Avino Silver & Gold Mines Ltd (ASM) 2023 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 2023 Conference Call and Webcast. (Operator Instructions) And the conference is being recorded. (Operator Instructions)

感謝各位稍候。我是會議接線員。歡迎參加 Avino Silver & Gold Mines 2023 年第二季電話會議與網路直播。（接線員指示）本次會議將進行錄音。（接線員指示）

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

現在我想將會議交給投資人關係主管 Jennifer North。請開始。

Thank you, operator. Good morning, everyone, and welcome to the Avino Silver & Gold Mines Limited Second Quarter 2023 Financial Results Conference Call and Webcast. To join this webcast and call, there is a link in our news release dated August 3, and in our news release of yesterday's date, which can be found on our website under News 2023. 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 Limited 2023 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 3 日發布的新聞稿以及昨日發布的新聞稿中皆提供連結，可於我們網站的 News 2023 欄位找到。此外，您也可在 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.

在開始之前，請注意管理團隊今天在本次電話會議中所作的某些陳述，可能包含適用證券法所定義的前瞻性資訊。前瞻性陳述受到已知與未知風險、不確定性及其他因素影響，可能導致實際結果與該等前瞻性陳述所明示或暗示者存在重大差異。

The company does not intend to and does not assume any obligation to update such forward-looking statements or information other than as required by applicable law. For more information, we refer you to our detailed cautionary note in the presentation related to this call or on our press release of yesterday's date. Please note that the full financial statements and MD&A are now available on our website under the Investors tab, then click on financial statements. As well, the full statements are available on Avino's profile on SEDAR and on EDGAR.

除非適用法律另有要求，否則公司無意且不承擔更新該等前瞻性陳述或資訊之任何義務。更多資訊請參閱與本次電話會議相關之簡報中的詳細警示說明，或參閱昨日發布之新聞稿。另請注意，完整財務報表與 MD&A 現已可於我們網站的 Investors 分頁下取得，點選 financial statements 即可。此外，完整報表亦可於 Avino 在 SEDAR 與 EDGAR 上的公司檔案中查閱。

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，本次電話會議將進行錄音，並將於今日稍晚提供重播。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，將可於公司網站取得。謝謝。

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

現在我將把電話交給 Avino 總裁兼執行長 David Wolfin。David？

Thanks, Jen. Good morning, everyone, and welcome to Avino's Q2 2023 Financial Results Conference Call and Webcast. Please note that the full financial statements and MD&A are now available on our website. Also 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 2023 年第二季財務業績電話會議與網路直播。請注意，完整財務報表與 MD&A 現已可於我們網站取得。另請注意，除非另有說明，所有數字均以美元計價。

On today's call, we will cover the highlights of the second quarter financial and operating performance. And in addition, we will go over the work that we are currently performing, and then we will open it up for questions. I'll begin with the discussion on operations for Q2, and then I will turn it over to Nathan Harte, Avino's CFO, to discuss the financial performance for the second quarter; and Jennifer North, our Head of Investor Relations, for an overview of Q2 ESG initiatives.

在今天的電話會議中，我們將說明第二季財務與營運表現的重點。此外，我們也會回顧目前正在進行的工作，之後開放提問。我將先從第二季營運討論開始，接著交由 Avino 財務長 Nathan Harte 說明第二季財務表現；並由投資人關係主管 Jennifer North 概述第二季 ESG 計畫。

Turning to Slide 5, I will go over the second quarter highlights, which include the following. Avino achieved production results of just over 587,000 silver equivalent ounces, which was a slight decrease of 10% when compared to Q2 2022. The Avino Mine continues to provide stable production results, although it was impacted by mining and lower grade areas and equipment delivery delays, which are now behind us. We used the time to implement upgrades to the haulage ramp that have since allowed us to increase haulage rates. Just subsequent to the quarter, we announced the best drill intercept in company history.

請看投影片第 5 頁，我將說明第二季重點摘要，包括以下內容。Avino 的產量達到略高於 587,000 盎司銀當量，與 2022 年第二季相比小幅下降 10%。Avino 礦山持續提供穩定的產量表現，惟受到採礦作業與較低品位區域以及設備交付延遲的影響；目前這些問題已經排除。我們利用這段時間對運輸坡道進行升級，之後已使我們能提高運輸率。在季度結束後不久，我們宣布了公司史上最佳的鑽探截距。

We released the results of 3 drill holes from below Level 17, the deepest workings of the Avino Mine. Drill hole ET-23-09 shows 57 meters true width of mineralization. The mineralized intercept is exceptionally wide and has very high silver, gold and copper grades. We are thrilled by these results and the Q2 drill results from May of this year, which included 10 holes from below Level 17. The drilling demonstrated that the Avino Mine continues to get better as we explore depth. I will expand further on the exploration program later in the call.

我們公布了位於第 17 水平以下（Avino 礦山最深作業區）之 3 個鑽孔結果。鑽孔 ET-23-09 顯示礦化帶真厚度 57 公尺。該礦化截距異常寬，且銀、金與銅品位非常高。我們對這些結果以及今年 5 月的第二季鑽探結果感到非常振奮；5 月的結果包含第 17 水平以下的 10 個鑽孔。鑽探證明，隨著我們向深部探勘，Avino 礦山的表現持續改善。我稍後會在電話會議中進一步說明探勘計畫。

Also during the quarter, the metallurgical testing was completed on the Oxide Tailings Project, and the pre-feasibility study is now underway. I will go over this information a bit later in the presentation. The dry stack tailings facility is completed and operational. And during the quarter, the conveyor system is currently transporting the press dry tailings to the Avino open pit area.

此外，在本季度期間，氧化物尾礦專案的冶金測試已完成，前可行性研究目前正在進行中。我將在簡報稍後說明相關資訊。乾式堆置尾礦設施已完工並投入運作。本季度期間，輸送帶系統正將壓濾乾尾礦運送至 Avino 露天礦坑區域。

At La Preciosa, the company continues with its community engagement in nearby towns adjacent to the property. We are fully committed to moving this project forward as it factors in prominently into our 5-year growth plan.

