Avino Silver & Gold Mines Ltd (ASM) 2021 Q1 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver & Gold Mines First Quarter 2021 Conference Call and Webcast. (Operator Instructions) And 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 2021 年第一季電話會議與網路直播。（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, Manager of Investor Relations. 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 Ltd. Q1 2021 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 Ltd. 2021 年第一季財務結果電話會議與網路直播。今天與會的有公司總裁兼執行長 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.

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的風險、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。

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.

除非適用法律另有要求，公司無意且不承擔更新該等前瞻性陳述或資訊的任何義務。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，或我們於昨日發布的新聞稿。

I would like to remind everyone, 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?

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

Thanks, Jen. Good morning, everyone, and welcome to Avino's Q1 2021 Financial Results Conference Call and Webcast. Thanks for joining us.

謝謝，Jen。各位早安，歡迎參加 Avino 2021 年第一季財務結果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 the MD&A are now available on our website. On today's call, we will cover the highlights of our first quarter 2021 financial and operating performance and our plans for Q2 2021, 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 2021 年第一季財務與營運表現重點，以及我們對 2021 年第二季的計畫，之後將開放提問。除非另有說明，所有數字均以美元計。

It's hard to believe that it has been more than a year since we were first faced with the pandemic and the forced operational shutdowns. As I mentioned during our previous quarter and year-end call, I would like to say a special thank you to the management team in Mexico, led by Carlos Rodriguez, who adapted quickly and carried out critical tasks at the mine to ensure the safety of our employees and surrounding communities. In addition, I would like to extend my appreciation to our shareholders for their support and patience during last year while we experienced the temporary shutdowns due to COVID-19 and the temporary shutdown due to the strike at the mine.

很難相信，自從我們首次面對疫情與被迫停工以來，已經超過一年。如同我在上一季與年終電話會議中提到的，我要特別感謝由 Carlos Rodriguez 領導的墨西哥管理團隊，他們迅速調整並在礦場執行關鍵工作，以確保員工與周邊社區的安全。此外，我也要感謝股東在去年我們因 COVID-19 而暫時停工，以及因礦場罷工而暫時停工期間所給予的支持與耐心。

The 12-week strike lasted from July to October 2020. As the labor authority office in Mexico City remains closed due to COVID-19 protocols, the company is working diligently with its partners to ratify the agreement. The company is committed towards restarting production and mining operations as soon as possible.

這場為期 12 週的罷工自 2020 年 7 月持續至 10 月。由於墨西哥城的勞工主管機關辦公室因 COVID-19 防疫規範仍維持關閉，公司正與合作夥伴積極合作以完成協議的核准（ratify）。公司致力於盡快重啟生產與採礦作業。

Mining in Mexico, in general, was significantly interrupted last year as a result of COVID-19 with most lines and projects suspended for a number of months before resuming operations under strict health guidelines. Global production of silver declined in 2020 by 5.9% to hit 784 million ounces as reported by Metals Focus. However, global production is expected to rebound strongly in 2021, with an increase estimated at 8.2% to 848 million ounces.

整體而言，墨西哥採礦業去年因 COVID-19 而受到顯著干擾，多數產線與專案停擺數月，之後才在嚴格的健康指引下恢復營運。根據 Metals Focus 報告，2020 年全球白銀產量下降 5.9% 至 7.84 億盎司。然而，預期 2021 年全球產量將強勁反彈，估計增加 8.2% 至 8.48 億盎司。

According to the Chamber of Mexico, sector-wide investment fell 50% compared to pre-COVID estimates dropping from $5 billion to $2.5 billion. However, the industry is set for a rebound in 2021, with many companies announcing increased investments in projects across Mexico. This also goes for Avino, as we announced during the first quarter, an increase in our capital expenditures and exploration budget from $6 million to $8 million, up to between $9 million and $11 million. Additionally, hiring has begun for experienced mine workers at site. We are definitely moving closer to a recommencement of operational activities. Our goal is to ensure that we reopen properly with all guidelines, including labor and health in place.

