Avino Silver & Gold Mines Ltd (ASM) 2022 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 2022 Financial Results Conference Call. (Operator Instructions) And the conference is being recorded. (Operator Instructions) I would now like to turn the conference over to Jennifer North, Manager, Investor Relations. Please go ahead.

感謝各位耐心等候。我是會議接線員。歡迎參加 Avino Silver & Gold Mines 2022 年第一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）現在我想把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 2022 Financial Results Conference Call and Webcast. To join this webcast and conference call, there is a link in our news release dated May 4, which can be found on our website under News 2022. As well, you may find a link under the Investors tab, then click on Events and you will see the link at the top of that page.

謝謝，接線員。各位早安，歡迎參加 Avino Silver & Gold Mines Ltd. 2022 年第一季（Q1 2022）財務業績電話會議與網路直播。若要加入本次網路直播與電話會議，我們在 5 月 4 日發布的新聞稿中提供了連結，可在我們網站的 News 2022 分類下找到。此外，您也可以在 Investors 分頁下找到連結，點選 Events，您會在該頁面頂端看到連結。

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.

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. 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.

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意義下的前瞻性資訊。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存在重大差異。除非適用法律另有要求，公司無意且不承擔任何義務更新該等前瞻性陳述或資訊。

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

如需更多資訊，請參閱本次電話會議隨附簡報中的詳細警示說明，或參閱我們昨日發布的新聞稿。我也提醒各位，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。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 Q1 2022 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 first quarter 2022 financial and operating performance and our plans for the second quarter, 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 2022 年第一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管理階層討論與分析（MD&A）現已公布於我們網站。今天的電話會議將涵蓋 2022 年第一季財務與營運表現重點，以及第二季的計畫，之後將開放提問。請注意，除非另有說明，所有數字均以美元計價。

We had a strong start to the year highlighted by record revenues in mine operating income. Our financial performance in the first quarter demonstrates strong operational achievements that helped to generate revenues of $11.1 million and $4.7 million in mine operating income. Nathan Harte, Avino's CFO, will expand on our financial results later in the call.

我們今年開局強勁，亮點包括創紀錄的營收與礦山營運收入。我們第一季的財務表現展現了強勁的營運成果，帶動營收達 1,110 萬美元，礦山營運收入達 470 萬美元。Avino 財務長 Nathan Harte 將在稍後的電話會議中進一步說明我們的財務結果。

We had a very active first quarter, which was highlighted by closing of the La Preciosa's acquisition. La Preciosa hosts one of the largest undeveloped primary silver resources in Mexico and is located adjacent to our existing operations at the Avino mine. This is a major milestone for Avino and sets us on the path of achieving our goals of intermediate producer status.

第一季我們的活動非常積極，其中一大亮點是完成 La Preciosa 的收購交割。La Preciosa 擁有墨西哥最大規模之一、尚未開發的原生銀資源，且位於我們 Avino 礦現有營運區的相鄰位置。這是 Avino 的重大里程碑，並使我們走上實現「中型生產商」目標的道路。

Also during the quarter, we released drill results from our extensive 2021 exploration program and the target areas included Brecha de Bajo vein below level 17 and west of the current ET mine workings; La Malinche, Neustra Senora, Santiago, El Trompo and San Jorge veins as well as encouraging results from La Potosina and the Oxide Tailings project drilling.

此外，在本季期間，我們發布了 2021 年大規模勘探計畫的鑽探結果，目標區域包括：位於第 17 水平以下且在現有 ET 礦區採掘巷道以西的 Brecha de Bajo 礦脈；La Malinche、Neustra Senora、Santiago、El Trompo 與 San Jorge 礦脈；以及 La Potosina 與氧化尾礦（Oxide Tailings）專案鑽探所取得的令人鼓舞結果。

Overall, production in Q1 was slightly down compared to the fourth quarter 2021. This was expected due to mine sequencing. The production came from Avino Mine only, and as compared to Q4 2021, as that was the most recent quarter of consolidated production. The highlights are as follows: Silver equivalent production decreased by 15% to 458,000 ounces. Silver production remained steady at 164,000 ounces. Copper production increased by 8% to 1.2 million pounds. Gold production decreased by 66% to 801 ounces. Mill throughput increased by 7% to 111,138 tonnes. The recoveries for both silver and gold increased by 3% to 92% and 77%, respectively, with the copper recoveries decreasing slightly by 1% to 89%.

整體而言，第一季產量較 2021 年第四季略有下降。由於礦山採掘順序安排，這在預期之內。本季產量僅來自 Avino 礦；並以 2021 年第四季作為最近一期的合併產量比較基準。重點如下：白銀當量產量下降 15% 至 458,000 盎司。白銀產量維持穩定於 164,000 盎司。銅產量增加 8% 至 120 萬磅。黃金產量下降 66% 至 801 盎司。選礦廠處理量增加 7% 至 111,138 公噸。白銀與黃金回收率各提高 3%，分別達 92% 與 77%；銅回收率則小幅下降 1% 至 89%。

We continue moving forward on the capital projects that we outlined for the year. We are making great progress with the dry stack tailings facility and completion is expected near the end of Q2. To reiterate, we chose dry stack for its environmental safety and economic advantages with a high solid content. This significantly improved safety and stability and reduces the need to extract water from local sources by recycling the water removed from the tailings. We aim to be responsible community stewards.

