Avino Reports Q3, 2013 Net Earnings of $938,694 "$0.03" Per Share and Cash Flow from Operations of $1,581,663 "$0.06" Per Share
03 December 2013 - 12:00AM
Marketwired
Avino Reports Q3, 2013 Net Earnings of $938,694 "$0.03" Per Share
and Cash Flow from Operations of $1,581,663 "$0.06" Per Share
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 2, 2013) - Avino
Silver and Gold Mines Ltd.
(TSX-VENTURE:ASM)(NYSEMKT:ASM)(FRANKFURT:GV6) ("Avino" or "the
Company") is pleased to report its financial results for the third
quarter ended September 30, 2013. All financial information is
prepared in accordance with IFRS and all dollar amounts are
expressed in Canadian dollars unless otherwise specified. The
information in this news release should be read in conjunction with
the Company's unaudited condensed interim consolidated financial
statements for the three and nine months ended September 30, 2013
and associated management discussion and analysis ("MD&A")
which are available on the Company's website at www.avino.com and
under the Company's profile on SEDAR at www.sedar.com.
"We are very pleased to report our earnings for Q3 from San
Gonzalo and Stockpile production," stated Malcolm Davidson, CFO.
"Our financial results are particularly satisfying given the
environment of declining metal prices and uncertainty in the
current markets. Our free cash flow continues to be re-invested in
advancing the Avino and San Gonzalo mines, modernizing the mill and
acquiring new mining equipment. Our team continues to control and
manage operating costs which has resulted in an average cash
operating cost of $6.86 per silver equivalent ounce and net
earnings of $938,694 for the three months ended September 30,
2013."
Q3 2013 Financial and
Operational Highlights(1)
- Revenues reported for the quarter $3,821,622
- Mine operating income $2,323,217
- General and administrative expenses $1,264,863
- Earnings before income taxes $1,029,694
- Earnings for the period $938,694
- Earnings per share - basic and diluted $0.03
- Cash flows from operations - $1,581,663
- Cash flow per share - $0.06
- Processed ore for Q3 2013 was 37,630 tonnes
- Silver ounces sold for Q3 2013 was 148,123
- Gold ounces sold for Q3 2013 was 747
- Consolidated cash cost per equivalent silver ounce for Q3 was
$6.86
- Consolidated All-in sustaining cash cost per ounce for Q3 was
$11.35
- Ore stockpile and concentrate inventory value at September 30,
2013 was $1,616,321
Cash Cost of Sales per
Silver Equivalent Ounce
The following table provides a reconciliation of cost of sales
per the consolidated financial statements to cash cost per silver
equivalent ounce sold:
|
Three months ended September 2013 |
|
Nine months ended September 30, 2013 |
|
|
San Gonzalo |
|
Historic Stockpiles |
|
Total |
|
San Gonzalo |
|
Historic Stockpiles |
|
Total |
|
Cost of sales (as reported) |
$ |
1,021,852 |
|
$ |
476,553 |
|
$ |
1,498,405 |
|
$ |
5,706,867 |
|
$ |
854,248 |
|
$ |
6,561,115 |
|
Depletion and Depreciation |
|
(119,346 |
) |
|
(43,867 |
) |
|
(163,213 |
) |
|
(694,137 |
) |
|
(51,079 |
) |
|
(745,216 |
) |
Cash Production Cost |
