Avino Silver & Gold Mines Q4 2023 Earnings Call Transcript

Quartr
Provided by Quartr
March 21, 2024

There are 9 speakers on the call.

Operator

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver and Gold Mines 4th Quarter and Full Year 2023 Conference Call and Webcast. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.

Operator

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

Speaker 1

Thank you, operator. Good morning, everyone, and welcome to the Avino Silver and Gold Mines Limited 4th Quarter and Year End 2023 Financial Results Conference Call and 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. On the call today, we have the company's President and CEO, David Wolfen our Chief Financial Officer, Nathan Hart our Chief Operating Officer, Carlos Rodriguez and our VP, Technical Services, Peter Lada. 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.

Speaker 1

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. The company does not intend to and doesn't 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 available on our website under the Investors tab, then click on Financial Statements, as well the full statements are available on Avina's profile on SEDAR Plus 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 from this conference call and webcast will be available on our website.

Speaker 1

Also, please note that all figures stated are in U. S. Dollars unless otherwise noted. Thank you. I will now hand over the call to Avino's President and CEO, David Wolfson.

Speaker 1

David?

Speaker 2

Thanks, Jen. Good morning, everyone, and welcome to Avino's Q4 year end 2023 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 Q and A. I will start with the discussion on operations, and then I will turn it over to Nathan Hart, Avino's CFO, to discuss the financial performance for the period. And then Jennifer North, our Head of Investor Relations, will present an overview of Q4 ESG initiatives.

Speaker 2

Please turn to Slide 5 as we go through the production results. Our Q4 and year end production results were released in mid January and are as follows: silver equivalent production was 558,000 silver production was 225,000 ounces copper production was £1,300,000 gold production 1400 ounces mill throughput was just under 144,000 tons. For the full year, our silver equivalent production reached a total of 2,400,000 ounces of silver equivalent. Although the grades and recovery rates were slightly lower than 2022, we did see positive increases as we moved into other blocks at the mine. We have made improvements in the mechanical equipment of the mill and expect recovery rates to improve along with grades as we move into higher grade zones in line with the projected mining sequence.

Speaker 2

December production saw a noticeable increase in grade and recovery and that the trend has continued into Q1 2024. For 2024, approximately 700,000 to 750,000 tonnes are planned for mill processing and will be sourced from both the Avino mine and stockpiles from La Preciosa. Based on the current metal prices, the company expects to produce between 2,500,000 2,800,000 ounces of silver equivalent. Our 5 year growth plan takes us from production of 2,500,000 to 2,800,000 ounces of silver equivalent in 2024 to between 8,000,000 equivalent by 2029. Continuing on to Slide 6, we will take a look at additional operational highlights.

Speaker 2

The total drilling completed in 2023 included 7,545 meters in 13 drill holes. Of particular note was our results reported in July where we announced the best drill intercepts best drill in company history. Hole ET-two thousand three hundred and nine highlighted 296 grams of silver equivalent over 57 meters of true width, including 407 grams of silver of over 3.43 meters true width of mineralization. The company budgeted exploration and evaluation expenditures for 2024 will be focused on regional exploration and further understanding of currently transporting the press dry tailings to the disused Avino open pit area. Moving on to Slide 7, we provide an update on our recent milestones.

Speaker 2

Firstly, the pre feasibility study on the oxide tailwinds project was completed and released in early February. This was an important key milestone for Avino on our path for growth. Additional highlights include net present value of US98 $1,000,000 pretax $61,000,000 post tax at a 5 percent discount rate and an IRR of 35% pretax and 26% post tax. The study also highlighted proven and probable mineral reserves, a first in Avino's long history of 6,700,000 tons of silver and gold grades of 55 grams per ton and 0.47 grams per per ton, respectively. The oxide tailings project is considered one of our 3 catalysts for growth as the future gold and silver production asset.

Speaker 2

Next steps include community engagement and environmental impact studies. However, La Preciosa is our absolute top priority. And secondly, after the end of the year, we're extremely pleased to announce that we had signed a long term land use agreement with the local community for the development of La Preciosa in Durango, Mexico. This achievement was pivotal for us and signals the start of a new era for Avino and the communities adjacent to the mine. And we are on a crucial step closer to putting La Preciosa into production.

