Avino Silver & Gold Mines Ltd (ASM) 2024 Q2 法說會逐字稿

Welcome to the Avino Silver & Gold Mines second quarter 2024 financial results conference call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. (Operator Instructions). I would now like to turn the conference over to Jennifer North, Head of Investor Relations. Please go ahead.

歡迎參加 Avino Silver & Gold Mines 2024 年第二季財務業績電話會議與網路直播。提醒各位，所有與會者目前為僅收聽模式，本次會議將被錄音。(接線員指示)。現在我將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 second quarter 2024 financial results conference call and webcast. To join this webcast and conference call, there is a link in our news release dated July 16, 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 our home page of the Avino website.

謝謝，接線員。各位早安，歡迎參加 Avino Silver & Gold Mines Limited 2024 年第二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 7 月 16 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 News 2024 欄目下找到。此外，Avino 官網首頁也可找到連結。

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 of Technical Services, Peter Latta.

今天出席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 or on our press release of yesterday's date.

除非適用法律另有要求，公司無意且不承擔任何義務更新該等前瞻性陳述或資訊。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，或參閱昨日發布的新聞稿。

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.

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。接著點選 financial statements（財務報表）。此外，完整報表亦可於 SEDAR+ 及 EDGAR 上 Avino 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 from this conference call and webcast will be available on our website. Also, please note that all figures stated are in US dollars unless otherwise noted. Thank you.

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網站。另請注意，除非另有說明，所有提及之數字均以美元計價。謝謝。

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

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

Thanks, Jen. Good morning, everyone, and welcome to Avino's Q2 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 we are currently performing, followed by Q&A.

謝謝，Jen。各位早安，歡迎參加 Avino 2024 年第二季財務業績電話會議與網路直播。我們將說明財務與營運表現的重點，接著介紹目前正在進行的工作，最後進入問答。

I will start with a discussion on 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 our overview of Q2 ESG initiatives. Please turn to slide 5 as we go through the production results.

我將先從營運面開始說明，接著交由 Avino 財務長 Nathan Harte 說明本期間的財務表現。之後，我們的投資人關係主管 Jennifer North 將介紹第二季 ESG（環境、社會與公司治理）倡議概覽。在我們檢視產量結果時，請翻到第 5 頁投影片。

Our Q2 production results were released in mid-July and are as follows: Silver equivalent production was 617,000 ounces, silver production was 293,000 ounces, a 26% increase compared to Q2 2023. Copper production was 1.3 million pounds. Gold production was just over 1,500 ounces. Mill throughput was 141,000 tonnes.

我們第二季產量結果已於 7 月中旬發布，內容如下：白銀當量產量為 617,000 盎司；白銀產量為 293,000 盎司，較 2023 年第二季增加 26%。銅產量為 130 萬磅。黃金產量略高於 1,500 盎司。磨礦處理量為 141,000 公噸。

Our second quarter production results remain consistent, up 5% over the second quarter of last year. In addition, we were able to start processing La Preciosa surface stockpile material through our mill. Almost 10,000 tonnes were processed from La Preciosa stockpiles in Circuit 1 and Circuit 2 with excellent recovery rates, particularly silver, which exceeded our expectations.

我們第二季的產量結果維持穩健，較去年第二季增加 5%。此外，我們也開始將 La Preciosa 的地表礦堆物料送入磨礦廠進行處理。在 Circuit 1 與 Circuit 2 中，La Preciosa 礦堆物料處理量接近 10,000 公噸，回收率表現優異，尤其是白銀回收率超出我們預期。

This helped contribute to a 26% increase in silver ounces produced in the quarter which we expect to grow significantly when we were able to commence mining and processing underground material from La Preciosa. I would also like to mention that the silver grades achieved in La Preciosa surpassed what we anticipated, which adds to the excitement we feel from the future of La Preciosa.

這有助於推動本季白銀產量增加 26%；我們預期在能夠開始開採並處理 La Preciosa 的地下礦石後，該增幅將顯著擴大。我也想提到，La Preciosa 所達成的白銀品位高於我們原先預估，這也讓我們對 La Preciosa 的未來更加振奮。

The last two weeks of production for the quarter were slightly impacted due to repairs being carried out on one of our cone crushers, a smaller crusher was utilized to minimize downtime in the mill, and it is now back to full mill capacity.

