Avino Silver & Gold Mines (ASM) 4 Mar 212020 Q4 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver & Gold Mines Ltd. Q4 and year-end 2020 financial results conference call and webcast.

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

Thank XXXX financial to conference call and Gold morning Ltd. results you webcast. Silver Mines year-end Avino & welcome and QX and operator. Good the everyone

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

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

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

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

Thanks results welcome XXXX for conference webcast. to and Thanks Avino's Jen. QX financial and Good joining us. year-end morning call everyone and

extend a financial will we dollars, marked can all statements XXXX unless call, put operating note health that entire team are it Carlos behind Canada performance our surrounding then presented ensure like learning, are please year we although to would MD&A of way united The we our available are team for communities. the year-end fourth U.S. authorities of company. new company our relieved plans of our to one in will and significant Rodriguez, by that and Before a I to our to discipline, the at we that tasks in stated and highlights our safety the was of open and otherwise be truly challenging and website. by up employees of XXXX a us now U.S. Mexico, for with as safety for and year am and of and questions. noted. responsibly stronger the it figures management and made quarter spanning and a out shared who the thank On challenges we patience special on XXXX teamwork proud full focus cooperated Please and pandemic and us, and mine note on the Mexico flexibility led culture I quickly the Mexican our financial the today's you critical were cover carried and the begin,

my year appreciation through went when for and strike the their experienced during patience extend the while the to to like our at and we entire shutdown would temporary I Lastly, mine. COVID to the shareholders due we support

and the labor delivered the reopen comprehensive over and the ratified. we October, government early to While being strike agreement ordered In Mexico of startup towards waiting the in be ended month, meantime, various so union in we supplies completed operations. may as we look been for the the offices are have last with evaluation

taking in place the XX, impacted three no mine XXXX. activities Our and fourth XX quarter week directly mining December months at operational performance the the by during resulted ended was strike

owned privately facility to storage forward we stage currently continued is quarter, is construction. final Avino commencing and land permitted with number prior and the proposed tailings the dry-stack two moving in on During is which the

its should and mill safety stability eight the for safety XXXX by solid project content. from water chose completed and QX during rate. an to add dry-stack on We additional current throughput the be to its expect and economic high environmental advantages This improves We tailings XX to tailings tailings. local removed with water this and capacity need reduces years significantly based of sources the recycling extract and from

which requires in smaller it footprint. addition, turn, less results land, In in environmental

that enough poor above the of provided good restart our process But receiving installed the of workforce we water communities. reservoir, proactive expanded and maintenance of pipes The happy providing benefits in water communities employment are mine. expected facilities and all, provide that direct provided the and been provide in production Durango of mining, the and have is employment services. significant PPE again. ambulance ensure ways, one streets years, Currently, and Over developing to the delivered and importance helped between and we so the we COVID including of the Avino and people we rapid steady to the economic new many and communities the have partnerships for network, people stimulus and equipment neighborhood maintained sports medical maintained tests of safety we may water the the activities are drinking and in local health roads, of to educated in surround the sports

So forward we looking to that. very much are

volatile, with prices reaching quarter, a January. price $XX.XX The prices continued be a have $,XXXX. February gold fourth a low of highest in close stayed prices to the and to high of $X,XXX third to quarter of early reaching ranged a gold and to the the the $X,XXX high early have but reached silver in from a low metal high silver ranged $XX.XX $XX.XX from During of

to few Over days, backed $X,XXX. and $XX the $XX and off last hovered around price silver highs has around from earlier gold

as vaccination third revenue price believe when makes many of we steadily and the dollar. our mentioning silver been it activities, copper It in growth be has low demand close worth on economy, it inventories stimulus production. our weaker great U.S. price favorite global of China, in demands rollout industrial to and going. continue As U.S. copper rebound has upwards also contribution shine. moving will as hope industrial applications, will up to gets is the of the anticipated by of global metals The that strong We of

are for set positive on XXXX. XXXX. now Our and to brighter Avino's sights and a Harte, the Officer, I results will year-end Financial Chief financial Nathan ask present QX

