Avino Silver & Gold Mines Ltd (ASM) 2023 Q3 法說會逐字稿

Thank you for standing by, and this is the conference operator. Welcome to the Avino Silver & Gold Mines Q3 2023 Conference Call and Webcast. (Operator Instructions) I would now like to turn the conference over to Jennifer North, Head of Investor Relations. Please go ahead.

感謝各位稍候，我是會議接線員。歡迎參加 Avino Silver & Gold Mines 2023 年第三季（Q3 2023）電話會議與網路直播。（接線員指示）現在我想把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 Third Quarter 2023 financial results conference call and webcast to join this webcast and conference call. There is a link in our news release dated November 1, and in our news release of yesterday's date, which can be found on our website under News 2023.

謝謝，接線員。各位早安，歡迎參加 Avino Silver & Gold Mines Limited 2023 年第三季財務結果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 1 日的新聞稿以及昨天發布的新聞稿中提供了連結，可在我們網站的 News 2023 下找到。

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.

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

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 on our press release of yesterday's date. Please note that the full financial statements and MD&A are now available on the website under the Investors tab and click on financial statements as well.

除非適用法律另有要求，公司無意且不承擔更新該等前瞻性陳述或資訊之任何義務。更多資訊請參閱我們於昨天新聞稿中、與本次電話會議相關之簡報內的詳細警示說明。另請注意，完整財務報表與 MD&A 現已於網站 Investors 分頁下提供，並可點選 financial statements 查閱。

The full statements are available on the Venus profile on SEDAR and on EDGAR. 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 and this conference call and webcast will be available on the website. Also note that all figures stated are in US dollars unless otherwise noted.

完整報表亦可於 SEDAR 的 Venus 檔案以及 EDGAR 上取得。我想提醒各位，本次電話會議將被錄音，並將於今日稍晚提供重播。重播資訊、簡報投影片，以及本次電話會議與網路直播內容將於網站提供。另請注意，除非另有說明，所有數字均以美元計。

Thank you. I will now hand over the call to have enough President and CEO, David Wolfin. David?

謝謝。現在我將把電話交給公司總裁暨執行長 David Wolfin。David？

Thanks, Jen, and good morning, everyone, and welcome to the NOS Q3 2023 financial results conference call and webcast. Please note that the full financial statements and MD&A are now available on our website.

謝謝，Jen。各位早安，歡迎參加 NOS 2023 年第三季財務結果電話會議與網路直播。請注意，完整財務報表與 MD&A 現已於我們網站提供。

On today's call, we will cover the highlights of the third quarter financial and operating performance, and we'll go where the work that we are currently performing, and then we will open it up for questions.

在今天的電話會議中，我們將說明第三季財務與營運表現重點、目前正在進行的工作，之後將開放提問。

I will begin with a discussion on operations for Q3, and then I'll turn it over to Nathan Harte, Avino CFO, to discuss the financial performance for the third quarter, and Jennifer North, our Head of Investor Relations for an overview of Q3 ESG initiatives.

我將先就第三季（Q3）的營運進行說明，接著交由 Avino 財務長 Nathan Harte 說明第三季財務表現，並由投資人關係主管 Jennifer North 概述第三季 ESG 計畫。

Please turn to slide 5, where I have outlined the operational highlights. Our Q3 production results were released in mid-October, and we achieved production results of over 591,000 silver equivalent ounces, which brings the 12-month trailing total to $2.63 million silver equivalent ounces.

請翻到第 5 頁投影片，我在此概述營運重點。我們於 10 月中旬公布第三季產量結果，達成超過 591,000 盎司白銀當量的產量，使過去 12 個月累計總量達到 2.63 百萬盎司白銀當量。

We are currently pleased with the drill results released in July and September from a total of seven drill holes that included the best intercept in the Company's history. In September, we reported four drill holes below level 17 at the ET area that included substantial width at grades above our current cutoff.

我們對於 7 月與 9 月公布的鑽探結果感到滿意，該等結果來自合計 7 個鑽孔，並包含公司史上最佳的截距結果。9 月我們報告了 ET 區域第 17 水平以下的 4 個鑽孔，皆呈現寬厚礦段且品位高於我們目前的截止品位。

Great. In July, we reported the best drill intercept in the history that showed 57 meters of true width of mineralization drill hole 1823 oh nine had exceptionally wide and very high silver gold and copper grades, which is very encouraging for continued exploration of the Avino vein, I will expand further on the exploration program results later in the call.

很好。7 月我們報告了公司史上最佳鑽探截距，顯示真厚度 57 公尺的礦化帶；鑽孔 1823 oh nine 具有異常寬厚且白銀、黃金與銅品位非常高，這對 Avino 礦脈的持續勘探非常令人鼓舞。我將在稍後的電話會議中進一步說明勘探計畫成果。

We have now completed our planned and budgeted drilling program for the year and drilled 75 hundred and 45 meters in 13 holes. The pre-feasibility study on the oxide tailings project is currently underway and is expected to be completed early in Q1 2024.

我們現已完成本年度規劃且已編列預算的鑽探計畫，共完成 13 個鑽孔、鑽探 7,545 公尺。氧化尾礦專案的預可行性研究目前正在進行中，預計於 2024 年第一季初完成。

Dry stack facility is fully operational with the conveyor system installed and we are now transporting the press tailings to the Avino open pit area at the La Preciosa property communication with the hero group is ongoing and we are fully committed to moving the project forward. It factors prominently into our five year growth plan here on slide 6, we show our Q3 production results.

乾式堆置設施已全面運轉，輸送帶系統已安裝完成，我們目前正將壓濾尾礦運送至 La Preciosa 資產的 Avino 露天礦區。與 hero group 的溝通仍在進行中，我們完全致力於推動該專案向前。該專案在我們的五年成長計畫中占有重要地位。在第 6 頁投影片，我們展示第三季產量結果。

The production results from the Avino mine continued to be consistent in Q3. We are mining in area areas with lower copper grades and experienced lower recovery rates. The production results are as follows silver equivalent production was 591,000 ounces. Silver production was 237,000 ounces.