本季最後兩週的產量因其中一台圓錐破碎機進行維修而略受影響；我們改以一台較小的破碎機運作以將磨礦廠停機時間降至最低，目前已恢復至磨礦廠滿載產能。

We continue to be on track with our targeted full-year production of 2.5 million to 2.8 million ounces of silver equivalent. Our five-year growth 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.

我們仍按計畫達成全年目標產量：白銀當量 250 萬至 280 萬盎司。我們的五年成長計畫目標是將產量水準由 2024 年白銀當量 250 萬至 280 萬盎司，提高至 2029 年白銀當量 800 萬至 1,000 萬盎司。

Continuing on to slide 6, we will review our Q2 milestones and ongoing initiatives. As mentioned before, La Preciosa represents a key pillar in our transformational growth strategy and hosts a large endowment of silver and gold resources which we expect to process for years to come.

接著看第 6 頁投影片，我們將回顧第二季里程碑與持續推動的計畫。如先前所述，La Preciosa 是我們轉型成長策略的關鍵支柱，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進行處理。

Updates for the quarter include the application for the environmental permit was submitted by the company to relevant authorities. Following the feedback received in this quarter, the company's response has been resubmitted with minor modifications. A further permit application will be submitted shortly after receipt of the environmental permit, which is required to commence the construction of the portal, haulage ramp and the mining of Gloria and Abundancia Veins.

本季更新包括：公司已向相關主管機關提交環境許可申請。在本季收到回饋後，公司已就回應內容進行小幅修訂並重新提交。在取得環境許可後不久，將再提交另一項許可申請；該許可為開始建置井口（portal）、運輸斜坡道（haulage ramp），以及開採 Gloria 與 Abundancia 礦脈所必需。

This marks the start of a new era for Avino and the nearby communities around La Preciosa, bringing economic benefits that have been absent for years.

這標誌著 Avino 以及 La Preciosa 周邊社區新時代的開始，將帶來多年來所欠缺的經濟效益。

Early in the quarter, the haulage of old stockpiles from La Preciosa to our mill at Avino for processing was completed. In early June, I traveled to the Durango operations spending time at both Avino and La Preciosa. At La Preciosa, we were able to see that surface works are ongoing in preparation of commencement of mining and the construction of office and outbuildings are underway. In addition, we were pleased to see the preparation of the surface portal location is progressing in anticipation of receiving the underground mining permit.

在本季初，已完成將 La Preciosa 的舊礦堆物料運送至 Avino 的磨礦廠進行處理。6 月初，我前往杜蘭戈（Durango）營運據點，並在 Avino 與 La Preciosa 兩處停留。在 La Preciosa，我們看到為了準備開始採礦，地表工程正在進行中，辦公室與附屬建物的興建也已展開。此外，我們也很高興看到地表井口位置的整備工作正在推進，以迎接地下採礦許可的核發。

We're confident that the necessary work is progressing on schedule, ensuring we will be well prepared to commence mining as soon as the permits are granted. I encourage you to view the La Preciosa section on our website for pictures taken on our last visit.

我們有信心，必要的工作正按計畫進度推進，確保一旦許可證核發，我們即可做好充分準備立即開始採礦。我鼓勵各位瀏覽我們網站上的 La Preciosa 專區，查看我們上次造訪時拍攝的照片。

At this time, I will now hand it over to Nathan Harte, Avino's CFO to present Avino's Q2 2024 financial results. Nathan?

此時，我將把時間交給 Avino 的財務長 Nathan Harte，為各位說明 Avino 2024 年第二季的財務結果。Nathan？

Thank you, David. It's my pleasure to be on the call, and I would like to welcome everyone who has joined us and is viewing our presentation today. Now turning to slide 7 for a summary of the key financial highlights for the second quarter. Our second quarter delivered record revenues and significantly improved financial performance with $14.8 million in revenue and $4.7 million in gross profit. On a cash basis, gross profit was $5.9 million with a margin of almost 40%.