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

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

and at to the beginning $XX.X the million the at million, end compared $XX.X balance cash the year million of $X.X at XX year. of September was Our

million. of adjusted million $X.X $X.X million continuing $X.X to and of $X.X share taxes, were $X.X for Avino XXXX. year an mining compared in XXXX. of from losses million should $XXX,XXX sold earnings of includes to million, compared relating million losses of year earnings for non-cash million interest, operations $X.X net that in or During Avino net for generated from the received losses amortization QX Adjusted QX QX warrants proceeds per million XXXX were full $X.X $X.XX XXXX. in compared of when be Losses of $XXX,XXX, or per losses depreciation increase of quarter before the the QX to to mine $X.X operating ounces reported losses XXXX we fourth which million also silver operations revenues Avino of standby in share noted for of reported over million $X.XX for of XX,XXX. costs, of QX, includes which exercise equivalent after XXXX. taxes from It $X.X to and $X QX,

and fourth Due cash costs ounce of including is net which of $X.X XXXX, significantly ounces costs, costs, net The per cost were payable equivalent of cash sold per consolidated which standby cash $XX.XX million, silver costs all-in sold standby our all-in of of cash directly a sold, due $XX.XX is the the and for QX of standby compared production payable includes XXXX were costs, per silver costs, derived $XX.XX sustaining compared increased $XX.XX in year, production were was to action well number, The silver, year sold, for of silver $X severance costs, to associated for silver equivalent XX% operations $XX.XX Our the as payable $X.X compared full to ounce to operations from the year. from ounces Again, sustaining XX%. with costs million, resolution costs the increase standby were to of copper. during $X.X Revenues to the from the sold million strike in with $XX to XXXX. shutdown year the as temporary ounce expenditures certain compared and in from year were maintaining were XXXX. strike. Capital XX% the million Consolidated lower in XXXX. of ounce consolidated fewer quarter associated $XX.XX. equivalent payable a equivalent mining XX% the of pandemic gold million decrease standby throughout per full result QX

the storage strike XXXX. third includes the for action, expenditures unnecessary limit or full continued expenditures On quarters. specific year tailings administrative $XXX,XXX the to X% during and planned, or facility. XXXX, on its by capital necessary a took general projects the as compared and the new consolidated reduced fourth dry-stack which basis, With company to the company upgrades measures any All

Finally, the a I year and with strong exited balance reiterate Avino that to sheet. remains strong want financially

of bit David shaping and over XX,XXX investment exploration of is XX% announced With significant I debt what discussion the exciting meters. liquidity, reducing X plans Avino to in will drilling putting $XX the other maintained to We up phase initial on we exploration for the for the the work it looking to campaign strides year, of million recently have and to XXXX debt a forward drill as a back the kickoff now representing including for XXXX great of than at year our is less end our end we made in current be holdings. a Avino. at balance over cash hand our our for

Thank you Nathan.

the and the we are the churning include Our drills year first excited. plans are of for quarter

present started limited enhanced not during the to the opportunity. areas targeting vein of Avino these year already the Trompo Future is Santiago interpretations the meter vein, which on including exploration geological have targets if may drill and our Avino and may change We be priority areas vein. property program, XX,XXX several El three the areas targets other

Circuit the once We are increasing an to in of details to operations, vision dry-stack ready and the X demonstrates and through of increase mine tailings startup to the moving budget currently will on making our the a be working that maintaining Continue commitment mission, released improve project, program exploration on silver continue new to improvements recoveries for the the approved. equipment, longevity Avino's use values. gold with is

As together COVID-XX we to understanding. the respect prices. our working with remain the year, your and continued in and market keep potential positive with to across of XXrd diligent strengthening and thank we a forward We you of productive patience our efforts healthy. to employees for XXXX We commodity together and and enter look communities are the our our operations

a to We the are the Operator? usual. the business return future would and We portion. to to optimistic question-and-answer call move like for now as