在 La Preciosa，公司持續在鄰近該資產的周邊城鎮推動社區參與。我們完全致力於推進此專案，因其在我們的 5 年成長計畫中占有重要地位。

Here on Slide 6, we show our Q2 production results. As mentioned earlier, the production results from the Avino Mine were stable. The production results were announced on July 20, and the news release can be found on our website. Highlights are as follows and are compared to production results from Q1 2022.

在投影片第 6 頁，我們展示第二季產量結果。如先前所述，Avino 礦山的產量表現穩定。產量結果已於 7 月 20 日公布，新聞稿可於我們網站查閱。重點如下，並與 2022 年第一季的產量結果比較。

Silver equivalent production decreased 10% to 587,000 ounces. Silver production increased by 3% to 232,000 ounces. Copper production decreased by 12% to 1.45 million pounds. Gold production increased by 13% to 1,520 ounces. Mill throughput increased by 33% to just over 157,000 tonnes. We expect production to catch up to our internal guidance in the second half of the year as we continue our clear path to transformational growth. Our 5-year growth plan takes us from production levels of 2.8 million to 3 million ounces of silver equivalent to between 8 million and 10 million ounces of silver equivalent by 2028.

銀當量產量下降 10% 至 587,000 盎司。白銀產量增加 3% 至 232,000 盎司。銅產量下降 12% 至 145 萬磅。黃金產量增加 13% 至 1,520 盎司。選礦廠處理量增加 33% 至略高於 157,000 公噸。隨著我們持續朝轉型式成長的明確路徑前進，我們預期下半年產量將追上內部指引。我們的 5 年成長計畫，將使銀當量產量由 280 萬至 300 萬盎司提升至 2028 年的 800 萬至 1,000 萬盎司。

Turning to Slide 7. I will now touch on the exploration results and ongoing program. During the quarter, we focused on further drilling below Level 17 at the ET area of the Avino Mine. 8,000 meters of drilling is planned for the full year. And during the second quarter, 3,075 meters were drilled, bringing the total end of the first half of 2023 to 7,100 meters. We released results on May 23 that included 10 drill holes from below Level 17. And on July 5, which was just subsequent to the end of the quarter, we released a further 3 holes.

請看投影片第 7 頁。我現在將簡要說明探勘結果與進行中的計畫。本季度我們聚焦於 Avino 礦山 ET 區域第 17 水平以下的進一步鑽探。全年規劃鑽探 8,000 公尺；第二季完成 3,075 公尺，使 2023 年上半年累計達 7,100 公尺。我們於 5 月 23 日公布了包含第 17 水平以下 10 個鑽孔的結果；並於 7 月 5 日（即季度結束後不久）再公布另外 3 個鑽孔。

The results from May indicate that the Avino Vein was extended a further 500 meters and that the extent of the vein has been established to be at least 1,100 meters downdip from surface outcrop. In addition, a previously undiscovered breccia vein was intersected approximately 15 to 30 meters in the football intrusive rocks, which was very high grade. The full intercepts and drill data can be viewed in the news release, which is on our website.

5 月的結果顯示，Avino 礦脈再延伸 500 公尺，且該礦脈的延伸範圍已確立自地表露頭向下傾至少達 1,100 公尺。此外，在 football 侵入岩中約 15 至 30 公尺處，鑽遇一條先前未發現的角礫岩礦脈，品位非常高。完整截距與鑽探資料可於我們網站上的新聞稿中查閱。

Moving on to Slide 8, the title says it all. Avino drills the best intercept in company history. On July 5, we released a further 3 holes and one of the intercepts drill hole ET-23-09 showed 57 meters true width mineralization and is a step out of 50 meters to the west of Avino's most westerly drill hole at 200 meters downdip below Level 17. The whole assay 296 silver equivalent grams over 57 meters of true width, including 407 silver equivalent grams over 37 meters of true width and 2,866 silver equivalent grams over 3.43 meters of true width.

接著看投影片第 8 頁，標題已說明一切：Avino 鑽得公司史上最佳截距。7 月 5 日，我們公布另外 3 個鑽孔，其中一個截距為鑽孔 ET-23-09，顯示真厚度 57 公尺的礦化帶；該孔位於第 17 水平以下向下傾 200 公尺處，並相較 Avino 最西側鑽孔向西外推 50 公尺。全段品位為銀當量 296 克/公噸、真厚度 57 公尺；其中包括銀當量 407 克/公噸、真厚度 37 公尺，以及銀當量 2,866 克/公噸、真厚度 3.43 公尺。

There are 2 images on the slide. The one at the top is a long digital view of the Avino Vein showing the drill hole locations and the projection of the mineralization in red and the lower images across section of the above-mentioned whole ET-23 and the downdip extension from the current mine workings. The exceptionally wide and very high-grade silver, gold and copper grades are extremely encouraging for continued exploration of the Avino Vein and associated stock work in breccia at depth and suggest a much more complex mineralization system. We are still open along strike and at depth. Avino has enlisted several world-renowned structural geologists to contribute to the geological theory to help understand the structural controls of the Avino Vein.

投影片上有 2 張圖片。上方為 Avino 礦脈的長向數位視圖，顯示鑽孔位置以及以紅色標示的礦化投影；下方為上述 ET-23 全段的剖面圖，以及自目前礦山作業區向下傾方向的延伸。異常寬且銀、金與銅品位極高的結果，對於持續在深部探勘 Avino 礦脈及其相關角礫岩中的網脈（stockwork）極具鼓舞，並顯示礦化系統可能更為複雜。我們在走向與深部方向仍為開放。Avino 已邀請多位世界知名的構造地質學家共同提出地質理論，以協助理解 Avino 礦脈的構造控制因素。

Turning to Slide 9 now. On April 5, we announced the results of our comprehensive metallurgical program on the Oxide Tailings Project. I know that we went over this on our Q1 call. However, the Oxide Tailings Project forms part of our growth story. So I feel it's important to briefly touch on the results. Again, the results were favorable with up to 90% recovery on the ancient oxides for both gold and silver, as well as 86% and 83% recovery on gold and silver, respectively, for the more recent oxide material. Both the ancient and recent oxide materials make up all the mineralized resource shown in the table here.