謝謝你，David。很高興參與本次電話會議，也歡迎所有加入並正在觀看我們今天簡報的各位。現在請翻到第 7 頁投影片，概述第二季的主要財務亮點。我們第二季創下營收新高，財務表現顯著改善，營收為 1,480 萬美元，毛利為 470 萬美元。以現金基礎計算，毛利為 590 萬美元，毛利率接近 40%。

We had net income of $1.2 million or $0.01 per share and adjusted earnings was $4.3 million or $0.03 per share, both improved over previous quarters. Operating cash flows before working capital movements were $3.6 million or $0.03 per share, and we ended the quarter with cash on hand of $5.3 million, much improved from previous quarters.

我們的淨利為 120 萬美元或每股 0.01 美元；調整後盈餘為 430 萬美元或每股 0.03 美元，兩者均較前幾季改善。營運現金流（未計入營運資金變動前）為 360 萬美元或每股 0.03 美元；季末現金餘額為 530 萬美元，較前幾季大幅提升。

As highlighted on our last call, our working capital position has improved significantly with the balance of $13.6 million at quarter end, 3x higher than where we were just 12 months prior. As we look to move forward with La Preciosa, our balance sheet strength will be key over the coming months.

如同我們上次電話會議所強調，我們的營運資金狀況已顯著改善，季末餘額為 1,360 萬美元，較 12 個月前高出 3 倍。隨著我們推進 La Preciosa 計畫，未來幾個月資產負債表的強健將是關鍵。

Coming to slide 8, I'll walk you through the details of our financial results, which were not touched on in the highlights. I do want to highlight again the record quarterly revenue of $14.8 million and high gross profit of $4.7 million. We see positive improvements in all financial metrics for the second quarter when compared to Q2 of 2023. As noted, on a cash basis, gross profit was $5.9 million, representing a 40% cash operating margin, our highest since operating the Avino mine as a full-scale underground production operation.

接著到第 8 頁投影片，我將帶各位了解財務結果的細節，這些在亮點部分尚未提及。我想再次強調，單季營收創紀錄達 1,480 萬美元，毛利也達到 470 萬美元的高水準。與 2023 年第二季相比，我們第二季在所有財務指標上都呈現正向改善。如前所述，以現金基礎計算，毛利為 590 萬美元，代表 40% 的現金營運毛利率，為我們將 Avino 礦山作為全規模地下生產作業營運以來的最高水準。

Moving to the year-to-date columns. Again, we see increases across all metrics, with revenues up 43% and gross profit up 143% compared to the first half of 2023. Net income was $1.8 million or just under $0.015 per share with EBITDA coming in at $5.1 million. Adjusted earnings paints a similar picture with improvements compared to 2023 with $6.4 million or $0.05 per share generated in the first half of 2024.

接著看年初至今（YTD）欄位。同樣地，我們看到各項指標全面成長，與 2023 年上半年相比，營收增加 43%，毛利增加 143%。淨利為 180 萬美元或每股略低於 0.015 美元，EBITDA 為 510 萬美元。調整後盈餘呈現相似趨勢，較 2023 年有所改善，2024 年上半年產生 640 萬美元或每股 0.05 美元。

Cash flow from operations before working capital movements was $5.2 million compared to $2.3 million in the first half of 2023. On a per share basis, the first half of '24 generated $0.04 with the comparable '23 period being $0.02 generated.

營運現金流（未計入營運資金變動前）為 520 萬美元，相較於 2023 年上半年的 230 萬美元。以每股計算，2024 年上半年為 0.04 美元，而 2023 年同期為 0.02 美元。

After working capital adjustments, cash flow from operations generated was $3.4 million, with the company making considerable improvements to its working capital and liquidity positions since the end of the year. For 2024, we have been free cash flow positive, if only slightly, as working capital movements did have an impact with efforts already mentioned.

