AVINO REPORTS Q1 2022 FINANCIAL RESULTS
Generates Record Quarterly Revenue and Mine Operating Income
"We are very pleased with the strong start to the year, highlighted by record revenues and mine operating income," said
- Record revenues and mine operating income, with revenues of
$11.1 million and mine operating income of$4.7 million , earnings per share of$0.01 and operating cash flow generated (pre-working capital adjustments) per share of$0.03 .
- On
March 21, 2022 , the Company announced that it has closed the acquisition with Coeur to acquire the La Preciosa silver project, which is located adjacent to theAvino Mine in the state ofDurango, Mexico , for upfront consideration of$29.7 million , consisting of$15.3 million cash and the remaining in equity on closing, and$5 million due within 12 months of closing. Further contingent consideration including cash, royalties and a mineral reserve discovery payment.
- On
March 9, 2022 , the Company announced drill results from the La Potosina area of the Avino property, including 668 g/t AgEq over 2.95 metres. These results are following up on historic results from 2011, which included 2,737 g/t AgEq over 0.40 metres.
- With the release of the results from the 110 drill-hole program, the Company is moving forward with a comprehensive metallurgical testwork program to progress this project to the next phase of development.
- The Company's cash balance at
March 31, 2022 , totaled$11.7 million compared to$24.8 million atDecember 31, 2021 . Working capital totaled$14.5 million atMarch 31, 2022 , compared to$31.6 million atDecember 31, 2021 . Both of these figures have increased on a net basis following the upfront consideration payment of$15.3 million and addition of$5 million note payable to Coeur for the acquisition La Preciosa.
- Record revenues of
$11.1 million - Record mine operating income of
$4.7 million ,$5.2 million net of non-cash depreciation and depletion - Net income of
$0.6 million , or$0.01 per share - Cash costs per silver equivalent payable ounce sold1 -
$11.81 per ounce - All in sustaining cash cost per silver equivalent payable ounce sold1 -
$19.90 per ounce - Earnings before interest, taxes, depreciation and amortization ("EBITDA")1 of
$2.8 million - Adjusted earnings1 of
$3.4 million , or$0.03 per share - Operating cash flows (before working capital changes) of
$3.7 million , or$0.03 per share1
HIGHLIGHTS (Expressed in 000's of US$) | First Quarter 2022 | First Quarter 2021 |
Change
| First | Fourth | Change | ||||
Financial Operating Performance | ||||||||||
Revenues | $ | 11,050 | $ | 29 | -% | $ | 11,050 | $ | 9,318 | 19% |
Mine operating income (loss) | $ | 4,744 | $ | (680) | 798% | $ | 4,744 | $ | 4,406 | 8% |
Net income (loss) | $ | 646 | $ | (1,818) | 136% | $ | 646 | $ | 2,629 | -75% |
Earnings (losses) before interest, taxes and amortization ("EBITDA")1 | $ | 2,777 | $ | (1,740) | 260% | $ | 2,777 | $ | 4,821 | -42% |
Adjusted earnings (losses)1 | $ | 3,350 | $ | (944) | 455% | $ | 3,350 | $ | 4,746 | -29% |
Cash flow from operations before working capital changes | $ | 3,652 | $ | (1,093) | 434% | $ | 3,652 | $ | 4,020 | -9% |
Per Share Amounts (diluted) | ||||||||||
Earnings (loss) per share | $ | 0.01 | $ | (0.02) | 150% | $ | 0.01 | $ | 0.03 | -67% |
Adjusted earnings (loss)1 per share | $ | 0.03 | $ | (0.01) | 400% | $ | 0.03 | $ | 0.05 | -40% |
Cash flow per share1 | $ | 0.03 | $ | (0.01) | 400% | $ | 0.03 | $ | 0.04 | -25% |
HIGHLIGHTS (Expressed in 000's of US$) |
|
| Change |
|
December 31, 2021 | Change | ||||
Liquidity & Working Capital | ||||||||||
Cash | $ | 11,686 | $ | 27,030 | -57% | $ | 11,686 | $ | 24,765 | -53% |
Working capital | $ | 14,528 | $ | 31,220 | -53% | $ | 14,528 | $ | 31,635 | -54% |
1. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted |
Cash capital expenditures company-wide for the first quarter 2022 were
HIGHLIGHTS (Expressed in US$) | First Quarter 2022 | First Quarter 2021 |
Change | First Quarter 2022 | Fourth |
Change1 | ||||
Operating | ||||||||||
Tonnes Milled | 111,138 | - | 100% | 111,138 | 103,513 | 7% | ||||
Silver Ounces Produced | 164,358 | - | 100% | 164,358 | 163,933 | -% | ||||
Gold Ounces Produced | 801 | - | 100% | 801 | 2,158 | -63% | ||||
Copper Pounds Produced | 1,217,349 | - | 100% | 1,217,349 | 1,128,728 | 8% | ||||
Silver Equivalent Ounces1 Produced | 457,798 | - | 100% | 457,798 | 541,432 | -15% | ||||
Concentrate Sales and Cash Costs | ||||||||||
Silver Equivalent Payable Ounces Sold2 | 495,109 | - | 100% | 495,109 | 417,881 | 18% | ||||
Cash Cost per Silver Equivalent Payable Ounce1,2,3 | $ | 11.81 | $ | - | 100% | $ | 11.81 | $ | 9.57 | 23% |
All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2,3 | $ | 19.90 | $ | - | 100% | $ | 19.90 | $ | 17.24 | 15% |
1. In Q1 2022, AgEq was calculated using metals prices of | |
2. "Silver equivalent payable ounces sold" for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period. | |
3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce and all-in sustaining cash cost per payable ounce. 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 measures. See Non-IFRS Measures section of the MD&A for further information and detailed reconciliations.
|
During Q1 2022, underground mining operations continued to ramp up with consolidation production for the quarter of 457,798 silver equivalent ounces consisting of 164,358 ounces of silver, 801 ounces of gold, and 1,217,349 pounds of copper.
Underground mining operations are now hauling between 1,400 and 1,900 tpd to surface on a daily basis, with the mill operating at a similar capacity. The Company is working towards achieving nameplate capacity of 2,500 tpd.
The Company has budgeted 15,000 metres of drilling in 2022, with a focus on La Potosina, at depths below the current
During the quarter, the Company announced drill results from Phase 2 of the 2021 drill campaign which included over 15,500 metres of drilling focusing on several targets.
The initial results from La Potosina were announced in early March and included 2,400 metres of drilling. This area of the Avino property has been known to host high-grade, low suphidation style mineralization similar to our San Gonzalo mine. The La Potosina area is only 3 kms from the
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, EBITDA, and adjusted earnings/losses, all of which are non-IFRS measures. These measures are 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 MD&A.
In addition, the Company will be holding a conference call and webcast on
Outside of
About Avino
Avino is primarily a silver producer from its wholly owned
"David Wolfin"
________________________________
President & CEO
This news release contains "forward-looking information" and "forward-looking statements" (together, the "forward looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including the amended mineral resource estimate for the Company's Avino Property located near Durango in west-central
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"). Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures reported by other companies. We believe that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Readers should also refer to our management's discussion and analysis available under our corporate profile at www.sedar.com or on our website at www.avino.com.
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