Speaker 2

We were able to commence hauling of old surface stockpiles to our mill at the Avino mine for processing. The La Preciosa mine represents a key pillar in our transformational growth strategy as well as hosting a large endowment of silver and gold, which we expect to process for the years to come. Capital costs for La Preciosa in 2024 is expected to be between $3,000,000 to $4,000,000 and will include surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abadancia veins. Avino also has mining equipment necessary to commence operations at La Preciosa. The application for the environmental permit has been submitted by the company to the relevant authorities.

Speaker 2

A further permit will be submitted shortly after receipt of the environmental permit, which is required to commence construction of the portal, haulage ramp and mining of the Glorian Abadancia veins. Avino anticipates receiving these permits sometime in 2024. A press release dated February 28 is available on our website and includes a full list of updates. At this time, I will hand it over to Nathan Hart, Avino's CFO, to present Avino's Q4 and year end financial results. Nathan?

Speaker 3

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. Turning to Slide 8 now for a summary of the key financial highlights for the Q4 and full year 2023. The 4th quarter generated our highest quarterly revenue for the year, and we were able to demonstrate positive movements on the cost side, which translated to improved operating margins from the Avino mine. We had positive net income of $500,000 and adjusted earnings came in at $2,000,000 or $0.02 per share, both improved over previous quarters for 2023.

Speaker 3

Per ounce metrics also improved with cash costs and all in sustaining cash costs decreasing compared to Q3 and Q2, and we continued to generate additional operating cash flow from operations. Most importantly, our working capital position has improved significantly with working capital up to around $10,000,000 at the end of the year, almost doubling from where we were at the end of the second quarter. Coming to Slide 9, I'll walk you through the details of our financial results, some of which I did touch on in the highlights. Revenues came in at 12,500,000 dollars This was down from our Q4 2022 record of $14,600,000 However, as mentioned, it was the highest quarterly revenues for this current year. Revenues on the year were just shy of $44,000,000 very similar to 2022.

Speaker 3

Avino generated mine operating income of $2,600,000 for the quarter, including non cash, depreciation and depletion compared to $4,400,000 in Q4 of 2022. The decrease is a result of lower revenues as well as a strong pace of the U. S. Dollar rate when compared to Q4 in 2022. On a cash basis, mine operating income in the current quarter was $3,600,000 and represented a 29% cash operating margin.

Speaker 3

On the year, we generated $7,800,000 in mine operating income, which translated to $11,000,000 on a cash basis, for a cash operating margin of 25% for the full year 2023. Avino reported net income after taxes of $600,000 for Q4 compared to $1,300,000 in Q4 2022. Annual net income after tax was $500,000 compared to $3,100,000 for the full year 2022. Earnings per share came flat for both the quarter the year, decreasing from $0.01 in Q4 and $0.03 in the full year, both for 2022. EBITDA was $1,100,000 for the quarter and adjusted earnings was $2,000,000 both showing increases from Q2 and Q3 2023, albeit lower than the Q4 in 20 22.

Speaker 3

For the full year, EBITDA was $2,500,000 down from $10,000,000 in 2022. Adjusted earnings paints a similar picture with improvements on the quarter coming to the rest of 2023 at $0.02 per share generated in Q4 and 4,600,000 dollars or $0.04 per share generated on the year. Cash flow from operations for Q4 was $2,200,000 dollars before working capital adjustments compared to $3,100,000 in Q4 2022. On the full year, dollars 6,300,000 was generated from operations before working capital adjustments compared to $10,800,000 in 2022. Here on Slide 10, you can see our cash costs for silver equivalent payable ounce for the Q4 did show improvement coming in at $15 with the average on the full year being $15.61 This is a modest decrease from the $16.90 we saw in the Q3 and the $16.33 in the 2nd quarter with signs of stabilization materializing.

Speaker 3

All in sustaining cash costs per silver equivalent payable ounce followed a similar trend coming in at $21.67 and the full year being $21.87 per ounce. Again, the Q4 improved on higher costs seen in the second and third quarters. The Mexican peso has appreciated by 15% to 20% when comparing the 2023 to the 2022 average. While we've seen some stabilization on this front, this has had an impact on our cost throughout 2023 as the majority of our expenditures are incurred in Mexico with local suppliers, employees and contractors. As I highlighted on our Q3 call, we've put a number of measures in place for cost reduction, including lowering haulage rates to match mill throughput as we have generated a large ore stockpile over the last few months.

