EX-99.1 2 avino_ex991.htm FINANCIAL STATEMENTS

avino_ex991.htm

EXHIBIT 99.1

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2020 and 2019

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MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The condensed consolidated interim financial statements of Avino Silver & Gold Mines Ltd. (the “Company”) are the responsibility of the Company’s management. The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and reflect management’s best estimates and judgments based on information currently available.

Management has developed and is maintaining a system of internal controls to ensure that the Company’s assets are safeguarded, transactions are authorized and properly recorded, and financial information is reliable.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities. The Audit Committee reviews the results of the annual audit and reviews the condensed consolidated interim financial statements prior to their submission to the Board of Directors for approval.

The condensed consolidated interim financial statements as at March 31, 2020, and for the periods ended March 31, 2020 and 2019, have not been audited by the Company’s independent auditors.

“David Wolfin”	“Nathan Harte”
David Wolfin	Nathan Harte, CPA
President & CEO	Chief Financial Officer
May 6, 2020	May 6, 2020

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in thousands of US dollars)

		Note			March 31, 2020				December 31, 2019
					(unaudited)
ASSETS
Current assets
Cash					$	6,698			$	9,625
Amounts receivable						595				1,477
Taxes recoverable		4				5,316				5,483
Prepaid expenses and other assets						491				594
Inventory		5				5,440				5,592
Total current assets						18,540				22,771
Exploration and evaluation assets		7				9,902				9,827
Plant, equipment and mining properties		9				35,396				35,658
Long-term investments		6				3,581				4,311
Other assets						1				4
Total assets					$	67,420			$	72,571
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities					$	3,460			$	4,907
Amounts due to related parties		10(b)				193				156
Taxes payable						-				46
Current portion of term facility		11				3,375				3,384
Current portion of equipment loans						217				199
Current portion of finance lease obligations						505				692
Other liabilities						39				178
Total current liabilities						7,789				9,562
Term facility		11				1,672				2,513
Equipment loans						18				90
Finance lease obligations						354				442
Warrant liability		12				574				1,579
Reclamation provision		13				1,245				1,524
Deferred income tax liabilities						2,891				2,938
Total liabilities						14,543				18,648
EQUITY
Share capital		14				96,312				96,396
Equity reserves						9,365				9,391
Treasury shares (14,180 shares, at cost)						(97	)			(97	)
Accumulated other comprehensive loss						(5,461	)			(4,563	)
Accumulated deficit						(47,242	)			(47,204	)
Total equity						52,877				53,923
Total liabilities and equity					$	67,420			$	72,571

Commitments – Note 17

Subsequent Event – Note 21

Approved by the Board of Directors on May 6, 2020:

Gary Robertson Director David Wolfin Director

The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

(Expressed in thousands of US dollars, except per share amounts - Unaudited)

					Three months ended March 31,
		Note			2020				2019
Revenue from mining operations		15			$	7,116			$	6,711
Cost of sales		15				6,273				6,655
Mine operating income						843				56
Operating expenses:
General and administrative expenses		16				808				728
Share-based payments		14				168				218
Income (loss) before other items						(133	)			(890	)
Other items:
Interest and other income						173				139
Gain (loss) on long-term investments						(293	)			2
Fair value adjustment on warrant liability		12				919				188
Unrealized foreign exchange gain (loss)						(770	)			78
Finance cost						(87	)			(32	)
Accretion of reclamation provision		13				(27	)			(26	)
Interest expense						(10	)			(22	)
Loss from continuing operations before income taxes						(228	)			(563	)
Income taxes:
Current income tax expense						(51	)			(144	)
Deferred income tax recovery						47				168
Income tax recovery (expense)						(4	)			24
Net loss from continuing operations						(232	)			(539	)
Loss from discontinued operations and on disposal		3				-				(71	)
Net loss						(232	)			(610	)
Other comprehensive income (loss):
Currency translation differences						(898	)			586
Reclassification of foreign exchange on translation into net loss on sale of discontinued operations						-				-
Total comprehensive loss					$	(1,130	)		$	(24	)
Loss per share from continuing operations		14(e)
Basic					$	(0.00	)		$	(0.01	)
Diluted					$	(0.00	)		$	(0.01	)
Loss per share		14(e)
Basic					$	(0.00	)		$	(0.01	)
Diluted					$	(0.00	)		$	(0.01	)
Weighted average number of common shares outstanding		14(e)
Basic						77,267,533				64,020,965
Diluted						77,267,533				64,020,965

