Avino Silver & Gold Mines (ASM) 12 Aug 212021 Q2 Earnings call transcript

This is the conference operator. Welcome to the Avino Silver & Gold Mines Second Quarter 2021 Conference Call and Webcast. [Operator Instructions]. I would now like to turn the conference over to Jennifer North, Manager of Investor Relations. Please go ahead.

operator. you, Thank and Mines everyone, and the Silver Avino Good QX welcome XXXX Gold Limited Call Financial & morning, to Results Webcast. Conference

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

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

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

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

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

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

operations. quarter, at that allow activities resume we the the necessary focused would During us the site mine to second on work and

excellent the and progress first hiring made which reestablishing facilities. circuits equipment, at we the cleanup to announced preparations addition, during exploration of the to workers, of mine program, recoveries grounds were including restart improve was multiple in mill testing In Prior or our the mill, quarter of operations, year. and upgrades the this ongoing,

high-grade In an addition, our within considerable exploration continuity the vein company's the the milling of from which in vein, adjacent has complex. test are areas of mining. for for an program El is there announced vein, drilling feeder surface drill mineralization to over which been widths veins which has the and allow vein Avino We the were target offshoot underground is results priority initial of Historically, infrastructure one had a yielded which Trompo on there results, July. of data Drilling from depth. that and indicates been vein, the would access at confirm to

historically continuity high We also Avino San being tested. and in an north is between in mineralization. X is Gonzalo average the grade X width had receivables from mineralization area vein mineralization of Gonzalo the further similar intersect to Santiago narrow with mining Santiago that of vein, of the in vein the the gold and veins meters which The silver San district

results of low the a Northwestern received These The mineralization San represent termination remains to the XXX and has dislocated the meters may XX shown Gonzalo Malinche and in Gonzalo as La we extend depth strike vein. the prospective. San the XXX-meter from vein The style intersected to San material vein between mineralized the La the distance of Malinche the vein surface. are vein. the addition, results meters La Gonzalo presence In vein of of from Northwest encouraging vein. been resembles of gap along Malinche epithermal The fault sulfatization extension

tailings oxide XX within drilled facility, the drilling were have the our holes #X, tailings which by holes call - infill resource currently of planned, TSF it. end of are storage that XXX were we sits We QX.

find the were although and to that Senora take extremely week, last at for. announced positive Jorge were were Last mine. few In months. addition we are San the areas these in over necessary steps have have order outcome drilling, to X pleased we resuming had to times, that been necessary all veins. waiting also have that seen Nuestra we And this of We may testing at arduous the to operations have the

and mine, global During and Touch ounces silver, silver quickly. according production: higher the of will by XX,XXX functional and following coins. will the And to in totaling They the identification The displays, continue up that resulted radio a begin price some the safe the communication, We XX XXXX, At XX,XXX use to expanding XG in the mine, measures silver copper and environment. silver treatment, investment-grade frequency water silver, pounds and any they restarting mill, ounces solar testing to quarter, RFID, is years. is of billion forced silver. demand, by which are of the bars expansion activities produced, in mining operations new markets maintaining work at was oxide in health technology. high-performance industry, silver ounces of dedicated X and pharmaceutical equivalent. positive. their According expandable produced, and flexible be are industrial take of the we devices, nanotechnology, of of highest the believe Midas for of to to we will we i.e., produced, engines, X,XXX there outlook the safety Consulting, see clothing in applications as investments batteries, X.XXX in operate Avino be which ounces gold we expanding continue led the uses the included physical precautionary to all to families silver the silver rise in for Silver Institute and communities workforce, paramount,

the is companies the heavy our needed. be dry country presses own And Mexico filter quarter during across in the excellent budgets. of from TSF been on Avino into increasing privately permitted drill building will we currently on rise of it, is land was was or the that construction. is Also are storage the with stage which various stack for XXXX unseasonably to thousands our then will we tailings quarter. owned QX slightly the expectation project the house across final the activities concrete quarter, XXXX completed commencing in continue and have of first due is that the the and as rainfall. same with make to exploration to program fourth pushed well, planned prior #X, facility, foundations hundreds with announced the for Avino increased As And in progress mining The meters call the poured

for As It chose throughput economic by add current tailings I land. form dry additional stack it reduces the rate. XX to advantages. environmentally stack X capacity stable should safety mentioned before, reduces mill an years water and and consumption We of less of requiring Dry have tailings on the storage. based its tailings footprint the most is storage

ESG and of as incorporate principles continue responsibility. we Our to forward social our sustainability initiatives move

includes multiple quarter, a as who of work well policies the health social areas second which and the detect as plan, inspects site safety health possible During our on and workers. were risk to different department any new implemented, medical doctor to governance

Avino's way in our Financial fact in will growing supports the certainly needed Chief We now that benefit the and the Nathan for ask the well-being metals going environment Officer, forward. that that Harte, the to the we believe we results a operate. present I mine will in financial sustainable of communities our XXXX. push are green a which towards economy committed We shareholders QX to

