Avino Silver & Gold Mines Ltd (ASM) 2020 Q3 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver & Gold Mines third quarter financial results conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)

感謝您的等候。我是會議接線員。歡迎參加 Avino Silver & Gold Mines 第三季財務業績電話會議。（接線員指示）本次會議將被錄音。（接線員指示）

I would now like to turn the conference over to Jennifer North, Investor Relations Manager. Please go ahead.

現在我想將會議交給投資人關係經理 Jennifer North。請開始。

Thank you, operator. Good morning, everyone, and welcome to the Avino Silver & Gold Mines Limited Third Quarter 2020 Financial Results Conference Call and Webcast. On the call today, we have the company's President and CEO, David Wolfin; our Chief Financial Officer, Nathan Harte; our Chief Operating Officer, Carlos Rodriguez; and our VP Technical Services, Peter Latta.

謝謝，接線員。各位早安，歡迎參加 Avino Silver & Gold Mines Limited 2020 年第三季財務業績電話會議與網路直播。今天與會者包括公司總裁兼執行長 David Wolfin；財務長 Nathan Harte；營運長 Carlos Rodriguez；以及技術服務副總裁 Peter Latta。

Before we get started, please note that certain statements made today on this call by the management team may include forward-looking information within the meaning of applicable securities laws. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different than those expressed by or implied by such forward-looking statements. The company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law. For more information, we refer you to our detailed cautionary note in the presentation accompanying this call or on our press release of yesterday's date.

在開始之前，請注意，管理團隊今天在本次電話會議中所作的某些陳述，可能包含適用證券法所定義的前瞻性資訊。前瞻性陳述受已知與未知風險、不確定性及其他因素影響，可能導致實際結果與該等前瞻性陳述所明示或暗示者存在重大差異。除非適用法律要求，公司無意且不承擔更新該等前瞻性陳述或資訊之任何義務。更多資訊請參閱本次電話會議隨附簡報中的詳細警示說明，或我們昨日發布的新聞稿。

I would like to remind everyone that this conference call is being recorded and will be available for replay later today. Replay information and the presentation slides accompanying this conference call and webcast will be available on the website. Thank you.

提醒各位，本次電話會議正在錄音，並將於今日稍晚提供重播。重播資訊以及本次電話會議與網路直播隨附的簡報投影片將公布於公司網站。謝謝。

I will now turn the call over to Avino's President and CEO, David Wolfin. David?

現在我將把電話會議交給 Avino 總裁兼執行長 David Wolfin。David？

Thanks, Jen. Good morning, everyone, and welcome to Avino's Q3 2020 Financial Results Conference Call and Webcast. Thanks for joining us.

謝謝，Jen。各位早安，歡迎參加 Avino 2020 年第三季財務業績電話會議與網路直播。感謝各位加入。

Before we begin, please note that the full financial statements and MD&A are now available on our website. On today's call, we will cover the highlights of our third quarter 2020 financial and operating performance, and then we will open it up for questions. Please note that all figures are stated in U.S. dollars, unless otherwise noted.

在開始之前，請注意完整財務報表與 MD&A 現已公布於我們的網站。今天的電話會議將涵蓋 2020 年第三季財務與營運表現重點，之後將開放提問。請注意，除非另有說明，所有數字均以美元表示。

Firstly, I'd like to thank our shareholders for their support and patience during the third quarter, while the Avino mine was closed due to the strike. This was difficult for everyone, and we are especially appreciative of all who stood by and understood the process we had to go through. In addition, I would like to extend my gratitude to the management team in Mexico, led by Carlos Rodriguez, who navigated and negotiated a successful resolution. The strike ended in early October and due to an extended period of inactivity at the mine and before the company can restart operations, a comprehensive evaluation of all underground milling and surface equipment is underway to ensure all are in excellent working condition.

首先，我要感謝股東在第三季期間的支持與耐心，當時 Avino 礦場因罷工而停工。這對所有人而言都很艱難，我們特別感謝所有一路相挺並理解我們必須經歷之程序的人。此外，我也要向墨西哥的管理團隊致謝，由 Carlos Rodriguez 領導，成功引導並協商達成解決方案。罷工於 10 月初結束；由於礦場長時間停擺，在公司能夠重啟營運之前，目前正進行對所有地下、選礦及地表設備的全面評估，以確保皆處於極佳的運作狀態。

Our third quarter operational performance was directly impacted by the 12-week strike action at the Avino Mine, which resulted in a decreased production profile for the quarter. During the 3 months ended September 30, 2020, no mining activity took place. We are setting our sights on 2021 as we look forward to commencing operations and embarking on the exploration program that was delayed during the pandemic and the strike.

