Avino Silver & Gold Mines Ltd (ASM) 2021 Q3 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver & Gold Mines Q3 2021 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 2021 年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, Manager of Investor Relations. Please go ahead.

現在我想把會議交給投資者關係經理 Jennifer North。請開始。

Thank you, operator. Good morning, everyone, and welcome to the Avino Silver & Gold Mines Limited Q3 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 of Technical Services, Peter Latta.

謝謝，接線員。各位早安，歡迎參加 Avino Silver & Gold Mines Limited 2021 年第三季財務業績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 from 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.

除非適用法律要求，否則公司無意且不承擔任何義務更新該等前瞻性陳述或資訊。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 Q3 2021 Financial Results Conference Call and Webcast. Thank you for joining us. Before we begin, please note that the full financial statements and MD&A are now available on our website.

謝謝，Jen。各位早安，歡迎參加 Avino 2021 年第三季財務業績電話會議與網路直播。感謝各位加入。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。

On today's call, we will cover the highlights of our third quarter 2021 financial and operating performance, our plans for the fourth quarter as well as recent announcement on the acquisition of La Preciosa project, and what that means for Avino and then we will go open it up for questions. Please note that all figures are stated in U.S. dollars unless otherwise noted.

在今天的電話會議中，我們將說明 2021 年第三季財務與營運表現重點、第四季計畫，以及近期宣布收購 La Preciosa 專案的消息與其對 Avino 的意義，之後將開放提問。請注意，除非另有說明，所有金額均以美元計。

During the third quarter, we focused on finalizing work and activities at the mine site, leading up to a recommencement of operations, which was announced on August 3. We were extremely pleased to restart operations, and it is because of the hard work of the team in Mexico that it came to fruition. The work included hiring mine personnel and reestablishing the mill circuits.

第三季期間，我們專注於完成礦區現場的各項工作與活動，為恢復營運做準備；我們已於 8 月 3 日宣布重新啟動營運。我們對能夠重啟營運感到非常高興，這得益於墨西哥團隊的辛勤努力才得以實現。相關工作包括招募礦場人員以及重新建立選礦廠各迴路。

In addition, in early July, we announced initial drill results from Phase 1 of the campaign. There were significant grades received at each location. We had results from El Trompo, Santiago and La Malinche veins. At the end of September, 12,179 meters of drilling was completed. And as of today, we've drilled 13,427 meters. For the quarter, there was 4,931 meters drilled. The main areas for the third quarter of exploration, included La Potosina with 601 meters, the Oxide Tailings with 1,931 meters and the Avino vein with 2,399 meters. Assay results are pending due to the long turnaround times at the laboratories and will be released once received and interpreted.

此外，在 7 月初，我們公布了第一階段鑽探計畫的初步鑽探結果；各個位置均取得顯著品位。我們取得了 El Trompo、Santiago 與 La Malinche 礦脈的結果。至 9 月底，已完成 12,179 公尺鑽探；截至今日，我們已鑽探 13,427 公尺。本季鑽探 4,931 公尺。第三季勘探的主要區域包括：La Potosina 601 公尺、氧化尾礦（Oxide Tailings）1,931 公尺，以及 Avino 礦脈 2,399 公尺。由於實驗室周轉時間較長，化驗結果尚待出爐，待收到並完成解讀後將予以發布。

Based on historical mapping of the Oxide Tailings, we've completed the drilling at the required spacing to move the project to the first steps of commencing a prefeasibility study.

根據氧化尾礦的歷史測繪資料，我們已依所需間距完成鑽探，使該專案得以推進至啟動預可行性研究的第一步。

During the third quarter, we reported an increase in production compared to Q2 2020, which was the most recent quarter of production. The production came primarily from the Avino Mine. We are currently mining and milling from the Avino Mine only. As part of the ramp-up of operations, we did also process just over 10,000 tonnes of historic aboveground stockpile material.

第三季，我們回報的產量較 2020 年第二季（最近一次生產的季度）有所增加。產量主要來自 Avino 礦山。目前我們僅在 Avino 礦山進行採礦與選礦。作為營運爬坡的一部分，我們也處理了略高於 10,000 公噸的歷史地表堆存物料。

Production from this material totaled 1,784 silver equivalent ounces consisting of just over 9,300 ounces of silver, 58 ounces of gold and 12,500 pounds of copper. There are no other comparable production from Q2 2020 from historic aboveground stockpiles.

該等物料的產量合計為 1,784 盎司白銀當量，包括略高於 9,300 盎司白銀、58 盎司黃金，以及 12,500 磅銅。2020 年第二季並無可與之相比的歷史地表堆存物料產量。

The Avino Mine production highlights are as follows: compared to Q2 2020, silver equivalent production increased 70% to just under 270,000 ounces; copper production by 46% to 673,000 pounds; silver production increased by 36% to 68,600 ounces; gold production increased by 179% to 1,125 ounces.

Avino 礦山產量重點如下：與 2020 年第二季相比，白銀當量產量增加 70% 至接近 270,000 盎司；銅產量增加 46% 至 673,000 磅；白銀產量增加 36% 至 68,600 盎司；黃金產量增加 179% 至 1,125 盎司。

The consolidated production was as follows: 285,000 silver equivalent ounces, consisting of 78,000 ounces of silver, almost 1,200 ounces of gold and 686,000 pounds of copper. Also in the quarter, we continued progress in the dry stack tailing storage facility, TSF #2, with expected completion in the first half of 2022. We've been working on the mill recovery upgrade to Circuit 4 and mill automation project to increase productivity and recoveries.