我們持續推進年初所列的資本專案。乾式堆置尾礦設施（dry stack tailings facility）進展良好，預計將於第二季末前後完工。再次強調，我們選擇乾式堆置，是因其在環境安全與經濟效益方面的優勢，且具有高固體含量。此舉可顯著提升安全性與穩定性，並透過回收尾礦脫水所移除的水來循環利用，降低自當地水源取水的需求。我們致力成為負責任的社區守護者。

As previously touched on, at the beginning of the quarter, we released drill results from Phase 2 of the 2021 drill campaign and had completed over 15,500 meters of drilling, focusing on several targets. In addition, the initial results from La Potosina were announced in early March and included 2,400 meters of drilling. This area of the Avino property has been known to host high-grade, low sulphidation style mineralization similar to what we saw at our San Gonzalo mine. La Potosina area is only 3 kilometers from San Gonzalo and just 5 kilometers from the mill facility at the Avino Mine.

如先前提及，在本季初我們發布了 2021 年鑽探計畫第二階段（Phase 2）的鑽探結果，並已完成超過 15,500 公尺的鑽探，聚焦於多個目標。此外，La Potosina 的初步結果於 3 月初公布，包含 2,400 公尺的鑽探。Avino 礦區的這個區域一直被認為具有高品位、低硫化型（low sulphidation）礦化特徵，與我們在 San Gonzalo 礦所見相似。La Potosina 區域距離 San Gonzalo 僅 3 公里，距離 Avino 礦的選礦廠設施僅 5 公里。

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. Also, just subsequent to the end of Q1, we released results from the 110 hole drill program on the oxide tailings project, which included 3,645 meters of drilling. And since we have drilled a further 17 holes on the oxide tailings project, samples are being prepared for metallurgical test work as recommended in the 2017 preliminary economic assessment.

我們很期待持續在 La Potosina 進行勘探，因為它是我們其中一個高品位、近地表目標，地位相當重要。我們相信 La Potosina 有潛力在短至中期補充目前 Avino 的選礦入料。此外，在第一季結束後不久，我們發布了氧化尾礦專案 110 孔鑽探計畫的結果，該計畫包含 3,645 公尺的鑽探。而且我們已在氧化尾礦專案上再鑽了 17 孔，樣品正依據 2017 年初步經濟評估（PEA）的建議，準備進行冶金測試工作。

We are thrilled to be able to advance another Avino asset. The results from the program showed the gold grades are better than anticipated, and we are excited to understand the implications for the total resource. To date, the company has completed 5,075 meters of drilling in 2022. With the dry stack tailings facility nearing completion, this means we are closer than ever to decommissioning the current tailings pond, TSF #1, we call it. The team in Durango continued to make significant progress during Q1 on the facility, which includes the infrastructure associated with transporting the dry tailings.

我們很高興能推進 Avino 的另一項資產。該計畫結果顯示黃金品位優於預期，我們也期待進一步了解其對總資源量的影響。截至目前，公司在 2022 年已完成 5,075 公尺的鑽探。隨著乾式堆置尾礦設施接近完工，代表我們比以往任何時候都更接近退役目前的尾礦池，也就是我們所稱的 TSF #1。杜蘭戈（Durango）團隊在第一季持續在該設施上取得重大進展，其中包括與乾式尾礦運輸相關的基礎設施。

As mentioned, this 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 standards on tailings management, along with previously mentioned community stewardship. We have posted a great time-lapse video on the website that shows the construction of the tailings filter plant. So I encourage you to go to the video section of our website under the Investor tab and watch it.

如前所述，該專案預計於今年下半年全面投入運作，並使公司更接近達成全球產業尾礦管理標準的指引，同時也呼應先前提到的社區守護承諾。我們已在網站上發布一段很棒的縮時影片，展示尾礦過濾廠的建設過程。因此我鼓勵各位前往我們網站 Investors 分頁下的影片區觀看。

On March 21 this year, we announced the closing of the acquisition of La Preciosa project from Coeur Mining. I've always believed that the Avino and La Preciosa projects belonged under one 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 are moving ahead with our internal mine plans, focusing on Gloria and Abundancia veins. Our goal is to be producing from Gloria vein by late 2023, early 2024, which would add 300 to 500 tonnes per day with the longer-term outlook being to add 1,500 tonnes per day from Gloria, Abundancia and Martha veins.