Avino 礦山第三季的產量表現持續穩定。我們在銅品位較低的區域採礦，回收率也較低。產量如下：白銀當量產量為 591,000 盎司；白銀產量為 237,000 盎司。

Copper production was [1.14 million Pounds]. Gold production increased by 73% to just under 2,100 ounces. Mill throughput was just under 155,000 tonnes based on year to date production. The current time line associated with processing material from leprosy. Also, we have adjusted our internal production estimate for the full year to 2.4 million ounces to 2.7 million ounces of silver equivalent or 5-year growth plan takes us from production levels of 2.4 million ounces to 2.7 million ounces of silver equivalent between 8 million ounces and 10 million ounces of silver equivalent by 2028.

銅產量為 [114 萬磅]。黃金產量增加 73%，至略低於 2,100 盎司。磨礦處理量略低於 155,000 公噸（依年初至今產量計）。目前與處理來自 leprosy 的物料相關之時間表亦在進行中。此外，我們已將全年內部產量預估調整為白銀當量 240 萬盎司至 270 萬盎司；我們的五年成長計畫將使產量自白銀當量 240 萬至 270 萬盎司，於 2028 年提升至白銀當量 800 萬至 1,000 萬盎司。

Turning to slide 7, I would like to touch on exploration results from the third quarter. 8,000 meters of drilling was planned for the year, and we have now achieved 745 meters, and the 2023 program is now completed. We released results of September 14th that included four drill holes from below level 17 and on July fifth, we also released three holes.

接著看第 7 頁投影片，我想談談第三季的勘探成果。本年度規劃鑽探 8,000 公尺，我們目前已完成 745 公尺，2023 年計畫現已完成。我們於 9 月 14 日公布的結果包含第 17 水平以下的 4 個鑽孔；7 月 5 日也公布了 3 個鑽孔。

Moving on to slide 8, the information from September 14 drill results are shown, as mentioned in previous in the previous slide, we released the assays from four drill holes. We had substantial width at grades well above our current cutoff grade on all four holes for whole YT. 2313.

接著看第 8 頁投影片，這裡呈現 9 月 14 日鑽探結果資訊。如前一頁所述，我們公布了 4 個鑽孔的化驗結果。4 個鑽孔在 YT. 2313 均呈現寬厚礦段，品位遠高於我們目前的截止品位。

There was 0.7% copper, 31 grams silver and 0.21 grams gold over 44 meters of true width. In addition, we have continued to define the hanging wall Brescia, which is an offshoot of the Avino main vein that originates from surface. The access to the bridge here is relatively easy through existing development works, and we are currently evaluating a mine plan to incorporate these resources into our medium term plans. We were also surprised with the intersection of stockwork vein close to surface, which indicated the complex and distributed nature of the Stockwork system.

其中在真厚度 44 公尺範圍內，銅為 0.7%、白銀 31 克、黃金 0.21 克。此外，我們持續圈定上盤角礫岩（hanging wall Brescia），其為自地表起源、由 Avino 主礦脈分支而出的礦化體。透過既有開發工程即可相對容易進入該角礫岩區域，我們目前正評估將這些資源納入中期計畫的礦山規劃。我們也對近地表交會到細脈網狀（stockwork）礦脈感到意外，顯示該細脈網狀系統具有複雜且分散的特性。

It accompanies this thick main Avino vein. The drilling completed in 2023, followed the continuity of the steeply dipping mineralization and helps us in understanding the deep source of the mineralization, as you know, has enlisted a number of world-renowned consulting geologists to contribute to the geological understanding of the mineralization characteristics. The known depth extent to date of at least 750 meters of mineralization is significant.

該系統伴隨著厚實的 Avino 主礦脈。2023 年完成的鑽探追蹤了陡傾礦化的連續性，並協助我們理解礦化的深部來源。如各位所知，我們已邀請多位世界知名的顧問地質學家，協助深化對礦化特徵的地質理解。目前已知的礦化深度延伸至少達 750 公尺，意義重大。

On this slide, you will see two images revealing the drill hole location and the cross section of hole ET 2313, where you can view the substantial width of the Avino vein at the drill location. The full INTERCEPT and drill data can be viewed in the news release, which is on our website.

在本頁投影片中，您將看到兩張圖片，分別顯示鑽孔位置以及 ET 2313 孔的剖面，您可在鑽孔位置看到 Avino 礦脈的顯著寬度。完整截距與鑽探資料可於我們網站上的新聞稿中查閱。

Moving to Slide 9. This was very exciting for us. We reported the best intercept in the company's history. On July 5, we released three holes from the program below level 17 at the ET. area of the Avino Mine and one of the intercepts drilled drill hole ET. 2309 showed 57 meters of true width of mineralization. And as I step out of 50 meters to the west of Athena's, most westerly drill hole and 200 meters down dip below level 17 the hole assayed 296 grams of silver equivalent over 57 meters true width, including 407 grams of silver equivalent over 37 meters. True width and 28 hundred and 66 grams of silver equivalent over 3.43 meters of true width.

接著看第 9 頁投影片。這對我們而言非常令人振奮。我們報告了公司史上最佳截距。7 月 5 日，我們公布 Avino 礦山 ET 區域第 17 水平以下計畫的 3 個鑽孔，其中一個截距來自鑽孔 ET. 2309，顯示真厚度 57 公尺的礦化帶。當我向西外推 50 公尺、位於 Athena 最西側鑽孔以西，並在第 17 水平以下沿傾向下延伸 200 公尺處，該孔在真厚度 57 公尺範圍內化驗為白銀當量 296 克/噸，其中包含真厚度 37 公尺的白銀當量 407 克/噸，以及真厚度 3.43 公尺的白銀當量 2,866 克/噸。

There are two images on this slide that the one that the top is the longitudinal view of the Avino vein showing the drill hole locations and the projection of the mineralization in red and the lower image is a cross-section of the above mentioned, whole ET. 23 and the down-dip extension from the current mine workings exceptionally wide and very high silver gold and copper grades are extremely encouraging for our continued exploration of the Avino vein and associated stockwork Brescia at depth and suggests a much more complex mineralization system. We are still open along strike and at depth at this time, I will now hand it over to Nathan Harte, Vinod CFO, to present the Venus Q3financial results. Nathan?