合併產量如下：285,000 盎司白銀當量，包括 78,000 盎司白銀、接近 1,200 盎司黃金，以及 686,000 磅銅。此外，本季我們持續推進乾式堆疊尾礦貯存設施 TSF #2 的建設，預計於 2022 年上半年完工。我們也在進行選礦回收率升級（第 4 迴路）與選礦廠自動化專案，以提升生產力與回收率。

In addition, the company has been training a local workforce at the mine as it endeavors to support nearby towns and strengthen the collaboration between the surrounding communities and the company. As a major employer in the area, it is important that there is a steady group of trained mine workers available as we ramp up production.

此外，公司一直在礦區培訓當地勞動力，致力於支持鄰近城鎮並強化周邊社區與公司之間的合作。作為該地區的重要雇主，隨著我們逐步提升產量，確保有穩定且受過訓練的礦場工人供應至關重要。

The training programs are aimed at increasing inclusion and diversity as well as fostering opportunities for both women and men. With this objective in mind, the company is pleased to have trained its first female scoop town operator. The company is currently debt-free having made the final payment on its $10 million term facility with Samsung during the quarter. I will let Nathan touch on that shortly.

培訓計畫旨在提升包容性與多元性，並為女性與男性創造機會。基於此目標，公司很高興已培訓出首位女性鏟運機（scoop tram）操作員。公司目前已無負債，因為本季已向 Samsung 支付其 1,000 萬美元定期融資的最後一筆款項。稍後我會請 Nathan 說明。

On October 27, we were extremely excited to announce the acquisition of La Preciosa to the market. I have always believed that Avino and La Preciosa belong under common ownership, given the clear synergies and common infrastructure. La Preciosa is an excellent strategic fit within Avino's existing operations and further strengthens our presence in Durango by adding not only a large high-quality silver development project with near-term production potential to our portfolio, but also increasing our mineralized exploration concessions by more than sevenfold to over 7,000 hectares.

10 月 27 日，我們非常興奮地向市場宣布收購 La Preciosa。我一直相信，鑑於明確的協同效益與共用基礎設施，Avino 與 La Preciosa 應該由同一所有權整合。La Preciosa 與 Avino 現有營運高度契合，並透過納入一個具近期投產潛力的大型高品質白銀開發專案，進一步強化我們在杜蘭戈（Durango）的布局；同時也使我們的礦化勘探特許權面積增加逾七倍，超過 7,000 公頃。

Work is already underway to determine how to best integrate La Preciosa into Avino's production operations, given the proximity to the current processing facility and infrastructure. We expect a large portion of the existing La Preciosa resource could be mined via underground operations to potentially improve Avino's production and organic growth profile. This is important transformational transaction for Avino.

目前已著手評估在現有處理設施與基礎建設鄰近的條件下，如何將 La Preciosa 最佳整合至 Avino 的生產營運中。我們預期 La Preciosa 現有資源中有相當大一部分可透過地下開採方式進行開採，從而有望改善 Avino 的產量與內生成長輪廓。這是一項對 Avino 具有重要轉型意義的交易。

The strategic, financial and operational advantages are as follows: elevates Avino's potential as a silver producer and developer; unique operational synergies due to La Preciosa strategic location with our boundaries within 2 kilometers of each other; positive results from initial metallurgical test work; reduces development time line and risk; reduces environmental footprint; substantially increases Avino's silver and silver equivalent mineral resources by increasing Avino's consolidated NI43-101 mineral resources to over 235 million ounces of silver equivalent; enhances Avino's already robust land position in Durango; presents exploration upside potential at La Preciosa.

其策略、財務與營運優勢如下：提升 Avino 作為白銀生產商與開發商的潛力；由於 La Preciosa 的策略性位置而帶來獨特的營運協同效益，雙方邊界相距僅 2 公里；初步冶金測試結果正面；縮短開發時程並降低風險；降低環境足跡；透過將 Avino 合併後的 NI43-101 礦產資源提升至超過 2.35 億盎司白銀當量，大幅增加 Avino 的白銀及白銀當量礦產資源；強化 Avino 在杜蘭戈既有且穩健的土地布局；並在 La Preciosa 帶來勘探上行潛力。

Looking at other junior comparable company that this acquisition should elevate Avino within the silver sector. The transaction repositions Avino as a silver producer boasting one of the largest endowments of measured and indicated silver resources. We believe our shares are well positioned for evaluation rerating. There are going to be exciting times ahead as we continue to create growth in Mexico.

與其他可比的小型公司相比，這項收購應可提升 Avino 在白銀產業中的地位。此交易使 Avino 重新定位為白銀生產商，並擁有最大規模之一的已探明與指示（measured and indicated）白銀資源禀賦。我們相信公司股價已具備重新評價上調的良好條件。隨著我們持續在墨西哥創造成長，未來將會有令人振奮的時刻。

Our ESG initiatives continue to move forward as we incorporate principles of sustainability and social responsibility. During the third quarter, as I mentioned earlier, the company has been training a local workforce at the mine.

我們的 ESG 計畫持續向前推進，並將永續性與社會責任原則納入營運之中。如我先前提到的，在第三季期間，公司已在礦場培訓當地勞動力。

Other ESG initiatives completed during the quarter include school supplies were delivered to the schools and the local communities for all children's from kindergarten to middle school, supplied cleaning kits for the schools and our 3 main communities, helped maintain a clean and self environment for students, assisted the community of Panuco de Coronado, community to fix roads that were damaged due to the rainy season.

