Avino Silver & Gold Mines Ltd (ASM) 2021 Q4 法說會逐字稿

Thank you for standing by. This is the conference operator.

感謝您耐心等候。我是本次會議的接線員。

Welcome to the Avino Silver & Gold Mines Fourth Quarter and Year-end 2021 Financial Results Conference Call. (Operator Instructions) The conference is being recorded. (Operator Instructions).

歡迎參加 Avino Silver & Gold Mines 2021 年第四季及全年財務結果電話會議。（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, Investor Relations. Please go ahead.

我現在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 Q4 and Year-end 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 年第四季及全年財務結果電話會議與網路直播。今天與會者包括公司總裁暨執行長 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 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。前瞻性陳述受到已知與未知的風險、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有重大差異。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之任何義務。更多資訊請參閱我們在昨日新聞稿所附、並隨本次電話會議簡報一併提供之詳細警示說明。

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.

我想提醒各位，本次電話會議正在錄音，並將於今日稍後提供重播。重播資訊以及隨本次電話會議與網路直播提供的簡報投影片，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?

我現在把電話交給 Avino 總裁暨執行長 David Wolfin。David？

Thanks, Jen. Good morning, everyone, and welcome to Avino's Q4 and Year-end 2021 Financial Results Conference Call and Webcast. Thanks for joining us. 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 fourth quarter and year-end 2021 financial and operating performance and our plans for 2022, and then we will open it up for questions. Please note that all figures are stated in U.S. dollars unless otherwise noted.

謝謝，Jen。各位早安，歡迎參加 Avino 2021 年第四季及全年財務結果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。今天的電話會議將涵蓋 2021 年第四季及全年財務與營運表現重點、以及我們 2022 年的計畫，之後將開放提問。另請注意，除非另有說明，所有數字均以美元計價。

Overall, 2021 was a year highlighted by many positives. We ended the year with fourth quarter production numbers that exceeded our expectations. We resumed operations at the Avino mine in August. We planned and executed on a comprehensive drill program and the conversion to dry stack tailings is on track for completion in 2022, with the filter building nearing completion.

整體而言，2021 年是充滿許多正面亮點的一年。我們以超出預期的第四季產量數據為全年畫下句點。我們於 8 月恢復 Avino 礦場的營運。我們規劃並執行了一項全面的鑽探計畫，而乾式堆置尾礦（dry stack tailings）的轉換也按計畫於 2022 年完成，濾餅廠房（filter building）已接近完工。

In October, we announced that we will be acquiring the neighboring La Preciosa development property. When this transaction closes, it has the potential to be transformational for Avino. The addition of La Preciosa substantially increases our 43-101 compliant mineral resource to 290 million ounces of silver equivalent.

10 月，我們宣布將收購鄰近的 La Preciosa 開發項目資產。當此交易完成時，對 Avino 而言可能具有轉型性的影響。納入 La Preciosa 將使我們符合 NI 43-101 規範的礦產資源量大幅提升至 2.90 億盎司銀當量。

I'm also pleased to announce that we have received Kofi approval for the acquisition in Mexico, which was the final regulatory approval required before completing the acquisition. The acquisition is still anticipated to occur before the end of Q1 2022.

我也很高興宣布，我們已在墨西哥取得該收購案的 Kofi 核准，這是完成收購前所需的最後一項監管核准。預期收購仍將在 2022 年第一季結束前完成。

In addition, the company made its final payment of the term facility in September, which is a significant milestone for Avino. Cash and working capital at the end of 2021 had doubled over the year. At the end of the year, the exploration campaign for 2021 had completed 15,500 meters of drilling and focused on several targets. Additional areas for exploration include the main Avino Vein below current mine activities and the La Potosina vein. The initial results from La Potosina were recently announced, and we are excited to continue exploring La Potosina as it factors in prominently as one of our high grade, near-surface targets. We believe La Potosina has the potential to supplement our current mill feed from Avino in the near to medium-term.