The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Changes in Equity

(Expressed in thousands of US dollars - Unaudited)

		Note			Number of Common Shares				Share Capital Amount				Equity Reserves				Treasury Shares				Accumulated Other Comprehensive Income (Loss)				Accumulated Deficit				Total  Equity
Balance, January 1, 2019						63,337,769			$	88,045			$	9,849			$	(97	)		$	(6,124	)		$	(16,505	)		$	75,168
Common shares issued for cash:
At the market issuances						1,678,076				1,043				-				-				-				-				1,043
Issuance costs						-				(39	)			-				-				-				-				(39	)
Options cancelled or expired						-				-				(227	)			-				-				227				-
Share-based payments						-				-				250				-				-				-				250
Net loss for the period						-				-				-				-				-				(610	)			(610	)
Currency translation differences						-				-				-				-				586				-				586
Balance, March 31, 2019						65,015,845			$	89,049			$	9,872			$	(97	)		$	(5,538	)		$	(16,888	)		$	76,398
Balance, January 1, 2020						76,592,388			$	96,396			$	9,391			$	(97	)		$	(4,563	)		$	(47,204	)		$	53,923
Common shares issued for services		14				675,145				-				-				-				-				-				-
Issuance costs						-				(84	)			-				-				-				-				(84	)
Options cancelled or expired						-				-				(194	)			-				-				194				-
Share-based payments		14				-				-				168				-				-				-				168
Net loss for the period						-				-				-				-				-				(232	)			(232	)
Currency translation differences						-				-				-				-				(898	)			-				(898	)
Balance, March 31, 2020						77,267,533			$	96,312			$	9,365			$	(97	)		$	(5,461	)		$	(47,242	)		$	52,877

The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in thousands of US dollars - Unaudited)

					Three months ended March 31,
		Note			2020				2019
Cash generated by (used in):
Operating Activities
Net income (loss)					$	(232	)		$	(610	)
Adjustments for non-cash items:
Deferred income tax recovery						(47	)			(168	)
Depreciation and depletion						649				685
Accretion of reclamation provision						27				83
Loss (gain) on investments						293				(2	)
Unrealized foreign exchange loss						375				8
Unwinding of fair value adjustment						(17	)			(50	)
Fair value adjustment on warrant liability						(919	)			(188	)
Share-based payments						168				218
						297				(24	)
Net change in non-cash working capital items		18				(870	)			1,089
						(573	)			1,065
Financing Activities
Share issuance costs						(84	)			1,004
Term facility payments						(833	)			-
Finance lease payments						(310	)			(205	)
Equipment loan payments						(54	)			(146	)
						(1,281	)			653
Investing Activities
Exploration and evaluation expenditures						(64	)			(1,562	)
Additions to plant, equipment and mining properties						(399	)			(891	)
Proceeds from sale of long-term investments						1,255				-
Purchase of long-term investments						(1,177	)			-
						(385	)			(2,453	)
Change in cash						(2,239	)			(735	)
Effect of exchange rate changes on cash						(688	)			9
Cash, Beginning						9,625				3,252
Cash, Ending					$	6,698			$	2,526

Supplementary Cash Flow Information (Note 18)

Cash flows from Discontinued Operations (Note 3)

The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

1.	NATURE OF OPERATIONS
	Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties. The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada and the United States, and trades on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges. The Company owns interests in mineral properties located in Durango, Mexico, as well as in British Columbia and the Yukon, Canada. On October 1, 2012, the Company commenced production of silver and gold at levels intended by management at its San Gonzalo Mine, and on July 1, 2015, the Company commenced production of copper, silver, and gold at levels intended by management at its Avino Mine; both mines are located on the historic Avino property in the state of Durango, Mexico.
2.	BASIS OF PRESENTATION
	Statement of Compliance These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting under International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual consolidated financial statements of the Company. These condensed consolidated interim financial statements do not contain all of the information required for full annual financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2019, annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB. These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value.  In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these condensed consolidated interim financial statements as if the policies have always been in effect. Significant Accounting Judgments and Estimates The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its unaudited condensed consolidated interim financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively. The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2020, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2019.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

Basis of Consolidation

The condensed consolidated interim financial statements include the accounts of the Company and its Canadian and Mexican subsidiaries as follows:

Subsidiary		Ownership Interest				Jurisdiction		Nature of Operations
Oniva Silver and Gold Mines S.A. de C.V.			100	%		Mexico		Mexican operations and administration
Nueva Vizcaya Mining, S.A. de C.V.			100	%		Mexico		Mexican administration
Promotora Avino, S.A. de C.V. (“Promotora”)			79.09	%		Mexico		Holding company
Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”)			98.45% direct 1.22% indirect (Promotora) 99.67% effective			Mexico		Mining and exploration

	Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the unaudited condensed consolidated interim financial statements.
3.	DISPOSITION OF DISCONTINUED OPERATIONS – BRALORNE GOLD MINES LTD.
	On December 13, 2019, the Company completed the sale of its 100% wholly-owned subsidiary Bralorne Gold Mines Ltd. (“Bralorne”) to Talisker Resources Ltd. (“Talisker”). The sale was record in the further quarter of fiscal 2019 and includes the Bralorne Gold Mine and is part of the Company’s plan to focus on its core mining operations in Mexico. The consideration included:

	·	C$8.7 million (translated to $6,599) in cash
	·	The issuance of 12,580,000 common shares of Talisker, representing 9.9% on a pro-forma basis following the close of the transaction and subsequent financing by Talisker;
	·	The issuance of 6,290,000 share purchase warrants exercisable at C$0.25 per share for a period of three years after the closing, subject to acceleration in the event the closing price of Talisker’s common shares is great than C$0.35 per share for 20 or more consecutive trading days at any time following April 14, 2020;

The sale includes the Bralorne claims, as well as nine mineral claims covering approximately 2,114 hectares in the Lillooet Mining Division of British Columbia, known as the BRX Property.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

As a result of the sale, net loss for the comparative three months ended March 31, 2019, have been reclassified from continuing operations to discontinued operations:

		Three months ended March 31,
		2020				2019
Revenue from mining operations		$	-			$	-
Cost of sales			-				-
Mine operating income (loss)			-				-
Operating expenses (income)			-				12
Accretion of reclamation provision			-				57
Gain on sale of assets			-				3
Other items			-				(1	)
Loss on disposition			-				-
Net loss before income taxes			-				(71	)
Income taxes			-				-
Net loss from discontinued operations and on disposal		$	-			$	(71	)

The results of discontinued operations included in the consolidated statements of cash flows for the three months ended March 31, 2020 and 2019, are as follows:

		Three months ended March 31,
Cash used in:		2020				2019
Cash flow used in operating activities		$	-			$	(12	)
Cash flow used in financing activities			-				(63	)
Cash flow used in investing activities			-				(1,484	)
Net cash decrease from discontinued operations		$	-			$	(1,559	)

4.	TAXES RECOVERABLE
	The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.

		March 31, 2020				December 31, 2019
VAT recoverable		$	2,980			$	2,652
GST recoverable			21				42
Income taxes recoverable			2,315				2,789
		$	5,316			$	5,483

5. INVENTORY

		March 31, 2020				December 31, 2019
Process material stockpiles		$	369			$	1,079
Concentrate inventory			3,633				3,055
Materials and supplies			1,438				1,458
		$	5,440			$	5,592

The amount of inventory recognized as an expense for the three months ended March 31, 2020 totalled $6,273 (March 31, 2019 – $6,655), and includes production costs and depreciation and depletion directly attributable to the inventory production process.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

6.	LONG-TERM INVESTMENTS
	The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:

		Fair Value December 31, 2019				Net Additions and (Warrants Exercised)				Movements in foreign exchange				Fair value adjustments for the period				Fair Value March 31, 2020
Talisker Resources Common Shares		$	3,197			$	1,184			$	(507	)		$	(293	)		$	3,581
Talisker Resources Warrants			1,114				(1,114	)			-				-				-
		$	4,311			$	70			$	(507	)		$	(293	)		$	3,581

7.	EXPLORATION AND EVALUATION ASSETS
	The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:

		Durango, Mexico				British Columbia & Yukon, Canada				Total
Balance, January 1, 2019		$	9,692			$	37,089			$	46,781
Costs incurred during 2019:
Mine and camp costs			-				2,537				2,537
Drilling and exploration			50				2,333				2,383
Depreciation of plant and equipment			-				317				317
Interest and other costs			-				325				325
Provision for reclamation			-				1,338				1,338
Assessments and taxes			90				31				121
Geological and related services			-				116				116
Assays			-				130				130
Water treatment and tailing storage facility costs			-				112				112
Effect of movements in exchange rates			(6	)			1,286				1,280
Disposition of Bralorne Mine (Note 3)			-				(45,613	)			(45,613	)
Balance, December 31, 2019		$	9,826			$	1			$	9,827
Costs incurred during 2020:
Drilling and exploration			19				-				19
Assessments and taxes			45				-				45
Effect of movements in exchange rates			11				-				11
Balance, March 31, 2020		$	9,901			$	1			$	9,902

