Jaguar Mining Reports Financial Results for the Fourth Quarter and Full Year 2021 Announces Quarterly Dividend __________________________________________________________________________________________
NEWS RELEASE
March 21, 2022 TSX:JAG
FOR IMMEDIATE RELEASE OTCQX:JAGGF
Jaguar Mining Reports Financial Results
for the Fourth Quarter and Full Year 2021
Announces Quarterly Dividend
__________________________________________________________________________________________
Toronto, March 21, 2022 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG, OTCQX:JAGGF) today
announced financial results for the fourth quarter (“Q4 2021”) and year (“FY 2021”) ended December 31, 2021. All
figures are in US Dollars, unless otherwise expressed.
Q4 2021 Financial Highlights
• Revenue for Q4 2021 decreased 2% to $42.7 million, compared with $43.4 million in Q4 2020, mainly due to a
reduction in the average realized gold price of $1,819/oz in Q4 2021 as compared to $1,863/oz for Q4 2020.
• Operating production costs of $18.8 million in Q4 2021 as compared to $16.4 million in Q4 2020. The 15%
increase in operating production costs is due to inflation, combined with increased secondary development,
which is fully expensed as operating costs, from 667 metres in Q4 2020 to 1,189 metres in Q4 2021.
• Cash operating costs1 increased 14% to $802 from $705 per ounce of gold in Q4 2021 because of inflation and
increased on secondary development metres compared to Q4 2020.
• All-in sustaining costs1 decreased to $1,127 per ounce of gold sold for Q4 2021, compared to $1,200 per ounce
of gold sold for the same period in 2020 due to a reduction on sustaining capital expenditures from $9.8 million
in Q4 2020 to $6 million in Q4 2021.
• Net Income was $13.7 million ($0.19 per share) in Q4 2021 compared to net income of 24.3 million ($0.34 per
share) in Q4 2020 resulting in a decrease of $10.6 million. The change was due in large part to an impairment
reversal of $14 million in 2020, compared to $nil in 2021.
• Free cash flow 1 was $8.2 million for Q4 2021 compared to $10.9 million in Q4 2020 and was impacted by
operating cash flow and increased capital expenditures. Free cash flow was $348 per ounce sold in Q4 2021
compared to $466 per ounce sold in Q4 2020.
FY 2021 Financial Highlights
• Gross profit decreased 30% to $60 million in FY 2021 compared to $85.7 million in FY 2020 due to inflation
impact on the Company’s costs in 2021 as compared to the same period last year, increased secondary metres,
as well as an increase of $6 million in depreciation expenses in 2021, as a reflection of a higher asset value
resulting from a $14 million impairment reversal in 2020.
• Consolidated gold production decreased 8% with 83,878 ounces produced in FY 2021 compared to 91,118
ounces produced in FY 2020, due to COVID-19 impact in the first quarter of 2021.
• Cash operating cost1 increased 28% to $831 per ounce of gold sold for FY 2021, compared to $647 during FY
2020 mainly due to an 8% reduction in ounces of gold sold from 91,853 FY 2020 to 84,638 FY 2021, combined
with inflation and increased on secondary development metres compared to FY 2020.
• All-in sustaining cost1 increased 16% to $1,215 per ounce of gold sold in FY 2021, compared to $1,044 during
FY 2020, primally due to the increase of 28% in cash operating cost1 explained on the bullet before.
• Operating cash flow of $45 million; adjusted EBITDA of $66.5 million.
• Net income of $34.2 million, or net income per share of $0.47.
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2
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56 th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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.
Cash Position and Working Capital
• Strong treasury at December 31, 2021, with cash of $40.4 million compared to $38.9 million on the same period
of 2020.
• As of December 31, 2021, working capital was $32 million, compared to $29.2 million as at December 31, 2020,
which includes $3 million in short term loans from Brazilian banks.