今年3月21日，我們宣布完成自Coeur Mining收購La Preciosa專案的交割。我一直相信，鑑於明顯的協同效益與共用基礎設施，Avino與La Preciosa兩個專案應歸於同一所有權之下。La Preciosa與Avino現有營運高度契合，透過將一個具備近期投產潛力、規模大且高品質的白銀開發專案納入我們的投資組合，不僅進一步強化我們在杜蘭戈（Durango）的布局，同時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。我們正推進內部礦山計畫，聚焦於Gloria與Abundancia礦脈。我們的目標是在2023年末至2024年初從Gloria礦脈開始生產，預計可新增每日300至500噸產量；長期展望則是由Gloria、Abundancia與Martha礦脈合計新增每日1,500噸產量。

Our ESG initiatives continue to move forward as we incorporate principals of sustainability and social responsibility. During the first quarter, the company continued its training of local workforce at the mine. ESG initiatives completed during the first quarter were: community road repairs to improve visibility of speed reducers and cattle guards for safer driving conditions, delivered water tank with capacity of 5,000 liters to the primary school in the community of San Jose de Avino, supplies delivered to health center of Zaragoza to help with building improvements. Recycled containers for waste collection were given to the high school and Zaragoza. Sport and recreation are important to the communities and the company repaired some lighting in its sports complex in San Jose de Avino as well as donating volley balls to support them in their local tournament. Avino hosted a Mining in My Community conference at the High School in Zaragoza, and the students were provided with general knowledge of the mining processes as well as the importance of the industry in the development of other sectors.

我們的ESG倡議持續推進，並將永續與社會責任的原則納入營運。在第一季期間，公司持續在礦區訓練當地勞動力。第一季完成的ESG倡議包括：社區道路修繕，以提升減速帶與牛欄（cattle guards）的可視性，改善行車安全；向San Jose de Avino社區的小學交付一座容量5,000公升的儲水槽；向Zaragoza的健康中心提供物資，以協助建物改善。公司也向高中與Zaragoza提供回收容器用於廢棄物收集。運動與休閒對社區相當重要，公司修復了San Jose de Avino運動綜合設施的部分照明，並捐贈排球以支持其地方錦標賽。Avino在Zaragoza高中主辦「我社區中的採礦（Mining in My Community）」研討會，向學生提供採礦流程的一般知識，以及該產業在帶動其他產業發展方面的重要性。

Avino continues to offer inclusive opportunities by hiring locally, training women for many different roles at site, including underground heavy equivalent operators, rock breakers at surface, in the mill and in the assay lab. The metal markets for the first quarter have been bumpy with volatility brought on by the global crisis. The Russian evasion of Ukraine, which is nearing its third month, has added uncertainty to the global economy just as the world was emerging slowly from the 2-year pandemic.

Avino持續透過在地聘用提供包容性的機會，並培訓女性在現場擔任多種不同職務，包括地下重型設備操作員、地表破碎作業人員、選礦廠以及化驗實驗室等。第一季金屬市場表現顛簸，全球危機引發的波動性加劇。俄羅斯入侵烏克蘭已接近第三個月，正當世界緩慢走出為期兩年的疫情之際，該事件為全球經濟增添了不確定性。

We've seen a range in silver prices since the beginning of the year from $22 to $25 in the beginning of March. It has since tapered down and sits between $21 to $22. According to the World Silver Institute, with no clear end to the Russian-Ukraine war, the near-term outlook remains uncertain with the jump in energy prices, ongoing supply chain disruptions and the reemergence of COVID cases in China, all of this points to downward risk to the global economy.

自年初以來，我們看到白銀價格在22美元至25美元之間波動，並在3月初達到該區間上緣。此後價格逐步回落，目前介於21美元至22美元之間。根據世界白銀協會（World Silver Institute）指出，在俄烏戰爭尚無明確結束跡象的情況下，短期展望仍不明朗；能源價格飆升、供應鏈持續受阻，以及中國COVID病例再度出現，這些因素皆指向全球經濟面臨下行風險。

With the Fed rate hikes coming, these factors, along with high inflation, could mean investment inflows to silver. We continue to believe that the outlook for silver is positive and that demand should see solid growth from 2022 onwards and will be driven by record silver industrial fabrication, increase in green technology and investment demand for physical silver. All of this bodes well for the silver miners and their shareholders. The best leverage to metals is owning producers such as Avino. I will now ask Nathan, our CFO, to present the financial results. Nathan?

隨著聯準會即將升息，這些因素加上高通膨，可能意味著資金流入白銀。我們仍然相信白銀前景正向，且自2022年起需求應可見到穩健成長，成長動能將來自創紀錄的白銀工業製造用量、綠色科技的增加，以及對實體白銀的投資需求。這些都將有利於白銀礦商及其股東。投資金屬的最佳槓桿方式，是持有像Avino這樣的生產商。接下來我將請我們的財務長Nathan報告財務結果。Nathan？

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. Following a strong end to 2021, Avino continued to deliver with great financial results in the first quarter of 2022. We set records for both quarterly revenues and mine operating income. And on a cash operating basis, we generated a mine operating margin of 47%. The company also generated $3.7 million in operating cash flows before working capital changes and $0.03 per share in adjusted earnings.

謝謝你，David。很高興能參與本次電話會議，也歡迎今天加入我們並觀看簡報的各位。在2021年強勁收官之後，Avino在2022年第一季持續交出優異的財務成果。我們在季度營收與礦山營運收益兩方面都創下紀錄。以現金營運基礎計算，我們的礦山營運毛利率達47%。公司亦在扣除營運資金變動前，產生370萬美元的營運現金流，並錄得每股0.03美元的調整後盈餘。

On top of our strong results, and as David previously mentioned, we are thrilled to announce that we have closed the strategic acquisition of the neighboring La Preciosa project from Coeur Mining. This project adds over 135 million silver-equivalent resource ounces on a property within 20 kilometers of the current Avino mining and milling operation. In total, Avino now holds over 290 million silver-equivalent resource ounces with 190 million or 65% of these ounces being silver.

