Avino Silver & Gold Mines Ltd (ASM) 2022 Q3 法說會逐字稿

Thank you for

感謝您

Welcome to the Avino Silver & Gold Mines Third Quarter 2022 Financial Results Conference Call. (Operator Instructions)

歡迎參加 Avino Silver & Gold Mines 2022 年第三季財務業績電話會議。（接線員指示）

And the conference is being recorded. (Operator Instructions)

本次會議將被錄音。（接線員指示）

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

現在我想把會議交給投資人關係經理 Jennifer North。請開始。

Thank you, operator. Good morning, everyone, and welcome to the Avino Silver & Gold Mines Limited Q3 2022 financial results conference call and webcast. To join this webcast and conference call, there is a link in our news release dated November 9, which can be found on our website under News 2022. As well, you may find a link under the Investors tab, and 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 Limited 2022 年第三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 11 月 9 日發布的新聞稿中提供了連結，可在我們網站的 News 2022 欄目下找到。此外，您也可以在 Investors 分頁下找到連結，點選 Events，即可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 Q3 presentation associated with this call are 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.

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，公司無意亦不承擔更新該等前瞻性陳述或資訊的任何義務。更多資訊請參閱與本次電話會議相關之第三季簡報中的詳細警示說明，以及我們昨日日期的新聞稿。我也提醒各位，本次電話會議將被錄音，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，將可在網站上取得。謝謝。

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

現在我把電話會議交給 Avino 總裁暨執行長 David Wolfin。David？

Thanks, Jen. Good morning, everyone, and welcome to Avino's Q3 2022 Financial Results Conference Call and Webcast. Thank you for joining us. Before we begin, please note that the full financial statements and MD&A are now available on our website. On today's call, we will cover the highlights of our third quarter 2022 financial and operating performance, and our plans for the fourth 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 年第三季財務業績電話會議與網路直播。感謝各位加入。在開始之前，請注意完整財務報表與 MD&A 現已可在我們網站上查閱。今天的電話會議將涵蓋 2022 年第三季財務與營運表現重點，以及我們對第四季的規劃，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。

In the third quarter, we delivered our strongest quarterly production in recent history, producing 778,000 ounces of silver equivalent, which is an increase of 20% over Q 2 (technical difficulty) in addition, the mine optimization work continued in Q3 for the underground mining processes. They are aimed at managing, tracking and planning underground movements, which helps to increase efficiencies across communication and planning.

在第三季，我們交出近年來最強勁的單季產量，生產白銀當量 778,000 盎司，較第二季增加 20%（技術困難）。此外，第三季持續進行地下採礦流程的礦山最佳化工作，目標在於管理、追蹤與規劃地下移動，進而提升溝通與規劃等各面向的效率。

During the quarter, we also compiled further drill results from Phase 2 of the 2021, 2022 exploration program. And at the end of Q3, a total of 11,253 meters have been drilled. Subsequent to the end of Q3, we announced drilling from the Avino Mine [Elena Tolosa] area, also referred to as ET, below our deepest level 17 mining area. I expand on that in a bit later in the presentation. The installation and commissioning of the dry stack tailings project has been completed, and we are currently transitioning to full-time operation of the filter presses with site personnel fine-tuning the process.

本季期間，我們也彙整了 2021、2022 年勘探計畫第二階段的進一步鑽探結果。至第三季末，累計鑽探總長度達 11,253 公尺。第三季結束後，我們公布了 Avino 礦區 [Elena Tolosa] 區域（亦稱 ET）在最深的第 17 水平採礦區以下的鑽探結果。我稍後會在簡報中進一步說明。乾式堆置尾礦（dry stack tailings）專案的安裝與試車已完成，目前正轉換為濾壓機的全時運轉，現場人員正在微調流程。

I was at the mine site in late September, and I was very pleased to see that our dry frac tailing project that is using best available environmental technology is coming to fruition. The investment that we have made in this facility demonstrates our commitment to the safety of our people, local communities and the environment. At La Preciosa, we have been focused on community engagement in the nearby towns adjacent to the property as well as studies on how to optimally integrate our mine plan to leverage the existing facilities and infrastructure.

我在 9 月下旬到礦區現場，看到我們採用最佳可用環境技術的乾式碎屑尾礦（dry frac tailing）專案逐步落實，感到非常欣慰。我們對此設施的投資，展現了我們對員工安全、在地社區與環境的承諾。在 La Preciosa，我們專注於與鄰近城鎮社區的互動，同時也進行研究，探討如何最佳化整合我們的礦山計畫，以善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.