根據墨西哥商會資料，整體產業投資較 COVID-19 前的估計下滑 50%，由 50 億美元降至 25 億美元。然而，產業可望於 2021 年反彈，許多公司已宣布增加在墨西哥各地專案的投資。Avino 亦是如此：我們在第一季宣布提高資本支出與探勘預算，從 600 萬美元提高至 800 萬美元，並上調至 900 萬至 1,100 萬美元的區間。此外，礦區已開始招募具經驗的礦場員工。我們確實正更接近恢復營運活動。我們的目標是確保在所有指引（包括勞工與健康）到位的情況下妥善復工。

During the quarter, the 2021 drill program remains a top focus with the objectives of locating new mineralized zones within the property and to confirm continuity of mineralization in the current Avino ET production area. At the end of Q1, 1,870 meters were drilled at Santiago and El Trompo veins.

本季期間，2021 年鑽探計畫仍是首要重點，目標為在礦權範圍內尋找新的礦化帶，並確認目前 Avino ET 生產區的礦化延續性。第一季末，於 Santiago 與 El Trompo 礦脈共完成 1,870 公尺鑽探。

Also in the quarter, we continued moving forward with the proposed dry stack tailings storage facility, TSF #2, which is on privately owned Avino land is permitted and is currently in a final stage prior to commencing construction. We expect this project will now be completed during Q4 2021, and it should add an additional 8 to 10 years of tailing capacity based on the current mill throughput rate.

同樣在本季，我們持續推進擬議的乾式堆疊尾礦貯存設施（TSF #2）。該設施位於 Avino 私有土地上，已取得許可，目前正處於動工前的最後階段。我們預期此專案將於 2021 年第四季完成，並可在目前磨礦廠處理量的基礎上，增加約 8 至 10 年的尾礦容量。

We chose dry stack tailings for its environmental safety and economic advantages with its high solid content. This significantly improves safety and stability and reduces the need to extract water from local sources by recycling the water removed from the tailings. In addition, it requires less land, which in turn results in a small -- in smaller environmental footprint.

我們選擇乾式堆疊尾礦，是因其高固含量所帶來的環境安全與經濟優勢。此作法可顯著提升安全性與穩定性，並透過回收自尾礦中移除的水，降低自當地水源取水的需求。此外，其所需土地較少，進而帶來較小的環境足跡。

Over the years, we have been proactive in developing a partnership between Avino and the people of Durango and the 4 communities surrounding the mine site. We're pleased to announce that Avino has just recently hired an ESG manager in Durango to help drive ESG initiatives forward and contribute to the operational continuity of the business under the principles of sustaining and social responsibility.

多年來，我們一直積極促成 Avino 與杜蘭戈（Durango）人民及礦區周邊 4 個社區之間的合作夥伴關係。我們很高興宣布，Avino 近期已在杜蘭戈聘任一位 ESG 經理，以協助推動 ESG 計畫，並在永續與社會責任原則下，為業務的營運延續性作出貢獻。

During the quarter, we have helped in many ways, including supported the town of San Jose de Avino by loaning our CAT dozer, paying for the fuel and operator time to help expand the town cemetery. We provided multiple bags of cement to fix access roads in the town. Provided information to the communities on the safety of dry stack tailings, and we'll follow up again with the new ESG manager.

本季期間，我們以多種方式提供協助，包括：支援 San Jose de Avino 鎮，出借我們的 CAT 推土機，並支付燃料與操作人員工時，以協助擴建鎮上的墓園；提供多袋水泥以修復鎮內聯外道路；向社區提供乾式堆疊尾礦安全性的相關資訊，並將由新任 ESG 經理再進一步追蹤。

Even though we still have not recommenced operations, the community surrounding the mine site know that Avino will lend a supportive hand when needed. In addition, we have received PPE and hundreds of rapid tests to ensure the safety and good health of our workforce. Avino is the only source of employment in the area. And once we are fully operational again, we will provide steady employment to the people of the Durango and nearby communities.

儘管我們仍尚未恢復營運，礦區周邊社區知道 Avino 在需要時會伸出援手。此外，我們已取得個人防護裝備（PPE）以及數百份快速檢測，以確保員工隊伍的安全與健康。Avino 是該地區唯一的就業來源。一旦我們全面恢復營運，將為杜蘭戈及附近社區居民提供穩定的就業機會。

Many people in the communities are keen to get back to work at the mine, and Avino has the full support of the local and state governments. The restart of production activities is expected to provide significant direct economic benefits and stimulus for the local communities.

