Jaguar Mining Reports 2017 Fourth Quarter and Financial Results; Strong Operating Cost Performance
NEWS RELEASE
March 29, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports 2017 Fourth Quarter and Financial Results;
Strong Operating Cost Performance
Toronto, March 29, 2018 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
details of the Company’s financial and operating results for the fourth quarter (“Q4 2017”) and year ended December
31, 2017 (“FY 2017”). Complete Financial Statements and Management's Discussion and Analysis are available
on SEDAR and on the Company’s website at www.jaguarmining.com. All figures are in US dollars, unless otherwise
expressed.
“We are pleased with the strong operating cost performance in the fourth quarter and the year overall. In the second
half of 2017 we significantly reduced total expenses due to a sharp focus on cost consciousness and improving
productivity across the Company,” said Rodney Lamond, President and Chief Executive Officer, Jaguar Mining.
“We successfully deployed capital towards high priority exploration projects which have yielded excellent results
including a significant increase in mineral resources as we have worked to develop Pilar. In 2017, Pilar delivered
the highest level of gold production since 2013 and record average feed grade over t he life of the mine. These
results have translated into increased production expectations for Pilar going forward.”
“Looking to 2018, we are maintaining our guidance range between 95,000 – 105,000 ounces, including Pilar. We
are in a good position to see our lower expense-base tr anslate to lower overall oper ating costs per ounce on a
relatively less volatile Brazilian currency, as we expect to deliver increased production compared to 2017 and we
have temporarily suspended operations at the higher co st Roca Grande Mine. We continue to be focused on
increasing operating cash flow, investing capital in sust aining and growth projects and reducing debt. Delivering
the highest profitable ounce production is a top priority , as becoming a lower cost producer is key to building
shareholder value.”
Q4 2017 Key Financial Highlights
Operating costs decreased in Q4 2017 by 19.8% to $15.5 million, compared with $19.4 million in Q4 2016 due
to focused efforts on delivering profitable production and company-wide expense reduction programs.
Net income of $16.0 million and earnings per share $0. 05 compared to net loss of $9.3 million and ($0.03) net
loss per share in Q4 2016.
Increased realized gold price of $1,278 per ounce, compar ed to $1,205 per ounce for Q4 2016, partially offset
lower gold sales in Q4 2017. Revenue of $26.6 million, compared with $30.3 million in Q4 2016 due to lower
production in Q4 2017.
Cash operating costs (“COC”) of $745 per ounce sold, compared to $735 in Q4 2016 and $809 in Q3 2017.
All-in sustaining costs (“AISC”) of 1,104 per ounce sold, compared to $1,098 in Q4 2016 and $1,168 in
Q3 2017.
Operating cash flow of $5. 4 million, in line with expectations. Invested total capital of $6 million, including $4.9
million in sustaining capital expenditures.
Free Cash Flow was $0.5 million and negative $5.1 million for Q4 2017 and FY 2017 respectively, based on
operating cash flow less sustaining capital expenditures, compared to $2.3 million and $12.4 million in Q4 2016
and FY 2016 respectively.
2018 gold production guidance of 90,000–105,000 ounces.
Cash balance of approximately $18.6 million as of Dece mber 31, 2017, compared to a cash balance of $19.2
million at September 30, 2017.
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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
FY 2017 Key Financial Highlights
Lower year-over-year gold production of 84,152 ounces compared to 96,608 ounces in 2016.
Net loss of $2.8 million and ($0.01) net loss per sh are compared to net loss of $82.8 million and ($0.50) net
loss per share in 2017.
Invested total capital of approximately $24.6 million in 2017, which yielded significant exploration success from
$4.6 million invested in exploration drilling. Increased definition, infill and exploration drilling metres by 28% to
48,498 meters compared to 2016.
Cash operating costs of $837 per ounce of gol d sold and AISC of $1,212 per ounce of gold sold.
