A highly leveraged silver play in Mexico that is increasing production

POSTED ON February 03, 2015 BY James Fraser
CATEGORY Avino Silver & Gold Mines, Interviews,

Avino Silver & Gold Mines (ASM:TSXV) is a growing low cost silver, gold, and copper producer in Mexico.

The company is focused on the historical Avino mine which operated continuously between 1974 and 2001 before closing due to low metal prices. Avino now has two operating mines, the San Gonzalo Mine and the recently reopened Avino Mine. Avino is a lower cost producer thanks to a high grade feed of silver (~300 g/t) and gold (1.85 g/t).

Avino recently purchased the Bralorne mine in British Columbia and hopes to use the same business model used in Mexico operations to increase production.

CEO.ca talked to Charles Daley, Corporate Communications at the recent Vancouver Resource Investment Conference. Mr. Daley tells investors Avino is set up for significant production growth in 2015 while hoping to lower costs.

The following is a transcript of the above video.

Charles Daley, Corporate Communications, Avino Silver & Gold Mines, Cambridge House transcript:

Well with Avino there is a story where there is not a lot of variables. We have got an operating mine, a good resource, we are a low cost producer, and we are making money.

The only challenge that we are facing is basically something we can't control and what nobody else in this room can control and that is the price of silver.

We are a low cost producer right now. We are averaging about $13 an ounce silver equivalent during 2014.

In 2015, we have got the main Avino Mine back online. We are going to be producing significantly more so we are hoping to lower our costs even more with economies of scale.

We are looking at expanding from 1.3 million (ounces) to approximately double that this year. Ultimately our goal is to continue to expand and to continue to lower our costs both at our Mexican property and through strategic acquisitions.

Late in 2014 we acquired the Bralorne gold mine here in British Columbia. Our goal there as well is to expand the operation and lower the costs. Have a much more streamlined efficient operation with new equipment.

Basically implement the same sort of model that was so successful in Mexico here in British Columbia.

What sets us apart from a lot our peers is the fact that we have been there for a long time. The company was founded in 1968 and the fact that we have been around so long has enabled us to create all sorts of long term long standing relationships within the communities. We have a tremendous amount of support there.

In the coming year we are going to have a lot more leverage than most of our peers. Just due to the fact that we are going to be increasing our production by such a substantial margin. With the increase in production and a rising silver price there are not going to be many companies out there that are going to provide that sort of leverage.

We are built for bear in the sense that we are a low cost producer. Silver could go lower than it was today, lower than it was last year and we would still be making money

This is not a solicitation to purchase or sell securities. Always do your own due diligence. Additionally, this video and article may contain forward looking statements.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

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