Avino Silver & Gold Mines (ASM) 10 Nov 202020 Q3 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver & Gold Mines' Third Quarter Financial Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Investor turn Relations would to conference I North, Jennifer Manager. Instructions] like the to over [Operator Please go ahead.

Thank you, Silver Ltd. Avino welcome to Operator. Good morning, & everyone Gold and the Mines

Conference and Results Financial XXXX Quarter Webcast. Third Call

Wolfin; Carlos today we Peter Harte; company's CEO, Officer, On the our our Operating VP have Financial Officer, call Chief Chief Latta. and President the and David Rodriguez; our Services Nathan Technical

information please on team started, get note the forward-looking this may by we statements today that applicable Before made of management call the include securities within meaning certain laws.

not other information law. and those Forward-looking assume not results cause other applicable that subject The or implied to to intend to obligation statements forward by any does actual by expressed are unknown such than to known risks, the and such forward-looking than uncertainties required statements and statements. by factors does be as update or different materially looking may company

we later replay accompanying conference available information presentation Avino's to and conference David David? and I today. the information, CEO, Wolfin. to this more being yesterday's refer date. everyone will cautionary be Thank would our call details presentation will on and recorded the webcast press slides will you. website. over call Replay is of call the I for our turn available now President this that this For and on remind accompanying in release to the call like you be note or

XXXX Results Thanks joining for Thanks, Jen. and Webcast. and Good Conference us. Call Avino's everyone to Financial morning, welcome QX

all now then it available and otherwise are of today's stated our U.S. website. unless noted. that operating the the third that financial full quarter Before in figures up Please statements call, performance highlights we MD&A cover On financial note our note questions. open and begin, are of and dollars for we'll on XXXX we will please

due all stood to thank everyone we were during while difficult was Avino the patience understood closed for to appreciative and the the for strike. their and I'd the who Firstly, of mine by our through. quarter process third go was This like shareholders we support to and had especially

an evaluation like extended negotiate period who In successful management led of a inactivity and and milling the addition, a before strike resolution. Mexico can in and October Rodriguez, navigated by in and The working condition. to operations, gratitude of surface comprehensive to are at underground company underway is I to as mine all the Carlos team equipment due ensure restart early extend my would all excellent in to the ended

third operational the XX-week decrease resulted impacted performance directly production a which the for was Our quarter quarter. by strike Avino the at profile in action mine,

During September XX, the place. three ended took no mining XXXX, months activity

setting and program on our was pandemic during sights exploration to the the and look are delayed on the as We embarking commencing operations we XXXX forward strike. that

We metal to operations when will poised be to returned prices normal. capitalize on increased

in properties the to and rebranded During Mexico. of the Avino which construction. stimulus has Avino owned granted agreement purchase to warrants over the move or of Silver Wolf Avino's XX Canadian XXX,XXX is as in since The cash receive with to are in CADXX,XXX Gray forward the in total expected $X.XX a CADXXX,XXX is social details exclusive shares will the to exposure issuance to days or production of four maintaining local road first X. vitality prove activities. divesting acquire approval first the four Coronado TSF shares, is upside the is future currently we're Avino share the restart months; assets, has facility, to paved with to dry common storage important which In right concentrate which the Silver to period properties processing. interest Rock, limits exploration El extracted benefits for By activities production years, and receive communities. to in ore quarter, common land, aid Avino are Avino the in permanent proposed provide in Avino follows. for direct years. significant right to Exploration any of over it, combined of calling Maria the option stack the tailings with XX X Avino, cost Silver two on of purchase retaining on forward as in the a the Wolf of any number the and is the the approval; commencing shares and restarting through number may XXX,XXX be privately on forward the provide expenditures should process beneficial of construction government to of to of exploration these The to which company The to prior in move TSF looking Avino positive August, XXX% discussions incur support help between exchange Wolf warrants. and Laberinto of properties stage refusal economic Their the for which properties community at of Ana Pánuco final while community is to to state the continued and de properties Both from

but prices a financial price reaching in present sitting QX in slightly gold is a August and September. Chief [ph] has Officer gold silver will which high results close Nathan XXXX. During the the $X,XXX were have in now the backed price above for Anvino's silver $XX. off I ask gold Harte, of quarter, around to we a reached the Today high price stayed Financial $X,XXX to of the $XX.XX with second silver and quarter, and highest volatile, reaching