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

As exited mine. imagine, at of were extremely Avino's by impacted second the that, an in you financial can strong Having financial quarter Avino lack we said production position. the results

Our over cash beginning to the end a million at the increase represents $XX compared balance year, to was was the million, year. of XXX%. of an million Working end $XX.X $XX represents beginning at the quarter increase the when of compared the million significant which which at $XX.X quarter at of capital

Avino year, and usual million, first we just be the the to June liabilities brings to $X.X report for are $X happy year-to-date total continued and XXXX payables during significant the further forward. We allow maintain debt flexibility million with that end by under financial debt the by to of debt to we expect XXXX. This a XXXX. than the our of will reduce XX, plans lowered to free This having leases other beginning reduction of QX half the moving since equipment debt

were for million net after up ounces includes for amortization $X.XX $X.X million Losses quarter, of per $X.X or $XXX,XXX costs XXXX of losses and the foreign expenditures first QX in $XXX,XXX in and reported of from and depreciation compared the share QX, as exchange the relating is million. During were to in QX second Adjusted and related which $X Avino X million and mine million of and to loss which Avino losses the during of compared adjusted before of were operating the received quarter, care XXXX. $XXX,XXX to revenues were in in movements proceeds months noncash sold. We million earnings for of the such, XXXX. of exercise equivalent which from maintenance warrants losses year $X.X $X $XXX,XXX no generated realized losses on around to the silver second Capital taxes, $XXX,XXX QX standby reported of $X taxes were quarter. operations made no of $XXX,XXX for depletion. continuing interest, depreciation

with coming tailings facility. activities, as expenditures than the action, limit includes expect new February. ongoing year have With storage to continue well on forward increase as We specific over stack All have as the exploration and tailing projects and to planned, do which upgrades for capital the of will measures ramped first as the the expenditures company the necessary took the during quarters. we increased upgrades. the the half strike since continued move exploration dry capital exploration other unnecessary up which

the to position. Finally, of want Avino's reiterate financial I strength

cash we with plans we shareholders end exploration debt our liquidity, the debt. the for We liabilities over Avino add continued our our what at XXXX. for quarter, holdings. as our David for value $XX now maintained of Xx the a the discussion year. at and With well in of our the back And over in representing the it over the plans hand quarter, with to our continuing stakeholders are will has reducing of rest of planned including investment I to end as rest throughout on million

at The drilled. XXX La program vein, vein, and the oxide the To targeting at of Trompo vein, Trompo at Avino drilling vein, at property, San XXX the X,XXX vein, is follows: X,XXX the Thank Malinche El the at meters tailings. The meters meters meters Senora at X,XXX at ongoing have is several meters the the Jorge and vein, been vein. X,XXX XXX Santiago you, including exploration Neustra El Nathan. breakdown Avino the of meters Santiago vein X,XXX vein, the areas the the meters the meters as is date,

the We X looking been shutdown. we already are to to production recoveries are well the on is are The erected keep levels we that currently main ramp project for up and be long with the to having use stack closer the received. the to equipment. lead with the to concrete going getting is waiting poured. ongoing now, ongoing and is be prior exploration Hiring of site Avino Circuit new that mine the prefab tailings mine as the had gold operating Improvements workers silver next will for focus at with building quarter are through assays to items to and at amount improve at forward the moving of activities ensure soon program. to dry additional we mine

We locating the zones mineralization mineralized are property of focused confirming within and current area. on in new Avino continuity the production ET

make to and that communities group, in employees priority, we all Mexico to to best the collaborate are and our health of and our always widest and analyze top the is Finally, situations the and continue beneficial decisions the stakeholders. most including Vancouver together safety

further As the in Monday, opening the and Americans community international of Canadian starting opened be this border up land will to September. to past fully vaccinated

more we So us. productive progress QX, pandemic we remaining like the portion. forward to is as were and even put with great to move look question-and-answer call We step Operator? the the to and this forward look would to pleased We in the we quarter behind now XXXX. made a third an

[Operator Instructions].

from first Wainright. Heiko with The H.C. question comes Ihle

okay? me hear you Can

Yes.

news. Good

- August Xrd. operations know we so on You started

week guess production you recovery bit the how a sites? at cash your over current the so that level you the just the domain. money into on trajectory could then want cash - So and rate And you see just is with days? public you all a over we're on in building be any Can a September? and last production that, go throughput, just of XX was kind, in the of much site to venture maybe of the And at spent remainder idea month how if

Okay. that Go turn VP ahead, I'm to Services, about the cash to Peter going and of to Latta, Nathan Pete. portion. Technical talk

Heiko, are just and of ramping kind up. we're back the so initial Thanks getting reports we week, so much, just from David. Yes, this

of can looking mean, I what I give answer So or numbers are you kind you? for specific

enough more for It's you bold asked can specific to numbers, I than for, I ask If do but will wasn't it. be wonderful. that

that So specific if numbers, be have amazing. would you

No.

mean day. tonnes I right about we're at now per So X,XXX

we're to up to that mark. X,XXX So pre-COVID, wrap to is what which around looking and - the X,XXX was

