Jaguar Mining Reports Financial Results for the First Quarter 2022 __________________________________________________________________________________________
NEWS RELEASE
May 12, 2022 TSX:JAG
FOR IMMEDIATE RELEASE OTCQX:JAGGF
Jaguar Mining Reports Financial Results
for the First Quarter 2022
__________________________________________________________________________________________
Toronto, May 12, 2022 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG, OTCQX:JAGGF ) today
announced financial results for the first quarter (“Q1 202 2”) ended March 31 , 2022. All figures are in US Dollars,
unless otherwise expressed.
Q1 2022 Financial Highlights
• Revenue for Q1 2022 decreased 3% to $30.6 million, compared with $31.7 million in Q1 2021, mainly due to
reduction in ounces produced, which resulted in lower ounces of gold sold of 16,507 in Q1 2022 as compared
to 17,677 ounces in Q1 2021.
• Operating costs totaled $19.6 million in Q1 2022 compared to $14.8 million in Q1 2021. The 33% increase in
operating costs was mainly due to inflation in the past twelve months, with labour costs increasing by
approximately 10%, mining materials by approximately 28%, and plant consumables increasing by
approximately 42%. This was combined with increased secondary development, which is fully expensed as
operating costs, from 1,138 metres in Q1 2021 to 1,247 metres in Q1 2022. Also due to valuation of the Brazilian
Real versus the US dollar, with the average exchange rate during Q1 2022 being R$5.23 per US dollar
compared to R$5.48 per US dollar in Q1 2021.
• Net loss was $6 million in Q1 2022 compared to net income of $6.1 million in Q1 2021 resulting in a decrease
of $12.1 million. This loss was mainly due to the foreign exchange loss of $4.6 million and $4.9 million increase
in operating costs as discussed above. The exchange rate averaged R$5.23 during Q1 2022 per US dollar
(R$5.48 during Q1 2021) and closed at R$4.74 per US dollar on March 31, 2022, (R$5.70 per US dollar on
March 31, 2021).
• Cash operating costs1 per ounce sold increased 42% to $1,188 per ounce of gold in Q1 2022 from $835 in Q1
2021 as a result of the 33% increase in the operating costs, mainly due to inflationary pressure on consumables
and labour, combined with an 7% decrease in ounces of gold sold in Q1 2022 with 16,507 ounces, compared
to 17,677 ounces in Q1 2021, and the valuation of the Brazilian Real versus the US dollar, with a 5% increase
in the average exchange rate during Q1 2022 being R$5.23 per US dollar compared to R$5.48 per U S dollar
in Q1 2021
• Free cash flow 1 was $2.7 million for Q1 2022 based on operating cash flow plus asset retirement obligation
expenditures less capital expenditures, compared to $0.2 million in Q1 2021. Free cash flow 1 was $161 per
ounce sold in Q1 2022 c ompared to $11 per ounce sold in Q1 2021. Free cash flow 1 for Q1 2022 was higher
than Q1 2021 mainly due to the saving on income taxes paid by utilizing credits resulting in $nil cash taxes paid
in Q1 2022, compared to $ 3.3 million for Q1 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.
2
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 Capital1
• As of March 31, 2022, the Company had cash and cash equivalents of $34.8 million, compared to $40.4 million
reported for December 31, 2021.
• As of March 31, 2022, working capital 1 was $22.4 million, compared to $32 million on December 31, 2021,
which inclu des $3 million (December 31, 2021 – $3 million) in short -term loans from Brazilian banks. The
decrease in working capital1 is due to lower operating cash flow generated during Q1 2022, combined with the
strength of the Brazilian Real as compared to the US dollar, during the same period.
Cost Trends and Optimization Measures
• During Q1 2022, the Company’s production was impacted by a severe rainy season in early 2022 which resulted
in certain extraordinary expenditures approximating to $1 million for the quarter. This included extra costs
incurred on road and mine access remediation, sanitation and transportation expenses, and direct purchasing
and higher stocking of certain high-risk items such fuel, drinking water, etc.
• The Company is currently targeting cost reductions in head count, capital expenditures, third party services,
warehousing (with focus on working capital), material and plant consumptions, and G&A. These cost cutting
measures are expected to generate savings for remainder of 2022.
