Avino Silver & Gold Mines Ltd (ASM) 2022 Q2 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver & Gold Mines Second Quarter 2022 Financial Results Conference Call. (Operator Instructions) And the conference is being recorded. (Operator Instructions)

感謝您的等候。我是會議接線員。歡迎參加 Avino Silver & Gold Mines 2022 年第二季財務業績電話會議。（接線員指示）本次會議正在錄音。（接線員指示）

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

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. Q2 2022 Financial Results Conference Call and Webcast. To join this webcast and conference call, there is a link in our news release dated August 10, 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 the page.

謝謝，接線員。各位早安，歡迎參加 Avino Silver & Gold Mines Ltd. 2022 年第二季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 8 月 10 日發布的新聞稿中提供了連結，可在我們網站的 News 2022 下找到。此外，您也可以在 Investors 分頁下找到連結，點選 Events，您將在頁面頂端看到連結。

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, Technical Services, Peter Latta.

今天與會者包括公司總裁兼執行長 David Wolfin；財務長 Nathan Harte；營運長 Carlos Rodriguez；以及技術服務副總裁 Peter Latta。

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

在開始之前，請注意管理團隊今天在本次電話會議中所作的某些陳述，可能包含適用證券法所定義的前瞻性資訊。前瞻性陳述受已知與未知風險、不確定性及其他因素影響，可能導致實際結果與該等前瞻性陳述所明示或暗示者存在重大差異。除非適用法律要求，公司無意且不承擔更新該等前瞻性陳述或資訊的任何義務。欲了解更多資訊，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 Q2 2022 Financial Results Conference Call and Webcast. Thank you for joining us.

謝謝，Jen。各位早安，歡迎參加 Avino 2022 年第二季財務業績電話會議與網路直播。感謝各位加入。

Before we begin, please note that the full financial statements and MD&A are available on our website. On today's call, we will cover the highlights of the second quarter 2022 financial and operating performance and our plans for the third quarter, and then we will open it up for questions. Please note that all figures are stated in U.S. dollars unless otherwise noted.

在開始之前，請注意完整財務報表與管理階層討論與分析（MD&A）可在我們網站上查閱。今天的電話會議將涵蓋 2022 年第二季財務與營運表現重點，以及我們對第三季的規劃，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。

Our second quarter performance was strong operationally, highlighted by steady production from the Avino Mine and higher grades that helped to drive positive results. In addition, the mine optimization work continued in Q2 for the underground mining processes. They are aimed at managing and tracking and planning underground movements, which helps increase efficiencies across communication and planning. We have also received encouraging drill results from the Oxide Tailings project and from the Avino ET mine area below the current Level 17 mining area. The acquisition of La Preciosa closed during the first quarter and during the second quarter, we continued developing our internal plans for the property. The property holds one of the largest undeveloped primary silver resources in Mexico and is located adjacent to our existing operations at the Avino Mine.

我們第二季在營運面表現強勁，亮點包括 Avino 礦場穩定的產量，以及較高品位帶動的正面成果。此外，第二季持續進行地下採礦流程的礦山優化工作，目標在於管理、追蹤與規劃地下作業移動，進而提升溝通與規劃的效率。我們也從氧化尾礦（Oxide Tailings）專案，以及 Avino ET 礦區（位於目前第 17 水平採礦區以下）取得令人鼓舞的鑽探結果。La Preciosa 的收購已於第一季完成交割，第二季我們持續制定該資產的內部開發規劃。該資產擁有墨西哥最大規模之一、尚未開發的原生銀資源，且緊鄰我們在 Avino 礦場的既有營運。

Our financial performance in the second quarter indicates strong operational achievements that helped to generate revenues of $9.4 million, $3.9 million in mine operating income and as well, lower cash cost and lower all-in sustaining costs were realized. Nathan Harte, Avino's CFO, will expand on our financial results later in the call.

第二季的財務表現反映出強勁的營運成果，帶動營收達 940 萬美元、礦山營運收益 390 萬美元，同時也實現較低的現金成本與較低的全維持成本（AISC）。Avino 財務長 Nathan Harte 將在稍後進一步說明我們的財務結果。

The second quarter production marks the third full quarter following the restart of operations in August 2021. With production coming from the Avino mine only, it is compared to Q1 2022 as that was the most recent quarter of consolidated production. The production highlights are as follows. Silver equivalent production increased 42% to 649,569 ounces. Silver production increased to 225,537 ounces. Copper production increased by 35% to 1.6 million pounds. Gold production increased by 69% to 1,350 ounces. Mill throughput increased by 6% to 119,224 tonnes. The recoveries for copper increased by 3%, and gold recovery increased by 1% with the recoveries of silver decreasing by 1%.

