Jaguar Mining Reports Financial Results for the First Quarter 2023 __________________________________________________________________________________________
1
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
NEWS RELEASE
May 10, 2023 TSX:JAG
FOR IMMEDIATE RELEASE OTCQX:JAGGF
Jaguar Mining Reports Financial Results
for the First Quarter 2023
__________________________________________________________________________________________
Toronto, May 10, 2023 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG, OTCQX:JAGGF) today
announced financial results for the first quarter (“Q1 202 3”) ended March 31 , 2023. All figures are in US Dollars,
unless otherwise expressed.
First Quarter Highlights
• Revenue increased 17% to $3 5.8 million compared with $ 30.6 million in the first quarter of 202 2, due to an
increase in ounces produced which resulted in higher ounces sold of 19,008 ounces as compared to 16,507
ounces in the first quarter of 2022, combined with an increase in the average realized gold price of $1,886 per
ounce compared to $1,855 per ounce in the first quarter of 2022.
• Gold production increased by 9% to 18,156 ounces, compared to 16,663 ounces in the first quarter of 2022,
reflecting an increase of 12% in tonnes of ore processed, partially offset by 3% decrease in the average
recovery rate.
• Operating costs totaled $20.6 million, an increase of 5% compared to $19.6 million in the first quarter of 2022.
The increase in operating costs were predominantly the result of the increase in ounces of gold produced
compared to the first quarter of 2022.
• Cash operating costs¹ decreased 9% to $1,084 per ounce of gold sold compared to $1,188 per ounce of gold
sold in the first quarter of 2022 due to the increase in ounces of gold sold, partially offset by 5% increase i n
operating costs.
• All-in sustaining costs¹ decreased to $1,575 per ounce of gold sold, compared to $1,680 in the first quarter of
2022 due to the cash cost decrease as explained above, partially offset by higher sustaining capital
expenditures resulting from a 41% increase in primary development in the quarter of 1,259 metres compared
to 895 metres in the first quarter of 2022.
• Net income for Q1 2023 increased to $2.5 million, compared with a net loss of $6 million in Q1 2022. Major
variances included a $5.2 million increase in revenue, a $3.6 million reduction on foreign exchange loss, a $0.5
million income tax expense reduction and a $0.2 million reduction on other operating expenses, offset by $1
million increase in operating costs.
• Free cash flow¹ in the first quarter of 202 3 was $3.3 million and was based on operating cash flow plus asset
retirement obligation expenditures, less capital expenditures, compared to $2.7 million in the first quarter of
2022. Free cash flow was $176 per ounce of gold sold compared to $161 in the first quarter of 2022.
_________________________________
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
Cash Position and Working Capital1
• As of March 31, 2023, the Company had a cash and cash equivalents position of $25.8 million, compared to
$25.2 million on December 31, 2022.
• As of March 31, 2023, working capital was $20.7 million, compared to $19.5 million on December 31, 2022, which
includes $3 million in short term loans from Brazilian banks.
Vern Baker, President and CEO of Jaguar Mining stated: “ We are pleased to report our first quarter production
results which improved year -over-year as did our financial performance. Both the Pilar and Turmalina mine s
produced more ounces this quarter compared to the first quarter of 2022 . The increase in production at Pilar was
the result of an improvement in head grade with the same tonnage. The increase in production at Turmalina was
the result of a significant increase in tonnes (+25%) while experiencing a lower grade cycle within the mine. We
were also able to lower our All-In-Sustaining-Costs per ounce despite the additional tonnage and increased
development work.
During the quarter, development efforts increased at both mines. At Turmalina we completed 1,780 meters of (an
increase of 11%) and at Pilar we completed 1 ,100 meters (an increase of 8%). Development at our Faina project
continued throughout the quarter with ongoing work on engineering and planning . We expect to access the Faina
resource zone by the fourth quarter and to see development within the resource towards the end of the year and
for the full year in 2024.
Although our first quarter was challenging, we are maintaining our production and cost guidance for the year.”
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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
First Quarter 2023 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.
($ thousands, except where indicated)
2023 2022
Financial Data
Revenue $ 35,844 $ 30,619
Operating costs 20,612 19,617
Depreciation 5,765 4,696
Gross profit 9,467 6,306
Net income 2,473 (6,034)
Per share ("EPS") 0.03 (0.08)
EBITDA1 11,046 1,735
Adjusted EBITDA1,2 12,487 6,786
Adjusted EBITDA per share1,2 0.17 0.09
Cash operating costs (per ounce sold)1 1,084 1,188
All-in sustaining costs (per ounce sold)1 1,575 1,680
Average realized gold price (per ounce)1 1,886 1,855
Cash generated from operating activities 10,365 7,707
Free cash flow1 3,347 2,650
Free cash flow (per ounce sold)1 176 161
Sustaining capital expenditures1 7,212 5,812
Non-sustaining capital expenditures1 2,212 4,477
Total capital expenditures 9,424 10,289
2023 2022
Operating Data
Gold produced (ounces) 18,156 16,663
Gold sold (ounces) 19,008 16,507
Primary development (metres) 1,259 895
Exploration development (metres) 216 479
Secondary development (metres) 1,405 1,247
Definition, infill, and exploration drilling (metres) 9,654 26,305
Three months ended
March 31,
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.