Avino 完全致力於推動此專案，作為公司有機成長策略的一部分。

The acquisition was a major milestone for Avino and factored prominently into Avino's 5-year growth strategy, and sets us on the path of achieving our goals of intermediate producer status. The property hosts one of the largest undeveloped primary silver resources in Mexico, and is located adjacent for existing operations at the Avino Mine. Our financial performance in the third quarter was slightly lower than expected with marginally lower revenue compared to the second quarter. Our strong operational achievement helped to generate revenue of $9.1 million, $2.1 million in mine operating income. Nathan Harte, Avino's CFO, will expand on our financial results later in the call. The third quarter production marks the fourth full quarter following the restart of operations in August 2021. And as I mentioned previously, record quarterly production of 778,000 ounces of silver equivalent. The production came from the Avino Mine only, and is compared to Q2 2022 as it's the most recent quarter of consolidated production.

此次收購是 Avino 的重大里程碑，並在 Avino 的五年成長策略中占有重要地位，使我們走上達成「中型生產商」目標的道路。該資產擁有墨西哥最大規模之一、尚未開發的原生白銀資源，且位於 Avino 礦現有營運的鄰近地帶。第三季的財務表現略低於預期，營收較第二季小幅下降。我們強勁的營運成果帶來 910 萬美元營收，以及 210 萬美元的礦山營運收益。Avino 財務長 Nathan Harte 將在稍後進一步說明財務結果。第三季產量是自 2021 年 8 月重啟營運後的第四個完整季度。如我先前所述，本季創下單季產量新高，白銀當量達 778,000 盎司。本季產量僅來自 Avino 礦，並與 2022 年第二季相比，因其為最近一期的合併產量季度。

The Q3 production highlights are as follows: silver equivalent increased 20% to 778,000 ounces; silver production increased by 27% to 285,400 ounces; copper production increased by 28% to 2.1 million pounds; gold production decreased by 11% to 1, 201 ounces; mill throughput increased by 37% to 162,100 tonnes. The recoveries for silver increased by 1% and copper decreased by 3% and gold recovery decreased by 5%.

第三季產量重點如下：白銀當量增加 20% 至 778,000 盎司；白銀產量增加 27% 至 285,400 盎司；銅產量增加 28% 至 210 萬磅；黃金產量下降 11% 至 1,201 盎司；選礦廠處理量增加 37% 至 162,100 公噸。回收率方面，白銀回收率增加 1%，銅回收率下降 3%，黃金回收率下降 5%。

On a ground per ton basis, the feed grades for silver decreased by 9%. For gold, the decrease was 33%, and for copper, the feed grade decreased by 4%.

以每噸品位計，入料品位方面白銀下降 9%；黃金下降 33%；銅入料品位下降 4%。

During the third quarter, 3,559 meters were drilled exclusively at the Avino ET area below Level 17. For 2022, the company budgeted 15,000 meters, which was focused on the Avino ET area of below Level 17 and the oxide tailings project and La Potosina. And at the end of Q3 2022, a total of 11,253 meters have been drilled. Subsequent to the end of Q3. In October, we announced the results from Phase 2 of the 2021-'22 exploration program. These results represent 6 holes totaling 3,269 meters drilled below the current Level 17 mining area of the ET area of the Avino Mine. Selected intercepts include hole ET [2208], [0.95] silver equivalent grams per tonne over 43.8 meters, including 673 silver equivalent grams per tonne over 0.66 meters. Hole ET-2209, 150 silver equivalent grams per tonne over 26.77 meters, including 1,037 silver equivalent grams over 0.46 meters and 1,800 silver equivalent grams per tonne over 0.28 meters.

第三季期間，僅在 Avino ET 區第 17 水平以下鑽探 3,559 公尺。2022 年公司編列 15,000 公尺鑽探預算，重點聚焦於 Avino ET 區第 17 水平以下、氧化物尾礦專案以及 La Potosina。至 2022 年第三季末，累計鑽探總長度達 11,253 公尺。第三季結束後，我們於 10 月公布 2021-'22 勘探計畫第二階段的結果。該等結果包含 6 個鑽孔，合計 3,269 公尺，鑽探位置位於 Avino 礦 ET 區現行第 17 水平採礦區以下。精選截距包括：鑽孔 ET [2208]，白銀當量每噸 [0.95] 克、厚度 43.8 公尺，其中包含白銀當量每噸 673 克、厚度 0.66 公尺。鑽孔 ET-2209，白銀當量每噸 150 克、厚度 26.77 公尺，其中包含白銀當量 1,037 克、厚度 0.46 公尺，以及白銀當量每噸 1,800 克、厚度 0.28 公尺。

The recent deeper drilling confirms that the mineralization persists down dip significantly past lowest developed mining level, and may prove to add significant mineral resources subject to the completion of an updated mineral resource estimate, currently scheduled for Q1 2023. During the second quarter, we also released drilled results from the Avino ET area that intercepted high-grade silver and copper in multiple holes. As this area of focus, we encourage you to view the interactive 3D model on our website, which is linked to the June press release, and shows the location of the drill results and proximity to the current mining area. Please also take a virtual tour of the mine site, which you can find on the home page of the website, for an informative and in-depth look at operations.