本季完成的其他 ESG 計畫包括：向學校及當地社區配送學用品，涵蓋所有從幼兒園到國中的孩童；為學校及我們的三個主要社區提供清潔用品套組，協助學生維持乾淨且自我照護的環境；並協助帕努科德科羅納多（Panuco de Coronado）社區修復因雨季受損的道路。

Avino has been invited for the first time to participate in the Francisco Madera Parade. This is a local town fair Supported Panuco's middle school to reestablish electricity after technical issues, supporting the community of Zaragoza and Avino with local waste dump cleanup, provide ongoing yearly road maintenance within the town, streets of our communities, frequent communications with the Mayor of Francisco Madero and the Ahedo representatives to maintain good relationships.

Avino 首次受邀參加弗朗西斯科・馬德羅（Francisco Madera）遊行。這是一個地方城鎮嘉年華；我們也支持帕努科（Panuco）中學在技術問題後恢復供電；支持薩拉戈薩（Zaragoza）社區以及 Avino 進行當地垃圾場清理；提供城鎮及我們社區街道的年度道路維護；並與弗朗西斯科・馬德羅市長及 Ahedo 代表保持頻繁溝通，以維持良好關係。

We are committed to growing in a sustainable way that supports the well-being of our communities and the environment in which we operate. We also continue to believe that the outlook for silver is positive. The green energy revolution is building steam and is showing an increased demand for silver.

我們致力於以永續方式成長，支持我們社區的福祉以及我們營運所在的環境。我們也持續相信白銀的前景正面。綠色能源革命正在加速推進，並顯示出對白銀需求的增加。

As Canada, The U.S. and many other countries have all set net-zero pledges for 2050, this will, in turn, create huge demand for silver. Industry experts expect demand to reach 1 billion ounces by 2025 as silver is one of the industrial metals that will be needed in manufacturings of electric vehicles, solar panels, electronics and medicine, just to name a few.

由於加拿大、美國及許多其他國家皆已設定 2050 年淨零承諾，這將進一步創造對白銀的龐大需求。產業專家預期，隨著白銀成為電動車、太陽能板、電子產品與醫療等製造所需的工業金屬之一（僅舉數例），需求將在 2025 年達到 10 億盎司。

To achieve these ambitions, we need more metals, and this is where mining comes in. To meet this demand, more mines need to be discovered, permitted, financed and developed. What do we think this means for silver miners? We will see a rise in stock prices as demand for metal grows in several green energy applications. The best leverage to metal is owning producers.

為了實現這些目標，我們需要更多金屬，而這正是採礦業發揮作用之處。為滿足此需求，必須發現、取得許可、籌資並開發更多礦山。我們認為這對白銀礦商意味著什麼？隨著多項綠色能源應用對金屬需求成長，我們將看到股價上升。對金屬最好的槓桿方式是持有生產商。

At Avino, we are targeting 2022 production between 2.5 million to 3 million ounces of silver equivalent and estimating all-in sustaining cash costs at pre-COVID levels. We expect to generate significant operating cash flow next year, which we plan to reinvest in exploration and further mine development.

在 Avino，我們的目標是 2022 年產量達到 250 萬至 300 萬盎司白銀當量，並估計全維持性現金成本（all-in sustaining cash costs）回到 COVID 之前的水準。我們預期明年將產生可觀的營運現金流，並計畫再投資於勘探及進一步的礦山開發。

Current producers will become much larger companies as profits grow from higher price pressure. With the recent acquisition of La Preciosa, we will be able to supply the silver for many years to come.

現有生產商將隨著在更高價格壓力下利潤成長而成為規模更大的公司。透過近期收購 La Preciosa，我們將能在未來多年供應白銀。

I will now ask Nathan Harte, Avino's Chief Financial Officer, to present the financial results for Q3 2021.

接下來我將請 Avino 財務長 Nathan Harte 報告 2021 年第三季的財務結果。

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. We are extremely pleased with the successful restart of mining operations at the Avino Mine as well as the subsequent announcement of the strategic La Preciosa acquisition from Coeur Mining.

謝謝你，David。很高興能參與本次電話會議，也歡迎今天加入並觀看我們簡報的各位。我們對 Avino 礦場採礦作業成功重啟，以及隨後宣布自 Coeur Mining 進行策略性收購 La Preciosa，感到非常振奮。

The company remains well funded with $22.3 million in cash and $28.9 million in working capital available at the end of the quarter, which represents a significant increase to the $12 million and $15 million available at the beginning of the year.

公司資金仍然充裕，本季末持有現金 2,230 萬美元，並有 2,890 萬美元的營運資金可用；相較於年初可用的 1,200 萬美元現金與 1,500 萬美元營運資金，顯著增加。

Further, we are excited to announce that concentrate sales resumed during the third quarter, which represents our first sales in 2021. We are also happy to report that Avino is now debt-free, having made the final scheduled repayment to the $10 million term facility, which was advanced by our partners at Samsung C&T. This step allows Avino to maintain significant financial flexibility in our next stage of growth as we look forward to move our new and existing projects forward.

此外，我們很高興宣布精礦銷售於第三季恢復，這代表我們在 2021 年的首次銷售。我們也很高興報告 Avino 現已零負債，因為我們已依期向由合作夥伴 Samsung C&T 提供的 1,000 萬美元定期融資完成最後一筆還款。此舉使 Avino 在下一階段成長中得以維持高度財務彈性，並讓我們能展望推進新舊專案。

During Q3, we reported net revenues of $1.9 million with 107,000 silver equivalent ounces sold. Avino reported mine operating income of $0.8 million for the third quarter, which includes $300,000 in depreciation and depletion.

