Avino Silver & Gold Mines Ltd. · TSX:ASM
Avino Silver & Gold Mines — Investor Presentation (March 2022)
35 slides from Avino Silver & Gold Mines's investor presentation, March 2022
Slide 1: Since 1968. A Proven Model for Growth.
ASM: TSX/NYSE American www.avino.com Since 1968. A Proven Model for Growth. Resilience. Initiative. Enterprise. March 2022
Slide 2: Cautionary Disclaimer: Forward-Looking Statements
ASM: TSX/NYSE American www.avino.com 2 CAUTIONARY DISCLAIMER: FORWARD-LOOKING STATEMENTS Safe Harbor Statement - This news release contains “forward-looking information” and “forward-looking statements” (together, the “forward looking statements”) within the meaning of applicable securities laws and
Slide 3: A Primary Silver Producer & Explorer in Mexico
ASM: TSX/NYSE American www.avino.com 3 A PRIMARY SILVER PRODUCER & EXPLORER IN MEXICO Avino is now in it’s 54th year • Over 37 years of production history (1974 – 2001) and 2011 – present • 500 years of rich history, a long tradition
Slide 4: Mexico – Avino Mine Location
ASM: TSX/NYSE American www.avino.com 4 MEXICO – AVINO MINE LOCATION • A one-hour drive on paved road from Durango City (population 650,000) to the mine site • Located In the heart of Durango farmland, a safe jurisdiction • Local communities provide our skilled labour force LOCATED ON THE EAST FLANK
Slide 5: 2022 Outlook – Avino Mine
ASM: TSX/NYSE American www.avino.com 5 2022 OUTLOOK – AVINO MINE Production • Approximately 600,000 tonnes processed budgeted for 2022 • 2.2-2.6 million silver equivalent ounces (“AgEq”) Capital Expenditures - US$7.0M to $9.0M • Planned 15,000 metres, additional holes may be drilled on the Oxide Tai
Slide 6: 2022 Outlook - Financial
ASM: TSX/NYSE American www.avino.com 6 2022 OUTLOOK - FINANCIAL • Building off cash-flow generation from current mining operations • Strong operating margins from Avino Mine • Available working capital of ~$30 million • Upfront payments of La Preciosa acquisition are fully-funded • Well positioned f
Slide 7: Recent Updates – Drill Results Released January 2022
ASM: TSX/NYSE American www.avino.com 7 RECENT UPDATES – DRILL RESULTS RELEASED JANUARY 2022 • 151 g/t AgEq over 32.2 metres at Brecha de Bajo Vein o Gold and silver grades shown along with specularite (iron ore) mineralization – more work is planned in this area • 689 g/t AgEq over 0.65 metres at La
Slide 8: Highlights - 2021
ASM: TSX/NYSE American www.avino.com 8 HIGHLIGHTS - 2021 KEY HIGHLIGHTS: • Announcement of La Preciosa acquisition • Successful restart of production at Avino • Debt Reduction since beginning 2020 – $10 million • Debt-free (excluding payables and equipment leases) • ~$30 million in liquidity at the
Slide 9: Key Operating & Financial Information
ASM: TSX/NYSE American www.avino.com 9 KEY OPERATING & FINANCIAL INFORMATION FINANCIAL RESULTS Q3 2021 Q3 2020 YTD 2021 YTD 2020 Revenues $1.9 M $2.7 M $1.9 M $14.6M Mine operating income (losses) $0.8 M $-0.2 M $-0.9 M $1.4 M EBITDA(1) $0.2 M $-4.3 M $-4.4 M $-4.7 M Adjusted earnings/(losses)(1) $-
Slide 10: Q3 2021 - Consolidated Cash Costs
ASM: TSX/NYSE American www.avino.com 10 Q3 2021 - CONSOLIDATED CASH COSTS Costs per Silver Equivalent Payable Ounce¹,²,³ $31.61 All-in Sustaining Cash costs per 19 Silver Equivalent Payable Ounce¹,² % $25.60 $12.56 $6.75 Cash Costs per 46 Silver Equivalent Payable Ounce¹,² % Q3 2021 Q3 2020 Cash Cos
Slide 11: Q4 2021 Consolidated Production Results
ASM: TSX/NYSE American www.avino.com 11 Q4 2021 CONSOLIDATED PRODUCTION RESULTS (COMPARED TO Q3 2021) 1,128,728 68% Copper Production (lbs) 672,951 163,933 139% Silver Production (oz) 68,599 92% Gold Production (oz) 2,158 1,125 541,432 101% Silver Equivalent Production (oz)* 269,680 0 400,000 800,00
Slide 12: Silver Equivalent Production Profile