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

Additional information on the Company’s exploration and evaluation properties by region is as follows:

	(a)	Durango, Mexico
		The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following four groups:

	(i)	Avino mine area property
		The Avino mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares. Within the Avino mine site area is the Company’s San Gonzalo Mine, which achieved production at levels intended by management as of October 1, 2012, and on this date accumulated exploration and evaluation costs were transferred to mining properties.
	(ii)	Gomez Palacio property
		The Gomez Palacio property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares.
	(iii)	Santiago Papasquiaro property
		The Santiago Papasquiaro property is located near the village of Santiago Papasquiaro, and consists of four exploration concessions covering 2,552.6 hectares and one exploitation concession covering 602.9 hectares.
	(iv)	Unification La Platosa properties
		The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concession described in note (i) above, are situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.  In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015. Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$250 during the year ended December 31, 2012. The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes. Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

(b) British Columbia, Canada

	(i)	Minto and Olympic-Kelvin properties
		The Company’s mineral claims in British Columbia encompass two additional properties, Minto and Olympic-Kelvin, each of which consists of 100% owned Crown-granted mineral claims located in the Lillooet Mining Division.

	(c)	Yukon, Canada
		The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property.

8.

NON-CONTROLLING INTEREST

At March 31, 2020, the Company had an effective 99.67% (December 31, 2019 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2019 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and accordingly have not been recognized in the condensed consolidated interim financial statements.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

9. PLANT, EQUIPMENT AND MINING PROPERTIES

		Mining properties				Office equipment, furniture, and fixtures				Computer equipment				Mine machinery and transportation equipment				Mill machinery and processing equipment				Buildings and construction in process				Total
		$				$				$				$				$				$				$
COST
Balance at January 1, 2019			12,962				149				358				17,257				17,603				6,710				55,039
Additions / Transfers			644				381				(6	)			(648	)			148				2,770				3,289
Disposals			-				(6	)			(12	)			(3,723	)			(231	)			(206	)			(4,178	)
Effect of movements in exchange rates			31				-				1				33				34				13				112
Balance at December 31, 2019			13,637				524				341				12,919				17,554				9,287				54,262
Additions / Transfers			21				2				2				26				(89	)			438				400
Effect of movements in exchange rates			(2	)			(32	)			(1	)			(2	)			-				24				(13	)
Balance at March 31, 2020			13,656				494				342				12,943				17,465				9,749				54,649
ACCUMULATED DEPLETION AND DEPRECIATION
Balance at January 1, 2019			6,102				65				175				6,830				2,416				708				16,296
Additions / Transfers			1,952				22				49				51				1,619				714				4,407
Disposals			-				(3	)			(11	)			(2,040	)			(27	)			(49	)			(2,130	)
Effect of movements in exchange rates			12				-				-				13				5				1				31
Balance at December 31, 2019			8,066				84				213				4,854				4,013				1,374				18,604
Additions / Transfers			165				24				12				15				368				65				649
Effect of movements in exchange rates			-				-				-				-				-				-				-
Balance at March 31, 2020			8,231				108				225				4,869				4,381				1,439				19,253
NET BOOK VALUE
At March 31, 2020			5,425				386				117				8,074				13,084				8,310				35,396
At December 31, 2019			5,571				440				128				8,065				13,541				7,913				35,658
At January 1, 2019			6,860				84				183				10,427				15,187				6,002				38,743

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

	Included in Buildings and construction in process above are assets under construction of $4,051 as at March 31, 2020 (December 31, 2019 - $3,746) on which no depreciation was charged in the periods then ended. Once the assets are put into service, they will be transferred to the appropriate class of plant, equipment and mining properties. As at March 31, 2020, plant, equipment and mining properties included a net carrying amount of $524 (December 31, 2019 - $559) for mining equipment under equipment loan, and $2,502 (December 31, 2019 - $2,697 for mining equipment and right of use assets under finance lease.
10.	RELATED PARTY TRANSACTIONS AND BALANCES
	All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.