社區中許多人都渴望回到礦場工作，而 Avino 也獲得地方與州政府的全力支持。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。

During the first quarter, silver was a bit slow to move with an 8.2% decrease compared to the full year 2020. The price range from a low of $24.67 on March 25 to a high of $29.59 on the first of February. Coincidentally, this was the day of the propelled silver squeeze. Gold prices range from a low of $16.83 on March 30 to a high of $19.43 on January 4. The metal prices have continued to be volatile, with silver currently in the low $27 range and gold staying slightly above $1,800 level. With rapid transition to clean technology being legislated in the U.S.A., silver and gold will be in demand, and we expect both will shine.

第一季期間，白銀走勢稍顯遲緩，較 2020 全年下跌 8.2%。價格區間自 3 月 25 日低點 24.67 美元至 2 月 1 日高點 29.59 美元。巧合的是，當天正是所謂白銀擠壓（silver squeeze）被推動的一天。黃金價格區間自 3 月 30 日低點 16.83 美元至 1 月 4 日高點 19.43 美元。金屬價格持續波動，目前白銀約在 27 美元出頭區間，黃金則維持在略高於 1,800 美元的水準。隨著美國立法推動快速轉向潔淨科技，白銀與黃金將有需求，我們預期兩者都將發光發亮。

Not to be overlooked is the price of copper. It has been on the tear and will play a key role in the new green economy. This is definitely worth mentioning for Avino as copper makes up at least 1/3 of our revenue contribution when in production. Last quarter, copper was sitting around $3.50 per pound, and now it's closing in on $4.75 per pound.

同樣不容忽視的是銅價。銅價一路走強，並將在新的綠色經濟中扮演關鍵角色。這點對 Avino 特別值得一提，因為在生產期間，銅至少占我們營收貢獻的三分之一。上一季銅價約為每磅 3.50 美元，而現在已逼近每磅 4.75 美元。

The copper price is steadily moving upward on low inventories and anticipated rebounds of the global economy: growth of industrial activity, strong demand by China, clean energy drive, global vaccination rollout and a weaker U.S. dollar. We believe that the push towards a green economy and the fact that we mine metals needed, we certainly benefit -- will certainly benefit our shareholders going forward.

在庫水準偏低以及全球經濟預期反彈的帶動下，銅價正穩步走高：工業活動成長、中國強勁需求、潔淨能源推動、全球疫苗接種推進，以及美元走弱。我們相信，邁向綠色經濟的趨勢，加上我們開採的是所需金屬，我們確實將受惠——並將在未來確實讓股東受益。

I wanted to touch briefly on February 1, silver squeeze propelled Avino share price to a high of USD 2.82 on a volume of 130 million on that 1 day. We also have the power of the Reddit traders and the social media drove up the price of silver and silver mining stocks that gained and created a trading frenzy. We look forward to growing demand from these new investors and increasing the diversity of our shareholder base.

我想簡要提一下2月1日的情況，白銀擠壓（silver squeeze）在那一天以1日成交量1.3億股推動Avino股價升至每股2.82美元的高點。我們也看到Reddit交易者與社群媒體的力量，推升白銀及白銀礦業股價格，並引發交易狂潮。我們期待這些新投資人帶來的需求成長，並提升我們股東基礎的多元性。

We encourage our shareholders new and long term to check out our website often for news releases, presentations and all public information.

我們鼓勵新舊股東經常瀏覽我們的網站，以取得新聞稿、簡報以及所有公開資訊。

I will now ask Nathan Harte, Avino's Chief Financial Officer, to present the financial results for Q1 2021.

接下來我將請Avino的財務長Nathan Harte報告2021年第一季的財務結果。

Thank you, David. It's my pleasure to be on the call, and I would like to welcome everyone who has joined us and is viewing our presentation today.

謝謝你，David。很高興能參與這通電話會議，也歡迎今天加入我們並觀看簡報的各位。

As you can imagine, Avino's operating results were impacted by a lack of production at the Avino mine. Having said that, we are now in the strongest financial position in Avino's 53-year existence. Our cash position at the end of the quarter was $27 million, which represents 125% increase compared to $12 million at the beginning of the year. Working capital at quarter end was $31 million compared to $15 million at the beginning of the year, which represents an increase of over 100%.