近期更深部的鑽探確認，礦化沿傾向向下延伸，顯著超出目前已開發的最低採礦水平；在完成更新的礦產資源量估算（目前預計於 2023 年第一季完成）後，可能證實可新增可觀的礦產資源。在第二季，我們亦公布了 Avino ET 區的鑽探結果，多個鑽孔截獲高品位銀與銅。由於該區為重點關注區域，我們鼓勵您瀏覽我們網站上連結至 6 月新聞稿的互動式 3D 模型，該模型展示鑽探結果的位置及其與現有採礦區的相對距離。也請您參加礦區的虛擬導覽（可於網站首頁找到），以獲得對營運更具資訊性且深入的了解。

The full drill results, including images for the 2021 and 2022 drop programs are available on the website.

完整的鑽探結果（包括 2021 年與 2022 年下探計畫的影像）可於網站上查閱。

During Q3, we continued moving forward on the capital projects that we outlined for the year. As previously mentioned, the dry stack tailings facility, installation and commissioning has been completed. The project is expected to be fully operational by the end of the year, and leads the company towards achieving the guidelines with the global industry standards on tailings management along with community stewardship. Our ESG initiatives continue to move forward as we incorporate principles of sustainability and social responsibility. Following the restart of operations, it's been the company's directive to train and hire local workforce. By providing jobs to those in the surrounding communities, we aim to foster generations of enthusiastic and dedicated ambassadors of Avino.

在第三季，我們持續推進年初所概述的資本專案。如先前所提，乾式堆疊尾礦設施的安裝與試運轉已完成。該專案預期於年底前全面投入運作，並引領公司朝向符合全球產業尾礦管理標準的指引，同時兼顧社區責任。我們的 ESG 倡議亦持續推進，將永續性與社會責任原則納入營運。隨著營運重啟，公司已指示訓練並聘用在地勞動力。透過為周邊社區居民提供工作機會，我們希望培養一代又一代熱忱且投入的 Avino 代言人。

After receiving the ESR award in August for the first time, which is granted by the Mexican Center of philanthropy and the alliance for corporate social responsibility, we continue to provide support to the local communities where it is needed. As well, something that I believe strongly [about] is to provide information to the school age children, teach them about the mine, what we do there and how minerals are important to our daily lives in hopes to sparking their interest in some day working at the mine.

在 8 月首次獲得 ESR 獎項（由墨西哥慈善中心及企業社會責任聯盟頒發）後，我們持續在需要之處為在地社區提供支持。此外，我一直深信的一點是：向學齡兒童提供資訊，教導他們了解礦山、我們在那裡做什麼，以及礦物如何對日常生活至關重要，希望能激發他們未來某天到礦山工作的興趣。

The ESG initiatives completed during the third quarter were water irrigation work at Panuco de Coronado, conducting mining talks in the schools in Panuco, also San Jose de Avino and Grow, hosted the first parent-child visit to work event for the employees and families. During the visit, the workers were able to share their knowledge with their children by showing them the areas in which they carry out their work, giving them an overview of their daily activities and participating in safety awareness talks, reforestation campaign of native species of the region or 10,000 plants, including Mesquite, (inaudible) and Magway were planted, rock removal from local roads after heavy rainfall, Creek restoration work at (inaudible), Rivera, community provided school supplies to students in the surrounding communities, construction rubble removal from Granato Elementary School, cleaning and maintaining the landfills at Zaragosa, roadside gutter maintenance and cleaning, Avino rescue team training.

第三季完成的 ESG 倡議包括：在 Panuco de Coronado 進行灌溉用水工程；在 Panuco 的學校（以及 San Jose de Avino 與 Grow）舉辦採礦講座；為員工及其家屬首次舉辦親子到職場參訪活動。參訪期間，員工透過帶孩子參觀其工作區域分享專業知識，讓孩子了解其日常活動概況，並參與安全意識宣導；推動在地原生樹種的造林活動，共種植 10,000 株植物，包括 Mesquite、（聽不清）與 Magway；豪雨後協助清除地方道路落石；在（聽不清）進行溪流復育工程；Rivera 社區為周邊社區學生提供學用品；清除 Granato 小學的建築廢棄物；清潔並維護 Zaragosa 的垃圾掩埋場；道路側溝維護與清理；Avino 救援隊訓練。

During the quarter, we continued to see volatility in the markets with rising interest rates, inflation, and a strong U.S. dollar, which put pressure on precious metals. The silver price was in the range of $17.77 an ounce near the beginning of September and a high of $20.54 an ounce on August 11. During the second quarter call, I mentioned that we were living in an interesting time, and this should probably break for continued volatility and higher interest rates. I have to repeat that now, on the third quarter call, interest rates have just risen again for the fourth time in a row. Even in times of economic pressure, the world still needs a steady supply of precious metals. There have been a lot of focus lately on copper being one of the most important metals that the world is running low on. And we all know that silver, copper, gold and a variety of other precious base metals will be needed in the push for green energy. So 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 silver -- physical silver.