I joined pleasure doing would is be on the welcome who you, like is and today. my call Thank to presentation It our and David. has to everyone us

was $X Avino This reduce $XX.X further load million. up remains action by third XXXX, the with can XXXX quarter. you XX Avino compared the debt the to Avino's liabilities as continues mine. having and strike imagine, XX September plan Capital results said $XX.X $X.X million, financial mentioned at lowered debt total during strong end the XXXX. million at by million to impacted the the of reduction brings previously at of operating during debt that, for As $XX.X health Having its its June were at company Working million to its

Our million, cash balance at million the of end quarter up $X.X June $XX.X and XXXX. end was from of at the XX the $XX.X at million

on before XX% $X.X after revenues operations compared of compared proceeds During for to million XXX,XXX minor $X.X which Talisker XXXX, of $X.X compared in non-cash $X.X losses operating XXXX, unchanged when million, to well XXXX QX for in It QX, $X mining translates loss share QX million the we third QX remains QX QX in Losses million XXXX should to the which a $X.X Avino third $X.X of $X.X million, $XXX,XXX million. per $X.X quarter to also be from compared compared million exercise was warrants to include losses XXXX in Avino quarter, XXXX. $X.X unrealized for million resources well million were $X.X of QX of as of which the for of interest, continuing which to over of losses generated and losses down losses received as for reported of QX from noted to net adjusted operations to XXXX. to reported Avino to relating taxes, operations investments were the in taxes losses continuing depreciation and net XXXX. QX amortization XXXX. company's did compared that

$XX.XX compared remain consolidated cash stable costs third to $XX.XX fairly Our in at XXXX. quarter QX

when However, to costs our as sold additional silver $XXX,XXX XXXX. compared sustaining $XX.XX operations equivalent standby The $XX.XX [ph] to the of for with QX all-in of maintaining increase associated a costs result is fewer did ounces well during cash strike increase direct action. QX XXXX, as comparable during ounce

XX% XXXX silver, of mining $X.X Our million XX% gold QX derived from copper. in revenues from and from of were operations from XX%

expenditures $XXX,XXX, capital XXXX compared for Our XXXX. million QX to in $X.X QX of were

new any action, the quarter. dry measures upgrades company the limit during third facility specific projects planned, capital including tailings the stack on With have expenditures necessary continued All the and equipment. unnecessary as storage strike to took

I Finally, almost remains strongest years. sheet and that quarter four with financially the its Avino want strong third reiterate to balance exited in

XXXX. our uncertainties to advantage XX% hand $XX in it debt for With remainder including any significant and plans strong moving and of million less into liquidity, our holdings. strides for made take reducing the of current market our over our is Avino market will debt than of ready balance, confident I cash have We the discussion David on currently metals over for representing now XXXX. to maintain investment that in I'm

Thank you, Nathan.

defining targets within the the operations; normal but and independent and our comprehensive our for the Avino to five, activities patience particularly with Our a evaluation structural building ensure forward are understanding can. levels we quarter rounding we exist soon I quarters veins the plans the continuing evaluation connection the of two, three, of interpretation one, on team; for before at year four, provide ramp forward include: between underground in property; move the of at controls exploration structural the the with better mine to resume last want The property. as your corner. dozens We mine; shareholders site and operations that the challenging, thank the final new focus to look exploration resuming on of have and understanding. been we two that hasn't as And you changed up

as business another And are dedication, Canada Operator? future I Mexico the We say usual. their to for you would to the work move to question-and-answer to and finally, the now and return contributions. thank would portion. We for like to to call like teams in optimistic and hard

you. Thank

now go Jake Instructions] [Operator We Alliance Sekelsky the Please ahead. will first Global begin comes from question question-and-answer session. from The Partners.

for guys. taking question. Hey, my Thanks

Jake. morning, Good

color have to year? something and TSF#X, expect you by timeline any still Is give completed it Just on us you looking are to additional at the budget early there? able next

you timeline? talk do to the about Pete, want

to pass to TSF#X going as be about yes. I'll year. next manage budget. Yes as with the talk well it of in that the then Sure, TSF#X to going Nathan construction we it's And amount have ongoing We're of to pit. space the open over

construct as along can we're going as So we proceed to project. that fast

on from labor foundations, we're we're expecting just and it then build Yes on budget be as by expecting another make million year. come bit to site. and well materials for $X workouts we rest equipment sizable of involved, already lot the and everything total dozing in the end about of as as of payments perspective, larger some a costs encompassing. Jake, And paid a all will the a We've the around

will [indiscernible] be on XX. the And ready December pickup for

to So put we're it on going Mexico. freighter to

have work Durango. we'll by construction year possibly in it has January. And steel commenced in end So or

is underway. Yes, the steel construction

And a next going that's heading year. helpful. something just like that's be that's seems exploration. into to It priority then Okay, on the top

You exploration mentioned, up you're David, building the team.

on when budget? see some update any year's next have on we should program So and expect you do to details

in had mid-December. of disclose for December, a depending just now. the our We're meters, to what But on more, XX,XXX Yes, We'll budgeted that this targets. we possibly year. minimum it's budgets. going be over going

Thanks. on Fair enough. from I'll That's in my hop all back the end. queue.