|
902,506 |
|
|
432,686 |
|
|
1,335,194 |
|
|
5,012,730 |
|
|
803,169 |
|
|
5,815,899 |
|
Silver ounces sold |
|
123,566 |
|
|
24,557 |
|
|
148,123 |
|
|
408,585 |
|
|
42,834 |
|
|
451,419 |
|
Gold ounces sold |
|
551 |
|
|
196 |
|
|
747 |
|
|
1,777 |
|
|
350 |
|
|
2,127 |
|
Au:Ag ratio(2) |
|
62.21:1 |
|
|
62.21:1 |
|
|
62.21:1 |
|
|
58.69:1 |
|
|
58.69:1 |
|
|
58.69:1 |
|
Silver equivalent ounces sold |
|
157,845 |
|
|
36,745 |
|
|
194,589 |
|
|
512,887 |
|
|
63,376 |
|
|
576,263 |
|
Direct Cash Cost per EAg Ounce(3) |
$ |
5.72 |
|
$ |
11.78 |
|
$ |
6.86 |
|
$ |
9.77 |
|
$ |
12.67 |
|
$ |
10.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of cost of sales
per the condensed consolidated interim financial statements to
all-in sustaining cash cost per silver equivalent ounce sold:
|
|
|
|
|
|
Three months ended September 30, 2013 |
|
Nine months ended September 30, 2013 |
|
|
San Gonzalo |
|
Avino Stockpiles |
|
Total |
|
San Gonzalo |
|
Avino Stockpiles |
|
Total |
|
Cost of sales (as reported) - CAD |
$ |
1,021,852 |
|
$ |
476,553 |
|
$ |
1,498,405 |
|
$ |
5,706,867 |
|
$ |
854,248 |
|
$ |
6,561,115 |
|
Depletion and Depreciation |
|
(119,346 |
) |
|
(43,867 |
) |
|
(163,213 |
) |
|
(694,137 |
) |
|
(51,079 |
) |
|
(745,216 |
) |
Cash Production Cost |
|
902,506 |
|
|
432,686 |
|
|
1,335,194 |
|
|
5,012,730 |
|
|
803,169 |
|
|
5,815,899 |
|
Operating and Administrative Expenses |
|
1,096,434 |
|
|
168,429 |
|
|
1,264,863 |
|
|
3,039,707 |
|
|
334,266 |
|
|
3,373,973 |
|
Depreciation |
|
(148 |
) |
|
(23 |
) |
|
(171 |
) |
|
(462 |
) |
|
(53 |
) |
|
(515 |
) |
Share-based Payments |
|
(339,230 |
) |
|
(52,111 |
) |
|
(391,341 |
) |
|
(800,897 |
) |
|
(89,779 |
) |
|
(890,676 |
) |
Cash Operating Cost |
|
1,659,562 |
|
|
548,983 |
|
|
2,208,545 |
|
|
7,251,078 |
|
|
1,047,603 |
|
|
8,298,682 |
|
Silver equivalent ounces sold |
|
157,845 |
|
|
36,745 |
|
|
194,589 |
|
|
512,887 |
|
|
63,376 |
|
|
576,263 |
|
All-in sustaining Cash Cost per EAg Ounce |
$ |
10.51 |
|
$ |
14.94 |
|
$ |
11.35 |
|
$ |
14.14 |
|
$ |
16.53 |
|
$ |
14.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outlook
The Company's primary focus for the 2013 fiscal year is to
improve and strengthen the operational efficiency and manage costs
of the San Gonzalo mine operation.
Management remains focused on the following key objectives:
- Maintain profitable mining operations at San Gonzalo while
decreasing operating costs and improving efficiency;
- Develop the Avino mine for mineral production, expand mill
output from 500 to 1,500 tonnes per day;
- Continue to review and develop plans to process the oxide
tailings resource from previous milling operations (PEA issued in
2012);
- Continue to explore regional targets on the property followed
by other properties in our portfolio.
About Avino
Founded in 1968, Avino's mission is to create shareholder value
through profitable organic growth at the Avino property. We are
committed to managing all business activities in an environmentally
responsible and cost-effective manner while contributing to the
well-being of the community in which we operate.
