Avino Silver & Gold Mines Ltd.

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Thank you Avaas. Welcome everybody. Pleasure to be back here. David Wolfen, president and CEO of Avino Silver and Gold Mines. Our tagline is a clear path to transformational growth. It's clear, because we're gonna grow, through organic means we're gonna go from one producing asset to 3, which is gonna drive our transformational growth. And so going forward you can see here, The location, oh, it's not working anyways, so you got the Avino mine, which is the producing mine. It produces 2500 tons per day located in the state of Durango in the heart of Mexico. it's in a safe jurisdiction in rolling farmland. we have 4 independent circuits in the mill. This is important because we can treat different types of ore from different areas and produce different products. We produce a concentrate and our primary, buyer is Samsung. It goes in their electronics. The second asset is La Preciosa. La Preciosa we bought from Coeur Mining for $30 million in 2022. They paid $358 million buying Oco in 2013, and so we paid 10 cents on the dollar for it. And now it's really driving our growth. It's a fantastic asset and it's only 19 kilometers away. And because we have multiple circuits, we're able to treat that ore separately. So we went from getting the permit in Q1 last year to actually pulling ore out in the same year by Q4. And our goal is to get up to 500 tons per day through the first two small circuits, feeding it with Lareziosa ore. and the third asset is the oxide tailings project. This is leftover waste from when we opened Pit mine in the 70s and 80s. Avino's been around for over five decades and so we know the asset well and there's 6.7 million tons of reserves there and. That's our third asset that's gonna drive our transformational growth. we've got a large, silver equivalent resource base, 277 million ounces of silver equivalent, in the MNI category. There's another, 93 million ounces, I believe. It's hard to read, In the inferred category, all of this is being updated and proven in probable reserves will be announced this month, and it's going to be substantial, so I, I, I, I want you guys to pay attention to the news flow when it comes out. it's really gonna open people's eyes. And so here's our growth plan. This is the growth plan we put together prior to the rally. And so now with a strong balance sheet, we've retained the services of a well renowned, engineering firm to look at even beyond this scope, but this is our current plan. So it's to go from about 2.5 million ounces of silver equivalent annually. To between 8 and 10 million and so the dark blue represents the producing Avino mine, the light blue represents Lareiosa, and the lightest blue is the oxide tailings. You can see a big jump in production next year, and that's all because of higher grade coming from Lareiosa. And here's our production by metal. So last year 49% of our revenue came from silver, 20% from gold, and 31% from copper. This year it's going up to 58% and going higher, and that's because of La Preciosa. And here you can see our financial statements, so record quarterly and annual revenues of 30.5 million to 90 and 92.2 million. This is all US, 54% of our revenue generated, from silver and Q4, 58% gross profit margin. So we're, we're, we're really doing well here, with our operations you can see free cash flow was 24.3 million last year and we ended the year with $102 million in the bank. Today I think we have about $145 million with no debt. And here you can see, so the revenue, and gross profit is well up, up over 100%, 109%, generating free cash flow, everything's going well for us as you can see here. And then, the cash cost per ounce is $16.13. All in sustaining is $23.75. This is gonna trend down when we bring on higher grade from La Preciosa. And the all and sustaining cost at oxide tailings is around $10 so we, we could possibly go under $20 all in sustaining, so we're quite excited about that. You see our margins are at 53%, so we're, we're generating good cash flow. Our costs, 70%. It's below $80 per ton. This is unheard of for underground mining. Usually it's double that. So this shows you the robust nature of our geology. We have a stock works system that's 50 m wide and 600 m of strike, so we're long haul sublevel caving, which is a cheap form of mining. And here's where we're going. So 30,000 m of drilling this year, 15,000 at La Preciosa, 15,000 at Avino. We've got 4 drills turning, 2 on each property. so and the goal for La Preciosa, like I said earlier, is to get to 500 tons per day, this year, through the plant, updating the mineral resources to reserves that's coming this month. And using AI to generate targets, so we used with Verify the Dora system, and they've generated generated dozens of new projects. Equinox announced they gave credit to Dora for a new discovery, so we're really excited about that potential. Avino is located on a volcanic caldera, so it's really an important type of structure there. There's offsetting faults, and we've counted between 50 to 60 veins on the Aveno property alone. And then over at Lapreziosa it's very similar. and then you can see, corporately, so, we announced, NCIB about a week ago in case the stock gets weak, we have the ability to buy back and return capital to shareholders, We, we've done the opposite of some of our peers. We acquired the royalty on La Preciosa and canceled it, so there's more upside and blue sky to our shareholders, myself being the largest shareholder of the company. So I wanna, I'm, I'm aligned with the shareholders. I wanna see the share price do well. You can see indexes we've gone into, 5 different indexes ETFs, GDXJ SIL J, and the, SIL. So we're getting included in all of those. And then last year we had the special distinction of being ranked 5th on the TSX 30, so our stock, over a 3 year trailing average was up over 600% and our market cap was over 700%. Here you can see La Preciosa, so it's about 19 kilometers away. You can see the farms there, so it's not in a remote area. There's no trees there. The Avina was discovered in the 1500s, so the beauty of that is infrastructure. You can see a main highway going by. There's villages all around. We have a 100% Mexican labor force. they, they come from the local community, so it makes for good morale. We have generations of people that work for our company, and our chief operating officer has been with us for 20 years, and he's a graduate of Colorado School of Mines. He's a first class individual so all the infrastructure is there tailings, power, water, we have a 20 kilometer dedicated power line capable of 7 megawatts. We're only utilizing 2. We're extending the power line over to La Preciosa right now and so we're gonna, have full grid power