Jaguar Mining Reports Financial Results for the Third quarter 2022
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1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
1
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
NEWS RELEASE
November 9, 2022 TSX:JAG
FOR IMMEDIATE RELEASE OTCQX:JAGGF
Jaguar Mining Reports Financial Results
for the Third quarter 2022
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Toronto, November 9, 2022 – Jaguar Mining Inc. ("Jaguar " or the "Company") (TSX:JAG, OTCQX:JAGGF)
today announced financial results for the third quarter (“Q3 2022”) ended September 30, 2022. All figures are in US
Dollars, unless otherwise expressed.
Q3 2022 Financial Highlights
• Revenue for Q3 2022 decreased 7% to $37.8 million, compared with $40.7 million in Q3 2021, mainly due to a
decrease in the average realized gold price of $1,711 per ounce in Q3 2022 compared to $1,753 per ounce in
Q3 2021.
• Operating costs totaled $22.1 million in Q3 2022 compared to $19.4 million in Q3 2021. The 14% increase in
operating costs was mainly due to inflation and head count increase in the past twelve months, with labour
costs increasing by approximately 12%, min ing materials by approximately 28%, and plant consumables
increasing by approximately 4%.
• Net income for Q3 2022 decreased to $6.5 million, compared with $11.4 million in Q3 2021. Major variances
included a $2.9 million decline in revenue, $2.7 million i ncrease in operating cost s, $0.7 million reduction on
foreign exchange gain, and a $0.7 million increase in finance costs, offset by an income tax expense reduction
of $2.5 million.
• Cash operating costs¹ increased 20% to $999 per ounce of gold in Q3 2022 compared to $833 in Q3 2021 due
to a 14% increase in operating costs, attributed to inflationary pressure on mining materials and labour . All-in
sustaining costs¹ increased to $1,331 per ounce of gold sold in Q3 2022, compared to $1,184 per ounce of gold
sold in Q3 2021 due to the cash cost increase as explained above, partially offset by lower sustaining capital
expenditures.
• Free cash flow ¹ in Q3 2022 was $8. 4 million and was based on operating cash flow plus asset retirement
obligation expenditures, less sustaining capital expenditures, compared to $9.8 million in Q3 2021. Free cash
flow was $378 per ounce of gold sold in Q3 2022 compared to $423 per ounce of gold sold in Q3 2021.
Cash Position and Working Capital¹
• As of September 30, 2022, the Company had a cash and cash equivalents position of $29.9 million, compared
to $40.4 million on December 31, 2021.
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1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
2
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
• As of September 30, 2022, working capital was $19.6 million, compared to $32 million on December 31, 2021.
The decrease in working capital is due to a reduction of 14% or $5 million in operating cash flow generated
during YTD 2022, combined with a 30% increase in net cash used in investing activities from $23 million YTD
2021 to $29.8 million YTD 2022, mainly due to the $7 million cash received as a result of the royalty sales 2021.
Partially offset by a 31% reduction in net cash used in financing activities due to lower dividends payment during
YTD 2022.
Vern Baker, President and CEO of Jaguar Mining stated: “The Jaguar team has worked diligently through a difficult
first half of the year to bring us back on track with our goals and objectives in the third quarter . Our performance
delivered and demonstrated that Jaguar can operate consistently and produce at sustainable rates while increasing
total development rates. I am pleased to report that Jaguar continues to produce cash flow allowing us to fund
exploration and projects that grow the company in one of the greatest gold ju risdictions in Brazil . Our efforts to
reduce operating and AISC are making a positive impact on the cash flow.
Jaguar has paid quarterly dividend for the past 9 consecutive quarters, which has yielded our shareholders a 5%+
annualized return and has spent over $35 million to identify and develop additional resources . The current global
macro economic environment has resulted in a weakening of the gold price and global inflationary pressures on
cost have resulted in operating margin compression. The Board and Management have decided to suspend the
quarterly dividend for the time being in order to prioritize the maximization of cashflow to invest in growth capital, in
particular the advancement of the Faina project and convert our exploration success into va lue enhancing
propositions for our shareholders.
The Board of directors will continue to review, among other things, the Company’s budget, cash flow forecast,
growth opportunities and market conditions on a quarterly basis to determine whether dividends will be declared on
Shares for future quarters.”
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1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
3
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q3 2022 Financial Results
Non-GAAP performance
The Company has included the following Non-GAAP performance measures in this document: cash operating costs
per ounce of gold sold, all-in sustaining costs per ounce of gold sold, average realized gold price (per ounce of gold
sold), sustaining capital expenditures, non-sustaining capital expenditures, adjusted operating cash flow, free cash
flow, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and working
capital. These Non-GAAP performance measures do not have any standardized meaning prescribed by IFRS and,
therefore, are not comparable to similar measures presented by other companies.