本季我們持續看到市場波動，升息、通膨以及強勢美元對貴金屬造成壓力。銀價在 9 月初約為每盎司 17.77 美元，並於 8 月 11 日達到每盎司 20.54 美元的高點。在第二季電話會議中，我提到我們正處於一個有趣的時期，而這可能意味著波動持續且利率走高。我現在在第三季電話會議上必須再次重申：利率已連續第四次上調。即使在經濟壓力之下，世界仍需要穩定的貴金屬供應。近期市場也高度關注銅，因其是全球供應日益吃緊、最重要的金屬之一。而我們都知道，在推動綠色能源的過程中，銀、銅、金以及各類其他貴金屬與基本金屬都將被需要。因此，我們仍相信白銀前景正面，且自 2022 年起白銀需求應可見到穩健成長，成長動能將來自創紀錄的白銀工業製造用量、綠色科技的增加，以及對白銀（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 Q3 2022. Nathan?

接下來我將請 Avino 的財務長 Nathan Harte 報告 2022 年第三季的財務結果。Nathan？

Thank you, David. It's my pleasure to be on the call, and I would like to welcome everyone who has joined us today and is viewing our presentation. Avino continued to deliver meaningful financial and operating results in the third quarter. The Avino Mine produced a mine operating margin of 29% on a cash basis and the company generated $1.6 million in operating cash flows before working capital changes as well as producing positive EBITDA and adjusted earnings.

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。Avino 在第三季持續交出具意義的財務與營運成果。Avino 礦山以現金基礎計算的礦山營運毛利率為 29%，公司在扣除營運資金變動前的營運現金流為 160 萬美元，並同時實現正的 EBITDA 與調整後盈餘。

Following the acquisition cash payment of $15. 3 million to core mining for La Preciosa, the company remains well funded with $10.9 million in cash available at the end of the third quarter, representing a net increase of $1.4 million from the end of the year after factoring in the acquisition payment made in March.

在就 La Preciosa 向 Core Mining 支付 1,530 萬美元的收購現金款項後，公司資金仍然充裕，第三季末可用現金為 1,090 萬美元；在納入 3 月支付的收購款項後，較年末淨增加 140 萬美元。

Coming to Slide 14, I will walk you through some key financial results for the third quarter as well as some year-to-date figures. During Q3, we reported net revenues of $9.1 million from 603, 000 silver equivalent payable of ounces sold, which resulted in mine operating income of $2.1 million for the quarter, inclusive of noncash depreciation and depletion. On a cash basis, mine operating income came in at $2.6 million for the third quarter. The company was impacted by provisional pricing adjustments of $0.3 million during Q3, with provisional net revenues coming in at $9.4 million before these adjustments.

來到第 14 張投影片，我將帶您回顧第三季的一些關鍵財務結果，以及部分年初至今的數據。第三季我們申報的淨營收為 910 萬美元，來自售出 603,000 盎司可支付的銀當量，因而本季礦山營運利益為 210 萬美元（包含非現金的折舊與耗竭）。以現金基礎計算，第三季礦山營運利益為 260 萬美元。公司在第三季受到 30 萬美元的暫定定價調整影響；在調整前，暫定淨營收為 940 萬美元。

Avino reported a net loss after taxes of $1.1 million or $0.01 per share for the third quarter of 2022. Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $0.2 million for the quarter, and adjusted earnings were $0.4 million or $0.00 per share. EBITDA adjusted and unadjusted earnings were impacted negatively by a noncash loss on the company's investment in Talisker Resources of $1.2 million in the third quarter, which saw the company's investment decrease in share price. Cash flow from operations before changes in working capital was $1.6 million or $0.01 per share. Capital expenditures for this quarter totaled $2.7 million, with the year-to-date totaling $6.1 million, both on a cash basis.

Avino 於 2022 年第三季稅後淨損為 110 萬美元，或每股 0.01 美元。息稅折舊攤銷前盈餘（EBITDA）本季為 20 萬美元，調整後盈餘為 40 萬美元，或每股 0.00 美元。EBITDA、調整後與未調整後盈餘均受到第三季公司對 Talisker Resources 投資的 120 萬美元非現金損失之負面影響，該損失反映投資標的股價下跌。營運現金流（扣除營運資金變動前）為 160 萬美元，或每股 0.01 美元。本季資本支出合計 270 萬美元；年初至今合計 610 萬美元，兩者皆以現金基礎計算。

Total additions were approximately $7 million as the company continues to work with our partners to finance equipment at below or at market rates. Capital expenditures for this quarter related primarily to mine development and improvements to increase underground haulage rates, the dry stack tailings plant and additional surface equipment. For the 9-month period, the company generated $1.8 million in net income, or $0. 02 per share, and $6.2 million or $0. 05 per share on an adjusted earnings basis, which removes certain noncash and nonrecurring items. Cash flow from operations was $0.07 per share generated, and free cash flow in the year sits at around $2.4 million to date.

