Avino Silver & Gold Mines Ltd.

Thank you for standing by. This is a conference operator. Welcome to the Aveeno Silver and Goldmine's first quarter 2021 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. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal and operate it by pressing star and zero. I would now like to turn the conference over to Jennifer North, Manager of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to the Avino Silver and Gold Mines Limited Q1 2021 Financial Results Conference Call and Webcast. 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 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. 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 accompanying this call or on our press release of yesterday's date. I would like to remind everyone this conference call is being recorded and will be available for replay later today. Replay information and the presentation slides accompanying this conference call and webcast will be available on the website. Thank you. I will now turn the call over to Aveeno's President and CEO, David Wolfen. David?

Thanks, Jen. Good morning, everyone, and welcome to Aveeno's Q1 2021 Financial Results Conference Call and Webcast. Thanks for joining us. Before we begin, please note that the full financial statements and the MD&A are now available on our website. On today's call, we will cover the highlights of our first quarter 2021 financial and operating performance and our plans for Q2 2021, and then we will open it up for questions. Please note that all figures are stated in U.S. dollars unless otherwise noted. It's hard to believe that it has been more than a year since we were first faced with the pandemic and the forced operational shutdowns. As I mentioned during our previous quarter and year-end call, I would like to say a special thank you to the management team in Mexico, led by Carlos Rodriguez, who adapted quickly and carried out critical tasks at the mine to ensure the safety of our employees and surrounding communities. In addition, I would like to extend my appreciation to our shareholders for their support and patience during last year while we experienced the temporary shutdowns due to COVID-19 and the temporary shutdown due to the strike at the mine. The 12-week strike lasted from July to October 2020. As the Labor Authority Office of Mexico City remains closed due to COVID-19 protocols, the company is working diligently with its partners to ratify the agreement. The company is committed towards restarting production and mining operations as soon as possible. Mining in Mexico in general was significantly interrupted last year as a result of COVID-19, with most mines and projects suspended for a number of months before resuming operations under strict health guidelines. Global production of silver declined in 2020 by 5.9% to hit 784 million ounces, as reported by Metals Focus. However, global production is expected to rebound strongly in 2021 with an increase estimated at 8.2% to 848 million ounces. According to the Chamber of Mexico, sector-wide investment fell 50% compared to pre-COVID estimates, dropping from $5 billion to $2.5 billion. However, the industry is set for a rebound in 2021. with many companies announcing increased investment in projects across Mexico. This also goes for Aveeno. As we announced during the first quarter, an increase in our capital expenditures and exploration budget from $6 to $8 million up to between $9 and $11 million. Additionally, hiring has begun for experienced mine workers at site. We are definitely moving closer to a recommencement of operational activities, Our goal is to ensure that we reopen properly with all guidelines, including labor and health in place. During the quarter, the 2021 drill program remained a top focus with the objectives of locating new mineralized zones within the property and to confirm continuity of mineralization in the current Aveeno ET production area. At the end of Q1, 1,870 meters were drilled at Santiago and El Trompo veins. Also in the corridor, we continued moving forward with the proposed dry stack tailing storage facility, TSF number two, which is on privately owned Aveeno land, is permitted and is currently in a final stage prior to commencing construction. We expect this project will now be completed during Q4 2021, and it should add an additional 8 to 10 years of tailing capacity based on the current mill throughput rate. We chose dry stack tailings for its environmental safety and economic advantages with its high solids content. This significantly improves safety and stability and reduces the need to extract water from local sources by recycling the water removed from the tailings. In addition, it requires less land, which in turn results in smaller environmental footprint. Over the years, we have been proactive in developing a partnership between Aveeno and the people of Durango and the four communities surrounding the mine site. We are pleased to announce that Aveeno has just recently hired an ESG manager in Durango to help drive ESG initiatives forward and contribute to the operational continuity of the business under the principles of sustaining and social responsibility. During the quarter, we have helped in many ways, including supported the town of San Jose de Avino by loaning our cat dozer, paying for the fuel and operator time to help expand the town cemetery. We provided multiple bags of cement to fix access roads in the town, provided information to the communities on the safety of dry stack tailings, and we'll follow up again with the new ESG manager. Even though we still have not recommenced operations, the communities surrounding the mine site know that Aveeno will lend a supportive hand when needed. In addition, we have received PPE and hundreds of rapid tests to ensure the safety and good health of our workforce. Avino is the only source of employment in the area, and once we are fully operational again, we will provide steady employment to the people of the Durango and nearby communities. Many people in the communities are keen to get back to work at the mine, and Avino has the full support of the local and state governments. The restart of production activities is expected to provide significant direct economic benefits and stimulus for the local communities. During the first quarter, silver was a bit slow to move with an 8.2% decrease compared to the full year 2020. The price ranged from a low of $24.67 on March 25th to a high of $29.59 on the 1st of February. Coincidentally, this was the day of the Reddit propelled silver squeeze. Gold prices ranged from a low of $16.83 on March 30th to a high of $19.43 on January 4th. The metal prices have continued to be volatile with silver currently in the low 27 range and gold staying slightly above 1800 level. With rapid transition to clean technology being legislated in the USA, silver and gold will be in demand and we expect both will shine. Not to be overlooked is the price of copper. It has been on a tear. and will play a key role in the new green economy. This is definitely worth mentioning for Aveeno as copper makes up at least a third of our revenue contribution when in production. Last quarter, copper was sitting around 350 per pound, and now it's closing in on 475 per pound. The copper price is steadily moving upward on a low inventories and anticipated rebounds of the global economy. growth of industrial activity, strong demand by China, clean energy drive, global vaccination rollout, and a weaker U.S. dollar. We believe that the push towards a green economy and the fact that we mine metals needed will certainly benefit our shareholders going forward. I wanted to touch briefly on February 1st's silver squeeze to propel the Veno share price to a high of $2.82 U.S. on a volume of $130 million on that one day. We all saw how the power of the Reddit traders and the social media drove up the price of silver and silver mining stocks that day and created a trading frenzy. We look forward to growing demand from these new investors and increasing the diversity of our shareholder base. We encourage our shareholders, new and long-term, to check out our website, often for news releases, presentations, and all public information. I will now ask Nathan Hart, Aveeno's Chief Financial Officer, to present the financial results for Q1 2021. Thank you, David.