我們第三季的營運表現直接受到 Avino 礦場為期 12 週罷工行動的影響，導致本季產量概況下降。在截至 2020 年 9 月 30 日止的 3 個月期間，未進行任何採礦活動。展望未來，我們將目標放在 2021 年，期待恢復營運並啟動因疫情與罷工而延宕的探勘計畫。

We will be poised to capitalize on increased metal prices when operations return to normal. During the quarter, Avino continued to move forward with the proposed dry stack tailings storage facility, TSF #2, we're calling it, which is on privately owned Avino land is permanent and is currently in the final stage prior to commencing construction. The company is looking forward to positive discussions between the community of Panuco de Coronado and the state government, which should help to provide the social approval to move forward with the construction of TSF #2. Their combined support is important to the vitality of the community and will aid in restarting production activities.

當營運恢復正常後，我們將有利於把握金屬價格上漲的機會。本季期間，Avino 持續推進擬議中的乾式堆疊尾礦儲存設施（我們稱之為 TSF #2），該設施位於 Avino 私有土地上，屬永久性設施，目前正處於開始施工前的最後階段。公司期待 Panuco de Coronado 社區與州政府之間能有正向的討論，這應有助於取得推進 TSF #2 建設所需的社會認可。雙方的共同支持對社區的活力至關重要，並將有助於重啟生產活動。

The restart of production activities is expected to provide significant direct economic benefits and stimulus for the local communities. In August, Avino granted Gray Rock, which has since rebranded as Silver Wolf Exploration, the exclusive right to acquire 100% interest in Avino's Ana Maria and El Laberinto properties in Mexico. The details of the option agreement are as follows: Avino to receive 300,000 share purchase warrants of Silver Wolf at $0.20 for a period of 36 months. Avino to receive CAD 600,000 in cash or common shares over 4 years, with the first 50,000 in common shares in 30 days of exchange approval, Silver Wolf to incur a total of $750,000 in exploration expenditures on the properties over 4 years.

預期重啟生產活動將為當地社區帶來顯著的直接經濟效益與刺激。8 月，Avino 授予 Gray Rock（其後更名為 Silver Wolf Exploration）在墨西哥收購 Avino 之 Ana Maria 與 El Laberinto 礦權 100% 權益的獨家權利。選擇權協議細節如下：Avino 將取得 Silver Wolf 300,000 份股票購買認股權證，行使價為 0.20 美元，期限 36 個月。Avino 將在 4 年內取得 60 萬加幣的現金或普通股，其中首筆 50,000 加幣以普通股形式，於交易所核准後 30 天內支付；Silver Wolf 將在 4 年內於該等礦權投入合計 750,000 美元的探勘支出。

By divesting of these 2 assets, Avino limits the cost of maintaining the properties while retaining exposure to any exploration upside through the issuance of shares or warrants. Both properties are on paved road to Avino, which may, in the future, prove to be beneficial to Avino, which has the right of first refusal to purchase and process any ore or concentrate extracted from the properties for processing.

透過處分這兩項資產，Avino 可降低維持礦權的成本，同時透過取得股份或認股權證，保留對任何探勘上行潛力的曝險。兩處礦權皆位於通往 Avino 的鋪設道路旁，未來可能對 Avino 有利；此外，Avino 享有優先拒絕權，可購買並處理自該等礦權開採之任何礦石或精礦以進行加工。

During the quarter, silver and gold prices were volatile but stayed close to the highs reached in the second quarter with gold price reaching a high of $2,067 in August and silver reaching a high of $28.85 in September. Today, we have a gold price above $1,900, which has backed off slightly, and the silver price is sitting around $24.

本季期間，白銀與黃金價格波動，但仍接近第二季所達高點；金價於 8 月觸及 2,067 美元高點，銀價於 9 月觸及 28.85 美元高點。今日金價在 1,900 美元以上，略有回落，而銀價約在 24 美元左右。

I will now ask Nathan Harte, Avino's Chief Financial Officer, to present the financial results for Q3 2020.

接下來我將請 Avino 財務長 Nathan Harte 報告 2020 年第三季財務結果。

Thank you, David. It is my pleasure to be on the call, and I would like to welcome everyone who has joined us and is viewing our presentation today. As you can imagine, Avino's operating results were impacted by the previously mentioned strike action at the Avino mine. Having said that, the financial health of the company remains strong as Avino continues with its plan to reduce its debt load during 2020, having lowered its debt liabilities by a further $2 million during the third quarter. This brings total debt reduction for 2020 up to $6.1 million. Working capital at September 30 was $16.9 million compared to $13.8 million at June 30 and $13.2 million at the end of 2019. Our cash balance at the end of the quarter was $12.5 million, up from $10.4 million at June 30 and $9.6 million at the end of 2019.