($ thousands, except where indicated)
2022 2021 2022 2021
Financial Data
Revenue $ 37,846 $ 40,748 $ 106,391 $ 108,764
Operating costs 22,098 19,373 62,790 51,499
Depreciation 5,384 5,608 14,945 16,004
Gross profit 10,364 15,767 28,656 41,261
Net income 6,475 11,415 9,920 20,503
Per share ("EPS") 0.09 0.16 0.14 0.28
EBITDA1 13,515 20,498 30,428 45,043
Adjusted EBITDA1,2 12,081 19,205 31,404 47,932
Adjusted EBITDA per share1,2 0.17 0.26 0.43 0.65
Cash operating costs (per ounce sold)1 999 833 1,062 842
All-in sustaining costs (per ounce sold)1 1,331 1,184 1,438 1,249
Average realized gold price (per ounce)1 1,711 1,753 1,800 1,778
Cash generated from operating activities 13,266 16,354 30,413 35,454
Free cash flow1 8,365 9,840 16,747 15,798
Free cash flow (per ounce sold)1 378 423 283 258
Sustaining capital expenditures1 5,581 6,514 15,810 19,656
Non-sustaining capital expenditures1 5,911 2,458 17,787 8,921
Total capital expenditures 11,492 8,972 33,597 28,577
Nine months ended
September 30,
Three months ended
September 30,
1 Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, free cash flow, EBITDA and adjusted
EBITDA, and adjusted EBITDA per share are non-GAAP financial performance measures with no standard definition under IFRS. Refer to the Non-GAAP Financial
Performance Measures section of the MD&A.
2 Adjusted EBITDA excludes non-cash items such as impairment, foreign exchange,stock-based compensation and write downs. For more details refer to the Non-GAAP
Performance Measures section of the MD&A.
2022 2021 2022 2021
Operating Data
Gold produced (ounces) 21,161 22,603 59,852 60,975
Gold sold (ounces) 22,121 23,247 59,110 61,159
Primary development (metres) 1,741 1,273 4,742 3,264
Secondary development (metres) 1,259 1,342 3,725 3,647
Definition, infill, and exploration drilling (metres) 23,620 20,028 80,555 61,364
Three months ended
September 30,
Nine months ended
September 30,
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1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
4
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company ’s performance. Accordingly, they are intended to provide
additional information and should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. More specifically, Management believes that these figures are a useful indicator
to investors and management of a mine ’s performance as they provide: (i) a measure of the mine ’s cash margin
per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the
mine matures; and ( iii) an internal benchmark of performance to allow for comparison against other mines. The
definitions of these performance measures and reconciliation of the Non -GAAP measures to reported IFRS
measures are outlined below.
Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold1
Cash operating costs per ounce sold is calculated by dividing operating costs per the consolidated statement of
comprehensive income (loss) by the gold ounces sold during the applicable p eriod. Operating expenses include
mine site operating costs such as mining, processing and administration as well as royalties, but excludes
depreciation.
All-in sustaining cost performance reflects all of the expenditures that are required to produce an ounce of gold
from current operations. While there is no standardized meaning of the measure across the industry, the Company’s
($ thousands, except where indicated)
2022 2021 2022 2021
Operating costs 22,098$ 19,373$ 62,790$ 51,499$
General & administration expenses 1,658 1,237 5,286 4,196
Corporate stock-based compensation 116 373 1,086 955
Sustaining capital expenditures¹ 5,581 6,514 15,810 19,656
All-in sustaining cash costs 29,453 27,497 84,972 76,306
Reclamation (operating sites) - 37 8 52
All-in sustaining costs 29,453$ 27,534$ 84,980$ 76,358$
Non-sustaining capital expenditures 5,911 2,458 17,787 8,921
Exploration and evaluation costs (greenfield) 1,373 753 4,493 3,299
Reclamation (non-operating sites) - 24 3 60
Care and maintenance (non-operating sites) 137 162 448 777
All-in costs 36,874$ 30,931$ 107,711$ 89,415$
Ounces of gold sold 22,121 23,247 59,110 61,159
Cash operating costs per ounce sold² 999$ 833$ 1,062$ 842$
All-in sustaining costs per ounce sold² 1,331$ 1,184$ 1,438$ 1,249$
All-in costs per ounce sold² 1,667$ 1,331$ 1,822$ 1,462$
Average realized gold price 1,711$ 1,753$ 1,800$ 1,778$
Cash operating margin per ounce sold 712$ 920$ 738$ 936$
All-in sustaining margin per ounce sold 380$ 569$ 362$ 529$
Three months ended
September 30,
Nine months ended
September 30,
2 Cash operating costs, all-in sustaining costs and all-in costs are all non-GAAP financial performance measures with no standard definition under IFRS. Result may
not calculate due to rounding.
