Avino Silver & Gold Mines Ltd. · TSX:ASM
Avino Silver & Gold Mines — Investor Presentation (November 2016)
40 slides from Avino Silver & Gold Mines's investor presentation, November 2016
Slide 1: Corporate Presentation – November 2016
Partnered with: Low Cost Silver, Gold & Copper Producer in Mexico and Canada Corporate Presentation – November 2016 Incorporated 1968
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
Slide 3: Avino at a Glance
Avino at a Glance • Long track record – incorporated 1968 • A company rich in history – over 500 years • Headquartered in Vancouver, Canada • Two producing mines • One mine in the trial production phase • Mining friendly jurisdictions • Geopolitically diverse • Diversified pipeline of gold, silver a
Slide 4: Avino Mission and Strategy
Avino Mission and Strategy To create shareholder value through • Profitable organic growth in both Mexico and British Columbia • Strategic acquisition of mineral exploration and mining properties 4
Slide 5: Avino Rich in History
Avino Rich in History The Avino Mine was founded by Spaniards in 1558 and was one of the first Spanish mines in Mexico The Avino deposit first was discovered by Spanish nobleman Juan de Tolosa and later developed by Captain Francisco de Ibarra of Cortez’s army.
Slide 6: By the end of the 18th century, Avino hosted the largest open cut mine
By the end of the 18th century, Avino hosted the largest open cut mine in the world. The mine was owned by a British company listed on the London Stock Exchange. At that time the company was organized with a capital of £1,000,000 in shares of £1 each 4
Slide 7: Q3 2016 – Overall Financial Highlights - $CAD
Q3 2016 – Overall Financial Highlights - $CAD Q3 2016 Q32016 Q32015 Change Revenues $13.2M $5.02M 163% Mine Operating Income $6.0M $2.2M 172% Total equity $68M $52M 32% Net Income (Loss) $1.2M $(.06M) 274% Cash $14.9M $9.1M 63% Working Capital $21.7M $11.5M 88% 7
Slide 8: Q3 2016 – Continued Sustained Production
Q3 2016 – Continued Sustained Production Q3 Q3 Change 2016 2015 Total Silver equivalent¹ (oz) Produced 649,831 770,004 (16%) Total Silver Produced (oz) calculated 410,908 399,836 3% Total Gold Produced (oz) calculated 1,813 1,644 10% Total Copper Pounds produced 1,045,091 1,344,174 (22%) ¹ Metal pro
Slide 9: Q3 2016 – Increasing Realized Ag & Au Prices
Q3 2016 – Increasing Realized Ag & Au Prices Average Realized Silver Price per Ounce ($US) $30.00 $20.00 $19.49 $10.00 $15.75 $0.00 Q32015 Q32016 Average Realized Gold Price per Ounce ($US) $1,400 $1,300 $1,200 $1,328 $1,100 $1,158 $1,000 9 Q32015 Q32016
Slide 10: Q3 2016 – Achievements
Q3 2016 – Achievements Commenced construction for a new tailings storage facility in Mexico New resource estimate for Avino Mine – Oct 2016 New resource estimate for Bralorne – Sept 2016 New exploration drilling project at the Avino Mine 10
Slide 11: Silver Equivalent Production Growth
Silver Equivalent Production Growth ² Up 115% in 2015 vs 2014 Silver Equivalent² Oz 4,000,000 3,500,000 3,020,348 3,000,000 2,500,000 2,000,000 1,342,150 1,500,000 Target 895,240 1,000,000 253,450 500,000 147,001 0 2011 2012 2013 2014 2015 2016 2017 2018 11 See slide 39 for footnotes
Slide 12: Consolidated Financials (CAD)
Consolidated Financials (CAD) Unless otherwise indicated YTD 2016 2015 2014 2013 2012 Revenue ($CAD) $27.9 M $19.1 M $19.3 M $16.1 M $2.3 M Mine operating income ($CAD) $11.0 M $8.1 M $7.9 M $7.1 M $0.8 M Earnings for the period ($CAD) $0.74 M $0.48 M $2.5 M $0.85 M ($1.3 M) Earnings per share ($CAD
Slide 13: Industry Leading AISC in 2015 ($US)
Industry Leading AISC in 2015 ($US) YE 2015 $18 $17.16 $15.62 $16 $14.92 $13.43 $13.56 $13.76 $4.41 $14 $5.22 $7.23 $12 $9.49 $5.56 $6.26 $10 $6.96 $8 $2.88 $12.75 $6 $9.70 $7.87 $7.50 $8.39 $4 $6.61 $6.60 $2 $0 Avino First Majestic Fortuna Silver Great Panther Pan American Endeavor Silver Americas