現在轉到第 9 張投影片。4 月 5 日，我們公布了氧化物尾礦專案（Oxide Tailings Project）全面冶金計畫的結果。我知道我們在第一季電話會議中已經討論過。不過，氧化物尾礦專案是我們成長故事的一部分，因此我認為有必要簡要提及結果。再次強調，結果相當正面：針對古老氧化物（ancient oxides），金與銀的回收率最高可達 90%；而針對較近期的氧化物材料，金與銀的回收率分別為 86% 與 83%。古老與近期氧化物材料共同構成了此處表格所示的全部礦化資源。

This table also highlights the mineral resource growth from approximately 150 holes that were drilled during the mine closure, which also allowed us to move the project forward. You can see here the measured & indicated has grown by over 400%, providing us with a higher degree of confidence of the contained resource within the tailings deposit.

此表亦突顯了在礦山關閉期間鑽探約 150 個鑽孔所帶來的礦產資源成長，這也使我們得以推進該專案。您可以看到，探明及控制資源量（measured & indicated）已成長超過 400%，使我們對尾礦堆積體中所含資源的信心程度更高。

At this time, I will now hand it over to Nathan Harte, Avino's CFO, to continue with Avino Q2 financial results. Nathan?

此時，我將把時間交給 Avino 的財務長 Nathan Harte，繼續說明 Avino 第二季財務結果。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。很高興能參與這通電話會議，也歡迎今天加入並觀看我們簡報的各位。

Turning to Slide 10 now for a review of the Q2 2023 financial highlights. Our results for the second quarter were mixed from a financial results perspective, with positive net income and cash flow generation from operations. Even after 55 years, the Avino Mine continues to generate cash flows, which we are seeing as being an elusive feat in the challenging inflationary landscape both in Mexico and around the world.

現在轉到第 10 張投影片，回顧 2023 年第二季財務重點。從財務結果的角度來看，本季表現好壞參半，淨利與營運現金流為正。即使已經 55 年，Avino 礦山仍持續產生現金流；在墨西哥及全球皆面臨通膨壓力的艱困環境下，我們認為這是一項難能可貴的成就。

In the second quarter, cash flow generated from operations before working capital adjustments was $1 million, bringing the total for 2023 up to $2.2 million. On the flip side, revenues and mine operating income decreased compared to Q2 2022 and Q1 of 2023. We are optimistic of increased financial performance in the second half of the year, following some operational challenges in the second quarter with delays to replacement parts in the plant and some upgrades targeting copper recoveries, which have also struggled in 2023. In June, we added a new scoop to our existing underground mining fleet. This addition is already paying dividends with noticeable increases in haulage rates to the plant from underground throughout July.

第二季在營運資金調整前，營運活動產生的現金流為 100 萬美元，使 2023 年累計達到 220 萬美元。另一方面，營收與礦山營運收益相較於 2022 年第二季及 2023 年第一季有所下降。我們對下半年財務表現提升仍抱持樂觀，因為第二季遭遇了一些營運挑戰，包括選礦廠替換零件延遲，以及針對銅回收率的部分升級；而銅回收率在 2023 年也一直表現不佳。6 月，我們為現有地下採礦車隊新增了一台鏟運機（scoop）。這項新增已開始帶來效益，7 月期間地下至選礦廠的運輸率明顯提升。

Coming to Slide 11, I will walk you through some key financial results on top of the ones discussed in the previous slide. As noted already, net revenues came in lower than expected at $9.2 million, a slight decrease from $9.3 million in the quarter previously year-over-year. While we started Q2 strongly with additional sales, the decrease corresponded to lower sales later in the quarter as our production was impacted by the items mentioned previously.

來到第 11 張投影片，我將說明一些關鍵財務結果，並補充前一張投影片所討論的內容。如先前所述，淨營收為 920 萬美元，低於預期，較去年同期上一季的 930 萬美元小幅下降。雖然我們在第二季初因額外銷售而有強勁開局，但隨著本季後段銷售下降，淨營收也隨之下滑，原因在於我們的產量受到前述因素影響。

Avino generated mine operating income of $1 million for the quarter, including noncash depreciation and depletion compared to $3.9 million in Q2 of 2022. The decrease is a result of higher mined and milled tonnes during the quarter, alongside a strong peso to U.S. dollar rate, which is further offset by lower revenues when compared to previous quarters. I'll provide more insight on costs during the discussion on cash cost per ounce and per tonne later in the presentation.

Avino 本季礦山營運收益為 100 萬美元（包含非現金的折舊與耗竭），相較於 2022 年第二季的 390 萬美元有所下降。下降的原因是本季採礦與磨礦處理量增加，加上披索兌美元匯率走強；同時，與前幾季相比營收較低，進一步抵銷了上述因素。我將在簡報後段討論每盎司與每噸現金成本時，提供更多成本面的說明。

On a cash basis, mine operating income was $1.7 million, representing a cash 20% operating margin. Avino reported net income after taxes of $1.1 million or $0.01 per share for Q2, while EBITDA was $0.4 million for the quarter and adjusted earnings came in flat. Cash flow from operations for Q2 was $0.5 million after working capital adjustments with the company spending $1.8 million in capital investment, primarily relating to new equipment additions, for Avino and for La Preciosa as well as exploration activities and, to a lesser extent, mill upgrades.