1 Capital expenditures are included in our calculation of all-in sustaining costs and all-in costs.
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1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated
June 27, 2013. The World Gold Council is a non -regulatory, non -profit organization established in 1987 whose
members include global senior mining companies. The Company believes that this measure will be useful to
external users in assessing operating performance and the ability to generate free cash flow from current
operations.
The Company defines all -in sustaining costs as the sum of operating cash costs (per above), sustaining capital
(capital required to maintain current operations at existing levels), corpor ate administration costs and sustaining
exploration. All-in sustaining costs excludes capital expenditures for significant improvements at existing operations
deemed to be expansionary in nature, exploration and evaluation related to growth projects, finan cing costs, debt
repayments and taxes.
Reconciliation of sustaining capital and non-sustaining capital expenditures1
($ thousands)
2022 2021 2022 2021
Sustaining capital1
Primary development 4,004$ 4,189$ 11,052$ 11,571$
Brownfield exploration 241 203 877 726
Mine-site sustaining 1,336 2,122 3,881 7,359
Total sustaining capital1 5,581 6,514 15,810 19,656
Non-sustaining capital (including capital projects)1
Mine-site non-sustaining 5,231 2,458 15,643 8,921
Asset retirement obligation - non-sustaining2 680 - 2,144 -
Total non-sustaining capital1 5,911 2,458 17,787 8,921
Total capital expenditures 11,492$ 8,972$ 33,597$ 28,577$
Three months ended
September 30,
Nine months ended
September 30,
1 Sustaining and non-sustaining capital are non-GAAP financial measures with no standard definition under IFRS. Refer to the non-GAAP Financial Performance
Measures section of the MD&A. Capital expenditures are included in the calculation of all-in sustaining costs and all-in costs.
2 Asset retirement obligation - non-sustaining is related to expenditures with dam closing projects. Payments related to the Company asset retirement
obligation are classified as operating activities in accordance with IFRS financial measures.
_________________________________
1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
6
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Reconciliation of Free Cash Flow1
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA 1
($ thousands, except where indicated)
2022 2021 2022 2021
Cash generated from operating activities $ 13,266 $ 16,354 $ 30,413 $ 35,454
Adjustments
Asset Retirement Obligation 680 - 2,144 -
Sustaining capital expenditures2 (5,581) (6,514) (15,810) (19,656)
Free cash flow $ 8,365 $ 9,840 $ 16,747 $ 15,798
Ounces of gold sold 22,121 23,247 59,110 61,159
Free cash flow per ounce sold $ 378 $ 423 $ 283 $ 258
Three months ended
September 30,
Nine months ended
September 30,
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
2 Further detail on the sustaining capital expenditures composition can be found on the reconciliation of sustaining capital and non-sustaining capital
expenditures in the non-GAAP reconciliation.
($ thousands, except where indicated)
2022 2021 2022 2021
Net Income $ 6,475 $ 11,415 $ 9,920 $ 20,503
Income tax expense 999 3,491 3,542 7,939
Finance costs 638 (31) 1,964 549
Depreciation and amortization 5,403 5,623 15,002 16,052
EBITDA $ 13,515 $ 20,498 $ 30,428 $ 45,043
Changes in other provisions and VAT taxes (118) 443 (95) 1,369
Foreign exchange loss (gain) (1,432) (2,109) (15) (1,121)
Stock-based compensation 116 373 1,086 955
Other non-operating expenses (recoveries)1 - - - 1,686
Adjusted EBITDA2 $ 12,081 $ 19,205 $ 31,404 $ 47,932
Weighted average outstanding shares 72,465,915 73,399,833 72,464,429 73,399,833
Adjusted EBITDA per share2 $ 0.17 $ 0.26 $ 0.43 $ 0.65
Three months ended
September 30,
Nine months ended
September 30,
1 CentroGold royalty interest sales. As a result of the sale, the Company (i) derecognized the $8.5 million CentroGold project royalty interest asset, (ii) received and recorded
$7.0 million in Cash, (iii) recorded $0.2 million in legal and consulting costs associated with the transaction.
2 This is a non-GAAP financial performance measure with no standard definition under IFRS.
_________________________________
1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
7
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Working Capital1
Qualified Person
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan
Victor Hill, BSc (Hons) (Economic Geology - UCT), FAUSIMM, Vice President Geology and Exploration, who is
also an employee of Jaguar Mining Inc., and is a "qualified person" as defined by National Instrument 43 -101
- Standards of Disclosure for Mineral Projects ("NI 43-101").