Speaker 3

As well, we have made certain administrative and auxiliary personnel reductions. This has had a positive impact on our 4th quarter results and we expect that to continue into 2024. Coming to Slide 11, you can see our cash cost per ton processed for the quarter came in above the yearly average at $61 per ton. All in sustaining cost per tonne processed was up as well for the quarter coming in above the yearly average. Increases on a per tonne milled basis are primarily a result of higher mining and haulage rates as we did mine 15% more tonnes than we milled in the Q4.

Speaker 3

In the Q1 of 2024, we have slowed mining rates to match the mill and have seen cost savings as a result on a per tonne basis as well as overall. Our expectation is that unit costs will continue to be lower in Q1, twenty eighteen, for and moving forward for the rest of the year. This point, I will now turn it over to Jennifer North, Head of Investor Relations, for an overview of our Q4 ESG and CSR initiatives.

Speaker 1

Thank you, Nathan. Moving on to slide 12, we have listed the ESG CSR initiatives that were completed in the Q4 of 2023. We added members to the CSR team in Durango during the Q3 and since then Anna and her team assembled to improve and strengthen the relationship with our neighboring communities and with each of our stakeholders. 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. One of our major objectives is to make a positive impact on our communities and society.

Speaker 1

Maintaining a friendly dialogue is key to learning, improving and maintaining strong relationships and developing trust as responsible corporate citizens. During Q4, the CSR team focused in the areas of education, infrastructure and environment and following the guidelines of the SDG, the team was able to accomplish the following. Firstly, they held meetings with government offices, mining chambers and associations and local Aji to authorities, keeping the lines of communication open. Moving on to Slide 13, you will see that the company delivered TV screens and tablets to the community schools for educational purposes and also provide a road maintenance and repairs. For the benefit of the women in the communities and to help develop economic benefit for the family, workshops and wreath making, food preparation and other handiwork were held that culminated in a Christmas bazaar in mid December where the women then sold their handmade crafts and food.

Speaker 1

For the benefit of the environment, Avino delivered trees, recycled containers, took water samples and provided health and well-being education in the communities. These initiatives aligned with the SDG guidelines of partnerships for the goals, peace, justice and strong institutions, quality education, industry innovation and infrastructure, no poverty, 0 hunger, life on land and clean water to social responsibility. One of the top priorities for Avino is to provide jobs to those in the surrounding communities with the goal of fostering generations of enthusiastic and dedicated ambassadors of Avino. Our ambition is to educate a younger population to their backyard to encourage them to see the benefits of mining and dream of a future where they can have a real career close to home. Currently, we have 448 direct jobs, which includes the workers at the mine site and in our Durango offices.

Speaker 1

This number of jobs will typically translate to 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities in the Durango area. I will now turn it back over to David to continue on with the presentation providing our plans for the coming quarter. David?

Speaker 2

Thanks, Jen. Moving to Slide 14. We are well into the Q1 of 2024, and our current focus is moving forward with our plans for the Gloria and Abundancia veins at La Preciosa with of flow generation from the Avino mine as we look to future development of our 100% owned La Preciosa property. As shown on Slide 15, we want to reemphasize that the company's plans for growth. We have 3 assets within a 20 kilometer footprint, totaling 100 of millions of silver equivalent mineral resources on the same area.

Speaker 2

We have an operating mill complex, which is currently producing from our Avino mine. Additionally, access to water, power and tailing storage, all ingredients to grow organically without major capital investment required that would expect if we were starting from scratch. As you can see on the slide, our goal is to scale up by 2029 through production from these three assets. We would now like to move the call to question and answer portion. Operator?

Operator

Thank you. We will now begin the question and answer session. Our first question comes from Jake Sekelsky of Alliance Global Partners. Please go ahead.

Speaker 4

Nathan, so you mentioned the impact of a stronger peso during 2023. Can you just touch on your exposure here going forward? And maybe what FX rate you're using in the Sears budget?

Speaker 3

Yes, it's a fair question. I think given what we've seen throughout 2023, obviously we've seen some stabilization in the peso, although some recent little movements or littler movements compared to what we saw last year. We're forecasting and using our budgeting for 2024. We were hoping for a bit better and it is an election year in Mexico, but we've adjusted our expectations and we're using fairly close to what is the current rates and making sure that we're protected and ready to deal with the impact of the peso given all of the operations in Mexico.

Speaker 4

Okay, that's helpful. And then just on timing at La Preciosa, can you maybe walk us through the ramp up and timeline to processing fresh material once those environmental permits are enhanced? And maybe just on the longer term throughput target?