本頁有兩張圖片：上圖為 Avino 礦脈的縱向視圖，顯示鑽孔位置以及以紅色標示的礦化投影；下圖為上述 whole ET. 23 的剖面，以及自目前礦山開採工程向下傾延伸的部分。異常寬厚且白銀、黃金與銅品位非常高，對我們持續在深部勘探 Avino 礦脈及其相關的細脈網狀角礫岩（stockwork Brescia）極具鼓舞作用，並顯示礦化系統可能更為複雜。目前我們在走向與深部仍具延伸潛力。現在我將把電話交給 Nathan Harte，Vinod 財務長，報告 Venus 第三季財務結果。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，也歡迎今天加入我們並正在觀看我們簡報的各位。

Turning to slide 10 for a review of the Q3 2023 financial highlights. Our results from this quarter showed positive increases across the board in almost all key metrics, Q3 with the best performing of 2023 when it comes to revenues, mine operating income, EBITDA adjusted earnings and operating cash flow generated before working capital movements.

接著請看第10頁，回顧2023年第三季的財務重點。本季結果在幾乎所有關鍵指標上都呈現正向成長；就營收、礦場營運收入、EBITDA、調整後盈餘以及在營運資金變動前所產生的營運現金流而言，第三季是2023年表現最佳的一季。

Revenues for the quarter came in at $12.3 million, an increase of over $3 million from the previous quarter as well as the comparable quarter in 2022. Mine operating income for this quarter was $2.4 million, with $5.3 million generated year to date, cash flows generated from operations before working capital adjustments was $1.8 million, totaling $4.1 million for the full year 2023 so far, adjusted earnings came in at $1.6 million or $0.01 per share for this quarter, with the year-to-date total sitting at $2.6 million or $0.02 per share. At September 30t, we did see an increase in working capital of $2.8 million or 62%, bringing our total up to $7.4 million from the $4.6 million we had at the end of the second quarter.

本季營收為1,230萬美元，較前一季以及2022年同期均增加超過300萬美元。本季礦場營運收入為240萬美元，年初至今累計為530萬美元；營運活動在營運資金調整前所產生的現金流為180萬美元，2023年迄今合計為410萬美元；本季調整後盈餘為160萬美元或每股0.01美元，年初至今合計為260萬美元或每股0.02美元。截至9月30日，我們的營運資金增加280萬美元或62%，使總額由第二季末的460萬美元提升至740萬美元。

Turning to slide 11, I'll walk you through some key additional financial results as well as the ones discussed in the previous slide. As noted already, revenues came in at $12.3 million, well up from the $9.1 million we showed in Q3 2022 as we move on from some plant operational challenges that affect the second quarter and part of the third quarter. We are looking for that trend to continue into the end of the year and into 2024.

接著看第11頁，我將帶各位了解一些額外的關鍵財務結果，以及前一頁所討論的項目。如先前所述，營收為1,230萬美元，較2022年第三季的910萬美元大幅成長，因為我們正逐步走出影響第二季及第三季部分期間的廠區營運挑戰。我們預期這個趨勢將延續至年底並延伸到2024年。

We generated mine operating income of $2.4 million for this quarter, which includes noncash depreciation and depletion and as compared to $2.1 million in the third quarter of 2022. The increase as a result of higher revenues, which were offset by a very strong peso to US dollar rate when compared to the third quarter in 2022. On a cash basis, mine operating income was $3.1 million, representing a cash operating margin of 26%. Athena reported a net loss after taxes of $0.8 million or $0.01 per share for the third quarter compared to a loss of $1.1 million or $0.01 per share in 2022.

本季我們的礦場營運收入為240萬美元，其中包含非現金的折舊與耗竭，較2022年第三季的210萬美元增加。增加主要來自較高的營收，但部分被相較於2022年第三季更為強勢的披索兌美元匯率所抵銷。以現金基礎計算，礦場營運收入為310萬美元，代表現金營運毛利率為26%。Athena第三季稅後淨損為80萬美元或每股0.01美元，相較之下，2022年同期淨損為110萬美元或每股0.01美元。

EBITADA was $0.7 million for the quarter, and adjusted earnings were $1.6 million, both showing significant increases for the same quarter year over year. Cash flow from operations for Q3 was $1.8 million before working capital adjustments up from [$1.6 million] in Q3 of 2022 here on slide 12, you can see our cash costs per silver equivalent payable ounce. The third quarter were similar to last quarter at 1690 with both quarters elevated over results from 2022.

本季EBITADA為70萬美元，調整後盈餘為160萬美元，兩者相較去年同期均顯著增加。第三季營運活動現金流在營運資金調整前為180萬美元，高於2022年第三季的[160萬美元]。在第12頁，各位可以看到我們每一可支付銀當量盎司的現金成本。第三季與上一季相近，為16.90，且兩季均高於2022年的水準。

Our all-in sustaining cash cost for silver equivalent payable ounce followed a similar trend, although we did see a decrease from the second quarter as it came in at 20 to 69. The increases for both metrics are in line with our messaging on our second quarter call and as a result of lower production from mill recovery challenges and lower grades arising from the planned mine sequence in the underground.

我們每一可支付銀當量盎司的全維持性現金成本也呈現類似趨勢，不過相較第二季有所下降，為20.69。兩項指標的上升與我們在第二季電話會議中的說法一致，主要是因磨礦回收率挑戰導致產量較低，以及地下礦依計畫採礦順序所帶來的品位較低。

On top of this, the Mexican peso appreciated up over 15% in the third quarter compared to the 2022 average. While we've seen an improvement on this front in the third quarter when compared to the second quarter, there has been an impact on our costs as the mature majority of our expenditures are incurred in Mexico with local suppliers, employees and contractors on-site.