第二季產量為自 2021 年 8 月重啟營運後的第三個完整季度。由於產量僅來自 Avino 礦場，因此與 2022 年第一季相比（該季為最近一期的合併產量季度）。產量重點如下：白銀當量產量增加 42% 至 649,569 盎司；白銀產量增加至 225,537 盎司；銅產量增加 35% 至 160 萬磅；黃金產量增加 69% 至 1,350 盎司；選礦廠處理量增加 6% 至 119,224 公噸。銅回收率提高 3%，黃金回收率提高 1%，白銀回收率下降 1%。

On a gram per tonne basis, the feed grade for silver increased by 30%. For gold, the increases was 57%. And for copper, the grade increased by 23%. During the quarter, our exploration and drilling program provided encouraging results across the Oxide Tailings project and the Avino ET area below Level 17. At the end of Q2 2022, a total of 7,694 meters have been drilled. In April, we announced drill results from 2021 drill program on the Oxide Tailings project that sits within our Tailings Storage Facility #1. There were 110 holes for a total of 3,645 meters of drilling. This drilling follows up the 2015/2016 campaign from which the 2016 NI 43-101 preliminary economic assessment is based on.

以每公噸克數計，入料品位方面：白銀品位提高 30%；黃金品位提高 57%；銅品位提高 23%。本季我們的勘探與鑽探計畫在氧化尾礦專案及第 17 水平以下的 Avino ET 區域均取得令人鼓舞的成果。截至 2022 年第二季末，累計鑽探總長度為 7,694 公尺。4 月我們公布了 2021 年氧化尾礦專案鑽探計畫的結果，該專案位於我們的尾礦貯存設施 #1（Tailings Storage Facility #1）內，共完成 110 個孔、總鑽探長度 3,645 公尺。此鑽探為 2015/2016 年活動的後續工作，而 2016 年 NI 43-101 初步經濟評估（PEA）即以該次活動為基礎。

The results were encouraging and included 0.76 gold grams per tonne over 19.5 meters. With gold grades better than anticipated, we are eager to understand the implications for the total resource. Additionally, the 2022 drill program from the Oxide Tailings project included 17 drill holes, which we received and released in May. The gold grade in the oxide portion of the recent holes continues to be encouraging and giving the distance of the step-out holes. We feel this will provide meaningful resource expansion significantly beyond was described in the previous PEA.

結果令人鼓舞，其中包括在 19.5 公尺區間內，黃金品位 0.76 克/公噸。由於黃金品位優於預期，我們迫切希望了解其對總資源量的影響。此外，2022 年氧化尾礦專案鑽探計畫包含 17 個鑽孔，我們已於 5 月收到並發布。近期鑽孔中氧化帶的黃金品位持續令人振奮，且考量到外推（step-out）鑽孔的距離，我們認為這將帶來具意義的資源擴張，幅度可望顯著超越先前 PEA 所描述的範圍。

The positive results from the oxide tailings drilling supports our belief that this project will factor significantly into Avino's growth strategy. Also during the quarter, we announced drill results from the Avino ET area below the current Level 17 mining area. We received and reported assays from 6 holes. These results confirm the downdip continuity of widths and grades of the Avino vein extending significantly, potentially to a depth of at least 290 meters downdip below the current development. This is encouraging and confirms our expectations that mineralization continues at depth as well and contains significantly higher copper mineralization with grade of copper intercepts encountered at depth within our permit boundaries.

氧化尾礦鑽探的正面結果支持我們的看法：此專案將在 Avino 的成長策略中扮演重要角色。本季我們也公布了位於目前第 17 水平採礦區以下的 Avino ET 區域鑽探結果。我們收到並報告了 6 個鑽孔的化驗結果。這些結果證實 Avino 礦脈在傾向下延伸方向（downdip）的厚度與品位具有連續性，並顯著延伸，可能至少延伸至目前開發面以下 290 公尺的傾向下深度。這令人鼓舞，並印證我們對礦化在深部仍持續存在的預期，同時顯示深部含有顯著較高的銅礦化；在我們許可範圍內的深部亦遇到銅品位較高的截距。

We encourage you to view the interactive 3D model on our website, which is linked to the June 13 press release showing the location of the drill results in proximity to the current mine area. Full drill results, including images for the 2021 and 2022 drill programs are available on our website.

我們鼓勵您瀏覽公司網站上的互動式 3D 模型（連結於 6 月 13 日新聞稿），其中展示鑽探結果位置與現有礦區的相對關係。2021 與 2022 年鑽探計畫的完整鑽探結果（含圖片）可在我們網站上查閱。

Since 2019, following our sale of Bralorne, we have focused our resources on creating value at the Avino property by optimizing production, executing an exploration strategy focused on growing the resource base and completing a strategic property acquisition in La Preciosa. At La Preciosa, we are currently conducting community engagement in the nearby towns adjacent to the property as well as studies on how to optimally integrate into our mine plan to leverage the existing facilities and infrastructure.