Slide 14: Capital Expenditures – US$86 million spent since 2011
Capital Expenditures – US$86 million³ spent since 2011 $35,000,000 USD$31.0M USD $30,000,000 USD$24.2M $8,492,613 $25,000,000 $20,000,000 $8,667,934 USD$15.5M $15,000,000 $8,127,723 $22,466,988 $10,000,000 USD$6.3 mil $15,528,440 USD$5.6M USD$3.5 mil $5,000,000 $7,419,982 $5,234,381 $4,012,984 $1,01
Slide 15: Strategic Partner
Strategic Partner In July 2015, Avino signed a term facility agreement with Samsung C&T U.K. Limited. For the sale of Avino Mine concentrate. Terms of the Agreement: • Avino will sell Avino Mine concentrates on an exclusive basis to Samsung for a period of 36 months • Samsung advanced Avino US$10 mi
Slide 16: Strong Management and Technical Expertise
Strong Management and Technical Expertise Gary Robertson 32 years experience in the Ross Glanville, BASc, Peng, 46 years experience in mining, Chairman and Independent financial industry, top financial MBA, CGA, CAMV exploration and development Director planner at Hollis Wealth Independent Director
Slide 17: Avino Project Pipeline
Avino Project Pipeline Exploration Development Production Canada Canada Eagle Mexico Bralorne Avino Mine Minto Mexico Olympic-Kelvin San Gonzalo Mine Avino – Oxide BRX Tailings Resource Mexico Mill Expansion Anna Maria El Hueco Aranjuez 17 El Labertino
Slide 18: Mexico – The world's largest silver producer
• Mexico – The world’s largest silver producer • Near Durango (pop 630,000) • Located in Sierra Madre silver/gold belt • Excellent infrastructure • Access to highly-skilled labor • Geopolitically stable • Long-term surface agreements on claims • Year-round access 18 • Pro-mining jurisdiction • 100%
Slide 19: Located on the east flank of the Sierra Madre Silver belt
• Located on the east flank of the Sierra Madre Silver belt • Situated within a 12km x 8km volcanic caldera which hosts numerous low sulfidation epithermal veins, breccias, stock work and silicified zones • These zones grade into a “near porphyry” environment • 80 km IP Geophysics, 1,500 soil sample
Slide 20: Core Asset - Avino Mine
YTD 2016 Production 1,226,105 oz AgEq² Core Asset - Avino Mine 609,836 oz AG • Full Scale processing @1,000 tpd resumed on Jan 1, 2015 2,152 oz Au • Commercial Production declared April 1, 2016 3,450,940 Lbs Cu • Produced 16M oz of silver, 96,000 oz gold and 24M lbs of copper Average Annual Producti
Slide 21: Avino Mine - Stockwork
Avino Mine - Stockwork • Epithermal Current mineralization Exploration • Currently mining level 12 approx. 250 metres Level 12 below surface • Current exploration program in gap zone Current Mining strike length: between Elena Tolosa 460 m, avg width 30 m and San Luis Overall Strike Length: 1.6 KM •
Slide 22: Development Project - Oxide Tailings Resource
Development Project - Oxide Tailings Resource • Created between 1976 and 1993, during Avino’s previous open pit operation when recovery rates were low due to conventional milling methods of the time • New technology (heap leaching) to recover silver & gold • Advancing the tailings resource project t
Slide 23: San Gonzalo Mine
YTD 2016 Production San Gonzalo Mine 760,860 oz AgEq² Q3 2016 Cash Cost per oz Ag Eq² - • Strongly-developed, high grade silver-gold-lead-zinc system more than 2.5m in width US$8.64 Q32016 AISC per oz Ag Eq² - • Began production at levels intended by CAD$11.27 management @ 250 TPD in Q4 2012 San Gon
Slide 24: Bralorne Gold Mines – British Columbia
Bralorne Gold Mines – British Columbia • Successfully completed acquisition in Q42014 when gold was at US$1,030 oz • Bralorne Mining District includes some of the most productive gold mines in British Columbia’s history • Avino has a strong technical understanding of the project • Historical product
Slide 25: Bralorne Gold Mines – Pilot Mining in Gap Zones
