Avino Has Increases In Mine Operating Income In First Quarter

VANCOUVER - Avino Silver & Gold Mines Ltd. President and CEO, David Wolfin, said, “The Company had a strong first quarter that included a 10% increase in silver equivalent payable ounces sold, a 6% increase in revenues and a significant increase in mine operating income compared to Q1 2019. We were also able to transition to full production from the Avino mine, in keeping with our scheduled mine plan. We have, as previously announced, placed the mine on care and maintenance, and are following the Mexican Government’s order to temporarily suspend operations. We look forward to bringing the Avino mine back into production when it is safe to do so. Above all, the health and wellness of our employees, stakeholders, and shareholders globally is our top priority, and we are working on back-to-work plans that we will be able to implement as soon as we are given the all-clear by both the Mexican and Canadian Governments.

In Q1, 2020, AgEq was calculated using metals prices of $16.94 oz Ag, $1,584 oz Au and $2.56 lb Cu. In Q1, 2019, AgEq was calculated using metals prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb Cu. Calculated figures may not add up due to rounding. 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, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period. 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 EBITDA, and cash flow per share. 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 for further information and detailed reconciliations.

Capital expenditures for Q1 2020, were $0.5 million compared to $2.5 million for the corresponding period in 2019, with the decrease is due mostly to the timing of expenditures and a cautious approach regarding the current COVID-19 pandemic. We expect that this amount will increase later into 2020, as certain capital expenditures have been pushed into the latter half of the year. Silver equivalent production in Q1 2020 increased by 11% compared to Q1 2019, with record copper quarterly production of over 1.8 million pounds.  The Avino Mine produced a record 262,238 silver ounces, the highest quarterly total achieved to date.”

During the first quarter of 2020, the Company increased its position in Talisker by 3.29 million shares, up to 15.87 million common shares from 12.58 million at the end of 2019. The increase was made through the exercise of 6.29 million share purchase warrants at an exercise price of $0.25 per share, and paid for using proceeds from the sale of 3 million Talisker common shares at an average price of $0.57 per share, thus the Company did not have to put up any cash to increase its position.