Avino Silver & Gold Mines Ltd (ASM) 2024 Q1 法說會逐字稿

Good day and welcome to the Avino Silver & Gold Mines Limited first quarter 2024 financial results conference call. (Operator Instructions) I would now like to turn the conference over to Jennifer North Head of Investor Relations. Please go ahead, Mam.

各位好，歡迎參加 Avino Silver & Gold Mines Limited 2024 年第一季財務業績電話會議。(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，女士。

Thank you, operator. Good morning, everyone, and welcome to the Avino Silver & Gold Mines Limited first quarter 2024 financial results conference call and webcast. To join this webcast and conference call there's a link in our news release dated May 1, 2024, and in our news release of yesterday's date, which can be found on our website under news 2024. In addition, a link can be found on the homepage of the Avino website.

謝謝，接線員。各位早安，歡迎參加 Avino Silver & Gold Mines Limited 2024 年第一季財務業績電話會議與網路直播。如欲加入本次網路直播與電話會議，我們於 2024 年 5 月 1 日發布的新聞稿，以及昨日發布的新聞稿中均附有連結，可在我們網站的 2024 年新聞區找到。此外，Avino 網站首頁也可找到連結。

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.

今天參與電話會議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 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 as the full statements are available on Avino's profile on SEDAR plus and on EDGAR.

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的任何義務。如需更多資訊，請參閱我們在昨日新聞稿中、與本次電話會議相關之簡報內的詳細警示說明。另請注意，完整財務報表與管理階層討論與分析（MD&A）現已公布於我們網站的 Investors（投資人）分頁下，點選 financial statements（財務報表）；同時完整報表亦可於 SEDAR+ 上 Avino 的公司檔案以及 EDGAR 上取得。

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 from this conference call, webcast will be available on our website. Also, please note that all figures stated are in US dollars unless otherwise noted.

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。重播資訊以及本次電話會議與網路直播的簡報投影片將公布於我們的網站。另外請注意，除非另有說明，所有數字均以美元計價。

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

謝謝。現在我把電話會議交給 Avino 總裁兼執行長 David Wolfin。David？

Thanks, Jen. Good morning, everyone. Welcome to Avino's Q1 2024 financial results conference call and webcast, we will cover the highlights of our financial and operating performance, and then we will go over the work that we are currently performing followed by a Q&A. We'll start with the discussion of operations, and then I will turn it over to Nathan Harte, Avino's, CFO, to discuss the financial performance for this period. And then Jennifer North, our Head of Investor Relations, will present an overview of Q1 ESG initiatives.

謝謝，Jen。各位早安。歡迎參加 Avino 2024 年第一季財務業績電話會議與網路直播。我們將回顧財務與營運表現重點，接著說明目前正在進行的工作，最後進入問答。我們將先討論營運，之後我會把時間交給 Avino 財務長 Nathan Harte，說明本期間的財務表現。接著，我們的投資人關係主管 Jennifer North 將概述第一季的 ESG（環境、社會與公司治理）倡議。

Please turn to slide 5. As we go through the production results. Our Q1 production results were released in mid April and are as follows. Silver equivalent production was 629,000 ounces, silver production was 251,000 ounces, copper production was 1.3 million pounds, gold production was just under 1,800 ounces. Mill throughput was 170,000 tonnes.

請翻到第 5 張投影片。我們將回顧產量結果。我們的第一季產量結果已於 4 月中旬發布，內容如下：白銀當量產量為 629,000 盎司，白銀產量為 251,000 盎司，銅產量為 130 萬磅，黃金產量略低於 1,800 盎司。磨礦廠處理量為 170,000 公噸。

2024 has started strong and we are on track to meet our production target for the year. In addition, our first quarter production results on notable improvement to mill throughput of 18% compared to Q4 2023, which contributed to positive overall results. Positive developments for Q2 production include the processing of La Preciosa stockpile material through the nose mill circuit number two, supply chain delays that started with the pandemic are improving.

2024 年開局強勁，我們正按計畫達成全年產量目標。此外，第一季產量結果顯示磨礦廠處理量較 2023 年第四季提升 18%，帶動整體結果轉佳。第二季產量的正面進展包括：透過 2 號磨礦迴路處理 La Preciosa 的堆存礦料；自疫情以來的供應鏈延遲情況正在改善。

In addition, we are currently mining at level 15 at Elena Tolosa, which is expected to yield higher silver grades. Our five year plan aims to increase production levels from 2.5 million to 2.8 million ounces of silver equivalent in 2024 to between 8 million and 10 million ounces of silver equivalent by 2029.