Speaker 3

Yes. Sorry, Jake, you're coming a little quiet.

Speaker 2

Yes. It's a little muffled. It looks like, I mean, we're hoping if all goes well with the permitting and the ramp going to level 2 of Gloria and Avendacia, possibly by the end of the year, we could have fresh ore coming out of the mine. So we're very optimistic. And then you can see in the graph, the contribution that we're expecting going forward.

Speaker 2

Yes.

Speaker 5

Jake, just to comment on that as well. We are processing we will be processing stockpiles that we've moved. So there is a substantial amount of material that we've moved from La Preciosa to Avino. And we've been running test work on that and we will be processing that hopefully in Q2. So that's really exciting from our standpoint because we get a chance to run the actual material through the mill, see how it performs and get some revenue from it.

Speaker 5

Yes.

Speaker 3

And as we mentioned in our 2024 outlook, we actually are not we have not budgeted for any fresh production from La Preciosa. We're hopeful of it, but we've just budgeted for processing of the stockpiles.

Speaker 4

Okay. So anything that comes in for 2024 as far as fresh material would be incremental to what you guys are looking at right now.

Speaker 3

Yes, that's fair to say.

Speaker 4

Okay, very good. That's all for me. Thanks again.

Speaker 2

Thank you. Thank you.

Operator

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

Speaker 2

Please go

Speaker 6

ahead. Hey, Derek. Can you hear me all right?

Speaker 2

Yes. All right.

Speaker 7

Perfect. Thanks for taking my questions and also thanks to Jen for the ESG overview. I think it often gets forgotten how many indirect jobs mining provides to the local communities across the globe quite frankly. We were doing a little bit of longer term cost analysis on a ton basis today. I mean, with costs in the Q trending lower, I want to see if you have a bit of guidance in regards to the longer term estimates for costs and how sticky you think this current pricing is in 2025 beyond?

Speaker 7

In other words, if you think how much more you can gain from cost advantages in the longer term?

Speaker 3

Yes, I think, that's probably a question for me. Are you talking about metal prices specifically or like the foreign exchange rates or inflation or is it all of

Speaker 2

the above? All in sustaining, yes.

Speaker 7

I meant all of the above, but if you're able and willing to break it home by line item, that'd be even better.

Speaker 3

I mean, we could maybe do that one offline. But I think in general terms, we're moving forward with the cost that we're seeing now from our suppliers, for labor, etcetera, from the impact of the peso. We're hopeful for improvements. We think the peso will probably have some fluctuations throughout the year. Again, I mentioned being an election year, then offset maybe by the near shoring going on with Mexico.

Speaker 3

But from a long term cost perspective, I think La Preciosa, we expect to change our cost profile. And I think we've made that message pretty clear to the market, that once we're able to get in and develop and start production mining, is going to be some economies of scale realized on the cost front. It's a bit tough to look further beyond 25%, 26%. I think we do provide some rough looks in our presentation at where we think it's going to go. But we do expect costs from a consolidated basis on a per ounce basis to come down over the next 2, 3 years for sure, especially as we move and mix La Preciosa into our mill.

Speaker 2

Yes. If you look at the grades, when we do the bulk sample, you'll see the grades are probably 20% higher than what we're mining now. I mean, we won't be doubling the tonnage, but there'll be a mix in there going forward. So expect that to lower our cost.

Speaker 3

Yes. As David mentioned, we've got this higher grade silver mine that's going to come online fairly quickly here and mixing that into our current mill feed mix, that should help on the cost side as well as both the ounce production side.

Speaker 7

Very comprehensive answer. Thank you. And then just building on that a little bit, you expect $3,000,000 to $4,000,000 in capital costs at La Preciosa this year. As per your release, this is mostly surface works and equipment procurement for first phase of mine development. It also states that you have the needed equipment already.

Speaker 7

I assume it's just sitting around the Vino mine. Two quick questions on this. Can you break down the $3,000,000 or $4,000,000 into the different components? How much of that is equipment procurement? How much of that is surface works?

Speaker 7

And also moving on what I was just saying, is this equipment actually sitting around? You know what, I remember once I was at a site visit down there and they essentially had a new drill bits sitting in a storage area just waiting to be used. Is there something like that at site right now where you're keeping equipment just waiting?