第三季我們報告淨營收 190 萬美元，售出 107,000 盎司白銀當量。Avino 第三季礦山營運收益為 80 萬美元，其中包含 30 萬美元的折舊與耗竭。

Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $0.2 million compared to a loss of $4.6 million in Q3 2020. Adjusted losses for Q3 2021 was $700,000 with no significant changes from Q3 of 2020. We reported net losses after taxes from continuing operations of $200,000 or $0.00 per share for the third quarter compared to a loss of $4.6 million or $0.05 per share in Q3 2020.

息稅折舊攤銷前盈餘（EBITDA）為 20 萬美元，相較於 2020 年第三季虧損 460 萬美元。2021 年第三季調整後虧損為 70 萬美元，與 2020 年第三季相比沒有重大變化。我們報告持續營運稅後淨損 20 萬美元，或每股 0.00 美元；相較於 2020 年第三季淨損 460 萬美元，或每股 0.05 美元。

Capital expenditures for the first 9 months of 2021 were $2.1 million, with the majority coming in the third quarter. Capital expenditures for this quarter related to exploration and resource drilling at Avino and included the recommended drilling on our Oxide Tailings resource as we look to move that project forward to a prefeasibility level. We do expect that capital and exploration expenditures will continue over the coming quarters as we continue with exploration and move forward with the dry stack tailings upgrades.

2021 年前 9 個月的資本支出為 210 萬美元，其中大部分發生在第三季。本季資本支出與 Avino 的勘探及資源鑽探相關，並包含對我們氧化尾礦（Oxide Tailings）資源所建議的鑽探，因我們希望將該專案推進至預可行性研究階段。我們預期未來幾季資本與勘探支出仍將持續，因我們將繼續勘探並推進乾式堆疊尾礦（dry stack tailings）升級。

Cash cost for silver equivalent payable ounce for the third quarter was $6.75, a decrease of 46% compared to $12.56 in Q3 2020. All-in sustaining cash costs for the quarter was $25.60, a decrease of 19% compared to $31.61 during Q3. As we move forward with consistent production and sales, we expect these figures to normalize. Expectations for Q4 are for lower all-in sustaining costs as QT represented less than a month's worth of ounces sold and a full quarter of administration and sustaining capital expenditures.

第三季每可支付白銀當量盎司的現金成本為 6.75 美元，較 2020 年第三季的 12.56 美元下降 46%。本季全維持性現金成本為 25.60 美元，較第三季期間的 31.61 美元下降 19%。隨著我們持續穩定生產與銷售，我們預期這些數字將趨於正常。對第四季的預期是全維持性成本將更低，因為第三季（QT）所代表的售出盎司數不足一個月，卻包含整季的管理費用與維持性資本支出。

Finally, I want to reiterate the strength of Avino's financial position. We successfully executed on our plans to reduce debt, and at the end of the quarter, we maintained working capital of almost $29 million. This financial strength allows us to ensure that the acquisition of La Preciosa is fully funded and aligns with our plans to add value for our shareholders and stakeholders throughout the rest of 2021 and into 2022.

最後，我想再次強調 Avino 財務狀況的強勁。我們成功執行降低負債的計畫，並在季末維持接近 2,900 萬美元的營運資金。這樣的財務實力使我們能確保 La Preciosa 的收購已完全到位，並符合我們在 2021 年剩餘期間及 2022 年持續為股東與利害關係人創造價值的計畫。

I will now hand it back over to David for a discussion on what Avino is planning for the rest of the year.

接下來我把時間交還給 David，討論 Avino 在今年剩餘時間的規劃。

Thank you, Nathan. Q3 was very busy with all the projects ongoing and recommencing operations at the Avino Mine. There is a lot to look forward to during the final quarter of this year. Production continues to ramp up at Avino. Training is ongoing, waiting for additional assays to be received. Work is already underway to determine how best to integrate La Preciosa into Avino's production operations, given the proximity to the current processing facilities and infrastructure.

謝謝你，Nathan。第三季非常忙碌，所有專案都在進行中，同時 Avino 礦場也重新啟動營運。今年最後一季有許多值得期待的事項。Avino 的產量持續爬升。培訓仍在進行中，並等待收到更多化驗結果。鑑於 La Preciosa 與現有處理設施及基礎建設距離相近，我們已著手評估如何將 La Preciosa 最佳整合至 Avino 的生產營運中。

We expect a large portion of existing La Preciosa resource could be mined via underground operations to potentially improve Avino's production and organic growth profile. The dry stack tailings project is ongoing well. And with long lead items on site now, prefab building to be erected soon with the concrete having already been poured. Improvements to Circuit 4 are ongoing that will improve gold and silver recovery through the use of new equipment.

我們預期 La Preciosa 現有資源中有相當大一部分可透過地下開採方式進行，可能改善 Avino 的產量與內生成長輪廓。乾式堆疊尾礦專案進展良好。且目前長交期設備已到場，預製建築將很快立起，混凝土也已澆置完成。第 4 回路（Circuit 4）的改善也在進行中，將透過新設備提升黃金與白銀回收率。

Avino's main focus for the next quarter is to ramp up the production levels and operating activities at the mine, keeping moving forward with the exploration program as well as plans for integration of La Preciosa. The closing of the transaction is expected to occur during the first quarter of 2022. We were very pleased with the progress made in Q3 and look forward to a busy Q4.

Avino 下一季的主要重點是提升礦場產量水準與營運活動，同時持續推進勘探計畫以及 La Preciosa 的整合規劃。交易預計於 2022 年第一季完成。我們對第三季取得的進展非常滿意，並期待第四季同樣忙碌。

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

我們現在想將電話會議進入問答環節。接線員？

(Operator Instructions) The first question comes from Heiko Ihle with H.C. Wainwright.