此外，公司於 9 月完成定期融資（term facility）的最後一筆付款，這對 Avino 而言是重要里程碑。2021 年底的現金與營運資金較年初增加一倍。於年底時，2021 年的勘探活動已完成 15,500 公尺鑽探，並聚焦於多個目標。其他勘探區域包括目前礦區作業下方的 Avino 主礦脈，以及 La Potosina 礦脈。La Potosina 的初步結果近期已公布，我們很期待持續在 La Potosina 進行勘探，因其作為我們高品位、近地表目標之一，具有重要地位。我們相信 La Potosina 有潛力在短至中期補充目前 Avino 的選礦廠入料。

On the Oxide Tailings resource area, 124 holes have been drilled, 110 of the holes have reported assays and are currently under review by our technical team. In the fourth quarter, production came in from the Avino Mine only compared to Q3 2021, which was the most recent quarter of production. Silver equivalent production increased by 101% to 541,000 ounces. Silver production increased by 139% to 164,000 ounces. Copper production increased by 68% to 1.1 million pounds, and gold production increased by 92% to 2,100 ounces.

在氧化尾礦（Oxide Tailings）資源區方面，已鑽探 124 個孔，其中 110 個孔已回報化驗結果，目前正由我們的技術團隊審查。第四季的產量僅來自 Avino 礦場，與 2021 年第三季（最近一個生產季度）相比，銀當量產量增加 101% 至 541,000 盎司。白銀產量增加 139% 至 164,000 盎司。銅產量增加 68% 至 110 萬磅，黃金產量增加 92% 至 2,100 盎司。

The full year production highlights are as follows: 842,000 silver equivalent ounces, consisting of just over 245,000 ounces of silver, 3,400 ounces of gold and 1.9 million pounds of copper.

全年產量重點如下：銀當量 842,000 盎司，其中包括略高於 245,000 盎司白銀、3,400 盎司黃金，以及 190 萬磅銅。

Also in the quarter, as I mentioned earlier, we continued with our plans to convert to dry stack tailings, a safer form of tailings management than the conventional wet tailings management process. The team at Durango made significant progress during Q4 on the facility, which includes the infrastructure associated with transporting the dry stack tailings. The project is expected to be fully operational in the second half of this year and brings the company towards achieving the guidelines with the global industry standard on tailings management. We have posted a great time lapse video on our website that shows the construction of the tailings filter plant, so I encourage you to go to the Video section on the website under the Investor tab and watch it.

此外，在本季度，如我先前提到的，我們持續推進轉換為乾式堆置尾礦的計畫，這是一種較傳統濕式尾礦管理流程更安全的尾礦管理方式。Durango 團隊在第四季於該設施取得重大進展，其中包含與乾式堆置尾礦運輸相關的基礎設施。該專案預期於今年下半年全面投入運作，並使公司更接近達成全球尾礦管理產業標準的指引。我們已在網站上發布一段精彩的縮時影片，展示尾礦過濾廠的建造過程；我鼓勵各位前往網站「Investor」分頁下的「Video」區觀看。

On October 27, 2021, we announced the acquisition of La Preciosa. As I touched on it during the Q3 call, I have always believed the Avino and La Preciosa belonged under a 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 mineral exploration concessions by more than sevenfold to over 7,000 hectares. We expect a large portion of the existing La Preciosa resource could be mined via underground to potentially improve Avino's production and organic growth profile. We expect the transaction to close in the current quarter. Looking at other junior comparable companies, this acquisition should elevate Avino within the silver sector.

2021 年 10 月 27 日，我們宣布收購 La Preciosa。正如我在第三季電話會議中提到的，鑑於明顯的協同效益與共用基礎設施，我一直相信 Avino 與 La Preciosa 應該在同一所有權之下。La Preciosa 與 Avino 現有營運高度契合，透過將一個具近期投產潛力的大型高品質白銀開發專案納入我們的資產組合，不僅進一步強化我們在 Durango 的布局，也使我們的礦產勘探特許權面積增加逾七倍，超過 7,000 公頃。我們預期現有 La Preciosa 資源中有相當大一部分可採地下開採，並有望提升 Avino 的產量與內生成長輪廓。我們預期交易將於本季度完成。與其他可比的初級礦業公司相比，此收購應可提升 Avino 在白銀產業中的地位。