此外，墨西哥披索在第三季相較於2022年平均水準升值超過15%。雖然與第二季相比，第三季在此方面有所改善，但仍對成本造成影響，因為我們絕大多數支出是在墨西哥發生，並由當地供應商、員工及現場承包商提供。

We have put a number of measures in place for cost reduction, including lowering haulage rates to match the mill throughput as we have generated a large ore stockpile over the last few months as well as certain administrative and ancillary personnel reductions.

我們已採取多項降低成本的措施，包括下調運輸費率以配合磨礦廠處理量；由於過去幾個月我們累積了大量礦石堆存，並且也進行了部分行政及支援人員的精簡。

Now coming to slide 13, you can see our cash per tonnes processed for the quarter came in above the recent average as well at 5946 on an all-in basis. We were also up from our first two quarters, but we did come in below the 2022 average increases on a per tonnes mill basis are primarily a result of higher mining and haulage rates as we mined over 200,000 tonnes this quarter, which is about 30% higher than our milled tonnes of 154,000 as well, lower ounces produced per tonne contributed to the increased costs as a result of the operational items mentioned before. So far in the fourth quarter, we have seen improvements to both grade and recovery and controlling costs remains a key priority for Avino alongside our growth plans.

接著看第13頁，各位可以看到本季每處理一噸的現金成本也高於近期平均水準，全包基礎為59.46。我們也高於前兩季，但低於2022年的平均水準。以每噸磨礦計算的成本上升，主要是因採礦與運輸費率較高；本季我們開採超過200,000噸，約比我們磨礦處理的154,000噸高出30%。此外，每噸產出的盎司數較低，也因前述營運因素而推升成本。進入第四季以來，我們已看到品位與回收率均有所改善，而在推動成長計畫的同時，成本控管仍是Avino的關鍵優先事項。

At this point, I will now turn it over to Jennifer North Head of Investor Relations for an overview of our Q3, ESG initiatives.

接下來，我將把時間交給投資人關係主管Jennifer North，為各位概述我們第三季的ESG倡議。

Thanks, Nate. And now turning to slide 14. We have listed our recent ESG initiatives for the third quarter of the year continue to build on Venus efforts to incorporate the principles of sustainability and social responsibility. We have added members to the CSR team in Durango, and the department is working to ensure that we continue meaningful conversations with the communities that are close to the mine.

謝謝你，Nate。接著請看第14頁。我們列出了第三季近期的ESG倡議，持續在Avino的努力基礎上，將永續與社會責任原則納入營運。我們在杜蘭戈（Durango）擴編了CSR團隊成員，該部門正致力於確保我們能與礦區周邊社區持續進行有意義的對話。

The activities carried out during the third quarter under the new CSR management team were focused on improving relationships between each of the communities and strengthening the social bond while establishing a new social link between company and community. The activities carried out were as follows in all of the communities, parents were offered summer courses for children age 6 to 12.

在新的CSR管理團隊帶領下，第三季所推動的活動聚焦於改善各社區之間的關係並強化社會連結，同時建立公司與社區之間新的社會連結。所執行的活動如下：在所有社區中，為家長提供6至12歲兒童的暑期課程。

The summer program was developed to encourage and promote healthy ways to manage children. Summer free time courses in workshops were offered in a number of different activities, including soccer arts and crafts, drawing type window and others in total 220 children from the communities of Conoco to Coronado Zaragoza and San Jose Vinod participated in August of in-house medical department conducted its annual first day training for a period of six days with two sessions a day, there were 119 employees from the mine coming from different departments to learn and improve the first date skills as a high percentage of our employees come from the nearby communities.

暑期方案旨在鼓勵並推廣以健康方式陪伴與管理孩子。暑期的自由時間課程以工作坊形式提供多種活動，包括足球、藝術與手作、繪畫、窗戶類型（window type）以及其他項目。總計來自Conoco、Coronado、Zaragoza與San Jose Vinod等社區的220名兒童於8月參與。此外，內部醫務部門進行了為期六天、每天兩場的年度急救訓練，共有來自不同部門的119名礦場員工參加，以學習並提升急救技能，因為我們有相當高比例的員工來自附近社區。

This training also benefits everyone in the adjacent areas. The goal is to ensure that all of our employees have the knowledge and skills necessary to be first responders in the event of an emergency also the team put together several educational pieces to show our management of tailings, how we safely manage a tailings, what dry tailings means as well as the testing process, educational flyers and videos in Spanish and English have been posted to the website and shared in the communities for environmental compliance.

此訓練也讓鄰近地區的所有人受益。目標是確保所有員工具備在緊急事件發生時擔任第一線應變人員所需的知識與技能。此外，團隊也製作了多項教育素材，說明我們如何管理尾礦、如何安全管理尾礦、「乾式尾礦」的意義，以及檢測流程；西班牙文與英文的教育傳單與影片已發布於網站，並在社區中分享，以促進環境合規。

And for educational purposes, water samples were taken at the junior high school in September, together with the residents of NewCo to Coronado community alongside company representatives to show Avino sampling process.

另外，出於教育目的，我們於9月在國中採集水樣，並與NewCo to Coronado社區居民及公司代表一同進行，以展示Avino的採樣流程。

In addition, the company continues with its ongoing community, roadworks and delivery of garbage drums and generally supporting and beneficial ways. In September, the company showed its commitment to the mental health of employees by commemorating world suicide prevention day where talks and support were offered.

此外，公司持續推動社區道路工程、垃圾桶（garbage drums）配送，以及以各種支持且有益的方式投入社區。9月，公司也透過紀念「世界自殺預防日」展現對員工心理健康的承諾，並提供相關宣導與支持。

In addition, we are so pleased with the efforts of the CSR team in Durango as they were recognized for the 2nd year in a row for the ESR. distinction as being a socially responsible company. This designation is a reflection of the passion and dedication of the company and shows that not only do we extract minerals, but we saw knowledge to build a brighter future for generations to come every day. Every action brings us closer to a brighter and sustainable future. The mine is more than a workplace.