（接線員指示）第一個問題來自 H.C. Wainwright 的 Heiko Ihle。

In your release, you mentioned on this part, I quote, "mining activities continue to ramp up and management expects to reach previous production levels during Q4 '21 or Q1 '22." Just thinking about level here, we're essentially halfway through Q4 and especially so if one considers that the holiday season is coming up in less than 1.5 months.

在你們的新聞稿中，你們在這部分提到，我引用：「採礦活動持續加速提升，管理層預期在 2021 年第四季或 2022 年第一季達到先前的產量水準。」就這個水準來看，我們基本上已經過了第四季的一半，尤其是如果考量到距離假期季節到來不到 1.5 個月。

So my question is that, are the bottlenecks and other -- what exactly are the bottlenecks and the other capacity constraints that you're currently dealing with during this ramp up? What are you seeing? What's the view from the ground?

所以我的問題是，在這次產能爬坡期間，你們目前正在面對的瓶頸以及其他——到底有哪些瓶頸與其他產能限制？你們看到了什麼？從第一線的角度來看是什麼情況？

Yes. Thanks, Heiko. Thanks for the question. This is Peter Latta here. Just to address that, I mean, the main bottleneck, as David mentioned on the call, is just training up the locals, and that's kind of a strategic move for us to really strengthen the local community. What we're seeing on the ground, though, is kind of an increased rate of production, kind of a steady increase as we continue to ramp up from Q3 into Q4.

是的。謝謝你，Heiko。謝謝你的提問。我是 Peter Latta。就這點來回應，我的意思是，主要的瓶頸，正如 David 在電話會議中提到的，就是培訓當地員工，而這對我們來說也是一項策略性作法，目的是實質強化在地社區。不過我們在現場看到的是，產量提升的速度在增加，隨著我們從第三季爬坡進入第四季，產量呈現穩定上升。

And what we're seeing on the ground is that the local community is really excited to be back at work. And there's a big stack of resumes that we have in the HR office there, and we're just being very strategic with how we hire and train so that we can have a labor force long into the future that wants to collaborate with us.

而我們在現場看到的是，當地社區真的很興奮能夠回到工作崗位。我們在當地人資辦公室堆了很多履歷，我們在招募與培訓上非常有策略性，這樣我們才能在未來長期擁有一支願意與我們合作的勞動力。

Fair enough. A slightly different question. You drilled about 5,000 meters in Q3 as per your prepared remarks and also the press release. Given the La Preciosa acquisition and the fact that you mentioned the exploration upside at that site in your prepared remarks as well, should we expect to see a meaningful impact on Q1 drilling expenses after a transaction actually closes? And on that same token, is there an assay bottleneck that you might see with those drilling results? And could that become a setback or rather an opportunity once these things improve properly?

了解。換個稍微不同的問題。根據你們事先準備的講稿以及新聞稿，你們在第三季鑽探了大約 5,000 公尺。考量到 La Preciosa 的收購，以及你們在準備講稿中也提到該礦區的勘探上行空間，我們是否應該預期在交易實際完成後，第一季的鑽探費用會出現顯著影響？同樣地，針對這些鑽探結果，你們是否可能遇到化驗（assay）瓶頸？而一旦這些狀況適當改善，這會成為挫折，還是反而會成為機會？

Heiko, David here. The budgets for next year haven't been finalized yet. So we'll let you know when that's ready. So I'm not sure if we'll see meaningful exploration in Q1 just yet. What was the other question?

Heiko，我是 David。明年的預算還沒有定案。所以等準備好時我們會再告訴你。因此我不確定第一季是否就會看到有意義的勘探活動。另一個問題是什麼？

Well, I get the other question was building on it with the assays or the delays that you're seeing?

嗯，我想另一個問題是延伸這點，關於你們看到的化驗或延遲？

Well, the last time we put out an exploration news release was in July. So just so you know how long it's taken to get more assays. So we're not sitting on them. We're waiting. So they're trickling in. And so yes, they're really busy.

嗯，我們上一次發布勘探新聞稿是在七月。所以你就知道要拿到更多化驗結果花了多久。我們不是把結果壓著不發，我們是在等。所以結果是零星回來的。因此是的，他們真的非常忙。

Okay. Then I apologize in advance because I'm going to take a third question on this call. What you're saying is the assays really have come back at such a slow rate that it hasn't made sense to put up a press release with results? Did I understand that correctly?

好的。那我先道歉，因為我打算在這通電話上問第三個問題。你們的意思是，化驗結果回來的速度真的非常慢，以至於不值得用這些結果發布新聞稿？我理解得對嗎？

Yes. Heiko, Peter here again. The assays have -- they are trickling in, but keep in mind, we need to add interpretation to that as well. So we'll drill a few holes, and we'll get an assay result for, let's say, half the amount of holes, but that doesn't tell the story. So we need essentially all of the assays in and we've been drilling kind of consistently as well. And then we have to apply interpretation with our geologists into that as well before we release just the raw numbers.

是的。Heiko，我又是 Peter。化驗結果——確實是零星回來，但請記住，我們也需要加入解讀。我們可能鑽了幾個孔，卻只拿到例如一半孔數的化驗結果，但那樣無法講完整故事。所以我們基本上需要把所有化驗結果都收齊，而且我們也一直在相對持續地鑽探。接著在發布原始數字之前，我們還必須由地質團隊把解讀套用進去。

And they passed around the property with 3 or 4 different veins.

而且他們在礦權範圍內分布著 3 到 4 條不同的礦脈。

The next question comes from Joseph Reagor with Roth Capital Partners.

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

So I guess, first thing on the Preciosa. Obviously, you haven't even closed the deal yet. So I realize there might not be a specific answer to this. But once you do close the transaction, what would be the time line until you guys were able to provide a construction decision or a construction plan to the market? I realize you're going to have to do some work when you get it first, but what does that look like?