除了強勁的業績外，正如David先前提到的，我們也非常高興宣布，已完成自Coeur Mining收購鄰近的La Preciosa專案這項策略性收購的交割。該專案在距離現有Avino採礦與選礦作業20公里範圍內的礦權上，新增超過1.35億盎司的白銀當量資源量。合計而言，Avino目前持有超過2.90億盎司的白銀當量資源量，其中1.90億盎司（約65%）為白銀。

Following the acquisition payment, the company remains well funded with $11.7 million in cash available at the end of the quarter, which represents a net increase of $2.2 million at the end of the year after factoring in the acquisition payment made in March.

在支付收購款項後，公司資金仍然充裕，於本季末可用現金為1,170萬美元；在納入3月支付的收購款項後，與年末相比淨增加220萬美元。

During Q1, we reported net revenues of $11.1 million from 495,000 silver-equivalent payable ounces sold, which resulted in mine operating income of $4.7 million for the quarter. This includes noncash depreciation and depletion. And on a cash basis, mine operating income was $5.2 million for the first quarter. Avino reported net income after taxes of $0.6 million or $0.01 per share for the first quarter of 2022.

在第一季，我們申報的淨營收為1,110萬美元，來自售出49.5萬盎司白銀當量應付（payable）盎司，並使本季礦山營運收益達470萬美元。該數字包含非現金的折舊與耗竭費用。以現金基礎計算，第一季礦山營運收益為520萬美元。Avino在2022年第一季稅後淨利為60萬美元，或每股0.01美元。

As you can see, Q1 continued to build off our strong fourth quarter for Avino as we continued to demonstrate strong operating margins. This was despite significant inflationary pressures seen around the world, and I want to commend our team in Mexico for the diligent work in keeping our cost structure intact. Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $2.8 million for the quarter, and adjusted earnings was $3.4 million or $0.03 per share. Cash flow from operations before changes in working capital was $3.7 million or $0.03 per share on a diluted basis.

如各位所見，第一季延續Avino強勁的第四季表現，我們持續展現良好的營運利潤率。即便全球面臨顯著的通膨壓力，我仍要肯定我們墨西哥團隊在維持成本結構方面所做的努力。本季息稅折舊攤銷前盈餘（EBITDA）為280萬美元，調整後盈餘為340萬美元或每股0.03美元。扣除營運資金變動前的營運現金流為370萬美元，稀釋後每股0.03美元。

Capital expenditures for Q1 2022 was $0.9 million on a cash basis with total additions being approximately $2 million as the company continues to work with our partners to finance equipment at below or at market interest rates. Capital expenditures for this quarter related to the addition of a new underground mining scoop to assist with the ramp-up of mining operations as well as exploration expenditures at La Potosina and below the current mining operations at ET. Also included was additional drilling on our oxide tailings resource as we completed another 17 step-out holes to increase the footprint of the resource. This project continues to move forward towards the pre-feasibility level in the near term.

2022年第一季資本支出以現金基礎計為90萬美元；由於公司持續與合作夥伴合作，以低於或接近市場利率為設備融資，故本季資本化新增總額約為200萬美元。本季資本支出與新增項目包括：添購一台新的地下採礦鏟運機（scoop），以協助採礦作業擴產；以及在La Potosina與ET現有採礦作業下方的勘探支出。另亦包含對我們氧化物尾礦資源的額外鑽探，我們再完成17個外延（step-out）鑽孔，以擴大資源範圍。該專案在近期將持續推進至預可行性（pre-feasibility）階段。

Rounding things out, and most importantly, Avino generated net income for the second consecutive quarter and $2.5 million in free cash flow, net of capital expenditures and working capital movements, which brings our total up to $5 million in free cash flow generated over the last 2 quarters. Cash cost for silver-equivalent payable ounce for the first quarter were $11.81 and all-in sustaining cash costs were $19.90. As we continue to ramp up, we expect the all-in sustaining cash cost figures to continue to decline due to increased ounces sold and lower per unit variable costs.

最後也是最重要的，Avino連續第二個季度實現淨利，並在扣除資本支出及營運資金變動後，產生250萬美元的自由現金流，使我們過去兩個季度累計產生的自由現金流達500萬美元。第一季每盎司白銀當量應付盎司的現金成本為11.81美元，全維持性現金成本（all-in sustaining cash costs）為19.90美元。隨著我們持續擴產，我們預期全維持性現金成本將因售出盎司數增加及單位變動成本下降而持續下滑。

With Q1 marking the second quarter of uninterrupted mining operations since 2019, I am pleased to report that the financial outlook for Avino is very positive. With strong operating margins and cash on hand of $11.7 million following the completed upfront consideration payments, our focus is on our Mexican assets and adding value for our shareholders and stakeholders throughout the rest of 2022. I will now hand it back over to David for a discussion on what Avino has planned for the rest of the year.