Bralorne Gold Mines – Pilot Mining in Gap Zones • Avino’s plan is to explore, develop and mine the gap zones between the historic workings of the Bralorne, Pioneer and King Mines. Exploration undertaken to date represents less than 5% of the target potential. Historic Production: Historic Production
Slide 26: Bralorne – Recent focus of exploration
Bralorne – Recent focus of exploration M-9960 Vein BK-9870 Vein BK Vein Alhambra (BK-9790) Vein 26
Slide 27: Bralorne – Recent Achievements
Bralorne – Recent Achievements • Completion of NI 43-101 Resource estimate – a major step towards re-opening the mine – targeting 2017 • Increased tonnage and gold ounces through a limited program • Updated figures provide essential information and validate development strategy • Upgrading the taili
Slide 28: Bralorne Gold Mines – Upgrading & Modernizing
Bralorne Gold Mines – Upgrading & Modernizing • New larger mine plan currently being developed, permitted up to 500 tpd, current mine plan targeting 300 tpd • Transitioning from labor intensive shrinkage stope mining to the more cost effective mechanized long hole mining • Tailings dam embankment ra
Slide 29: Active Engagement with First Nations
Active Engagement with First Nations Avino commits to being good corporate citizens • Bralorne, North Island College, the BC government and First Nations completed an educational cohort to provide basic mining training to the members of the St’at’imc First Nation in Lillooet with another scheduled f
Slide 30: 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 Noble Financial Michael Heim Roth Capital Partners Joe Reagor News Letter Coverage Publication Writer J. Taylor's Gold Energy &
Slide 31: Avino – Investment Case
Avino – Investment Case Quality Low cost Growth core producer potential assets • Junior silver-gold- • Consistent producer • Pipeline of organic copper miner • Proven track record growth opportunities focused on growth • Controlled and • Extensive exploration • A long and valued maintained our AISC
Slide 32: Trading and Capitalization Summary
Trading and Capitalization Summary NYSE Market: ASM and TSX.V: ASM Major Shareholders CAD USD Avino Management Market capitalization $144.4M $107.2M Bard Associates Inc. 52 week $1.03 - $4.05 $0.71 - $3.14 Aegis Financial Corp Shares Outstanding – 45.2 M (49.2M Fully Diluted) Renaissance Technologie
Slide 33: Appendix 1 – Avino Property Resources
Appendix 1 – Avino Property Resources Grade Metal Contents Resource Cut-off Metric Ag Million Au Thousand Deposit AgEQ g/t Ag g/t Au g/t Cu% Cu T Category (AgEQ g/t) Tonnes Tr Oz Tr Oz Measured Avino System 55 950,000 143 74 0.33 0.69 2.3 10.0 6,550 Measured San Gonzalo 125 170,000 357 272 1.50 0.00
Slide 34: Appendix 2 - San Gonzalo Mine
Appendix 2 - San Gonzalo Mine Open along strike Open along strike 35
Slide 35: Bralorne – Resource Potential Vein Deeps
Bralorne – Resource Potential 77 Vein Deeps 34
Slide 36: Appendix 3 - Key Milestones
Appendix 3 - Key Milestones 2006 - 2010 2011 - 2012 2013 2014 2015 / 2016 Acquired remaining 51% Processed 10,000 tonne Secured US$5 million line Raised US$10.7 million Began processing interest in the Avino San Gonzalo Bulk Sample of credit from Caterpillar through two financings new mate
Slide 37: Appendix 4 – New Equipment (Mexico)
Appendix 4 – New Equipment (Mexico) Cat 420F Loader Cat R1600G Scoop Cat 320 D Rock Breaker Cat UG20K Grader Cat 980H Loader Oldenberg Cannon Jumbo 37
Slide 38: Appendix 5 – New Equipment (Canada)
Appendix 5 – New Equipment (Canada) Sandvik 2.5 yd scoops Cat 966M Loader 38
Slide 39: Appendix 6 - Footnotes
Appendix 6 - 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 the
Slide 40: Partners, Affiliates & Suppliers
40 (Partners, Affiliates & Suppliers)
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