在營運資金調整後，營運活動所產生的現金流為 340 萬美元；自年末以來，公司在營運資金與流動性部位方面已有顯著改善。2024 年我們的自由現金流為正，雖然幅度不大，因為營運資金變動確實受到前述改善措施的影響。

Here on slide 9, you can see our cost per ounce figures for the second quarter did bump up slightly from Q1. However, they do remain in line with 2023 and will be looking to improve for the rest of the year as the Mexican peso has weakened significantly since June 30. Lower ounces sold in Q2 versus Q1 did have an impact on our cash cost and all-in cash cost figures.

在第 9 頁投影片，各位可以看到第二季的每盎司成本較第一季略有上升。不過，仍與 2023 年水準一致；由於墨西哥披索自 6 月 30 日以來明顯走弱，我們預期今年其餘時間成本將有改善空間。第二季相較第一季銷售盎司數較少，確實影響了我們的現金成本與全現金成本（all-in cash cost）指標。

Our cash cost per ounce number for Q2 came in at $16.29. As you can see on the chart, this was in line with most of last year, but there is definite room for improvement in the rest of '24. All-in sustaining cash costs per ounce came in $22.74, slightly below Q2 of last year, but definitely up from the first quarter of this year. Again, there are additional improvements that can be realized throughout the rest of 2024.

第二季每盎司現金成本為 16.29 美元。如圖表所示，這與去年大部分期間相當，但在 2024 年其餘時間仍有明確的改善空間。每盎司全維持性現金成本（AISC）為 22.74 美元，略低於去年第二季，但確實高於今年第一季。同樣地，2024 年其餘時間仍可望實現進一步改善。

Coming to slide 10, you can see our cost per tonne processed for the quarter came in above recent quarters, solely due to the fact that we processed less tonnes in Q2 versus previous quarters. As we noted in our production release, we did have some crushing equipment issues, which did impact June and early July mill throughput. This led to decreased Avino tonnes processed by about 20% in Q1, hence the increased cost per tonne for this quarter.

接著到第 10 頁投影片，各位可以看到本季每噸處理成本高於近期幾季，原因僅在於第二季處理的噸數較前幾季少。如同我們在產量公告中提到，我們的部分破碎設備出現問題，影響了 6 月及 7 月上旬的磨礦廠處理量。因此，Avino 處理噸數較第一季減少約 20%，也就導致本季每噸成本上升。

With mill availability back up to expectations, the latter part of the year should see improvements. Cash cost per tonne processed came in at $66.79 per ton, and all-in sustaining cash cost per tonne processed tells a similar story at $92.31, both above recent quarters.

隨著磨礦廠可用率回升至預期水準，今年後半段應可看到改善。每噸處理現金成本為每噸 66.79 美元；每噸全維持性現金成本同樣呈現類似情況，為 92.31 美元，兩者均高於近期幾季。

The Mexican peso held its strength leading up to the election in early June, which did continue to impact our cost structure as the majority of all expenditures are incurred in Mexico with local suppliers, employees and contractors. With the peso weakening following the election, we have seen some relief and are taking measures to protect our cost structure for the rest of the year. With metal prices remaining elevated in the anticipation of La Preciosa, we're looking forward as our focus shifts to the growth side throughout the rest of '24 and into 2025.

墨西哥披索在 6 月初選舉前維持強勢，持續影響我們的成本結構，因為我們大多數支出都在墨西哥發生，並由當地供應商、員工與承包商提供。選後披索走弱，我們已看到一些紓緩，並正採取措施以保護今年其餘時間的成本結構。在金屬價格維持高檔、且市場對 La Preciosa 抱持期待之際，我們對未來感到樂觀，並將在 2024 年其餘時間及進入 2025 年把重點轉向成長面。

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

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

Thank you, Nathan. Moving on to slide 11, we have listed our ESG CSR initiatives that were completed in the second quarter of 2024. Avino follows the ESG standards and the United Nations Sustainable Development Goals or the SDGs that work together to address the most pressing challenges facing the world. The 17 SDGs are integrated, which means that an action or goal in one area can or will affect outcomes in other areas.