隨著第一季標誌著自2019年以來連續不間斷採礦作業的第二個季度，我很高興報告 Avino 的財務前景非常正面。在完成預付款對價支付後，我們擁有1,170萬美元的現金，加上強勁的營運利潤率，我們的重點將放在墨西哥資產，並在2022年剩餘時間持續為股東與利害關係人創造價值。接下來我把時間交回給 David，請他說明 Avino 對今年剩餘時間的規劃。

Thank you, Nathan. To recap, the first quarter was busy with the completion of La Preciosa acquisition drove results from several areas on the Avino property and the ongoing construction of the dry stack tailings. Activities at the mine site during the second quarter include continuing production ramp-up at the Avino Mine, ongoing training, dry stack facility nearing completion. We currently have drills turning on La Potosina at ET below level 17 and Brecha de Bajo veins. Moving forward with a comprehensive metallurgical test work program on the oxide tailings project to move it to development stage. Internal mine plan focused on Gloria and Abundancia veins at La Preciosa, production for the full year is on track between 2.2 million to 2.6 million ounces of silver equivalent.

謝謝你，Nathan。回顧一下，第一季相當忙碌：完成 La Preciosa 收購，帶動 Avino 礦區多個區域的成果，以及乾式堆疊尾礦設施的持續建置。第二季礦區現場的活動包括：持續推進 Avino 礦的產量爬坡、持續訓練、乾式堆疊設施接近完工。我們目前在 La Potosina 的 ET 低於第17水平，以及 Brecha de Bajo 礦脈進行鑽探。後續將推動氧化尾礦專案的全面冶金試驗工作計畫，以將其推進至開發階段。內部礦山計畫聚焦於 La Preciosa 的 Gloria 與 Abundancia 礦脈；全年產量目標維持在220萬至260萬盎司白銀當量的進度上。

We expect to generate significant operating cash flow this year, which we plan to reinvest in exploration and further mine development. Also, in keeping with our strategy of divesting of noncore assets, we announced last week that we had granted an option to Endurance Gold to acquire the Olympic Claims, which are located on the south side of Carpenter Lake in the Lillooet Mining Division, near Bralorne in British Columbia. The closing of the acquisition of La Preciosa sets us on a pathway to expand our current mining complex through regional growth and the goal of achieving intermediate producer status together with exciting drill results from La Potosina and the oxide tailings, the events of the quarter are just the beginning of an important time in Avino's history, and we are looking forward to the remainder of the year and beyond. The first quarter is behind us, and we are well into the second quarter, and we are excited as we look forward to keeping the momentum going. We would now like to move the call to question-and-answer portion. Operator?

我們預期今年將產生可觀的營運現金流，並計畫再投入於勘探與進一步的礦山開發。此外，延續我們處分非核心資產的策略，我們上週宣布已授予 Endurance Gold 一項選擇權，以收購 Olympic Claims；該礦權位於卑詩省 Lillooet 採礦分區、靠近 Bralorne 的 Carpenter Lake 南側。La Preciosa 收購案的完成，使我們走上透過區域成長擴大現有採礦綜合體的道路，並以達成中型生產商地位為目標；再加上 La Potosina 與氧化尾礦令人振奮的鑽探結果，本季的事件只是 Avino 歷史上一段重要時期的開端。我們期待今年剩餘時間以及更長遠的未來。第一季已經過去，我們也已進入第二季，並對於持續保持動能感到振奮。接下來我們將進入問答環節。接線員？

(Operator Instructions) Our first question comes from Jake Sekelsky of Alliance Global Partners.

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

Just starting with costs. I mean, Nathan, you mentioned this, obviously, we've seen industry-wide cost inflation across the board. Keeping all spending costs below $20 an ounce in the first quarter was quite impressive. I mean, can you maybe just touch on some of the things you're doing and some proactive steps that you're taking to manage cost inflation going forward, whether it's labor, energy, consumables, anything like that?

先從成本談起。我是說，Nathan，你提到過這點；顯然我們看到整個產業普遍出現成本通膨。第一季能把所有支出成本維持在每盎司20美元以下相當令人印象深刻。你能否談談你們正在做的一些事情，以及為了因應未來成本通膨所採取的主動措施？不論是人力、能源、耗材或其他方面。

Sure. That's a good question, Jake, especially given where the world is right now. Some of the things that Avino is doing really is just continue what we've always done. I think we've always maintained a pretty strong cost structure. And to get ahead of the curve on the inflation side, we have done a bit of stockpiling at site, and that's more just to deal with any supply chain disruptions, not just the cost side of things. So we're just continuing to maintain what we've always done and making sure that we're ready for any interruptions moving forward.

當然。這是個好問題，Jake，尤其是在當前全球情勢之下。Avino 正在做的一些事情，其實就是延續我們一貫的作法。我認為我們一直維持相當強健的成本結構。為了在通膨方面超前部署，我們在礦區做了一些囤貨，這更多是為了應對供應鏈中斷，而不只是成本面的考量。所以我們會持續維持既有作法，並確保未來若有任何中斷，我們都已做好準備。

Yes. And during the COVID shutdown, we increased our inventory of parts and reagents and consumables. So we're sitting in a good position.