ASM: TSX/NYSE American www.avino.com 12 SILVER EQUIVALENT² PRODUCTION PROFILE 12 Potential Future Production Growth: Short Term: 100% Production from Avino Total Silver Equivalent² Produced (oz) Medium Term: Exploration and Integration of La Preciosa Long Term: Growth through La Preciosa 3,000,000 2
Slide 13: Dry Stack Tailings
ASM: TSX/NYSE American www.avino.com 13 DRY STACK TAILINGS • Permitted dry-stack, tailings storage facility (“TSF#2”): • Concrete foundations poured for the building that will house the filter presses needed • Project on track for completion during Q1 2022 • Could add an additional 8 – 10 years of t
Slide 14: Permitted Tailings Storage Facility – TSF#2 Construction Progress
ASM: TSX/NYSE American www.avino.com 14 PERMITTED TAILINGS STORAGE FACILITY – TSF#2 CONSTRUCTION PROGRESS
Slide 15: Avino Mine in Mexico – The Upside
15 AVINO MINE IN MEXICO – THE UPSIDE ▪ Situated on a volcanic caldera ▪ Property covers 1,104 hectares ▪ Significant unexplored areas remain ▪ Porphyry style mineralization ▪ Avino vein remains open at depth ▪ La Preciosa Ag-Au project just SW of Avino ▪ Robust mineralized Au-Ag-Cu stockwork and bre
Slide 16: Why Is the Avino Property So Unique?
16 WHY IS THE AVINO PROPERTY SO UNIQUE? • There are 20 named veins on the property • Over 50 additional veins on the property • On the edge of a caldera • Structurally controlled • Multiple conduits for mineralization • Geological window of exposed older host rocks • Composite vein sets with differe
Slide 17: Updated Mineral Resources at the Avino Mine
ASM: TSX/NYSE American www.avino.com 17 UPDATED MINERAL RESOURCES AT THE AVINO MINE (NI 43-101 COMPLIANT) Measured and Indicated Mineral Resources: Inferred Mineral Resources: o 116.5 million silver equivalent ounces, an increase of 145% o 36.6 million silver equivalent ounces, an increase of 58% o
Slide 18: Acquisition of La Preciosa
AVINO A GROWING PRIMARY SILVER PRODUCER & EXPLORER ACQUISITION OF LA PRECIOSA 18
Slide 19: The Transaction: Avino to Acquire La Preciosa
ASM: TSX/NYSE American www.avino.com 19 THE TRANSACTION: AVINO TO ACQUIRE LA PRECIOSA Transaction Summary ▪ On October 27, 2021, Avino announced that it entered into a share purchase agreement to acquire the La Preciosa Property (“La Preciosa”) from Coeur Mining, Inc. (NYSE: CDE) (“Coeur”) ▪ La Prec
Slide 20: Terms of the Transaction
ASM: TSX/NYSE American www.avino.com 20 TERMS OF THE TRANSACTION In US$ million, unless stated otherwise Shares Issued as Consideration 14.0 Closing Share Price (26-Oct-21) $0.92 Value of Share Consideration $12.9 Value of Warrant Consideration (7.0M Warrants) $1.8 Cash Consideration Payable at Clos
Slide 21: Strategic Rationale
ASM: TSX/NYSE American www.avino.com 21 STRATEGIC RATIONALE ✓ Elevates Avino's Potential as a Silver Producer and Developer ✓ Presents Unique Operational Synergies due to La Preciosa's Strategic Location ✓ Highly Accretive to Avino Across Key Metrics ✓ Positive Results from Initial Metallurgical Tes
Slide 22: Pro Forma Consolidated Mineral Resources
ASM: TSX/NYSE American www.avino.com 22 PRO FORMA CONSOLIDATED MINERAL RESOURCES The proposed addition of La Preciosa’s mineral resource inventory substantially augments Avino’s consolidated NI 43-101 mineral resources
Slide 23: Elevates Avino Within the Silver Sector
ASM: TSX/NYSE American www.avino.com 23 ELEVATES AVINO WITHIN THE SILVER SECTOR (US$ Millions, except per share amounts, unless otherwise denoted) Junior Silver Companies Resource (4) EV/Resource Company Mkt Cap (1)(2) TEV (3) M&I Ag M&I AgEq M&I Ag M&I AgEq Stage Location (M US$) (M US$) (K oz Ag)
Slide 24: Resource Growth – Transformative Transaction
ASM: TSX/NYSE American www.avino.com 24 RESOURCE GROWTH – TRANSFORMATIVE TRANSACTION 450,000 Measured and Indicated Silver Resources 400,000 350,000 300,000 (Ag koz) 250,000 200,000 150,000 100,000 50,000 0 Discovery Silver New Pacific Avino GoGold Bear Creek Alexco Endeavour SilverCrest Golden Silv