Our ESG initiatives continue to move forward as we incorporate principles of sustainability and social responsibility. During the fourth quarter, the company continued its training of local workforce at the mine. Additional ESG initiatives completed during the fourth quarter were as follows: assisted the local schools, their Christmas parties and supplied food and entertainment. Continued to support the communities of Zaragoza, Pánuco de Coronado and San José de Avino in their waste dump cleanup efforts. Maintenance for local roads and town streets for Zaragoza and San José de Avino. Road maintenance within the communities, which include painting speed bumps, maintenance of cattle guards and general cleanup.

我們的 ESG 倡議持續推進，並將永續與社會責任原則納入營運。第四季期間，公司持續在礦區培訓當地勞動力。第四季完成的其他 ESG 倡議如下：協助當地學校舉辦聖誕派對，並提供食物與娛樂；持續支持 Zaragoza、Pánuco de Coronado 與 San José de Avino 等社區進行垃圾場清理工作；維護 Zaragoza 與 San José de Avino 的地方道路與城鎮街道；社區內道路維護，包括粉刷減速丘、維護牛欄柵（cattle guards）以及一般清理。

Current ESG initiatives include: supporting the community of Pánuco de Coronado with their project to extend the community cemetery; supporting the community of Zaragoza to extend the water line to areas that currently do not have this resource available; 600 meters of excavation taking approximately 25 hours.

目前的 ESG 倡議包括：支持 Pánuco de Coronado 社區延伸社區公墓的專案；支持 Zaragoza 社區延伸供水管線至目前尚未取得此資源的區域；600 公尺的開挖作業約需 25 小時。

Taking a look at the metals and mining outlook for the year, it's clear that the recent invasion of Ukraine by Russia has been the main focus during the last couple of weeks and has made for a jittery market. We have seen the price of gold and silver climb and fall with daily volatility being the norm. We continue to believe that the outlook for silver is positive. According to the World Silver Institute, the silver demand should see solid growth for 2022 onward, and they have also predicted the global supply demand could rise by 8% from 2021 to a record 1.1 billion ounces this year.

展望今年金屬與礦業的前景，顯然俄羅斯近期入侵烏克蘭是過去幾週的主要焦點，也使市場情緒緊張。我們看到金銀價格在每日波動中上漲與回落已成常態。我們仍然相信白銀前景偏正面。根據世界白銀協會（World Silver Institute），白銀需求自 2022 年起應可見穩健成長；他們也預測全球供需（供給/需求）可能較 2021 年上升 8%，並於今年達到創紀錄的 11 億盎司。

The rise is expected to be driven by a record silver industrial fabrication, which is forecast to rise by 5% as consumption increases in traditional and green technologies. Investment demand for physical silver bars and bullion coins is expected to jump 13% this year to a 7-year high. Demand for silver to be used in jewelry is expected to rise by 11%. Demand for silverwares forecast to climb by 21%. All this bodes well for the silver miners and their shareholders. The best leverage to silver is owning producers such as Avino.

預期此一上升將由創紀錄的白銀工業製造需求所帶動；隨著傳統與綠色科技的消耗增加，該需求預估將成長5%。今年實體白銀條塊與金銀幣的投資需求預期將跳增13%，達到7年來高點。用於珠寶的白銀需求預期將上升11%。銀器需求預估將攀升21%。這一切都對白銀礦商及其股東有利。對白銀最具槓桿的方式，是持有像 Avino 這樣的生產商。

I will now ask Nathan Harte, Avino's Chief Financial Officer, to present the financial results for Q4 2021.

我現在請 Avino 的財務長 Nathan Harte 來報告 2021 年第四季的財務結果。

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

謝謝你，David。很高興能參與這通電話會議，我也想歡迎今天加入我們並正在觀看我們簡報的各位。

We are extremely pleased with the progress made in Q4 following the restart of mining operations at the Avino Mine in August, and we feel that our Q4 financial results reflect the turning point for Avino. Not only that, we are looking forward as we move close to closing the strategic acquisition of the neighboring La Preciosa development stage project from Coeur mining.