此外，我們目前在 Elena Tolosa 的第 15 水平進行採礦，預期可產出更高的白銀品位。我們的五年計畫目標是將白銀當量產量由 2024 年的 250 萬至 280 萬盎司，提高至 2029 年的 800 萬至 1,000 萬盎司白銀當量。

Continuing on to slide 6, we'll review Q1 milestones and ongoing initiatives. Beginning with La Preciosa we'd like to emphasize that it represents a key pillar in our transformational growth strategy and host a large endowment of silver and gold resources, which we expect to process for years to come. In early January, a long-term land use agreement was signed in January with the local community for the development of La Preciosa.

接著看第 6 張投影片，我們將回顧第一季里程碑與持續推動的計畫。首先是 La Preciosa。我們要強調它是我們轉型成長策略的關鍵支柱，並擁有大量白銀與黃金資源賦存，我們預期未來多年都將持續處理。1 月初，我們與當地社區簽署了 La Preciosa 開發的長期土地使用協議。

This signals the beginning of a new era for Avino and the neighboring communities around Preciosa. Also during the quarter, we were also able to commence hauling of old stockpiles from La Preciosa to our mill at Avino for processing. We have submitted the application for environmental permit and we have been in communication with them.

這標誌著 Avino 與 Preciosa 周邊鄰近社區新時代的開始。此外，在本季度期間，我們也得以開始將 La Preciosa 的舊堆存礦料運送至 Avino 的磨礦廠進行處理。我們已提交環境許可申請，並一直與相關單位保持溝通。

We anticipate that the permit will be issued in the coming year. After we are in receipt of the environmental permit, a further application for a permit will be submitted, which is required to begin construction of the portal haulage ramp and mining of haulage. We anticipate receiving these permits in the coming year.

我們預期該許可將於未來一年內核發。在取得環境許可後，我們將再提交另一項許可申請，該許可為開始建設坑口運輸斜坡道以及進行運輸採礦作業所必需。我們預期將於未來一年內取得這些許可。

Next, I will briefly touch on the pre-feasibility study on the oxide tailings project, which was completed and then announced in early February. We went through the pre-feasibility study on our Q4 call and year end call, and I won't spend too much time on this, I will highlight the key metrics. If you would like more information, please visit the website where the Information and Technical Report are available.

接下來，我將簡要提及氧化尾礦專案的預可行性研究（PFS），該研究已完成並於 2 月初對外公告。我們已在第四季電話會議與年終電話會議中討論過該預可行性研究，因此我不會在此花太多時間，只會強調關鍵指標。如需更多資訊，請造訪我們的網站，資訊與技術報告均可取得。

The completion of the pre-feasibility study was an important key milestone for Avino and outline the project's economic parameters, expected costs and potential revenues offering a road map for future implementation. Highlights of the PFS include a net present value of USD98 million pretax and USD61 million post tax at a 5% discount rate and an IRR of 35% pretax and 26% post-tax.

完成預可行性研究是 Avino 的一項重要里程碑，並勾勒出專案的經濟參數、預期成本與潛在收入，為未來落地實施提供路線圖。PFS 重點包括：以 5% 折現率計算，稅前淨現值（NPV）為 9,800 萬美元、稅後淨現值為 6,100 萬美元；內部報酬率（IRR）稅前為 35%、稅後為 26%。

The study also highlights proven and probable mineral reserves, a first Avino long history of 6.7 million tonnes of silver and gold graded 55 grams and 0.47 grams respectfully.

該研究亦強調已探明及已概略礦產儲量；這是 Avino 悠久歷史中的首次，包含 670 萬公噸的含銀與含金礦石，品位分別為 55 克與 0.47 克。

Next step includes community engagement and environmental impact studies. We are committed to prudent planning and strategic growth, and we will use the study to make informed decisions about project execution. Currently, the Preciosa are top priority.

下一步包括社區參與以及環境影響研究。我們致力於審慎規劃與策略性成長，並將運用該研究就專案執行作出有依據的決策。目前，La Preciosa 為最優先事項。

At this time I will now hand it over to Nathan Harte, Avino CFO, to present Avino's Q1 2024 financial results. Nathan?

此時我將把時間交給 Avino 財務長 Nathan Harte，為各位說明 Avino 2024 年第一季的財務結果。Nathan？

Thank you, David. It's my pleasure to be on the call and I would like to welcome everyone who has joined us and viewing our presentation today.

