Avino Silver & Gold Mines .(ASM) - 2023 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Silver equivalent production increased by 48% to 678,000 ounces compared to Q1 2022 [7][11] - Net revenues decreased to $9.8 million from $11.1 million in Q1 2022, partly due to provisional pricing adjustments [21][22] - Mine operating income was $1.9 million, down from $4.7 million in Q1 2022, attributed to higher overhead costs [22] - The company reported a net loss after taxes of $400,000 or $0.00 per share for Q1 [23] Business Line Data and Key Metrics Changes - Silver production increased by 43% to 234,000 ounces [11] - Copper production increased by 15% to 1.4 million pounds [11] - Gold production surged by 185% to 2,286 ounces [11] - Mill throughput increased by 44% to just under 160,000 tonnes [11] Market Data and Key Metrics Changes - Silver prices ranged from $20.09 to $24.43 in Q1 2023, while gold prices ranged from $18.10 to $19.93 [19][20] - Gold hit $20.45 an ounce on May 4, continuing to hold above the $2000 level, indicating a strong outlook for precious metals [20] Company Strategy and Development Direction - The company aims to increase production from 2.8 million to 3 million ounces of silver equivalent to between 8 million and 10 million ounces by 2028 [9] - The five-year growth plan includes development and optimization of La Preciosa and the Oxide Tailings Project [8][9] - The company is focused on community engagement and sustainable practices as part of its growth strategy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expects little short-term economic impact from recent Mexican mining law changes, with long-term concessions remaining secure [8] - The outlook for silver demand is strong, driven by industrial fabrication and green technology [20] - The company remains focused on cost management and generating strong results in Q2 [21] Other Important Information - The updated mineral resource estimate increased consolidated resources to 368 million silver equivalent ounces [13][14] - The company has completed metallurgical testing on the Oxide Tailings Project, which will inform a pre-feasibility study [12][26] Q&A Session Summary Question: Impact of strengthening peso on costs - Management is monitoring the situation closely and has implemented policies to mitigate impacts, as many costs are still in US dollars [30] Question: Capital expenditure plans for the year - The budget for capital expenditures is between $9 million to $12 million, with spending expected to decrease in the coming quarters [31][32] Question: Community support budget and comparison to previous years - Direct spending on community support has grown substantially compared to five years ago, though quantifying it is challenging [34] Question: Drilling results and costs - Ten outstanding holes are ready to release results, encompassing over 3,100 meters of drilling [36] Question: Plans for La Preciosa - The company plans to start development this year, with fresh ore expected to come in early 2024 [39][40]