我們對第四季在 8 月 Avino 礦場重啟採礦作業後所取得的進展感到非常滿意，並且我們認為第四季的財務結果反映了 Avino 的轉捩點。不僅如此，隨著我們接近完成向 Coeur Mining 收購鄰近的 La Preciosa 開發階段專案這項策略性收購，我們也對未來充滿期待。

The company remains well funded, with $24.8 million in cash and $31.6 million in working capital available at the end of 2021. This represents a significant increase to the $11.7 million and $14.7 million available at the beginning of the year.

公司資金仍然充裕，截至 2021 年底，現金為 2,480 萬美元，可用營運資金為 3,160 萬美元。相較於年初可用的 1,170 萬美元現金與 1,470 萬美元營運資金，這代表顯著增加。

With concentrate sales having resumed during the third quarter, free cash flow generation in Q4 was $2.5 million, and the term facility with our long-term partners of Samsung C&T has now been repaid, and Avino has the financial flexibility and capacity to move forward our new and existing projects.

隨著精礦銷售在第三季恢復，第四季自由現金流為 250 萬美元；此外，與我們長期合作夥伴 Samsung C&T 的定期融資已全數償還，使 Avino 具備財務彈性與能力，得以推進我們的新專案與既有專案。

During Q4, we reported net revenues of $9.3 million, with 418,000 silver equivalent payable ounces sold, and for the full year, $11.2 million on 525,000 ounces sold. Avino reported mine operating income of $4.4 million for the fourth quarter and $3.5 million for the full year of 2021, which includes non-cash depreciation and depletion.

第四季我們報告淨營收 930 萬美元，售出 418,000 盎司可支付的白銀當量；全年則為 1,120 萬美元，售出 525,000 盎司。Avino 第四季礦場營運收益為 440 萬美元，2021 全年為 350 萬美元，其中包含非現金的折舊與耗竭。

On a cash basis, mine operating income was $5.1 million for Q4 and $5.5 million for the full year 2021.

以現金基礎計算，第四季礦場營運收益為 510 萬美元，2021 全年為 550 萬美元。

Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $4.8 million in Q4 and $400,000 for the full year. Adjusted earnings was $4.7 million for the quarter or $0.05 per share. For the full year 2021, it was $2.3 million or $0.02 per share.

息稅折舊攤銷前盈餘（EBITDA）第四季為 480 萬美元，全年為 40 萬美元。調整後盈餘本季為 470 萬美元，或每股 0.05 美元；2021 全年為 230 萬美元，或每股 0.02 美元。

And rounding out our financial results, we reported net income after taxes from continuing operations of $2.6 million or $0.03 per share for the fourth quarter. For the full year period, we reported a loss of $2.1 million or $0.02 per share. As you can see, Q4 was a significant quarter for Avino as we demonstrated strong operating margins while keeping and maintaining our existing cost structures, both at site and at the corporate level. Further, we generated net earnings for the first quarter in 2019, and we generated $2.5 million in free cash flow, net of any capital expenditures.

最後就我們的財務結果而言，我們第四季持續營運稅後淨利為 260 萬美元，或每股 0.03 美元。全年期間，我們報告虧損 210 萬美元，或每股 0.02 美元。如各位所見，第四季對 Avino 而言是重要的一季：我們在維持既有成本結構（無論是礦區現場或公司層級）的同時，展現了強勁的營運利潤率。此外，我們自 2019 年第一季以來首次產生淨利，並在扣除任何資本支出後，創造了 250 萬美元的自由現金流。

CapEx for Q4 2021 was $1 million and for the full year was $3.2 million. CapEx for this quarter related to exploration at La Potosina and below the current mining operations at Avino at the ET area of the mine. Also included was the recommended drilling on our Oxide Tailings resource as we look to move that project forward to a pre-feasibility level in the near term.

