Avino Silver & Gold Mines Ltd.

Thank you for standing by. This is the conference operator. Welcome to the Avino Silver and Goldmine's Q3 2021 Financial Results Conference Call. 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 one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator 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 Goldmines Limited Q3 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 of 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 applied 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 is 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 that 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 Avino's President and CEO, David Wolfen. David?

Thanks, Jan. Good morning, everyone, and welcome to Avino's Q3 2021 Financial Results Conference Call and Webcast. Thank you for joining us. Before we begin, please note that the full financial statements and MD&A are now available on our websites. On today's call, we will cover the highlights of our third quarter 2021 financial and operating performance, our plans for the fourth quarter, as well as recent announcement on the acquisition of La Preciosa project and what that means for Avino, and then we will go open it up for questions. Please note that all figures are stated in U.S. dollars unless otherwise noted. During the third quarter, we focused on finalizing work and activities at the mine site leading up to recommencement of operations, which was announced on August 3rd. We were extremely pleased to restart operations and it is because of the hard work of the team in Mexico that it came to fruition. The work included hiring mine personnel and reestablishing the mill circuits. In addition, in early July, we announced initial drill results from phase one of the campaign. There were significant grades received At each location, we had results from El Trompo, Santiago, and La Malenche veins. At the end of September, 12,179 meters of drilling was completed, and as of today, we've drilled 13,427 meters. For the quarter, there was 4,931 meters drilled. The main areas for the third quarter of exploration included La Potosina with 601 meters, the oxide tailings with 1,931 meters, and the Aveeno vein with 2,399 meters. ASSE results are pending due to the long turnaround times at the laboratories and will be released once received and interpreted. Based on historical mapping of the oxide tailings, we've completed the drilling at the required spacing to move the project to the first steps of commencing a pre-feasibility study. During the third quarter reported an increase in production compared to Q2 2020, which was the most recent quarter of production. The production came primarily from the Aveeno mine. We are currently mining and milling from the Aveeno mine only. As part of the ramp up of operations, we did also process just over 10,000 tons of historic above ground stockpile material. Production from this material totaled 15,784 silver equivalent ounces consisting of just over 9,300 ounces of silver, 58 ounces of gold and 12,500 pounds of copper. There are no other comparable production from Q2 2020 from historic above ground stockpiles. The Aveeno Mine production highlights are as follows compared to Q2 2020. Silver equivalent production increased 70% to just under 270,000 ounces. Copper production by 46% to 673,000 pounds. Silver production increased by 36% to 68,600 ounces. Gold production increased by 179% to 1,125 ounces. The consolidated production was as follows. 285,000 silver equivalent ounces consisting of 78,000 ounces of silver, almost 1200 ounces of gold and 686,000 pounds of copper. Also in the quarter, we continue progressing the dry stack tailing storage facility, TSF number two. With expected completion in the first half of 2022, we've been working on the mill recovery upgrade to circuit four. and mill automation project to increase productivity and recoveries. In addition, the company has been training a local workforce at the mine as it endeavors to support nearby towns and strengthen the collaboration between the surrounding communities and the company. As a major employer in the area, it is important that there is a steady group of trained mine workers available as we ramp up production. The training programs are aimed at increasing inclusion and diversity, as well as fostering opportunities for both women and men. With this objective in mind, the company is pleased to have trained its first female Scooptown operator. The company is currently debt-free, having made the final payment on its $10 million term facility with Samsung during the quarter. I will let Nathan touch on that shortly. On October 27th, We were extremely excited to announce the acquisition of La Preciosa to the market. I have always believed that Aveeno and La Preciosa belong under a common ownership given the clear synergies and common infrastructure. La Preciosa is an excellent strategic fit within Aveeno's existing operations and further strengthens our presence in Durango by adding not only a large, high-quality silver development project with near-term production potential to our portfolio, but also increasing our mineralized exploration concessions by more than sevenfold to over 7,000 hectares. Work is already underway to determine how to best integrate La Preciosa into Aveeno's production operations, given the proximity to the current processing facility and infrastructure. We expect a large portion of the existing La Preciosa resource It could be mined via underground operations to potentially improve Aveeno's production and organic growth profile. This is important transformational transaction for Aveeno. The strategic, financial, and operational advantages are as follows. Elevates Aveeno's potential as a silver producer and developer. Unique operational synergies due to La Preciosa's strategic location with our boundaries within two kilometers of each other. Positive results from initial metallurgical test work reduces development timeline and risk, reduces environmental footprint, substantially increases Aveeno's silver and silver equivalent mineral resources by increasing Aveeno's consolidated NI4311 mineral resources to over 235 million ounces of silver equivalent. enhances Aveeno's already robust land position in Durango, presents exploration upside potential at La Preciosa. Looking at other junior comparable companies, this acquisition should elevate Aveeno within the silver sector. The transaction repositions Aveeno as a silver producer, boasting one of the largest endowments of measured and indicated silver resources. We believe our shares are well positioned for evaluation re-rating. There are going to be exciting times ahead as we continue to create growth in Mexico. Our ESG initiatives continue to move forward as we incorporate principles of sustainability and social responsibility. During the third quarter, as I mentioned earlier, the company has been training a local workforce at the mine. Other ESG initiatives completed during the quarter include school supplies were delivered to the schools in the local communities for all children from kindergarten to middle school, supplied cleaning kits for the schools in our three main communities, helped maintain a clean and safe environment for students, assisted the community of Panuco de Coronado community to fix roads that were damaged due to the rainy season. Aveeno has been invited for the first time to participate in the Francisco Madero Parade. This is a local town fair. Supported Panuco's middle school to reestablish electricity after technical issues. Supporting the community of Zaragoza and Aveeno with local waste dump cleanup. Provide ongoing yearly road maintenance within the town streets of our communities. Frequent communications with the mayor of Francisco Madero and the AHEDO representatives to maintain good relationships. We are committed to growing in a sustainable way that supports the well-being of our communities and the environment in which we operate. We also continue to believe that the outlook for silver is positive. The green energy revolution is building steam and is showing an increased demand for silver. As Canada, the US, and many other countries have all set net zero pledges for 2050, this will in turn create huge demand for silver. Industry experts expect demand to reach a billion ounces by 2025, as silver is one of the industrial metals that will be needed in manufacturing of electric vehicles, solar panels, electronics, and medicine, just to name a few. To achieve these ambitions, we need more metals And this is where mining comes in. To meet this demand, more mines need to be discovered, permitted, financed, and developed. What do we think this means for silver miners? We will see a rise in stock prices as demand for metal grows in several green energy applications. The best leverage to metal is owning producers. At Aveeno, we are targeting 2022 production. between 2.5 to 3 million ounces of silver equivalent and estimating all unsustaining cash costs at pre-COVID levels. We expect to generate significant operating cash flow next year, which we plan to reinvest in exploration and further mine development. Current producers will become much larger companies as profits grow from higher price pressure. With the recent acquisition of La Preciosa, we will be able to supply the silver for many years to come. I will now ask Nathan Hart, Avino's Chief Financial Officer, to present the financial results for Q3 2021.