謝謝你，David。很高興能參與本次電話會議，也歡迎今天加入我們並觀看簡報的各位。

Turning to slide 7 now for a summary of the key financial highlights for the first quarter. The first quarter built off the end-of-the-year results with revenues on budget and improved costs, translating to solid operating margins from the Avino Mine.

現在請看第 7 頁投影片，這裡總結第一季的主要財務亮點。第一季延續年末成果，營收符合預算且成本改善，使 Avino 礦場的營運利潤率穩健。

We had positive net income of $0.6 million and adjusted earnings came in at $2.1 million, or $0.02 per share. Both improved over previous quarters in 2023. Per ounce metrics improved from the 2023 average with cash costs and all-in sustaining cash costs decreasing. And we continued to generate additional operating cash flows with $2.3 million generated after operating and administrative expense.

我們錄得 60 萬美元的正淨利，而調整後盈餘為 210 萬美元，或每股 0.02 美元。兩者皆較 2023 年前幾季有所改善。每盎司指標較 2023 年平均值提升，現金成本與全維持性現金成本均下降。此外，我們持續產生額外的營運現金流，在扣除營運與管理費用後產生 230 萬美元。

As highlighted at the end of the year, our working capital position has improved significantly since earlier in 2023, with the balance at just under $10 million at quarter end or almost double where we were 12 months.

如同年末所強調，我們的營運資金部位自 2023 年初以來已顯著改善，季末餘額接近 1,000 萬美元，約為 12 個月前的將近兩倍。

Coming to slide 8, I will walk you through the details of our financial results, some of which I already touched on in the highlights. Revenues came in at $12.4 million, up significantly from $9.8 million in Q1 of 2023 with 26% growth and about on pace with last quarter's revenues of $12.5 million.

接著看第 8 頁投影片，我將帶各位了解財務結果的細節，其中部分我已在亮點中提及。營收為 1,240 萬美元，較 2023 年第一季的 980 萬美元大幅增加，成長 26%，也大致與上一季 1,250 萬美元的營收持平。

Avino generated gross profits of $2.3 million for the quarter, including non-cash depreciation and depletion compared to $1.9 million in Q1 of 2023. The increase is a result of higher sales volumes and higher realized silver prices when compared to Q1 of last year. Increases in revenues were offset by the impact of the Mexican peso, which did begin to strengthen during Q2 of 2023. On a cash basis, gross profit was $3.1 million and represented a 26% cash operation.

本季 Avino 的毛利為 230 萬美元（包含非現金的折舊與耗竭），相較 2023 年第一季為 190 萬美元。增加主要來自更高的銷售量，以及相較去年第一季更高的白銀實現價格。營收增加部分被墨西哥披索的影響所抵銷；披索自 2023 年第二季開始走強。以現金基礎計算，毛利為 310 萬美元，代表 26% 的現金營運利潤率。

Compared to Q4 '2023, gross profit did decrease slightly but was fairly flat on a cash basis. Avino reported net income after taxes of $0.6 million for Q1 compared to a loss of $0.4 million in Q1 of 2023 which is a positive swing of $1 million. Earnings per share came in at just under $0.01 for the quarter. EBITDA was $1.7 million for the quarter showing meaningful increases from both Q1 and Q4 2023, which were $0.3 million and $1.1 million, respectively.

與 2023 年第四季相比，毛利略有下降，但以現金基礎來看大致持平。Avino 2024 年第一季稅後淨利為 60 萬美元，相較 2023 年第一季虧損 40 萬美元，正向變動 100 萬美元。本季每股盈餘略低於 0.01 美元。本季 EBITDA 為 170 萬美元，較 2023 年第一季與第四季（分別為 30 萬美元與 110 萬美元）均有顯著提升。

Adjusted earnings paints a similar picture with improvements on the quarter compared to the rest of 2023 with $2.1 million or $0.02 per share generated in Q1 of 2024. Cash flow from operations for the first quarter was $1.6 million before working capital adjustments compared to $1.2 million in Q1 of 2023 and $2.2 million in Q4.