是的。而且在 COVID 停工期間，我們提高了零件、試劑與耗材的庫存。因此我們目前處於良好的位置。

Yes. Got it. Got it. Okay. And then just on La Preciosa, I mean the acquisition is closed now. When do you think we might see some type of formal work or exploration program announced there? Is that a midyear type event you think?

是的。了解，了解。好。接著談 La Preciosa，收購現在已完成。你認為我們何時可能會看到那邊公布某種正式的工作或勘探計畫？你覺得會是年中左右的事件嗎？

Currently, we're working on the social aspects, getting an agreement with [hetos]. There's 3 different [heto] groups. And there's agreements pending. So we think probably within 6 or 7 months, we'll have those in place, and then we'll roll out our plans following that.

目前我們正在處理社會面向的事項，與 [hetos] 達成協議。那裡有3個不同的 [heto] 團體，相關協議仍在等待中。因此我們認為大概在6到7個月內可以就位，之後我們會在此基礎上推出我們的計畫。

Okay. So this time we might see some activity there in the first half of next year or first end of the year?

好的。所以這次我們可能會在明年上半年或今年年底前看到那邊有一些活動？

Yes. I mean based on the internal mine plan -- planning, we expect to start surface works early next year. And we also have the dedicated power line, the 20-kilometer dedicated power line cable of 5 megawatts, only utilizing 3. We're planning to extend that over to La Preciosa to the portal where we're planning a new portal. We're planning to put in a decline in 6 or 7 levels.

是的。我的意思是，根據內部礦山計畫的規劃，我們預期明年初開始地表工程。我們也有一條專用電力線：20公里的專用電纜，容量5兆瓦，目前只使用3兆瓦。我們計畫把它延伸到 La Preciosa，接到我們計畫新設的坑口位置。我們計畫打設一條斜坡道（decline），下到6或7個水平。

And so that development work will be underway early next year and possibly be generating ore by late next year. Also, there's 50,000 tonnes of ore sitting on surface from when Luismin had it in the '80s and '90s, and that was never processed. So that's a little gift there that's worth about $5 million or $6 million that's probably going to pay for the portal and the surface works. So we're in discussions with the locals there to remove that. So that could happen this year.

因此，這些開發工作將在明年初展開，並可能在明年年底前開始產出礦石。另外，地表上還堆放著5萬噸礦石，是 Luismin 在1980與1990年代持有時留下的，當時從未處理過。所以那算是一份小禮物，價值大約500萬到600萬美元，可能足以支付坑口與地表工程的費用。我們正在與當地居民討論移除這些礦石，因此今年就可能發生。

Our next question comes from Heiko Ihle of H.C. Wainwright.

下一個問題來自 H.C. Wainwright 的 Heiko Ihle。

Building on what Jake just asked, would you be willing to eventually guess on how much you spend on La Preciosa in the last 2 months?

延續 Jake 剛才的提問，你們是否願意最終推估一下，過去2個月在 La Preciosa 上花了多少？

Sure, Nathan here. So far, not a whole lot, given we're just working on the integration and just making sure that the transition goes smoothly. We're still pretty focused on Avino and ramping up there. And then our focus will shift once we have the proper agreements in place, and we can start on the surface works and some more exploration.

當然，我是 Nathan。到目前為止不算多，因為我們主要在做整合，並確保交接順利。我們仍相當專注於 Avino 並推進那邊的產量爬坡。等到取得適當的協議後，我們的重心才會轉移，屆時就能開始地表工程與更多勘探。

Fair. And I mean is -- do you have a figure that you'd be willing to say that we should expect and spend for the rest of '22 or for all '22?

合理。那麼，你是否有一個數字願意分享，讓我們預期2022年剩餘時間或整個2022年大概會花多少？

Is that specific to Preciosa or company-wide on capital?

你指的是 Preciosa 的支出，還是公司整體的資本支出？

Yes. Yes, Preciosa.

是的，是 Preciosa。

On La Preciosa? It really depends, again, on the timing of getting all the proper social licenses and agreements in place. So I can't say for sure it would -- it really depends on that timing. I would say any spend would come later in the year, and we're not thinking multimillions here. It's not going to be fairly significant as any development to likely start in 2023.

就 La Preciosa 而言？這真的取決於取得所有必要社會許可與協議的時程。所以我無法確定——確實取決於那個時間點。我會說任何支出應該會落在今年較後段，而且我們不認為會是數百萬美元等級；不會是非常顯著的金額，因為任何開發工作很可能要到2023年才開始。

Got it. And then finally, David, you mentioned earlier on this call that you always thought that Preciosa should be under the same umbrella.

了解。最後，David，你在本次電話會議較早時提到，你一直認為 Preciosa 應該在同一個體系之下。

Yes.

是的。

Are there any quantifiable advantages that you can already take advantage of? I mean access to a different drilling site or road access or anything like that, that you didn't have before since closing?

是否已經有任何可量化的優勢可以立刻利用？例如能進入不同的鑽探位置、道路通行，或任何在交割前沒有的條件？

Yes. I mean, Heiko, I can probably take that one back. I think the most important thing is going to be low -- having one giant -- one management operation and one operating asset really in one location. And I think the synergies there and the cost structure there will be extremely beneficial and will save us on infrastructure and development. And I think that's why Avino was able to be so competitive in acquiring this.