	(a)	Key management personnel
		The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel for the three months ended March 31, 2020 and 2019 is as follows:

		Three months ended March 31,
		2020				2019
Salaries, benefits, and consulting fees		$	170			$	166
Share-based payments			187				171
		$	357			$	337

	(b)	Amounts due to/from related parties
		In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand. The following table summarizes the amounts were due to related parties:

		March 31, 2020				December 31, 2019
Oniva International Services Corp.		$	156			$	105
Directors			37				51
		$	193			$	156

	(c)	Other related party transactions
		The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company. David Wolfin, President & CEO, and a director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

- 14 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

The transactions with Oniva during the three months ended March 31, 2020 and 2019 are summarized below:

		March 31, 2020				March 31, 2019
Salaries and benefits		$	181			$	249
Office and miscellaneous			96				90
Exploration and evaluation assets			-				56
		$	277			$	395

	For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s president and CEO and also a director, for consulting services. For the three months ended March 31, 2020, the Company paid $56 (March 31, 2019 - $56) to ICC. The Company pays Jasman Yee & Associates, Inc. (“JYAI”) for operational, managerial, metallurgical, engineering and consulting services related to the Company’s activities. JYAI’s managing director is a director of the Company. For the three months ended March 31, 2020 and 2019, the Company paid $8 and $6, respectively, to JYAI.
11.	TERM FACILITY
	In July 2015, the Company entered into a ten million dollar term facility with Samsung C&T U.K. Limited (“Samsung”). Interest is charged on the facility at a rate of US dollar LIBOR (3 month) plus 4.75%. The Company is currently repaying the remaining balance in 23 equal monthly instalments of $278 commencing ending August 2021. The Company is committed to selling Avino Mine concentrate on an exclusive basis to Samsung until December 31, 2024. The facility is secured by the concentrates produced under the agreement and by 33% of the common shares of the Company’s wholly-owned subsidiary Compañía Minera Mexicana de Avino, S.A. de C.V.. The facility with Samsung relates to the sale of concentrates produced from the Avino Mine only. The continuity of the term facility with Samsung is as follows:

		March 31,				December 31,
		2020				2019
Balance at beginning of the period		$	5,897			$	6,901
Repayments			(833	)			(833	)
Unwinding of fair value adjustment			(17	)			(170	)
Balance at end of the period			5,047				5,897
Less: Current portion			(3,375	)			(3,384	)
Non-current portion		$	1,672			$	2,513

- 15 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

12.

WARRANT LIABILITY

The Company’s warrant liability arises as a result of the issuance of warrants exercisable in US dollars. As the denomination is different from the Canadian dollar functional currency of the entity issuing the underlying shares, the Company recognizes a derivative liability for these warrants and re-measures the liability at the end of each reporting period using the Black-Scholes model. Changes in respect of the Company’s warrant liability are as follows:

		March 31, 2020				December 31, 2019
Balance at beginning of the period		$	1,579			$	2,009
Fair value adjustment			(919	)			(520	)
Effect of movement in exchange rates			(86	)			90
Balance at end of the period		$	574			$	1,579

Continuity of warrants during the periods is as follows:
		Underlying Shares				Weighted Average Exercise Price
Warrants outstanding and exercisable, January 1, 2019			10,778,061			$	1.20
Issued			464,122			C$0.85
Expired			(3,602,215	)		$	1.99
Warrants outstanding and exercisable, December 31, 2019			7,639,968			$	0.79
Warrants outstanding and exercisable, March 31, 2020			7,639,968			$	0.79

						All Warrants Outstanding and Exercisable
Expiry Date		Exercise Price per Share				March 31, 2020				December 31, 2019
July 30, 2020		C$0.85					464,122				464,122
September 25, 2023		$	0.80				7,175,846				7,175,846
							7,639,968				7,639,968

As at March 31, 2020, the weighted average remaining contractual life of warrants outstanding was 3.30 years (December 31, 2019 – 3.55 years).

Valuation of the warrant liability requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing warrants is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the warrant liability was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

		March 31, 2020				December 31, 2019
Weighted average assumptions:
Risk-free interest rate			0.57	%			1.68	%
Expected dividend yield			0	%			0	%
Expected warrant life (years)			3.49				3.57
Expected stock price volatility			63.66	%			61.61	%
Weighted average fair value		$	0.08			$	0.22

- 16 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

13.

