 

4.26

 

March 25, 2029

 

$0.78

 

 

 

2,500,000

 

 

 

4.99

 

 

 

-

 

 

 

4.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,976,000

 

 

 

3.49

 

 

 

6,401,000

 

 

 

2.90

 

 

 
- 14 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

Valuation of stock options requires the use of estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the stock options was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Weighted average assumptions:

 

 

 

 

 

 

 Risk-free interest rate

 

 

3.51%

 

 

3.10%

 Expected dividend yield

 

 

0%

 

 

0%

 Expected warrant life (years)

 

 

5

 

 

 

5

 

 Expected stock price volatility

 

 

60.73%

 

 

61.10%

 Expected forfeiture rate

 

 

15%

 

 

17%

Weighted average fair value

 

C$

0.43

 

 

C$

0.60

 

 

During the three months ended March 31, 2024, the Company charged $92 (three months ended March 31, 2023 - $62) to operations as share-based payments for the fair value of stock options granted.

 

(d) Restricted Share Units:

 

On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period.

 

Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.

 

Continuity of RSUs is as follows:

 

 

 

Underlying

Shares

 

 

Weighted Average Price (C$)

 

 

 

 

 

 

 

 

RSUs outstanding, January 1, 2023

 

 

2,190,666

 

 

$1.27

 

Granted

 

 

1,878,320

 

 

$1.11

 

Exercised

 

 

(1,005,334)

 

$1.37

 

Cancelled / Forfeited

 

 

(68,943)

 

$1.14

 

RSUs outstanding, December 31, 2023

 

 

2,994,709

 

 

$1.14

 

Exercised

 

 

(585,265)

 

$1.19

 

RSUs outstanding, March 31, 2024

 

 

2,409,444

 

 

$1.13

 

 

 
- 15 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

The following table summarizes information about the RSUs outstanding at March 31, 2024:

 

Issuance Date

 

Price (C$)

Number of RSUs Outstanding

 

March 25, 2022

 

$

1.19

 

 

 

577,000

 

March 29, 2023

 

$

1.12

 

 

 

1,763,124

 

July 10, 2023

 

$

0.94

 

 

 

69,320

 

 

 

 

 

 

 

 

2,409,444

 

 

During the three months ended March 31, 2024, no RSUs (year ended December 31, 2023 – 1,878,320) were granted. For RSUs granted in 2023, the weighted average fair value at the measurement date was C$1.11, based on the TSX market price of the Company’s shares on the date the RSUs were granted.

 

During the three months ended March 31, 2024, the Company charged $331 (March 31, 2023 - $277) to operations as share-based payments for the fair value of the RSUs vested. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.

 

(e) Earnings per share:

 

The calculations for basic earnings per share and diluted earnings per share are as follows:

 

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Net income (loss) for the period

 

$

599

 

 

$

(352

)

Basic weighted average number of shares outstanding

 

 

130,027,962

 

 

 

118,572,700

 

Effect of dilutive share options, warrants, and RSUs

 

 

2,994,709

 

 

 

4,030,229

 

Diluted weighted average number of shares outstanding

 

 

133,022,671

 

 

 

122,602,929

 

Basic earnings (loss) per share

 

$

0.00

 

 

$

(0.00

)

Diluted earnings (loss) per share

 

$

0.00

 

 

$

(0.00

)

 

 
- 16 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

13. REVENUE AND COST OF SALES

 

The Company’s revenues for the three months ended March 31, 2024 and 2023, are all attributable to Mexico, from shipments of concentrate from the Avino Mine.

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Concentrate sales

 

$12,674

 

 

$9,992

 

Provisional pricing adjustments

 

 

(281)

 

 

(167)

 

 

$12,393

 

 

$9,825

 

 

Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products.

 

Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Production costs

 

$9,233

 

 

$7,304

 

Depreciation and depletion

 

 

821

 

 

 

670

 

 

 

$10,054

 

 

$7,974

 

 

14. GENERAL AND ADMINISTRATIVE EXPENSES

 

General and administrative expenses consist of the following:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Salaries and benefits

 

$396

 

 

$395

 

Office and miscellaneous

 

 

381

 

 

 

192

 

Professional fees

 

 

159

 

 

 

239

 

Management and consulting fees

 

 

107

 

 

 

106

 

Investor relations

 

 

73

 

 

 

81

 

Travel and promotion

 

 

35

 

 

 

54

 

Directors fees

 

 

44

 

 

 

44

 

Regulatory and compliance fees

 

 

41

 

 

 

38

 

Depreciation

 

 

36

 

 

 

35

 

 

 

$1,272

 

 

$1,184

 

 

 
- 17 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

15. COMMITMENTS

 

The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 10.

 

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Not later than one year

 

$214

 

 

$714

 

Later than one year and not later than five years

 

 

1,292

 

 

 

1,241

 

Later than five years

 

 

4,146

 

 

 

3,965

 

 

 

$5,652

 

 

$5,920

 

 

Office lease payments recognized as an expense during the three months ended March 31, 2024, totalled $10 (March 31, 2023 - $4).

 

16. SUPPLEMENTARY CASH FLOW INFORMATION

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Net change in non-cash working capital items:

 

 

 

 

 

 

Inventory

 

$418

 

 

$(1,419)

Prepaid expenses and other assets

 

 

(106)

 

 

(18)

Taxes recoverable

 

 

78

 

 

 

(625)

Taxes payable

 

 

62

 

 

 

(867)

Accounts payable and accrued liabilities

 

 

(1,153)

 

 

1,466

 

Amounts receivable

 

 

1,447

 

 

 

658

 

Amounts due to related parties

 

 

(27)

 

 

39

 

 

 

$719

 

 

$(766)

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Other non-cash supplementary information:

 

 

 

 

 

 

Interest paid

 

$64

 

 

$42

 

Taxes paid

 

 

10

 

 

 

5

 

 

 

$74

 

 

$47

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Shares acquired under terms of option agreements

 

 

-

 

 

 

41

 

Transfer of share-based payments reserve upon exercise of RSUs

 

 

512

 

 

 

512

 

Equipment acquired under finance leases and equipment loans

 

 

108

 

 

 

1,808

 

 

 

$620

 

 

$2,361

 

 

 
- 18 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

17. FINANCIAL INSTRUMENTS

 

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

 

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

 

(a) Credit Risk

 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.

 

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with three (December 31, 2022 – two) counterparties (see Note 18). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.

 

The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the unaudited condensed consolidated interim statement of financial position. At March 31, 2024, no amounts were held as collateral.

 

(b) Liquidity Risk

 

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at March 31, 2024, in the amount of $3,474 and current assets exceeded current liabilities by $9,785 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

 

The maturity profiles of the Company’s contractual obligations and commitments as at March 31, 2024, are summarized as follows:

 

 

 

Total

 

 

Less Than

1 Year

 

 

1-5 years

 

 

More Than 5 Years

 

Accounts payable and accrued liabilities

 

$10,713

 

 

$10,713

 

 

$-

 

 

$-

 

Minimum rental and lease payments

 

 

5,652

 

 

 

214

 

 

 

1,292

 

 

 

4,146

 

Equipment loans

 

 

341

 

 

 

184

 

 

 

157

 

 

 

-

 

Finance lease obligations

 

 

2,962

 

 

 

1,734

 

 

 

1,228

 

 

 

-

 

Total

 

$19,668

 

 

$12,845

 

 

$2,677

 

 

$4,146

 

 

 
- 19 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

(c) Market Risk

 

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

Interest Rate Risk

 

Interest rate risk consists of two components:

 

 

(i)

To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.

 

 

 

 

(ii)

To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

 

In management’s opinion, the Company is not materially exposed to interest rate risk, as any material debt obligations that bear interest are fixed and not subject to floating interest rates. A 10% change in the interest rate would not result in a material impact on the Company’s operations.

 

Foreign Currency Risk

 

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

MXN

 

 

CDN

 

 

MXN

 

 

CDN

 

Cash

 

$8,108

 

 

$252

 

 

$13,338

 

 

$70

 

Due from related parties

 

 

5,643

 

 

 

-

 

 

 

4,558

 

 

 

-

 

Long-term investments

 

 

-

 

 

 

1,414

 

 

 

-

 

 

 

1,236

 

Reclamation bonds

 

 

-

 

 

 

6

 

 

 

-

 

 

 

6

 

Amounts receivable

 

 

3,042

 

 

 

20

 

 

 

18,644

 

 

 

26

 

Accounts payable and accrued liabilities

 

 

(78,884)

 

 

(145)

 

 

(95,662)

 

 

(150)

Due to related parties

 

 

-

 

 

 

(195)

 

 

-

 

 

 

(135)

Finance lease obligations

 

 

(800)

 

 

(179)

 

 

(1,129)

 

 

(217)

Net exposure

 

 

(62,891)

 

 

1,173

 

 

 

(60,251)

 

 

836

 

US dollar equivalent

 

$(3,767)

 

$865

 

 

$(3,567)

 

$577

 

 

Based on the net US dollar denominated asset and liability exposures as at March 31, 2024, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2024, by approximately $298. The Company has not entered into any foreign currency contracts to mitigate this risk.

 

Price Risk

 

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

 

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At March 31, 2024, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $106.

 

 
- 20 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At March 31, 2024, a 10% change in market prices would have an impact on net earnings (loss) of approximately $105.

 

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

 

(d) Classification of Financial Instruments

 

IFRS 13 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

 

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 

The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at March 31, 2024:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

Cash

 

$3,474

 

 

$-

 

 

$-

 

Amounts receivable

 

 

-

 

 

 

1,856

 

 

 

-

 

Long-term investments

 

 

1,043

 

 

 

-

 

 

 

-

 

Total financial assets

 

$4,517

 

 

$1,856

 

 

$-

 

 

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at March 31, 2024 the Company’s has no Level 3 financial instruments.

 

18. SEGMENTED INFORMATION

 

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company's Chief Operating Decision Maker (the Company’s CEO) to review operating segment performance. We have determined that each producing mine represents an operating segment, of which there is one as of March 31, 2024.

 

The Company’s revenues for the three months ended March 31, 2024 of $12,393 (March 31, 2023 - $9,825) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine, and is considered to be one single reportable operating segment.

 

 
- 21 -

 

 

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

 

On the condensed consolidated interim statements of operations, the Company had revenue from the following product mixes:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

 

 

 

 

 

 

 

Silver

 

$5,036

 

 

$3,608

 

Gold

 

 

3,033

 

 

 

3,135

 

Copper

 

 

5,906

 

 

 

4,689

 

Penalties, treatment costs and refining charges

 

 

(1,582)

 

 

(1,607)

Total revenue from mining operations

 

$12,393

 

 

$9,825

 

 

For the three months ended March 31, 2024 and 2023, the Company had the following customers that accounted for total revenues as follows:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Customer #1

 

$8,596

 

 

$9,225

 

Customer #2

 

 

3,784

 

 

 

600

 

Other customers

 

 

13

 

 

 

-

 

Total revenue from mining operations

 

$12,393

 

 

$9,825

 

 

Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows:

 

 

 

 March 31,

2024

 

 

December 31,

2023

 

Exploration and evaluation assets - Mexico

 

$51,910

 

 

$50,110

 

Exploration and evaluation assets - Canada

 

 

1

 

 

 

1

 

Total exploration and evaluation assets

 

$51,911

 

 

$50,111

 

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Plant, equipment, and mining properties - Mexico

 

$52,398

 

 

$52,891

 

Plant, equipment, and mining properties - Canada

 

 

152

 

 

 

178

 

Total plant, equipment, and mining properties

 

$52,550

 

 

$53,069

 

 

19. SUBSEQUENT EVENTS

 

At-The-Market Sales – Subsequent to March 31, 2024, the Company issued 1,256,000 common shares in at-the-market offerings under prospectus supplement for gross proceeds of $993.