謝謝你，David。很高興參與本次電話會議，也歡迎所有加入並於今日觀看我們簡報的各位。如各位所能想像，Avino 的營運結果受到前述 Avino 礦場罷工行動的影響。儘管如此，公司財務狀況仍然穩健；Avino 持續執行 2020 年降低負債的計畫，並於第三季再將債務負債降低 200 萬美元，使 2020 年迄今總減債金額達 610 萬美元。截至 9 月 30 日的營運資金為 1,690 萬美元，相較於 6 月 30 日的 1,380 萬美元，以及 2019 年底的 1,320 萬美元。季末現金餘額為 1,250 萬美元，高於 6 月 30 日的 1,040 萬美元及 2019 年底的 960 萬美元。

During Q3, we generated revenues from mining operations of $2.7 million, which was down 61% compared to Q3 2019. Avino also reported mine operating losses of $200,000 for the third quarter, which remains unchanged when compared to Q3 2019. Losses before interest, taxes, depreciation and amortization were $4.3 million compared to $1.6 million for Q3 2019. And adjusted losses for Q3 2020 were $0.7 million compared to $100,000 in Q3 of 2019.

第三季我們自採礦營運產生的營收為 270 萬美元，較 2019 年第三季下降 61%。Avino 亦於第三季報告礦場營運損失 20 萬美元，與 2019 年第三季相比維持不變。利息、稅項、折舊及攤銷前損失為 430 萬美元，相較於 2019 年第三季的 160 萬美元。2020 年第三季調整後損失為 70 萬美元，相較於 2019 年第三季的 10 萬美元。

Avino reported net losses after taxes from continuing operations of $4.6 million compared to $1.5 million in Q3 2019, which translates to a loss per share of $0.05 from continuing operations for the third quarter of 2020 compared to $0.03 in Q3 2019. It should be noted that net losses for Q3 2020 did include noncash losses of $2.7 million relating to the exercise of warrants in which Avino received proceeds of well over $3 million as well as unrealized losses on the company's investments in Talisker Resources of $1.2 million.

Avino 報告持續營運之稅後淨損為 460 萬美元，相較於 2019 年第三季的 150 萬美元；換算為 2020 年第三季持續營運每股虧損 0.05 美元，相較於 2019 年第三季的每股虧損 0.03 美元。需注意的是，2020 年第三季淨損包含與認股權證行使相關的 270 萬美元非現金損失（Avino 因此收到超過 300 萬美元的款項），以及公司對 Talisker Resources 投資的 120 萬美元未實現損失。

Our third quarter consolidated cash costs remained fairly stable at $12.56 compared to $12.74 in Q3 2019. However, our all-in sustaining cash cost for payable silver equivalent ounce did increase to $31.61 when compared to $18.62 for Q3 2019. The increase is a direct result of fewer ounces sold during Q3 2020 as well as additional standby costs of $900,000 associated with maintaining operations during the strike action.

我們第三季合併現金成本相對穩定，為 12.56 美元，相較於 2019 年第三季的 12.74 美元。然而，我們每一應付白銀當量盎司的全維持性現金成本確實上升至 31.61 美元，相較於 2019 年第三季的 18.62 美元。此一增加主要是由於 2020 年第三季售出盎司數較少，以及與罷工期間維持營運相關的 90 萬美元額外待命成本所致。

Our revenues for mining operations of $2.7 million in Q3 2020 were derived of 31% from silver, 25% from gold and 44% from copper. Our capital expenditures for Q3 2020 were $400,000 compared to $2.3 million in Q3 of 2019. With the strike action, the company took specific measures to limit any unnecessary capital expenditures during the third quarter. All necessary upgrades and projects have continued on as planned, including the new dry stack tailings storage facility equipment.

我們於2020年第三季的採礦營運收入為270萬美元，其中31%來自白銀、25%來自黃金、44%來自銅。我們2020年第三季的資本支出為40萬美元，相較於2019年第三季的230萬美元。在罷工行動期間，公司採取了特定措施，以限制第三季任何不必要的資本支出。所有必要的升級與專案均按計畫持續進行，包括新的乾式堆疊尾礦儲存設施設備。

Finally, I want to reiterate that Avino remains financially strong and exited the third quarter with its strongest balance sheet in almost 4 years. We have made significant strides in reducing our debt and currently maintain over $20 million in liquidity, including our investment holdings. With current debt representing less than 50% of our cash balance, I'm confident that Avino is ready for any market uncertainties and to take advantage of the strong metals market moving into 2021.