2021 年第四季資本支出（CapEx）為 100 萬美元，全年為 320 萬美元。本季資本支出與 La Potosina 的探勘，以及 Avino 現行採礦作業下方、礦場 ET 區域的探勘有關。亦包含對我們氧化尾礦資源所建議的鑽探，因為我們希望在短期內將該專案推進至預可行性階段。

Cash costs per silver equivalent payable ounce for the fourth quarter was $9.57, a decrease of 32% when compared to $14.01 in Q4 of 2020. All-in sustaining cash costs for the quarter was $17.24, a decrease of 76% compared to $73.8 during Q4 of 2020. As we continue to ramp up, we expect the all-in sustaining cash cost figures to continue to decline due to more ounces sold in the coming periods.

第四季每盎司可支付白銀當量的現金成本為 9.57 美元，較 2020 年第四季的 14.01 美元下降 32%。本季全維持現金成本（AISC）為 17.24 美元，較 2020 年第四季的 73.8 美元下降 76%。隨著我們持續提升產能，我們預期由於未來期間售出盎司數增加，AISC 將持續下降。

With Q4 marking the first quarter of uninterrupted mining operations in 2019, I am pleased to report that Avino's financial outlook is very positive. Throughout 2020 and 2021, we have successfully executed on our plans in reducing debt, and at the end, we have come out with our highest working capital in Avino's 53-year history. 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 2022.

隨著第四季成為自 2019 年以來首個採礦作業不間斷的季度，我很高興報告 Avino 的財務展望非常正面。在 2020 與 2021 年期間，我們成功執行了降債計畫；到年底，我們創下 Avino 53 年歷史以來最高的營運資金。這樣的財務實力使我們能確保 La Preciosa 的收購資金已完全到位，並符合我們在 2022 年其餘時間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.

我現在把時間交還給 David，討論 Avino 對今年其餘時間的規劃。

Thank you, Nathan. Q4 was a busy quarter with ongoing projects, and we have continued into 2022 at the same active pace. Activities at the mine site during the first quarter of 2022 include: Continuing production ramp-up at the Avino mine; ongoing training with locals; dry-stack conversion is ongoing.

謝謝你，Nathan。第四季在各項專案持續推進下相當忙碌，而我們在 2022 年也以同樣積極的步調延續。2022 年第一季礦區現場的活動包括：持續提升 Avino 礦場產量；持續對當地人員進行訓練；乾式堆置（dry-stack）轉換持續進行中。

As previously mentioned, we received and released drill results from the following areas: Brecha de Bajo, the Bart Vein, below Level 17 and west of current ET mine workings; La Malinche, Nuestra Señora, Santiago, El Trompo, San Jorge, and most recently, La Potosina. As mentioned earlier, the Oxide Tailings drill results recently received are under review by our technical team. Ongoing exploration at the main Avino vein below current mine activities and at La Potosina; continue working on how best to integrate La Preciosa into Avino's production operations.

如先前所提，我們已收到並發布以下區域的鑽探結果：Brecha de Bajo、Bart Vein、17 水平以下且位於現有 ET 礦區作業西側；La Malinche、Nuestra Señora、Santiago、El Trompo、San Jorge，以及最近的 La Potosina。如前所述，近期收到的氧化尾礦鑽探結果正由我們的技術團隊審查中。主 Avino 礦脈在現行採礦活動下方與 La Potosina 的探勘持續進行；並持續研究如何將 La Preciosa 最佳整合至 Avino 的生產作業中。

For 2022, we are targeting production between both 2.2 million and 2.6 million ounces of silver equivalent. We expect to generate significant operating cash flow this year, which we plan to reinvest in exploration and further mine development.

2022 年，我們的目標是白銀當量產量介於 220 萬至 260 萬盎司。我們預期今年將產生可觀的營運現金流，並計畫再投資於探勘與進一步的礦場開發。

2022 is off to a great start for Avino. We look forward to keeping the momentum going. We would now like to move the call to question-and-answer portion. Operator?

Avino 在 2022 年有個很好的開局。我們期待持續保持這股動能。接下來我們想進入問答環節。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。

Everyone. This is Nate calling in for Heiko.