所以我想，先談 Preciosa。顯然你們甚至還沒完成交割，所以我理解可能沒有明確答案。但一旦你們完成交易，距離你們能向市場提供一個建設決策或建設計畫，大概會是什麼時間表？我知道你們接手後需要先做一些工作，但大致會是什麼樣子？

Yes. When we close, we want to consider some infill drilling on Gloria and Abundancia because the majority of drilling in the past has been on [Martha.] And our goal is to bring Gloria and Abundancia into production first because it's near surface. So Carlos is putting together a drill plan for that. He said, in order to permit, it's probably 8 to 10 months. There are underground workings on sites, so we'll save a lot of money on development. We'll have to slash it out to put bigger equipment in there and put -- prepare a proper mine plan. We've modeled 500 tonnes per day to start, but it's hard to say exactly when that will start. But yes, I mean, that's about it.

是的。交割後，我們想考慮在 Gloria 和 Abundancia 做一些加密鑽探（infill drilling），因為過去的大部分鑽探都集中在 [Martha.]。我們的目標是先讓 Gloria 和 Abundancia 進入生產，因為它們靠近地表。所以 Carlos 正在為此制定鑽探計畫。他說，就許可而言，大概需要 8 到 10 個月。現場已有地下工程，因此我們能在開發上省下很多錢。我們需要把它清理/拓寬，以便放入更大型的設備，並且——制定一個合適的礦山計畫。我們建模的起步規模是每日 500 噸，但很難精確說何時會開始。不過是的，我的意思是，大概就是這樣。

Okay. So a little infill drilling and then 8 to 10 months for permitting? Okay. Fair enough. And then...

好的。所以先做一些加密鑽探，然後許可需要 8 到 10 個月？好的。了解。然後……

Just to add on that, Joe, sorry to cut you off there, but just to add on that, there's a bunch of optimization work that we're doing in the meantime as well. So David mentioned the 500 tonne per day scenario that we're looking at, but in the interim, we're looking at a variety of different scenarios to do that optimization depending on surrogate configuration or how many tonnes we think we can haul out based on the mine plan that we're coming up with.

再補充一下，Joe，抱歉打斷你，但補充一點，我們同時也在做一系列的最佳化工作。David 提到我們正在看的每日 500 噸情境，但在此期間，我們也在看各種不同情境來做最佳化，取決於替代配置（surrogate configuration），或依據我們正在制定的礦山計畫，評估我們認為能夠外運多少噸。

Okay. Fair enough. And then kind of a question on Q3. You guys produced just shy of 300,000 silver equivalent ounces and only sold a little over 100,000, so call it, 35%, 40% of production. Is -- I'm assuming that was just inventory buildup as you ramp up, but should we expect further inventory ramp up increases in Q4? Or do you guys think that now you've got enough like finished goods, concentrate supply on hand that production and sales should match up pretty closely?

好的。了解。然後關於第三季的問題。你們生產了接近 300,000 盎司的白銀當量，但只銷售了略高於 100,000 盎司，也就是大概 35% 到 40% 的產量。我猜那只是因為爬坡而造成的庫存累積，但我們是否應該預期第四季庫存還會進一步增加？或者你們認為現在手上已經有足夠的成品/精礦供應，使得產量與銷量應該會相當接近？

Joe, Nathan here. Yes, I mean, you've kind of nailed it right in the head. We're kind of -- we've kind of built a decent amount of inventory. And so you can expect more sales, obviously, for October, November and December, and we're going through that process right now. And again, it should be fairly even probably for Q4 as far as production versus sales.

Joe，我是 Nathan。是的，你說得很到位。我們確實——我們已經建立了相當程度的庫存。因此你可以預期在 10 月、11 月和 12 月會有更多銷售，我們現在正在進行這個流程。而且同樣地，就第四季而言，產量與銷量應該會相對接近、相當平均。

Okay. All right. That helps. And then 1 final thing. Post the acquisition, obviously, the balance sheet will be a little lighter. Do you think you'll be comfortable with the amount of cash you have on hand at that point? Or do you think there's going to be some form of additional capital need to develop La Preciosa at the end of that drilling and permitting cycle?

好的。好，這很有幫助。然後最後一點。收購完成後，顯然資產負債表上的現金會少一些。你覺得那時你們會對手上現金水位感到安心嗎？還是你認為在那段鑽探與許可週期結束時，為了開發 La Preciosa 會需要某種形式的額外資金？

Yes. Joe, Nathan, again. It's a good question. I think we're generating cash flow, as you can see, just from the 1 sale we did have in September, and that's continuing into Q4, especially at these elevated prices from pre-COVID production. At this time, we're considering all options, but there's no -- there's not an internal requirement to go raise any capital, especially in the equity markets. We're going to consider all options as far as funding the development of La Preciosa plus we have, obviously, the development potentially of the Oxide Tailings Resource, too. So we're kind of looking at those 2 big projects as our next stage of growth for us, and we have not concluded on how best to fund those. But as far as right now, we're generating cash flow and that's something we're comfortable with for the next couple of quarters.