Instructions]. [Operator

The go from Sekelsky Jake Alliance ahead. Please Partners. first is question from Global

and questions. my Thanks taking David team. Hi for

Jake. Hi

Jake. morning Good

for the give could with seeing the delays QX. or on also it curious Maybe TSF far on materials sourcing pandemic? if color you total X, you is construction And how key us you are I looks that there if and along labor timeline? for scheduled like Starting to are any due am any completion

has right Mexico, delivered presses two. schedule clearing Steel week on customs. There arrived It's no be delays within it should been underway. filter a is have in works now. probably whatsoever. The or

planned. as ahead moving is everything So

that to good the vein? on that focused X That's initial think Phase exploration, did will program is switching much seeing some how program And hear. start we you to when do of Okay. from gears the mentioned? results you And Santiago

I think Santiago. about there on X,XXX is, what, meters

of depending or six also Anywhere lab are El is on get second to drilling and think hole. another we results, meters. eight the we which third is to I from X,XXX weeks on how have Trompo, started the

it. that following Got up And a on bit.

QX? that see mentioned in potential You increase in that is think Is the there something for program. on we details you will

it see week. will next You

Got it.

back hop the Okay. I me. queue. in That's all Thanks for will Perfect. again.

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

Thanks question. Hi my guys. for taking

morning. Good

Hi.

seeing pretty With the results, It crazy exploration the good for almost quarter in a the are importantly costs please? general. you that a doing, follow-up. for during world for year you to probably and and drilling timing what with was Avino Just all are the assay

Heiko. Hi Nathan It's here.

I So increases. significant very I of side our will times we of don't a we drillers relationships few and Obviously, take Durango. local think with mentioned have we things. seeing the any cost drills are own have good

And so not increases even times. of we significant are any kind during seeing these unprecedented

As eight we send the weeks had far I them Dave assay mentioned, results, to as off. turnaround when think from six

and the will we month a back results. initial them hopefully get have some the we from to just So of on asses stuff in now then will

have you XXXX, Obviously, corporate January a cash of With been and February walk can you just assume mining, I from mostly QX, burn guess, right? at I of with the in far mine basis, frontline seeing what through the month, can site? just you on lack so expenses sort us

the fair. mine at right that's I and just and It's would No, really At say, maintaining underground. maintenance ET water care now the site, on. is expenses a of Yes. lot going not there

dollars a I month, about it's per probably, $XXX,XXX hundred would say. about couple So thousand yes,

fully Okay. you give the that how looking you then please? we your or Very be want just of lastly, will required spend much us money thing idea release, to as good. sort an running, And them efforts, and this startup expanses until you transitional called are to press at up is in

looking kind additional you expect to $X over long we start an in at expect. costs ramp-up that we to again, can are I And of about super that's million period. think million we Yes, $X.X don't Sure. what the only up. once But be

Thank That's Sure. than model. so much. what definitely had lower I my you in Excellent.

Heiko. Thanks

you. Thank

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

guys. Thanks taking for Good morning the questions.

Joe. Hi

Joe. morning Good

things. number But that it was to just additional guess add first anything of this couple sales drawdown. technically My QX. sales one year? we the I a or So inventory so QX in on should there we expect can is that assumption our were far is inventory

other just say, some inventory and Nathan would final was that here, some areas the cleaning tanks the it's up from I of drawdown, mine.

say some sold not But at no XXXX product I our this to would And partners so we of unless QX anything expect time. in. for I -- yes, would

And me if Any like you used then left color looks opportunistically And you can during anything, quarter ATM, guys enough. $X Fair what near your Okay. already, on the additional that pretty do guys have, give that? a on there? it something price. average you

wanted Sure, Yes. can Obviously, for, it you as that use or a we two. Joe. opportunistically day and so used we imagine, only to really

left We have million to $X on $X million of about it.