謝謝你，Nathan。接著到第 11 頁投影片，我們列出了 2024 年第二季完成的 ESG 與 CSR 計畫。Avino 遵循 ESG 標準以及聯合國永續發展目標（SDGs），兩者相互配合，以共同因應世界所面臨最迫切的挑戰。17 項 SDGs 是相互整合的，這表示某一領域的行動或目標可能會或將會影響其他領域的成果。

In the second quarter, Avino's ESG initiatives were focused on the following SDGs; Number three is good health and well-being, which is defined to ensure healthy lives and promote well-being for all at all ages. Number four is quality education, which is defined as to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

在第二季，Avino 的 ESG 倡議聚焦於以下 SDGs；第三項是良好健康與福祉，其定義為確保各年齡層所有人都能享有健康生活並促進福祉。第四項是優質教育，其定義為確保包容且公平的優質教育，並促進全民終身學習機會。

Number five is gender equality, which is defined as to achieve gender equality and empower all women and girls. And number nine, industry innovation and infrastructure, which is defined as to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

第五項是性別平等，其定義為實現性別平等並賦權所有婦女與女童。以及第九項，產業、創新與基礎建設，其定義為建構具韌性的基礎建設，促進包容且永續的工業化並推動創新。

Avino's commitments in these areas during the quarter were accomplished through the following: There were medical terms performed to our Avino personnel at site, which positively impacts our teams as well as their families, helping to maintain a health work and home environment. If we look at how some of these goals are integrated, you could say that health care services can be considered a major gateway to advancing economic opportunities for women.

本季 Avino 在這些領域的承諾透過以下方式達成：我們在現場為 Avino 員工進行醫療檢查，對我們的團隊及其家庭帶來正面影響，有助於維持健康的工作與居家環境。若看這些目標如何整合，你可以說醫療保健服務可被視為推動女性經濟機會的一個重要入口。

When women have adequate resources to care for themselves and their families, they unlock a world of potential for themselves, their communities and nations. Avino's diverse and inclusive workforce includes nearly 16% women among our employees.

當女性擁有足夠資源照顧自己與家人時，她們便能為自己、社區與國家開啟無限可能。Avino 多元且包容的勞動力中，女性員工占比接近 16%。

During the quarter, we celebrated and honored our working mothers and the women and the communities on Mother's Day. We then celebrated and honored Father's Day in the communities. The CSR team posted and commenced summer workshops for the children in the communities. Avino provided material and assistance with the installation of a new cattle guard. Avino donated furniture for community events and sheet metal for roof replacements in the community.

本季我們在母親節慶祝並表揚我們的職場母親，以及社區中的女性與社區。之後我們也在社區慶祝並表揚父親節。CSR 團隊發布並啟動了社區兒童的暑期工作坊。Avino 提供材料並協助安裝新的牛隻防護柵。Avino 捐贈家具供社區活動使用，並捐贈金屬板材用於社區屋頂更換。

Finally, one of Avino's top CSR priorities is to create employment opportunities for residents and nearby communities. Aiming to cultivate generations of passionate and committed advocates for Avino or as we like to say, ambassadors of Avino. 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.

最後，Avino 的一項首要 CSR 優先事項是為居民及鄰近社區創造就業機會。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。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，並想像一個未來：他們能在自己的社區追求有回報的職涯。

Currently, we have 472 direct jobs with our female workforce representing almost 16% of that. This number of jobs will typically translate to 3x the number of indirect jobs or services, consultants and suppliers in the certain communities in the Durango area.

目前我們有 472 個直接職位，其中女性勞動力占比接近 16%。這些職位通常可帶動約 3 倍數量的間接工作或服務、顧問與供應商，分布於杜蘭戈地區的特定社區。

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, Jen. Moving to slide 12, we were happy to see the second quarter rally in metal prices with silver outperforming gold at times. The higher grade seen in the second quarter from La Preciosa furthers the confidence we have in our strategy to focus on transformational growth with our two mines in Mexico, coupled with the demand for silver, gold and copper. We are well into the third quarter of 2024, and our ongoing priority is proceeding with our plans for the Gloria and Abundancia veins at La Preciosa.