RECLAMATION PROVISION

Management’s estimate of the reclamation provision at March 31, 2020, is $1,245 (December 31, 2019 – $1,524), and the undiscounted value of the obligation is $1,562 (December 31, 2019 – $1,985). The present value of the obligation was calculated using a risk-free interest rate of 7.04% (December 31, 2019 – 6.86%) and an inflation rate of 3.00% (December 31, 2019 – 3.54%). Reclamation activities are estimated to begin in 2021 for the San Gonzalo Mine and in 2028 for the Avino Mine. A reconciliation of the changes in the Company’s reclamation provision is as follows:

		March 31, 2020				December 31, 2019
Balance at beginning of the period		$	1,524			$	10,799
Changes in estimates			-				840
Disposition of Bralorne (Note 3)			-				(10,828	)
Unwinding of discount related to Bralorne			-				217
Unwinding of discount related to continuing operations			27				104
Effect of movements in exchange rates			(306	)			392
Balance at end of the period		$	1,245			$	1,524

14. SHARE CAPITAL AND SHARE-BASED PAYMENTS

	(a)	Authorized: Unlimited common shares without par value.
	(b)	Issued:

	(i)	During the three months ended March 31, 2020, the Company issued 675,145 common shares as settlement of accrued advisory services provided by Cantor Fitzgerald Canada Corporate (“Cantor”) for the completion of the sale of Bralorne. The value of these shares was accrued at December 31, 2019; however, the shares were not issued until January 2020.
	(ii)	During the year ended December 31, 2019, the Company closed a bought-deal financing, issuing 5,411,900 common shares at the price of C$0.85, as well as 2,323,460 flow-through shares at the price of C$0.99 for gross proceeds of $5,240 (C$6,900). The financing was made by way of prospectus supplement in July 2019, so the Company’s existing Canadian short-form base shelf prospectus dated December 21, 2018.
		Of the $5,240 total aggregate proceeds raised, $116 was attributed to 464,122 warrants issued as commission, leaving a residual amount of $5,124. This amount includes a flow-through premium, which represents the difference between the C$0.85 price in which the common shares were issued, and the offering price of C$0.99 per share. Based on the C$ to US$ exchange rate on the date of the transaction, $247 was recorded as the flow-through premium, for a net share capital allocation of $4,877. This premium is presented in “Other liabilities” on the condensed consolidated interim statements of financial position as at December 31, 2019. The Company paid a 7% cash commission on the gross proceeds in the amount of $367, and incurred additional legal and professional costs of $115. Costs of $10 were allocated to the fair value of the warrants and have been reflected in the condensed consolidated interim statements of operations as a finance cost, and costs of $472 have been reflected as share issuance costs in the condensed consolidated interim statements of changes in equity.

- 17 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

During the year ended December 31, 2019, the Company issued 4,954,000 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $2,924. The Company paid a 3% cash commission of $87 on gross proceeds and incurred an additional $75 in issuance costs during the period.

During the year ended December 31, 2019, the Company issued 565,259 common shares upon exercise of RSUs. 

	(c)	Stock options:
		The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date. Continuity of stock options is as follows:

		Underlying Shares				Weighted Average Exercise Price (C$)
Stock options outstanding, January 1, 2019			2,917,500			$	2.04
Granted			526,000			$	0.79
Cancelled / Forfeited			(255,000	)		$	2.09
Expired			(550,000	)		$	1.90
Stock options outstanding, December 31, 2019			2,638,500			$	1.82
Cancelled / Forfeited			(392,500	)		$	1.48
Stock options outstanding, March 31, 2020			2,246,000			$	1.87
Stock options exercisable, March 31, 2020			2,070,500			$	1.97

The following table summarizes information about the stock options outstanding and exercisable at March 31, 2020:

						Outstanding								Exercisable
Expiry Date		Price (C$)				Number of Options				Weighted Average Remaining Contractual Life (Years)				Number of Options				Weighted Average Remaining Contractual Life (Years)
September 2, 2021		$	2.95				445,000				1.42				445,000				1.42
September 20, 2022		$	1.98				1,080,000				2.47				1,080,000				2.47
August 28, 2023		$	1.30				370,000				3.41				370,000				3.41
August 21, 2024		$	0.79				351,000				4.39				175,500				4.39
							2,246,000				2.72				2,070,500				2.58

During the three months ended March 31, 2020, the Company charged $(11) (three months ended March 31, 2019 - $41) to operations as share-based payments and capitalized $Nil (three months ended March 31, 2019 - $13) to exploration and evaluation assets for the fair value of stock options granted.