自 2019 年出售 Bralorne 之後，我們將資源聚焦於透過優化生產、執行以擴大資源基礎為核心的勘探策略，以及完成 La Preciosa 的策略性資產收購，來在 Avino 資產上創造價值。在 La Preciosa，我們目前正於鄰近該資產的周邊城鎮進行社區參與，同時研究如何以最佳方式納入我們的礦山計畫，以運用既有設施與基礎建設。

Avino is fully committed to moving this project forward as part of the company's organic growth strategy. This is a major milestone for Avino and sets us up on the path of achieving our goals of intermediate producer status.

Avino 全力致力於推動此專案，作為公司內生成長策略的一部分。這是 Avino 的一項重大里程碑，並使我們踏上實現「中型生產商」目標的道路。

During Q2, we continued moving forward on the capital projects that we outlined for the year. The dry-stack tailings facility is nearing completion, which means we are inching closer to decommissioning the current Tailings Storage Facility #1. The team in Durango continues to make significant progress during Q2 on the facility, which I was able to see firsthand at the end of May. The project is expected to be fully operational during the second half of 2022 and brings the company towards achieving the guidelines within global industry standards on tailings management, along with the previously mentioned community stewardship.

第二季期間，我們持續推進年初所規劃的資本專案。乾式堆置尾礦設施（dry-stack tailings facility）已接近完工，意味著我們距離退役目前的尾礦貯存設施 #1 更近一步。杜蘭戈（Durango）團隊在第二季於該設施上持續取得顯著進展，我在 5 月底親自到現場也見證了這一點。該專案預期將於 2022 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，同時也呼應前述的社區管理承諾。

We have posted updated photos of the construction as well as the 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 of our website under the Investors tab and watch it.

我們已在網站上發布更新的施工照片以及縮時影片，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 Video 區域觀看。

Our ESG initiatives continue to move forward as we incorporate principles of sustainability and social responsibility. Following the restart of operations, it has been the company's directive to train and hire a local workforce. By providing jobs to those in the surrounding communities, we aim to foster generations of enthusiastic and dedicated ambassadors of Avino.

我們的 ESG 倡議持續推進，並將永續性與社會責任原則納入營運。自重啟營運以來，公司指示優先培訓並聘用在地勞動力。透過為周邊社區居民提供工作機會，我們希望培育一代又一代充滿熱忱且投入的 Avino 推廣大使。

ESG initiatives completed during the second quarter were: tree planting campaign in the community of Panuco de Coronado, donating over 100 fruit trees; volleyball tournament held in the community of San Jose de Avino to promote sport and family coexistence as well as other sport equipment delivered to the surrounding communities; mining training and education seminar held for secondary school students of San Jose de Avino and the elementary school of Panuco de Coronado; cleaning and maintenance campaigns of landfills in the communities of San Jose de Avino, Panuco de Coronado and Zaragoza; continued work to repair Panuco roads to Madero, San Juan; classroom renovations at the San Jose de Avino Community Elementary School; provided construction materials for modernization projects, which is commencing at the San Jose de Avino cemetery.

第二季完成的ESG倡議包括：在Panuco de Coronado社區舉辦植樹活動，捐贈超過100棵果樹；在San Jose de Avino社區舉辦排球錦標賽，以促進運動與家庭共融，並向周邊社區交付其他運動器材；為San Jose de Avino的中學生及Panuco de Coronado的小學舉辦採礦訓練與教育研討會；在San Jose de Avino、Panuco de Coronado及Zaragoza社區進行垃圾掩埋場清潔與維護活動；持續進行Panuco通往Madero、San Juan道路的修復工作；San Jose de Avino社區小學教室翻新；提供建材以支援現代化工程，該工程將於San Jose de Avino公墓啟動。

In collaboration with city council of the municipality of Panuco de Coronado and the local authority of the community of San Jose de Avino, the company assisted the communities with an upgrade well for drinking water; delivered hand tools for the technical school #47 of the community of Panuco de Coronado for their agricultural classes; continued road maintenance to the main access road to the mine.

公司與Panuco de Coronado市鎮市議會及San Jose de Avino社區地方當局合作，協助社區升級飲用水水井；向Panuco de Coronado社區的第47號技術學校交付手工具，供其農業課程使用；並持續維護通往礦區的主要聯外道路。

Finally, we are very pleased to announce that Avino has received for the first time the ESR Award granted by the Mexican Center for Philanthropy and the Alliance for Corporate Social Responsibility. The ESR Award is obtained through a diagnostic process based on indicators reviewed and endorsed annually by a committee of experts in the various CSR areas. This is an extremely prestigious award in the Mexican business world, granted each year to a select group of enterprises in recognition of the efforts to make a voluntary and public commitment to implementing socially responsible management and ongoing improvements as part of business culture and strategy. We are thrilled to receive the ESR award as this is a great accomplishment for Avino.