最後，我想重申，Avino 仍然財務穩健，並以近4年來最強勁的資產負債表結束第三季。我們在降低負債方面取得了顯著進展，目前維持超過2,000萬美元的流動性，包括我們的投資持有部位。由於目前負債低於我們現金餘額的50%，我有信心 Avino 已準備好因應任何市場不確定性，並把握邁入2021年強勁金屬市場的機會。

I will now hand it over to David for a discussion on our plans for the remainder of 2020.

接下來我將交給 David，討論我們在2020年剩餘期間的計畫。

Thank you, Nathan. Our plans for the final quarter of the year include: one, continuing with the comprehensive evaluation at the mine site before ramp-up of operations; two, resume the connection between underground levels at the Avino mine; three, move forward with building the exploration team; four, independent evaluation of structural controls on the property; five, and a structural interpretation to provide better understanding and defining new targets within the dozens of veins that exist on the property.

謝謝你，Nathan。我們在今年最後一季的計畫包括：第一，在營運擴產（ramp-up）之前，持續在礦區進行全面評估；第二，恢復 Avino 礦地下各水平之間的連通；第三，推進建立勘探團隊；第四，對礦權範圍內的構造控制進行獨立評估；第五，進行構造解釋，以更好地理解並在該礦權範圍內存在的數十條礦脈中界定新的目標。

The last 2 quarters have been particularly challenging, but we are rounding the corner. And I want to ensure our shareholders that our focus hasn't changed, and we look forward to resuming normal operations and exploration activities as soon as we can. We thank you for your patience and understanding. We are optimistic for the future and a return to business as usual.

過去兩個季度特別具挑戰性，但我們正在走出困境。我也想向股東們保證，我們的重點並未改變，我們期待在可行的情況下盡快恢復正常營運與勘探活動。感謝各位的耐心與理解。我們對未來保持樂觀，並期待回到一切如常的營運狀態。

And finally, I would like to say another thank you to the teams in Canada and Mexico for their dedication, hard work and contributions.

最後，我也要再次感謝加拿大與墨西哥團隊的投入、辛勤工作與貢獻。

We would now like to move the call to question-and-answer portion. Operator?

我們現在想把電話會議轉到問答環節。接線員？

(Operator Instructions) First question comes from Jake Sekelsky from Alliance Global Partners.

（接線員指示）第一個問題來自 Alliance Global Partners 的 Jake Sekelsky。

Just looking at TSF #2, are you able to give us any additional color on the time line and budget there? Is it something you still expect to have completed by early next year?

就 TSF #2 而言，你們能否就時程與預算提供更多說明？是否仍預期在明年年初前完成？

Pete, do you want to talk about the time line?

Pete，你想談談時程嗎？

Sure, yes. And then I'll pass it over to Nathan to talk about budget. Yes, I mean, it's going to be ongoing next year. We're going to manage the construction of TSF #2 with the amount of space that we have in TSF #1 as well as the open pit. So we're going to proceed along as fast as we can construct that project.

當然，可以。之後我會把問題交給 Nathan 談預算。是的，我的意思是，這項工作明年會持續進行。我們將在 TSF #1 以及露天礦坑現有可用空間的配合下，管理 TSF #2 的施工。因此，我們會以能夠建造該專案的最快速度推進。

Yes. And Jake, on a budget -- from a budget perspective, we're expecting total costs to come in around $4 million for just about everything involved, all-encompassing. We've paid a bit already on some larger equipment, and we're expecting to make another sizable payment by the end of the year. And then the rest of it will be labor and materials as we build the foundations as well as a lot of dosing work on site.

是的。Jake，就預算而言——從預算角度來看，我們預期所有相關項目的總成本約為400萬美元，幾乎涵蓋所有內容、全包式。我們已經在一些大型設備上支付了一部分款項，並預期在年底前再支付一筆可觀的款項。其餘部分將是勞務與材料成本，包含我們建造基礎工程，以及在現場進行大量加藥（dosing）作業。

And the filter press will be ready for pick up in December 15. So we're going to put it on a freighter to Mexico. So we'll have it possibly by year-end or in January. And steel construction work has commenced in Durango.

而且濾壓機將於12月15日可供提貨。我們會把它裝上貨輪運往墨西哥，因此可能在年底前或1月收到。另外，鋼構施工已在杜蘭戈（Durango）開始。

Yes. The steel construction is underway.