ON BEHALF OF THE BOARD
Malcolm Davidson, CA, Chief Financial Officer
Safe Harbor Statement - This news release contains
"forward-looking information" and "forward-looking statements"
(together, the "forward looking statements") within the meaning of
applicable securities laws and the United States Private Securities
Litigation Reform Act of 1995, including our belief as to the
extent and timing of various studies including the PEA, and
exploration results, the potential tonnage, grades and content of
deposits, timing and establishment and extent of resources
estimates. These forward-looking statements are made as of the date
of this news release and the dates of technical reports, as
applicable. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
future circumstances, outcomes or results anticipated in or implied
by such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur. While we have based these
forward-looking statements on our expectations about future events
as at the date that such statements were prepared, the statements
are not a guarantee that such future events will occur and are
subject to risks, uncertainties, assumptions and other factors
which could cause events or outcomes to differ materially from
those expressed or implied by such forward-looking statements.
Such factors and assumptions include, among others, the effects
of general economic conditions, the price of gold, silver and
copper, changing foreign exchange rates and actions by government
authorities, uncertainties associated with legal proceedings and
negotiations and misjudgments in the course of preparing
forward-looking information. In addition, there are known and
unknown risk factors which could cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with project development; the need for additional
financing; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters;
uncertainties and risks related to carrying on business in foreign
countries; environmental liability claims and insurance; reliance
on key personnel; the potential for conflicts of interest among
certain of our officers, directors or promoters of with certain
other projects; the absence of dividends; currency fluctuations;
competition; dilution; the volatility of the our common share price
and volume; tax consequences to U.S. investors; and other risks and
uncertainties. Although we have attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. We are under no obligation to update or alter any
forward-looking statements except as required under applicable
securities laws.
Cautionary Note to United States Investors - The information
contained herein and incorporated by reference herein has been
prepared in accordance with the requirements of Canadian securities
laws, which differ from the requirements of United States
securities laws. In particular, the term "resource" does not equate
to the term "reserve". The Securities Exchange Commission's (the
"SEC") disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute "reserves" by SEC standards, unless such
information is required to be disclosed by the law of the Company's
jurisdiction of incorporation or of a jurisdiction in which its
securities are traded. U.S. investors should also understand that
"inferred mineral resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. Disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
(1) Comparative periods have not been presented in this news
release as the comparative information is not available nor is it
relevant as the Company was in the exploration stage during the
comparable quarter. The information in this news release should be
read in conjunction with the Company's unaudited condensed
consolidated interim financial statements for the nine months ended
September 30, 2013 and associated management discussion and
analysis ("MD&A").
(2) Silver equivalent ounces "EAg" consists of the number of
ounces of silver sold plus the number of ounces of gold sold
multiplied by the ratio of the average spot gold price to the
average spot silver price for the corresponding period.
(3) Cash cost per ounce and total production costs per tonne are
measures developed by mining companies in an effort to provide a
comparable standard; however, there can be no assurance that our
reporting of these non-IFRS measures are similar to that reported
by other mining companies. Total cash cost per ounce and total
production cost per tonne are measures used by the Company to
manage and evaluate operating performance of the Company's mining
operations, and widely reported in the silver and gold mining
industry as a benchmark for performance, but does not have a
standardized meaning and is disclosed in addition to IFRS
measures.
Management of the Company believes that the Company's ability to
control the cash cost per silver ounce is one of its key
performance drivers impacting both the Company's financial
condition and results of operations. Achieving a low silver
production cost base allows the Company to remain profitable even
during times of declining commodity prices and provides more
flexibility in responding to changing market conditions. In
addition, a profitable operation results in the generation of
positive cash flows, which then improves the Company's financial
condition.
To facilitate a better understanding of this measure as
calculated by the Company, a detailed reconciliation between the
cash cost per silver ounce and the Company's cost of sales as
reported in the Company's Condensed Consolidated Interim Statements
of Comprehensive Income (Loss) is provided.
Avino Silver and Gold Mines Ltd.Malcolm Davidson, CAChief
Financial
Officer604.682.3701604.682.3600ir@avino.comwww.avino.com
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