Thanks, Jake.

next Please Wainwright. comes Heiko go H.C. question from Ihle ahead. The from

Thanks guys. Hey, my for questions. taking

Good morning, Heiko.

bit Just on filling had what said. Jake a

your TSF. on You're Can secure little on dollar sort you lead just left talking is bit the deposits for long in items on And a how what about which the equipment? much more give both color terms? of

the… to Pete, want you talk about

the presses. the Yes, be filter component main to sure. stack going process, Dry is

we've So payment down those that are put the on. a already things

you climactic the And structure, conditions components those an we the Regarding would just main the and building, that's then into know And the essentially. there's as conveyors. be those of three three if things. that's lump building just open-air in Mexico, steel because

with the and filter steel that the said, a I Or question? your on we've want So budget? incurring we started placed purchased deposit press started as on to do haven't specific converse. the details more Does we've yet you on that, and costs the yet answer structure, respect

willing if more Well, color, great. to that'd provide be you're

Nathan Yes, of Heiko, here. I provide it's color. a bit can

about. the construction the conveyors range I a with mentioned, as then be labor responding remaining So to press will and come over out associated and The round million. million $X Jake, I it other talked of just the steel million. And somewhere to $X.X $X million we'll $X filter million spoke that the to we in pieces, in all in,

You measures if I are savings forward looking travel. lack than less hinted it [ph]. the got cost assume your that squeeze other But the any something. at you a down of so, part is $XXX,XXX I in think And do G&A that you it going of until much and out? you into you being? know can you And release is what did how good

if especially efforts, many take DNA quarter, in $X XXXX million to after one. higher, I'll lot reduce in a down Heiko, quarters. made close I'll sure, a Yeah, We that and of from not in our to XXXX

on quarterly look same that for, out again be incurred there's that time, for improvements at travel, a lot months, a Avino. third, fourth, few and down a the are took we're going few you to we so some see need the time, try virtual this Yes, but do but hard to can and and squeeze them us students everything message course, still do quarter. still can a a we lots marketing of the at marketing Obviously, about and additional to professional And getting made incurred need looking the fifth conferences basis. of understand we've there. more we for presentations and what lot a of we more with And ones doing fees but being out there to efforts virtual more yes, other be we're

of in related it's And big for working I still that model. in Bralorne will But it settlement and purely had to MD&A, from and a this you your a loss noticed out -- make items. capital curiosity obviously discontinued of a ops says my small difference

the related sure, thing thing other Bralorne. what's in there any making last to to Is the come? coming Just quarters

there's No, But like couple little a That final just settlements and more was QX. in coming. in movements, that's movements some it. QX nothing

helpful. That's what I Thank guys. Very thought. you,

Heiko. you Thank

The go Joseph from next Reagor ROTH question Please Capital comes Partners. ahead. from

questions. Hey, Thanks for guys. taking the

Joe. Hey

and-a-half? on to on the I willing and time year. like give to as wanted specific we be most there's you production? should guys one It that this getting touched So as but you back I you're think of month Do A and has to full restart. the guess rates look frame get production to some of sound next been strike expecting had a didn't full you already what were does to looking for forward What going month about quarter. tone ask What operations like? for far

planning not We're to restart.

until negotiations Pánuco with So year unless next quickly. the very go

this at Start look year. January. don't So at

And then swing cash restart question -- Okay. probably the be you when a what -- basis? guys on would working for a do think you do capital Nathan

question. good Jeff, Hey,

costs there's activities. of able think be operating we So going we'll to sooner will million. milling couple startup be some we a start to underground Obviously, activities additional than

sold buyers. mining our So mail be and lag underground, a getting will there [indiscernible] to from then off

or say So I think month if a and month and-a-half about lag. I were you, a a to a month I lag half would

the So paid couple maybe we'll costs in incur say, a until, million days for that get down we XX road. won't

want some liquidity and balance highlight One of the we things at low do is this we sheet debt to and a have time. very decent fairly strong

take we'll not So pretty feeling our to through that a able confident hit massive and be we're balance sheet. go to

helpful. It's thanks. Okay,

you. Thank

Cantor question ahead. O'Keefe from next Please from The comes Matthew Fitzgerald. go