如各位所想像，Avino的營運結果受到Avino礦場缺乏產量的影響。儘管如此，我們目前處於Avino 53年歷史以來最強勁的財務狀況。季末現金部位為2,700萬美元，較年初的1,200萬美元增加125%。季末營運資金為3,100萬美元，較年初的1,500萬美元增加逾100%。

We continued with our plans to reduce debt during Q1, having lowered debt liabilities by a further $800,000 during the first quarter. This brings total debt reduction since the beginning of 2020 up to $8 million. We are happy to report that we expect to be debt-free other than payables and equipment leases by the end of Q3 of 2021, which allows Avino to maintain significant financial flexibility moving forward.

我們在第一季持續推動降債計畫，於第一季再將債務負債降低80萬美元。自2020年初以來，累計降債已達800萬美元。我們很高興報告，預期在2021年第三季末，除應付帳款與設備租賃外，我們將達到無負債狀態，這使Avino在未來能維持顯著的財務彈性。

During Q1, renewal revenues were generated. Any revenues generated were a result of settlement of final invoices from 2020 as and the renewal concentrate shipments during Q1 2021 and as such, no silver equivalent ounces sold. Avino reported mine operating losses of $700,000 for the first quarter, which is made up of $200,000 in standby care and maintenance costs and $500,000 in depreciation and depletion.

第一季產生了少量收入。任何收入主要來自2020年最終發票的結算，以及2021年第一季的精礦出貨，因此並無白銀當量盎司的銷售。Avino第一季礦場營運虧損為70萬美元，其中包含20萬美元的待命照護與維護成本，以及50萬美元的折舊與耗竭。

Losses before interest, taxes, depreciation and amortization were $1.7 million compared to earnings of $0.4 million in Q1 of 2020. Adjusted losses for Q1 2021 were $900,000 compared to adjusted earnings of $400,000 in Q1 of 2020. Avino reported net losses after taxes from continuing operations of $1.8 million or $0.02 per share for the first quarter, which includes noncash losses of $1 million relating to the exercise of warrants in which Avino received proceeds of over $700,000 during the quarter.

息稅折舊攤銷前虧損（EBITDA）為170萬美元，相較於2020年第一季獲利40萬美元。2021年第一季調整後虧損為90萬美元，相較於2020年第一季調整後獲利40萬美元。Avino第一季持續營運稅後淨損為180萬美元，或每股0.02美元，其中包含與認股權證行使相關的100萬美元非現金損失；該等認股權證行使使Avino於本季收到超過70萬美元的款項。

Capital expenditures for the first quarter were $400,000. With the strike action, the company took specific measures to limit any unnecessary capital expenditures during the quarter, except for exploration activities, which have continued to ramp up. Any necessary projects have continued as planned and include the new dry stack tailing storage facility equipment. We expect that capital and exploration expenditures will increase over the coming quarters as we ramp up exploration and move forward with the tailings upgrades.

第一季資本支出為40萬美元。由於罷工行動，公司在本季採取特定措施以限制任何不必要的資本支出，但勘探活動除外，勘探已持續加速推進。必要的專案仍按計畫進行，包括新的乾式堆疊尾礦儲存設施設備。我們預期，隨著勘探加速以及尾礦升級計畫推進，未來幾季的資本與勘探支出將增加。

Finally, I want to reiterate the strength of Avino's financial position. As David previously mentioned, February 1 had quite an impact on our financial position, and I want to thank all of our corporate partners and stakeholders who are working diligently alongside us and ensuring that we are well prepared to take advantage of the increased valuation on this day. It is because of everyone's hard work in preparation that we're in a position to bolster our treasury by an additional $17 million at a valuation over 50% higher than today's current share price.

最後，我想再次強調Avino財務狀況的強勁。如David先前提到的，2月1日對我們的財務狀況產生了相當大的影響；我也要感謝所有與我們並肩努力的企業夥伴與利害關係人，確保我們已充分準備好把握當天估值上升所帶來的機會。正因為大家事前的辛勤準備，我們才能在估值較今日現行股價高出逾50%的水準下，將公司庫存資金（treasury）額外增加1,700萬美元。

We believe that this is a sign of things to come and that Avino continues to remain undervalued with a significant resource base and a balance sheet that would allow Avino to create future shareholder value.

我們相信這是未來趨勢的徵兆；Avino擁有可觀的資源基礎與資產負債表，仍然被低估，並具備創造未來股東價值的能力。

We continue with our plans to reducing debt. And at the end of the quarter, we maintained over $30 million in liquidity, including our investment holdings. With cash representing over 7x our debt liabilities at the end of the quarter, we are moving forward with increased exploration activities and continuing with our plans to add value for our shareholders and stakeholders throughout the rest of 2021.