新增投入合計約 700 萬美元，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。本季資本支出主要用於礦山開發與改善，以提高地下運輸（haulage）速率、乾式堆疊尾礦廠，以及額外的地表設備。就 9 個月期間而言，公司產生 180 萬美元淨利，或每股 0.02 美元；以調整後盈餘基礎（剔除特定非現金及非經常性項目）計算為 620 萬美元，或每股 0.05 美元。營運現金流為每股 0.07 美元；年初至今自由現金流約為 240 萬美元。

Here on Slide 15, you can see our cash cost for silver equivalent payable ounce for the third quarter remained close to that $10 mark, coming in at $10. 29. For the 9-month period, costs were just under the $10 mark at $9.71 per silver equivalent payable ounce. All-in sustaining cash costs for the third quarter were $17.32 and $17.59 on a year-to-date basis. The increase in costs from Q2 represents lower ounces sold on a per tonne milled basis largely due to lower gold grades and recoveries as well as an unusually high quarter for penalties. The increase in costs were offset by strong cost management by the operational team, which is evidenced in the coming slide.

在第15頁投影片上，您可以看到我們第三季每可支付銀當量盎司的現金成本仍接近10美元水準，為10.29美元。就前九個月期間而言，成本略低於10美元水準，為每可支付銀當量盎司9.71美元。第三季的全維持性現金成本（AISC）為17.32美元，年初至今基礎為17.59美元。相較第二季，成本上升主要反映每處理一噸礦石所售出的盎司數下降，這主要是由於金品位與回收率較低，以及本季罰款異常偏高所致。成本上升已由營運團隊強勁的成本管理所抵銷，這點將在下一頁投影片中得到印證。

Here on Slide 16, we can see that costs have decreased on a per tonne basis overall when it's compared to both Q2 and Q1 of 2022, both on the cash cost and all-in sustaining cash cost perspective, which demonstrates that we are achieving certain economies of scale, which should continue to lower costs as we continue to push forward towards full capacity at the mill.

在第16頁投影片上，我們可以看到以每噸計算的成本整體下降，與2022年第二季及第一季相比，無論從現金成本或全維持性現金成本的角度皆是如此，這顯示我們正在實現一定程度的規模經濟；隨著我們持續推進磨礦廠達到滿載產能，這應會繼續降低成本。

With Q3 rounding out the first full year 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 $10.9 million, following the upfront consideration payments completed to core mining, our focus is solely on our Mexican assets and adding value for our shareholders and stakeholders throughout the rest of 2022 and beyond.

隨著第三季結束自2019年以來首個不間斷採礦營運的完整年度，我很高興報告Avino的財務展望非常正面。在強勁的營運利潤率以及1,090萬美元現金在手的支持下（在完成向Core Mining支付的前期對價款後），我們的重點將完全放在墨西哥資產上，並在2022年剩餘期間及未來持續為股東與利害關係人創造價值。

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

我現在把時間交還給David，請他說明Avino在今年剩餘時間的規劃。

Thank you, Nathan. The third quarter was strong operationally, and highlighted by record production and encouraging drill results from the Avino ET area. At the mine, we focused on the optimization plan for underground processes, and continued with the training programs. We successfully completed the important capital projects of building the dry stack facility, the importance of which I highlighted earlier.

謝謝你，Nathan。第三季在營運面表現強勁，並以創紀錄的產量以及Avino ET區域令人鼓舞的鑽探結果為亮點。在礦場方面，我們專注於地下作業流程的最佳化計畫，並持續推動訓練方案。我們也成功完成了重要的資本專案——建置乾式堆置設施，其重要性我先前已強調。

Now into the fourth quarter, the following operational activities are ongoing. Production ramp-up at the Avino Mine with mine development work on ET to increase throughput. Now that dry stack facility has been completed, the transitional testing will continue with expectations that the facility will be fully operational by the end of the year. We currently have drills turning exclusively on Avino ET below Level 17. We are moving forward with the comprehensive metallurgical test program on the oxide tailings project to move it to the development stage.

進入第四季後，下列營運活動正在進行中：Avino礦場持續提升產量，並在ET進行礦山開發工作以提高處理量。乾式堆置設施既已完工，將持續進行過渡性測試，預期該設施將於年底前全面投入運作。我們目前的鑽機正專注於Avino ET第17水平以下的鑽探。我們也正推進氧化尾礦專案的全面冶金測試計畫，以將其推進至開發階段。

Internal mine plans focused on the Gloria and Albaancio veins at La Preciosa. We expect to exceed the upper end of the 2.2 million to 2.4 million ounces of silver equivalent after strong production levels in Q3. We expect to continue to generate operating cash flow in the fourth quarter, which we plan to reinvest into the Avino Mine.