- 18 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

	(d)	Restricted Share Units:
		On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period. Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares. During the three months ended March 31, 2020, no RSUs (year ended December 31, 2019 – 1,730,500) were granted. All RSUs granted vest one-third annually from the date of the grant until fully vested at the end of the three-year term. For the RSUs issued in the year ended December 31, 2019, the weighted average fair value at the measurement date was C$0.79, based on the TSX market price of the Company’s shares on the date the RSUs were granted. At March 31, 2020, there were 2,298,732 RSUs outstanding (December 31, 2019 – 2,372,875). During the three months ended March 31, 2020, the Company charged $179 (March 31, 2019 - $178) to operations as share-based payments and capitalized $Nil (March 31, 2019 - $18) to exploration and evaluation assets for the fair value of the RSUs vested. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.
	(e)	Earnings (loss) per share:
		The calculations for basic earnings (loss) per share and diluted earnings (loss) per share are as follows:

		Three months ended March 31,
		2020				2019
Net income (loss) for the period		$	(232	)		$	(610	)
Basic weighted average number of shares outstanding			77,267,533				64,020,965
Effect of dilutive share options, warrants, and RSUs			-				-
Diluted weighted average number of shares outstanding			77,267,533				64,020,965
Basic earnings (loss) per share		$	(0.00	)		$	(0.01	)
Diluted earnings (loss) per share		$	(0.00	)		$	(0.01	)

15.	REVENUE AND COST OF SALES
	Revenue and the related cost of sales reflect the sale of silver, gold and copper concentrate from the Avino Mine and from the sale of silver and gold concentrate from the San Gonzalo Mine for the three months ended March 31, 2020 and 2019.

		March 31, 2020				March 31, 2019
Concentrate sales		$	7,570			$	6,874
Provisional pricing adjustments			(454	)			(163	)
		$	7,116			$	6,711

- 19 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products. Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following:

		March 31, 2020				March 31, 2019
Production costs		$	5,654			$	5,978
Depreciation and depletion			619				677
		$	6,273			$	6,655

16.	GENERAL AND ADMINISTRATIVE EXPENSES
	General and administrative expenses on the condensed consolidated interim statements of operations consist of the following:

		March 31, 2020				March 31, 2019
Salaries and benefits		$	370			$	214
Office and miscellaneous			49				165
Management and consulting fees			122				108
Investor relations			50				21
Travel and promotion			32				26
Professional fees			86				100
Directors fees			39				37
Regulatory and compliance fees			30				49
Depreciation			30				8
		$	808			$	728

17.	COMMITMENTS
	The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 10.
	The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

		March 31, 2020				December 31, 2019
Not later than one year		$	280			$	1,269
Later than one year and not later than five years			16				20
Later than five years			4				5
		$	300			$	1,294

Included in the above amount as at March 31, 2020, is the Company’s commitment to incur flow-through eligible expenditures of $274 (C$389) that must be incurred in Canada.

- 20 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

18. SUPPLEMENTARY CASH FLOW INFORMATION

		March 31, 2020				March 31, 2019
Net change in non-cash working capital items:
Inventory		$	141			$	(134	)
Prepaid expenses and other assets			81				(59	)
Taxes recoverable			(62	)			54
Taxes payable			(46	)			(84	)
Accounts payable and accrued liabilities			(1,578	)			355
Amounts receivable			709				1,463
Other liabilities			(140	)			(78	)
Deferred revenues			-				(431	)
Amounts due to related parties			(25	)			3
		$	(870	)		$	1,089

		March 31, 2020				March 31, 2019
Interest paid		$	129			$	124
Taxes paid		$	188			$	469
Equipment acquired under finance leases and equipment loans		$	-			$	-

19.	FINANCIAL INSTRUMENTS
	The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s term facility, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.
	The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

	(a)	Credit Risk
		Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.
		The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with three (December 31, 2019 – six) counterparties (see Note 20). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.
		The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At March 31, 2020, no amounts were held as collateral.

- 21 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

	(b)	Liquidity Risk
		Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at March 31, 2020, in the amount of $6,698 and working capital of $10,751 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of term facility, equipment loans, and finance lease obligations are due within 12 months of the condensed consolidated interim statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.
		The maturity profiles of the Company’s contractual obligations and commitments as at March 31, 2020, are summarized as follows:

		Total				Less Than 1 Year				1-5 years				More Than 5 Years
Accounts payable and accrued liabilities		$	3,460			$	3,460			$	-			$	-
Amounts due to related parties			193				193				-				-
Minimum rental and lease payments			300				280				16				4
Term facility			5,236				3,540				1,696				-
Equipment loans			243				225				18				-
Finance lease obligations			924				538				380				6
Total		$	10,356			$	8,236			$	2,110			$	10

	(c)	Market Risk
		Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.
		Interest Rate Risk
		Interest rate risk consists of two components:

	(i)	To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.
	(ii)	To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.
	In management’s opinion, the Company is exposed to interest rate risk primarily on its outstanding term facility, as the interest rate is subject to floating rates of interest. A 10% change in the interest rate would not a result in a material impact on the Company’s operations.

