Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American; FSE: GV6, “Avino” or “the Company”) released today its consolidated financial results for the Company’s third quarter ended September 30, 2019. The Financial Statements and Management Discussion and Analysis (MD&A) can be viewed on the Company’s web site at www.avino.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
During Q3 2019, Avino generated lower revenues, a mine operating loss, and a net loss after taxes compared to Q3 2018, directly related to the winding down of the San Gonzalo mine, as well as lower than expected production from the Avino mine due seasonal heavy rains. The grades at San Gonzalo continued to decrease which resulted in decreased ounces sold and correspondingly, increased costs per ounce. The costs at the Avino Mine also increased on a per ounce basis in Q3 2019 compared to Q3 2018, as a result of grade variation in the current mining areas, as well as the timing of concentrate sales which were slightly offset by an increase in realized metal prices and improvement in mill recoveries. The Company had a larger than average concentrate inventory balance of $4.8 million, of which the majority was sold subsequent to the end of the third quarter 2019, which is expected to have a positive impact on the Company’s Q4 2019 revenue.
THIRD QUARTER 2019 HIGHLIGHTS
•Generated revenues of $6.8 million from the sale of concentrates
•Mine operating loss of $0.2 million
•Net loss after taxes of $1.6 million, or a loss of $0.02 per share
•Silver equivalent production of 570,220 ounces1, including 221,928 ounces of silver, 1,448 ounces of gold and 1,381,924 pounds of copper
•Total consolidated cash cost2 was $12.74 per silver equivalent payable ounce1
•Consolidated all-in sustaining cash cost (“AISC”)2 was $15.56 per silver payable equivalent ounce1
•Working capital of $10.1 million, up 12% compared to Q3 2018
•Earnings before interest, taxes, depreciation and amortization (“EBITDA”)2 was a loss of $1.6 million
•Adjusted EBITDA was a loss of $0.1 million
•Cash of $2.9 million was on hand at the end of the quarter, and approximately $6.0 million as of today
•G&A expenditures reduced by 23% compared to Q3 2018, and by 29% year to date 2019, compared to year to date 2018
1. In Q3, 2019, AgEq was calculated using metals prices of $16.98 oz Ag, $1,472 oz Au and $2.63 lb Cu. In Q3, 2018, AgEq was calculated using metals prices of $15.00 oz Ag, $1,213 oz Au and $2.77 lb Cu. Calculated figures may not add up due to rounding.
2. The Company reports non-IFRS measures which include cash cost per silver equivalent ounce, all-in sustaining cash cost per ounce, and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported.
“During the third quarter of 2019, our financials were impacted due to decreasing consolidated silver and gold feed grades, minor production interruptions as a result of delays due to heavy seasonal rain, together with the winding down of San Gonzalo” said David Wolfin, President and CEO. “On a positive note, we were encouraged by the increase in throughput and recoveries at the Avino Mine, the progression of the Open Pit tailings storage work, which is now operational and receiving tailings. In addition, the transition to increased production at the Avino Mine together with its higher-grade zones, should help us return to profitability in the fourth quarter of 2019 and 2020. In addition, in 2020 the Avino Mine will transition from the development style mining to full scale production mining to feed all four circuits. We will be using the Long Hole Retreat mining method which we anticipate will lower our mining costs on a consolidated basis.”
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