 

 
- 22 -

 

nullv3.24.1.u1
Cover
 3 Months Ended
Mar. 31, 2024
Cover [Abstract]  
Entity Registrant Name AVINO SILVER & GOLD MINES LTD.
Entity Central Index Key 0000316888
Document Type 6-K
Amendment Flag false
Current Fiscal Year End Date --12-31
Document Period End Date Mar. 31, 2024
Document Fiscal Period Focus Q1
Document Fiscal Year Focus 2024
Entity File Number 001-35254
Entity Incorporation State Country Code Z4
Entity Address Address Line 1 Suite 900, 570 Granville Street
Entity Address Address Line 2 570 Granville Street
Entity Address Address Line 3 Vancouver
Entity Address City Or Town Vancouver
Entity Address State Or Province BC
Entity Address Postal Zip Code V6C 3P1
City Area Code 604
Local Phone Number 682-3701
Security 12b Title Common Shares, without Par Value
Trading Symbol ASM
Security Exchange Name NYSE
v3.24.1.u1
Condensed Consolidated Interim Statements of Financial Position - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets    
Cash $ 3,474 $ 2,688
Amounts receivable 1,856 3,303
Amounts due from related parties 194 167
Taxes recoverable 6,502 6,580
Prepaid expenses and other assets 2,077 1,971
Inventory 8,338 8,826
Total current assets 22,441 23,535
Exploration and evaluation assets 51,911 50,111
Plant, equipment and mining properties 52,550 53,069
Long-term investments 1,043 934
Other assets 699 691
Total assets 128,644 128,340
Current liabilities    
Accounts payable and accrued liabilities 10,713 11,867
Taxes payable 189 127
Current portion of finance lease obligations 1,590 1,650
Current portion of equipment loans 164 164
Total current liabilities 12,656 13,808
Finance lease obligations 1,159 1,445
Equipment loans 151 195
Reclamation provision 2,264 2,195
Deferred income tax liabilities 4,614 4,696
Total liabilities 20,844 22,339
EQUITY    
Share capital 153,088 151,688
Equity reserves 10,952 11,041
Treasury shares (97) (97)
Accumulated other comprehensive loss (5,319) (5,208)
Accumulated deficit (50,824) (51,423)
Total equity 107,800 106,001
Total liabilities and equity $ 128,644 $ 128,340
v3.24.1.u1
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)    
Revenue from mining operations $ 12,393 $ 9,825
Cost of sales 10,054 7,974
Mine operating income 2,339 1,851
Operating expenses    
General and administrative expenses 1,272 1,184
Share-based payments 423 339
Income loss 644 328
Other items    
Interest and other income 3 209
Gain (loss) on long-term investments 132 (319)
Fair value adjustment on warrant liability 0 (293)
Foreign exchange gain (loss) 80 (136)
Finance cost 2 74
Accretion of reclamation provision (51) (11)
Interest expense (90) (45)
Income (loss) before income taxes 716 (341)
Income taxes:    
Current income tax expense (199) (25)
Deferred income tax recovery 82 14
Income tax expense (117) (11)
Net income (loss) 599 (352)
Items that may be reclassified subsequently to profit or loss:    
Currency translation differences (111) (263)
Total comprehensive income (loss) $ 488 $ (615)
Earnings (loss) per share    
Basic $ 0.00 $ (0.00)
Diluted $ 0.00 $ (0.00)
Weighted average number of common shares outstanding    
Basic 130,027,962 118,572,700
Diluted 133,022,671 122,602,929
v3.24.1.u1
Condensed Consolidated Interim Statements of Changes in Equity - USD ($)
$ in Thousands
Total
Equity Reserve
Number of Common Shares
Accumulated other comprehensive loss
Retained Earnings (Accumulated Deficit)
Treasury shares
Balance, shares at Dec. 31, 2022     118,349,090      
Balance, amount at Dec. 31, 2022 $ 98,021 $ 9,852 $ 145,515 $ (5,223) $ (52,026) $ (97)
Statement [Line Items]            
At the market issuances, shares     253,700      
At the market issuances, amount 207 0 $ 207 0 0 0
Carrying value of RSUs exercised, shares     592,667      
Carrying value of RSUs exercised, amount 0 (512) $ 512 0 0 0
Issuance costs (5) 0 (5) 0 0 0
Share-based payments 339 339 0 0 0 0
Net loss for the period (352) 0 0 0 (352) 0
Currency translation differences (263) 0 0 (263) 0 0
Balance, amount at Mar. 31, 2023 97,947 9,679 $ 146,229 (5,486) (52,378) (97)
Balance, shares at Mar. 31, 2023     119,195,457      
Balance, shares at Dec. 31, 2023     128,728,248      
Balance, amount at Dec. 31, 2023 106,001 11,041 $ 151,688 (5,208) (51,423) (97)
Statement [Line Items]            
At the market issuances, shares     1,886,248      
Carrying value of RSUs exercised, shares     585,265      
Carrying value of RSUs exercised, amount 0 (512) $ 512 0 0 0
Issuance costs (38) 0 (38) 0 0 0
Share-based payments 423 423 0 0 0 0
Net loss for the period 599 0 0 0 599 0
Currency translation differences (111) 0 0 (111) 0 0
At the market issuances, amount 926 0 926 0 0 0
Balance, amount at Mar. 31, 2024 $ 107,800 $ 10,952 $ 153,088 $ (5,319) $ (50,824) $ (97)
Balance, shares at Mar. 31, 2024 1,256,000   131,199,761      
v3.24.1.u1
Condensed Consolidated Interim Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Operating Activities    
Net income $ 599 $ (352)
Adjustments for non-cash items:    
Deferred income tax expense (recovery) (82) (14)
Depreciation and depletion 857 705
Accretion of reclamation provision 51 11
(Gain) loss on investments (132) 319
Unrealized foreign exchange gain (88) (161)
Unwinding of fair value adjustment 0 74
Fair value adjustment on warrant liability 0 293
Share-based payments 423 339
Total adjustments for non cash 1,628 1,214
Net change in non-cash working capital items 719 (766)
Cash provided by operating activities 2,347 448
Financing Activities    
Shares and units issued for cash, net of issuance costs 888 202
Lease liability payments (452) (280)
Equipment loan payments (44) (88)
Cash provided by (used in) financing activities 392 (166)
Investing Activities    
Exploration and evaluation expenditures (1,116) (389)
Additions to plant, equipment and mining properties (851) (3,450)
Acquisition of La Preciosa 0 (5,000)
Cash provided by (used in) investing activities (1,967) (8,839)
Change in cash 772 (8,557)
Effect of exchange rate changes on cash 14 9
Cash, beginning 2,688 11,245
Cash, ending $ 3,474 $ 2,697
v3.24.1.u1
NATURE OF OPERATIONS
 3 Months Ended
Mar. 31, 2024
NATURE OF OPERATIONS

1. NATURE OF OPERATIONS

 

Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.

 

The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada (except for the province of Quebec) and the United States, and trades on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges.

 

The Company operates the Elena Tolosa Mine (“ET Mine” or “Avino Mine”) which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Avino property also hosts the San Gonzalo Mine, which is currently on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada.
v3.24.1.u1
BASIS OF PRESENTATION
 3 Months Ended
Mar. 31, 2024
BASIS OF PRESENTATION

2. BASIS OF PRESENTATION

 

Statement of Compliance

 

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting under International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual audited consolidated financial statements of the Company. These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2023, annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB.

 

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these unaudited condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out in the December 31, 2023 annual consolidated financial statements are applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements as if the policies have always been in effect.

 

Basis of Presentation

 

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements as if the policies have always been in effect.

 

Foreign Currency Translation

 

Foreign currency transactions

 

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the statement of financial position. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.

Foreign operations

 

Subsidiaries that have functional currencies other than the US dollar translate their statement of operations items at the average rate during the year. Assets and liabilities are translated at exchange rates prevailing at the end of each reporting period. Exchange rate variations resulting from the retranslation at the closing rate of the net investment in these subsidiaries, together with differences between their statement of operations items translated at actual and average rates, are recognized in accumulated other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange difference is recognized in the statement of operations.

 

Significant Accounting Judgments and Estimates

 

The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its unaudited condensed consolidated interim financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

 

The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2024, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2023.

 

Basis of Consolidation

 

The audited consolidated financial statements include the accounts of the Company and its Mexican subsidiaries as follows:

 

Subsidiary

 

Ownership Interest

 

 

Jurisdiction

 

Nature of Operations

 

Oniva Silver and Gold Mines S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Nueva Vizcaya Mining, S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Promotora Avino, S.A. de C.V. (“Promotora”)

 

 

79.09%

 

Mexico

 

Holding company

 

Compañía Minera Mexicana de Avino, S.A. de C.V.

(“Avino Mexico”)

 

98.45% direct

1.22% indirect (Promotora)

99.67% effective

 

 

Mexico

 

Mining and exploration

 

La Luna Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

La Preciosa Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

Proyectos Mineros La Preciosa S.A. de C.V.

 

 

100%

 

Mexico

 

Mining and exploration

 

Cervantes LLP

 

 

100%

 

U.S.

 

Holding company

 

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.
v3.24.1.u1
RECENT ACCOUNTING PRONOUNCEMENTS
 3 Months Ended
Mar. 31, 2024
RECENT ACCOUNTING PRONOUNCEMENTS

3. RECENT ACCOUNTING PRONOUNCEMENTS

 

New and amended IFRS that are effective for the current year:

 

Certain new accounting standards and interpretations have been published that are either applicable in the current year, or are not mandatory for the current period and have not been early adopted. We have assessed these standards, and they are not expected to have a material impact on the Company in the current or future reporting periods.
v3.24.1.u1
TAXES RECOVERABLE
 3 Months Ended
Mar. 31, 2024
TAXES RECOVERABLE

4. TAXES RECOVERABLE

 

The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.

 

 

 

March 31,

2024

 

 

December 31,

2023

 

VAT recoverable

 

$2,767

 

 

$3,231

 

GST recoverable

 

 

14

 

 

 

20

 

Income taxes recoverable

 

 

3,721

 

 

 

3,329

 

 

 

$6,502

 

 

$6,580

 
v3.24.1.u1
INVENTORY
 3 Months Ended
Mar. 31, 2024
INVENTORY

5. INVENTORY

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Process material stockpiles

 

$2,944

 

 

$4,050

 

Concentrate inventory

 

 

3,017

 

 

 

2,448

 

Materials and supplies

 

 

2,377

 

 

 

2,328

 

 

 

$8,338

 

 

$8,826

 

 

The amount of inventory recognized as an expense for the three months ended March 31, 2024 totalled $10,054 (2023 – $7,794). See Note 13 for further details.

 

During the three months ended March 31, 2024, the Company wrote down Nil of materials and supplies inventory due to obsolescence (year ended December 31, 2023 – $270).
v3.24.1.u1
LONGTERM INVESTMENTS
 3 Months Ended
Mar. 31, 2024
LONG-TERM INVESTMENTS

6. LONG-TERM INVESTMENTS

 

The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:

 

For the three months ended March 31, 2024:

 

 

 

Fair Value

December 31,

 

 

Net

 

 

Movements in foreign

 

 

Fair value adjustments

 

 

Fair Value

March 31,

 

 

 

2023

 

 

 Additions

 

 

exchange

 

 

for the period

 

 

2024

 

Talisker Resources Common Shares

 

$782

 

 

$-

 

 

$(20)

 

$141

 

 

$903

 

Silver Wolf Exploration Ltd. Common Shares

 

 

71

 

 

 

-

 

 

 

(2)

 

 

9

 

 

 

78

 

Endurance Gold Corp. Common Shares

 

 

81

 

 

 

-

 

 

 

(1)

 

 

(18)

 

 

62

 

 

 

$934

 

 

$-

 

 

$(23)

 

$132

 

 

$1,043

 
v3.24.1.u1
EXPLORATION AND EVALUATION ASSETS
 3 Months Ended
Mar. 31, 2024
EXPLORATION AND EVALUATION ASSETS

7. EXPLORATION AND EVALUATION ASSETS

 

The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:

 

 

 

Avino,

 Mexico

 

 

La Preciosa, Mexico

 

 

British Columbia & Yukon, Canada

 

 

Total

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2022

 

$11,828

 

 

$37,975

 

 

$1

 

 

$49,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

La Preciosa non-core concessions transfer

 

 

2,946

 

 

 

(2,946)

 

 

 

 

 

 

-

 

Drilling and exploration

 

 

877

 

 

 

435

 

 

 

-

 

 

 

1,312

 

Assessments and taxes

 

 

88

 

 

 

(930)

 

 

-

 

 

 

(842)

Effect of movements in exchange rates

 

 

22

 

 

 

(122)

 

 

-

 

 

 

(100)

Option income

 

 

(63)

 

 

-

 

 

 

-

 

 

 

(63)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2023

 

$15,698

 

 

$34,412

 

 

$1

 

 

$50,111

 

Costs incurred during 2024:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling and exploration

 

 

81

 

 

 

662

 

 

 

-

 

 

 

743

 

Assessments and taxes

 

 

100

 

 

 

959

 

 

 

-

 

 

 

1,059

 

Effect of movements in exchange rates

 

 

(2)

 

 

-

 

 

 

-

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2024

 

$15,877

 

 

$36,033

 

 

$1

 

 

$51,911

 

(a) Avino, Mexico

 

The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following two groups:

 

(i) Avino Mine area property

 

The Avino Mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares. Within the Avino Mine site area is the Company’s San Gonzalo Mine, which achieved production at levels intended by management as of October 1, 2012, and on this date accumulated exploration and evaluation costs were transferred to mining properties.