2017 Fourth Quarter and Financial Results Summary
($ thousands, except where indicated)
Three months ended
December 31,
Twelve months ended
December 31,
2017 2016 2017 2016
Financial Data
Revenue $ 26,626 $ 30,261 $ 105,231 $ 120,539
Operating costs 15,526 19,355 69,140 71,012
Depreciation 5,302 10,153 22,572 35,752
Gross profit 5,798 753 13,519 13,775
Net income (loss) 16,034 (9,280) (2,830) (82,795)
Per share ("EPS") 0.05 (0.03) (0.01) (0.50)
EBITDA1 22,927 3,037 26,871 (38,671)
Adjusted EBITDA1,2 7,698 6,348 21,711 36,648
Adjusted EBITDA per share1 $ 0.02 $ 0.02 $ 0.07 $ 0.22
Cash operating costs ($ per ounce sold)1 745 735 837 719
All‐in sustaining costs ($ per ounce sold)1 1,104 1,098 1,212 1,099
Average realized gold price ($ per ounce sold)1 1,278 1,205 1,256 1,239
Cash generated from operating activities $ 5,387 $ 8,467 $ 14,968 $ 37,781
Free cash flow1 502 2,295 (5,071) 12,363
Free cash flow ($ per ounce sold)1 24 91 (61) 127
Sustaining capital expenditures1 4,885 6,172 20,039 25,419
Non‐sustaining capital expenditures1 1,111 1,648 4,582 4,429
Total capital expenditures $ 5,996 $ 7,820 $ 24,621 $ 29,848
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‐IFRS financial performance measures with no standard definition under IFRS.
Refer to the Non‐IFRS Financial Performance Measures section of the MD&A.
2 Adjusted EBITDA excludes non‐cash items such as impairment and write downs. For more details refer to the Non‐IFRS Performance Measures
section of the MD&A.
Three months ended
December 31,
Twelve months ended
December 31,
2017 2016 2017 2016
Operating Data
Gold produced (ounces) 21,311 25,407 84,152 96,608
Gold sold (ounces) 20,841 25,110 83,750 97,277
Primary development (metres) 908 1,091 3,574 5,462
Secondary development (metres) 677 1,205 3,969 4,751
Definition, infill, and exploration drilling (metres) 13,973 9,914 48,498 37,860
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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
Cash Position and Working Capital
As at December 31, 2017, the Company had a cash balan ce of $18.6 million, compared to a cash balance of
$26.3 million, as at December 31, 2016. During the fourth quarter, the Company received $2 million from
Avanco for the second installment of the Accelerated Earn-in Agreement signed for the Gurupi Project on
September 17, 2017.
Stable working capital of $14.1 million as at December 31, 2017 compared to $11.3 million as at December 31,
2016.
2018 Guidance
2018 guidance for Turmalina Gold Mine (“Turmalina”) and Caeté Mining Complex (“CCA”) Pilar Gold Mine
(“Pilar”) and Roça Grande Mine (“RG”).
Pilar production guidance increased to 39,200 - 47,000 re flecting re-forecast for increased mineral resources
reported in March 2018.
RG performance reflects production from January 1 to March 21, 2018 as RG temporarily placed on care and
maintenance.
2018 Production & Guidance cost Turmalina CCA Consolidated Pilar RG
Low High Low High Low High Low High
Gold production (ounces) 50,000 57,000 39,200 47,000 800 1,000 90,000 105,000
Cash Operating Cost (US$/oz sold) 675 775 650 800 1,000 1,100 660 800
All-in sustaining cost (US$/oz sold) 900 1,000 900 1,050 1,050 1,200 920 1,100
Sustaining Capex (US$'000) 12,000 15,000 9,000 12,000 100 500 22,000 28,000
Development
Primary waste (m) 2,200 2,800 2,000 2,600 N/A N/A 4,500 5,400
Secondary ore (m) 1,800 2,100 1,000 1,150 N/A N/A 3,000 3,500
Definition, infill and exploration drilling (m) 18,000 25,000 14,000 20,000 200 300 35,000 50,000
2017 Exploration Success and Highlights
The Company completed 13,973 metres and 48,498 metres of definition, infill, and exploration drilling during
the three and 12 months ended December 31, 2017, respectively (Q4 2016 and FY 2016 – 9,914 metres and
37,860 metres respectively) focused on current orebody extensions at depth at both Turmalina and Pilar.
Year-End 2017 Pilar Mineral Reserves and Mineral Resources Highlights:
o Total Measured Resour ces increased 277% to 317,000 ounces of gold, net of depletion, grading 4.47 g/t.
Total Measured and Indicated (“M&I”) Resources increased 10% to 532,000 ounces of gold at 4.37 g/t.
o Inferred Resources incr eased 104% to 433,000 ounces grading 5.69 g/t, reflecting successful growth
exploration drilling campaign in 2017 targeting high-g rade deeper extensions to the principle banded iron
formation orebodies.
o Proven and Probable (“2P”) Mineral Reserves of 125, 000 ounces of gold, grading 3.99 g/t reflecting two-
year replacement of mineral reserve depletion through production and addition of new mineral reserves.