調整後盈餘呈現相似趨勢：相較 2023 年其餘季度，本季有所改善；2024 年第一季產生 210 萬美元，或每股 0.02 美元。第一季營運活動現金流（未計入營運資金調整前）為 160 萬美元，相較 2023 年第一季為 120 萬美元、2023 年第四季為 220 萬美元。

After working capital adjustments, cash flow from operations generated in the first quarter was $2.3 million as noted on the previous slide. As you can see, we were free cash flow positive for the first quarter since 2022, a testament to cost management to company-wide. We are looking to build off this quarter into the rest of the year, especially with positive movements in all three metals being produced from the Avino mine that came subsequent to the end of the first quarter.

在營運資金調整後，第一季營運活動現金流為 230 萬美元，如前一頁投影片所示。如各位所見，我們自 2022 年以來首次在第一季達成自由現金流為正，這證明了公司整體的成本管理成效。我們希望以本季為基礎延續至今年其餘時間，尤其是在第一季結束後，Avino 礦場所生產的三種金屬價格皆出現正向走勢。

Here on slide 9, you can see our cash cost per silver equivalent payable ounce for the first quarter showed meaningful improvement coming in at under $15 at $14.89. As you can see on the chart this was our lowest quarter for the trailing 12 months and lower than the average for 2023, which was $15.61. All-in sustaining cash costs per silver equivalent payable ounce improved further coming in at $20.23, again, our lowest quarter for the trailing 12 months and lower than the 2023 the average of $21.86.

在第 9 頁投影片中，各位可看到第一季每可付銀當量盎司的現金成本顯著改善，降至 15 美元以下，為 14.89 美元。如圖表所示，這是過去 12 個月中最低的季度水準，也低於 2023 年平均的 15.61 美元。每可付銀當量盎司的全維持性現金成本進一步改善至 20.23 美元，同樣是過去 12 個月最低的季度水準，且低於 2023 年平均的 21.86 美元。

Coming to slide 10, you can see our cash cost per tonne processed for the quarter came in slightly above the yearly average at $53.64 per tonne. However, this was much improved on Q3 and Q4 costs. All-in sustaining cash cost per tonne processed tell a similar story for the quarter, although this one did come in below the yearly average of $74.16 and well below the previous two quarters.

接著看第 10 頁投影片，本季每處理一噸的現金成本為每噸 53.64 美元，略高於全年平均。然而，相較第三季與第四季的成本已有大幅改善。每處理一噸的全維持性現金成本亦呈現相同趨勢；本季低於全年平均的 74.16 美元，且明顯低於前兩季。

The Mexican peso continues to hold strength, which has impacted our cost structure as the majority of our expenditures are incurred in Mexico, local suppliers, employees and contractors. As we highlighted on our year-end earnings call, we had put in a number of measures in place for cost reduction, which included lowering haulage rates to match mill throughput as we had generated a large or stockpile over the previous few months.

墨西哥披索持續維持強勢，影響了我們的成本結構，因為我們的大部分支出發生在墨西哥，包括當地供應商、員工與承包商。如同我們在年終財報電話會議中所提到，我們已採取多項降低成本的措施，其中包括下調運輸費率以配合磨礦廠的處理量，因為在前幾個月我們累積了大量礦石堆存。

These measures have paid dividends with the first quarter results with significantly lower unit costs compared to previous quarters as notice on the graph in this slide and on the previous slide. With the increases in metal prices and the anticipation of La Preciosa. We are looking forward as our focus shifts over to the growth side throughout the rest of 2024.

這些措施在第一季結果中已帶來成效，單位成本較前幾季顯著降低，如本頁與前一頁投影片的圖表所示。隨著金屬價格上漲以及對 La Preciosa 的期待。我們展望未來，並將在 2024 年其餘時間把重心轉向成長面。

With silver currently above $27 per ounce, copper above $450 per pound and gold above $2,300 per ounce. These prices will have positive impacts on our second quarter results as we look to continue managing costs at Avino and advancing La Preciosa.

目前白銀高於每盎司 27 美元、銅高於每磅 450 美元、黃金高於每盎司 2,300 美元。在我們持續管理 Avino 成本並推進 La Preciosa 的同時，這些價格將對第二季業績帶來正面影響。

At this point, I will now turn it over to Jennifer North, Head of Investor Relations for an overview of our Q1 ESG and CSR initiatives.

接下來，我將把時間交給投資人關係主管 Jennifer North，概述我們第一季的 ESG 與 CSR 計畫。

Thank you, Nate. And moving on to slide 11. We have listed the ESG, CSR initiatives that were completed in the first quarter of 2024. Several members of the corporate team from Vancouver have made trips to Durango over the last six months and spent time visiting the communities.