以現金基礎計算，礦山營運收益為 170 萬美元，代表 20% 的現金營運毛利率。Avino 第二季稅後淨利為 110 萬美元，或每股 0.01 美元；本季 EBITDA 為 40 萬美元，調整後盈餘持平。第二季在營運資金調整後的營運現金流為 50 萬美元；公司資本投資支出為 180 萬美元，主要與新增設備有關，涵蓋 Avino 與 La Preciosa，以及探勘活動，另有較小部分用於磨礦廠升級。

Here on Slide 12, you can see our cash cost for silver equivalent payable ounce for the second quarter did continue to rise from the 2022 average and the preceding quarter at $16.33. All-in sustaining costs were also up from the previous period at $23.06. The increases for both metrics are a result of lower ounces sold for this quarter as a result of lower production from mill recovery challenges and lower grades arising from the planned mine sequence in the underground. On top of this, the Mexican peso appreciated by over 15% in the second quarter, which had an impact on our costs as the majority of all expenditures are incurred in Mexico with local suppliers, employees and contractors. The increased costs from a larger production volumes with lower level of ounces sold had a substantial impact on operating margins and cost per ounce. Again, we remain confident for a decrease in cost per ounce in the second half of the year.

在第 12 張投影片，您可以看到第二季每可支付銀當量盎司（silver equivalent payable ounce）的現金成本，較 2022 年平均與前一季持續上升至 16.33 美元。全維持成本（all-in sustaining costs）亦較前期上升至 23.06 美元。兩項指標上升的原因，是本季因磨礦回收率挑戰導致產量較低，以及地下礦山依計畫採礦順序造成品位較低，進而使售出盎司數下降。此外，墨西哥披索在第二季升值超過 15%，也推升了成本，因為我們大多數支出皆在墨西哥發生，對象包括當地供應商、員工與承包商。較大的產量但售出盎司數較少所造成的成本上升，對營運毛利率與每盎司成本產生了顯著影響。我們仍有信心在下半年降低每盎司成本。

Coming to Slide 13, you can see our cash cost per tonnes processed for the quarter came in around the recent average at $46.90. All-in cash cost per tonne processed were down significantly from 2022 and again, relatively in line with the first quarter. Our steady cost per tonne reflects the resilience of our operational team in Mexico during times of inflationary pressure all around the world, alongside a strong local currency in the peso as the team continues to deliver and manage to stick within our cost budget. Controlling costs remains the key priority to Avino alongside our future growth plans.

來到第 13 張投影片，您可以看到本季每處理噸（tonnes processed）的現金成本約為 46.90 美元，接近近期平均。每處理噸的全現金成本（all-in cash cost per tonne processed）較 2022 年大幅下降，且同樣大致與第一季相當。我們穩定的每噸成本反映了墨西哥營運團隊在全球通膨壓力及披索走強的環境下所展現的韌性；團隊持續交付成果並成功將成本控制在預算內。成本控管仍是 Avino 的關鍵優先事項，並與我們未來的成長計畫並行。

At this point, I will turn it over to Jennifer North, head of Investor Relations, for an overview of our second quarter ESG initiatives.

接下來，我將把時間交給投資人關係主管 Jennifer North，概述我們第二季的 ESG 計畫。

Thank you, Nathan. Turning to Slide 14. We have listed our recent ESG initiatives for the second quarter. These initiatives continue to build on Avino's efforts to incorporate on a daily basis, the principles of sustainability and social responsibility. These initiatives are carried out by our teams in Mexico and are as follows.

謝謝你，Nathan。現在轉到第 14 張投影片。我們列出了第二季近期的 ESG 計畫。這些計畫持續建立在 Avino 將永續與社會責任原則融入日常營運的努力之上。這些計畫由我們在墨西哥的團隊執行，內容如下。

In the community of San Jose de Avino, the team delivered over 20 trees for the reforestation of the green areas, provided a forklift and operator for several hours for part cleaning, provided sensing to a designated path in one of the parks, provided a backhoe for preventative maintenance to the road leading to the community bridge, Children's and Mother's Days were supported by Avino in all 3 of the communities and a children's strong contest was organized in all 3 of the communities to commemorate World Environment Day, and Avino supported the 5 schools that participated. Avino also provided Samsung tablets to the winners of the drawing contest.

在 San Jose de Avino 社區，團隊提供了超過 20 棵樹用於綠地復育造林；提供一台堆高機及操作員數小時以協助零件清潔；在其中一座公園的指定步道進行鋪設（sensing）；提供一台挖土機（backhoe）對通往社區橋樑的道路進行預防性維護；Avino 亦在三個社區支持兒童節與母親節活動，並在三個社區舉辦兒童體能競賽以紀念世界環境日，且 Avino 支持了參與的 5 所學校。Avino 也向繪畫比賽的得獎者提供 Samsung 平板電腦。

In the community of Zaragoza, the team delivered palm trees for planting and 2 waste drums for the benefit of the community Plaza. As detailed in the slide, environmental and community works are extremely important as well as supporting and celebrating families where we can. One of the top priorities for Avino is to provide jobs to those in the surrounding communities with the goal of fostering generations of enthusiastic and dedicated ambassadors of Avino.

在 Zaragoza 社區，團隊提供了棕櫚樹供種植，並提供 2 個垃圾桶以造福社區廣場。如投影片所述，環境與社區工作極為重要，我們也會在力所能及之處支持並慶祝家庭活動。Avino 的首要任務之一，是為周邊社區居民提供就業機會，目標是培育一代又一代充滿熱忱且投入的 Avino 推廣大使。

Currently, we have 438 direct jobs, which includes the workers at the mine site and in our office in Durango. This number of jobs will typically translate to 3x the number of indirect jobs for services consultants and suppliers in the surrounding communities in the Durango area. After diligently working towards obtaining a CSR designation, the team in Durango received the ESR award for the first time in August of 2022 and is on track to receive this important designation for a second year. We are committed to performing the CSR diagnostic processes with diligence each year to show our support and commitment to the local communities and the environment.