內部礦山計畫聚焦於La Preciosa的Gloria與Albaancio礦脈。由於第三季產量表現強勁，我們預期銀當量產量將超過220萬至240萬盎司指引區間的上緣。我們預期第四季將持續產生營運現金流，並計畫將其再投資於Avino礦場。

Thanks to our resilient and strong cash management, we remain well positioned to manage through any near-term pressures arising from an overall economic slowdown, while staying focused on our clear path to transformational growth on our way to becoming Mexico's next intermediate producer. We are well into the fourth quarter and are excited to be on track to accomplishing our goals for the year and beyond.

憑藉我們具韌性且強健的現金管理，我們仍處於有利位置，得以因應整體經濟放緩所帶來的任何短期壓力，同時持續聚焦於清晰的轉型式成長路徑，朝成為墨西哥下一家中型生產商邁進。我們已進入第四季的中後段，並很高興能按計畫達成今年及未來的目標。

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

我們現在想把電話會議移到問答環節。接線員？

(Operator Instructions)

（接線員指示）

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

我們的第一個問題來自H.C. Wainwright的Heiko Ihle。

This is Marcus Jane calling in for Heiko. Yes. So just looking at your ET results, it seems like things are trending well to depth, although I assume this area won't see any mining activity in the near term. Given the way things are going, have you done or considered any deep holes just to sort of see what else might be found below, say, below the 400-meter level or so? I just might be interesting to see how extensive the system is a depth.

我是Marcus Jane，代替Heiko來電。是的。就你們的ET結果來看，似乎在深部的趨勢表現良好，雖然我猜這個區域短期內不會有任何採礦活動。以目前的進展來看，你們是否已經做過或考慮過一些深孔鑽探，看看在例如400公尺水平以下還可能發現什麼？我覺得看看這個系統在深部的延伸程度會很有意思。

Yes. I think we've got about 5 or 6 more holes planned for this year, and we're just going to keep drilling until we know the extent of the ore body. So we're not stopping. We're going to keep drilling and see how deep it goes.

是的。我想我們今年大概還規劃了5到6個孔，我們會持續鑽探，直到了解礦體的延伸範圍。所以我們不會停下來。我們會繼續鑽，看看它能延伸到多深。

Okay. Fair enough. And then sort of on that topic, I know you're budgeted for 15,000 meters of drilling this year, so say another 3, 500 left in Q4. Do you think we can trend line that figure going into 2023? And also on the topic of drilling, what are your current cost per meter, including assets?

好的。合理。接著同一個主題，我知道你們今年的鑽探預算是15,000公尺，所以第四季大概還剩3,500公尺左右。你認為2023年可以沿用這個數字作為趨勢線嗎？另外關於鑽探，你們目前每公尺的成本是多少（包含資產）？

Good questions. So on the first one, we're actually going down the site next week to do our capital budget for the next year, and that will determine a bit what are -- how many meters we're going to drill for exploration. So for now, it's hard to say. We'll give a bit more of an update probably at the beginning of the year.

好問題。第一個問題，我們其實下週會到現場去做明年的資本預算，這將在一定程度上決定我們——也就是勘探要鑽多少公尺。所以目前很難說。我們可能會在年初提供更多更新。

And the second part, our cost per meter is very low. We're spending about $300,000 a month right now and producing -- sorry, spending about $100,000 a month, and they're doing about 1,000 meters or 1,200 meters every month, drilling. So you can do the math there, as we're under or just around $100 per meter drilled because we own our own drills, and we have the experience in the area.

第二部分，我們每公尺成本非常低。我們目前每月花費大約30萬美元並產出——抱歉，是每月花費大約10萬美元，而他們每月鑽探大約1,000公尺或1,200公尺。所以你可以自己算一下；因為我們擁有自己的鑽機，而且在該區域具備經驗，我們每公尺鑽探成本低於或大約在100美元左右。

Our next question comes from Jake Sekelsky of Alliance Global Partners.

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

So the resource update, David, that you mentioned that's the out in Q1. Do you guys have a cutoff for that yet? I'm just curious what that is, just given the amount of drilling you have going on right now.

關於資源量更新，David，你提到會在第一季公布。你們目前已經有那個截止日（cutoff）了嗎？我只是好奇，考量你們現在正在進行的鑽探量。

Yes, it's November 15. We're going to keep drilling, but we're going to do all the information we have up to November 15. We'll go into it. .

是的，是11月15日。我們會繼續鑽探，但我們會把截至11月15日為止的所有資訊納入。我們會進行處理。.

All right. Perfect. And then just on La Preciosa. Are you able to touch on any of the plans you guys have teed up there for 2023? Or are those sort of still in the works as you're finalizing year-end?