我們持續推動降債計畫。季末我們維持超過3,000萬美元的流動性（包含投資持有部位）。季末現金為債務負債的7倍以上，我們正推進更多勘探活動，並持續依計畫在2021年其餘期間為股東與利害關係人創造價值。

I will now hand it back over to David for a discussion on exploration and what Avino has planned for Q2.

接下來我把時間交還給David，討論勘探以及Avino在第二季的規劃。

Thank you, Nathan. Our regional plans for the year called for a 12,000 meter drill program, which was increased in March to a total of 30,600 meters of drilling. The increased drilling program is fully funded. We will continue in Q2 to target several areas of the Avino property, including the Avino vein, the Santiago vein and the El Trompo vein.

謝謝你，Nathan。我們今年的區域計畫原本規劃12,000公尺的鑽探計畫，並於3月提高至總計30,600公尺的鑽探。增加後的鑽探計畫已全額到位資金。我們將在第二季持續鎖定Avino礦區內的數個區域，包括Avino礦脈、Santiago礦脈以及El Trompo礦脈。

To date, 3,763 meters have been drilled. We are currently waiting for assays to be received. Another potential high-grade target that has been tested is called the La Malinche vein, which is -- which will be tested in Phase 2. It is similar in style to the San Gonzalo vein, a low-sulphidization epithermal vein. More exploration work is needed to confirm our understanding of the system.

截至目前已鑽探3,763公尺。我們正等待化驗結果回報。另一個已測試的潛在高品位目標稱為La Malinche礦脈，將在第二階段（Phase 2）進行測試。其型態與San Gonzalo礦脈相似，屬於低硫化（low-sulphidization）淺成熱液（epithermal）礦脈。仍需要更多勘探工作，以確認我們對該系統的理解。

It is said that this vein was named hundreds of years ago. And the Avino mine was discovered in 1558 by Captain Ibarra of Cortez's army. It's quite possible the vein was named at that time by the miners in honor of Marina, La Malinche, who is the mother of Cortez's children. Future exploration targets may not be limited to these 3 areas. And during the year, our priority targets may change in geological interpretations on other areas present enhanced opportunity.

據說這條礦脈在數百年前就已命名。而Avino礦場於1558年由Cortez軍隊的Ibarra上尉發現。很可能當時礦工為了紀念Marina——La Malinche（Cortez子女之母）——而為該礦脈命名。未來的勘探目標不一定僅限於這三個區域；在一年當中，若對其他區域的地質解釋顯示機會提升，我們的優先目標也可能調整。

Preparations in Q2 are ongoing to recommence operations. The dry stack tailings project is going well and the completion will be pushed to Q4. Improvements to the Circuit 4 are ongoing. That will improve gold and silver recoveries through the use of new equipment. Avino's main focus for the next quarter is to recommence operating activities at the mine and carry on with the exploration program focused on locating new mineralized zones within the property and confirming continuity of mineralization in the current Avino ET production area.

第二季的復工準備正在進行中。乾式堆疊尾礦專案進展良好，完工時間將延後至第四季。第4迴路（Circuit 4）的改善也在進行中，將透過新設備提升金與銀的回收率。Avino下一季的主要重點是恢復礦場營運活動，並持續推動勘探計畫，聚焦於在礦區內尋找新的礦化帶，以及確認目前Avino ET生產區的礦化連續性。

Finally, it has always been our intention to ensure the health and safety of our employees and communities. And we continue to analyze situations in the Vancouver and Mexico and collaborate together to make best decisions that are most beneficial to the widest group, including all stakeholders.

最後，確保員工與社區的健康與安全一直是我們的初衷。我們也持續分析溫哥華與墨西哥的情勢，並共同協作，以做出對最廣泛群體（包括所有利害關係人）最有利的最佳決策。

We look forward to a productive second quarter and remainder of 2021. We anticipate a brighter rest of the year, including successful vaccine rollouts worldwide, unrestricted travel and hopefully, our Canadian borders will open up.