目前我們有 438 個直接就業機會，包含礦區現場員工以及位於杜蘭戈（Durango）辦公室的員工。此就業數通常可帶動周邊社區（杜蘭戈地區）服務顧問與供應商約 3 倍數量的間接就業機會。在持續努力取得企業社會責任（CSR）認證後，杜蘭戈團隊於 2022 年 8 月首次獲得 ESR 獎項，並正朝連續第二年取得此重要認證邁進。我們承諾每年都將以嚴謹態度執行 CSR 診斷流程，以展現我們對在地社區與環境的支持與承諾。

We have strategic alignment goals that span across the company, ensuring all employees from entry level to the executive team are working towards share goals and vision. We have an action plan to inform, educate and support all employees and community members to become ambassadors of Avino, and that we will all benefit when community and company are aligned. The success of Avino is dependent on its people, profitable operations, community support and the strong and sustainable future.

我們在全公司範圍內設定策略一致性的目標，確保所有員工從基層到高階主管團隊都朝共同目標與願景努力。我們有一項行動計畫，用以告知、教育並支持所有員工與社區成員成為 Avino 的大使；當社區與公司目標一致時，大家都將受益。Avino 的成功取決於我們的人才、獲利的營運、社區支持，以及強健且永續的未來。

I will now turn it over to David to continue on with the presentation, providing a metals of mining overview and our plans for the coming quarter. David?

我現在把時間交給 David，請他繼續簡報，提供金屬與採礦產業概覽，以及我們對下一季的規劃。David？

Thanks, Jen. Moving to Slide 15. Just a quick look at the outlook for metals and mining. We continue to see volatility in the markets. In June, the U.S. Fed left the rates unchanged which was its first pause after 10 consecutive hikes, which came 1 week after the Bank of Canada increased rates by another 0.25 percentage point. Then in July, the U.S. Fed increased the interest rates to its highest point in 22 years. U.S. now has an interest rate between 5.25% and 5.5% and possibly higher in coming days.

謝謝，Jen。請看第 15 頁投影片。我們快速看一下金屬與採礦的展望。我們仍然看到市場波動。6 月，美國聯準會維持利率不變，這是連續 10 次升息後的首次暫停；而在此之前 1 週，加拿大央行又將利率上調 0.25 個百分點。接著在 7 月，美國聯準會把利率提高到 22 年來的最高點。美國目前利率介於 5.25% 到 5.5% 之間，未來幾天可能還會更高。

In the second quarter, silver price ranged from a low of $22.34 an ounce early in June was as high as $26.02 an ounce in mid-April. The London fixed for the price of gold in Q2 ranged from $1,899 to $2,048 per ounce. The experts in the silver space continued to agree that silver will perform strongly in the years to come. We share this belief. The demand for silver and other precious metals will continue to increase over the coming years as the governments around the world press forward with their net-zero and green-future policies.

第二季白銀價格區間為：6 月初每盎司低點 22.34 美元，4 月中旬高點達每盎司 26.02 美元。第二季黃金倫敦定盤價區間為每盎司 1,899 美元至 2,048 美元。白銀領域的專家仍一致認為，白銀在未來幾年將有強勁表現。我們也認同這個看法。隨著全球各國政府持續推動淨零與綠色未來政策，未來幾年白銀及其他貴金屬的需求將持續增加。

As well as the U.S. Department of Energy just officially added copper to its critical materials list. And as you know, the Avino Mine is also copper intensive reaching approximately 37% of our production profile in 2023.

此外，美國能源部也正式將銅納入其關鍵材料清單。而如各位所知，Avino 礦也屬於高銅比重，2023 年銅約占我們產量結構的 37%。

Turning to Slide 16. You can see our plans for 2023. We are now well into the third quarter of 2023 and the prefeasibility study on the Oxide Tailings Project is well underway. We expect to present the results to the market in Q4.

請看第 16 頁投影片。各位可以看到我們 2023 年的規劃。我們目前已進入 2023 年第三季，氧化物尾礦專案的預可行性研究（PFS）正在順利進行中。我們預期在第四季向市場公布結果。

We are also focused on our plans for the Gloria and Abundancia veins at La Preciosa with community engagement ongoing as we ready ourselves to begin development work. Equipment is being sourced, environmental permit application is being prepared. We have 8,000 meters of drilling plan for 2023, and we are currently drilling below Level 17. Our recent drill results can be found on our website detailing the best intercept in the company's 55-year history. Lastly, the main goal is to replenish the treasury through cash flow generation from the Avino Mine as we look to the future at La Preciosa and the tailings project.

我們也聚焦於 La Preciosa 的 Gloria 與 Abundancia 礦脈規劃，並持續進行社區溝通，為啟動開發作業做好準備。設備正在尋源，環境許可申請也在準備中。我們 2023 年的鑽探計畫為 8,000 公尺，目前正在第 17 水平以下進行鑽探。我們近期的鑽探結果可在公司網站查閱，其中包含公司 55 年歷史上最佳的截距結果。最後，主要目標是透過 Avino 礦的現金流來補充公司金庫，以便我們展望 La Preciosa 與尾礦專案的未來。

As shown on Slide 17, we want to reemphasize the company's plan for growth. We have 3 assets within 20-kilometer footprint totaling hundreds of millions of silver equivalent mineral resources. On the same area, we have an operating mill complex, which is currently producing from our Avino Mine. Additionally, access to water power, tailings storage, all the ingredients to grow organically without the major capital investment required that would expect if we were starting from scratch. As you can see on this slide, our goal is to scale up by 2028 through production from these 3 assets and become the next low-cost intermediate producer.