 

(ii) Gomez Palacio/Ana Maria property

 

The Ana Maria property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares, and is also known as the Ana Maria property.

 

Option Agreement – Silver Wolf Exploration Ltd. (formerly Gray Rock Resources Ltd.) (“Silver Wolf”)

 

On March 11, 2021, the Company entered into an option agreement to grant Silver Wolf the exclusive right to acquire a 100% interest in the Ana Maria and El Laberinto properties in Mexico (the “Option Agreement”).

 

All exploration expenditure requirements on the properties have been met as of March 31, 2024, and Silver Wolf is in compliance with the terms of the Option Agreement.

 

The Option Agreement between the Company and Silver Wolf is considered a related party transaction as the two companies have directors in common.

 

Unification La Platosa properties

 

The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concessions situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.

 

In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015.

 

Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$250 during the year ended December 31, 2012.The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes.

 

Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property.

(b) La Preciosa, Mexico

 

On March 21, 2022, the Company received approval for the closing of the acquisition of the La Preciosa property from Coeur Mining Inc.

 

(c) British Columbia & Yukon, Canada

 

Eagle Property - Yukon

 

The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property. During the year ended December 31, 2023, the Company sold to a subsidiary of Hecla Mining Company (“Hecla”) the Eagle Property for cash consideration of C$250. The gain on sale of the Eagle Property was recorded to “Interest and other income” on the consolidated statements of operations and comprehensive income (loss).

 

Minto and Olympic-Kelvin properties – British Columbia

 

On May 2, 2022, the Company granted Endurance Gold Corporation the right to acquire an option to earn 100% ownership of the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grant and mineral claims (the “Olympic Claims”).

 

As of March 31, 2024, Endurance was in compliance with all terms of the Option agreement.
v3.24.1.u1
NONCONTROLLING INTEREST
 3 Months Ended
Mar. 31, 2024
NON-CONTROLLING INTEREST

8. NON-CONTROLLING INTEREST

 

At March 31, 2024, the Company had an effective 99.67% (December 31, 2023 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2023 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and accordingly have not been presented separately in the consolidated financial statements.
v3.24.1.u1
PLANT EQUIPMENT AND MINING PROPERTIES
 3 Months Ended
Mar. 31, 2024
PLANT EQUIPMENT AND MINING PROPERTIES  
PLANT, EQUIPMENT AND MINING PROPERTIES

9. PLANT, EQUIPMENT AND MINING PROPERTIES

 

 

 

Mining

properties

 

 

Office equipment, furniture, and fixtures

 

 

Computer equipment

 

 

Mine machinery and transportation equipment

 

 

Mill machinery and processing equipment

 

 

Buildings and construction in process

 

 

Total

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2023

 

 

14,687

 

 

 

763

 

 

 

774

 

 

 

14,930

 

 

 

23,294

 

 

 

14,693

 

 

 

69,141

 

Additions / Transfers

 

 

3,716

 

 

 

78

 

 

 

1,176

 

 

 

3,270

 

 

 

3,079

 

 

 

701

 

 

 

12,020

 

Writedowns

 

 

-

 

 

 

(6)

 

 

(22)

 

 

(629)

 

 

(141)

 

 

-

 

 

 

(798)

Effect of movements in exchange rates

 

 

(28)

 

 

9

 

 

 

1

 

 

 

2

 

 

 

-

 

 

 

(24)

 

 

(40)

Balance at December 31, 2023

 

 

18,375

 

 

 

844

 

 

 

1,929

 

 

 

17,573

 

 

 

26,232

 

 

 

15,370

 

 

 

80,323

 

Additions / Transfers

 

 

187

 

 

 

6

 

 

 

2

 

 

 

138

 

 

 

409

 

 

 

(454)

 

 

288

 

Writedowns

 

 

-

 

 

 

(1)

 

 

(1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2)

Effect of movements in

exchange rates

 

 

3

 

 

 

(2)

 

 

1

 

 

 

(1)

 

 

-

 

 

 

(21)

 

 

(20)

Balance at March 31, 2024

 

 

18,565

 

 

 

847

 

 

 

1,931

 

 

 

17,710

 

 

 

26,641

 

 

 

14,895

 

 

 

80,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED DEPLETION AND DEPRECIATION / IMPAIRMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2023

 

 

9,106

 

 

 

441

 

 

 

598

 

 

 

5,178

 

 

 

6,733

 

 

 

3,029

 

 

 

25,085

 

Additions / Transfers

 

 

367

 

 

 

111

 

 

 

204

 

 

 

676

 

 

 

1,170

 

 

 

294

 

 

 

2,822

 

Writedowns

 

 

-

 

 

 

(4)

 

 

(21)

 

 

(619)

 

 

(9)

 

 

-

 

 

 

(653)

Balance at December 31, 2023

 

 

9,473

 

 

 

548

 

 

 

781

 

 

 

5,235

 

 

 

7,894

 

 

 

3,323

 

 

 

27,254

 

Additions / Transfers

 

 

103

 

 

 

21

 

 

 

100

 

 

 

4

 

 

 

480

 

 

 

77

 

 

 

785

 

Balance at March 31, 2024

 

 

9,576

 

 

 

569

 

 

 

881

 

 

 

5,239

 

 

 

8,374

 

 

 

3,400

 

 

 

28,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2024

 

 

8,989

 

 

 

278

 

 

 

1,050

 

 

 

12,471

 

 

 

18,267

 

 

 

11,495

 

 

 

52,550

 

At December 31, 2023

 

 

8,902

 

 

 

296

 

 

 

1,148

 

 

 

12,339

 

 

 

18,338

 

 

 

12,047

 

 

 

53,069

 

Included in Buildings and construction in process above are assets under construction of $3,341 as at March 31, 2024 (December 31, 2023 - $3,166) on which no depreciation was charged in the periods then ended. Once the assets are available for use, they will be transferred to the appropriate class of plant, equipment and mining properties.

 

As of March 31, 2024, the Company performed an evaluation of the property plant and equipment and recorded a write-down of $1 (December 31, 2023 - $144) against the carrying value of mine and mill machinery and transportation equipment due to damage and obsolescence.

 

As at March 31, 2024, plant, equipment and mining properties included a net carrying amount of $5,850 (December 31, 2023 - $5,832) for mining equipment and right of use assets under lease.
v3.24.1.u1
RELATED PARTY TRANSACTIONS AND BALANCES
 3 Months Ended
Mar. 31, 2024
RELATED PARTY TRANSACTIONS AND BALANCES

10. RELATED PARTY TRANSACTIONS AND BALANCES

 

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.

 

(a) Key management personnel

 

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel is as follows:

 

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Salaries, benefits, and consulting fees

 

$

293

 

 

$

284

 

Share-based payments

 

 

387

 

 

 

321

 

 

 

$

680

 

 

$

605

 

 

(b) Amounts due to/from related parties

 

In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand.

 

The following table summarizes the amounts were due to/(from) related parties:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Oniva International Services Corp.

 

$

100

 

 

$

102

 

Directors Fees

 

 

44

 

 

 

-

 

Silver Wolf Exploration Ltd.

 

 

(338

)

 

 

(269

)

 

 

$

(194

)

 

$

(167

)

 

For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s President and CEO and also a director, for consulting services. For the three months ended March 31, 2024, the Company paid $71 (March 31, 2023 - $71) to ICC.

 

(c) Other related party transactions

 

The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company, with a 2.5% markup. David Wolfin, President & CEO, and a director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

The transactions with Oniva are summarized below:

 

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Salaries and benefits

 

$

254

 

 

$

245

 

Office and miscellaneous

 

 

133

 

 

 

133

 

 

 

$

387

 

 

$

378

 
v3.24.1.u1
RECLAMATION PROVISION
 3 Months Ended
Mar. 31, 2024
RECLAMATION PROVISION  
RECLAMATION PROVISION

11. RECLAMATION PROVISION

 

Management’s estimate of the reclamation provision at March 31, 2024, is $2,264 (December 31, 2023 – $2,195), and the undiscounted value of the obligation is $5,627 (December 31, 2023 – $5,491).

 

The present value of the obligation was calculated using a risk-free interest rate of 9.72% (December 31, 2023 – 9.82%) and an inflation rate of 3.88% (December 31, 2023 – 3.76%). Reclamation activities are estimated to begin in 2025 for the San Gonzalo Mine and in 2042 for the Avino Mine.

 

A reconciliation of the changes in the Company’s reclamation provision is as follows:

 

 

 

March 31,

2024

December 31,

2023

 

 

 

 

 

 

 

 

Balance at beginning of the period

 

$

2,195

 

 

$

445

 

Changes in estimates

 

 

-

 

 

 

1,615

 

Unwinding of discount related to continuing operations

 

 

51

 

 

 

49

 

Effect of movements in exchange rates

 

 

18

 

 

 

86

 

Balance at end of the period

 

$

2,264

 

 

$

2,195

 
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS
 3 Months Ended
Mar. 31, 2024
SHARE CAPITAL AND SHAREBASED PAYMENTS  
SHARE CAPITAL AND SHARE-BASED PAYMENTS

12. SHARE CAPITAL AND SHARE-BASED PAYMENTS

 

(a) Authorized: Unlimited common shares without par value

 

(b) Issued:

 

 

(i)

During the three months ended March 31, 2024, the Company issued 1,886,248 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $926. The Company paid a 2.75% cash commission of $25 on gross proceeds, for net proceeds of $901. The Company also incurred $13 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.

 

 

 

 

During the three months ended March 31, 2024, the Company issued 585,265 common shares upon exercise of RSUs. As a result, $512 was recorded to share capital.

 

 

 

 

(ii)

During the year ended December 31, 2023, the Company issued 9,373,825 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $5,648. The Company paid a 2.75% cash commission of $155 on gross proceeds, for net proceeds of $5,493. The Company also incurred $339 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.

 

 

 

 

During the year ended December 31, 2023, the Company issued 1,005,333 common shares upon exercise of RSUs. As a result, $1,019 was recorded to share capital.

(c) Stock options:

 

The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date.

 

Continuity of stock options is as follows:

 

 

 

Underlying

Shares

 

 

Weighted Average Exercise Price (C$)

 

 

 

 

 

 

 

 

Stock options outstanding, January 1, 2023

 

 

4,256,000

 

 

$1.36

 

Granted

 

 

2,545,000

 

 

$1.12

 

Expired

 

 

(105,000)

 

$1.30

 

Cancelled / Forfeited

 

 

(30,000)

 

$1.40

 

Stock options outstanding, December 31, 2023

 

 

6,666,000

 

 

$1.27

 

Granted

 

 

2,500,000

 

 

$0.78

 

Cancelled / Forfeited

 

 

(190,000)

 

$1.26

 

Stock options outstanding, March 31, 2024

 

 

8,976,000

 

 

$1.13

 

Stock options exercisable, March 31, 2024

 

 

6,401,000

 

 

$1.27

 

 

The following table summarizes information about the stock options outstanding and exercisable at March 31, 2024:

 

 

 

 

 

Outstanding

 

 

Exercisable

 

        Expiry Date

 

Price (C$)

 

 

Number of Options

 

 

Weighted Average Remaining Contractual Life (Years)

 

 

Number of Options

 

 

Weighted Average Remaining Contractual Life (Years)

 

August 21, 2024

 

$0.79

 

 

 

126,000

 

 

 

0.39

 

 

 

126,000

 

 

 

0.39

 

August 4, 2025

 

$1.64

 

 

 

1,620,000

 

 

 

1.35

 

 

 

1,620,000

 

 

 

1.35

 

March 25, 2027

 

$1.20

 

 

 

2,255,000

 

 

 

2.98

 

 

 

2,255,000

 

 

 

2.98

 

May 4, 2027

 

$0.92

 

 

 

25,000

 

 

 

3.09

 

 

 

25,000

 

 

 

3.09

 

March 29, 2028

 

$1.12

 

 

 

2,300,000

 

 

 

4.00

 

 

 

2,300,000

 

 

 

4.00

 

July 10, 2028

 

$1.12

 

 

 

150,000

 

 

 

4.26

 

 

 

75,000

 

 

 

4.26

 

March 25, 2029

 

$0.78

 

 

 

2,500,000

 

 

 

4.99

 

 

 

-

 

 

 

4.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,976,000

 

 

 

3.49

 

 

 

6,401,000

 

 

 

2.90

 

Valuation of stock options requires the use of estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the stock options was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Weighted average assumptions:

 

 

 

 

 

 

 Risk-free interest rate

 

 

3.51%

 

 

3.10%

 Expected dividend yield

 

 

0%

 

 

0%

 Expected warrant life (years)

 

 

5

 

 

 

5

 

 Expected stock price volatility

 

 

60.73%

 

 

61.10%

 Expected forfeiture rate

 

 

15%

 

 

17%

Weighted average fair value

 

C$

0.43

 

 

C$

0.60

 

 

During the three months ended March 31, 2024, the Company charged $92 (three months ended March 31, 2023 - $62) to operations as share-based payments for the fair value of stock options granted.