我們期待第二季以及2021年剩餘期間能有良好成果。我們預期今年後續將更為明朗，包括全球疫苗接種順利推進、旅行不再受限，並希望加拿大邊境能重新開放。

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

接下來我們進入問答環節。接線員？

(Operator Instructions) The 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 starting with exploration, you mentioned that you're waiting for assays to come in. Any color on the time line here? And then are you seeing any delays in turnaround times due to COVID?

先從勘探開始，你提到正在等待化驗結果回來。能否補充一下時間表？另外，因COVID的關係，你們是否看到回報週期有任何延遲？

It has been slow in getting them. Some have trickled in, but we're waiting for -- we want to complete the program on a particular vein before we release results. So it's hard to say, but in the next few weeks, we should have some news.

取得結果的速度一直偏慢。有些結果陸續進來，但我們在發布結果前，希望先完成某一條礦脈的整個計畫。因此很難說得很精確，不過在接下來幾週內，我們應該會有一些消息。

Got it. Okay. And then just on the back of that, are the Phase 1 and Phase 2 programs, are they sequential or concurrent?

了解。好的。接著延伸問一下，第一階段（Phase 1）與第二階段（Phase 2）計畫是依序進行，還是同時進行？

Jake, this is Peter here. Regarding the program, there are some areas like, for example, below ET that we have to wait until there's underground access. So we're kind of jumping back and forth just depending on drill availability and relative location. So to answer your question, I guess they would be more concurrent.

Jake，我是Peter。關於這個計畫，有些區域例如ET下方，我們必須等到有地下通道才能進入。所以我們會視鑽機可用性與相對位置，在不同區域之間來回切換。回答你的問題，我想它們會比較偏向同時進行。

Okay. That's helpful. And then just lastly on the tailings project. You mentioned that you might move forward with the PFS later this year. Assuming you do that and the PFS is positive, are you comfortable making a production decision on the back of the PFS? Or do you think you'd move forward with a full phase?

好的。這很有幫助。最後想再問一下尾礦專案。你提到你們可能會在今年稍晚推進 PFS。假設你們這麼做且 PFS 結果為正面，你們是否有把握在 PFS 的基礎上做出投產決策？還是你們認為會再推進到完整的可行性階段？

Saying we'll have the PFS this year is probably a little aggressive. I mean we're drilling, and it takes time to do that. So it really depends on the results of the PFS before we make a construction decision.

說我們今年就會有 PFS 可能有點太積極了。我的意思是我們正在鑽探，而這需要時間。所以在我們做出建設決策之前，真的要看 PFS 的結果而定。

Okay. But you'd be comfortable making a construction decision off the PFS, not necessarily moving to full feasibility.

了解。但你們會願意根據 PFS 來做建設決策，而不一定要進到完整可行性研究。

Jake, Peter here once again. I think it just depends on the risk that we're looking at in terms of that particular project. I think there's limited geological risk given that the tailings are equally disseminated. And that depends on the metallurgical work and the variability at that point in time. So I think it's too early to say at this point in time. But certainly, pending the results of the PFS, we'll evaluate and then make a decision at that point.

Jake，我是 Peter 再次回答。我認為這取決於我們對該特定專案所評估的風險。我認為地質風險有限，因為尾礦分布相當均勻。至於冶金工作以及當時的變異性，則要看進展情況。所以我覺得現在下結論還太早。但當然，在 PFS 結果出來之後，我們會評估並在那時做出決定。

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

下一個問題來自 H.C. Wainwright 的 Heiko Ihle。

This is Tyler Bisset on for Heiko. You talked about your drilling program in the release, and it's nice to see the increase in holes drilled that was initially announced on March 8. You mentioned that you're waiting for some assay results in the recent release. But from what you can see thus far, can you sort of guide us through the potential continuity you think you might see at Avino ET?

我是代替 Heiko 的 Tyler Bisset。你們在新聞稿中談到鑽探計畫，很高興看到相較於 3 月 8 日最初宣布的孔數有所增加。你提到在最近的公告中你們正在等待一些化驗結果。但就目前你們所看到的情況，能否帶我們了解一下你們認為在 Avino ET 可能會看到的延續性？

Sure. I can jump in there. So with respect to ET, a lot of those holes are drilled from underground. Well, all of those holes are drilled from underground. I should take that back. So we haven't started that drilling there as we have to do a bit of work in the underground, and then we have to blast a drift, cross-cut actually. So we can drill back across the deposits.