Interim Year-End 2017 Turmalina Mineral Resources Highlights:
o M&I Resources of 420,000 ounces of gold reflec t full replacement of 45,000 ounces of 2017 mining
depletion for Orebodies A, B and C. Measured Res ources increased 8% to 265,000 ounces with a 6%
increase in grade to 5.7 g/t.
o Inferred Resources increased 158% to 305,000 ounces of gold with a 14% increase in grade to 5.49 g/t,
reflecting successful growth exploration drilling campaign in 2017 targeting high-grade deeper extensions
to the orebodies.
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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
The Iron Quadrangle
The Iron Quadrangle has been an area of mineral explorat ion 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 second 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 covering an area of approximately 64,000 hectares. 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. Additional
information is available on the Company's website at www.jaguarmining.com.
For further information please contact:
Rodney Lamond
President & 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 "for ward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking stat ements and information are provided for the purpose of
providing information about management'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. Forw ard-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," "ant icipates," "continue," "estimate," "belie ve" or variations of such words and
phrases or statements that certain actions, events or resu lts "may," "could," "would," "might," or "will" be taken,
occur or be achieved. All statements, other than statements of historical fact, may 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, t onnes milled, recovery rates, cash operating costs,
definition/delineation drilling, the timing and amount of estimated future produc tion, 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, continuou s improvement initiatives, and resolution of pending
litigation. The Company has made numerous assumptions wi th 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 rese rve and resource estimates are based; the receipt of
necessary permits; market competition; ongoing relations with employees and impacted communities; political and
legal developments in any jurisdiction in which 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 licenses and permits being obtained an renewed 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 uncertain ties, including among others: the risk of Jaguar not
meeting the forecast plans regarding it s operations and financial performance; uncertainties with respect to the
price of gold, labour disruptions, mechanical failures, in crease in costs, environmental compliance and change in
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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
environmental legislation and regulation, weather delays and increased costs or production delays due to natural
disasters, power disruptio ns, procurement and delivery of parts and supplies to the operations; uncertainties
inherent to capital markets in general (including the some times 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, may cause actual results to differ materially from those anticipated by the Company and
described herein. In addition, there ar e risks and hazards associated with the business of gold exploration,
development, mining and production, including environmental hazards, tailings dam failures, industrial accidents
and workplace safety problems, unusual or unexpected g eological 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 Co mpany'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.
Non-IFRS Measures
This news release provides certain financial measur es that do not have a standardized meaning prescribed by
IFRS. Readers are cautioned to review the above stat ed footnotes where the Com pany expanded on its use of
non-IFRS measures.
1. Cash operating costs and cash operating cost per ounce are non-IFRS measures. In the gold mining industry,
cash operating costs and cash operating costs per ounce are common performance measures but do not have
any standardized meaning. Cash operating costs are derived from amounts included in the Consolidated
Statements of Comprehensive Income (Loss) and in clude mine-site operating costs such as mining,
processing and administration, as well as royalty expenses, but exclude depreciation, depletion, share-based
payment expenses, and reclamation costs. Cash oper ating costs per ounce are based on ounces produced
and are calculated by dividing cash operating costs by commercial gold ounces produced; US$ cash operating
costs per ounce produced are derived from the cash operating costs per ounce produced translated using the
average Brazilian Central Bank R$/US$ exchange rate. The Company discloses cash operating costs and
cash operating costs per ounce, as it believes those m easures provide valuable assistance to investors and
analysts in evaluating the Company's operational perfo rmance and ability to generate cash flow. The most
directly comparable measure prepared in accordance with IFRS is total production costs. A reconciliation of
cash operating costs per ounce to total production costs for the most recent reporting period, the quarter ended
December 31, 2017, is set out in the Company's fourth quarter 2017 Management Discussion and Analysis
(MD&A) filed on SEDAR at www.sedar.com.
2. All-in sustaining cost is a non-IFRS measure. This measure is intended to assist readers in evaluating the total
costs of producing gold from current operations. Whil e there is no standardized meaning across the industry
for this measure, except for non-cas h items the Company's definition confor ms to the all-in sustaining cost
definition as set out by the World Gold Council in its guidance note dated June 27, 2013. The Company defines
all-in sustaining cost as the sum of production costs, sustaining capital (capital required to maintain current
operations at existing levels), corporate general a nd administrative expenses, and in-mine exploration
expenses. All-in sustaining cost excludes growth c apital, reclamation cost ac cretion related to current
operations, interest and other financing costs, and taxes. A reconciliation of all-in sustaining cost to total
production costs for the most recent reporting period, the quarter ended December 31, 2017, is set out in the
Company's fourth quarter 2017 MD&A filed on SEDAR at www.sedar.com.