Avino Silver & Gold Mines Ltd. · TSX:ASM

Avino Silver & Gold Mines — Investor Presentation (May 2017)

33 slides from Avino Silver & Gold Mines's investor presentation, May 2017

  1. Slide 1: Low Cost Silver, Gold & Copper Producer

    Partnered with: Incorporated 1968 LOW COST SILVER, GOLD & COPPER PRODUCER Corporate Presentation – May, 2017 ASM: NYSE MKT/TSX.V

  2. Slide 2: Cautionary Disclaimer: Forward-Looking Statements

    CAUTIONARY DISCLAIMER: FORWARD-LOOKING STATEMENTS Safe Harbour Statement - This presentation 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

  3. Slide 3: Avino at a Glance – 2 Mines 2 Countries

    AVINO AT A GLANCE – 2 MINES 2 COUNTRIES  Two producing mines in Mexico (Avino and San Gonzalo)  Plant and mine expansion in Mexico to increase throughput capacity by an estimated 70%  Bralorne Gold Mine in BC, Canada – Reviewing scenarios for start-up  Oxide Tailings Development Project - Avino

  4. Slide 4: Rich in History

    RICH IN HISTORY  Avino – 49 Years in the Mining Industry  Specializing in re-opening past producers  Avino Mine – 500 years of history – a long tradition  Bralorne – 100 years – Historic, prolific gold camp 4

  5. Slide 5: Location Is Everything – Mexico and Canada

    LOCATION IS EVERYTHING – MEXICO AND CANADA LOCATED ON THE EAST FLANK OF THE 5 SIERRA MADRE SILVER BELT 5

  6. Slide 6: Strong Leaders in Management, Financial and Technical Expertise

    STRONG LEADERS IN MANAGEMENT, FINANCIAL AND TECHNICAL EXPERTISE DIRECTORS & OFFICERS FINANCIAL & TECHNICAL CONSULTANTS Gary Robertson 32 years experience in the financial industry, top Fred Sveinson, B.A., B.Sc., 45+ years experience as a Chairman and Independent financial planner at Hollis Wealth A

  7. Slide 7: Silver Equivalent Production Growth

    SILVER EQUIVALENT² PRODUCTION GROWTH Total Silver Equivalent² Produced (oz) 4,000,000 3,020,348 3,000,000 2,679,334 Target 2,000,000 1,342,150 895,240 1,000,000 147,001 253,450 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 See footnotes on page 32 7

  8. Slide 8: Consolidated Financials

    CONSOLIDATED FINANCIALS Effective January 1, 2017, the Company changed its presentation currency to US dollars from Canadian dollars. As a result, all dollar amounts in this MD&A are expressed in US dollars, unless otherwise noted. Please refer to the section “Changes in Accounting Standards” for fu

  9. Slide 9: AISC in 2016 – ASM Among Lowest Cost Silver Producers

    AISC IN 2016 (US$) – ASM CONTINUES TO RANK AMONG THE LOWEST COST SILVER PRODUCERS AVINO SILVER & GOLD MINES $8.48 $1.86 $10.34 Total Cash Costs (US$/oz AgEq) G&A & Other Americas Silver Corp $10.00 $2.71 $12.71 First Majestic $6.50 $6.40 $12.90 Great Panther $10.50 $5.90 $16.40 Sierra Metals $7.95 $

  10. Slide 10: Resilient Silver Margins

    RESILIENT SILVER MARGINS $19.49 $16.99 $16.42 $16.69 $17.38 $8.89 Realized Silver $5.72 Prices 34% $6.68 40% $7.83 46% Cash Margin $8.20 50% 45% US$ AISC $11.27 $10.60 $10.01 $9.55 $8.22 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 10

  11. Slide 11: Capturing Higher Realized Silver and Gold Prices

    CAPTURING HIGHER REALIZED SILVER AND GOLD PRICES Silver Gold Average Realized Gold Price Average Realized Silver Price $1,300 Per Ounce $US Per ounce $US $18.00 $1,258 $17.71 $1,250 $17.00 $1,200 $16.00 $15.46 $15.00 $1,150 $1,148 $14.00 $1,100 2015 2016 2015 2016 Market Improving 11