 

(d) Restricted Share Units:

 

On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period.

 

Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.

 

Continuity of RSUs is as follows:

 

 

 

Underlying

Shares

 

 

Weighted Average Price (C$)

 

 

 

 

 

 

 

 

RSUs outstanding, January 1, 2023

 

 

2,190,666

 

 

$1.27

 

Granted

 

 

1,878,320

 

 

$1.11

 

Exercised

 

 

(1,005,334)

 

$1.37

 

Cancelled / Forfeited

 

 

(68,943)

 

$1.14

 

RSUs outstanding, December 31, 2023

 

 

2,994,709

 

 

$1.14

 

Exercised

 

 

(585,265)

 

$1.19

 

RSUs outstanding, March 31, 2024

 

 

2,409,444

 

 

$1.13

 

The following table summarizes information about the RSUs outstanding at March 31, 2024:

 

Issuance Date

 

Price (C$)

Number of RSUs Outstanding

 

March 25, 2022

 

$

1.19

 

 

 

577,000

 

March 29, 2023

 

$

1.12

 

 

 

1,763,124

 

July 10, 2023

 

$

0.94

 

 

 

69,320

 

 

 

 

 

 

 

 

2,409,444

 

 

During the three months ended March 31, 2024, no RSUs (year ended December 31, 2023 – 1,878,320) were granted. For RSUs granted in 2023, the weighted average fair value at the measurement date was C$1.11, based on the TSX market price of the Company’s shares on the date the RSUs were granted.

 

During the three months ended March 31, 2024, the Company charged $331 (March 31, 2023 - $277) to operations as share-based payments for the fair value of the RSUs vested. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.

 

(e) Earnings per share:

 

The calculations for basic earnings per share and diluted earnings per share are as follows:

 

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Net income (loss) for the period

 

$

599

 

 

$

(352

)

Basic weighted average number of shares outstanding

 

 

130,027,962

 

 

 

118,572,700

 

Effect of dilutive share options, warrants, and RSUs

 

 

2,994,709

 

 

 

4,030,229

 

Diluted weighted average number of shares outstanding

 

 

133,022,671

 

 

 

122,602,929

 

Basic earnings (loss) per share

 

$

0.00

 

 

$

(0.00

)

Diluted earnings (loss) per share

 

$

0.00

 

 

$

(0.00

)
v3.24.1.u1
REVENUE AND COST OF SALES
 3 Months Ended
Mar. 31, 2024
REVENUE AND COST OF SALES  
REVENUE AND COST OF SALES

13. REVENUE AND COST OF SALES

 

The Company’s revenues for the three months ended March 31, 2024 and 2023, are all attributable to Mexico, from shipments of concentrate from the Avino Mine.

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Concentrate sales

 

$12,674

 

 

$9,992

 

Provisional pricing adjustments

 

 

(281)

 

 

(167)

 

 

$12,393

 

 

$9,825

 

 

Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products.

 

Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Production costs

 

$9,233

 

 

$7,304

 

Depreciation and depletion

 

 

821

 

 

 

670

 

 

 

$10,054

 

 

$7,974

 
v3.24.1.u1
GENERAL AND ADMINISTRATIVE EXPENSES
 3 Months Ended
Mar. 31, 2024
GENERAL AND ADMINISTRATIVE EXPENSES

14. GENERAL AND ADMINISTRATIVE EXPENSES

 

General and administrative expenses consist of the following:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Salaries and benefits

 

$396

 

 

$395

 

Office and miscellaneous

 

 

381

 

 

 

192

 

Professional fees

 

 

159

 

 

 

239

 

Management and consulting fees

 

 

107

 

 

 

106

 

Investor relations

 

 

73

 

 

 

81

 

Travel and promotion

 

 

35

 

 

 

54

 

Directors fees

 

 

44

 

 

 

44

 

Regulatory and compliance fees

 

 

41

 

 

 

38

 

Depreciation

 

 

36

 

 

 

35

 

 

 

$1,272

 

 

$1,184

 
v3.24.1.u1
COMMITMENTS
 3 Months Ended
Mar. 31, 2024
COMMITMENTS

15. COMMITMENTS

 

The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 10.

 

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Not later than one year

 

$214

 

 

$714

 

Later than one year and not later than five years

 

 

1,292

 

 

 

1,241

 

Later than five years

 

 

4,146

 

 

 

3,965

 

 

 

$5,652

 

 

$5,920

 

 

Office lease payments recognized as an expense during the three months ended March 31, 2024, totalled $10 (March 31, 2023 - $4).
v3.24.1.u1
SUPPLEMENT CASH FLOW INFORMATION
 3 Months Ended
Mar. 31, 2024
SUPPLEMENTARY CASH FLOW INFORMATION

16. SUPPLEMENTARY CASH FLOW INFORMATION

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Net change in non-cash working capital items:

 

 

 

 

 

 

Inventory

 

$418

 

 

$(1,419)

Prepaid expenses and other assets

 

 

(106)

 

 

(18)

Taxes recoverable

 

 

78

 

 

 

(625)

Taxes payable

 

 

62

 

 

 

(867)

Accounts payable and accrued liabilities

 

 

(1,153)

 

 

1,466

 

Amounts receivable

 

 

1,447

 

 

 

658

 

Amounts due to related parties

 

 

(27)

 

 

39

 

 

 

$719

 

 

$(766)

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Other non-cash supplementary information:

 

 

 

 

 

 

Interest paid

 

$64

 

 

$42

 

Taxes paid

 

 

10

 

 

 

5

 

 

 

$74

 

 

$47

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Shares acquired under terms of option agreements

 

 

-

 

 

 

41

 

Transfer of share-based payments reserve upon exercise of RSUs

 

 

512

 

 

 

512

 

Equipment acquired under finance leases and equipment loans

 

 

108

 

 

 

1,808

 

 

 

$620

 

 

$2,361

 
v3.24.1.u1
FINANCIAL INSTRUMENTS
 3 Months Ended
Mar. 31, 2024
FINANCIAL INSTRUMENTS

17. FINANCIAL INSTRUMENTS

 

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

 

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

 

(a) Credit Risk

 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.

 

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with three (December 31, 2022 – two) counterparties (see Note 18). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.

 

The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the unaudited condensed consolidated interim statement of financial position. At March 31, 2024, no amounts were held as collateral.

 

(b) Liquidity Risk

 

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at March 31, 2024, in the amount of $3,474 and current assets exceeded current liabilities by $9,785 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

 

The maturity profiles of the Company’s contractual obligations and commitments as at March 31, 2024, are summarized as follows:

 

 

 

Total

 

 

Less Than

1 Year

 

 

1-5 years

 

 

More Than 5 Years

 

Accounts payable and accrued liabilities

 

$10,713

 

 

$10,713

 

 

$-

 

 

$-

 

Minimum rental and lease payments

 

 

5,652

 

 

 

214

 

 

 

1,292

 

 

 

4,146

 

Equipment loans

 

 

341

 

 

 

184

 

 

 

157

 

 

 

-

 

Finance lease obligations

 

 

2,962

 

 

 

1,734

 

 

 

1,228

 

 

 

-

 

Total

 

$19,668

 

 

$12,845

 

 

$2,677

 

 

$4,146

 

(c) Market Risk

 

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

Interest Rate Risk

 

Interest rate risk consists of two components:

 

 

(i)

To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.

 

 

 

 

(ii)

To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

 

In management’s opinion, the Company is not materially exposed to interest rate risk, as any material debt obligations that bear interest are fixed and not subject to floating interest rates. A 10% change in the interest rate would not result in a material impact on the Company’s operations.

 

Foreign Currency Risk

 

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

MXN

 

 

CDN

 

 

MXN

 

 

CDN

 

Cash

 

$8,108

 

 

$252

 

 

$13,338

 

 

$70

 

Due from related parties

 

 

5,643

 

 

 

-

 

 

 

4,558

 

 

 

-

 

Long-term investments

 

 

-

 

 

 

1,414

 

 

 

-

 

 

 

1,236

 

Reclamation bonds

 

 

-

 

 

 

6

 

 

 

-

 

 

 

6

 

Amounts receivable

 

 

3,042

 

 

 

20

 

 

 

18,644

 

 

 

26

 

Accounts payable and accrued liabilities

 

 

(78,884)

 

 

(145)

 

 

(95,662)

 

 

(150)

Due to related parties

 

 

-

 

 

 

(195)

 

 

-

 

 

 

(135)

Finance lease obligations

 

 

(800)

 

 

(179)

 

 

(1,129)

 

 

(217)

Net exposure

 

 

(62,891)

 

 

1,173

 

 

 

(60,251)

 

 

836

 

US dollar equivalent

 

$(3,767)

 

$865

 

 

$(3,567)

 

$577

 

 

Based on the net US dollar denominated asset and liability exposures as at March 31, 2024, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2024, by approximately $298. The Company has not entered into any foreign currency contracts to mitigate this risk.

 

Price Risk

 

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

 

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At March 31, 2024, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $106.

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At March 31, 2024, a 10% change in market prices would have an impact on net earnings (loss) of approximately $105.

 

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

 

(d) Classification of Financial Instruments

 

IFRS 13 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

 

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 

The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at March 31, 2024:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

Cash

 

$3,474

 

 

$-

 

 

$-

 

Amounts receivable

 

 

-

 

 

 

1,856

 

 

 

-

 

Long-term investments

 

 

1,043

 

 

 

-

 

 

 

-

 

Total financial assets

 

$4,517

 

 

$1,856

 

 

$-

 

 

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at March 31, 2024 the Company’s has no Level 3 financial instruments.
v3.24.1.u1
SEGMENTED INFORMATION
 3 Months Ended
Mar. 31, 2024
SEGMENTED INFORMATION

18. SEGMENTED INFORMATION

 

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company's Chief Operating Decision Maker (the Company’s CEO) to review operating segment performance. We have determined that each producing mine represents an operating segment, of which there is one as of March 31, 2024.

 

The Company’s revenues for the three months ended March 31, 2024 of $12,393 (March 31, 2023 - $9,825) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine, and is considered to be one single reportable operating segment.

On the condensed consolidated interim statements of operations, the Company had revenue from the following product mixes:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

 

 

 

 

 

 

 

Silver

 

$5,036

 

 

$3,608

 

Gold

 

 

3,033

 

 

 

3,135

 

Copper

 

 

5,906

 

 

 

4,689

 

Penalties, treatment costs and refining charges

 

 

(1,582)

 

 

(1,607)

Total revenue from mining operations

 

$12,393

 

 

$9,825

 

 

For the three months ended March 31, 2024 and 2023, the Company had the following customers that accounted for total revenues as follows:

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Customer #1

 

$8,596

 

 

$9,225

 

Customer #2

 

 

3,784

 

 

 

600

 

Other customers

 

 

13

 

 

 

-

 

Total revenue from mining operations

 

$12,393

 

 

$9,825

 

 

Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows:

 

 

 

 March 31,

2024

 

 

December 31,

2023

 

Exploration and evaluation assets - Mexico

 

$51,910

 

 

$50,110

 

Exploration and evaluation assets - Canada

 

 

1

 

 

 

1

 

Total exploration and evaluation assets

 

$51,911

 

 

$50,111

 

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Plant, equipment, and mining properties - Mexico

 

$52,398

 

 

$52,891

 

Plant, equipment, and mining properties - Canada

 

 

152

 

 

 

178

 

Total plant, equipment, and mining properties

 

$52,550

 

 

$53,069

 
v3.24.1.u1
SUBSEQUENT EVENTS
 3 Months Ended
Mar. 31, 2024
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS

 

At-The-Market Sales – Subsequent to March 31, 2024, the Company issued 1,256,000 common shares in at-the-market offerings under prospectus supplement for gross proceeds of $993.
v3.24.1.u1
MATERIAL ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2024
Statement of Compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting under International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual audited consolidated financial statements of the Company. These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2023, annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB.