是的。鋼構施工正在進行中。

Okay. That's helpful. And then just on the exploration front, I mean, it seems like that's something that's going to be a top priority heading into next year. I mean you mentioned, David, you're building up the exploration team still. Do you have any update on when we should expect to see some details on next year's program and budget?

好的，這很有幫助。接著就勘探方面而言，我的意思是，看起來這將是你們明年優先事項之一。David，你提到你們仍在擴編勘探團隊。你們是否能更新一下，我們何時可以看到明年計畫與預算的一些細節？

Yes, in December, mid-December. We'll disclose our budgets. We're just going over that now, but it's going to be a minimum of what we had budgeted for this year, 11,500 meters, possibly more depending on the targets.

是的，在12月、12月中旬。我們會披露我們的預算。我們目前正在檢視，但至少會達到我們今年編列的最低水準：11,500公尺，視目標而定，可能更多。

The next question comes from Heiko Ihle from H.C. Wainwright.

下一個問題來自 H.C. Wainwright 的 Heiko Ihle。

Just building a bit on what Jake has said, I mean, you were talking about your secured deposits on the long lead items for the TSF. Can you just sort of give a little bit more color on what is left both on which equipment and how much in dollar terms?

延續 Jake 的問題，你們提到已就 TSF 的長交期項目支付了擔保性訂金。你能否再多說明一下，剩下的是哪些設備，以及以金額來看大約還有多少？

Pete? Do you want to talk about that?

Pete？你想談談這個嗎？

Yes. Sure. So I mean a dry stack process, the main component is going to be the filter presses. So those are the things that we've already put a down payment on. Regarding the steel structure, that's just the building essentially and that's an open-air building because of the climatic conditions in Mexico, as you know. And then there's conveyors. And those would be the 3 main components, if we just lump those into 3 things. So we've started on the steel structure, as I said, and started incurring cost us on that. We've placed the deposit on the filter press. And yet -- we haven't yet purchased the conveyors.

是的，當然。乾式堆疊流程的主要組成會是濾壓機。因此，那些是我們已經支付訂金的項目。至於鋼構，那基本上就是建築本體，而且由於墨西哥的氣候條件（你也知道），那是一座露天式建築。然後還有輸送帶。如果把它們歸納成三項，這三個會是主要組成。我剛才提到，我們已開始鋼構並開始產生成本；我們也已對濾壓機支付訂金。而——我們尚未購買輸送帶。

Does that answer your question, or do you want more specific detail with respect to the budget?

這樣有回答你的問題嗎？還是你希望就預算提供更具體的細節？

Well, I mean, if you're willing to provide more color, that'd be great.

嗯，我的意思是，如果你願意提供更多說明，那就太好了。

Yes, Heiko, it's Nathan here. I can provide a bit of color. So as I mentioned in responding to Jake, it's about $4 million all in. Filter press come in just over $1 million. The steel construction and the labor associated with that will be somewhere in the range of $1.5 million to $2 million. And then the remaining, the conveyors and other pieces will round it out to the $4 million we talked about.

是的，Heiko，我是 Nathan。我可以補充一些說明。如同我在回覆 Jake 時提到的，總計約400萬美元。濾壓機略高於100萬美元。鋼構施工及其相關勞務成本大約會在150萬至200萬美元之間。然後其餘部分，包括輸送帶與其他項目，將補足到我們所談的400萬美元。

Got it. Okay. You got your G&A down to less than $700,000. I assume a good part of that is the lack of travel. But are you looking into any other cost savings measures going forward? I mean I know you hinted at it in the release that you did something. And if so, what is it? And how much do you think you can squeeze out?

了解。好的。你們把 G&A 降到低於70萬美元。我猜其中很大一部分是因為沒有出差。但你們是否也在研究其他節省成本的措施以因應未來？我的意思是，我知道你們在新聞稿中暗示做了一些事情。如果是的話，是什麼？你覺得還能再擠出多少？

Yes, sure, Heiko, I'll take that one. We've made a lot of efforts, especially after 2018 and in 2019 to reduce our G&A down from close to $1 million in a quarter, if not higher in many quarters. And so we're still looking for improvement there. Obviously, you can see we've made a few additional ones this quarter. Yes, lack of travel, but we are doing some more marketing and a lot more virtual presentations and virtual conferences and getting the message out there about Avino.

