Welcome!

News Feed Item

Avino Reports Second Quarter 2014 Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/20/14 -- Avino Silver & Gold Mines Ltd. (TSX VENTURE: ASM)(NYSE MKT: ASM)(FRANKFURT: GV6)(BERLIN: GV6) ("Avino" or "the Company") is pleased to report its financial results for the quarter ended June 30, 2014. All financial information, other than non-IFRS measures, 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 condensed consolidated interim financial statements for the six months ended June 30, 2014 and associated management's discussion and analysis ("MD&A") and the audited consolidated financial statements for the year ended December 31, 2013 and associated 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.

"Avino has delivered another strong quarter of financial results from mining operations. Our mine operating income and general and administrative expenses are consistent with the comparable quarter and consistent with our expectations. Avino has utilized its non-capital tax loss carry-forwards in Mexico and is now incurring current income tax expenses. We are pleased to support the economic health of our neighbouring communities in Mexico and look forward to continued positive relations while we move closer to completing the Avino Mine expansion," stated Malcolm Davidson, CFO.

Highlights of Second Quarter 2014 (Compared to Second Quarter 2013)

Financial


--  Cash cost per AgEq ounce(1 ) was $8.67 compared to $9.66 in 2013
--  Consolidated all-in sustaining cash cost per AgEq ounce(1) was $12.02
    compared to $12.80 in 2013
--  Revenues reported for the quarter were $5,104,921 compared to $4,951,952
    in 2013, an increase of 3%
--  Income from mine operations was $2,311,928, a decrease of $26,471 or 1%
--  General and administrative expenses were $966,319 compared to $957,206
    in 2013
--  Earnings before income taxes was $440,797 compared to $1,532,301 in 2013
--  Earnings (Loss) for the quarter was ($87,097), a decrease of $1,534,398
    from 2013
--  Earnings (Loss) per share, basic and diluted, was ($0.00) compared to
    $0.05 in 2013
--  Average realized prices per ounce of silver and gold were US$19.59 and
    US$1,283 respectively for 2014 and US$26.63 and US$1,523 respectively
    for 2013
--  Cash flows from operations before movements in working capital and
    income taxes were $3.1 million for the first six months of 2014,
    compared to $2.8 million for the corresponding period of the previous
    year
--  Cash flow per share(1), basic and diluted, was $0.07 per share for the
    first six months of 2014, compared to $0.10 per share for the
    corresponding period of the previous year

(1)   Silver equivalent ounces sold ("AgEq ounce") 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. Please refer to the
      information under the heading "Non-IFRS Measures" of this news release
      for a discussion of cash cost per silver equivalent ounce, all-in
      sustaining cash cost per silver equivalent ounce, and cash flow per
      share.

(i)   For comparison purposes, a silver equivalent ratio of 62.5:1 for
      silver to gold has been used.  Mill production figures have not been
      reconciled and are subject to adjustment with concentrate sales.
      Calculated figures may not add up due to rounding.

Operational


--  Silver production increased 27% to 223,183 oz
--  Gold production increased 47% to 1,157 oz
--  Silver equivalent production increased 32% to 295,531 oz(i)
--  Concentrate inventory available for sale at quarter-end was 65.7 and
    97.0 dry metric tonnes from San Gonzalo and the Avino Mine stockpile
    operations respectively

"I'm pleased to report another solid quarter of stable silver and gold production. Cash costs continue to decrease and revenue increased even in light of weaker metals prices over the same period last year. This is good news for Avino shareholders and can be attributed to our excellent staff of well-trained managers, geologists, mining engineers, metallurgists and the rest of the operations team. The outlook to year-end looks robust as we anticipate bringing circuit number 3 online by the fourth quarter, effectively tripling mill capacity."

- David Wolfin, President, CEO & Director, Avino Silver & Gold Mines Ltd

Financial Review

The Company generated revenues of $5,104,921 for the second quarter of 2014, a 3% increase compared the second quarter 2013. Although metals prices decreased significantly between the periods, the Company recorded a higher number of silver equivalent ounces sold as a result of improved grades and recoveries.

Earnings decreased $1,534,398 for a loss of $87,097 or ($0.00) per share, compared to earnings of $1,447,301 or $0.05 per share during the second quarter of 2013. The decrease reflects significant increases in current and deferred taxes, and non-cash and non-operating charges for foreign exchange losses and fair value adjustments to the derivative warrant liability. Mine operating income was $2,311,928, a decrease of $26,471 or 1% from $2,338,399 during the second quarter of 2013.

Cash flows from operations before movements in working capital and income taxes through the first half of 2014 totalled $3.1 million, an increase of 11% over the $2.8 million generated through the first half of 2013, reflecting higher mine operating income as a result of circuit 2 coming on line in the second quarter of 2013.

Operational Review

Total silver equivalent production in the second quarter increased to 295,531 silver equivalent ounces(i), an increase of 32% compared to the second quarter of 2013. The production growth was primarily due to higher feed grades and recoveries at the San Gonzalo mine and higher tonnage processed, higher feed grade, and better silver recoveries at the Avino Mine stockpile operation.