Three months ended
March 31,
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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 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 intend ed 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 sustaining capital and non-sustaining capital expenditures1
Reconciliation of Free Cash Flow1
($ thousands)
2023 2022
Sustaining capital1
Primary development 5,159$ 3,827$
Brownfield exploration 299 397
Mine-site sustaining 1,638 1,484
Other sustaining capital2 116 104
Total sustaining capital1 7,212 5,812
Non-sustaining capital (including capital projects)1
Mine-site non-sustaining 2,018 3,774
Asset retirement obligation - non-sustaining2 194 703
Total non-sustaining capital1 2,212 4,477
Total capital expenditures 9,424$ 10,289$
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.
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.
($ thousands, except where indicated)
2023 2022
Cash generated from operating activities $ 10,365 $ 7,707
Adjustments
Asset Retirement Obligation 194 755
Sustaining capital expenditures2 (7,212) (5,812)
Free cash flow $ 3,347 $ 2,650
Ounces of gold sold 19,008 16,507
Free cash flow per ounce sold $ 176 $ 161
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 found on the reconciliation of sustaining capital and non-sustaining capital
expenditures in the non-GAAP reconciliation.
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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
Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold1
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA 1
($ thousands, except where indicated)
2023 2022
Operating costs 20,612$ 19,617$
General & administration expenses 1,701 1,777
Corporate stock-based compensation 419 522
Sustaining capital expenditures¹ 7,212 5,812
All-in sustaining cash costs 29,944 27,728
Reclamation (operating sites) - -
All-in sustaining costs 29,944$ 27,728$
Non-sustaining capital expenditures 2,212 4,477
Exploration and evaluation costs (greenfield) 987 1,522
Reclamation (non-operating sites) - 56
Care and maintenance (non-operating sites) 168 179
All-in costs 33,311$ 33,962$
Ounces of gold sold 19,008 16,507
Cash operating costs per ounce sold² 1,084$ 1,188$
All-in sustaining costs per ounce sold² 1,575$ 1,680$
All-in costs per ounce sold² 1,752$ 2,057$
Average realized gold price 1,886$ 1,855$
Cash operating margin per ounce sold 802$ 667$
All-in sustaining margin per ounce sold 311$ 175$
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 the Company calculation of all-in sustaining costs and all-in costs.
($ thousands, except where indicated)
2023 2022
Net Income $ 2,473 $ (6,034)
Income tax expense 1,895 2,396
Finance costs 894 658
Depreciation and amortization 5,784 4,715
EBITDA1 $ 11,046 $ 1,735
Changes in other provisions and VAT taxes 70 (67)
Foreign exchange loss (gain) 952 4,596
Stock-based compensation 419 522
Adjusted EBITDA1 $ 12,487 $ 6,786
Weighted average outstanding shares 72,564,246 72,461,569
Adjusted EBITDA per share1 $ 0.17 $ 0.09
Three months ended
March 31,
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
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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
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 Go ld 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 $ 25,809 $ 25,208
Non-cash working capital
Other current assets:
Restricted cash 672 618
Inventory 14,110 16,239
Recoverable taxes 6,555 8,545
Other accounts receivable 1,096 343
Prepaid expenses and advances 4,686 3,615
Current liabilities:
Accounts payable and accrued liabilities (16,266) (19,782)
Notes payable (3,040) (3,040)
Lease liabilities (2,498) (2,414)
Current tax liability (1,895) (1,881)
Other taxes payable (1,082) (1,056)
Reclamation provisions (3,045) (3,156)
Legal and other provisions (4,346) (3,751)
Working capital¹ $ 20,756 $ 19,488
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
March 31,
2023
December 31,
2022
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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
For further information please contact:
Vernon Baker
Chief Executive 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 p urpose 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 operatin g 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 assumptio ns
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, exploration 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
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, increase in costs, environmenta l 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 inhere nt 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, which, 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 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.
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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
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 expenses, 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 operating costs per ounce produce d 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 measures provide va luable 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, 2023, is set out in the Company's first quarter
2023 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 meani ng 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, 2023, is set out in the Company's first quarter 2023 MD&A filed on SEDAR at www.sedar.com.