and under But So you backwards correctly on you now. have can events I math the we think do pointed we at as yes, just a share. out, spoken raised subsequent $X

at are levels fairly So now a capital. we and of that cost low significantly above at

valuation count Talisker what's shares. you On good cash a current great Talisker? Or still at other there. obviously sale made your many Have additional guys the there? share That's Okay. get in to investments,

$XX changed. It It about million. hasn't think it's

We it. have and four churning are sell more they four are no this adding to There plans drills spring.

drills will tow talk. working the between to expect it have the So X.X I CEO resource and Terry, ounces. to they eight churning are talked million they on

great. That's Okay.

hands. out But best the can for is kind scenario last worst that the ratified? what Obviously, and So us you think of we with getting union agreement thing. give your government the is Mexican case of realize new all you case

that is would dictating It's are open. see people here soft looking when agreement and hoping soon. pretty at But back that bringing happens. to COVID the are start is ratified But a tough we what one we office slowly because

time giving it Okay. comfortable But range not on yet? a

David tough That's mentioned, one. again, as a

within I think the striving best weeks case we what for. scenario, are coming and that's

to Our is mining stockpile. plan there build first to the and start underground get

Yes.

And we can do that.

that's what now. right planning we are for So

Yes.

All right. turn Thanks. will I over. it

Fitzgerald. go Please The Instructions]. next O'Keefe Matthew from from [Operator Cantor ahead. question is

my taking for Thanks morning. Good Yes. question.

morning. Good

Good morning Matt.

call. Thanks taking asked. already my good of A questions for lot

mentioned are question to last now. a the or okay back I want on just going One, that last, development do government? one you of of some Is that that get stockpiling things. the to to from So you I you the underground couple are circle from you Mexican think before just

to is a there. slowly create not of start and plan noise The lot

So lot not feel to we a generate of is going underground work from the union. interest

So -- that's

I see.

So that's a contract different your as operating group. group That's like opposed a to group?

we will that Employees local from the community. hire

see. I

just guess Okay. the And on then I startup.

that do be won't okay -- is get up to and matter associated or a to go, full once sort there cost take quarter of of you it to and some with is it the it you of a are would it full weeks get mentioned matter good a You throughput?

matter he things. We a it's of I Nathan time as the full is the more And think of of wouldn't here. well, quarter, and sure. here speak to Peter speak can of side cost a for line can

I as million period I mentioned want about touch over maybe timeline, cost. ramp-up in think to And to the far Peter, that? additional $X.X as million earlier $X you on

Yes. to here, weeks we I month. think once of a I the get going mean underground give we would be just couple us a it's really, going.

Okay.

anticipating also are mill. in the We automation

to more to many start that's So be There won't we automated. a need lot going as up the when we people is go mill.

positioned yes, sounds then, things of And once Okay. have well amount it and get got good like you going, you are cash.

exploration good some look to. got have to You

for mention thicker you the the side, lot those capital tailings On budget for the mill. of done capital What already that you XXXX? expenditure that? in is a have some of Did

Yes.

are we looking talked touched in previously prior But call in release, David as Matt. briefly and that. to it on obviously, think the that I news we the even mentioned increase

area essentially be will excited but also the on we to approved, the mine on the and that another side about much mostly some week. have increases additional talk actually automation hopefully next potentially exploration of We pretty got

around we closer I looking and up so think million think year. set at million And $X we now, right are per it had to $XX probably million $X at we to to

Okay. Thanks. $XX million, good. me. for right. All it That's

Looking forward XXXX. a better to

Thank you.

Matt. Thanks

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

you listen Thank year-end time and earnings took to call and to the XXXX webcast. QX everyone to our today that

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

better believe future, metals getting again the and will be we the vaccines for to and the meeting by look and be Canada by that fall look of U. Once to we good metals will More demand continue that forward a being with our the forward we safe and that we seems to everyone. approved organized, missed. the is something are As grow. S. all we favorite are Thanks that optimistic shine vaccines we rollout will to there each other face-to-face, optimism all Stay happens, day. have have of vaccinated XXXX. as

call. conference today's concludes This

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