The consolidated average silver equivalent feed grade for the second quarter was 255 g/t compared to 223 g/t during the second quarter of 2013, an increase of 14%.

Total ore processed during the second quarter was 40,052 dry tonnes compared to 36,269 during the second quarter of 2013, an increase of 10%.

Costs and Capital Expenditures

Consolidated cash costs per AgEq ounce(1) in the second quarter were $8.67, a 10% decrease from the second quarter of 2013. The reduction in cash costs are primarily attributed to an increase in silver equivalent ounces sold.

Consolidated all-in sustaining cash costs per AgEq ounce(1) during the second quarter were $12.02 compared to $12.80 in the second quarter of 2013, a decrease of 6%. The reduction in cost can be attributed primarily to an increase in silver equivalent ounces sold.

Capital expenditures year to date at the end of the second quarter were $3.4 million compared to $3.4 million as at the end of the second quarter of 2013.

Capital expenditures primarily relate to the Avino mine expansion, the process plant expansion for circuit 3, and equipment to advance operations at the San Gonzalo mine.

Mine Operations

San Gonzalo Mine

A total of 241,600 silver equivalent ounces(i) were produced by mill circuit 1 during the quarter. This represents an increase of 31% compared to the second quarter of 2013.

Cash costs were $8.42 per AgEq ounce(1) compared to $9.15 in the second quarter of 2013, a decrease of 8%. The reduction in cash costs primarily reflects the increase in silver equivalent ounces sold.

All-in sustaining cash costs in the second quarter were $11.70 per AgEq ounce(1) compared to $12.09 in the second quarter of 2013, a decrease of 3%.

Avino Mine Stockpiles

A total of 53,931 silver equivalent ounces(i) were produced using circuit 2 during the quarter compared to 39,412 during the second quarter of 2013, an increase of 37%.

Cash costs were $9.93 per Ag Eq ounce(1) during the quarter compared to $13.52 during the second quarter of 2013, a decrease of 27%.

All-in sustaining cash costs during the quarter were $13.56 per AgEq ounce(1) compared to $18.15 during the second quarter 2013, a decrease of 25%. The decrease in cash costs and all-in sustaining cash costs was primarily due to the increase in silver equivalent ounces sold.

Non-IFRS Measures

The financial results in this news release include references to cash flow per share, cash cost per silver equivalent ounce, and all-in sustaining cash cost per silver equivalent ounce, each of which are non-IFRS measures. Cash flow per share, cash cost per ounce, and all-in sustaining cash cost per ounce are measures developed by mining companies in an effort to provide a comparable standard of performance. However, there can be no assurance that our reporting of these non-IFRS measures is similar to that reported by other mining companies. Cash flow per share, cash cost per silver equivalent ounce, and all-in sustaining cash cost per silver equivalent ounce are measures used by the Company to manage and evaluate operating performance of the Company's mining operations, and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS, and are disclosed in addition to the prescribed IFRS measures provided in the Company's financial statements and MD&A.

Conference Call

Avino will be holding a conference call on Thursday, August 21, 2014 at 10 am PST (1 pm EST).

To participate in the conference call, please dial the following:

Toll Free Canada & USA: 1-800-319-4610

Outside of Canada & USA: 1-604-638-5340

No pass-code is necessary to participate in the conference call; participants will have the opportunity to ask questions during the Q&A portion of the call. Alternatively, participants can send questions via email to [email protected] on August 20, 2014, following the release of the financial results.

Participants should dial in 10 minutes prior to the conference.

The conference call will be recorded and the replay will be available on the Company's website within one hour following the conclusion of the call.

Outlook

Avino's mission is to create shareholder value through profitable organic growth at the historic Avino property near Durango, Mexico, and the strategic acquisition of mineral exploration and mining properties. We are committed to managing all business activities in an environmentally responsible and cost-effective manner, while contributing to the well-being of the communities in which we operate.

Management remains focused on the following key objectives:


1.  Maintain profitable mining operations while managing operating costs and
    improving efficiencies;
2.  Advance the Avino Mine for mineral production, expand mill output from
    500 to 1,500 TPD;
3.  Proceed with the acquisition of Bralorne Gold Mines Ltd. and integrate
    Bralorne's operations into Avino's corporate structure;
4.  Continue to explore regional targets on the Avino Property followed by
    other properties in our portfolio;
5.  Assess the potential for processing the oxide tailings resource from
    previous milling operations (PEA issued in 2012).

ON BEHALF OF THE BOARD

David Wolfin, President & CEO

Avino Silver & Gold Mines Ltd.

Safe Harbor Statement - This news release contains "forward-looking information" and "forward-looking statements" (together, the "forward looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including our belief as to the extent and timing of various studies including the PEA, and exploration results, the potential tonnage, grades and content of deposits, timing and establishment and extent of resource estimates. These forward-looking statements are made as of the date of this news release and the dates of technical reports, as applicable. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements.

Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold, silver and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking information. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreign countries; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers, directors or promoters with certain other projects; the absence of dividends; currency fluctuations; competition; dilution; the volatility of 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 the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...