最後，我們非常高興宣布，Avino首次獲得由墨西哥慈善中心（Mexican Center for Philanthropy）與企業社會責任聯盟（Alliance for Corporate Social Responsibility）頒發的ESR獎。ESR獎係透過一項診斷流程取得，該流程以各項指標為基礎，並由涵蓋不同CSR領域的專家委員會每年審查與認可。這是在墨西哥商界極具聲望的獎項，每年頒發給少數企業，以表彰其努力做出自願且公開的承諾，將社會責任管理的落實與持續改善納入企業文化與策略的一部分。我們非常興奮能獲得ESR獎，這對Avino而言是一項重大成就。

I would like to express my congratulations to the entire Avino team with a special thanks to the ESG team in Durango led by Oscar Lara, Avino's Superintendent of Corporate Social Responsibility, whose proactive approach to governance was the top priority since joining the company a little over a year ago. Avino continues to be committed to our employees, communities, shareholders and stakeholders as part of our mission, vision and values.

我想向整個Avino團隊表達祝賀，並特別感謝由Oscar Lara領導、位於Durango的ESG團隊；Oscar Lara為Avino企業社會責任主管（Superintendent of Corporate Social Responsibility），自一年多前加入公司以來，其在治理方面的積極作為一直是首要重點。Avino將持續致力於員工、社區、股東及利害關係人，這是我們使命、願景與價值觀的一部分。

During the second quarter, volatility in the markets persisted with some negativity due to rising interest rates, inflation and a strong U.S. dollar, which put pressure on precious metals. We've seen a range in silver prices during the quarter from a high on April 19 of $25.91 to a low on June 30 of $20.41. This is an interesting time, and we should probably brace for continued volatility and higher interest rates. We will take a measured approach to all operational activities during this inflationary period.

第二季期間，市場波動持續，因升息、通膨以及強勢美元而出現一些負面情緒，對貴金屬造成壓力。我們看到本季白銀價格區間介於4月19日高點25.91美元與6月30日低點20.41美元之間。這是一個有趣的時期，我們可能需要為持續波動與更高利率做好準備。在此通膨期間，我們將對所有營運活動採取審慎的做法。

We continue to believe that the outlook for silver is positive and that the silver 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.

我們仍然相信白銀前景正面，且自2022年起白銀需求應可見到穩健成長，成長動能將來自綠色科技帶動的白銀工業製造用量創新高，以及對實體白銀的投資需求。

I will now ask Nathan Harte, Avino's Chief Financial Officer, to present the financial results for Q2 2022. Nathan?

接下來我將請Avino財務長Nathan Harte報告2022年第二季的財務結果。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.

謝謝你，David。很高興參與本次電話會議，也歡迎今天加入並觀看我們簡報的各位。

Following a strong end of 2021 and first quarter of 2022, Avino continued to deliver meaningful financial results in the second quarter. On a cash operating basis, we generated a consistent mine operating margin of 47%, same as in the first quarter. The company also generated $2.5 million in operating cash flows before working capital changes and $0.02 per share in adjusted and unadjusted earnings. Following the acquisition cash payment of $15.3 million, the company remains well funded with $12.8 million in cash available at the end of the second quarter. This represents a net increase of $3.3 million from the end of the year after factoring in the acquisition payment made in March.

在2021年末及2022年第一季強勁表現之後，Avino在第二季持續交出具意義的財務成果。以現金營運基礎計算，我們產生一致的礦山營運毛利率47%，與第一季相同。公司亦在營運資金變動前產生250萬美元的營運現金流，調整後與未調整後每股盈餘皆為0.02美元。在支付1,530萬美元的收購現金款項後，公司資金仍然充裕，第二季末可用現金為1,280萬美元。若將3月支付的收購款項納入考量，該金額較年末淨增加330萬美元。

During Q2, we reported net revenues of $9.4 million from 595,000 silver equivalent payable ounces sold, which resulted in mine operating income of [$9 million] for the quarter, including noncash depreciation and depletion. On a cash basis, mine operating income was $4.4 million. The company was impacted by provisional pricing adjustments by $1.8 million during Q2 with provisional net revenues coming in at $11.2 million before these adjustments.

第二季我們申報淨營收940萬美元，來自銷售595,000盎司白銀當量應付盎司（silver equivalent payable ounces），使本季礦山營運收入為[900萬美元]，其中包含非現金折舊與耗竭費用。以現金基礎計算，礦山營運收入為440萬美元。公司在第二季受到暫定價格調整影響180萬美元；在調整前，暫定淨營收為1,120萬美元。

Avino reported net income after taxes of $2.3 million or $0.02 per share for the second quarter of 2022. As you can see, Q2 continued to build off the strong preceding quarters for Avino as we continue to demonstrate consistent operating margins well above 40%. This was despite significant inflationary pressures seen around the world, and I want to commend our team in Mexico for their diligent work in keeping our cost structure intact.