好，太好了。接著關於La Preciosa，你們能否談談2023年在那裡已規劃好的任何計畫？還是說這些仍在進行中，因為你們正在敲定年終事項？

Well, we've got community engagements with the local [Avino] groups. We're in the latter rounds of these negotiations, and we expect to have them finalized, hopefully, by the end of the year or early in Q1. There is a large endowment of broken ore on the surface, 50, 000 tonnes that are there from when Lewisman operated the project before Arco had it. And so we -- as soon as the agreements are in place, we're planning to start trucking that to the mill. We're rehabbing Circuit 1 and Circuit 2. Circuit 1 is already operational. Circuit 2 will come online in the next 4 to 6 weeks, and we'll be ready to receive that material as soon as we can start tracking it over.

嗯，我們正在與當地[Avino]團體進行社區溝通。我們已進入這些協商的後期階段，並預期能在年底前或第一季初完成定案。地表上有大量破碎礦石的堆存，約50,000噸，這些是Lewisman在Arco接手之前營運該專案時留下的。因此我們——一旦協議到位，就計畫開始把這些物料用卡車運到磨礦廠。我們正在整修第1迴路與第2迴路。第1迴路已經投入運作。第2迴路將在接下來4到6週內上線，我們將準備好在能開始運送後立即接收該物料。

So we're excited about that. We're also going to apply for permits so we can put it in the portal, and the decline into Gloria. We've already got a mine plan, a trackless spiral decline that will go into Gloria. We'll put in above 7 levels. Level 1 could start delivering or 7 or 8 months after we break ground. So we're excited about doing all that next year.

所以我們對此感到很振奮。我們也將申請許可，這樣我們就可以把它放進入口（portal），並向下掘進至 Gloria。我們已經有一份礦山計畫，是一條無軌螺旋式斜坡道（spiral decline），將通往 Gloria。我們會在 7 個以上的水平（levels）進行佈置。第 1 水平可能在我們動工後 7 或 8 個月開始出礦交付。所以我們很期待明年把這些工作都推進。

Got it. Okay. What's the grade on that broken ore that's sitting at surface?

了解。好。那堆放在地表的破碎礦石品位是多少？

So it's just under 200 grams, but we're going to have to do an extensive sampling program again, too. That's silver, and there's a bit of gold in there, too. But obviously, it's some old material that could be oxidized. I mean you have to remember that there's no mining cost for that. So it should be fairly profitable even if the recoveries aren't as high as we see now.

大約略低於 200 克，但我們也必須再做一次大規模的取樣計畫。那是銀，裡面也有一點金。但很明顯，那是一些舊料，可能已經氧化。我的意思是，你得記住，那部分沒有採礦成本。所以即使回收率不如我們現在看到的那麼高，它也應該相當有利可圖。

Yes, and oxidized material tends to not recover as well this fresh ore in the underground. So we'll see what happens there. .

是的，氧化物料的回收率往往不如地下的新鮮礦石。所以我們看看那邊會發生什麼。.

Yes. But we believe at this point is profitable.

是的。但我們相信就目前而言是有利可圖的。

Our next question comes from Joseph Reagor of Roth Capital Partners.

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

So question on payable ounces versus produced ounces and how that impacts your revenue. It looks like year-to-date, you guys are tracking around 90% payability, but for the third quarter, it was 77. 6%. What is the kind of puts and takes there for why that fluctuates around so much? And what would be a good long-term assumption for us to use for modeling purposes?

我想問可支付盎司（payable ounces）相對於產出盎司（produced ounces）以及這如何影響你們的營收。看起來今年迄今你們大約在 90% 的可支付比例，但第三季是 77.6%。為什麼會有這麼大的波動？長期來看，對我們建模而言，用什麼假設會比較合適？

Joe, Nathan here. Between 85% and 90% is pretty safe just because it's just the way payability works on our concentrate. So we also did have a bit of an inventory build at the end of Q3 as well, which we sold in October, just the timing of certain shipments. So there's obviously a little more of a disconnect in Q3 than you would have seen in the past.

Joe，我是 Nathan。85% 到 90% 算是相當保守安全，因為這就是我們精礦可支付比例的運作方式。另外，我們在第三季末也有一些庫存增加，並在 10 月售出，主要是某些出貨時點的問題。所以第三季的落差確實比你過去看到的要大一些。

Okay. Can you quantify what that looked like as far as...

好的。你能量化一下大概是什麼樣子，就…

Yes. It's probably about 50,000 to 100,000 ounces. That's all, on a silver equivalent basis.

可以。大概是 50,000 到 100,000 盎司左右。就銀當量（silver equivalent）來看。

Okay. So a decent number. Okay. And then you guys had a decent amount of capital this year spent at Avino Mine with the dry stacks. Have you guys started the budgeting process? Or can you give us any kind of like outlook as far as sustaining versus expansion CapEx for next year at Avino?

好的。那數量不小。好。另外你們今年在 Avino 礦山的乾式堆存（dry stacks）上花了不少資本支出。你們開始做預算編列了嗎？或者能否給我們一些明年 Avino 的維持性資本支出（sustaining CapEx）與擴張性資本支出（expansion CapEx）的展望？

Yes. I mean we're -- like I mentioned earlier, we're going to start -- we started that process, but we're really digging into it next week as we go down on a site visit for the whole week, and spend some time with the team going over CapEx. We're not expecting -- obviously, we don't have any significant projects at Avino similar to the dry stack. Obviously, that was a pretty monumental one for us to set us up for the future. So there will be a little bit of sustaining capital, but obviously not that much on the expansionary capital side as well, too, until we get into the later stages of our 5-year plan.