是的。我的意思是，Heiko，我大概可以回應這題。我認為最重要的是——以較低的成本——擁有一個大型的、單一的管理與營運體系，並且在同一地點實際上只有一個營運資產。我認為其中的協同效益與成本結構將極為有利，並能在基礎設施與開發上為我們節省成本。我想這也是 Avino 能在收購這項資產時具備高度競爭力的原因。

Yes. But also the oxide tailings project. If we need to build the leach pads out in the valley, we've got more ground now available. So we could be trucking oxide tailings material in one direction and bringing ore back in another direction. So yes, I mean, that's a pretty good synergy there.

是的。但也包括氧化物尾礦專案。如果我們需要在山谷裡建造浸出墊，現在我們有更多可用的場地。因此，我們可以把氧化物尾礦材料往一個方向運送，同時把礦石從另一個方向運回來。所以是的，我的意思是，這裡確實有相當不錯的協同效應。

Yes. And given the goals of increasing production and overall ounces produced at Avino, this is probably the best, most accretive way to do it versus acquiring something in another state or another area because we can -- we have the administrative team already in place, and we just need to expand on that to manage it.

是的。而且考量到在 Avino 提高產量與整體產出盎司數的目標，相較於收購另一個州或另一個地區的資產，這可能是最好、最具增值性的方式，因為我們——我們已經有行政團隊就位，只需要在此基礎上擴充來管理它。

Yes. And there's no competition for labor. I mean I was after Mitch, for years, telling them that if Newmont and Barrick can do it in Nevada, we should be looking at operational synergies here. And I thought that they would take the bull by the horns. But apparently, they turned over the reins to us. So it makes sense to what we're doing because we have the expertise in the area with Carlos and his team.

是的。而且勞動力方面沒有競爭。我的意思是，我多年來一直追著 Mitch，告訴他們，如果 Newmont 和 Barrick 能在內華達做到，我們也應該在這裡尋找營運協同。我原以為他們會主動把握機會。但顯然，他們把主導權交給了我們。所以這與我們正在做的事情相符，因為我們有 Carlos 和他的團隊在當地的專業能力。

Our next question comes from Matthew O'Keefe of Cantor Fitzgerald.

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

Just a quick question for me on the -- on Avino, your throughput. What's your throughput now, I guess, because you're still ramping up. Where are we with throughput sort of end of Q1 and now as we're well into Q2? Where are we in? Is that continuing to rise through the year? What are the bottlenecks there?

我這邊有個簡單問題，關於——關於 Avino 的處理量。你們現在的處理量是多少？我想你們還在爬坡提升。Q1 末以及現在已經進入 Q2 一段時間了，處理量到哪裡了？今年內是否會持續上升？瓶頸在哪裡？

Right, Matt. Yes, thanks for the question. I think I'll answer that last part first, actually. The bottlenecks right now, we have to improve the quality of the ramp from a physical standpoint, just smooth that out to increase the speed for trucks and reduce kind of maintenance there in addition to some operator training. So that's kind of the key focus for us is getting qualified, trained underground miners to help us ramp up production because we're currently mine limited at this point. So that's our focus.

好的，Matt。是的，謝謝你的問題。我想我先回答最後那一部分。現在的瓶頸是，我們必須從實體條件上改善斜坡道的品質，把它整平順一些，以提高卡車行駛速度並降低那方面的維護需求，另外也需要一些操作員訓練。所以我們的重點是，找到合格、受過訓練的地下礦工來協助我們提升產量，因為目前我們在這個階段是受限於採礦端。因此這就是我們的重點。

Okay. Do you -- can you tell us what your throughput is right now? Or...

好的。那你——你能告訴我們你們現在的處理量是多少嗎？或者……

Yes, on a daily basis or a monthly basis?

可以，是以每日還是每月為基準？

Yes. Yes.

是的。是的。

We're looking to transition some time into Q3 to get us up to that nameplate production up to 2,500 -- or 2,200 to 2,500 tonnes per day. Right now, we're operating about 1,400 to 1,900 tonnes per day.

我們希望在 Q3 的某個時間點完成轉換，讓我們達到銘牌產能，也就是每天 2,500——或 2,200 到 2,500 公噸。現在我們的運作大約是每天 1,400 到 1,900 公噸。

Okay. So pretty much on track, I think, from what we talked about last time.

好的。所以我想，基本上跟我們上次談到的進度差不多，算是在軌道上。

Yes. Yes, we're hoping to.

是的。是的，我們希望如此。

Okay. And then just one other question on CapEx. I know Heiko touched on this, but what is the sort of estimate for the balance of the year company-wide on CapEx spend?

好的。然後還有一個關於資本支出（CapEx）的小問題。我知道 Heiko 提到過，但公司層面今年剩餘期間的資本支出金額估計大概是多少？

Yes. So I think at the beginning of the year, we put out our guidance around both in the $8 million range, and that was including all exploration. We think it might be a bit less on a cash basis just because of some of the larger pieces we are leasing. And so that -- those costs will be spread out over a few years. But I still think we have probably in the range of about $4 million to $5 million left included in Q2, and that includes exploration as we drill at a fairly low cost. And again, I want to emphasize that it's not including La Preciosa, which will start in '23.