如第 17 頁投影片所示，我們想再次強調公司的成長計畫。我們在 20 公里範圍內擁有 3 項資產，合計擁有數億盎司白銀當量的礦產資源。在同一區域內，我們也有一座正在運轉的選礦廠複合設施，目前由 Avino 礦供礦生產。此外，我們具備水電、尾礦儲存等條件，具備在不需要重大資本投入的情況下有機成長的所有要素——若從零開始，通常會需要那樣的資本投入。從這張投影片可以看到，我們的目標是到 2028 年透過這 3 項資產的產量擴張規模，成為下一家低成本的中型生產商。

Here on Slide 18, we present our continued initiatives for growth, which are development, production and optimization of La Preciosa, the tailings project, prefeasibility study and eventual construction decision. Further exploration at the Avino ET Mine. Other exploration and evaluating regional areas on the Avino properties.

在第 18 頁投影片，我們展示持續推動的成長措施，包括：La Preciosa 的開發、生產與最佳化；尾礦專案的預可行性研究以及最終的建設決策；在 Avino ET 礦進一步勘探；以及在 Avino 礦區其他區域的勘探與區域性評估。

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

接下來我們進入問答環節。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 focusing on some of the development work that you mentioned, the improvement to the haulage ramp specifically. Are you able to quantify the impact of that going forward, whether it be on haulage rates or throughput?

我想聚焦在你提到的一些開發工作，特別是運礦斜坡道的改善。你們能否量化這項改善對未來的影響，例如運輸率或處理量（throughput）方面？

Pete, do you want to take that?

Pete，你要回答這題嗎？

Sure. Sure. Yes, no problem. It's been pretty significant. You oscillate between being mine limited or no limited when you're operating a mine. And earlier this year and -- and last year as well, we were mine limited. And that is now shift -- that bottleneck has now shifted to the mill. So it's a good problem to have, but it just shifts the problem to somewhere else and you debottleneck that area. So we're no longer haulage limited as far as our throughput, which is fantastic. And that is credit to the improvements in the ramp. So that's both the haulage from underground and the backfill, which is fantastic. So now our focus shifts to how do we debottleneck the mill.

當然。當然。沒問題。影響相當顯著。營運礦山時，你會在「受礦山限制」或「不受礦山限制」之間來回擺盪。今年稍早——以及去年也是——我們是受礦山限制的。但現在已經轉變了——瓶頸已經轉移到選礦廠。所以這算是個好問題，但也只是把問題移到別的地方，然後你再去把那個環節去瓶頸化。因此，就處理量而言，我們不再受運輸能力限制，這非常棒。而這要歸功於斜坡道的改善。這同時涵蓋地下運礦與回填運輸，效果都很好。接下來我們的重點就轉向：如何讓選礦廠去瓶頸化。

Got it. Okay. And then just switching over to foreign exchange. I mean, we've all seen the peso strengthen quite a bit recently, and it's had an impact on operating costs across Mexico. Any color on the impact that you guys have been seeing related to site costs and any steps you've taken or looking to take to try and mitigate the impact here?

了解。好。接著想切換到外匯議題。我想大家都看到比索最近明顯走強，這也影響了墨西哥各地的營運成本。你們能否分享一下你們在礦區成本上看到的影響，以及你們已採取或正在考慮採取哪些措施來降低影響？

Yes. It's a good question, Jake. Nathan here. Obviously, I mentioned even just in Q2 alone, the pace was appreciated over 15% or around that range. It's kind of stabilized now, which has been good and it just allows for better forecasting. Considering, as I mentioned on the call, we're first, a Mexican company, and we pay in pesos in country to local employees, suppliers and contractors. So the impact is obviously not -- it felt easily on our operation. What we're doing to mitigate it is we're working with vendors and also looking at our hedging options. I think it's still -- no one really predicted that it would get down this low across the industry. So we're still -- we're looking at kind of what's going to happen next and what's the best move for us as far as mitigating any further movement.

是的，這是個好問題，Jake。我是 Nathan。很明顯地，我甚至提到僅在第二季，比索就升值了超過 15% 或大約在那個區間。現在已經稍微穩定下來，這很好，也讓我們能做更好的預測。考量到如我在電話會議上提到的，我們首先是一家墨西哥公司，我們在當地以比索支付給本地員工、供應商與承包商，因此影響當然會——在我們營運上感受得很明顯。我們為了降低影響，正在與供應商協商，也在評估避險選項。我認為整個產業其實都沒有人真正預測到會走到這麼低的水準。所以我們仍在觀察接下來可能的走勢，以及就降低進一步波動而言，對我們最好的做法是什麼。

Okay. So as of now, you're still fully exposed, you're just evaluating options?

好的。所以截至目前，你們仍是完全曝險，只是在評估選項？

No, not fully exposed. But yes, we're still exposed because we do still pay in pesos, but we've taken some measures kind of to mitigate that risk.

不，不是完全曝險。但對，我們仍有曝險，因為我們確實仍以比索支付；不過我們已採取一些措施來降低該風險。

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

下一個問題來自 H.C. Wainwright 的 Heiko Ihle。

When I look at La Preciosa and your current steps, your release stated that you're conducting a variety of community engagement in the nearby talents adjacent to the property. Walk me through the feedback that you're getting from folks there? Are they recommending any particular steps that they would like to see, anything particularly want you to incorporate, anything that they sort of say, hey, this may be holding up permitting or anything? I mean I assume they can't really stop permitting per se, but they can all rattle some changes. And I assume that you haven't really found anything historical or otherwise that you didn't expect, correct?

我看 La Preciosa 以及你們目前的步驟，你們的新聞稿提到你們正在與礦區附近、緊鄰該資產的社區（talents）進行各種社區參與。請帶我了解一下你們從當地民眾那邊得到的回饋？他們是否建議你們採取任何特定步驟、希望你們納入哪些內容，或是有沒有提到任何可能會拖慢許可進度的事情？我的意思是，我想他們不至於能真正阻止許可本身，但他們可能會提出一些變更要求。另外，我也假設你們沒有發現任何歷史因素或其他你們原本沒預期到的事情，對嗎？

David here. So we've been informing them about our plans. It's going to be a low footprint. We're not planning to build a big open pit mine. So it's taken some time to get that message out because that's what core was planning. And so we've been doing that. They're all pro mining. There are several different [Ahito] groups. We're down to the last one, negotiating on terms. So we're anticipating positive results here this year, and we are making the environmental permit application. And once we have the blessing of the final Ahito group, we'll file that. So that's where we're at right now.