 

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these unaudited condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out in the December 31, 2023 annual consolidated financial statements are applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements as if the policies have always been in effect.
Basis of Presentation

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements as if the policies have always been in effect.
Foreign currency translation

Foreign currency transactions

 

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the statement of financial position. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.

Foreign operations

 

Subsidiaries that have functional currencies other than the US dollar translate their statement of operations items at the average rate during the year. Assets and liabilities are translated at exchange rates prevailing at the end of each reporting period. Exchange rate variations resulting from the retranslation at the closing rate of the net investment in these subsidiaries, together with differences between their statement of operations items translated at actual and average rates, are recognized in accumulated other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange difference is recognized in the statement of operations.
Significant accounting judgments and estimates

The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its unaudited condensed consolidated interim financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

 

The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2024, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2023.
Basis of consolidation

The audited consolidated financial statements include the accounts of the Company and its Mexican subsidiaries as follows:

 

Subsidiary

 

Ownership Interest

 

 

Jurisdiction

 

Nature of Operations

 

Oniva Silver and Gold Mines S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Nueva Vizcaya Mining, S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Promotora Avino, S.A. de C.V. (“Promotora”)

 

 

79.09%

 

Mexico

 

Holding company

 

Compañía Minera Mexicana de Avino, S.A. de C.V.

(“Avino Mexico”)

 

98.45% direct

1.22% indirect (Promotora)

99.67% effective

 

 

Mexico

 

Mining and exploration

 

La Luna Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

La Preciosa Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

Proyectos Mineros La Preciosa S.A. de C.V.

 

 

100%

 

Mexico

 

Mining and exploration

 

Cervantes LLP

 

 

100%

 

U.S.

 

Holding company

 

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.
v3.24.1.u1
BASIS OF PRESENTATION (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule of Audited Consolidated Financial Statements

Subsidiary

 

Ownership Interest

 

 

Jurisdiction

 

Nature of Operations

 

Oniva Silver and Gold Mines S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Nueva Vizcaya Mining, S.A. de C.V.

 

 

100%

 

Mexico

 

Mexican administration

 

Promotora Avino, S.A. de C.V. (“Promotora”)

 

 

79.09%

 

Mexico

 

Holding company

 

Compañía Minera Mexicana de Avino, S.A. de C.V.

(“Avino Mexico”)

 

98.45% direct

1.22% indirect (Promotora)

99.67% effective

 

 

Mexico

 

Mining and exploration

 

La Luna Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

La Preciosa Silver & Gold Mines Ltd.

 

 

100%

 

Canada

 

Holding company

 

Proyectos Mineros La Preciosa S.A. de C.V.

 

 

100%

 

Mexico

 

Mining and exploration

 

Cervantes LLP

 

 

100%

 

U.S.

 

Holding company

 
v3.24.1.u1
TAXES RECEOVERABLE (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Income Taxes Recoverable And Canadian Sales Taxes

 

 

March 31,

2024

 

 

December 31,

2023

 

VAT recoverable

 

$2,767

 

 

$3,231

 

GST recoverable

 

 

14

 

 

 

20

 

Income taxes recoverable

 

 

3,721

 

 

 

3,329

 

 

 

$6,502

 

 

$6,580

 
v3.24.1.u1
INVENTORY (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Inventory

 

 

March 31,

2024

 

 

December 31,

2023

 

Process material stockpiles

 

$2,944

 

 

$4,050

 

Concentrate inventory

 

 

3,017

 

 

 

2,448

 

Materials and supplies

 

 

2,377

 

 

 

2,328

 

 

 

$8,338

 

 

$8,826

 
v3.24.1.u1
LONGTERM INVESTMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Long-term Investments

 

 

Fair Value

December 31,

 

 

Net

 

 

Movements in foreign

 

 

Fair value adjustments

 

 

Fair Value

March 31,

 

 

 

2023

 

 

 Additions

 

 

exchange

 

 

for the period

 

 

2024

 

Talisker Resources Common Shares

 

$782

 

 

$-

 

 

$(20)

 

$141

 

 

$903

 

Silver Wolf Exploration Ltd. Common Shares

 

 

71

 

 

 

-

 

 

 

(2)

 

 

9

 

 

 

78

 

Endurance Gold Corp. Common Shares

 

 

81

 

 

 

-

 

 

 

(1)

 

 

(18)

 

 

62

 

 

 

$934

 

 

$-

 

 

$(23)

 

$132

 

 

$1,043

 
v3.24.1.u1
EXPLORATION AND EVALUATION ASSETS (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Exploration And Evaluation Costs

 

 

Avino,

 Mexico

 

 

La Preciosa, Mexico

 

 

British Columbia & Yukon, Canada

 

 

Total

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2022

 

$11,828

 

 

$37,975

 

 

$1

 

 

$49,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

La Preciosa non-core concessions transfer

 

 

2,946

 

 

 

(2,946)

 

 

 

 

 

 

-

 

Drilling and exploration

 

 

877

 

 

 

435

 

 

 

-

 

 

 

1,312

 

Assessments and taxes

 

 

88

 

 

 

(930)

 

 

-

 

 

 

(842)

Effect of movements in exchange rates

 

 

22

 

 

 

(122)

 

 

-

 

 

 

(100)

Option income

 

 

(63)

 

 

-

 

 

 

-

 

 

 

(63)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2023

 

$15,698

 

 

$34,412

 

 

$1

 

 

$50,111

 

Costs incurred during 2024:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling and exploration

 

 

81

 

 

 

662

 

 

 

-

 

 

 

743

 

Assessments and taxes

 

 

100

 

 

 

959

 

 

 

-

 

 

 

1,059

 

Effect of movements in exchange rates

 

 

(2)

 

 

-

 

 

 

-

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2024

 

$15,877

 

 

$36,033

 

 

$1

 

 

$51,911

 
v3.24.1.u1
PLANT EQUIPMENT AND MINING PROPERTIES (Tables)
 3 Months Ended
Mar. 31, 2024
PLANT EQUIPMENT AND MINING PROPERTIES  
Schedule Of Plant, Equipment And Mining Properties

 

 

Mining

properties

 

 

Office equipment, furniture, and fixtures

 

 

Computer equipment

 

 

Mine machinery and transportation equipment

 

 

Mill machinery and processing equipment

 

 

Buildings and construction in process

 

 

Total

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2023

 

 

14,687

 

 

 

763

 

 

 

774

 

 

 

14,930

 

 

 

23,294

 

 

 

14,693

 

 

 

69,141

 

Additions / Transfers

 

 

3,716

 

 

 

78

 

 

 

1,176

 

 

 

3,270

 

 

 

3,079

 

 

 

701

 

 

 

12,020

 

Writedowns

 

 

-

 

 

 

(6)

 

 

(22)

 

 

(629)

 

 

(141)

 

 

-

 

 

 

(798)

Effect of movements in exchange rates

 

 

(28)

 

 

9

 

 

 

1

 

 

 

2

 

 

 

-

 

 

 

(24)

 

 

(40)

Balance at December 31, 2023

 

 

18,375

 

 

 

844

 

 

 

1,929

 

 

 

17,573

 

 

 

26,232

 

 

 

15,370

 

 

 

80,323

 

Additions / Transfers

 

 

187

 

 

 

6

 

 

 

2

 

 

 

138

 

 

 

409

 

 

 

(454)

 

 

288

 

Writedowns

 

 

-

 

 

 

(1)

 

 

(1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2)

Effect of movements in

exchange rates

 

 

3

 

 

 

(2)

 

 

1

 

 

 

(1)

 

 

-

 

 

 

(21)

 

 

(20)

Balance at March 31, 2024

 

 

18,565

 

 

 

847

 

 

 

1,931

 

 

 

17,710

 

 

 

26,641

 

 

 

14,895

 

 

 

80,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED DEPLETION AND DEPRECIATION / IMPAIRMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2023

 

 

9,106

 

 

 

441

 

 

 

598

 

 

 

5,178

 

 

 

6,733

 

 

 

3,029

 

 

 

25,085

 

Additions / Transfers

 

 

367

 

 

 

111

 

 

 

204

 

 

 

676

 

 

 

1,170

 

 

 

294

 

 

 

2,822

 

Writedowns

 

 

-

 

 

 

(4)

 

 

(21)

 

 

(619)

 

 

(9)

 

 

-

 

 

 

(653)

Balance at December 31, 2023

 

 

9,473

 

 

 

548

 

 

 

781

 

 

 

5,235

 

 

 

7,894

 

 

 

3,323

 

 

 

27,254

 

Additions / Transfers

 

 

103

 

 

 

21

 

 

 

100

 

 

 

4

 

 

 

480

 

 

 

77

 

 

 

785

 

Balance at March 31, 2024

 

 

9,576

 

 

 

569

 

 

 

881

 

 

 

5,239

 

 

 

8,374

 

 

 

3,400

 

 

 

28,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2024

 

 

8,989

 

 

 

278

 

 

 

1,050

 

 

 

12,471

 

 

 

18,267

 

 

 

11,495

 

 

 

52,550

 

At December 31, 2023

 

 

8,902

 

 

 

296

 

 

 

1,148

 

 

 

12,339

 

 

 

18,338

 

 

 

12,047

 

 

 

53,069

 
v3.24.1.u1
RELATED PARTY TRANSACTIONS AND BALANCES (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Related Party Transactions With Oniva

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Salaries, benefits, and consulting fees

 

$

293

 

 

$

284

 

Share-based payments

 

 

387

 

 

 

321

 

 

 

$

680

 

 

$

605

 
Schedule Of Related Party Transactions And Balances

 

 

March 31,

2024

 

 

December 31,

2023

 

Oniva International Services Corp.

 

$

100

 

 

$

102

 

Directors Fees

 

 

44

 

 

 

-

 

Silver Wolf Exploration Ltd.

 

 

(338

)

 

 

(269

)

 

 

$

(194

)

 

$

(167

)
Schedule Of Due To Related Parties

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Salaries and benefits

 

$

254

 

 

$

245

 

Office and miscellaneous

 

 

133

 

 

 

133

 

 

 

$

387

 

 

$

378

 
v3.24.1.u1
RECLAMATION PROVISION (Tables)
 3 Months Ended
Mar. 31, 2024
RECLAMATION PROVISION  
Reconciliation Of The Changes In The Company's Reclamation Provision

 

 

March 31,

2024

December 31,

2023

 

 

 

 

 

 

 

 

Balance at beginning of the period

 

$

2,195

 

 

$

445

 

Changes in estimates

 

 

-

 

 

 

1,615

 

Unwinding of discount related to continuing operations

 

 

51

 

 

 

49

 

Effect of movements in exchange rates

 

 

18

 

 

 

86

 

Balance at end of the period

 

$

2,264

 

 

$

2,195

 
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
SHARE CAPITAL AND SHAREBASED PAYMENTS  
Schedule Of Stock Options

 

 

Underlying

Shares

 

 

Weighted Average Exercise Price (C$)

 

 

 

 

 

 

 

 

Stock options outstanding, January 1, 2023

 

 

4,256,000

 

 

$1.36

 

Granted

 

 

2,545,000

 

 

$1.12

 

Expired

 

 

(105,000)

 

$1.30

 

Cancelled / Forfeited

 

 

(30,000)

 

$1.40

 

Stock options outstanding, December 31, 2023

 

 

6,666,000

 

 

$1.27

 

Granted

 

 

2,500,000

 

 

$0.78

 

Cancelled / Forfeited

 

 

(190,000)

 

$1.26

 

Stock options outstanding, March 31, 2024

 

 

8,976,000

 

 

$1.13

 

Stock options exercisable, March 31, 2024

 

 

6,401,000

 

 

$1.27

 
Schedule Of Stock Options Outsanding And Exercisable

 

 

 

 

Outstanding

 

 

Exercisable

 

        Expiry Date

 

Price (C$)

 

 

Number of Options

 

 

Weighted Average Remaining Contractual Life (Years)

 

 

Number of Options

 

 

Weighted Average Remaining Contractual Life (Years)

 

August 21, 2024

 

$0.79

 

 

 

126,000

 

 

 

0.39

 

 

 

126,000

 

 

 

0.39

 

August 4, 2025

 

$1.64

 

 

 

1,620,000

 

 

 

1.35

 

 

 

1,620,000

 

 

 

1.35

 

March 25, 2027

 

$1.20

 

 

 

2,255,000

 

 

 

2.98

 

 

 

2,255,000

 

 

 

2.98

 

May 4, 2027

 

$0.92

 

 

 

25,000

 

 

 

3.09

 

 

 

25,000

 

 

 

3.09

 

March 29, 2028

 

$1.12

 

 

 