Speaker 3

So maybe I'll take the second question first. We don't have equipment sitting idle. I think that's not kind of what we were intuiting by that. We have equipment that's in use at Avino that can be moved over La Preciosa to start the development and the first phase of production mining. However, once we want to ramp up with throughput and move and try and increase the tonnage, we will need more equipment and we have to start that procurement process over the next number of months in order to make sure that we get the lead times in for when we hope to start production mining at a bit of a higher scale.

Speaker 3

So no, to answer that question, there is not equipment sitting around idle. I think we're obviously we've got we're processing a lot of tons at Avino and that does require a fair bit of equipment these days. So hopefully that answers that question. And moving back to the first one, dollars 3,000,000 to $4,000,000 and how that's broken out. I would say not a lot of it is equipment procurement.

Speaker 3

We're getting some pretty favorable terms on our leased equipment through our good partners at Caterpillar and other partners as well. They're providing favorable terms such as no lack no deposits, nothing paid upfront and perhaps even not paying for a number of months. So that does help. So I'd say the most majority of it

Speaker 2

is going to be for We're not using them so much because we're mining. So we have mining jumbos. We're not using them so much because we're mining. So we have mining jumbos, which we'll need at some point as a precious But right now, we've got Odenbergs we can send over there.

Speaker 6

Yes.

Speaker 3

So I hope that answers the question,

Operator

Our next question comes from Joseph Reagor of ROTH MKM. Please go ahead.

Speaker 8

So

Speaker 4

the other guys, Pete, you said question about what Fresciosa, so just going to ask some boring accounting questions. Looking at kind of the Q4 results, how much of kind of the revenue upside there was related to inventory drawdown versus provisional pricing adjustments. And there seems to be a bit of volatility around revenue quarter to quarter outside of like treatment charges and whatnot, but just from that inventory swing that occurs in the provisional pricing, is there any way for you guys to provide what I would say maybe better sales numbers with your production results to make the numbers more accurate into the quarter?

Speaker 3

Yes, I think we saw some of that variability in the 1st couple of quarters, but I think Q3 and Q4 were fairly flat and didn't see quite as much variability. Obviously, with there were some decent swings in metal prices in the last 6 months too, both ups and down obviously. So that's when original pricing comes in and has been more of an impact. But I think from a volume and a tonnage and a total revenue, I mean the last couple of quarters are fairly consistent. And we're based on our expected sales volumes for 2024, I think each we're expecting consistent quarter.

Speaker 4

Okay. And I think one of the things you guys provide is like ounces produced versus payable silver equivalent ounces sold and there was a bit of a positive variance there this quarter. Is that just normal quarter to quarter timing of sales?

Speaker 3

Yes, a little bit. Some I think in the previous quarter, we had going the other way or especially in Q2, we had to go in the other way. And so, yes, like you mentioned, there is a bit of movement there sometimes and some of that is a result of settlement.

Speaker 4

Okay. All right. Thanks for the color on that. I'll turn it back over.

Operator

Our next question comes from Matthew O'Keefe of Cantor Fitzgerald. Please go ahead.

Speaker 6

Thanks, operator. Good morning. Two questions for me. First up on the 2020 4 guidance. I mean, you put out a little bit ago, you gave some rough guidance of 2,500,000 to 2,800,000 ounces for 2024.

Speaker 6

That will be a fair jump from what you ended this year with. So could you break down how much of that will be from the La Presse Uis broken ore and how much of that will be from the Avino mine presumably increased grades and throughput? And what's really changing there? Is it expected to be grades or throughput?

Speaker 3

Yes, I'll take that one. I think it's going to be mostly Avino. I think we're not expecting a huge contribution from La Presiosa. We're using the stockpiles to better understand how it's going to go through our mill, but also obviously we're going to get some revenues and some positive announcements out of that as well too and some cost recovery. But I think we're expecting 90%, 95% of that to come from Avino and I think we put out our tonnage guidance as well too and you can see between 700,750,000 and we produced about 615 last year or milled 615,000.

Speaker 3

So we are expecting improvement. And that just comes with some better equipment on-site to deal with, breaking ore, us having a fairly larger stockpile at the end of the year, which I think we talked about throughout the call as well too. And just expecting that we're going to produce closer to that 2,500 tonnes per day run rate and get up to 700,000, 750,000 tonnes throughout the year. So grade in some months is better than others, but overall throughout the year, we're not expecting a huge movement from last

Speaker 6

year. Okay.