我是 David。我們一直在向他們說明我們的計畫。這將是一個低足跡的開發，我們不打算建一個大型露天礦。因此，花了一些時間把這個訊息傳達出去，因為之前 Core 的規劃是那樣的。所以我們一直在做這件事。他們都支持採礦。那邊有幾個不同的 [Ahito] 團體。我們已經談到最後一個，正在就條款協商。因此我們預期今年會有正面的結果，同時我們也在準備環境許可申請。一旦獲得最後一個 Ahito 團體的同意，我們就會提交申請。目前進度就是這樣。

Fair enough. Then just a quick clarification. (inaudible) open. The prefeasibility study as per your release is due by the end of 2023. Looking at this for essentially mid-August right now, so it's really only 4.5 months left in the year. Could you maybe quantify it a little bit closer with a date when you think we're going to get our hands on that? And also, what exactly is currently being undertaken with the PFS, like what step of the process are you in place?

了解。那再快速釐清一下。（聽不清）開放。依你們新聞稿，預可行性研究預計在 2023 年底前完成。以現在大約是 8 月中旬來看，今年只剩大概 4.5 個月。你們能否把時間點再具體一點，提供一個你們認為我們可以拿到報告的日期？另外，目前 PFS 正在進行哪些工作，你們現在處於流程的哪個階段？

Sure. Pete, do you want to take that?

當然。Pete，你要回答這個嗎？

Yes, sure. Heiko, thanks for the question. Yes, we're right in the thick of it now as far as the PFS working with the engineering company being Tetra Tech. They had visited site already as part of the requirements for the pre-feasibility study. That went extremely well. We're reviewing flow sheets. We're trying to lock that in as well as the process design criteria. So we're right in the middle of it.

是的，當然。Heiko，謝謝你的提問。是的，就PFS（預可行性研究）而言，我們現在正處於關鍵階段，PFS 是與工程公司 Tetra Tech 合作進行。他們已依照預可行性研究的要求到現場勘查過，進展非常順利。我們正在審查流程圖（flow sheets），也在嘗試把它以及製程設計準則（process design criteria）定案。所以我們正進行到一半。

Right now, the way the project is scheduled, it's looking like we'll be able to release that information in early December. There's opportunities to fast track that to bring that schedule forward a couple of weeks, but then there's also the potential that, that could slip a few weeks into January. Best case scenario, we're looking at November for press releasing the information. Right now, it's targeted for early December. But as I mentioned, it could slip a couple of weeks both ways. It's something that we're actively working on. As I mentioned, there's a lot of back and forth as far as optimization of the flow sheet and that sort of thing, and that's sort of the discussions going on. We've done kind of preliminary pit shells at this point in time. We've looked at the resource. We've kind of done the cutoff grade calculation. So there's been a lot of headway on the project, and I think I'm pretty happy with the results thus far.

目前依照專案排程來看，我們看起來能在 12 月上旬發布這些資訊。有機會加速推進，把時程提前一到兩週，但也有可能延後幾週到 1 月。最佳情境下，我們可能在 11 月就以新聞稿發布資訊；目前目標仍是 12 月上旬。不過如我提到的，前後都可能差個幾週。我們正在積極推進。正如我所說，在流程圖最佳化等方面有很多來回討論，相關討論正在進行中。我們目前也做了一些初步的露天礦坑殼（pit shells）。我們檢視了資源量，也做了截止品位（cutoff grade）計算。所以專案已經有很大進展，到目前為止我對結果相當滿意。

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 couple of questions here. One on operations. I'll start with that one. The -- you mentioned the bottleneck has shifted now from the mine to the mill. Just can you remind us again what kind of haulage capacity? Or do you have it to mine now or in where you're running at? And then what's the current mill capacity?

我這裡有幾個問題。一個是關於營運，我先從這個開始。你們提到瓶頸現在已從礦山轉移到選礦廠。能否再提醒我們一下目前的運輸（haulage）能力大概是多少？或者你們現在礦山端的產能/運行水準是多少？另外，目前選礦廠的產能是多少？

Peter here. I'm happy to take that. So the current mill capacity is just over 2,500 tonnes -- call it, 2,500 tonnes per day with all 4 circuits running. And we have just recently commissioned Circuit 2 to run. If you recall that we weren't running Circuit 2 because we didn't have the mill feed, let's say. So our haulage capacity is above 2,500 tonnes per day.

我是 Peter，我很樂意回答。目前選礦廠產能略高於 2,500 噸——就算 2,500 噸/日，在四條迴路（circuits）全數運轉的情況下。而我們最近才完成第 2 迴路（Circuit 2）的投產運轉。你可能記得，之前我們沒有跑第 2 迴路，因為我們沒有足夠的磨礦入料（mill feed），可以這麼說。所以我們的運輸能力高於 2,500 噸/日。

Are you running -- sorry, go ahead.

你們目前是——抱歉，你繼續。

And we're just fine-tuning that capacity in the mill because that's -- as you shift the bottleneck there, then you end up understanding what are the limiting factors in the mill, and you kind of have to optimize those -- that criteria, therefore, making sure that you can hit 2,500 tonnes per day.

我們正在對選礦廠的產能做微調，因為當瓶頸轉移到那裡時，你就會更清楚選礦廠的限制因素是什麼，然後需要去最佳化那些——那些準則，以確保能達到 2,500 噸/日。

Okay. But we won't see that reflected in -- where we see that capacity come up through the balance of the year from Avino mill?