Avino在2022年第二季稅後淨利為230萬美元，或每股0.02美元。如各位所見，第二季延續前幾季的強勁表現，我們持續展現高於40%的穩定營運毛利率。這是在全球顯著通膨壓力下達成的成果，我要讚揚我們墨西哥團隊在維持成本結構方面的努力與嚴謹執行。

Earnings before interest, taxes, depreciation and amortization, EBITDA, was $4.1 million for the quarter, and adjusted earnings was $2.5 million or $0.02 per share. Cash flow from operations before changes in working capital was $2.5 million or $0.02 per share on a diluted basis. Capital expenditures for Q2 were $3.4 million on a cash basis with total additions being approximately $5 million as the company continues to work with our partners to finance equipment at below or at market rates.

本季息稅折舊攤銷前盈餘（EBITDA）為410萬美元，調整後盈餘為250萬美元或每股0.02美元。營運資金變動前之營運現金流為250萬美元，稀釋後每股0.02美元。第二季資本支出以現金基礎計為340萬美元；總新增約500萬美元，因公司持續與合作夥伴合作，以低於或接近市場利率的條件為設備融資。

Capital expenditures for this quarter related to the addition of the new underground mining scoop to assist with the ramp-up of mining operations as well as a dozer for the new dry-stack tailings facility and exploration expenditures at La Potosina and below the current mine operations at Avino. Also included was additional drilling in our oxide tailings resource as we completed the additional 17 step-out holes to increase the footprint of the resource. This project continues to move forward towards the prefeasibility level in the near term.

本季資本支出主要用於新增一台地下採礦裝載機（scoop），以協助採礦作業擴產，以及為新的乾式堆疊尾礦設施添購一台推土機（dozer），並投入La Potosina及Avino現行礦區作業下方的探勘支出。另亦包含在氧化尾礦資源上進行額外鑽探；我們完成另外17個外延鑽孔（step-out holes），以擴大資源範圍。該專案持續推進，短期內將朝預可行性（prefeasibility）階段邁進。

Rounding out and most importantly, Avino generated net income for the third consecutive quarter and $1.2 million in free cash flow net of CapEx and working capital movements, which brings our total up to $6.2 million in free cash flow generated in the 3 quarters following the restart of operations in Q3 2022. Cash costs for silver equivalent payable ounce for the second quarter were $8.39 and on an all-in sustaining cash cost basis, they were $15.95. Lower cash and all-in sustaining cash costs were a product of higher production grades and recoveries than in previous quarters as well as strong cost management by the operational team.

最後也是最重要的是，Avino連續第三季產生淨利，且在扣除資本支出（CapEx）與營運資金變動後，創造120萬美元自由現金流，使我們在自2022年第三季重啟營運後的三個季度累計自由現金流達620萬美元。第二季每盎司白銀當量應付盎司的現金成本為8.39美元；以全維持性現金成本（all-in sustaining cash cost）計為15.95美元。較低的現金成本與全維持性現金成本，主要來自較前幾季更高的產出品位與回收率，以及營運團隊強而有力的成本管理。

With Q2 marking the third quarter of uninterrupted mining operations since 2019, I am pleased to report that the financial outlook for Avino remains very positive. With the strong operating margins and cash on hand of just under $13 million, following the completed upfront consideration payments to core mining, our focus is fully on our Mexican assets and adding value for our shareholders and stakeholders throughout the rest of 2022 and in the future years.

第二季標誌著自2019年以來連續不中斷採礦作業的第三個季度，我很高興報告Avino的財務展望仍然非常正面。在完成對Core Mining的前期對價付款後，憑藉強勁的營運毛利率與接近1,300萬美元的手頭現金，我們的重點將完全放在墨西哥資產上，並在2022年剩餘期間及未來年度持續為股東與利害關係人創造價值。

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

接下來我把時間交還給David，討論Avino今年剩餘時間的規劃。

Thank you, Nathan. To recap, we had a busy second quarter with strong operational performance. The quarter was highlighted by encouraging drill results from the Oxide Tailings project and the ET area of the Avino Mine, ongoing optimization from underground processes, continued construction of the dry-stack tailings and training programs at site.

謝謝你，Nathan。總結來說，我們第二季相當忙碌，營運表現強勁。本季亮點包括：氧化尾礦專案與Avino礦區ET區域令人鼓舞的鑽探結果、地下流程持續優化、乾式堆疊尾礦設施持續建置，以及現場訓練計畫。

Activities at the mine site during the third quarter will include: continued production ramp-up at the Avino mine with mine development work on ET to increase throughput; dry-stack tailings facility nearing completion with start-up around the corner; we currently have drills turning at Avino ET below Level 17 and at La Potosina; moving forward with a comprehensive metallurgical test work program on the Oxide Tailings project to move it to the development stage; internal mine plans focused on Gloria and Abundancia veins at La Preciosa.