Okay.

sort And trajectory for key that ramp-up? so what's of

We're that of do hoping in to the August. month

the through All that's just you not are or surprise there's so as extremely the how looking are then in helpful. pre-COVID get Perfect. but was Is are sufficient Or grades, by yes, there bit? way, to anything veins? high-grading grass less, then, like still you much more a that's much well? trying And us? all, cash Or - And time.

area, updated. the not following in sequence I high but the grading And planned schedule out and plan and because are high-grade any quite No. good, to last We top. basically But that's that's or laid year, of grades more happen bottom we're to be that mean, can talk a mine a type the anything. just doing we're going is a that about following We're was you're from just we if sequence. interested.

it a guess really was us. helps Yes, just that's I a it. and and certainly thing. then Nate investors Got detailed, Perfect. cash That extremely question. and it think I helps

here. Nathan Yes,

back in bit before obviously, there a come of up we lag in. So we wasn't addition, ramp revenues as see

of they're we I that have definitely So but those we'll $X bringing do paid soon. fairly would will quickly, where on couple million sales an - probably say in there recoup that in we and additional getting up spent about August

And sheet talking bit. Great. talking ever about present follow-up really is a I say loud Nate. just a stronger little for just I mean your And balance XXXX. it's I'm then when little thinking I'm at out than now, been.

capital, Looking disclose compared for and before willing even? or in ahead would much a again, as thought cash XXXX bit you you're minimum to minimum as a to considerations change cetera, working here, have what balance, et have your

that's a No, question. fair

it our is I it right is think very and - or now, there. highly balance like we about sheet think of where to keep obviously, we'd view

XX I a our is mean, I the question, So up - cash or same yes work we yes, say, ago. sure make to probably to gone would time, that our guess, sort to company based want has the where our we're on was XX But now cash shareholders. bit answer I it balance of just putting minimum versus months the for where at

Fitzgerald. from with The O'Keefe next comes question Matthew Cantor

Great the to you you've production. programs of some see got other on, in well. the On exploration back is going going that

to expected the is the expected by tailings is completed of project, year? When - to end be that that On be when the that dry is stack completed?

completed the this But but expected Yes, there shooting delays of the has year. be next heavy to rainfall. It's year. we're of could is QX it end end be some by the of been possible for because the year,

working And that on of also can talk there? on? other front, - Okay. development the more plan you so, what's the If that? there mill And Great. about improvements mine you're sort any then are

Peter that. Latta mine and Go I'll He what's Sure. mill about on let can take Pete. development. talk going the the in ahead,

should project at at and which looking are projects some recovery few We're and for we of We've completed. that's Yes, an in Matthew. sure. of off, central DCS some fantastic, talk types lot happy looking variety added in reduce more detail, our We're projects at about is kind the a is to tie been both different offline. automation improve I'm together recoveries. also which a a Thanks, kind which modernize system, and of just costs looking hopefully to automation increase efficiency. to with and everything a good maybe of additional kicked different And help we've equipment, try that those mill of

for - good there's still increased allow Okay. to No, that's there there development Is are correct? capacity? the that to within And mine, some know.

Yes. do That's it That's meters development about up And XX,XX per for that tonne XXX before year. were And last to to do per And us of that underground day sits I that to talking That's development. we tonnes And extra. from underground up traffic. limit. saw down time pre-COVID ended that make done. day kind need development we before required talked about was last what X,XXX bring X,XXX we we work shutting of of that we at the something to about that one-way to think that that

you will And would to or the be line to - now? get time that pick So up increase? that what up

look workers bringing see throughput. Carlos Yes. goes. the the we're to mine to going up [indiscernible] I how pre-COVID project. more is that can the first, making we at throughput mean busy get and the And back underground then sure underground we'll ramp-up

Okay.

That's Okay. good.

equipment We larger awarded some and SCOOP trams. new underground

[Operator Instructions].

Jake from Global Next question Partners. with comes Alliance Sekelsky

shouldn't all or does And it production? timing look pushed see any fairly guys Just a on like if comfortable now? at one was to capacity TSF on And we of any that like quick there that. in early you What more QX existing are it #X, sounds the sort delays, interruption are XXXX.

the capacity open pit. still in There's Yes.

left #X also it increase then and there. that's another could we impact and the in capacity putting there. the in be wanted drilling going of TSF capacity we barriers to fine TSF on which consider So some then But if should at more we have there. And won't rate, some could option, we have yes, current #X, size safety

and see interruption between now don't completed. we any TSF So #X getting

good. That's Okay.

flexibility end. have definitely all you you that some if - So my was get from

question-and-answer concludes for closing conference Instructions]. like to [Operator turn back to I This remarks. the the over presenters would session. the any

patience excited looking for Avino. all day. you, and production to and that today. Thank a listening, of to operations XXXX support. everyone, for We time We're Thanks for again our up now and the appreciate resumed. have remainder We're ramping stakeholders' have listen taking forward for the of great

This concludes today's call. conference

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