此外，我們也非常高興杜蘭戈的CSR團隊之努力，因為他們連續第二年獲得ESR殊榮，表彰其為具社會責任的公司。此一認證反映了公司熱忱與投入，也顯示我們不僅開採礦產，我們也每天播下知識的種子，為世世代代打造更光明的未來。每一個行動都讓我們更接近更光明且永續的未來。礦場不僅是一個工作場所。

It is an example of responsibility and commitment to be in harmony with the environment. One of the top priority because seasonally one of the top priorities for Vinod is to provide jobs to those in the surrounding communities with the goal of fostering generations of enthusiastic and dedicated investors of Avino, we currently have 448 direct jobs, which includes the workers at the mine site and in our Durango offices, this number of jobs would typically translate to three times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area in September, I was fortunate to go to Durango and spend time at site in the offices, talking about our strategic alignment goals that span across the company and communicating how we can work towards shared goals and vision.

它也是一個在與環境和諧共處下展現責任與承諾的典範。由於季節性因素，Vinod的首要優先事項之一，是為周邊社區提供就業機會，目標是培育一代又一代對Avino充滿熱情且投入的投資人。我們目前有448個直接工作機會，包含礦區現場與杜蘭戈辦公室的員工；此一就業數通常可帶動周邊社區與杜蘭戈地區在服務、顧問與供應商方面約三倍數量的間接就業。9月我有幸前往杜蘭戈，並在現場與辦公室停留，討論我們橫跨全公司的策略一致性目標，並溝通我們如何朝共同目標與願景努力。

We have an action plan to inform, educate and support all employees and community members to become ambassadors of Zeno 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 a strong and sustainable future.

我們已制定行動計畫，以告知、教育並支持所有員工與社區成員成為 Zeno 的大使；當社區與公司目標一致時，我們都將受益。Avino 的成功取決於其人才、獲利的營運、社區支持，以及強健且可持續的未來。

I will now turn it back over to David to continue on with the presentation, providing our plans for the coming quarter. David?

我現在把時間交還給 David，請他繼續簡報並說明我們下一季的計畫。David？

Thanks, Jen. Moving to slide 15, you can see our plans for the remainder of 2023. We are now well into the final quarter, and the pre-feasibility study on the oxide tailings project is well underway. We expect to present the results to the market in Q1 2024.

謝謝，Jen。請看第 15 頁投影片，您可以看到我們 2023 年剩餘期間的計畫。我們已進入最後一季，氧化物尾礦專案的初步可行性研究正在順利進行中。我們預期在 2024 年第一季向市場公布結果。

We are also focused on our plans for the Gloria and other dance here, veins at La Preciosa with Community Engagement ongoing as we ready ourselves to begin development work equipment is being sourced and the environmental permit application has been prepared and we are finalizing it for submission. As we have mentioned previously, we are in talks for the social blessing with the hero group, and this is some something that takes time and patience. We will let the market know when this is finalized. And in the meantime, we continue to negotiate in good faith, so we may move forward with this with our plans.

如先前所提，我們也專注於 Gloria 以及 La Preciosa 其他礦脈的規劃，並持續進行社區參與；在我們準備開始開發工作之際，設備正在採購中，環境許可申請文件已備妥，並正完成最後定稿以便提交。正如我們先前提到的，我們正就「社會祝福」與 hero 團體進行洽談，而這需要時間與耐心。我們會在定案後通知市場。同時，我們也持續以誠信善意進行協商，以便依計畫推進。

As mentioned earlier, our drilling program for 2023 is complete, and we will be reviewing the results to determine next steps for 2024.

如前所述，我們 2023 年的鑽探計畫已完成，接下來將檢視結果，以決定 2024 年的下一步。

Lastly, the main goal is to replenish the treasury from cash flow generation from the Avino mine as we look forward to the future development of La Preciosa and the oxide tailings projects.

最後，主要目標是透過 Avino 礦山的現金流創造來補充公司資金庫存，以迎接 La Preciosa 與氧化物尾礦專案未來的開發。

On slide 16, we want to reemphasize the company's plans for growth of three assets within 20 kilometer footprint totaling hundreds of millions of silver equivalent ounces.

在第 16 頁投影片，我們想再次強調公司在 20 公里範圍內三項資產的成長計畫，合計擁有數億盎司白銀當量。

On the same area, we are operating a mill complex, which is currently producing from the Avino Mine. Additional access to water power and tailings storage, all ingredients to grow organically without the major capital investment required. That would be that would expect if you were starting from scratch as you can see on this slide. Our goal is to scale up by 2028 through the production from these three assets.

在同一區域內，我們營運一座選礦廠園區，目前由 Avino 礦供料生產。此外，我們還可取得水源、電力與尾礦儲存空間——這些都是在不需要重大資本投入的情況下實現有機成長的關鍵要素。若從零開始建置，通常會需要如本頁所示的龐大資本。我們的目標是透過這三項資產的產量，在 2028 年前擴大規模。

Lastly, please move to slide 17, where we present our continued initiatives for growth, which are development, production and optimization of La Presse, the Elsa Tailings project pre-feasibility study and eventual construction decisions, developing next steps for exploration and drilling evaluating recommendations made by renowned structural geologist. We would now like to move the call to the question and answer portion. Operator?

最後，請移至第 17 頁投影片，我們在此呈現持續推動的成長措施，包括：La Presse 的開發、生產與最佳化；Elsa 尾礦專案的初步可行性研究及最終的建設決策；制定勘探與鑽探的下一步；並評估知名構造地質學家提出的建議。我們現在想把電話會議交給問答環節。接線員？

(Operator Instructions) Our first question is from Heiko Ihle with H.C. Wainwright. Please go ahead.

（接線員指示）我們的第一個問題來自 H.C. Wainwright 的 Heiko Ihle。請發問。

A lot of regulatory noise.

很多監管方面的雜音。

Good morning, Ihle. Thanks.

早安，Ihle。謝謝。

Morning I go we will of course, also for a bit. I mean, in our view, that asset should really help the growth of the firm and the and also the longer term, really given commodity prices, natural political quality, logistics, general market sentiment that FDA has really heard of high loan to be an asset shifted in any way over the past three months.