Speaker 5

On that note, Matt sorry Matt, on that note, last

Speaker 3

year was the first time

Speaker 5

we ran the full mill throughput with ET material. So it's a bit of a learning curve for us last year and we hope to take those learnings and apply it to this year, which explain some of the increase.

Speaker 6

And then just you did you had you passed some pretty significant milestones this year, I would say. You produced the oxide tailings PFS, which was very positive, more to come on that. And then with La Prairie CSC, you now have your land use agreement, you'll be able to access ore, which will I guess we'll see more contribution from that next year. Are we still looking for a sort of a 5 year plan to expand production to the 7,500,000 to 9,000,000 ounce silver equivalent range?

Speaker 2

Absolutely.

Speaker 3

Okay. Yes, I just I didn't mention

Speaker 5

about it,

Speaker 3

maybe I didn't

Speaker 2

mention that. Focus is La Prairie X Yossa right now, get that up and running. And then community engagement on oxide tailings, environmental studies and that kind of thing. So that won't be the last expansion. But you'll see a big impact from La Preciosa.

Speaker 2

Hopefully, we get the permit soon.

Speaker 6

Okay. And will there be a I guess, you'll produce more guidance as to what to expect from La Freschiosa proper some throughout 2024 into 2025. Is that a fair timeframe?

Speaker 3

Yes, that's fair to say. I think we want to get obviously all the ducks in a row with permitting and everything in place and start the development decline and get into production and then we'll provide a bit more color on the expected tonnages and ounces for and I think that will be closer for moving for 2025 projections, because as we mentioned, 2024 we're not budgeting for any production.

Speaker 2

The permitting dictates the timing. Yes.

Speaker 4

That's correct.

Speaker 6

And that's going okay?

Speaker 2

It's going fine.

Speaker 6

Okay. Thanks very much.

Speaker 2

Yes.

Operator

Our next question comes from Rod Douglas, Private Investor. Please go ahead.

Speaker 8

David, would it be safer to say that the land use permit was easier to get than the environmental permit?

Speaker 2

The land use permit You

Speaker 5

mean the community engagement, the community support, community approval you mean?

Speaker 8

At La Precios.

Speaker 3

At La

Speaker 6

Precios, is

Speaker 4

that correct?

Speaker 8

Yes, that's right.

Speaker 2

I wouldn't say either way, either way. How do I know what's easier? I mean these things take time. We don't expect any delays on the permitting. Yes.

Speaker 3

I think the land use agreement took a long time, obviously, just with we want to get things right for the long term. That's it.

Speaker 2

But that but we had to explain to them, we were planning a giant open pit that Koo was planning. So it took a while to go around to the various communities and let them know what our impact is, and it's going to be a very low impact. Yes.

Speaker 5

Sorry, to answer your questions, they're different groups of people and they require kind of a different approach.

Speaker 8

Right. But you don't really expect any problems. You think that this is going to proceed smoothly. You don't see any. The reason why I made the investment in Avino is because I am encouraged by the underground.

Speaker 8

I see that I live in Mexico, so I see the problems other operators have getting permits for open pit.

Speaker 2

Yes. Agreed. This is a satellite deposit, so it's a very small footprint. The locals, we were in there, management was in there from headquarters. And we've met with the leaders, and they're thrilled about the potential of the economic impact of that region.

Speaker 8

Yes. Well, like I said, it

Speaker 2

seems like it is a Having the Ahedo agreement is the key to getting the environmental permit because the environmental authorities want to know that the local region is in favor, and they are.

Speaker 8

Yes. Well, that's why I made my investment in Avino because I've seen that you've been around for a long time and you've spent a lot of money on the ESG, which in the end, you can't underestimate that. It's not an easy thing to do.

Speaker 3

Absolutely. Thank you. We appreciate the confidence.

Speaker 5

And thank you for your investment.

Operator

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

Speaker 2

Thank you everybody for your time today. We're excited about the future of Avino. The shares have already started to creep up. Metal prices are looking strong. The core block is behind us now and redistributed into strong hands.

Speaker 2

We've got a silver ETF that picked up several million shares. So you can see that translated in our liquidity. So it's translating into a very productive year. And with La Preciosa coming online, hopefully very soon, that's going to really help. So thank you again, and have a great day.

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Earnings Conference Call
Avino Silver & Gold Mines Q4 2023
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