  12. Slide 12: Capital Expenditures – US$100 Million Spent Since 2011

    CAPITAL EXPENDITURES – US$100 MILLION³ SPENT SINCE 2011 $35,000,000 USD$31.0 M $30,000,000 USD$24.2M $8,492,613 USD$22.5M $25,000,000 $20,000,000 $8,667,934 $11,456,768 $15,000,000 $22,466,988 USD$6.9M $10,000,000 USD$6.3 M $15,528,440 USD$5.6 M 871,741 USD$3.5 M $11,047,174 $5,000,000 $5,234,381 $4

  13. Slide 13: Strategic Partner – Samsung C&T

    STRATEGIC PARTNER – SAMSUNG C&T  Ethical partner  Avino mine concentrates sold exclusively to Samsung 13

  14. Slide 14: Objectives & Strategy for Value Creation and Growth

    2017 OBJECTIVES & STRATEGY FOR VALUE CREATION AND GROWTH Avino Mine - Mill expansion – Circuit #4, Increase by 70% to 2,500 tpd - Optimization and automation - Positive PEA delivered – follow through with next steps - TSF - Revised internal operating plan underway, based on alternative of using thic

  15. Slide 15: Growth Strategy – Avino Property Upside

    GROWTH STRATEGY - AVINO PROPERTY UPSIDE  Data from ongoing drilling and historic data are all currently being compiled  Significant unexplored areas remain, Avino vein remains open at depth  New gold rich area contains at least two sections with continuous significant gold assays Planned Current

  16. Slide 16: Growth Strategy – Increasing Resources – Mexico

    GROWTH STRATEGY – INCREASING RESOURCES - MEXICO NI 43-101 COMPLIANT Resource Category Deposit Metric Tonnes Total Measured Avino System & San Gonzalo 1,120,000 Total Indicated Avino System, San Gonzalo & Oxide 2,150,000 Tailings Total Measured & All Deposits 3,270,000 Indicated Total Inferred Avino

  17. Slide 17: Positive PEA for the Oxide Tailings Completed

    POSITIVE PEA FOR THE OXIDE TAILINGS COMPLETED ATTRACTIVE ECONOMICS HIGHLIGHTS PEA BASE CASE  Pre-tax NPV 8% of US$45M  Metal prices of $18.50 oz silver, $1,250 oz gold  Pre-tax IRR of 48.4%  Operating costs – $47M  2 year pay-back period  Operating Cash flow - $95M  Total capex of US$28.5 mil

  18. Slide 18: Building a Future – Bralorne Gold Mines, British Columbia

    BUILDING A FUTURE BRALORNE GOLD MINES – BRITISH COLUMBIA Updated Resource Estimate Measured Indicated Measured and indicated Inferred Tons Au Au Tons Au Au Tons Au Au Tons Au Au opt Ounces opt Ounces opt Ounces opt Ounces Total 45,922 0.36 16,643 227,201 0.32 74,885 273,123 0.33 91,528 363,527 0.22

  19. Slide 19: Modernization, Community and Growth – Bralorne 2016 Highlights

    MODERNIZATION, COMMUNITY AND GROWTH BRALORNE – 2016 HIGHLIGHTS  Updated NI 43-101 Resource estimated – INCREASED TONNAGE AND GOLD OUNCES Tailings Dam embankment raise  Permit applications to resume mining and processing – ROAD TO PRODUCTION  Long-hole mining to be tested – COST EFFECTIVE  2 new

  20. Slide 20: Corporate Social Responsibility – Engagement with First Nations

    CORPORATE SOCIAL RESPONSIBILITY ACTIVE ENGAGEMENT WITH FIRST NATIONS  In 2016, Bralorne, North Island College, the BC government and First Nations completed two educational cohorts to provide basic mining training to 24 members of the St’at’imc First Nation in Lillooet  Maintaining open lines of c