第三季礦區現場活動將包括：Avino礦持續擴產，並在ET進行礦山開發工作以提高處理量；乾式堆疊尾礦設施接近完工，啟動在即；目前我們在Avino ET第17水平以下以及La Potosina均有鑽機運轉；推進氧化尾礦專案的全面冶金試驗計畫，以將其推向開發階段；內部礦山計畫聚焦於La Preciosa的Gloria與Abundancia礦脈。

Production for the full year is on track between 2.2 million and 2.4 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. We are well into the third quarter and excited about all our ongoing projects as well as we continue to advance our growth plans.

全年產量目標維持在220萬至240萬盎司白銀當量的軌道上。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山開發。我們已進入第三季相當一段時間，對所有進行中的專案感到振奮，也將持續推進我們的成長計畫。

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

接下來我們將進入問答環節。接線生？

(Operator Instructions) The first question comes from Jake Sekelsky with Alliance Global Partners.

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

So it seems like the exploration potential at the Avino property is really coming to the forefront here. Can you just provide any color on follow-up drill plans, particularly at ET, on the back of the success that you had downdip in the first half?

看起來Avino資產的探勘潛力正在真正浮現。你能否就後續鑽探計畫提供一些說明，特別是在ET方面，延續你們上半年在下傾向（downdip）取得的成功？

Yes. We've got -- we moved the second drill over there because we have got 3 drills turning on surface. It's never been drilled at depth. So this is all brand new, and this is very exciting for us. Never been drilled in over 50 years. So very -- it's open at depth. So we're very, very excited about what the future holds for the company. And it looks like we're following it down and it's pretty obvious. And look how big it is up near the surface and as it goes down. So expect to see some more results in the near future.

是的。我們已經——我們把第二台鑽機移到那邊，因為我們在地表有 3 台鑽機在運轉。那裡從未在深部鑽探過。所以這一切都是全新的，這讓我們非常興奮。超過 50 年都沒有鑽探過。所以非常——它在深部仍是開放的。因此，我們對公司未來的發展非常、非常興奮。而且看起來我們正沿著它往下追蹤，這相當明顯。再看看它在接近地表時有多大，以及往下延伸時的變化。所以預期在不久的將來會看到更多結果。

Got it. Okay. Looking forward to that. And then just on La Preciosa. Obviously, you're working through integrating the asset now. I mean when do you think you'll be in a position to announce some formal plans going forward there? Is that a second half-type event? Do you think we'll see something on that in early 2023?

了解。好的。期待看到。接著談一下 La Preciosa。顯然你們現在正在整合這項資產。我的意思是，你們認為何時會有條件對外宣布一些正式的後續計畫？會是在下半年那種事件嗎？你覺得我們會在 2023 年初看到相關內容嗎？

No. No, we're working on it. We're hoping to be able to present at the Denver Gold Forum coming up in September, if it all comes together. But it's a 5-year plan, and it looks very, very good. We're excited to roll that out.

不。不，我們正在推進。我們希望如果一切都能到位，能在 9 月即將舉行的 Denver Gold Forum 上做簡報。但這是一個 5 年計畫，而且看起來非常、非常好。我們很期待把它推出。

Got it. Okay. That's all for me. Congrats again on a strong quarter. It was good to see costs lower in a tough inflationary environment.

了解。好的。我這邊就到這裡。再次恭喜本季表現強勁。在艱難的通膨環境下看到成本下降，令人欣慰。

Thank you.

謝謝。

Thanks, Jake.

謝謝你，Jake。

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

下一個問題來自 H.C. Wainwright 的 Heiko Ihle。

Let's talk about the advancement of the Oxide Tailings project. I mean you've obviously drilled a lot there, 127 holes, comprehensive metallurgical test work, et cetera, et cetera. You're saying that to advance this soon, can you maybe provide a little bit of color on your total spend this year? I don't know if there's an intelligent way to break it out. And also maybe that might be a Nate question, I don't know, an idea of the spend for the remainder of the year?

我們來談談 Oxide Tailings 專案的推進。我是說，你們顯然在那裡鑽了很多孔，127 個孔，做了全面的冶金測試工作等等等等。你們說要很快推進這個專案，能否提供一些今年總支出的細節？我不知道是否有合理的方式可以拆分。以及也許——這可能是 Nate 的問題，我不確定——對於今年剩餘時間的支出有沒有概念？

Yes. I'll take this one. So you're talking specifically the spend on the Oxide Tailings project or on all...