好的，當然，Heiko，這題我來回答。我們做了很多努力，特別是在2018年之後以及2019年，將我們的 G&A 從每季接近100萬美元（許多季度甚至更高）降下來。因此我們仍在尋求進一步改善。很明顯你也看到，我們本季又做了一些額外的調整。是的，出差減少，但我們也在做更多行銷，以及更多線上簡報與線上會議，讓市場更了解 Avino。

And of course, with us being down for 3 months, yes, we took a hard look at everything again for the third, fourth, fifth time. But we're going to do what we can to try and squeeze a bit more out. But at the same time, we understand that there's marketing efforts that need to be incurred and a lot of other professional fees that still do need to be incurred on a quarterly basis.

當然，由於我們停工了3個月，是的，我們再次非常仔細地檢視所有事項，這已經是第三、第四、第五次了。但我們會盡力再擠出一些成本。不過同時，我們也理解仍需要發生行銷支出，以及許多其他專業費用，這些仍必須按季度支付。

All right. And purely out of curiosity, and then this won't, obviously, make a big difference in my model, but I mean, I noticed that you still had a small loss from discontinued ops related to Bralorne. And your MD&A says it's for a settlement of working capital items. Just making sure that's the last thing related to Bralorne. Is there any other thing coming in the quarters to come?

好的。純粹出於好奇——這顯然不會對我的模型造成很大影響——但我注意到你們仍有一小筆與 Bralorne 相關的停業營運損失。你們的 MD&A 說這是為了結算營運資金項目。只是想確認，這是否是與 Bralorne 相關的最後一件事？未來幾個季度還會有其他事項嗎？

No, there's nothing coming. That was just some final settlements more in Q2 and a couple of movements, like little movements in Q3, but that's it.

不，不會再有了。那只是一些最終結算，主要在第二季，第三季也有幾筆小幅變動，但就到此為止。

The next question comes from Joseph Reagor from ROTH Capital Partners.

下一個問題來自 ROTH Capital Partners 的 Joseph Reagor。

So most of what I wanted to ask has already been touched on. But I guess, on the strike and the restart, it didn't sound like you guys had a specific time frame you were willing to give for getting back to full operations, and there was some tone about looking forward to next year. What should we be expecting as far as production rates for this quarter? Like do you think you're going to get 1 full month of production? 1.5 months? What does that look like?

所以我大部分想問的問題其實都已經提到了。不過我想，關於罷工以及復工這件事，聽起來你們並沒有給出一個願意承諾的、恢復到全面營運的明確時間表，而且語氣上也有點像是在期待明年。那就本季而言，我們應該如何預期產量/生產率？例如你們覺得本季能有完整 1 個月的生產嗎？1.5 個月？大概會是什麼樣子？

We're not planning to restart, so until next year, unless the negotiations with Panuco go very quickly. So don't look at this year, start of January.

我們不打算在今年重啟，所以要等到明年，除非與 Panuco 的談判進展非常快。所以不要看今年，從 1 月初開始算。

Okay. And then when you guys do restart, probably a question for Nathan, what do you think the working capital swing would be on a cash basis?

好的。那你們一旦重啟之後，這題可能要問 Nathan，你認為以現金基礎來看，營運資金的變動幅度會是多少？

Joe, good question. So we think there's going to be some additional start-up costs of a couple of million. Obviously, we'll be able to start underground activities sooner than we will milling activity. So there will be a lag from getting stock off -- from mining underground, stock off at surface through the mill and then sold off to our buyers. So I think if I were you, I would say, about a 1.5 months lag -- or 1 month to 1.5 months lag. So maybe we'll incur a couple of million in costs that we won't get paid for until, say, 45 days down the road.

Joe，問得好。我們認為會有一些額外的啟動成本，大約幾百萬美元。顯然，我們能比磨礦作業更早恢復地下作業。因此，從地下採礦把礦石運到地表堆存、再經由磨礦廠處理，最後賣給買家，這中間會有一段時間差。我想如果是你，我會說大約有 1.5 個月的落後期——或 1 個月到 1.5 個月的落後期。所以我們可能會先發生幾百萬美元的成本，但要到大概 45 天之後才會收到款項。

One of the things we do want to highlight is we have some fairly strong liquidity and a decent balance sheet and very low debt at this time, so we're feeling pretty confident that we'll be able to go through and not take a massive hit to our balance sheet.

我們想強調的一點是，目前我們的流動性相當強、資產負債表也不錯，而且負債非常低，所以我們相當有信心能夠度過這段期間，而不會讓資產負債表遭受重大衝擊。

The next question comes from Matthew O'Keefe from Cantor Fitzgerald.