是的。所以我想在年初，我們發布的指引大約是在 800 萬美元左右，且包含所有勘探。我們認為以現金基礎來看可能會略低一些，因為有些較大型的設備我們採用租賃。因此——那些成本會分攤到幾年。但我仍然認為，我們大概還剩下約 400 萬到 500 萬美元，會包含在 Q2 裡，而這也包含勘探，因為我們鑽探成本相當低。再一次，我要強調，這不包含 La Preciosa，該項目將於 2023 年開始。

Right. So no real inflationary hits to you there.

了解。所以你們那邊沒有受到什麼實質的通膨衝擊。

No, we factored those into our budgets pretty heavily already at the beginning of the year. We kind of -- everyone saw the freight train coming. So we think that we're still going to be well within or under our guidance of I think it was $7 million to $9 million.

沒有，我們在年初就已經把那些因素相當充分地納入預算。我們算是——大家都看到那列貨運列車要來了。所以我們認為我們仍會遠在指引範圍內，或低於指引；我記得指引是 700 萬到 900 萬美元。

$7 million to $8 million.

700 萬到 800 萬美元。

(Operator Instructions) Our next question comes from Joseph Reagor of ROTH Capital Partners.

（接線員指示）我們的下一個問題來自 ROTH Capital Partners 的 Joseph Reagor。

So most of the things I wanted to touch on were already asked by prior callers, but just thinking about how the markets are right now. Are there any precautions you guys are taking from a balance sheet standpoint or from -- as you make decisions on capital spending over the rest of the year to maintain your strong balance sheet?

我想談的大部分內容前面的來電者都已經問過了，但就目前市場狀況來看，你們是否在資產負債表方面，或在今年剩餘期間做資本支出決策時，採取任何預防措施來維持你們強勁的資產負債表？

Yes, Joe, good question. Nathan here. I think we're continuing to monitor everything as far as what's going on with silver and copper and gold prices and what's going on in the market. We don't need to raise money. I mean I think we've gotten that question a number of times, but we definitely do not need to raise money to continue funding our general operating and capital activities. There's not really any pressure there. So some of the things we're doing just to preserve that. Again, just checking in daily, monthly, weekly on the progress of our projects. All of them are financed as it stands now. So we're not overly concerned. But again, just ensuring that we're maintaining the cost structure that I touched on earlier in the call.

是的，Joe，這是個好問題。我是 Nathan。我想我們會持續監控所有情況，包括白銀、銅和黃金價格的走勢，以及市場上發生的事情。我們不需要募資。我的意思是，我們被問過很多次，但我們確實不需要募資就能持續支應一般營運與資本活動。這方面沒有什麼壓力。所以我們為了維持這點所做的一些事情，就是每天、每月、每週檢視各專案的進度。就目前而言，它們都已經有資金到位。因此我們不會過度擔心。但同時，我們也會確保維持我在電話會議前面提到的成本結構。

And filling the mill is our #1 priority.

而且讓磨礦廠滿載是我們的第一優先事項。

Yes. Yes, and bringing our per unit cost down, as David mentioned by filling the mill.

是的。是的，並且如 David 所提到的，透過讓磨礦廠滿載來降低我們的單位成本。

Okay. And then I noticed during the quarter there was -- looked like there was a bit of an inventory sale. Your silver equivalent sold was greater than the production. Was that intentional or just a timing thing?

好的。然後我注意到本季似乎——看起來有一點庫存出售。你們售出的白銀當量高於產量。那是刻意的，還是只是時間點的因素？

I would say a bit of both. We -- obviously, we're building inventory in Q4. Production was well over -- close to 520,000 ounces of silver equivalent, and we only sold about 80% of that. So we did have a bit of an inventory build at the end of December, which was subsequently sold in January, February. It wasn't really intentional per se to hold it back, but we were -- we did receive some benefits as far as pricing goes on that standpoint. So we're happy with how that turned out. And yes, our inventory did decline a bit at the end of Q1 compared to the end of the year.

我會說兩者都有。我們——很明顯地，我們在 Q4 有建立一些庫存。產量遠高於——接近 52 萬盎司白銀當量，但我們只賣出了大約 80%。所以在 12 月底確實有一些庫存增加，之後在 1 月、2 月售出。這並不是刻意要把它留著不賣，但就定價而言，我們確實獲得了一些好處。所以我們對結果很滿意。是的，相較於年底，Q1 末的庫存確實下降了一些。

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，請他做結語。

Thanks, operator, and thanks, everyone. We're thrilled about our Q1 financial performance with record revenue and closing of La Preciosa was a major milestone for us, puts us on a path to achieving intermediate producer status, which we'll share with everyone as we develop those plans. So thank you very much, and have a great day.

謝謝接線員，也謝謝各位。我們對 Q1 的財務表現感到非常振奮，創下營收新高，而完成 La Preciosa 的交割對我們而言是一個重大里程碑，讓我們走在邁向中型生產商地位的道路上；隨著我們制定這些計畫，我們也會與大家分享。非常感謝，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。您可以掛斷電話線。感謝您的參與，祝您有愉快的一天。