是的。我來回答這題。所以你是特別在問 Oxide Tailings 專案的支出，還是全部的……

Correct. No, oxide tailings.

對。不是，是氧化尾礦。

Okay. Fairly minimal. The drilling is not very expensive because it's just -- we're just only drilling down a few meters, and it's all on the surface. But I think for the year, we really probably spent about $0.5 million on it. And that's probably -- that's actually going back to last year as well, too, on the whole.

好的。相當少。鑽探不太昂貴，因為只是——我們只鑽下去幾公尺，而且都在地表。但我想今年我們大概花了約 50 萬美元在這上面。而且這個數字——其實也包含了去年到現在整體的投入。

And then moving forward, we don't have any more drilling to do. So it's a metallurgy program and then a number of studies. And eventually, the plan is a PFS next year. So for the rest of the year, you're talking, again, still $0.5 million in total. And then next year, obviously, the cost of PFS is still being finalized right now. But that's about it.

接下來我們不需要再鑽探了。所以會是冶金計畫以及一些研究。最終的計畫是明年做 PFS（初步可行性研究）。所以今年剩餘時間，你談的同樣大概總共還是 50 萬美元。然後明年，當然，PFS 的成本目前仍在定案中。但大概就是這樣。

Fair enough. And then I keep reading on how ET -- I mean you're obviously focusing on depth. Great. This might be a dumb question. But how deep can you realistically and logistically take the site? I mean at what point in time does the decline at site become a bit of a bottleneck? I mean, David, you and I went down there a couple of months ago, and it took a while to get down, to get up. Any idea or how deep realistically you can go?

可以。然後我一直在看關於 ET——我是說你們顯然把重點放在深部，很好。這可能是個蠢問題。但就現實與作業物流而言，你們能把這個礦區推進到多深？我的意思是，到了什麼時候，現場的斜坡道（decline）會變成一個瓶頸？我是說，David，你和我幾個月前下去過，花了不少時間下去、上來。你有沒有概念，實際上你們能下到多深？

That would probably be a Carlos question. But the decline is actually improving now that we've linked it up and we are developing one-way traffic. We're smoothing it out and maintaining -- trying to keep it dry. So then it will be much quicker to get down there. But Carlos, do you have any thoughts on how deep the ramp could go? Are you there, Carlos?

這可能要問 Carlos。不過現在斜坡道其實正在改善，因為我們已經把它連通起來，並且在開發單向通行。我們在把它整平並維護——盡量保持乾燥。這樣下去會快很多。但 Carlos，你對坡道能延伸到多深有什麼想法嗎？你在嗎，Carlos？

Yes, David. Of course. Yes, at the moment, the drilling that we have is about 300 meters below Level 17. But in this case, proving all this mineralization, we are planning to do a kind of a different mining method or just sink a shaft or something different because it will be a long, long way from 300 meters to Level 17 and then to surface. So we are -- at the moment, we haven't a final plan for that, but we are planning to put a shaft to mine this future ore.

是的，David。當然。是的，目前我們的鑽探大約在 17 水平（Level 17）以下 300 公尺。但在這種情況下，要證實所有這些礦化，我們計畫採用某種不同的採礦方法，或是下沉一座豎井（shaft）或其他不同方式，因為從 300 公尺到 17 水平再到地表會是一段非常、非常長的距離。所以我們——目前還沒有最終方案，但我們計畫設置一座豎井來開採未來的礦石。

Yes. I can elaborate on that. So we have a service shaft right now to Level 9. So we have considered putting in more raises and shifting services to those raises and possibly expand the current shaft. And then maybe we could consider hoisting from Level 9 or crushing down below there and hoisting from there. And this is all good news because that would mean we found a lot more ore to justify that.

是的。我可以補充一下。我們目前有一座服務豎井到 9 水平（Level 9）。所以我們已考慮再打更多的天井（raises），把各項服務轉移到那些天井上，並且可能擴建現有豎井。然後也許我們可以考慮從 9 水平提升（hoisting），或是在更深處破碎後再從那裡提升。這些都是好消息，因為那代表我們發現了更多礦石，足以支持這樣的投資。

(Operator Instructions) The next question comes from Joseph Reagor with ROTH Capital Partners.

（操作員指示）下一個問題來自 ROTH Capital Partners 的 Joseph Reagor。

David and team, congrats on the strong quarter and the ESG accomplishments.

David 和團隊，恭喜本季表現強勁，也恭喜在 ESG 方面的成果。

Thank you.

謝謝。

Thank you.

謝謝。

So the hot topic this quarter has been inflationary pressures on cost. It seems like you guys mitigated it pretty well. But can you guys quantify what the impact of inflation has been this year versus next? And I realize that's a tougher question given the mine was shut down most of last year.