謝謝你，Nate。接著看第 11 頁投影片。我們列出了於 2024 年第一季完成的 ESG、CSR 計畫。過去六個月中，溫哥華的多位企業團隊成員曾前往杜蘭戈，並花時間走訪社區。

David, Nathan and Pete were there in November and also in February, myself and Jennifer, Trevor were there in December and again in April, Avino follows the ESG standards and the United Nations sustainable development goals, the SDGs that work together to address the most pressing challenges facing the world.

David、Nathan 和 Pete 在 11 月以及 2 月都在那裡；我和 Jennifer、Trevor 在 12 月在那裡，並於 4 月再次前往。Avino 遵循 ESG 標準以及聯合國永續發展目標（SDGs），這些目標共同致力於解決世界所面臨最迫切的挑戰。

One of our major objectives is to make a positive impact on our communities and society. Maintaining a friendly dialogue is key to learning and improving and maintaining strong relationships and developing trust as responsible corporate citizens. In Durango, the CSR team meets regularly with the stakeholders and the communities and is focused in the areas of education, infrastructure and environment.

我們的一項主要目標是對我們的社區與社會產生正向影響。維持友善的對話是學習、改進、維繫穩固關係並建立信任的關鍵，作為負責任的企業公民亦然。在杜蘭戈（Durango），CSR 團隊定期與利害關係人及社區會面，並聚焦於教育、基礎建設與環境等領域。

And following the guidelines of the STG, the team was able to accomplish the following. In relation to education, Avino considers education of the children and adults of our local communities extremely important and several important considerations that we keep in mind. Our one cultural sensitivity, we make an effort to understand and appreciate the culture and traditions of each community.

並依循 STG 的指引，團隊得以完成以下事項。在教育方面，Avino 認為對本地社區的兒童與成人進行教育極為重要，並有幾項重要考量是我們一直放在心上的。第一，文化敏感度：我們努力理解並欣賞各社區的文化與傳統。

Two, community engagement, we endeavor to foster strong relationships and collaborate with community members, leaders and stakeholders involve these groups when appropriate in decision-making processes related to education initiatives to ensure local perspectives are considered. One of the ways we accomplish this is the CSR team regularly communicates with the principles of the schools to see how we as a company can help fulfill certain needs.

第二，社區參與：我們致力於建立穩固關係並與社區成員、領袖及利害關係人合作；在適當情況下，讓這些群體參與與教育倡議相關的決策流程，以確保納入在地觀點。我們達成此目標的方式之一，是 CSR 團隊定期與各校校長溝通，了解公司可如何協助滿足特定需求。

In three broadening the curriculum. We make an effort to incorporate information about mining by going into schools regularly to show mining as meaningful and relatable to children as a future potential career. During the first quarter in the communities of Avino continued contributing to the schools and communities by donating Samsung TVs and tablets for the benefit of the women and the communities, workshops in bordering knitting and Pinjarra making were held.

第三，擴充課程內容。我們努力納入採礦相關資訊，透過定期走入校園，讓孩子們理解採礦的意義並與其生活連結，作為未來潛在職涯選項。第一季期間，在 Avino 所在社區，我們持續透過捐贈三星電視與平板電腦來支持學校與社區，並為女性與社區舉辦了邊飾編織與 Pinjarra 製作等工作坊。

These workshops not only help them establish their own sense of community and belonging, but encourages the women to pursue entrepreneurial ventures and not only drive some economic growth, but also fosters innovation, community engagement and empowerment.

這些工作坊不僅協助她們建立社群與歸屬感，也鼓勵女性投入創業，不但帶動部分經濟成長，同時促進創新、社區參與與賦權。

At San Jose De Avino, the company has performed road maintenance and cattle guard installations. Donated the lime to paint the town's church for the annual event of its pages, same festivities, which are held every year and are attended by the entire population of the community and surrounding communities.

在 San Jose De Avino，公司進行了道路維護並安裝了牛隻防護柵（cattle guard）。並捐贈石灰用於粉刷鎮上的教堂，以配合其年度活動與同樣的慶典；這些活動每年舉行，社區及周邊社區的全體居民都會參加。

Moving to slide 12 for the benefit of the environment, Avino delivered recycled containers to the church at San Jose De Avino rehabilitation road works were carried out at the main road from NewCo to Coronado Zaragoza to Avino. And Avino delivered waste wood to [heavier Amena]. For the benefit of good health and well-being Avino takes mental health seriously. And our commitment to the community also includes giving presentations on the subject to ensure that these matters are okay to talk about and the spaces given for those who wish to ask questions about mental health and well-being.