2,300,000

 

 

 

4.00

 

 

 

2,300,000

 

 

 

4.00

 

July 10, 2028

 

$1.12

 

 

 

150,000

 

 

 

4.26

 

 

 

75,000

 

 

 

4.26

 

March 25, 2029

 

$0.78

 

 

 

2,500,000

 

 

 

4.99

 

 

 

-

 

 

 

4.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,976,000

 

 

 

3.49

 

 

 

6,401,000

 

 

 

2.90

 
Schedule of fair value of the stock options was calculated using the Black-Scholes model

 

 

March 31,

2024

 

 

December 31,

2023

 

Weighted average assumptions:

 

 

 

 

 

 

 Risk-free interest rate

 

 

3.51%

 

 

3.10%

 Expected dividend yield

 

 

0%

 

 

0%

 Expected warrant life (years)

 

 

5

 

 

 

5

 

 Expected stock price volatility

 

 

60.73%

 

 

61.10%

 Expected forfeiture rate

 

 

15%

 

 

17%

Weighted average fair value

 

C$

0.43

 

 

C$

0.60

 
Schedule Of Rsu Outstanding

 

 

Underlying

Shares

 

 

Weighted Average Price (C$)

 

 

 

 

 

 

 

 

RSUs outstanding, January 1, 2023

 

 

2,190,666

 

 

$1.27

 

Granted

 

 

1,878,320

 

 

$1.11

 

Exercised

 

 

(1,005,334)

 

$1.37

 

Cancelled / Forfeited

 

 

(68,943)

 

$1.14

 

RSUs outstanding, December 31, 2023

 

 

2,994,709

 

 

$1.14

 

Exercised

 

 

(585,265)

 

$1.19

 

RSUs outstanding, March 31, 2024

 

 

2,409,444

 

 

$1.13

 
Schedule of summarizes information about the RSUs

Issuance Date

 

Price (C$)

Number of RSUs Outstanding

 

March 25, 2022

 

$

1.19

 

 

 

577,000

 

March 29, 2023

 

$

1.12

 

 

 

1,763,124

 

July 10, 2023

 

$

0.94

 

 

 

69,320

 

 

 

 

 

 

 

 

2,409,444

 
Schedule Of Basic Earnings Per Share And Diluted Earnings Per Share

 

 

Three months ended

March 31,

 

 

 

2024

2023

 

Net income (loss) for the period

 

$

599

 

 

$

(352

)

Basic weighted average number of shares outstanding

 

 

130,027,962

 

 

 

118,572,700

 

Effect of dilutive share options, warrants, and RSUs

 

 

2,994,709

 

 

 

4,030,229

 

Diluted weighted average number of shares outstanding

 

 

133,022,671

 

 

 

122,602,929

 

Basic earnings (loss) per share

 

$

0.00

 

 

$

(0.00

)

Diluted earnings (loss) per share

 

$

0.00

 

 

$

(0.00

)
v3.24.1.u1
REVENUE AND COST OF SALES (Tables)
 3 Months Ended
Mar. 31, 2024
REVENUE AND COST OF SALES  
Schedule Of Revenue

 

 

March 31,

2024

 

 

March 31,

2023

 

Concentrate sales

 

$12,674

 

 

$9,992

 

Provisional pricing adjustments

 

 

(281)

 

 

(167)

 

 

$12,393

 

 

$9,825

 
Schedule Of Cost Of Sales

 

 

March 31,

2024

 

 

March 31,

2023

 

Production costs

 

$9,233

 

 

$7,304

 

Depreciation and depletion

 

 

821

 

 

 

670

 

 

 

$10,054

 

 

$7,974

 
v3.24.1.u1
GENERAL AND ADMINISTRATIVE EXPENSES (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of General And Administrative Expenses

 

 

March 31,

2024

 

 

March 31,

2023

 

Salaries and benefits

 

$396

 

 

$395

 

Office and miscellaneous

 

 

381

 

 

 

192

 

Professional fees

 

 

159

 

 

 

239

 

Management and consulting fees

 

 

107

 

 

 

106

 

Investor relations

 

 

73

 

 

 

81

 

Travel and promotion

 

 

35

 

 

 

54

 

Directors fees

 

 

44

 

 

 

44

 

Regulatory and compliance fees

 

 

41

 

 

 

38

 

Depreciation

 

 

36

 

 

 

35

 

 

 

$1,272

 

 

$1,184

 
v3.24.1.u1
COMMITMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Commitments

 

 

March 31,

2024

 

 

December 31,

2023

 

Not later than one year

 

$214

 

 

$714

 

Later than one year and not later than five years

 

 

1,292

 

 

 

1,241

 

Later than five years

 

 

4,146

 

 

 

3,965

 

 

 

$5,652

 

 

$5,920

 
v3.24.1.u1
SUPPLEMENT CASH FLOW INFORMATION (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Supplement Cash Flow Information

 

 

March 31,

2024

 

 

March 31,

2023

 

Net change in non-cash working capital items:

 

 

 

 

 

 

Inventory

 

$418

 

 

$(1,419)

Prepaid expenses and other assets

 

 

(106)

 

 

(18)

Taxes recoverable

 

 

78

 

 

 

(625)

Taxes payable

 

 

62

 

 

 

(867)

Accounts payable and accrued liabilities

 

 

(1,153)

 

 

1,466

 

Amounts receivable

 

 

1,447

 

 

 

658

 

Amounts due to related parties

 

 

(27)

 

 

39

 

 

 

$719

 

 

$(766)

 

 

March 31,

2024

 

 

March 31,

2023

 

Other non-cash supplementary information:

 

 

 

 

 

 

Interest paid

 

$64

 

 

$42

 

Taxes paid

 

 

10

 

 

 

5

 

 

 

$74

 

 

$47

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2024

 

 

March 31,

2023

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Shares acquired under terms of option agreements

 

 

-

 

 

 

41

 

Transfer of share-based payments reserve upon exercise of RSUs

 

 

512

 

 

 

512

 

Equipment acquired under finance leases and equipment loans

 

 

108

 

 

 

1,808

 

 

 

$620

 

 

$2,361

 
v3.24.1.u1
FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of Contractual Obligations And Commitments

 

 

Total

 

 

Less Than

1 Year

 

 

1-5 years

 

 

More Than 5 Years

 

Accounts payable and accrued liabilities

 

$10,713

 

 

$10,713

 

 

$-

 

 

$-

 

Minimum rental and lease payments

 

 

5,652

 

 

 

214

 

 

 

1,292

 

 

 

4,146

 

Equipment loans

 

 

341

 

 

 

184

 

 

 

157

 

 

 

-

 

Finance lease obligations

 

 

2,962

 

 

 

1,734

 

 

 

1,228

 

 

 

-

 

Total

 

$19,668

 

 

$12,845

 

 

$2,677

 

 

$4,146

 
Schedule Of Foreign Currency Risk

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

MXN

 

 

CDN

 

 

MXN

 

 

CDN

 

Cash

 

$8,108

 

 

$252

 

 

$13,338

 

 

$70

 

Due from related parties

 

 

5,643

 

 

 

-

 

 

 

4,558

 

 

 

-

 

Long-term investments

 

 

-

 

 

 

1,414

 

 

 

-

 

 

 

1,236

 

Reclamation bonds

 

 

-

 

 

 

6

 

 

 

-

 

 

 

6

 

Amounts receivable

 

 

3,042

 

 

 

20

 

 

 

18,644

 

 

 

26

 

Accounts payable and accrued liabilities

 

 

(78,884)

 

 

(145)

 

 

(95,662)

 

 

(150)

Due to related parties

 

 

-

 

 

 

(195)

 

 

-

 

 

 

(135)

Finance lease obligations

 

 

(800)

 

 

(179)

 

 

(1,129)

 

 

(217)

Net exposure

 

 

(62,891)

 

 

1,173

 

 

 

(60,251)

 

 

836

 

US dollar equivalent

 

$(3,767)

 

$865

 

 

$(3,567)

 

$577

 
Schedule Of Fair Value On Recurring Basis

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

Cash

 

$3,474

 

 

$-

 

 

$-

 

Amounts receivable

 

 

-

 

 

 

1,856

 

 

 

-

 

Long-term investments

 

 

1,043

 

 

 

-

 

 

 

-

 

Total financial assets

 

$4,517

 

 

$1,856

 

 

$-

 
v3.24.1.u1
SEGMENTED INFORMATION (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule Of consolidated statements of operations forrevenue

 

 

March 31,

2024

 

 

March 31,

2023

 

 

 

 

 

 

 

 

Silver

 

$5,036

 

 

$3,608

 

Gold

 

 

3,033

 

 

 

3,135

 

Copper

 

 

5,906

 

 

 

4,689

 

Penalties, treatment costs and refining charges

 

 

(1,582)

 

 

(1,607)

Total revenue from mining operations

 

$12,393

 

 

$9,825

 
Schedule Of customers accounted for total revenues

 

 

March 31,

2024

 

 

March 31,

2023

 

Customer #1

 

$8,596

 

 

$9,225

 

Customer #2

 

 

3,784

 

 

 

600

 

Other customers

 

 

13

 

 

 

-

 

Total revenue from mining operations

 

$12,393

 

 

$9,825

 
Schedule Of Geographical information relating non-current assets

 

 

 March 31,

2024

 

 

December 31,

2023

 

Exploration and evaluation assets - Mexico

 

$51,910

 

 

$50,110

 

Exploration and evaluation assets - Canada

 

 

1

 

 

 

1

 

Total exploration and evaluation assets

 

$51,911

 

 

$50,111

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Plant, equipment, and mining properties - Mexico

 

$52,398

 

 

$52,891

 

Plant, equipment, and mining properties - Canada

 

 

152

 

 

 

178

 

Total plant, equipment, and mining properties

 

$52,550

 

 