  21. Slide 21: Analyst and Newsletter Coverage

    ANALYST AND NEWSLETTER COVERAGE Analyst Coverage Company Analyst Cantor Fitzgerald Canada Rob Chang Euro Pacific Capital Inc. Bhakti Pavani H.C. Wainwright & Co. Heiko Ihle Roth Capital Partners Joe Reagor Noble Financial Michael Heim News Letter Coverage Publication Writer J. Taylor's Gold Energy &

  22. Slide 22: Trading and Capitalization Summary

    TRADING AND CAPITALIZATION SUMMARY NYSE MARKET: ASM AND TSX.V: ASM CAD USD Major Shareholders Market capitalization $110M $80M Avino Management Konwave AG Aegis Financial Corp. GAM Investment Management 52 week $1.52 - $4.05 $1.12 - $3.14 (Switzerland) AG Closing price – Wednesday, May 24 $2.09 $1.5

  23. Slide 23: Investment Case

    INVESTMENT CASE Quality Low cost Growth Core producer Potential assets  People – low turnover rate  Consistent producer  Pipeline of organic growth  Junior silver-gold-copper miner  Proven track record opportunities focused on growth  Controlled and  Extensive exploration potential at  A lon

  24. Slide 24: Thank You – Questions?

    Partnered with: Incorporated 1968 ASM: NYSE MKT/TSX.V THANK YOU QUESTIONS? Avino Silver & Gold Mines Ltd. T: 604-682-3701 F: 604-682-3600 Suite 900 – 570 Granville Street Vancouver, BC V6C 3P1 www.avino.com 24

  25. Slide 25: Appendix: Bralorne Resource Potential

    APPENDIX BRALORNE RESOURCE POTENTIAL 77 Vein Deeps 25

  26. Slide 26: Appendix: Bralorne – Recent Focus of Exploration

    APPENDIX BRALORNE – RECENT FOCUS OF EXPLORATION 26

  27. Slide 27: Appendix: Key Milestones

    APPENDIX KEY MILESTONES 2006 - 2010 2011 - 2012 2013 2014 2015 / 2016  Acquired remaining 51% interest  Processed 10,000 tonne San  Secured US$5 million line of credit  Began processing new  Raised US$10.7 million through in the Avino property Gonzalo Bulk Sample from Caterpillar for mining mat

  28. Slide 28: Appendix: New Equipment (Mexico)

    APPENDIX NEW EQUIPMENT (MEXICO) Cat 420F Loader Cat R1600G Scoop Cat 320 D Rock Breaker Cat UG20K Grader Cat 980H Loader Oldenberg Cannon Jumbo 28

  29. Slide 29: Appendix: New Equipment (Canada)

    APPENDIX NEW EQUIPMENT (CANADA) Sandvik 2.5 yd scoops Cat 966M Loader 29

  30. Slide 30: World Silver Supply and Demand

    WORLD SILVER SUPPLY AND DEMAND $35.12 1,400 $31.15 $23.79 1,200 $20.19 $19.08 $15.68 $14.99 $17.14 $13.38 $14.67 1,000 800 Supply 600 Demand 400 Physical Surplus/Deficit 200 Net Balance 0 Silver Price 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ per oz -200 -400 • Key demand drivers include s

  31. Slide 31: Appendix: Benefits to Mining in Mexico

    APPENDIX BENEFITS TO MINING IN MEXICO  Long history of mining and a workforce trained in exploration and project development  Mexico is the 5th most attractive country to investors in the mining sector by Behre Dolbear just behind Canada, Australia, USA, and Chile  Strengthened ties of friendship

  32. Slide 32: Appendix: Footnotes

    APPENDIX FOOTNOTES 1. Cash cost per ounce and all-in sustaining cash cost per ounce Cash cost per ounce and all-in sustaining cash cost per ounce are measures developed by mining companies in an effort to provide a comparable standard. However, there can be no assurance that our reporting of these n

  33. Slide 33: Partners, Affiliates & Suppliers

    33 (Partners, Affiliates & Suppliers)

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