當然。我可以先回答。就 ET 而言，很多孔是從地下鑽的。其實全部都是從地下鑽的。我收回剛剛那句「很多」。所以我們還沒開始那邊的鑽探，因為我們需要先在地下做一些工作，然後還得爆破一條巷道，實際上是橫切巷道。這樣我們才能往回跨越礦體進行鑽探。

So the drilling for this quarter of Q1 was really focused on El Trompo and Santiago, with Trompo being that offshoot of the Avino vein and Santiago being that crosscutting the structure across San Gonzalo vein. So to answer your question, we haven't yet tested the continuity of Avino, both down-dip and on-strike.

因此，本季 Q1 的鑽探主要聚焦在 El Trompo 和 Santiago；Trompo 是 Avino 礦脈的一個分支，而 Santiago 則是橫切構造、跨越 San Gonzalo 礦脈。回答你的問題，我們尚未測試 Avino 的延續性，無論是沿傾向向下（down-dip）或沿走向（on-strike）。

Got you. And any expectation on when you guys may start that drilling?

了解。那你們預計何時可能開始那邊的鑽探？

We have people in there now. They're servicing the pumps and the electrical system down there. So we're bringing back people. So it's hard to say because we want to get the drilling and the blasting and the mining going first, and then we're going to look at drifting away from the vein and then setting up the drill station. So it's going to be in the second half of this year.

我們現在已經有人在裡面了。他們正在維修那裡的抽水設備和電力系統。所以我們正在把人員帶回來。很難給出確切時間，因為我們想先把鑽探、爆破和採礦作業啟動起來，之後才會考慮從礦脈旁邊掘進（drifting away from the vein），再設置鑽探站。所以會是在今年下半年。

Okay. I appreciate that. And what do you think we will see in the total expenses for the ramp-up in Q2? And how much have you incurred as of today, given we're halfway through the quarter? And maybe, if possible, give us some guidance for spend during Q3 as well.

好的，謝謝。那你認為 Q2 為了擴大（ramp-up）所產生的總費用會是多少？以目前來看，既然本季已過一半，你們截至今天已經發生了多少？如果可以的話，也請提供 Q3 的支出指引。

Sure, Tyler. It's Nathan here. So are you referring to ramping up, getting closer to production? Or are you talking about exploration spend?

好的，Tyler。我是 Nathan。你指的擴大（ramp-up）是指逐步接近投產？還是指勘探支出？

Exploration spend.

勘探支出。

Sure. Yes.

好的，是的。

Unless you can talk about production.

除非你也能談談生產。

No, I'll talk about exploration spend. So we're expecting that to increase. Obviously, we announced up to 30,000 meters, and we're ramping up. April was a lot obviously heavier than March was as far as meterage, and we're continuing on that path in March -- or in May, June and further into the second half. We've got all 3 drills turning right now, which is great.

不，我先談勘探支出。我們預期會增加。很明顯地，我們宣布最多 30,000 公尺，而我們正在加速推進。就鑽探米數而言，4 月顯然比 3 月重得多，我們也會沿著這個方向在 5 月、6 月以及下半年持續推進。目前三台鑽機都在運轉，這很好。

So we kind of -- we're expecting that if we continue on the same meterage about anywhere from $0.5 million to close to $0.75 million maybe on a monthly basis. So we're expecting a couple of million dollars per quarter as a maximum, and that depends obviously on how quick we're able to move the drills around, too.

所以我們大致預期，如果以相同的鑽探米數持續進行，每月大概會在 50 萬美元到接近 75 萬美元之間。也就是說，每季最多預計約幾百萬美元，當然也取決於我們能多快把鑽機移動到不同位置。

(Operator Instructions) The next question comes from Matthew O'Keefe from Cantor Fitzgerald.

（接線員指示）下一個問題來自 Cantor Fitzgerald 的 Matthew O'Keefe。

Just a question. You had a pretty busy quarter on the finance side. So you've got $27 million in cash here, now $11 million -- or actually $30 million in working capital and $9 million to $11 million budget. So that's still a pretty healthy cushion, assuming you're going to get back into production between now and the end of the year. So what are your plans for that additional cash?