接著看第 12 張投影片：在環境方面，Avino 向 San Jose De Avino 的教堂提供了回收容器；並對從 NewCo 經 Coronado Zaragoza 通往 Avino 的主要道路進行了道路修復工程。此外，Avino 將廢木材交付給[heavier Amena]。在健康與福祉方面，Avino 非常重視心理健康。我們對社區的承諾也包括就此主題進行簡報，確保大家知道這些議題是可以被討論的，並為希望就心理健康與福祉提問的人提供交流空間。

One of the Avino top CSR priorities is to create employment opportunities for residents in nearby communities aiming to cultivate generations of passionate and committed advocates for Avino or as we like to say, ambassadors of Avino.

Avino 的 CSR 最高優先事項之一，是為鄰近社區居民創造就業機會，目標是培育一代又一代對 Avino 充滿熱情且投入的支持者，或如我們所說的「Avino 大使」。

We aim to educate the younger generation about local resources, motivating them to appreciate the benefits of mining and envision a future where they can pursue rewarding careers in their own community. Currently, we have 490 direct jobs, which includes the workers at the mine site and in our Durango offices. This number of jobs, which typically translate to three times the number of indirect jobs for services, consultants and suppliers and the surrounding communities and the Durango area.

我們希望教育年輕一代了解在地資源，激勵他們認識採礦的益處，並想像一個能在自己社區追求有回報職涯的未來。目前我們有 490 個直接職位，包括礦區現場與杜蘭戈辦公室的員工。這些職位通常可帶動約三倍數量的間接就業，涵蓋服務、顧問與供應商，以及周邊社區與杜蘭戈地區。

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

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

Thanks, Jim. Moving to slide 13. We are well into the second quarter of 2024. And I mentioned earlier, our ongoing priority is proceeding with our plans for the Gloria and Abundancia veins at La Preciosa. Community engagement is ongoing as we ready ourselves to begin development work.

謝謝，Jim。我們看第 13 張投影片。我們已經進入 2024 年第二季的中段。如我先前提到的，我們持續的優先事項是推進 La Preciosa 的 Gloria 與 Abundancia 礦脈計畫。在我們準備開始開發作業之際，社區參與也在持續進行。

We have hauled the La Preciosa stockpiles to the Avino’s Mill Circuit 2 for processing. We are mining higher in Elena Tolosat. And currently we are now up to Level 15, which is expected to yield higher silver grades. And lastly, our objective is to bolster our treasury through cash flow generation from the Avino mine as we plan the future development of our wholly owned La Preciosa property.

我們已將 La Preciosa 的礦堆運送至 Avino 的選礦廠第二迴路（Mill Circuit 2）進行處理。我們在 Elena Tolosa 的更高部位進行採礦。目前已推進至第 15 水平（Level 15），預期可產出更高的銀品位。最後，我們的目標是透過 Avino 礦山的現金流創造來強化公司資金庫存，同時規劃我們全資持有的 La Preciosa 物業未來開發。

As outlined on slide 14, we want to reemphasize the company's growth plans. We have three assets within a 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 Avino mine.

如第 14 張投影片所示，我們希望再次強調公司的成長計畫。我們在 20 公里範圍內擁有三項資產，合計擁有數億盎司銀當量的礦產資源。在同一區域內，我們也擁有一座正在運作的選礦廠園區，目前由 Avino 礦山供礦生產。

Additionally, access to water, power and tailing storage all 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 2029 through production from these three assets by capitalizing on our existing assets and resources, we can execute our growth planning efficiently and effectively. This approach not only mitigates risks associated with new project development, but also positions us for long-term success and value creation.

此外，水源、電力與尾礦庫等條件一應俱全，使我們能在不需投入從零開始所預期的大額資本支出的情況下，進行有機成長。如各位在本投影片所見，我們的目標是透過這三項資產的產量，在 2029 年前擴大規模；藉由善用既有資產與資源，我們能更高效且更有效地執行成長規劃。此一作法不僅降低新專案開發相關風險，也讓我們具備長期成功與創造價值的有利定位。

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

接下來我們想進入問答環節。接線員？

Thank you. We will now begin the question-and-answer. (Operator Instructions)

謝謝。我們現在開始問答。(接線員指示)

Heiko Ihle, H.C. Wainwright.