$53,069

 
v3.24.1.u1
BASIS OF PRESENTATION (Details)
 3 Months Ended
Mar. 31, 2024
Oniva Silver And GoldMines SADeCV [Member]  
Statement [Line Items]  
Ownership Interest 100.00%
Jurisdiction Mexico
Nueva Vizcaya Mining, S.A. de C.V. (Member)  
Statement [Line Items]  
Ownership Interest 100.00%
Jurisdiction Mexico
Promotora Avino, S.A. de C.V. (Member)  
Statement [Line Items]  
Ownership Interest 79.09%
Jurisdiction Mexico
La Preciosa Silver & Gold Mines Ltd.(Member)  
Statement [Line Items]  
Ownership Interest 100.00%
Jurisdiction Canada
La Luna Silver & Gold Mines Ltd. (Member)  
Statement [Line Items]  
Ownership Interest 100.00%
Jurisdiction Canada
Proyectos Mineros La Preciosa S.A. de C.V. (Member)  
Statement [Line Items]  
Ownership Interest 100.00%
Jurisdiction Mexico
Cervantes LLP (Member)  
Statement [Line Items]  
Ownership Interest 100.00%
Jurisdiction U.S.
Compania Minera Mexicana de Avino, S.A. de C.V. (Member)  
Statement [Line Items]  
Jurisdiction Mexico
Ownership Interest Indirect 1.22%
Ownership Interest Direct 98.45%
Ownership Interest Effective 99.67%
v3.24.1.u1
TAXES RECOVERABLE (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Vat Recoverable $ 2,767 $ 3,231
Gst Recoverable 14 20
Income Taxes Recoverable 3,721 3,329
Total Taxes Recoverable $ 6,502 $ 6,580
v3.24.1.u1
INVENTORY (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Process Material Stockpiles $ 2,944 $ 4,050
Concentrate Inventory 3,017 2,448
Materials And Supplies 2,377 2,328
Inventories $ 8,338 $ 8,826
v3.24.1.u1
INVENTORY (Details Narrative) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Amount of inventory recognized as an expense $ 10,054,000 $ 7,794,000  
Wrote down material and supplies inventory $ 0   $ 270,000
v3.24.1.u1
LONG TERM INVESTMENTS (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Statement [Line Items]  
Fair Value Of Long Term Investments, Beggining Balance $ 934
Net Additions And (warrants Exercised) 0
Movements In Foreign Exchange (23)
Fair Value Adjustments For The Period 132
Fair Value Of Long Term Investments, Ending Balance 1,043
Talisker Resources Ltd [Member] | Common Shares [Member]  
Statement [Line Items]  
Fair Value Of Long Term Investments, Beggining Balance 782
Net Additions And (warrants Exercised) 0
Movements In Foreign Exchange 20
Fair Value Adjustments For The Period (141)
Fair Value Of Long Term Investments, Ending Balance 903
Endurance Gold Corp. Common Shares  
Statement [Line Items]  
Fair Value Of Long Term Investments, Beggining Balance 81
Net Additions And (warrants Exercised) 0
Movements In Foreign Exchange (1)
Fair Value Adjustments For The Period (18)
Fair Value Of Long Term Investments, Ending Balance 62
Silver Wolf Exploration Ltd. [Member] | Common Share [Member]  
Statement [Line Items]  
Fair Value Of Long Term Investments, Beggining Balance 71
Net Additions And (warrants Exercised) 0
Movements In Foreign Exchange (2)
Fair Value Adjustments For The Period 9
Fair Value Of Long Term Investments, Ending Balance $ 78
v3.24.1.u1
EXPLORATION AND EVALUATION ASSETS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Beginning balance $ 50,111 $ 49,804
Drilling and exploration 743 1,312
Assessments and taxes 1,059 (842)
Effect of movements in exchange rates (2) (100)
La preciosa non-core concessions transfer   0
Option income   (63)
Ending balance 51,911 50,111
Avino, Mexico City [Member]    
Statement [Line Items]    
Beginning balance 15,698 11,828
Drilling and exploration 81 877
Assessments and taxes 100 88
Effect of movements in exchange rates (2) 22
La preciosa non-core concessions transfer   2,946
Option income   (63)
Ending balance 15,877 15,698
British Columbia & Yukon, Canada [Member]    
Statement [Line Items]    
Beginning balance 1 1
Drilling and exploration 0 0
Assessments and taxes 0 0
Effect of movements in exchange rates 0 0
Option income   0
Ending balance 1 1
La Preciosa, Mexico [Member]    
Statement [Line Items]    
Beginning balance 34,412 37,975
Drilling and exploration 662 435
Assessments and taxes 959 (930)
Effect of movements in exchange rates 0 (122)
La preciosa non-core concessions transfer   (2,946)
Option income   0
Ending balance $ 36,033 $ 34,412
v3.24.1.u1
EXPLORATION AND EVALUATION ASSETS (Details Narrative)
$ in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
USD ($)
integer
Dec. 31, 2012
CAD ($)
shares
Dec. 31, 2023
a
integer
Durango, Mexico [Member] | Unification La Platosa properties [Member]      
Statement [Line Items]      
Description For Exploration Period the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years    
Exploration And Mining Rights Acquisition Consideration Transferred, Shares Issued | shares   135,189  
Exploration And Mining Rights Acquisition Consideration Transferred Shares Issued, Value | $   $ 250  
Durango, Mexico [Member] | Unification La Platosa properties [Member] | Minerales [Member]      
Statement [Line Items]      
Description Of Royalty Terms The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes    
Description For Exclusive Right Acquisition Under Agreement Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property    
9 Concessions [Member] | Durango, Mexico [Member] | Gomez Palacio property [Member]      
Statement [Line Items]      
Area Of Exploitation Concessions     2,549
Avino Mine Area Property [Member] | 24 Concessions [Member] | Durango, Mexico [Member]      
Statement [Line Items]      
Area Of Exploitation Concessions     154.4
Number Of Exploitation Concessions | integer     24
Avino Mine Area Property [Member] | 1 Concessions [Member] | Durango, Mexico [Member]      
Statement [Line Items]      
Area Of Exploitation Concessions     98.83
La Preciosa, Mexico [Member]      
Statement [Line Items]      
Area Of Exploitation Concessions     1,284.7
Avino, Mexico [Member]      
Statement [Line Items]      
Number Of Mineral Claims Owned By Avino Mexico | integer 42    
Eagle property option agreement [Member] | Mayo Mining Division [Member] | Yukon, Canada [Member]      
Statement [Line Items]      
Terms Of Agreement The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property    
Cash Consideration | $ $ 250    
Silver Wolf Exploration Ltd. [Member] | Option Agreement [Member]      
Statement [Line Items]      
Ownership Percentage 100.00%    
v3.24.1.u1
NONCONTROLLING INTEREST (Details Narrative)
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Ownership Interest, Percentage 99.67% 99.67%
Non-controlling Interest 0.33% 0.33%
v3.24.1.u1
PLANT EQUIPMENT AND MINING PROPERTIES (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Beginning Balance $ 80,323,000 $ 69,141,000
Additions/ Transfers 288,000 12,020,000
Writendowns (2,000) (798,000)
Effect Of Movements In Exchange Rates (20,000) (40,000)
Ending balance 80,589,000 80,323,000
Accumulated Depletion And Depreciation, Beginning Balance 27,254,000 25,085,000
Accumulated Depletion And Depreciation, Additions / Transfers 785,000 2,822,000
Accumulated Depletion And Depreciation, Ending Balance 28,039,000 27,254,000
Accumulated Depletion And Depreciation, Writedowns   (653,000)
Net book value 52,550,000 53,069,000
Office Equipment Furniture And Fixtures [Member]    
Statement [Line Items]    
Beginning Balance 844,000 763,000
Additions/ Transfers 6,000 78,000
Writendowns (1,000) (6,000)
Effect Of Movements In Exchange Rates (2,000) 9,000
Ending balance 847,000 844,000
Accumulated Depletion And Depreciation, Beginning Balance 548,000 441,000
Accumulated Depletion And Depreciation, Additions / Transfers 21,000 111,000
Accumulated Depletion And Depreciation, Ending Balance 569,000 548,000
Accumulated Depletion And Depreciation, Writedowns   (4,000)
Net book value 278,000 296,000
Mine Machinery And Transportation Equipment [Member]    
Statement [Line Items]    
Beginning Balance 17,573,000 14,930,000
Additions/ Transfers 138,000 3,270,000
Writendowns 0 (629,000)
Effect Of Movements In Exchange Rates (1,000) 2,000
Ending balance 17,710,000 17,573,000
Accumulated Depletion And Depreciation, Beginning Balance 5,235,000 5,178,000
Accumulated Depletion And Depreciation, Additions / Transfers 4,000 676,000
Accumulated Depletion And Depreciation, Ending Balance 5,239,000 5,235,000
Accumulated Depletion And Depreciation, Writedowns   (619,000)
Net book value 12,471,000 12,339,000
Mill Machinery And Processing Equipment [Member]    
Statement [Line Items]    
Beginning Balance 26,232,000 23,294,000
Additions/ Transfers 409,000 3,079,000
Writendowns 0 (141,000)
Effect Of Movements In Exchange Rates 0 0
Ending balance 26,641,000 26,232,000
Accumulated Depletion And Depreciation, Beginning Balance 7,894,000 6,733,000
Accumulated Depletion And Depreciation, Additions / Transfers 480,000 1,170,000
Accumulated Depletion And Depreciation, Ending Balance 8,374,000 7,894,000
Accumulated Depletion And Depreciation, Writedowns   (9,000)
Net book value 18,267,000 18,338,000
Mining Property [Member]    
Statement [Line Items]    
Beginning Balance 18,375,000 14,687,000
Additions/ Transfers 187,000 3,716,000
Writendowns 0 0
Effect Of Movements In Exchange Rates 3,000 (28,000)
Ending balance 18,565,000 18,375,000
Accumulated Depletion And Depreciation, Beginning Balance 9,473,000 9,106,000
Accumulated Depletion And Depreciation, Additions / Transfers 103,000 367,000
Accumulated Depletion And Depreciation, Ending Balance 9,576,000 9,473,000
Accumulated Depletion And Depreciation, Writedowns   0
Net book value 8,989,000 8,902,000
Computer equipment [member]    
Statement [Line Items]    
Beginning Balance 1,929,000 774,000
Additions/ Transfers 2,000 1,176,000
Writendowns (1,000) (22,000)
Effect Of Movements In Exchange Rates 1,000 1,000
Ending balance 1,931,000 1,929,000
Accumulated Depletion And Depreciation, Beginning Balance 781,000 598,000
Accumulated Depletion And Depreciation, Additions / Transfers 100,000 204,000
Accumulated Depletion And Depreciation, Ending Balance 881,000 781,000
Accumulated Depletion And Depreciation, Writedowns   (21,000)
Net book value 1,050,000 1,148,000
Buildings and construction in process [Member]    
Statement [Line Items]    
Beginning Balance 15,370,000 14,693,000
Additions/ Transfers (454,000) 701,000
Writendowns 0 0
Effect Of Movements In Exchange Rates (21,000) (24,000)
Ending balance 14,895,000 15,370,000
Accumulated Depletion And Depreciation, Beginning Balance 3,323,000 3,029,000
Accumulated Depletion And Depreciation, Additions / Transfers 77,000 294,000
Accumulated Depletion And Depreciation, Ending Balance 3,400,000 3,323,000
Accumulated Depletion And Depreciation, Writedowns   0
Net book value $ 11,495,000 $ 12,047,000
v3.24.1.u1
PLANT EQUIPMENT AND MINING PROPERTIES (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
PLANT EQUIPMENT AND MINING PROPERTIES    
Assets Under Construction $ 3,341 $ 3,166
Property Plant Equipment, Write down 1 144
Property Plant Equipment, Net Carrying Amount $ 5,850 $ 5,832
v3.24.1.u1
RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Salaries, Benefits, And Consulting Fees $ 293 $ 284
Share-based Payments 387 321
Total Key Management Personnel Compensation $ 680 $ 605
v3.24.1.u1
RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Total amounts due to related parties $ (194) $ (167)
Oniva International Services Corp. [Member]    
Statement [Line Items]    
Due To Related Parties 100 102
Directors Fees [Member]    
Statement [Line Items]    
Due To Related Parties 44 0
Silver Wolf Exploration Ltd. [Member]    
Statement [Line Items]    
Due To Related Parties $ (338) $ (269)
v3.24.1.u1
RELATED PARTY TRANSACTIONS AND BALANCES (Details 2) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement [Line Items]    
Salaries And Benefits $ 293 $ 284
Office And Miscellaneous 381 192
Oniva International Services Corp. [Member]    
Statement [Line Items]    
Salaries And Benefits 254 245
Office And Miscellaneous 133 133
Total Cost $ 387 $ 378
v3.24.1.u1
RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement [Line Items]    
Salaries, Benefits, And Consulting Fees $ 293 $ 284
ICC [Member]    
Statement [Line Items]    
Salaries, Benefits, And Consulting Fees $ 71 $ 71
v3.24.1.u1
RECLAMATION PROVISION (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
RECLAMATION PROVISION    
Balance At Beginning Of The Year $ 2,195 $ 445
Changes In Estimates 0 1,615
Unwinding Of Discount Related To Continuing Operations 51 49
Effect Of Movements In Exchange Rates 18 86
Balance At End Of The Year $ 2,264 $ 2,195
v3.24.1.u1
RECLAMATION PROVISION (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Management's estimate one [Member]    
Statement [Line Items]    
Risk Free Interest Rate 9.72% 9.82%
Inflation Rate 3.88% 3.76%
Management's Estimate [Member]    
Statement [Line Items]    
Reclamation Provision $ 2,264 $ 2,195
Reclamation Provision Undiscounted Value $ 5,627 $ 5,491
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Details) - Stock options [Member] - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Stock Options Outstanding, Beginning 6,666,000 4,256,000
Granted 2,500,000 2,545,000
Expired   (105,000)
Cancelled / Forfeited (190,000) (30,000)
Stock Options Outstanding, Ending 8,976,000 6,666,000
Stock Options Exercisable 6,401,000  
Outstanding And Exercisable Weighted Average Exercise Price, Beginning $ 1.27 $ 1.36
Weighted Average Exercise Price, Granted 0.78 1.12
Weighted Average Exercise Price, Expired   1.30
Weighted Average Exercise Price, Cancelled / Forfeited 1.26 1.40