我有個問題。你們這一季在財務方面相當忙碌。你們現在有 2,700 萬美元現金，另外有 1,100 萬美元——或者其實是 3,000 萬美元的營運資金，以及 900 萬到 1,100 萬美元的預算。所以在假設你們會在現在到年底之間恢復生產的情況下，這仍然是相當充裕的緩衝。那你們對這些額外現金有什麼計畫？

Nathan here, Matt. It's a good question. Obviously, we are looking forward to kind of getting back to production activities first. But I mean this is kind of a historic quarter for Avino and it's the first time we've really been in a comfortable -- a very comfortable cash position. And we're looking forward to reinvesting in the mine, and we're just -- we're evaluating opportunities as they come in, right? There's a lot of activity in Mexico and a lot of projects that we always have our eye on. But at the same time, we don't want to make any hasty decisions. So we're...

Matt，我是 Nathan。這是個好問題。很明顯地，我們首先期待能回到生產活動。不過，這對 Avino 來說算是歷史性的一季，也是我們第一次真正處於一個舒適——非常舒適的現金部位。我們期待把資金再投資到礦山上，而我們也——會隨著機會出現來評估，對吧？墨西哥有很多活動，也有很多我們一直關注的專案。但同時，我們不想做任何倉促的決定。所以我們……

And we're looking at improving recovery rates through automation.

而且我們也在透過自動化來提升回收率。

Yes. We've got a lot of capital improvements. We want to make it first and then we'll kind of sit back and take kind of a 10,000-foot view of what's best for Avino and for our shareholders.

是的。我們有很多資本改善項目。我們想先把這些做好，然後再退一步，從更宏觀的角度來看什麼對 Avino 以及我們股東最有利。

Okay. And then -- so you're not looking at other -- well, you're always looking -- I guess, looking at other projects that might be in and around. But would your first choice be something that has some synergies with Avino or something a little bit different? And would it be more on the cash flowing side or the development side?

好的。那接著——所以你們不是在看其他——嗯，你們一直都在看——我想你們會看周邊的其他專案。但你們的首選會是與 Avino 有協同效應的專案，還是比較不同類型的？另外會偏向有現金流的，還是偏向開發階段的？

That's a tough question to answer. I think we're pretty agnostic as far as what we're looking at. We like exploration stories. We like past producing stories. Like there's a lot of stuff that we like. But at the same time, we're going to be very, very cautious with our funds. And we want -- we are still focused on Mexico and we plan -- at the very least, we plan to remain that way.

這很難回答。我想我們對於要看什麼其實相當不設限。我們喜歡勘探型故事，也喜歡曾經生產過的故事；我們喜歡的東西很多。但同時，我們會非常、非常謹慎地使用資金。而且我們仍然聚焦在墨西哥，並且——至少我們計畫會維持這樣的方向。

We want to find higher-grade material on our property. We want to lower our all-in sustaining costs back to where it was when we were mining San Gonzalo, which was around $10. So that's our goal.

我們希望在自家礦權範圍內找到更高品位的礦料。我們希望把全維持成本（AISC）降回到我們開採 San Gonzalo 時的水準，大約是 10 美元左右。這就是我們的目標。

Yes. That's the big focus is to get everything -- we have a large mill circuit, and if we can find higher grade and running some of that material through our mill, we're pretty confident that costs will come down and we'll be in a much better positioning for the future.

是的。最大的重點就是把一切——我們有一個大型的磨礦/選礦廠流程，如果我們能找到更高品位的礦料並把其中一部分送進我們的選廠，我們相當有信心成本會下降，未來的定位也會好很多。

Okay. No, that's great. It sounds like it's -- most of it's earmarked for current -- unlocking the current potential at Avino.

好的。不，這很棒。聽起來——大部分資金都會優先用在目前——釋放 Avino 現有潛力上。

Thanks, Matt.

謝謝你，Matt。

This concludes the question-and-answer session. I would like to turn the conference back over to 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，請他做結語。

Thank you, everyone, for taking the time to listen today. We appreciate the patience of all our stakeholders and look forward to resuming normal operations soon. We look forward to a productive second quarter and remainder of 2021. Thanks again for listening, and have a great day.

感謝各位今天撥冗收聽。我們感謝所有利害關係人的耐心，並期待很快恢復正常營運。我們期待 2021 年第二季以及今年剩餘時間能有良好成果。再次感謝收聽，祝各位有美好的一天。

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

今天的電話會議到此結束。各位可以掛線。感謝參與，祝各位有愉快的一天。