over there. Here you can see La Preciosa. So it's been pin cushioned 1500 drill holes, half a million meters, $90 million spent by Pan American Silver, Coeur Mining and Oco. So it's well defined and you can see it's all red, so between 150 and 500 g, so it's all ore grade material. Here you can see material red zones above 500 g. The resource tonnage is 17.4 million metric tons of MNI. I point you to the grade, the grade says 200 g. That was given to us by Coor who was planning a giant open pit mine, and so there was a lot of waste rock included in there. So when we went back and we re-drilled some of the areas that we're focused on mining now, you'll see the results coming up running much, much higher than 200 g. And how we're gonna mine it is through underground decline, through mechanized mining and long haul drilling. So we put this ramp in 350 m and we're, we're doing level one, right now, and it's in material which we're which we're, hauling to. and processing through Circuit One right now and we're ramping down and so we're gonna, we're mining both La Gloria and Abbandanci at the same time in 4 phases going north to south on both ends and the plan is to tunnel over to Martha and mine it from underground but now we're looking at bringing in, upgrading our permit and putting in more portals and bringing more equipment to pull out this high grade faster. And here you can see the drilling that we did. So look at this, 7.9 m 1.6 kg of silver, 2 g of gold. It goes on 6.4 m of 544 g 0.5 g of gold. So this changed our opinion of how this thing should be mined. We were originally looking at expensive shrinkage dope mining. Now we're looking at long hole mining it. So we, it's gonna be more upfront cost, but we have the money. But once we start mining it, it's gonna be low cost mining. And here you can see the global resource tonnage 53.1 million metric tons of MNI, 23.8 million metric tons of inferred. The capacity of our plant can do 750,000 tons on an annual basis. This represents 100 years of mine life. So obviously we're looking at shrinking the mine life and expanding our operation. Research many companies here, and then market cap. So, our stock is $7 US. It's, $1.2 billion US market cap. It's liquid. It trades on the NYSC American at 5 to 6 million shares a day and then on the TSX 60 to 700,000, shares a day. retail following 62%, institutional 32%, and then management, so I have a lot of skin in the game. I'm the largest individual shareholder of the company, and I didn't acquire it through, when it was incorporated in 1968. I was only 1 year old at the time, so I've acquired it, through buying it, so I'm aligned with the shareholders. And so why invest in Aveeno, a disciplined silver producer with scale, growth, and financial strength, silver weighted exposure. So we've got a lot of ounces of silver, new reserve estimate coming up. So expect these numbers to appreciate with all the work we've been doing. Growth with execution, so a clear path to growing organically through building up La Preciosa and oxide tailings, milestones delivered. We delivered on several expansions already. We put in a dry stack tailings facility, a $15 million investment. We were not mandated to do it. We were using best practices and we're backfilling our open pit with the material right now and financial strength, no debt with over $100 million in the bank. And with that I'll wrap it up. Ovaas, back to you. Sure, thanks. anyone have any questions, from the audience? There's a question right here. Yes sir, in the middle. Prevent, yeah, thank you. How can you prevent something happening to you, like it did to Whistler? Well, like I, I mentioned, we're in a different jurisdiction. We're about, 600 kilometers away and we're in farmland. We're in an uncontested state. There's no rival factions fighting there over farms. We're not on the coastline and we're not in up by the border and we're not in a remote area. They're in a remote area and Sinaloa is heavily contested because the two founders of that cartel are in jail and the kids are fighting over dominance. We're not seeing that here. Any other questions? One quick question for me, David, just in terms of, you're looking to come out with, a new, resource update. looks like you're changing, mining methods as well. any new, study that you're expecting to release in the, in the near term? Yes, so that study that those results are coming out this month and then also what I mentioned, we're looking at optimization and reimagining all the, all our assets above 8 million ounces. So we've hired SRK Engineering. They're working on 4 scenarios right now, so an expansion at Avino, a standalone mill at La Preciosa, or a giant open pit mine. Excellent. And, and within your, you know, portfolio, I mean, which, which were the, you know, I guess the assets that you like best, or do you see most upside right now? La Preciosa is our best asset right now. I mean, oxide tailings is low hanging fruit, but you know it's gonna take longer. There, there's risk in, you know, getting oxide permits with, with La Preciosa. It's just, training locals, getting their skill set. we're seeing a lot of people coming back. From the US in the parking lot, it's all US license plates and I was asking the chief operator why is that? He says, because what's going on in the US they're all coming back to work for us. They were trained by us originally, so we have the capital to really expand what we have and so there's no risk to shareholders on dilution. We have close to 145 million in the bank. Excellent. Any other questions from the audience? I guess, oh, there's one more here right in the middle. Yep. Curious 1450 m, I think. as I remember it, because I used to own Oracle back in the day, and I remember the expiration. There was a big dip and then there was, there was, non, there wasn't a, silver for a certain distance. Do you have, are you going to mine through that, or how are you going to mine across? They focused on the Martha vein, which is flat lying and deep. That's why they were considering an open pit mine. We're focused on La Gloria. Nuncia and they're vertical veins that go right to the surface. As I mentioned, we put in a 350 m decline ramp and pierced on those veins and we're, we're ramping down and we're going to mine it through long haul methods using gravity. So that's the plan. So you don't run into this, it seems to me there was this zone of non-ore that, was sort of separating the, the, the two or not where we are now. I mean, if there's. areas that have low grades, they'll be left behind as for, for ground support. OK, thank you very much. Great update, David. Appreciate it. Our next, company is Aya Gold and Silver, and presenting Aya Gold and Silver, is Benuel La Salle, president and CEO. Good to see you. Thank you.