Outstanding And Exercisable Weighted Average Exercise Price, Ending 1.13 $ 1.27
Weighted Average Exercise Price, Stock Options Exercisable $ 1.27  
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 1)
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Stock options [Member]  
Statement [Line Items]  
Stock Options Exercisable 6,401,000
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 3 years 5 months 26 days
Stock Options Outstanding 8,976,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 2 years 10 months 24 days
Stock options [Member] | July 10, 2028 [Member]  
Statement [Line Items]  
Expiry Date Jul. 10, 2028
Exercise Price | $ / shares $ 1.12
Stock Options Exercisable 75,000
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 4 years 3 months 3 days
Stock Options Outstanding 150,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 4 years 3 months 3 days
Stock options [Member] | August 21, 2024 [Member]  
Statement [Line Items]  
Expiry Date Aug. 21, 2024
Exercise Price | $ / shares $ 0.79
Stock Options Exercisable 126,000
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 4 months 20 days
Stock Options Outstanding 126,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 4 months 20 days
Stock options [Member] | August 4, 2025 [Member]  
Statement [Line Items]  
Expiry Date Aug. 04, 2025
Exercise Price | $ / shares $ 1.64
Stock Options Exercisable 1,620,000
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 1 year 4 months 6 days
Stock Options Outstanding 1,620,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 1 year 4 months 6 days
Stock options [Member] | March 25, 2027 [Member]  
Statement [Line Items]  
Expiry Date Mar. 25, 2027
Exercise Price | $ / shares $ 1.20
Stock Options Exercisable 2,255,000
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 2 years 11 months 23 days
Stock Options Outstanding 2,255,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 2 years 11 months 23 days
Stock options [Member] | March 29, 2028 [Member]  
Statement [Line Items]  
Expiry Date Mar. 29, 2028
Exercise Price | $ / shares $ 1.12
Stock Options Exercisable 2,300,000
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 4 years
Stock Options Outstanding 2,300,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 4 years
Stock options [Member] | March 25, 2029 [Member]  
Statement [Line Items]  
Expiry Date Mar. 25, 2029
Exercise Price | $ / shares $ 0.78
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 4 years 11 months 26 days
Stock Options Outstanding 2,500,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 4 years 11 months 26 days
Stock Option [Member] | May 4, 2027 [Member]  
Statement [Line Items]  
Expiry Date May 04, 2027
Stock Options Exercisable 25,000
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding 3 years 1 month 2 days
Stock Options Outstanding 25,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable 3 years 1 month 2 days
Exercise price | $ / shares $ 0.92
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 2) - Stock options [Member] - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Risk-free Interest Rate 3.51% 3.10%
Expected Dividend Yield 0.00% 0.00%
Expected warrant life (years) 5 years 5 years
Expected Stock Price Volatility 60.73% 61.10%
Expected Forfeiture Rate 15.00% 17.00%
Weighted Average Fair Value $ 0.43 $ 0.60
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 3) - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
SHARE CAPITAL AND SHAREBASED PAYMENTS    
RSUs outstanding beg 2,994,709 2,190,666
Granted   1,878,320
Exercised (585,265) (1,005,334)
Cancelled and Forfeited   (68,943)
RSUs outstanding end 2,409,444 2,994,709
RSUs outstanding weighted average price beg $ 1.14 $ 1.27
RSUs outstanding weighted average price granted   1.11
RSUs outstanding weighted average price exercised 1.19 1.37
RSUs outstanding weighted average price cancelled forfeited   1.14
RSUs outstanding weighted average price end $ 1.13 $ 1.14
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 4) - Restricted Share Units [Member]
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Statement [Line Items]  
Stock Options Outstanding 2,409,444
March 29, 2023 [Member]  
Statement [Line Items]  
Exercise Price | $ / shares $ 1.12
Stock Options Outstanding 1,763,124
March 25, 2022 [Member]  
Statement [Line Items]  
Exercise Price | $ / shares $ 1.19
Stock Options Outstanding 577,000
July 10, 2023 [Member]  
Statement [Line Items]  
Exercise Price | $ / shares $ 0.94
Stock Options Outstanding 69,320
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 5) - Earning loss Per Share [Member] - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement [Line Items]    
Net income for the period $ 599 $ (352)
Basic weighted average number of shares outstanding 130,027,962 118,572,700
Effect of dilutive share options, warrants, and RSUs ('000) 2,994,709 4,030,229
Diluted weighted average number of shares outstanding 133,022,671 122,602,929
Basic and diluted earnings per share $ 0.00 $ (0.00)
Diluted earnings (loss) per share $ 0.00 $ (0.00)
v3.24.1.u1
SHARE CAPITAL AND SHAREBASED PAYMENTS (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Statement [Line Items]      
Common Shares Issued 1,886,248   9,373,825
Gross Proceeds On Cash Commission $ 25   $ 155
Cash commission 2.75%   2.75%
Issuance shares costs $ 13   $ 339
Net proceeds from cash commission 901   5,493
Proceeds from gross prospectus supplement 926   $ 5,648
Fair Value Of Stock Options Granted, Share-based Payments $ 92 $ 62  
Restricted Share Units 0   1,878,320
Weighted Average Fair Value Per Share $ 1.11   $ 1.11
Share-based Payments for fair value $ 331 $ 277  
Share Capital Two [Member]      
Statement [Line Items]      
Issued common shares upon exercise of RSUs 585,265   1,005,333
Common shares issued carrying value of RSUs exercised $ 512   $ 1,019
v3.24.1.u1
REVENUE AND COST OF SALES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
REVENUE AND COST OF SALES    
Concentrate Sales $ 12,674 $ 9,992
Provisional Pricing Adjustments (281) (167)
Total Revenue $ 12,393 $ 9,825
v3.24.1.u1
REVENUE AND COST OF SALES (Details 1) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
REVENUE AND COST OF SALES    
Production costs $ 9,233 $ 7,304
Depreciation and depletion 821 670
Total cost $ 10,054 $ 7,974
v3.24.1.u1
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Salaries and benefits $ 396 $ 395
Office and miscellaneous 381 192
Professional fees 159 239
Management and consulting fees 107 106
Investor relations 73 81
Travel and promotion 35 54
Directors fees 44 44
Regulatory and compliance fees 41 38
Depreciation 36 35
General and administrative expenses $ 1,272 $ 1,184
v3.24.1.u1
COMMITMENTS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Minimum Rental And Lease Payments $ 5,652 $ 5,920
Later than five years [member]    
Statement [Line Items]    
Minimum Rental And Lease Payments 4,146 3,965
Not later than one year [member]    
Statement [Line Items]    
Minimum Rental And Lease Payments 214 714
1-5 years [member]    
Statement [Line Items]    
Minimum Rental And Lease Payments $ 1,292 $ 1,241
v3.24.1.u1
COMMITMENTS (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Office lease payments recognized as expense $ 10 $ 4
v3.24.1.u1
SUPPLEMENTARY CASH FLOW INFORMATION (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Net change in non-cash working capital items:    
Inventory $ 418 $ (1,419)
Prepaid expenses and other assets (106) (18)
Taxes recoverable 78 (625)
Taxes payable 62 (867)
Accounts payable and accrued liabilities (1,153) 1,466
Amounts receivable 1,447 658
Amounts due to related parties (27) 39
Net change in non-cash working capital $ 719 $ (766)
v3.24.1.u1
SUPPLEMENTARY CASH FLOW INFORMATION (Details 1) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Interest paid $ 64 $ 42
Taxes paid 10 5
Equipment acquired under finance leases and equipment loans $ 74 $ 47
v3.24.1.u1
SUPPLEMENTARY CASH FLOW INFORMATION (Details 2) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Shares acquired under terms of option agreements $ 0 $ 41
Transfer of share-based payments reserve upon exercise of RSUs 512 512
Equipment acquired under finance leases and equipment loans 108 1,808
Non-cash investing and financing activities $ 620 $ 2,361
v3.24.1.u1
FINANCIAL INSTRUMENTS (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Accounts Payable And Accrued Liabilities $ 10,713 $ 11,867
Equipment Loans 151 $ 195
1-5 years [member]    
Statement [Line Items]    
Accounts Payable And Accrued Liabilities 0  
Minimum rental and lease payments 1,292  
Equipment Loans 157  
Finance Lease Obligations 1,228  
Total 2,677  
More Than 5 Years [Member]    
Statement [Line Items]    
Accounts Payable And Accrued Liabilities 0  
Minimum rental and lease payments 4,146  
Equipment Loans 0  
Finance Lease Obligations 0  
Total 4,146  
Less Than One Year [Member]    
Statement [Line Items]    
Accounts Payable And Accrued Liabilities 10,713  
Minimum rental and lease payments 214  
Equipment Loans 184  
Finance Lease Obligations 1,734  
Total 12,845  
Financial Instruments [Member]    
Statement [Line Items]    
Accounts Payable And Accrued Liabilities 10,713  
Minimum rental and lease payments 5,652  
Equipment Loans 341  
Finance Lease Obligations 2,962  
Total $ 19,668  
v3.24.1.u1
FINANCIAL INSTRUMENTS (Details 1)
$ in Thousands, $ in Thousands, $ in Thousands
Mar. 31, 2024
USD ($)
Mar. 31, 2024
MXN ($)
Mar. 31, 2024
CAD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2023
MXN ($)
Dec. 31, 2023
CAD ($)
Statement [Line Items]            
Long-term Investments $ 1,043     $ 934    
Amounts Receivable 1,856     3,303    
Accounts Payable And Accrued Liabilities $ 10,713     $ 11,867    
MXN [Member]            
Statement [Line Items]            
Cash   $ 8,108     $ 13,338  
Due from related parties   5,643     4,558  
Long-term Investments   0     0  
Reclamation Bonds   0     0  
Amounts Receivable   3,042     18,644  
Accounts Payable And Accrued Liabilities   (78,884)     (95,662)  
Due To Related Parties   0     0  
Finance Lease Obligations   (800)     (1,129)  
Net Exposure   (62,891)     (60,251)  
Us Dollar Equivalent   $ (3,767)     $ (3,567)  
CDN [Member]            
Statement [Line Items]            
Cash     $ 252     $ 70
Due from related parties     0     0
Long-term Investments     1,414     1,236
Reclamation Bonds     6     6
Amounts Receivable     20     26
Accounts Payable And Accrued Liabilities     (145)     (150)
Due To Related Parties     (195)     (135)
Finance Lease Obligations     (179)     (217)
Net Exposure     1,173     836
Us Dollar Equivalent     $ 865     $ 577
v3.24.1.u1
FINANCIAL INSTRUMENTS (Details 2) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Amounts Receivable $ 1,856 $ 3,303
Long-term Investments 1,043 $ 934
Level 1 of fair value hierarchy [member]    
Statement [Line Items]    
Cash 3,474  
Amounts Receivable 0  
Long-term Investments 1,043  
Total Financial Assets 4,517  
Level 2 of fair value hierarchy [member]    
Statement [Line Items]    
Cash 0  
Amounts Receivable 1,856  
Long-term Investments 0  
Total Financial Assets 1,856  
Level 3 of fair value hierarchy [member]    
Statement [Line Items]    
Cash 0  
Amounts Receivable 0  
Long-term Investments 0  
Total Financial Assets $ 0  
v3.24.1.u1
FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Statement [Line Items]    
Cash $ 3,474 $ 2,688
Current liabilities $ 12,656 13,808
Interest Rate Risk [Member]    
Statement [Line Items]    
Asset And Liability Exposure, Description A 10% change in the interest rate would not result in a material impact on the Company’s operations.  
Liquidity Risk [Member]    
Statement [Line Items]    
Cash   3,474
Current liabilities   $ 9,785
Foreign Currency Risk [Member]    
Statement [Line Items]    
Impact On Net Earning (loss) $ 298  
Price Risk [Member]    
Statement [Line Items]    
Impact On Net Earning (loss) 106  
Price Risk [Member] | Long-term investments [Member]    
Statement [Line Items]    
Impact On Net Earning (loss) $ 105  
v3.24.1.u1
SEGMENTED INFORMATION (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Silver $ 5,036 $ 3,608
Gold 3,033 3,135
Copper 5,906 4,689
Penalties, Treatment Costs And Refining Charges (1,582) (1,607)
Total Revenue From Mining Operations $ 12,393 $ 9,825
v3.24.1.u1
SEGMENTED INFORMATION (Details 1) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Customer 1 $ 8,596 $ 9,225
Customer 2 3,784 600
Other Customer 13 0
Total Revenue From Mining Operations $ 12,393 $ 9,825
v3.24.1.u1
SEGMENTED INFORMATION (Details 2) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Exploration And Evaluation Assets - Mexico $ 51,910 $ 50,110
Exploration And Evaluation Assets - Canada 1 1
Total Exploration And Evaluation Assets $ 51,911 $ 50,111
v3.24.1.u1
SEGMENTED INFORMATION (Details 3) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Plant, Equipment And Mining Properties - Mexico $ 52,398 $ 52,891
Plant, Equipment And Mining Properties - Canada 152 178
Total Plant, Equipment And Mining Properties $ 52,550 $ 53,069
v3.24.1.u1
SEGMENTED INFORMATION (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Total Revenue From Mining Operations $ 12,393 $ 9,825
v3.24.1.u1
SUBSEQUENT EVENTS (Details Narrative)
$ in Thousands
 1 Months Ended
Mar. 31, 2024
USD ($)
shares
SUBSEQUENT EVENTS  
Issue of common share | shares 1,256,000
Gross proceeds from issue of share | $ $ 993
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