下一個問題來自 Cantor Fitzgerald 的 Matthew O'Keefe。

Yes, just to follow-on Reagor's comments there, the start-up, so you're not -- like what's the sort of delay in getting restarted, again? Because after the COVID shutdown, which I know was a lot shorter, it was like 2 or 3 weeks and you were up and running. And just wondering why it's taking longer this time. And what the -- and is -- there's anything else that you can be doing at this time, be it development or other things, that don't require an impact on tailings?

是的，延續 Reagor 剛才的評論，關於啟動——所以你們不是——像是這次重啟的延遲大概是什麼原因？因為在 COVID 停工之後（我知道那次短很多），大概 2 到 3 週你們就恢復運轉了。想請問為什麼這次要更久？另外，目前是否還有其他你們可以做的事情，例如巷道開發或其他不需要影響尾礦的工作？

Sure. We will -- we're hoping to start to get in the underground before the year is over and start the underground development work. But during this, the pandemic and the strike and the closure, we've decided that this is the best time to negotiate with the townspeople. And on the Panuco de Coronado, there are a few people there that had opposed traditional tailings. So we've got the governor's office helping us to educate them and get their blessing to proceed with construction so we don't -- we're not interrupted. Because we had started on that a while ago, probably a couple of years ago, and then there were some issues. So we found other areas to put tailings, but we don't want to have that problem anymore. We want to go to full construction on TSF #2. So we're hoping to get their blessing in the next couple of weeks here.

當然。我們——希望在年底前能開始進入地下，並展開地下開發工作。但在這段期間，疫情、罷工以及停工之下，我們決定這是與當地居民協商的最佳時機。在 Panuco de Coronado，那裡有少數人反對傳統尾礦方式。因此我們請州長辦公室協助我們進行宣導教育，並取得他們的同意，好讓我們能繼續施工而不被中斷。因為我們在一段時間前就開始做這件事了，可能是兩年前，之後出現了一些問題。所以我們找了其他地方堆放尾礦，但我們不希望再有這種問題。我們希望能全面推進 TSF #2 的建設。因此我們希望在接下來幾週內能取得他們的同意。

Okay. And I apologize if you mentioned this already, but so what's the tailings capacity outside of that right now? I mean it's pretty -- is it quite limited then, I'm guessing?

好的。若我剛才有漏聽先跟你道歉，但目前在那之外的尾礦容量是多少？我的意思是，應該——我猜容量相當有限，對嗎？

Yes. There's probably about a quarter or just over a quarter, maybe 3 or 4 months' capacity in TSF #1. It could be expanded, but we don't really want to. I mean we could build another buttress. And then in the open pit, there's probably 3 or 4 months of capacity. So once we nailed down the timing on getting the social blessing and construction, then we're going to time when we're going to start up milling activities. So we're hoping that this will be all done very shortly.

是的。TSF #1 大概還有四分之一或略多於四分之一的容量，可能可用 3 到 4 個月。它可以擴建，但我們其實不太想。我是說，我們可以再建一道支撐壩（buttress）。另外在露天礦坑裡，大概也還有 3 到 4 個月的容量。所以一旦我們把取得社會同意與施工的時間點敲定，我們就會安排何時開始磨礦作業的重啟。我們希望這些都能在很短時間內完成。

Okay. Great. And then just switching gears a bit on the development. So I know one of the things was connecting the 2 portals so you'd have -- be able to improve your throughput. What's the timing on that? And what will your mining rates be sort of limited to until you get that development completed?

好的，很好。接著稍微換個話題談開發。我知道其中一件事是把兩個坑口（portal）連通，這樣你們就能——提升處理量。這件事的時程是什麼？在完成這項開發之前，你們的採礦率大概會受限到什麼程度？

Carlos, are you on the line? Do you want to mention when you think we can link up and how long it will take to get level 9 to level 6?

Carlos，你在線上嗎？你要不要提一下你認為我們何時能把它連起來，以及把第 9 水平連到第 6 水平需要多久？

Yes, sure, David. Thank you, Matt, for your questions, Carlos is here. Yes, so we have discussed this connection for the last few quarters. But yes, so we are about 400 meters, as we have mentioned before, to connect both portals. So it will take something from 5 to 6 months to complete the job. We have the equipment, it's just a matter of restart mining there and rehire the jumbo operators and all miners and everything. So 5 months -- I would say, 5 months to complete the job and connect both portals.