• The Company expects to deliver towards the lower end of its annual production guidance of 86,000 to 94,000
ounces. At the lower end of the guidance, with a US$ to Brazilian Real foreign exchange ranging between R$5-
5.30 and incorporating the impacts of the cost s avings initiative, the Company expects to meet the higher end
of the annual cost guidance of $1,150 to $1,250 per ounce for the remaining part of the year 2022.
Q1 2022 Quarterly Dividend
• The Company is also pleased to announce that its Board of Directors has declared a cash dividend of C$0.04
per common share of the Company, to be paid on Ma y 31, 2022, to shareholders of record as of the close of
business on May 20, 2022. The dividend qualifies as an eligible dividend for Canadian income tax purp oses.
• The Board of Directors intends to review, among other things, the Company's budget, cash flow forecast and
existing market conditions on a quarterly basis in order to determine whether any additional dividends will be
declared on Shares for subsequent quarters.
“Vern Baker, President and CEO of Jaguar Mining stated: “We have started Q2 2022 with a sense of optimism after
a very challenging first quarter. Production in April moved back to targeted levels, as the teams at Turmalina and
Pilar put in a tremendous effort to overcome the challenges of Q1 2022. Severely impacted by the weather and
COVID-19, our operating teams have adapted plans and operating strategies to allow Jaguar to achieve the lower
end of our 2022 production guidance.
Production was extremely limited in January with an extraordinary rainy season and a dramatic increase in COVID-
19 cases resulting in closures at both mines for intermittent periods of time which severely impacted production .
Production increased in February and March and has now stabilized, and we now expect consistent performance
at both operations.
While we have endured a challenging quarter, we maintained a strong balance sheet, continued investing in the
company´s future, and used the challenges to drive change in our teams as we continue to position the company
for production and growth over the next several years.”
_________________________________
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
Q1 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, may not be comparable to similar measures presented by other companies.
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain
investors use this information to eva luate the Company’s performance. Accordingly, they are intended to provide
($ thousands, except where indicated)
2022 2021
Financial Data
Revenue $ 30,619 $ 31,686
Operating costs 19,617 14,761
Depreciation 4,696 4,759
Gross profit 6,306 12,166
Net (loss) income (6,034) 6,109
Per share ("LPS") (0.08) 0.08
EBITDA1 1,735 13,073
Adjusted EBITDA1,2 6,786 11,948
Adjusted EBITDA per share1,2 0.09 0.16
Cash operating costs (per ounce sold)1 1,188 835
All-in sustaining costs (per ounce sold)1 1,680 1,296
Average realized gold price (per ounce)1 1,855 1,793
Cash generated from operating activities 7,707 6,466
Free cash flow1 2,650 197
Free cash flow (per ounce sold)1 161 11
Sustaining capital expenditures1 5,812 6,269
Non-sustaining capital expenditures1 4,477 2,808
Total capital expenditures 10,289 9,077
Three months ended
March 31,
1 Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, adjusted operating cash flow, 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 and write downs. For more details refer to the Non-GAAP Performance Measures
section of the MD&A.
2022 2021
Operating Data
Gold produced (ounces) 16,663 18,160
Gold sold (ounces) 16,507 17,677
Primary development (metres) 1,374 878
Secondary development (metres) 1,247 1,138
Definition, infill, and exploration drilling (metres) 26,305 19,090
Three months ended
March 31,
4
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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 i n 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 period. 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 expen ditures 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
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 u sers in assessing operating performance and the ability to generate free cash flow from current
operations.
________________________________
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.
($ thousands, except where indicated)
2022 2021
Operating costs 19,617$ 14,761$
General & administration expenses 1,777 1,404
Corporate stock-based compensation 522 467
Sustaining capital expenditures¹ 5,812 6,269
All-in sustaining cash costs 27,728 22,901
Reclamation - accretion (operating sites) - 8
All-in sustaining costs 27,728$ 22,909$
Non-sustaining capital expenditures 4,477 2,808
Exploration and evaluation costs (greenfield) 1,522 1,237
Reclamation - accretion (non-operating sites) 56 16
Care and maintenance (non-operating sites) 179 331
All-in costs 33,962$ 27,301$
Ounces of gold sold 16,507 17,676
Cash operating costs per ounce sold² 1,188$ 835$
All-in sustaining costs per ounce sold² 1,680$ 1,296$
All-in costs per ounce sold² 2,057$ 1,545$
Average realized gold price 1,855$ 1,793$
Cash operating margin per ounce sold 667$ 958$
All-in sustaining margin per ounce sold 175$ 497$
Three months ended
March 31,
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.