謝謝，Jen。來到第 12 張投影片，我們很高興看到第二季金屬價格反彈，白銀有時表現優於黃金。第二季在 La Preciosa 看到的較高品位，進一步強化我們對策略的信心：聚焦於在墨西哥的兩座礦山推動轉型式成長，同時受惠於白銀、黃金與銅的需求。我們已進入 2024 年第三季相當一段時間，目前持續的優先事項是推進 La Preciosa 的 Gloria 與 Abundancia 礦脈計畫。

Community engagement is ongoing as we ready ourselves to begin development work. In addition, we are currently mining at Level 14 at Elena Tolosa where we expect to yield higher grades at the beginning of Q3 and then level off during the remainder, the leveling off is due to the planned mine sequencing.

在我們準備開始開發工程之際，社區參與工作仍在持續進行。此外，我們目前在 Elena Tolosa 的第 14 水平進行採礦，預期在第三季初可產出較高品位，之後在剩餘期間趨於平穩；趨於平穩是由於既定的礦山採序安排。

As outlined on slide 13, 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 our Avino mine. Additionally, access to water, power and tailings storage, all ingredients to grow organically without the major capital investment required that we expect if we were starting from scratch.

如第 13 張投影片所示，我們想再次強調公司的成長計畫。我們在 20 公里範圍內擁有三項資產，合計擁有數億盎司白銀當量的礦產資源。在同一區域內，我們擁有一座正在運轉的選礦廠綜合設施，目前由 Avino 礦供料生產。此外，我們也具備取水、電力與尾礦儲存等條件，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要素；若從零開始，我們預期將需要重大資本投資。

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 plans efficiently and effectively. This approach not only mitigates risk associated with new project development, but also positions us for the long-term success and value creation.

如你在這張投影片所見，我們的目標是透過這三項資產的生產，在 2029 年前擴大規模。藉由善用既有資產與資源，我們能以高效率且有效的方式執行成長計畫。此一做法不僅降低新專案開發相關風險，也讓我們在長期成功與價值創造方面更具優勢。

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

我們現在想把電話會議移到問答環節。接線員？

(Operator Instructions) Jake Sekelsky, Alliance Global Partners.

（接線員指示）Jake Sekelsky，Alliance Global Partners。

Hey David, Nathan and team. Thanks for taking my question.

嗨 David、Nathan 以及團隊。謝謝讓我提問。

No problem.

沒問題。

So you mentioned the processing of 10,000 tonnes of stockpiled material at La Preciosa. I'm just curious, is this something we should expect to continue in the second half? And can you maybe quantify the remaining stockpile there?

你提到在 La Preciosa 處理 10,000 公噸的堆存物料。我想請教，這是否預期在下半年會持續？另外你能否量化那邊剩餘的堆存量？

Hi, Jake, this is Peter. Yeah, this will continue in the second half, and it looks like we have about 5,000 tonnes left.

嗨 Jake，我是 Peter。是的，下半年會持續，看起來我們大約還剩 5,000 公噸。

Got it. That's helpful. In that same vein, do you have any color on what the ramp-up at La Preciosa underground might look like into next year? I mean is there a level of throughput you'd like to see go through the mill from La Preciosa to next year?

了解。這很有幫助。同樣延伸這個話題，你能否談談 La Preciosa 地下礦在明年之前的爬坡情況可能會是什麼樣子？我的意思是，明年你希望 La Preciosa 有多少處理量能送進選礦廠？

Yeah. I mean, we're focused right now on just making sure that we get the permits and start construction. We definitely have a lot of plans as far as ramp-up in a few different scenarios as far as how fast we can do that and how fast we can move equipment over. But -- and keeping in mind that those would be aligned with the size of our circuits, given that we have a two 250 tonne per day circuits and then two 1,000 tonne per day circuit. So trying to match that output from La Preciosa to our circuits. But there are a few scenarios that we're working on depending on timing.