Slide 25: Resource Growth – Transformative Transaction (AgEq koz)
ASM: TSX/NYSE American www.avino.com 25 RESOURCE GROWTH – TRANSFORMATIVE TRANSACTION 1,200,000 Measured and Indicated Silver-Equivalent Resources 1,000,000 800,000 (AgEq koz) 600,000 400,000 200,000 0 Discovery Silver Bear Creek Avino Endeavour GoGold New Pacific Alexco SilverCrest Golden Silver Tig
Slide 26: Accretive Transaction & Compelling Valuation ($/oz Ag)
ASM: TSX/NYSE American www.avino.com 26 ACCRETIVE TRANSACTION & COMPELLING VALUATION $18.00 EV/M&I Ag Resource Valuations $16.00 $14.00 ($/oz Ag) $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 SilverCrest Endeavour Silver Tiger GoGold New Pacific Alexco Golden Bear Creek Discovery Silver Avino Metals S
Slide 27: Accretive Transaction & Compelling Valuation ($/oz AgEq)
ASM: TSX/NYSE American www.avino.com 27 ACCRETIVE TRANSACTION & COMPELLING VALUATION $10.00 EV/M&I AgEq Resource Valuations $9.00 $8.00 $7.00 ($/oz AgEq) $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 SilverCrest GoGold Endeavour New Pacific Silver Tiger Alexco Golden Discovery Avino Bear Creek Metals Re
Slide 28: Accretive Acquisition Re-Positions Avino
ASM: TSX/NYSE American www.avino.com 28 ACCRETIVE ACQUISITION RE-POSITIONS AVINO $1,200 Market Capitalization $1,000 $800 (US$ Millions) $600 $400 $200 -- SilverCrest Endeavour GoGold Discovery Silver New Pacific Alexco Silver Tiger Bear Creek Avino Golden Metals Silver Resources Corp. Metals Corp.
Slide 29: Endnotes
ASM: TSX/NYSE American www.avino.com 29 ENDNOTES Notes to Comparable Companies Analysis: 1. Market prices per Refinitiv Eikon as of February 4, 2022. 2. Based on fully diluted shares using the treasury stock method. 3. Excludes contingent consideration payable to Coeur and retained royalties. 4. Sil
Slide 30: Analyst and Newsletter Coverage
ASM: TSX/NYSE American www.avino.com 30 ANALYST AND NEWSLETTER COVERAGE Analyst Coverage Company Analyst H.C. Wainwright & Co. Heiko Ihle Alliance Global Partners (formerly Europac) Jake Sekelsky Roth Capital Partners Joe Reagor Cantor Fitzgerald Canada Matthew O’Keefe News Letter Coverage Publicati
Slide 31: Trading and Capitalization Summary
ASM: TSX/NYSE American www.avino.com 31 TRADING AND CAPITALIZATION SUMMARY ASM: TSX/NYSE AMERICAN CAD USD Major Shareholders Market Capitalization $112 M $89 M • Avino Management • Bard Associates Inc 52 Week $0.89 - $2.09 $0.70 - $1.66 • Sector Investment Managers Ltd. Closing Price, March 1, 2022
Slide 32: 2022 Plans
ASM: TSX/NYSE American www.avino.com 32 2022 PLANS • Continuation of production ramp-up at the Avino Mine • Workforce training ongoing; partnered with Caterpillar & Sandvik for training programs • Additional exploration drilling and market updates to come • Integration process of La Preciosa; proxim
Slide 33: Why Invest?
ASM: TSX/NYSE American www.avino.com 33 WHY INVEST? • A primary silver producer and explorer in Mexico • Re-rating expected following closing of La Preciosa acquisition • 290 million AgEq resource ounces (post-closing) • Undervalued relative to our silver peers on P/NAV and EV/oz by many multiples •
Slide 34: Thank you! For more information
34 CONTACT INFORMATION: Thank you! T: 604-682-3701 For more information F: 604-682-3600 Visit our website at: E: IR@AVINO.COM www.avino.com SUITE 900 – 570 GRANVILLE STREET VANCOUVER, BC V6C 3P1
Slide 35: Strong Leaders in Management, Financial and Technical Expertise
ASM: TSX/NYSE American www.avino.com 35 STRONG LEADERS IN MANAGEMENT, FINANCIAL AND TECHNICAL EXPERTISE Gary Robertson 36 years experience in the financial industry, top financial Nathan Harte 8 years experience as a Canadian Chartered Professional Accountant Chairman and Independent Director planne
Avino Silver & Gold Mines — Investor Presentation (March 2022) on 6ix