是的。Joe，我是 Nathan，再次回答。這是個好問題。我認為我們正在產生現金流，你也可以從我們 9 月那一筆銷售看得出來，而且這種情況會延續到第四季，特別是在目前這些相對較高的價格水準下，相較於 COVID 之前的產量。在此時點，我們會考慮所有選項，但內部並沒有——沒有內部要求必須去募資，尤其是在股權市場。我們會就 La Preciosa 的開發資金來源考慮所有選項，另外我們也有——顯然還有氧化尾礦資源（Oxide Tailings Resource）可能的開發。因此我們把這兩個大型專案視為下一階段的成長動能，而我們尚未就最佳的資金籌措方式做出結論。但就目前而言，我們正在產生現金流，且我們對未來幾個季度的狀況感到安心。

Okay. And 1 final thing, if I can. What's the comfortability with your long-term tailings options? With adding La Preciosa, you added a lot of potential production tonnes. So therefore, you're going to add a lot of tailings tonnes as well. What are your thoughts there? Do you guys feel comfortable with the current plan? Are you going to need to build another tailings facility eventually, if you were, would it be built over on the La Preciosa land or on the Avino land?

好的。如果可以的話，最後一點。你們對長期尾礦處置方案的把握程度如何？隨著納入 La Preciosa，你們增加了很多潛在的生產噸數，因此尾礦噸數也會增加。你們對此有什麼想法？你們對目前的計畫感到安心嗎？未來是否終究需要再建一座尾礦設施？如果需要，會建在 La Preciosa 的土地上，還是建在 Avino 的土地上？

We've been considering this. So we're going to have 8 to 10 years of capacity in TSF #2 using dry stack. We still have the open pit and various other pits to backfill, which will add another few million tonnes of capacity. And now with the acquisition of La Preciosa, so we'll have more land, so we can consider moving TSF #1. If we're going to do agglomeration, heap leach and marrow crow, we might do it over on their land. And that area would become available again, TSF #1. And that would be a decade or so as well.

我們一直在考慮這件事。因此，我們將在 TSF #2 採用乾式堆置（dry stack），可提供 8 到 10 年的容量。我們仍有露天礦坑以及各種其他礦坑可回填，這將再增加數百萬噸的容量。而且現在隨著收購 La Preciosa，我們將擁有更多土地，因此我們可以考慮搬遷 TSF #1。如果我們要做團聚（agglomeration）、堆浸（heap leach）和 marrow crow，我們可能會在他們的土地上進行。那樣一來，TSF #1 的那個區域就會再次可用。而那也將大約再有十年左右。

So we'll have lots of tailings capacity. We've got lots of water. We'll be reclaiming the water. We've got a 1 million cubic meter dam and a well and excess electricity capacity. So looking further, several years down the road, we're going to do an optimization study on how we can boost production even further to what we have now.

所以我們將有大量尾礦容量。我們有很多水。我們會回收用水。我們有一座 100 萬立方公尺的水壩、一口井，以及多餘的電力容量。因此再往前看，幾年之後，我們將進行一項最佳化研究，看看如何能把產量在目前基礎上進一步提升。

The next question comes from Jake Sekelsky with Alliance Global Partners.

下一個問題來自 Alliance Global Partners 的 Jake Sekelsky。

So just looking at CapEx of just over $2 million year-to-date, obviously that may have been affected by the shutdown in the first half of the year. Are you able to provide any color on what we should expect for next year, even just ballpark figures?

就今年迄今資本支出（CapEx）略高於 200 萬美元來看，顯然這可能受到上半年停工的影響。你們能否提供一些說明，讓我們了解明年應該預期什麼，即使只是大概的數字？

Jake, Nathan here. Hard to give you kind of an accurate number. As David mentioned, we're going through the budgeting process and then our entire management team is going down the site actually over the next coming weeks to finalize that. We do plan to continue the exploration program. Obviously, we're about halfway through kind of that 30,000 meters that we were -- we had announced and we're hoping to do.

Jake，我是 Nathan。很難給你一個相當精準的數字。如 David 提到的，我們正在進行預算編列流程，接下來幾週我們整個管理團隊也會實地到現場去把它定案。我們確實計畫持續勘探計畫。顯然，我們大概已完成我們先前宣布希望進行的 30,000 公尺的一半左右。

We're happy that most of the -- most, if not all, the Oxide Tailings drilling have done. So we know that the expense -- there'll be minimal expenses there moving forward. A lot of the payments on the dry stack are starting to trickle in for Q4, and we'll continue into Q1 and 2 as we look to finalize that in the first half of next year. And then additional upgrades in there. We're going to upgrade our fleet a little bit more for the guys at site.

我們很高興大部分——如果不是全部——氧化物尾礦（Oxide Tailings）的鑽探都已完成。因此我們知道，未來在那部分的支出會很少。乾式堆置（dry stack）的許多付款從第四季開始陸續進來，並會延續到第一季與第二季，因為我們希望在明年上半年把它完成。然後還會有一些額外升級。我們會再把現場同仁的車隊設備再升級一些。

The automation.

自動化。

Yes, we're working on the automation project. Some of that has been paid. Some of that is going to be paid in the coming quarter. So rounding all that out, I can't give you an exact number, but I would expect with the $1 million we spent in Q3 and then we're expecting between $1 million and $2 million next quarter, that kind of -- if that trend kind of continues, I think that gives you a bit of a range for what to expect for 2022.

是的，我們正在推進自動化專案。其中一部分已經支付，另一部分將在接下來的季度支付。把這些都加總起來，我無法給你確切數字，但我預期我們在第三季花了 100 萬美元，而下個季度預計在 100 萬到 200 萬美元之間；如果這個趨勢持續，我想這能給你一個對 2022 年預期範圍的概念。

Other than tailings project, we don't have any huge capital expenditures coming up or any giant sustaining capital expenditures. Obviously, I'll caveat that with our plans on La Preciosa. But I don't know if that gives you a little bit of a picture without saying a number. Is that helpful?