5
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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), corporate 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, financing costs, debt
repayments and taxes.
Reconciliation of sustaining capital and non-sustaining capital expenditures1
Reconciliation of Free Cash Flow1
_________________________________
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.
($ thousands)
2022 2021
Sustaining capital1
Primary development 3,827$ 3,217$
Brownfield exploration 397 280
Mine-site sustaining 1,484 2,644
Other sustaining capital2 104 128
Total sustaining capital1 5,812 6,269
Non-sustaining capital (including capital projects)1
Mine-site non-sustaining 3,774 2,808
Asset retirement obligation - non-sustaining3 703 -
Total non-sustaining capital1 4,477 2,808
Total capital expenditures 10,289$ 9,077$
Three months ended
March 31,
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.
3 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.
2 Other sustaining and non-sustaining capital are related to Belo Office and others projects.
($ thousands, except where indicated)
2022 2021
Cash generated from operating activities $ 7,707 $ 6,466
Adjustments
Asset Retirement Obligation 755 -
Sustaining capital expenditures2 (5,812) (6,269)
Free cash flow $ 2,650 $ 197
Ounces of gold sold 16,507 17,676
Free cash flow per ounce sold $ 161 $ 11
Three months ended
March 31,
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 find on the reconciliation of sustaining capital and non-sustaining capital expenditures in
the non-GAAP reconciliation in the file.
6
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA 1
Working Capital1
_________________________________
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.
($ thousands, except where indicated)
2022 2021
Net (loss) Income $ (6,034) $ 6,109
Income tax expense 2,396 1,894
Finance costs 658 295
Depreciation and amortization 4,715 4,775
EBITDA $ 1,735 $ 13,073
Changes in other provisions and VAT taxes (67) 700
Foreign exchange loss (gain) 4,596 (2,292)
Stock-based compensation 522 467
Adjusted EBITDA1 $ 6,786 $ 11,948
Weighted average outstanding shares 72,461,569 73,501,972
Adjusted EBITDA per share1 $ 0.09 $ 0.16
Three months ended
March 31,
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
Cash and cash equivalents $ 34,763 $ 40,373
Non-cash working capital
Other current assets:
Restricted cash 547 501
Inventory 15,487 14,546
Recoverable taxes 6,068 5,143
Other accounts receivable 131 92
Prepaid expenses and advances 2,658 2,176
Current liabilities:
Accounts payable and accrued liabilities (18,983) (15,660)
Notes payable (3,038) (3,027)
Lease liabilities (1,225) (1,431)
Current tax liability (2,396) -
Other taxes payable (925) (935)
Reclamation provisions (7,244) (6,847)
Legal and other provisions (3,463) (2,941)
Working capital¹ $ 22,380 $ 31,990
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
March 31,
2022
December 31,
2021
7
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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.
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 infor mation 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. 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 "may," "could," "would," "might," or "will" be taken, occur or be achie ved. 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, 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 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, exploratio n and mine operating licenses and permits being obtained and
renewed and/or there being adverse amendments to mining or other laws in Brazil and any changes to general business and economic
8
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
conditions. Forward-looking information involves a number of known and unknown risks and uncertainties, including among others: the
risk 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, in crease 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 ope rations; 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, deve lopment and
production industry, wh ich, if incorrect, may 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 gold exploration, development, min ing and
production, including environmental hazards, tailings dam failures, industrial accidents 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 discla ims 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 measures that do not have a standardized meaning prescribed by IFRS. Readers are
cautioned to review the below stated footnotes where the Company expands 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 include mine -site operating
costs such as mining, processing and administration, as well as royalty expe nses, but exclude depreciation, depletion, share -based
payment expenses, and reclamation costs. Cash operating costs per ounce are based on ounces produced and are calculated by
dividing cash operating costs by commercial gold ounces produced; US$ cash ope rating 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 beli eves those measures provide valuable assistance to
investors and analysts in evaluating the Company's operational performance and ability to generate cash flow. The most direct ly
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 March 31. 2022, is set out in the Company's first quarter
2022 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. While there is no standardized meaning across the industry for this measure, except for non-cash items the
Company's definition conforms 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 and administrative expenses, and in -mine exploration expenses. All-
in sustaining cost excludes growth capital, reclamation cost accretion 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
March 31. 2022, is set out in the Company's first quarter 2022 MD&A filed on SEDAR at www.sedar.com.