- 22 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

		March 31, 2020								December 31, 2019
		MXN				CDN				MXN				CDN
Cash		$	5,075			$	4,738			$	2,780			$	5,902
Long-term investments			-				5,080				-				5,599
Reclamation bonds			-				6				-				6
Amounts receivable			-				30				-				54
Accounts payable and accrued liabilities			(42,925	)			(170	)			(51,307	)			(442	)
Due to related parties			-				(189	)			-				(202	)
Finance lease obligations			(803	)			(520	)			(1,037	)			(522	)
Net exposure			(38,653	)			8,975				(49,564	)			10,395
US dollar equivalent		$	(1,643	)		$	6,326			$	(2,627	)		$	8,004

Based on the net US dollar denominated asset and liability exposures as at March 31, 2020, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2020, by approximately $411 (year ended December 31, 2019 - $465). The Company has not entered into any foreign currency contracts to mitigate this risk.

Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At March 31, 2020, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $45 (December 31, 2019 - $70).

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At March 31, 2020, a 10% change in market prices would have an impact on net earnings (loss) of approximately $358 (December 31, 2019 - $467).

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

- 23 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

	(d)	Classification of Financial Instruments
		IFRS 7 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:
		Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
		The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at March 31, 2020:

		Level 1				Level 2				Level 3
Financial assets
Cash		$	6,698			$	-			$	-
Amounts receivable			-				595				-
Long-term investments			3,581				-				-
Total financial assets		$	10,279			$	595			$	-
Financial liabilities
Warrant liability			-				-				(574	)
Total financial liabilities		$	-			$	-			$	(574	)

20.	SEGMENTED INFORMATION
	The Company’s revenues for the three months ended March 31, 2020 of $7,116 (March 31, 2019 - $6,711) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine and the San Gonzalo Mine and the Avino Historic Above Ground stockpiles.
	On the condensed consolidated interim statements of operations, the Company had revenue from the following product mixes:

		March 31, 2020				March 31, 2019
Silver		$	2,852			$	2,826
Gold			2,254				2,181
Copper			3,803				2,964
Penalties, treatment costs and refining charges			(1,793	)			(1,260	)
Total revenue from mining operations		$	7,116			$	6,711

- 24 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2020 and 2019

(Expressed in thousands of US dollars, except where otherwise noted)

For the three months ended March 31, 2020, the Company had three customers (March 31, 2019 – four customers) that accounted for total revenues as follows:

		March 31, 2020				March 31, 2019
Customer #1		$	3,969			$	5,150
Customer #2			3,165				-
Customer #3			-				466
Customer #4			-				10
Customer #5			(18	)			1,085
Total revenue from mining operations		$	7,116			$	6,711

Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows:

		March 31, 2020				December 31, 2019
Exploration and evaluation assets - Mexico		$	9,901			$	9,826
Exploration and evaluation assets - Canada			1				1
Total exploration and evaluation assets		$	9,902			$	9,827

		March 31, 2020				December 31, 2019
Plant, equipment, and mining properties - Mexico		$	35,015			$	35,239
Plant, equipment, and mining properties - Canada			381				419
Total plant, equipment, and mining properties		$	35,396			$	35,658

21. SUBSEQUENT EVENT

Avino Complies with the Mexican Government COVID-19 Order

The Company announced on April 2, 2020 that it would temporarily suspend operations at the Avino Mine in Durango, Mexico to comply with the Mexican Federal Government decree which was extended from April 30, 2020 to until May 30, 2020. The decree allows for the normal operations to resume on May 18, 2020 in municipalities which present low or null transmission of COVID-19. Currently, it is unknown if Durango will be considered a low-risk jurisdiction. The Avino Mine has now transitioned to care and maintenance utilizing a reduced workforce to protect current mining operations, employees and the local communities while production operations are temporarily suspended.

Avino employees and supervisors have implemented the temporary closure plan, which forms part of the Company’s larger-established Crisis Management Plan, and included storing underground and surface equipment, ensuring mine ventilation continues to operate, and critical pumping activities are maintained. Procedures to protect our employees remain stringent during care and maintenance.

Avino remains flexible both financially and operationally to adjust to the changing situation as appropriate and we will continue to monitor the situation and provide updates accordingly.

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