好的。但我們不會看到這反映在——也就是說，在今年剩餘時間裡，我們會看到 Avino 選礦廠的產能提升反映出來嗎？

Yes, I believe so.

是的，我相信會。

Okay. Okay. That's good. That's very good. So that kind of feeds into the -- you're still expecting to make sort of that internal guidance numbers as far as I think it was 2.8 million to 3.2 million out to silver equivalent?

好的。好的。那很好。非常好。所以這也帶到——你們仍然預期能達到內部指引數字，也就是我記得大概是 280 萬到 320 萬盎司白銀當量（silver equivalent）？

That's what we're hoping to get to. Sorry, Nat, go ahead.

這是我們希望達到的。抱歉，Nat，你先說。

No, that's right.

不，沒錯。

Okay. And then one more question, if I may, on CapEx. It looks like you spent about just over $5 million this year. What's it look like for the balance of the year? And what are you going to be spending it?

好的。另外我想再問一個關於資本支出（CapEx）的问题。如果我沒看錯，你們今年已花了略高於 500 萬美元。那今年剩餘時間會是什麼情況？你們會把錢花在哪些項目上？

Yes, Nathan here. Good question. So as I mentioned earlier, there's not many large-scale items left for the year. It's just going to be some improvements throughout the mill and just some mine development. So we're not expecting any larger ticket items really until we get into the development at La Preciosa.

是的，我是 Nathan。好問題。如我先前提到的，今年剩下的時間沒有太多大型項目了，主要會是選礦廠的一些改善，以及一些礦山開發。因此，在進入 La Preciosa 的開發之前，我們不預期會有任何真正的大額項目。

Okay. So we can assume less CapEx through the balance of the year than -- for the second half of the year than the first half?

好的。所以我們可以假設今年下半年（相較上半年）資本支出會更少？

Yes, I think the first -- especially the first quarter was pretty -- was a little more intensive. Second quarter was a little lighter, and we're expecting that kind of continue. Yes, probably either second quarter rates or slightly lower.

是的，我認為上半年——尤其第一季——相對比較密集。第二季稍微輕一些，我們預期這種情況會延續。是的，可能會維持第二季的水準或略低一些。

Okay. And I guess one final question here. $1.2 million in cash. Obviously, with everything you're talking about, it looks as though cash will start to build again from here, assuming we don't have some sort of awful change in the metal pricing. What is your kind of backstop on the cash side should you need to tap into additional capital for any reason for additional cash...

好的。我想最後一個問題：你們現金是 120 萬美元。顯然，依照你們所談的內容，假設金屬價格沒有出現某種糟糕的變化，現金看起來應該會從這裡開始再度累積。如果因任何原因需要額外現金、需要動用額外資本，你們在現金端的後盾（backstop）是什麼……

Yes. Nathan here. So we do have -- we did renew our ATM in June, and we did use it to back up a little bit, and I think as disclosed in our financials as well, too. So we did add treasury a little bit, but obviously, not a huge amount as we're not looking to dilute too hard. So we have that available to us on a continuous basis to use if needed.

是的，我是 Nathan。我們確實有——我們在 6 月更新了 ATM（按市價發行機制），而且我們也用它做了一點補強，我想在我們的財報揭露中也有提到。因此我們確實稍微增加了一些庫存資金（treasury），但顯然金額不大，因為我們不希望過度稀釋（dilute）。所以我們有這個工具可在需要時持續使用。

(Operator Instructions) Our next question comes from Chris Temple, National Investor Publishing.

（接線員指示）我們的下一個問題來自 National Investor Publishing 的 Chris Temple。

You answered some of what I wanted to ask with Heiko's question, but to expand on that. I was curious if you could clarify exactly what is inbound and what is out of bounds the space in Mexico, generally. Is there an issue with you getting this environmental permit in the end, assuming you qualify for -- in all the regulatory ways given that the government has not been too free in the recent past with new projects?

你們在回答 Heiko 的問題時已經回答了我部分想問的，但我想再延伸一下。我想請你們釐清，在墨西哥整體而言，哪些範圍是可行（inbound），哪些是不可行（out of bounds）的？考量到政府近來對新專案並不算太開放，假設你們在各項法規要求上都符合，最終取得環境許可（environmental permit）會不會有問題？

David here. We don't expect any delays. But Carlos, do you want to expand on the environmental permit process?

我是 David。我們不預期會有任何延誤。不過 Carlos，你要不要補充一下環境許可的流程？

Yes, yes. Of course, it's David. This is Carlos here, Chris. Yes, our environmental consultants, they are working on the permits. As was mentioned by David early in the call, an important part of the process is a blessing from the communities in the project, La Preciosa project is in the middle of different [heads] there. And we have the blessing for the water heel, but still, we are working in one of the one of the heads and still negotiating with them. But yes, so the clinical permit for mining and everything is in the way. We can submit in the next couple or 3 months ahead.

是的，是的，當然，David。Chris，我是 Carlos。是的，我們的環境顧問正在辦理許可。如 David 在電話會議前段提到的，流程中很重要的一部分是取得專案所在地社區的祝福/同意。La Preciosa 專案位於不同的 [heads] 之間。我們已取得用水方面的同意（blessing for the water heel），但我們仍在其中一個——其中一個 heads——持續與他們協商。不過是的，採礦及相關的一切許可都在推進中。我們可以在接下來兩到三個月內提交。

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

問答環節到此結束。我想把電話會議交回給 David Wolfin，請他做結語。

Thank you, operator, and thank you to everyone for the time today. As I said, we have embarked on a clear path to transformational growth, and our focus continues to be on delivering the best performance to our shareholders and stakeholders while executing the growth plan. We're looking forward to the second half of the year. Have a great day.

謝謝你，接線員，也謝謝各位今天撥冗參與。如我所說，我們已踏上一條清晰的轉型成長之路，我們的重點仍是：在執行成長計畫的同時，為股東與利害關係人交出最佳表現。我們期待今年下半年。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。