所以本季的熱門話題是成本的通膨壓力。看起來你們緩解得相當不錯。但你們能否量化一下，今年相較於明年，通膨的影響有多大？我也知道這是個比較難的問題，因為礦山去年大部分時間都停產。

Yes. Sure. Joe, it's obviously a very pertinent question in the industry right now. I think we've seen some inflationary pressures across the board, supplies and consumables. In Mexico, diesel and things like that have been mitigated a little bit. But yes, obviously, there's been an increase.

是的。當然。Joe，這顯然是目前產業非常切題的問題。我想我們在各方面都看到一些通膨壓力，包括供應品與耗材。在墨西哥，柴油之類的項目有稍微被緩解一些。但是的，顯然是有增加。

As you mentioned, it's hard to compare where we were a year ago right as of today. We were just starting back up operations. But I think there's been an increase overall. I can't give you an exact percentage, but we think from what we're seeing, it's not 50%, it's not 40%. It's still close down to the 10% range. And I think we've done a pretty good job at keeping it either at 10% or below. And obviously, we had some great help throughout Q2.

如你所提，確實很難拿我們一年前的狀況與今天直接比較。當時我們才剛開始恢復營運。但我認為整體確實有上升。我無法給你一個精確百分比，但就我們所見，並不是 50%，也不是 40%。大致仍接近 10% 的區間。我想我們在把它控制在 10% 或以下方面做得相當不錯。而且很明顯，第二季我們也得到了一些很好的助力。

And we saw this coming. So we loaded up on inventory. So hopefully, all that equipment lasts until inflation goes back down. But on consumables, yes, we're seeing the inflation creeping in as we go through our stockpile of consumables.

而且我們早就預見到這點。所以我們增加了庫存。希望那些設備能撐到通膨回落。但在耗材方面，是的，隨著我們逐步消耗耗材庫存，我們看到通膨正在慢慢滲入。

Okay. Fair enough. And then it looks like you guys had about almost $2 million build in inventory during the quarter, and I think that held back the revenue a touch. Is that intentional? And some of your peer group has been holding back sales towards the end of Q2, in particular, because of the drop in precious metals prices. I was just wondering if that's a conscious decision or if it's just simply timing?

好的。可以理解。然後看起來你們本季庫存增加了將近 200 萬美元，我想這讓營收稍微被壓抑了一點。這是刻意的嗎？你們的一些同業在第二季末，特別是因為貴金屬價格下跌，而延後銷售。我只是想知道這是有意識的決策，還是單純時間點的問題？

It was probably a bit of both, but not for fulsomely conscious decision. I think it was just the timing of kind of the production. And the strong ramp-up we saw in June really accelerated how much concentrate we produced for the month and how many ounces we produced. Obviously...

可能兩者都有，但不是完全刻意的決策。我想主要是生產節奏的時間點問題。以及我們在 6 月看到的強勁爬坡，確實加速了當月我們生產的精礦量，以及我們生產的盎司數。顯然……

The grade helped produce more concentrate.

品位也有助於產出更多精礦。

Exactly. We had good grades across the board, especially with copper. So we've subsequently sold that in July at slightly better prices than we saw at the end of June. We saw obviously some provisional pricing adjustments in the negative for us. We see that coming back the other way a little bit. So it was not fully a conscious decision, but I guess we're glad a little bit that we'll recover a bit of that in Q3.

沒錯。我們整體品位都不錯，尤其是銅。因此我們在 7 月已經把那些賣掉了，價格也比 6 月底看到的稍微好一些。我們也看到一些暫定價格（provisional pricing）調整對我們不利（往下調）。我們預期它會稍微往另一個方向回來一些。所以這不是完全有意識的決策，但我想我們也有點慶幸，因為第三季會回收其中一部分。

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。

Thank you, operator, and thank you to everyone for their time today. As I said earlier, we have many positives to talk about in Q2. We look forward to the second half of the year. Growth is paramount for our success. And Avino has been laying out the groundwork for future growth. We're developing a 5-year strategy, which we're going to disclose to everyone coming up in the next quarter. We've been given priority to the most important projects, initiatives to achieve that growth. Unlocking the value of Avino property and region has been a priority, and we are looking forward to the next steps of our growth strategy, in turn, maximizing value for shareholders and stakeholders.

謝謝操作員，也謝謝各位今天撥冗參與。如我先前所說，我們在第二季有許多正面進展可以分享。我們期待今年下半年。成長是我們成功的關鍵。Avino 一直在為未來成長奠定基礎。我們正在制定一個 5 年策略，並將在下一季向大家揭露。我們已優先聚焦於最重要的專案與倡議，以實現成長。釋放 Avino 礦權與區域的價值一直是優先事項，我們也期待成長策略的下一步，進而為股東與利害關係人創造最大價值。

Have a great day. Thank you.

祝各位有美好的一天。謝謝。

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，祝您有愉快的一天。