是的，當然，David。謝謝你，Matt，提出問題，Carlos 在這裡。是的，我們過去幾個季度一直在討論這個連通工程。是的，如同我們之前提過的，我們距離連通兩個坑口大約還有 400 公尺。因此完成這項工作大概需要 5 到 6 個月。我們設備都已經有了，主要就是要重啟那邊的採礦，並重新聘回鑽臂台車（jumbo）操作員、所有礦工等等。所以 5 個月——我會說大概 5 個月就能完成並連通兩個坑口。

Okay. And your throughput -- what's kind of your throughput going to be limited to until you get that completed? And then where do you expect to go after that's completed?

好的。在那完成之前，你們的處理量大概會受限在什麼水準？完成之後你們預期會提升到哪裡？

Yes, as we have discussed also in the past, yes, at the moment, we have mill capacity for 2,500 tonnes per day. So I think easily, we can reach 2,600, 2,700, 2,800 tonnes per day, so average, and then have a booster on surface. So I think that we will cover by that.

是的，如同我們過去也討論過的，目前我們的磨礦廠產能是每日 2,500 噸。所以我認為我們很容易就能達到每日 2,600、2,700、2,800 噸的平均水準，然後在地表再加一個增壓/提升設備（booster）。所以我想我們可以靠這樣來達成。

(Operator Instructions) The next question comes from Bruce Shapiro, a private investor.

（接線員指示）下一個問題來自私人投資人 Bruce Shapiro。

Most of my question about commencement of operations were answered prior, but I was curious about the strike itself. Can you discuss what was asked for and what was given to settle the strike?

我關於開始營運的大部分問題先前都已經得到解答，但我對罷工本身感到好奇。你們能談談對方提出了什麼要求，以及為了結束罷工你們做了哪些讓步嗎？

Well, that's not disclosed. But the strike threat started last year when we closed the San Gonzalo mine because we were laying off 75 workers. We made some concessions, and we moved half those people over to the Avino mine. And then the local labor leaders kept making more demands, not financial but operational, and we couldn't live with that. So they struck, and then we made a settlement, which is being finalized now.

嗯，這部分不便揭露。不過罷工威脅是從去年開始的，當時我們關閉 San Gonzalo 礦，因為我們要裁撤 75 名員工。我們做了一些讓步，並把其中一半的人調到 Avino 礦。之後當地工會領袖又不斷提出更多要求，不是財務方面，而是營運方面的要求，而我們無法接受。所以他們就罷工了，然後我們達成了和解，目前正在完成最後定案。

Was the strike in any way connected with the coronavirus and concern about that?

這次罷工是否在任何程度上與新冠病毒以及對此的擔憂有關？

No.

沒有。

This concludes the question-and-answer session. I would like to turn the conference back over to Mr. David Wolfin for any closing remarks.

問答環節到此結束。我想把電話會議交回給 David Wolfin 先生，請他做結語。

Thank you to everyone that took the time today to listen to our Q3 earnings call and webcast. As I said earlier, we appreciate the patience of all our stakeholders, and we look forward to resuming normal operations as soon as we can.

感謝今天撥冗收聽我們第三季財報電話會議與網路直播的各位。如我先前所說，我們感謝所有利害關係人的耐心，也期待能在可行的情況下盡快恢復正常營運。

As we look towards the future, we are optimistic that metal prices will continue to rise, and we believe that the demand for metals will continue to grow. Further, Avino has fostered its resiliency, initiative and enterprise over its 52-year history by having a large land position in a prolific area with a producing mine and multiple exploration targets, surviving the lean times, implementing cost-reduction initiatives when needed and knowing the right time to expand that will improve operations. We are committed to bringing value to our shareholders. We hope that everyone is staying healthy and safe during COVID. And just yesterday, Pfizer said that early data shows that their vaccine to be 90% effective. So we hope that this is the case and more vaccines around the world will start proving the same.

展望未來，我們樂觀認為金屬價格將持續上漲，且我們相信金屬需求將持續成長。此外，Avino 在 52 年的歷史中，憑藉在富饒地區擁有大面積土地、具生產中的礦山與多個勘探目標，在景氣低迷時仍能生存，在需要時推動降本措施，並掌握適當的擴張時機以改善營運，從而培養出韌性、主動性與企業精神。我們致力於為股東創造價值。我們也希望大家在 COVID 期間都能保持健康與安全。就在昨天，輝瑞（Pfizer）表示早期數據顯示其疫苗有效率達 90%。我們希望確實如此，並且全球更多疫苗也將開始證明有相同效果。

Thanks, again, everyone, and have a good day.

再次感謝各位，祝大家今天愉快。

Thank you. This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

謝謝。今天的電話會議到此結束。您可以掛斷電話線。感謝您的參與，祝您有美好的一天。