除了尾礦專案之外，我們沒有任何即將到來的大型資本支出或巨額維持性資本支出。當然，我要補充一點：這取決於我們對 La Preciosa 的計畫。但如果不直接報一個數字，希望這能讓你稍微有個概念。這樣有幫助嗎？

Yes. No, that's helpful. And then at La Preciosa, I know you've kind of talked about some of the low-hanging fruit and initial targets that you guys have there once the acquisition closes. I'm just kind of curious, I'm assuming there are active drill permits in place right now. And then how quickly do you think we could see drills turning once the acquisition closes? I mean, is it -- if the acquisition closes in Q1, can you get personnel on site and get drills turning by Q2? Or is it more of a midyear type event?

有的，這很有幫助。然後關於 La Preciosa，我知道你們談過一些「低垂的果實」以及收購完成後的初步目標。我有點好奇，我假設目前已經有有效的鑽探許可在位。那麼你們認為收購完成後，多快能看到鑽機開始運轉？我的意思是——如果收購在第一季完成，你們能在第二季就派人進場並讓鑽機在第二季開始運轉嗎？還是比較像年中才會發生的事？

In the first half, sometime, I couldn't estimate at this particular moment, but it shouldn't take long.

在上半年某個時間點吧。我目前無法估計得很精準，但應該不會花太久。

Got it. Okay. And then just lastly, with base auto prices where they are, and obviously, you have some copper rich areas at the Avino Mine that you're mining. Have there been any thoughts into maybe hedging out some copper exposure just to lock in margin while remaining fully exposed to silver prices?

了解。好。最後一個問題，基礎金屬價格在目前這個水準，而你們在 Avino 礦場也有一些富銅區正在開採。你們是否有考慮對部分銅曝險進行避險，以鎖定利潤，同時仍然完全曝險於白銀價格？

Yes. Jake, Nathan here. That's obviously a topical question and something we've been toying around with because copper didn't make up a meaningful amount of production at Avino. And we do like having a bit of that exposure. But having said that, obviously, we don't want to risk at all. So we're looking at options on that, and we know kind of -- we're looking out to 2022 and kind of looking at what the forecasts are for copper, and it's very mixed right now, but there is kind of some sentiment to a downward trend. So I think we're kind of exploring that avenue at least on a portion of our copper sales.

是的。Jake，我是 Nathan。這確實是個熱門問題，也是我們一直在思考的，因為銅在 Avino 的產量占比並不算大，而我們也喜歡保留一些這方面的曝險。不過話說回來，我們當然也不想承擔任何風險。因此我們正在研究相關選項；我們也在展望 2022 年並查看對銅的預測，目前看法非常分歧，但確實有一些情緒偏向下行趨勢。所以我想我們至少會在部分銅銷售上探索這條路。

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

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

Yes, most of my questions have been answered. Just a couple of quick housekeeping things here. Just, David, did you say -- did you provide guidance for 2022 production? Or did I miss that?

是的，我的大部分問題都已經得到回答。這裡只有幾個快速的例行問題。David，你剛才有說——你有提供 2022 年產量指引嗎？還是我漏聽了？

We're anticipating between 2.5 million to 3 million ounces of silver equivalent.

我們預期白銀當量產量在 250 萬到 300 萬盎司之間。

Okay. I got that. That's good. And then just another thing on the paying back to Samsung. So you're basically debt free now. Do you have a revolver or anything in place? Or do you need that? Or are you finding that way?

好的，我聽到了。很好。然後再一個關於償還 Samsung 的事情。所以你們現在基本上是零負債了。你們有循環信貸（revolver）或任何備用額度嗎？或者你們需要那個嗎？還是你們就這樣運作？

Matt, Nathan here. Again, something we're exploring. Obviously, it's nice to have something on standby, and that's something we're going to look at into 2022. We're in a great position as far as being debt free other than just our payables. So we're not looking to run it to the markets and take something on, but I think we're looking at the flexibility options, especially as we have these -- the Oxide Tailings and La Preciosa assume long-term development projects for Avino.

Matt，我是 Nathan。這同樣是我們正在評估的事情。顯然，有個備用工具放著是很好的，我們會在 2022 年去研究。我們目前除了應付帳款之外是零負債，因此我們不打算跑去市場上融資或承擔新的負債，但我想我們會評估彈性選項，特別是因為氧化物尾礦（Oxide Tailings）與 La Preciosa 對 Avino 而言都可視為長期開發專案。

Okay. No, that makes sense. And then I think this might have been asked, but on the exploration side, did we anticipate some more information or results before the end of the year? Or are we still at the -- waiting for assays?

好的，這很合理。然後我想這可能有人問過，但在勘探方面，我們是否預期在年底前會有更多資訊或結果？還是我們仍在——等待化驗結果？

Matt, yes, Peter here. Yes, we are still waiting for the full assays so that we can provide some interpretation with that as well.

Matt，是的，我是 Peter。是的，我們仍在等待完整的化驗結果，這樣我們也能一併提供解讀。

But you'll see something before the end of the year.

但你會在年底前看到一些內容。

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

問答環節到此結束。現在我想把電話交回給總裁兼執行長 David Wolfin，請他做結語。

Thank you. I would just like to say that things are looking busy for Q4 and beyond. We are excited about the acquisition of La Preciosa, and we're going to be busy marketing and getting the word out about the growth of Avino. And that's it. We wish you all a great day. Thanks for calling in.

謝謝。我只想說，第四季以及之後看起來會非常忙碌。我們對收購 La Preciosa 感到興奮，我們也會積極進行行銷，讓市場了解 Avino 的成長。就這些。我們祝大家今天愉快。感謝來電參與。

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。您可以掛線。感謝您的參與，祝您有美好的一天。