早安。我們當然也會談一下。我是說，在我們看來，該資產確實應該有助於公司成長，無論是中期或長期；尤其考量商品價格、政治環境、物流以及整體市場情緒等因素。想請問，過去三個月你們對該資產在四月的時程是否有任何調整？

And then just capital wise, how much cash flow do you anticipate using this site in calendar 2014?

另外就資本面而言，你們預期在 2014 年曆年會為這個場址動用多少現金流？

Sorry, Michael, you're not coming in very clear.

抱歉，Michael，你的聲音不太清楚。

I don't think can you repeat the questions?

我想我們沒聽清楚，你可以重複一下問題嗎？

It's better that way. But I don't think you got perfect formula size with some form of pressure also for a bit. I mean, in our view, the asset should really help growth of the firm and the intermediate and also the longer term given current commodity pricing, Mexico, Mexican political climate and just general market sentiment as your April timeline for the asset shifted in any way over the past few months.

這樣比較好。但我不確定你們是否聽到完整問題。我再問一次：在我們看來，該資產應能推動公司中期與長期成長；考量目前商品價格、墨西哥政治氛圍以及整體市場情緒，你們先前提到四月的時程在過去幾個月是否有任何變動？

And building on that question, just capital wise, how much cash flow do you anticipate using for the site in calendar 24?

延續這個問題，就資本面而言，你們預期在 2024 年曆年會為該場址動用多少現金流？

Well, first of all, the grade that we're going to be mining there is much higher than what we're mining now. So we're excited about that time. Line basically hasn't started until we get the blessing of the heroes, which were we think we're in the 11th inning. We've gone back and forth. They've been discussing at their assemblies so we think possibly before the end of the year, we could have an agreement in place and there's aboveground stockpiles that we can start processing right away.

好的，首先，我們在那裡將要開採的品位遠高於目前正在開採的品位，所以我們對此很興奮。時程基本上要等到我們取得 hero 團體的祝福後才會正式啟動；我們認為目前已接近最後關頭。我們來回溝通，他們也在其大會中討論，因此我們認為可能在年底前就能達成協議。此外，地表上已有堆存礦石，我們可以立即開始處理。

Yes.

是的。

On the on the cash flow side of things. Obviously, as David mentioned, we expect to generate a lot of cash flow from our BCOs and some. But as far as the development and paying for that. And one of the nice things is we will be developing in ore as we start to let us use as we follow our mine plan. But as well, the up with Vinod. We do project to generate cash flow in Q4 and continue into 2024.

就現金流方面而言，正如 David 提到的，我們預期將從我們的 BCOs 等項目產生大量現金流。至於開發與資金支付，其中一個優點是我們會依照礦山計畫，在推進開發的同時逐步開採礦石並加以利用。此外，配合 Avino，我們預計在第四季產生現金流，並延續到 2024 年。

So we'll have some cash flow to invest in the initial the initial mine plan is on the Gloria vein, which is really close to the surface. So it's not going to be very expensive and the aboveground stockpiles will pay for a lot of it enough.

因此我們會有部分現金流可投入。初期礦山計畫將聚焦 Gloria 礦脈，該礦脈非常接近地表，所以成本不會太高；而地表堆存礦石也將支付其中很大一部分費用。

And then on the oxide tailings project seems to be moving along quite well, not sure if you can disclose any of this really, but have there been any impact positive negative anything compared to what you had previously anticipated for the assets? I mean, anything that you've seen as the study is getting together are?

另外，氧化物尾礦專案看起來進展相當順利。我不確定你是否能透露，但相較於你們先前對該資產的預期，研究推進過程中是否出現任何正面或負面的影響或變化？也就是說，隨著研究逐步成形，你們看到的情況是？

Yes, Heiko, thank you for the question on a couple of things to note, actually, we have a lot of construction experience. That's something that we've done well with the expansion in circuit for with the dry stack tailings. And that experience directly translates to accurate predictions and pricing for this plant. And that's going to be lower cost than typically what would an engineering company with spec for this so we feel that we'll be accurate with our construction costs based on our experience and the big changes we went from looking at a heap leach to Dynamic Leaching, which is contains.

是的，Heiko，謝謝你的問題。有幾點值得注意：其實我們有很多建設經驗，這是我們在擴建流程、以及乾式堆置尾礦系統時累積的成果。這些經驗可直接轉化為對本廠建置成本與價格的精準預估；而且我們的成本會低於一般工程公司通常會估列的水準。因此，基於我們的經驗，我們對建設成本的估算會更準確。另一個重大變化是，我們從原先評估的堆浸（heap leach）改為動態浸出（Dynamic Leaching），其包含……

Yeah. So I mean, if I just wanted to maybe I've summarized the changes that we've seen when we did that drilling, we also found a lot more material. We increased our resource significantly, and that was updated in the resource. And certainly we'll have reserves that come out of this pre-feasibility study and that's that will be forthcoming. I can't say too much on that, but that would be a big, a big change, as David mentioned, the change in process from heap leach to Dynamic Leaching. And then finally, our construction experience to you really are dialing accurate costs that are lower than industry average.

是的。如果我簡要總結一下我們在鑽探後看到的變化：我們也發現了更多的物料，資源量大幅增加，並已在資源更新中反映。當然，這份初步可行性研究也會產出可採儲量（reserves），相關內容將在後續公布；我現在不能說太多，但這會是一個很大的變化。正如 David 提到的，製程從堆浸改為動態浸出；最後，我們的建設經驗讓我們能夠把成本估得更精準，而且低於產業平均。

There are no valuation or as part of my questions related to things in the future, that's by design and not a coincidence because I think the future potential is quite large. And with that, I'll go back in queue.

我的問題中沒有涉及估值或未來事項，這是刻意安排而非巧合，因為我認為未來潛力相當大。那我回到隊列中。

Thank you very much.

非常感謝。

The next question is from Jacob Sekelsky with Alliance Global Partners. Please go ahead.