I sort running. weeks on down, shorter, three up operator. it which two and was know Thanks, of Yes, was What's shut because the Reagor's after startup. Good lot the like just you're delay follow or morning. there, to and getting comments restarted again, in COVID the a

it's and the wondering this else this if Just why time, impact tailings? require development that don't time other can we longer things anything there's be you doing an that or taking on had at

and and Sure, we to to closure, opposed on during to the a tailings. best there Coronado. we've will. decided and the development and the time the are had that to underground the the that few start work. strike this traditional We're There negotiate is with the the in code year people pandemic townspeople hoping is before underground the But over get start new

blessing had get on not started construction interrupted, and of ago to helping ago, us we've while then years that were educate couple so with probably a proceed we So them office got because and some a their there we're to Governor's the issues.

that So tailings want areas but have on anymore. to to to don't found other put full we we to We construction want problem go TSF#X.

hoping weeks we're So here. their of next couple blessing in to get the

already. mentioned you if apologize I And Okay. this

now, limited capacity? tailings guessing? I'm the what's right So of it's that Outside then, quite

four to. don't a we pit, over but the of or there's about in probably build maybe probably it in [indiscernible] be want quarter, expanded, and there's really months four open and TSF#X, just another could Yes, or month's three then a could quarter, capacity. We capacity three or

So start construction, blessing the to on getting nail to once we're timing we're up social milling time and we going the down going then when activities.

we're So be all this shortly. hoping that will done very

Okay, just connecting was switching on two development. then great. of the one portals. I a And the know things gears bit on the the

your of throughput. timing until development able you So that get to improve what sort get your be the on you'd to completed? will rates until that? mining What's limited be you And

you to get you can on link are level want will long you when take line? we it Carlos, six? up the Hey nine level to think and Do how mention to

Yes. Sure, your you, David. for here. Matthew, question. Carlos Thank

few discussed mentioned for we XXX connect this we allowed So portals. But aren't have have the we yes, quarters. connection last both before, [ph] meters to as

So, it from will and mining -- We operators start equipment get there five something just to jumbo and the six job. all to the the complete months everything. take rehire miners and

So complete portal. five say the job months would I to five months,

Okay, of where to completed? and go your to throughput, after you throughput be get until what's that to that's then kind you expect And completed? limited do your going

day. also at Yes, the Yes, the a in for new discussed capacity have we we pounds moment, had past. this per X,XXX

I can per easily X,XXX, think, So X,XXX, we XXXX reach pounds day.

surface. booster So on how [indiscernible]

by So that. that I we think cover will

Okay.

bit Okay. was requirement much. ahead trying Thanks fine. No, a just very I as look to a little that's here model.

comes Instructions] go ahead. from private [Operator a Please Bruce The investor. question you. next Thank [ph], Shapiro

was itself. strike taking thank the my morning, of I'm what answered my were what commencement call. curious questions operations to for and settle you was But Can for strike? given you were the of asked Most Good discuss about prior.

more local year but mines laying -- -- and labor We and we're that disclosed, because and close not started making people then the XX A moved live we we not to mine we but [indiscernible] that's kept off concessions finalized with being those financial, last threat operational made the over couldn't which the made some Well, we now. when strike then settlement vino is a workers. so they demands leaders and struck half

the the that? any concern connected coronavirus way you. and strike with Thank Was in about

No.

Thank right. you. All

Thank you.

to This over the David session. Mr. would any and the answer concludes to back remarks. like conference I Wolfin for question closing turn

today to took Earnings you time Webcast. to the QX our Thank everyone listen to Call that and

our As forward I normal we appreciate we patience look the soon to and resuming operations as earlier, stakeholders of we said as can. all

a look optimistic are future, we rise As to Avino and towards grow. a demand we the we has believe continue its that continue lean surviving expand knowing prolific that times, initiative and and targets metals by for large mine multiple to metal fostered right reduction its resiliency that exploration history will XX-year over improve implementing Further, enterprise to will operations. producing prices position the land cost when in will a with needed the initiatives having and time the area

are hope that shows COVID. everyone said We bringing that that Pfizer We to safe vaccine data healthy staying shareholders. during be is their value early just yesterday And XX% effective. our and committed to to

that Thanks everyone, the proving good that start world the around vaccines again, same. So have and we case, the a hope more this is will day.

call. conclude This you. conference today's Thank

have may You participating your and Thank a for pleasant day. disconnect lines. you