各位好。我是 Nate，我代 Heiko 來電。

Just regarding -- you kind of touched on it already, but regarding the La Preciosa project, obviously, good timing here with the commodity pricing. But as far as approvals go, you've touched on (inaudible) being done. Is there anything else in the waiting here? Or is this just a waiting game in general? That's my first question.

關於——你們其實已經稍微提到，但關於 La Preciosa 專案，顯然在商品價格方面時機不錯。不過就核准流程而言，你們提到（聽不清）已完成。這裡還有其他需要等待的事項嗎？還是整體而言就是在等待而已？這是我的第一個問題。

We're just closing all the documents, so we're real close to making closing announcement.

我們正在完成所有文件，所以非常接近發布完成交割的公告。

Okay. Great. And then just building on the last question. Any ideas that you're willing to share publicly regarding anticipated spend at site and timing of such spending? Will the spending start right after closing? Or is there more or less a ramp-up period?

好的，很好。接著延續上一個問題：就你們願意公開分享的範圍內，對於預期在現場的支出金額與支出時點，有任何想法嗎？支出會在交割後立刻開始嗎？還是會有一段或多或少的爬坡期？

It's Nathan here. We're currently reviewing a kind of an ongoing process for La Preciosa. I'm assuming you're referring to La Preciosa and not the Avino property, correct?

我是 Nathan。我們目前正在檢視 La Preciosa 的一個持續性流程。我猜你指的是 La Preciosa，而不是 Avino 的礦權，對嗎？

That's correct, yes.

是的，沒錯。

Yes. So it's an ongoing process. Management is going to be going down the site shortly to go review that with the team, and then we'll be able to update the market on that as it comes out.

是的，所以這是一個持續進行的流程。管理團隊很快會到現場與團隊一起檢視，之後我們會在有進展時向市場更新。

Okay. Great. That's all for me.

好的。很棒。我這邊就到這裡。

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

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

David, Nathan. Just starting with the ramp-up, I mean, it looks like things are progressing nicely. Can you just kind of remind us again what the target throughput rate is there this year, and where throughput is currently? I'm just trying to get a gauge on how close you are to a steady state.

David、Nathan。我先從產能爬坡談起，我的意思是，看起來進展得很順利。你們能不能再提醒我們一下，今年那邊的目標處理量（throughput）是多少，以及目前的處理量在哪個水準？我只是想衡量一下你們距離穩態運轉還有多近。

Sure. Peter Latta here, I can take that. So we're looking at, before COVID, we were about 20 -- or 2020, 200, and that's kind of our target. The mill has a nameplate capacity of 2,500 tonnes per day. We're currently just debottlenecking the mine. We're currently mine limited as opposed to being plant limited, and that includes hiring a local workforce, which is something David's mentioned over the last couple of calls. Hiring and training, I should say. So that's kind of the ongoing process as we work towards getting back to that 2,200 tonnes per day.

當然。這裡是 Peter Latta，我可以回答。COVID 之前，我們大約是 20 -- 或 2020，200，而那大致就是我們的目標。磨礦廠的名目產能是每日 2,500 公噸。我們目前主要是在對礦山進行去瓶頸。我們目前受限於礦山，而不是受限於選廠；其中也包括招募當地勞動力，這是 David 在過去幾次電話會議中提到的。應該說是招募與訓練。所以，隨著我們朝著恢復到每日 2,200 公噸邁進，這就是正在進行的流程。

Okay. And is that something that you think you guys should be able to achieve sometime in Q2? Or is that more of a second half of the year type for that?

好的。那你們覺得這件事有機會在第二季某個時間點達成嗎？還是比較像是下半年才會達到？

Yes. I think it's an ongoing process. I think that's something that we're definitely going to get done in 2022.

是的。我認為這是一個持續進行的過程。我認為這是我們在 2022 年一定會完成的事情。

Okay. Fair enough. And then just looking at operating costs, they seem strong in the fourth quarter started. Is that something we should be modeling moving forward in 2022? Or do you think we'll see some further reductions as throughput ramps as we were just talking about?