下一個問題來自 Alliance Global Partners 的 Jacob Sekelsky。請發問。

Hey, David may have been so impressed for taking my questions project. So it's just starting from a high level. I mean, the strength of the peso is something negatively impacted producers across the board in Mexico this quarter. I was just wondering if you can touch on that in half it's a cost and maybe on any hedging programs you have or you plan to engage in going forward?

嗨，David，謝謝你回答我的問題。先從較高層次來看，本季披索走強對墨西哥各家生產商普遍造成負面影響。我想請你談談這對你們成本的影響程度，以及你們目前是否有任何避險計畫，或未來是否打算採取避險？

Yes, I heard Jack Nathan here. So obviously you can see across all the producers in Mexico, the impact this has had even the developers or anyone really. So this is not something we didn't see this in the second quarter as well, probably worse than the second quarter actually but then there's been a little bit of an improved third quarter.

是的，我是 Jack Nathan。很明顯你可以看到，墨西哥所有生產商——甚至開發商或任何相關業者——都受到這個影響。因此這不是我們獨有的情況；我們在第二季也看到這點，實際上可能比第二季更嚴重，但第三季已有些許改善。

And so we're actively managing kind of our foreign exchange rates, especially because know we have we pride ourselves in spending a lot of money in pesos because we're with local contractors and suppliers, and we have a 100% Mexican labor force down at site. And so that obviously is something that does have a direct impact on us as far as hedging from and programs we do monitor and we are continuing to track in our projections for the peso, a lot of sentiment is that it will back off.

因此我們正積極管理外匯風險，特別是因為我們以大量披索支出為榮——我們使用在地承包商與供應商，且現場勞動力 100% 為墨西哥籍。這當然會對我們造成直接影響。至於避險與相關方案，我們確實有在監控，並持續在我們對披索的預測中追蹤；市場上很多情緒認為它會回落。

But having said that, when we're going through our budget process for next year, we'll be looking at some alternatives for managing the pace of kind of hedging being one.

不過話說回來，當我們進行明年預算編製流程時，我們會評估一些替代方案，其中之一就是管理避險節奏。

Okay. That's helpful. And then just more of a housekeeping item. So the CapEx was just under $2 million in Q3. Is that sort of a baseline level we should expect going forward heading into next year? Or do you have any larger sustaining capital items that you see popping up over the next year?

好的。這很有幫助。接著只是比較偏行政性的問題：第三季的資本支出（CapEx）略低於200萬美元。這是否算是一個我們往後、進入明年時可以預期的基準水準？還是你們看到未來一年會出現一些較大的維持性資本項目？

And for us again, Nathan here so for Q4, probably fairly light on the lease, ideally a bit lower. We do have some larger capital maintenance items. We have to do some overhauls of some equipment that will be likely in 2024.

就我們這邊來說，我再補充一下，我是Nathan。第四季在租賃方面可能會相當輕，理想情況下會再低一些。我們確實有一些較大的資本維護項目，可能在2024年需要對部分設備進行大修。

But also looking towards La Preciosa, which, as you noted, isn't exactly sustaining capital, that's growth capital for us we have acquired some equipment for that, but we will need more and as well, obviously, some of the cash flow generated from Avino is earmarked for development.

另外也會著眼於La Preciosa；如你所提，這不完全是維持性資本，對我們而言是成長資本。我們已為此購置了一些設備，但還需要更多；同時，顯然由Avino產生的部分現金流也已被指定用於開發。

We've got the most important piece equipment of new jumbo.

我們已經有最重要的一項設備——新的jumbo鑽車。

Yes, yes, we are driving the ramp so we have gotten this equipment ahead of time, stuff that can be used to be, you know, in the meantime, but can be transferred over to leprosy also as soon as we get the agreement.

是的，是的，我們正在推進斜坡道（ramp），所以我們提前把這些設備買到位；這些設備在此期間也可以先使用，但一旦我們拿到協議，也能立即轉移到La Preciosa那邊。

Okay. Makes sense. That's all for me.

好的。合理。我這邊就這些。

Thanks again. Thanks, Jake.

再次感謝。謝謝你，Jake。

Next question is from Matthew O'Keefe with Cantor Fitzgerald. Please go ahead.

下一個問題來自Cantor Fitzgerald的Matthew O'Keefe。請發問。

Thanks, operator. Good morning and thanks for taking my call. Just a couple of operational questions for you. First up on the you mentioned you hold out spectrum 270,000 tons, 27,000 times to service, about 30% more than you milled on. What's the nature of those tons are they like low grade going to a low-grade stockpile? Or are you building out a stockpile? Is it reflecting increased efficiency from the mining side? Could you talk about that a little bit?

謝謝主持人。早安，也謝謝接聽我的提問。我有幾個營運方面的問題。首先，你們提到你們留存了約270,000噸（約27萬噸）的礦石，約比你們實際磨礦處理量多了約30%。這些噸數的性質是什麼？是像低品位、要進低品位堆場的料嗎？還是你們在建立堆場？這是否反映採礦端效率提升？能否談一下？

Yeah. Thanks so much, Matt. That's a great question we have. And so if you remember last quarter, we improved our ramp conditions on and that's dramatically improved. The ability to haul from underground. So we have been hauling the mine's been outperforming the mill, so to speak, and that's building a stockpile, and that would be actually high-grade stockpiles.

好的，非常感謝你，Matt。這是個很好的問題。如果你還記得上一季，我們改善了斜坡道（ramp）的狀況，而這大幅提升了地下運輸的能力。因此我們一直在把礦石往外運，某種程度上採礦端的產出超過了選廠的處理能力，於是形成了堆場；而且那其實是高品位堆場。

The issue with some of this material and say the issue or the challenge with that is some of those boulders are quite large. So we needed a rock breaker that is now on site to break some of that material. So in Q4, we look to be slowing haulage a little bit to it to draw down on those stockpiles, which will help improve our costs certainly on as well as see some very good grades that go through the mill is what we're working in right now.