是的。我的意思是，我們目前專注在確保取得許可並開始施工。關於爬坡，我們確實有很多計畫，包含幾種不同情境：我們能多快做到、以及能多快把設備移過去。但——也要記得這些會與我們的迴路規模相匹配，因為我們有兩條每日 250 噸的迴路，以及兩條每日 1,000 噸的迴路。因此我們會嘗試讓 La Preciosa 的產出與我們的迴路產能相匹配。不過我們正在根據時程推演幾個情境。

Got it. Okay. Do you think you might see some more color on those scenarios as the permits come in and you start getting underground?

了解。好的。你認為隨著許可到位、並開始進入地下作業後，是否能對這些情境提供更多細節？

Absolutely.

當然可以。

Okay. Very good. That’s all for me. Thanks again.

好的。非常好。我這邊就到這裡。再次感謝。

Thank you, Jake.

謝謝你，Jake。

Joseph Reagor, ROTH Capital Partners.

Joseph Reagor，ROTH Capital Partners。

Hey, David and team thanks for taking the questions and congrats on a good quarter.

嗨，David 和團隊，謝謝你們回答問題，並恭喜本季表現不錯。

Thank you.

謝謝。

So on this cone crusher you had, should we expect any costs to roll into Q3 from the repair? Or was it relatively minor?

關於你們那台圓錐破碎機的維修，我們是否應該預期有任何成本會延續到第三季？還是說影響相對不大？

Good question, Joe, Nathan here. On the CapEx side, a few cost of replacement and additional pieces as well as obviously labor to get that moving, but nothing significant. We are under budget on some other areas on the CapEx side. So we'll just -- we'll be reshifting from one bucket to the other. And then on the OpEx side, will be probably slightly lower on tonnes processed for July, which might impact cost a little bit, but nothing significant.

好問題，Joe，我是 Nathan。在資本支出（CapEx）方面，有一些更換成本以及額外零件，當然也包括讓它恢復運轉的人工，但沒有什麼重大金額。我們在其他一些資本支出項目上低於預算。所以我們只是——把預算從一個項目挪到另一個項目。至於營運支出（OpEx）方面，7 月處理的噸數可能會略低，這可能會對成本有一點影響，但不會太顯著。

Okay. Fair enough. And then you mentioned the Mexican peso. Can you give us kind of a brief reminder of what level of impact move in the peso can have on overall cost for the company?

好的。有道理。另外你提到墨西哥披索。你能否簡單提醒一下，披索匯率變動對公司整體成本可能造成多大影響？

Yeah. It's a fantastic point. So I mean, right now, it's around 19:1, I believe, as of this morning, whereas in the first quarter and most of Q2, we were talking 16 to 17 range. So that's 10% to 15% swing, if not more. So that does have a significant impact. We'd say 80% of our costs are paid in pesos in country. So can do some quick math in that there, but we should have a meaningful impact on cost for assuming it stays at this level.

可以。這點非常好。以目前來看，我相信截至今天早上大約是 19:1，而在第一季以及第二季大部分時間，我們談的是 16 到 17 的區間。所以這是 10% 到 15% 的波動，甚至更多。因此確實會帶來顯著影響。我們會說大約 80% 的成本是在當地以披索支付。所以你可以很快算一下；若匯率維持在這個水準，對成本會有相當明顯的影響。

Great. I'll turn it over. Thanks guys.

很好。我就把時間交回去。謝謝各位。

Thank you.

謝謝。

Matt O'Keefe, Cantor Fitzgerald.

Matt O'Keefe，Cantor Fitzgerald。

Thanks operator. Good morning, everyone. Most of my questions have been answered, but just to hit the peso thing again. So did you say what the -- what kind of exposure you have as far as like what percentage of your overall costs are related to peso?

謝謝接線員。各位早安。我的大部分問題都已經被回答了，但我想再追問一下披索的部分。所以你們剛剛有提到——就你們的曝險而言，大概有多少比例的整體成本是與披索相關的？

Yes. 70 days (multiple speakers)

是的。70 天（多位講者）

70 days that was the booking?

70 天是指那個預訂（booking）嗎？

Yeah. (multiple speakers)

對。（多位講者）

Okay. So this could -- I mean, if this holds, it should be helpful. And then the cone crusher, I know you did address this. The -- so that should have less of an impact in Q3 with respect to throughput than it did in Q2. Is that a safe assessment?