好的。合理。接著看營運成本，第四季的表現看起來很強勁。這是我們在 2022 年往後建模時應該採用的水準嗎？還是你們認為隨著處理量如剛才所說持續爬升，成本還會再進一步下降？

Jake, Nathan here. So on a per ounce basis, you can kind of expect that to stay fairly flat. One of the things that we were -- I wouldn't say surprised, though, but we were fortunate for was the good grades throughout most of Q4. We were just in a high-grade zone as part of our mine plan. In Q1, the grades will come down a little bit, so we'll see some increased cost on the per ounce basis, but nothing overly significant.

Jake，我是 Nathan。以每盎司來看，你大致可以預期會維持相對持平。我們在第四季大部分時間的品位都很好，這點我們不能說是驚訝，但確實很幸運；因為依照我們的採礦計畫，當時正好在一個高品位區。在第一季，品位會稍微下降，所以每盎司成本會上升一些，但不會有太顯著的變化。

And then on the all-in side of things, as production gets up to kind of that 2,200 tonnes per day that Peter mentioned, obviously, we're producing more ounces with the same amount of overhead. So the -- we expect the all-in number to either come down or at the very -- at the worst case scenario, stay flat.

至於全維持成本（all-in）方面，當產量提升到 Peter 提到的每日約 2,200 公噸時，很明顯我們在相同的管理費用（overhead）下會產出更多盎司。因此，我們預期全維持成本要嘛會下降，要嘛在最壞的情況下維持持平。

Okay, that's helpful. That's all for me.

好的，這很有幫助。我這邊就到這裡。

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

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

David, Nathan and team. So you mentioned commodity price volatility, and maybe wonder if we could kind of give a reminder on how your sales get treated? Is there like a 3-day rolling average on your price realizations? Or is it over a period of time where it resets backwards? Just -- any color there so that we could maybe more accurately make expectations as far as price realizations for this quarter?

David、Nathan 以及團隊。你們提到大宗商品價格波動，我想請你們再提醒一下你們的銷售是怎麼處理的？你們的實現價格是用 3 日移動平均之類的方式嗎？還是以某一段期間計算、並在之後回溯重設？只是想請你們提供一些說明，讓我們能更精準地對本季的實現價格做預期。

Joe, Nathan here. So all of our concentrate sales are done on a spot basis and then it's M plus 1 for the finalization as we sell concentrate on a provisional basis. And then there is, yes, like I said next month settlement, but that's all spot pricing.

Joe，我是 Nathan。我們所有精礦銷售都是以即期（spot）為基礎，然後最終結算是 M+1，因為我們是以暫定價格（provisional basis）出售精礦。然後確實如我所說，是下個月結算，但全部都是即期定價。

Okay. So given that, is it a bit difficult for you guys to take advantage of any of these spikes? Or, maybe in another way, is it positive because it smooths things out a bit?

好的。那在這種情況下，你們是不是比較難去把握這些價格尖峰？或者換個方式說，這樣是否反而是正面的，因為它能讓波動稍微平滑一些？

Yes and no. I mean, obviously, when you're settling the next -- the following month, your final sales are kind of -- are based on the future a little bit. But from a cash flow perspective, sure, we could try and sell fairly quickly and take advantage of some prices on the provisional side just to make sure that we get the cash upfront, and then we can put that towards reinvestment in the mine. But for the most part, yes, it's really smooth.

是也不是。我的意思是，很明顯當你在下個月結算時，你的最終銷售價格某種程度上是基於未來一點點。但從現金流角度來看，當然，我們可以嘗試更快地出售，利用暫定價格端的一些價格水準，以確保我們能先收到現金，然後把它用於礦山再投資。不過大致上，是的，它確實會讓結果更平滑。

Okay. All right. My other questions were answered already.

好的。明白。我其他問題都已經被回答了。

(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。

Good -- looks like things are going well, so kudos there. Just a question. I know, David, you talked about it a little bit on the exploration. Could you just go over that again, reminding us sort of what the sort of budget is for this year, and what the main targets are? And what kind of goals we have set for the year with respect to exploration outside of La Preciosa?