Heiko Ihle，H.C. Wainwright。

Hey, there. Thanks for taking my questions. I assume you can hear me, okay?

嗨，你好。謝謝讓我提問。我想你們聽得到我，對吧？

Yes.

是的。

Perfect. Good quarter, congratulations, shares up 10%. So that's nice to see a nice. Hey Nate what are your quote in the earnings release? [Stacy] had positive net income, cash flow generation, reduced operating cost. You could probably guess where this question is going and you're hinting at my answer later in the release, but we're essentially halfway through Q2 at this point.

很好。這一季表現不錯，恭喜，股價上漲 10%。所以很高興看到這樣的表現。嘿 Nate，你在財報新聞稿裡引用的內容是什麼？[Stacy] 提到淨利為正、現金流創造、營運成本降低。你大概猜得到這個問題要問什麼，而且你在新聞稿後面也暗示了我的答案，但目前我們基本上已經走到第二季的一半了。

Have you managed to continue reducing operating costs in Q2 and it may be just the give us some guidance of where you expect the company to be through the remainder of the year?

您們在第二季是否成功持續降低營運成本？另外，能否就您預期公司在今年剩餘期間的狀況給我們一些指引？

Yes, it's a fair question. I think obviously can't say too much at this point, but things are continue to be under control as they were in Q1. And I think the team in Mexico has done a great job at managing operating costs given the pace of strength and still being right around 17 to one. And we have seen, I mean, improvement in grade in the second quarter. And as David mentioned on the call, just with where we're mining now on the silver side.

是的，這是個合理的問題。我想很明顯目前不能說太多，但情況仍如第一季一樣持續受到控制。我認為墨西哥團隊在管理營運成本方面做得非常好，考量到目前的強勁態勢，成本仍大致維持在17比1左右。而且我們在第二季也看到品位有所改善。正如David在電話會議中提到的，這與我們目前在白銀端的採礦位置有關。

And I think overall, you see I mean, everyone's seen the metal price movements since April 1. I think we're up over 15% on all three metals that we produce from the mines. And even if we were just able to maintain costs, I think we're going to see a very positive swing in our operating cash flow margin.

整體而言，大家也都看到自4月1日以來金屬價格的走勢。我想我們礦山所生產的三種金屬價格都上漲了超過15%。即使我們只能把成本維持住，我認為我們的營運現金流利潤率也會出現非常正面的躍升。

Fair enough. Building on the last question and maybe just a bit of a clarification. You essentially produced 630,000 ounces in Q1, multiply that by four gets us to 2.516. Assuming the target is the midpoint of guidance, you're sort of hinting at maybe a slight increase in production in the second half of the year? Or am I just reading too much into this?

了解。延續上一個問題，想再稍微釐清一下。你們第一季基本上產出63萬盎司，乘以四就是251.6萬盎司。若以指引區間的中點作為目標，你們是否在暗示下半年產量可能會小幅增加？還是我解讀過度了？

Yes, that's fair to say, obviously, we want to be at the midpoint or above. And then we've also got the potential of Lymphoseek also stockpiles and the outside chance of fresh ore. But from what we're expecting right now, yes, we're hopeful for some improvements based on our budgeted production later in the year.

是的，這樣說是合理的；當然，我們希望達到指引中點或更高。此外，我們也有Lymphoseek的潛在庫存礦堆，以及少量機會取得新鮮礦石。但就我們目前的預期而言，是的，我們對於今年稍晚依照預算產量帶來一些改善抱持希望。

Jake Sekelsky, Alliance Global Partners.

Jake Sekelsky，Alliance Global Partners。

Hi, David and Nathan and team. Thanks for taking my questions.

嗨，David、Nathan以及團隊。謝謝你們回答我的問題。

Thank you, Jake.

謝謝你，Jake。

Building a bit off a first question on costs. So we've seen them come down for two consecutive quarters and in it seems like these steep stabilize quite a bit. I'm curious how that's sort of changed your view on exploration and sort of the budget there going forward with where metals prices are and sort of the positive cash flow outlook at the Avino mine? Any comments there would be helpful.

延伸一下第一個關於成本的問題。我們看到成本已連續兩季下降，而且看起來已相當程度趨於穩定。我想了解，考量金屬價格的水準，以及Avino礦場正向現金流的展望，這是否改變了你們對勘探（探索）以及未來相關預算的看法？任何評論都會很有幫助。

Yes, that's a pretty fair question. Obviously, given the movement in metal prices, as we've said on the previous couple of calls, I mean the focus is La Preciosa. So I think that's where our focus is going to be. Any exploration, obviously, as cash flow becomes available for that, we would but that's use but the focus is La Preciosa and moving that forward, first and foremost.