好的。所以這——我的意思是，如果這個水準維持住，應該會有幫助。另外關於圓錐破碎機，我知道你們已經回應過。所以就處理量（throughput）而言，第三季的影響應該會比第二季小。這樣的判斷合理嗎？

That's correct. Yeah.

沒錯。是的。

Okay. That was really all I had. So thank you. And nice to see the working capital go up pretty nicely this quarter.

好的。我就只有這些問題。謝謝。也很高興看到本季營運資金增加得相當不錯。

Thank you.

謝謝。

Chen Lin, Lin Asset Management.

Chen Lin，Lin Asset Management。

Hi, David and team. Thank you taking my questions. Great quarter, congratulations. Most of my question actually has been answered. I just want to -- if you can get some color what kind of CapEx do you expect to get the La Preciosa fully online?

嗨，David 和團隊。謝謝你們回答我的問題。本季表現很棒，恭喜。其實我大部分的問題都已經被回答了。我只是想——如果可以的話，請提供一些細節：要讓 La Preciosa 全面上線，你們預期需要什麼樣的資本支出（CapEx）？

Thanks, Chen. Fair question. Nathan here. So we put out our guidance on that at the beginning of '24, and that really hasn't changed. We're only expecting about -- we're in the neighborhood of $3 million to 4 million -- $3 to $5 million to get into the initial veins at Gloria and Abundancia. And then obviously, as we ramp up, there will be some additional development costs. But in what we're looking at internally, that's what we're planning for the initial phase of development and mining.

謝謝你，Chen。問得很好。我是 Nathan。我們在 2024 年初已發布相關指引，而這點其實沒有改變。我們預期大約——大概是 300 萬到 400 萬美元——約 300 萬到 500 萬美元，用於進入 Gloria 和 Abundancia 的初期礦脈。然後當然，隨著我們逐步提升產能，還會有一些額外的開發成本。但就我們內部目前的評估，這就是我們為初期開發與採礦階段所做的規劃。

Most of the infrastructure is there; the buildings, access, power, roads, water, everything is there. So it's a dream come true for us.

大部分基礎設施都已經到位；建物、進出道路、電力、道路、水源，所有東西都在。所以對我們來說簡直是夢想成真。

Okay. Great. Good luck with the permit. I just want to confirm, so you process 10,000 tonnes of stockpile and then you have 5,000 tonnes left, right? That's -- did I hear you correctly?

好的。太好了。祝許可證申請順利。我想確認一下，所以你們處理了 10,000 噸的堆存礦（stockpile），然後還剩 5,000 噸，對嗎？——我聽得沒錯吧？

That's correct.

沒錯。

Okay. Great. Thank you. Good luck with your permit.

好的。太好了。謝謝。祝你們許可證順利。

Thank you., Chen.

謝謝你，Chen。

Thank you.

謝謝。

Thank you. And there are no further questions in queue at this time. I would now like to turn the floor back to David Wolfin for closing remarks.

謝謝。目前排隊中沒有其他問題。現在我想把時間交回給 David Wolfin 作結語。

Thanks, everybody. As we mentioned, La Preciosa is the key pillar to our growth. So the next big milestone is getting that permit and start tunneling underground to the initial mining area, which is about 350 meters away from the surface. So we'll get in there quick. And we're thrilled about the grade. The grade doubles, the silver grade at Avino. So stay tuned to watch our growth, and we'll be reporting as soon as we get those permits. Thank you.

謝謝各位。如我們所提到的，La Preciosa 是我們成長的關鍵支柱。所以下一個重大里程碑就是取得許可證，並開始在地下向初期採礦區域掘進（tunneling），該區域距離地表約 350 公尺。所以我們會很快進入那裡。我們對品位感到非常振奮。品位會翻倍，也就是 Avino 的白銀品位翻倍。所以請持續關注我們的成長；一旦取得許可證，我們會盡快對外報告。謝謝。

Thank you. This does conclude today's conference call and webcast. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

謝謝。今天的電話會議與網路直播到此結束。您現在可以中斷連線，祝您有美好的一天。感謝您的參與。