早安 -- 看起來進展得很順利，所以恭喜。想請教一個問題。我知道 David 你在勘探方面稍微提到了一些。你能不能再說明一次，提醒我們今年大概的預算是多少，以及主要目標是什麼？另外，就 La Preciosa 以外的勘探而言，我們今年設定了哪些目標？

Yes, the budget is $2 million for drilling. We're putting in, I think, it's 40 holes into Potosina to develop a resource. And Brecha de Bajo, ET. So yes, I mean, there's lots of great targets, but we're focusing in on the ones that we can develop kind of joint.

是的，鑽探預算是 200 萬美元。我們在 Potosina 會打入，我想是 40 個孔，以建立資源量。還有 Brecha de Bajo、ET。是的，我的意思是，有很多很棒的目標，但我們會聚焦在那些我們可以一起推進開發的目標上。

Yes. So is -- so ET is still a main -- is still a good target and...

是的。所以 -- 所以 ET 仍然是主要 -- 仍然是一個很好的目標，而且……

Oh, yes, because we've never drilled below the current working. So we're -- sorry, yes, we haven't drilled below the current workings, so we're doing that now, and extending the mineralization at depth. And we're excited about that because the results are coming in, and it looks like it continues.

喔，是的，因為我們從未在目前的採掘作業面以下進行鑽探。所以我們 -- 抱歉，是的，我們還沒有在現有坑道以下鑽探，所以我們現在正在做，並把礦化向深部延伸。我們對此感到興奮，因為結果正在出來，看起來礦化確實持續延伸。

Yes, okay. And so -- and just again, back to the Potosina, which is -- with some pretty impressive results earlier this month. It's a little bit further away from the mill, but not that far. Is it -- but you say it's relatively close to surface and you could -- if things hold together, you could be developing that rather quickly?

是的，好的。那麼 -- 再回到 Potosina，本月稍早有一些相當令人印象深刻的結果。它離磨礦廠稍微遠一點，但也不算太遠。它 -- 但你說它相對接近地表，如果條件都能維持，你們可以相當快地把它開發出來？

Absolutely. And probably, though, once we decide to go ahead with mining it, it takes about a year. You got to put in a ramp and decline and prepare it for mining, so -- but it's near surface, so it's very similar to San Gonzalo. Low-sulphidation near surface or [horizontal].

絕對可以。不過可能一旦我們決定開始採礦，大約需要一年時間。你得開鑿一條斜坡道（ramp）和下坡巷道（decline），並把它準備到可採礦的狀態，所以 -- 但它接近地表，因此非常類似 San Gonzalo。屬於低硫化（low-sulphidation）的近地表，或是 [horizontal]。

Okay. And it's easy access in there.

好的。而且那邊進出很方便。

Trucking distances ain't that far. It's about 4,000 or 5,000 away.

卡車運輸距離不算遠。大概是 4,000 或 5,000（的距離）。

Okay. That was -- the other questions were answered, but that's -- that's great.

好的。其他問題都已經回答了，不過這 -- 這很棒。

This concludes the question-and-answer session. I would 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。我想把電話會議交回給總裁兼執行長 David Wolfin，請他做任何結語。

Thank you, operator, and thank you, everyone, for your time today.

謝謝接線員，也謝謝各位今天撥冗參與。

As I said earlier, we had many positives to talk about in 2021, and look forward to maintaining the momentum. Growth is paramount for success, and Avino has been laying the groundwork for future growth. We have given priority to most important projects and initiatives to achieve that growth. Unlocking the value of the Avino property in the region has been a priority, and we are looking forward to the next steps in our growth objectives. In turn, maximizing value for shareholders and stakeholders.

如我先前所說，2021 年我們有許多正面成果可以分享，並期待延續這股動能。成長是成功的關鍵，而 Avino 一直在為未來成長奠定基礎。我們已優先推動最重要的專案與措施，以實現成長。釋放本區域 Avino 資產的價值一直是優先事項，我們也期待在成長目標上邁出下一步。進而為股東與利害關係人創造最大價值。

Have a great day, everyone, and goodbye.

祝各位有美好的一天，再見。

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。您可以掛斷電話線。感謝您的參與，祝您有愉快的一天。