是的，這是個相當合理的問題。顯然，鑑於金屬價格的變動，正如我們在前幾次電話會議所說，我們的重點是La Preciosa。所以我認為我們的重點會放在那裡。至於任何勘探，當現金流允許時我們會進行，但重點仍是La Preciosa，並且以推進該項目為首要任務。

And then speaking of La Preciosa -- just looking at the stockpiled ore at surface. Can you remind us if there are any new modifications that need to accept that or and are you pretty much ready to go once that decision's made.

另外談到La Preciosa——就地表堆置的礦石來看。能否提醒我們是否需要任何新的改造才能接收/處理那些礦石？還是說一旦做出決定，你們基本上就已準備就緒？

So, no, there were a few modifications to be done. Likely those have been completed now. And in Q1, actually for processing in Q2. [So we a variety of growth or where has that.] (multiple speakers)

所以，不是的，確實有一些改造需要完成。很可能現在已經完成了。而且在第一季其實是為了在第二季進行處理。[所以我們有各種成長或那裡有什麼。]（多位講者）

Nathan Lindstrom, private investor.

Nathan Lindstrom，私人投資人。

Well, congrats on the good quarter of execution. I just had a couple of questions that I wanted to see if you could comment on. You mentioned in Q1 that you sign the surface rights agreements. Was there a payment made for that? And was it a prepayment for a number of years of surface rights. Can you comment on that?

恭喜你們這一季執行得很好。我有幾個問題想請教你們是否能評論一下。你們在第一季提到已簽署地表權利協議。那是否有為此支付款項？那是否是針對若干年的地表權利所做的預付款？能否談談？

Yes. So that's a fair question. Obviously, it's a long term land use agreement for 20-years. Some is paid upfront and there are some community improvements that are paid along the way as well, too. But yes, some payments were made in the first quarter that have already come out of cash.

是的。所以這是個合理的問題。顯然，這是一份為期20年的長期土地使用協議。其中一部分是預先支付，另外也會在過程中支付一些社區改善項目。但沒錯，第一季確實已支付了一些款項，而且已經從現金中支出。

Yes. Okay, great. And one other question, I really like in prior slides that you guys have presented sort of your roadmap for decision making and around sort of the -- feasibility study that was just done.

是的。好的，很好。另外一個問題，我很喜歡你們之前簡報中呈現的、關於決策的路線圖，以及圍繞剛完成的可行性研究。

Can you put out sort of a similar roadmap in terms of how you're thinking about the next -- five years of development.

你們能否發布一個類似的路線圖，說明你們如何思考未來五年的開發？

I think we had something in our corporate presentation but for the earnings call, just given the time and the size of the presentation, I think we took it out. But I think we can expand on that a bit more offline if that helps. But also I believe there is something in our corporate presentation that does that. --

我想我們在公司簡報（corporate presentation）裡有放一些內容，但在財報電話會議上，考量時間以及簡報篇幅，我想我們把它拿掉了。不過如果有幫助，我想我們可以在會後私下再多做一些說明。另外我也相信我們的公司簡報裡有相關內容。--

Okay. I'll take another look. Thank you.

好的。我會再看一次。謝謝。

Thank you. We currently have no further questions on the lines at this time. So I will hand it back to Mr. Wolfin for any closing comments.He may have

謝謝。目前線上沒有其他提問。因此我將把時間交回給Wolfin先生做結語。他可能會

Thank you, everyone, for your time today, and we're looking forward to a good remainder of 2024 with the big milestone of getting the permit on the La Preciosa. So that's going to be a game changer for the company. So keep an eye out for that. Thanks again, and have a great day.

謝謝各位今天撥冗參與，我們也期待2024年剩餘時間能有良好表現，其中一個重大里程碑是取得La Preciosa的許可。這將會是公司的一個改變遊戲規則的關鍵。請持續關注。再次感謝，祝各位有美好的一天。

Thank you. Ladies and gentlemen, this does conclude today's event. You may disconnect at this time and have a wonderful day. We thank you for your participation.

謝謝。各位女士先生，今天的活動到此結束。您現在可以中斷連線，祝您有美好的一天。感謝您的參與。