是的。我的意思是——如我先前提到的，我們會開始——我們已經開始那個流程，但下週我們會更深入，因為我們會下去做一整週的現場訪視，並花時間和團隊一起檢視資本支出。我們不預期——很明顯，我們在 Avino 不會有像乾式堆存那樣的重大專案。那個專案對我們而言非常具里程碑意義，為未來打下基礎。所以會有一些維持性資本，但在擴張性資本方面也不會太多，至少要等到我們 5 年計畫的後期階段。

Okay. Okay. And then kind of one final thing. On La Preciosa, it sounded like -- David, was suggesting that it should be a quick turnaround from here to actually being able to begin underground development. Are there any potential items between here and there that you guys consider like kind of the biggest gating factors that might cause some delays in that?

好的。好的。最後一點。關於 La Preciosa，聽起來——David 似乎在說，從現在到實際能開始地下開發應該會很快。你們認為從現在到那時之間，有哪些可能是最大的關卡因素（gating factors），可能造成延遲？

Well, it's just the community engagement. So we're targeting end of the year Q1. Hopefully, if things go well. I mean, we're in the later rounds of negotiations. So we know it's imminent, permitting. We don't feel that's going to be too onerous because it's a satellite deposit essentially to Avino. Those would be the 2 factors. Mine planning has already been done, and we don't see any issues with the hardness of the rock or anything like that based on what we know. So we think we're going to be able to follow this plan and be able to deliver some more to the mill, fresh ore to the mill before the end of next year.

嗯，主要就是社區溝通。我們目標是年底到第一季（Q1），希望一切順利。我的意思是，我們已經進入談判的後期階段，所以我們知道這是迫在眉睫的。再來是許可。我們不覺得會太繁瑣，因為它本質上是 Avino 的衛星礦床（satellite deposit）。這就是兩個因素。礦山規劃已經完成，根據我們所知，岩石硬度或類似問題也看不出有任何疑慮。所以我們認為能依照這個計畫推進，並在明年年底前，向選礦廠（mill）提供更多新鮮礦石。

(Operator Instructions)

（接線員指示）

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。

I just had a -- most of my questions have been asked and answered, but I was going to drill in a little bit on the concentrate charges, treatment charges and penalties. Can you just discuss that a little bit? And how that is going to -- how you might expect that to evolve in the following quarters?

我只有一個——我大部分問題都已經問過也得到回答了，但我想再深入一點談精礦費用、冶煉處理費（treatment charges）和罰金（penalties）。你能稍微談談這部分嗎？以及你預期接下來幾季會如何演變？

Yes, Nathan here. So obviously, it was a bit higher in the quarter. Just we were in a zone that had a bit more penalty elements, and that does fluctuate from quarter-to-quarter. We do see that improving as we get into Q4, and especially next year, we should see some fairly significant improvement on that front.

是的，我是 Nathan。很明顯，本季確實高了一些。主要是我們在一個含有較多罰金元素（penalty elements）的礦段，而這會隨季度波動。我們確實看到在第四季（Q4）會改善，尤其是明年，這方面應該會有相當顯著的改善。

Okay. And -- that was really it. Okay. So is it anything related to the -- I mean is it -- does it go up with the copper grade or anything like that? Or is it completely separate, just the different

好的。那——就這樣。好的。所以這跟——我的意思是——它會隨著銅品位上升而上升之類的嗎？還是完全無關，只是不同的

(inaudible)

（聽不清）

There's a bit of that, but also there's -- no, there's a bit of that, but there's also some changes in some contract terms that will kick in next year.

有一點關係，但也有——不，有一點關係，但也有一些合約條款的變更會在明年生效。

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 on -- in Q3, and we look forward to finishing off the year strong, and taking that momentum into 2023.

謝謝接線員，也謝謝各位今天撥冗參與。如我先前所說，我們在第三季（Q3）有許多正面進展可談，我們期待以強勁表現完成今年，並把這股動能帶進 2023 年。

Growth is paramount for success, and Avino has been laying the groundwork for future growth. We have given priority to the most important projects and initiatives on a clear path to transformational growth, unlocking the value of the Avino property. And the region has been a priority, and we are looking forward to the next steps in our growth objectives in turn, maximizing value for our shareholders and stakeholders. Have a great day.

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倡議，沿著清晰的路徑邁向轉型式成長，釋放 Avino 資產的價值。而該地區一直是我們的優先重點，我們也期待依序推進成長目標的下一步，為股東與利害關係人創造最大價值。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。您可以掛線。感謝您的參與，祝您有愉快的一天。