這些物料的問題——或者說挑戰——在於其中一些巨石塊相當大。因此我們需要一台碎石機（rock breaker），現在已經到場，用來破碎部分物料。所以在第四季，我們預期會稍微放慢出礦運輸，以便消化這些堆場存量；這將有助於改善成本，同時也能讓非常好的品位進入磨礦流程，這就是我們目前在做的。

Okay. That much good. And then just another question on the mill itself. I know you've made some modifications there, but we know last couple of quarters we've seen recoveries trend down both for silver and copper. Can you discuss that a little bit? And can we expect to see that and those recoveries move back up?

了解，這樣很好。接著再問一個關於選廠本身的問題。我知道你們做了一些改造，但我們看到過去幾季銀與銅的回收率都有下滑。你們能談談原因嗎？我們是否可以預期回收率會回升？

Yes.

可以。

I think the simple answer is yes. I think we can expect those recoveries and grades to move back up. And the reasoning for the decrease in grade is we didn't have a piece of the rock breaker on site to break some of the larger oxidized material.

我想簡單的答案是可以。我們預期回收率與品位會回升。品位下降的原因在於：我們現場缺少碎石機的一個部件，無法破碎一些較大的氧化物料。

And as a result, we had a higher percentage of the fine material was oxidized. So that has a twofold effect, one, the grade's a little bit lower and then the recovery rates are a little bit lower. And you're when you're starting with the lower grade, even if you have the same tailings grade, your recovery ends getting hit a little bit.

因此，細粒物料中氧化的比例更高。這會造成兩個影響：第一，品位會稍微低一些；第二，回收率也會稍微低一些。而當你起始品位較低時，即便尾礦品位相同，你的回收率計算結果也會受到一些衝擊。

So it's kind of that the double whammy, the nice side, the nice or the fact is that we are now through that material. We have the rock breaker. We're now breaking those larger builders that have the higher grade material and we're already seeing the higher recovery and greater demand.

所以這有點像雙重打擊。不過好的一面是：我們現在已經處理完那批物料；碎石機也到位了。我們正在破碎那些含有較高品位物料的大塊岩石，而且我們已經看到回收率提高、品位也更好。

And the automation has worked well. It's just a few key pieces of equipment were delayed in arriving that affected certain circuits.

自動化運作得很好；只是有幾個關鍵設備到貨延遲，影響了某些回路。

Okay. And is that oversized material a comment that you've had or is that a function of different or different are or you need to work a bit more on some of your some of your blasting hasn't had a material effect?

了解。那這種超大塊物料是你們一直以來就有的狀況，還是因為不同的礦石類型？或者你們需要在爆破方面再調整一些——爆破是否對物料有實質影響？

But yes, that's a fair question.

是的，這是個合理的問題。

No. As far as blasting, we have we have a lot of rock mechanics consultants come in and we've kind of optimized the blasting. It's kind of the nature of the ET. ore body is that sometimes you get some relatively large boulders in different sections.

不，就爆破而言，我們有很多岩石力學顧問進場，我們也已經把爆破做了最佳化。這比較是ET礦體的特性：在不同區段，有時會出現相對較大的巨石塊。

And so you just you need a you need a rock breaker on surface to send some of that through the Stockwork systems when they place the shock goes down where the fractures are and it just happens, we've had experts on-site, as you said, and we've optimized it as best we can so we just get some slots as to David's point.

所以你需要在地表配置碎石機，才能把其中一些物料送進Stockwork系統；當爆破震動傳遞下去、沿著裂隙作用時，就會發生這種情況。我們如你所說已經有專家在現場，也盡可能最佳化了，所以仍會出現一些大塊料，正如David提到的。

Good. That's it for me. Thanks. Thanks for filling in those gaps.

很好。我這邊就這些。謝謝，也謝謝你補足這些資訊。

Appreciate it.

感謝。

Thank you.

謝謝。

(Operator Instructions) Richard Mangold, a private investor. Please go ahead, sir.

（主持人指示）下一位是私人投資人Richard Mangold。先生，請發問。

Good morning, fellow. Thank you for taking my call. I have a quick question in reference to wanting more color on the third or Helio group and what happens if they choose not to sign, does it go to arbitration or what actually happens?

各位早安。謝謝接聽我的電話。我有個簡短問題，想更了解第三方或Helio集團的情況；如果他們選擇不簽署，會進入仲裁嗎？實際上會發生什麼？

Well, we're not ahead of that age as well. We're in the final stage negotiations with them or actions by Sam.

嗯，我們也還沒走到那一步。我們正與他們進行最後階段的談判，或由Sam採取行動。

Pardon me, Ms. China, ongoing amendments to our bank EPS figure funding to pay for getting our snowpack getting off now?

不好意思，Ms. China，我們銀行EPS數字的資金安排仍在持續修訂，以支付把我們的snowpack移除、現在要做的事情嗎？

Yes, that benefit for high to.

是的，那對高也有好處。

Yes. So we're in the latter stages of negotiations and they want the agreement in place so it's just fine tuning it. So it's eminent. But I guess my point is if they choose not to sign what happens they want to sign, they want the economic benefit so it's happening. It's moving forward smoothly.

是的。所以我們已進入談判後期，他們希望把協議落實，所以只是做一些細部調整。因此已經迫在眉睫。不過我想說的是：如果他們選擇不簽會怎樣——他們是想簽的，他們想要經濟利益，所以這會發生，會順利往前推進。

Okay. Thank you.

好的，謝謝你。

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

問答環節到此結束。我想把電話交回給David Wolfin，請他做結語。

Well, thank you, everyone, for joining us on this call today. We're looking forward to a better a healthy Q4. So stay tuned for some.

好的，謝謝各位今天加入我們的電話會議。我們期待第四季會更好、更健康。所以請持續關注我們接下來的一些——

So news from us, we will have the pre-feasibility study completed in Q4. So hopefully we can get that news out to you before year end. If not, it'll be early in January. So thanks again and have a great day.

我們的消息：我們將在第四季完成預可行性研究（pre-feasibility study）。希望能在年底前把這個消息發布給各位；如果來不及，就會在一月初。再次感謝，祝各位有美好的一天。

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

今天的電話會議到此結束。您可以掛斷電話線。感謝您的參與，祝您有愉快的一天。