The Iron Quadrangle
The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in
1699–1701 of gold contaminated with iron and platinum -group metals in the southeastern corner of the Iron
Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world -class
multi-million-ounce gold deposits such as Morro Velho, Cuiabá, and São Bento. Jaguar holds the Third largest gold
land position in the Iron Quadrangle with just over 25,000 hectares.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian -listed junior gold mining, development, and exploration company operating in
Brazil with three gold mining complexes and a large land package with significant upside exploration potential from
mineral claims. The Company's principal operating assets are located in the Iron Quadrangle, a prolific greenstone
belt in the state of Minas Gerais and include the Turmalina Gold Mine Complex and Caeté Mining Complex (Pilar
and Roça Grande Mines, and Caeté Plant). The Company also owns the Paciência Gold Mine Complex, which has
been on care and maintenance since 2012. The Roça Grande Mine has been on temporary care and maintenance
since April 2019. Additional information is available on the Company's website at www.jaguarmining.com.
Cash and cash equivalents $ 29,947 $ 40,373
Non-cash working capital
Other current assets:
Restricted cash 438 501
Inventory 15,280 14,546
Recoverable taxes 4,129 5,143
Other accounts receivable 172 92
Prepaid expenses and advances 3,058 2,176
Current liabilities:
Accounts payable and accrued liabilities (17,693) (15,660)
Notes payable (3,026) (3,027)
Lease liabilities (2,339) (1,431)
Current tax liability (999) -
Other taxes payable (1,035) (935)
Reclamation provisions (5,268) (6,847)
Legal and other provisions (3,087) (2,941)
Working capital¹ $ 19,577 $ 31,990
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
September 30,
2022
December 31,
2021
_________________________________
1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
8
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
For further information please contact:
Vernon Baker
Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Hashim Ahmed
Chief Financial Officer
Jaguar Mining Inc.
416-847-1854
Forward-Looking Statements
Certain statements in this news release constitute "forward -looking information" within the meaning of applicable Canadian securities
legislation. Forward-looking statements and information are provided for the purpose of providing information about manage ment's
expectations and plans relating to the future. All of the forward -looking information made in this news release is qualified by the
cautionary statements below and those made in our other filings with the securities regulators in Canada. Forward-looking information
contained in forward -looking statements can be identified by the use of words such as "are expected," "is forecast," "is targeted,"
"approximately," "plans," "anticipates," "projects," "anticipates," "continue," "estimate," "believe" or variations of such words and phrases
or statements that certain actions, events or results " August," "could," "would," "might," or "will" be taken, occur or be achieved. All
statements, other than statements of historical fact, August be considered to be or include forward-looking information. This news
release contains forward-looking information regarding, among other things, expected sales, production statistics, ore grades, tonnes
milled, recovery rates, cash operating costs, definition/delineation drilling, the timing and amount of estimated future production, costs
of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration ,
development and mining activities, currency fluctuations, capital requirements, project studies, mine life extensions, restarting
suspended or disrupted operations, continuous improvement initiatives, and resolution of pending litigation. The Company has made
numerous assumptions with respect to forward-looking information contained herein, including, among other things, assumptions about
the estimated timeline for the development of its mineral properties; the supply and demand for, and the level and volatility of the price
of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based;
the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; political an d legal
developments in any jurisdiction in w hich the Company operates being consistent with its current expectations including, without
limitation, the impact of any potential power rationing, tailings facility regulation, exploration and mine operating license s and permits
being obtained and renewe d and/or there being adverse amendments to mining or other laws in Brazil and any changes to general
business and economic conditions. Forward -looking information involves a number of known and unknown risks and uncertainties,
including among others: the r isk of Jaguar not meeting the forecast plans regarding its operations and financial performance;
uncertainties with respect to the price of gold, labour disruptions, mechanical failures, increase in costs, environmental compliance and
change in environmental legislation and regulation, weather delays and increased costs or production delays due to natural disasters,
power disruptions, procurement and delivery of parts and supplies to the operations; uncertainties inherent to capital markets in general
(including the sometimes volatile valuation of securities and an uncertain ability to raise new capital) and other risks inherent to the gold
exploration, development and production industry, which, if incorrect, August cause actual results to differ materially from those
anticipated by the Company and described herein. In addition, there are risks and hazards associated with the business of gol d
exploration, development, mining and production, including environmental hazards, tailings dam failures, industrial a ccidents and
workplace safety problems, unusual or unexpected geological formations, pressures, cave -ins, flooding, chemical spills, procurement
fraud and gold bullion thefts and losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks).
Accordingly, readers should not place undue reliance on forward-looking information.
For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in
this news release, see the Company's most recent Annual Information Form and Management's Discussion and Analysis, as well as
other public disclosure documents that can be accessed under the issuer profile of "Jaguar Mining Inc." on SEDAR at www.sedar.com.
The forward-looking information set forth herein reflects the Company's reasonable expectations as at the date of this news release
and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward -looking
information, whether as a result of new information, future events or otherwise, other than as required by law. The forward -looking
information contained in this news release is expressly qualified by this cautionary statement.