Q4 2021 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 March 25, 2022, to shareholders of record as of the close of
business on March 31, 2022. This is the same amount as paid in the previous three quarters. The dividend
qualifies as an eligible dividend for Canadian income tax purposes.
• The Board of Directors intends to re view, 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: “I am very pleased with our performance in Q4 of 2021.
Jaguar´s operational assets performed on a consistent basis producing 22,903 ounces of gold and completing
2,615 meters of development. Exploration performance was also strong with over 18,000 meters of in-mine diamond
drilling, approximately 1,900 meters of surface diamond drilling, and more than 6,700 meters of reverse circulation
drilling. Jaguar paid a dividend and expanded its cash position in the fourth quarter.
The impact of the pandemic on our operations was significant during the first half of 2021 but became minimal by
Q4 2021. In January and February of 2022, our operations were impacted by both the Omicron variant and
torrential rains and flooding that hit Minas Ge rais. We have rescheduled our production plans to make up the
shortfall throughout the year. We still expect to be within our 2022 production guidance of 86,000 to 94,000 ounces.
Exploration and growth projects are a major focus for Jaguar this year. We i nitiated a new division for Growth.
Diamond drilling to upgrade the Faina resource was started with two drill rigs in January and over 20% of our
targeted 15,000 meters are completed. This program will both deliver the mineralized material for our next round of
metallurgical tests and the sample results to advance much of the mineral resource to a measured and indicated
level. Our Project Northwest is developing the Turmalina-Faina corridor from the current Turmalina workings toward
Faina. The project has a dvanced more than 300 meters, has established dual declines, and we are working to
complete the ventilation circuit that will support development for the full distance and for pre -production work. At
Pilar work on Project Southwest started in Q4 2021 and is progressing to develop additional resources in the upper
part of the mine. Work on our Joint Venture with IAMGOLD near our CPA plant is progressing with the first diamond
drill holes started in Q4 2021.”
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56 th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q4 & FY 2021 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 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 pe rformance
prepared in accordance with IFRS. More specifically, Management believes that these figures are a useful indicator
($ thousands, except where indicated)
2021 2020 2021 2020
Financial Data
Revenue $ 42,703 $ 43,417 $ 151,467 $ 160,247
Operating costs 18,838 16,424 70,337 59,448
Depreciation 5,089 3,767 21,092 15,055
Gross profit 18,776 23,226 60,038 85,744
Net income 13,687 24,294 34,190 72,280
Per share ("EPS")1 0.19 0.34 0.47 1.00
EBITDA2 19,022 31,618 64,064 103,015
Adjusted EBITDA2,3 18,523 20,474 66,454 87,849
Adjusted EBITDA per share1,2 0.26 0.28 0.92 1.20
Cash operating costs (per ounce sold)2 802 705 831 647
All-in sustaining costs (per ounce sold)2 1,127 1,200 1,215 1,044
Average realized gold price (per ounce)2 1,819 1,863 1,790 1,745
Cash generated from operating activities 9,581 20,606 45,036 78,665
Free cash flow2 8,168 10,857 24,079 49,421
Free cash flow (per ounce sold)2 348 466 284 538
Sustaining capital expenditures2 6,015 9,848 25,671 29,463
Non-sustaining capital expenditures2 4,279 3,416 12,500 6,900
Total capital expenditures 10,294 13,264 38,171 36,363
Year ended
December 31,
Three months ended
December 31,
2 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-IFRS financial performance measures with no standard definition under IFRS. Refer to
the Non-IFRS Financial Performance Measures section of the MD&A.
3 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.
1 On August 27, 2020, the Company completed a share consolidation of its outstanding common shares on the basis of one (1) post-consolidation share for every ten
(10) pre-consolidation shares.
2021 2020 2021 2020
Operating Data
Gold produced (ounces) 22,903 22,533 83,878 91,118
Gold sold (ounces) 23,479 23,308 84,638 91,853
Primary development (metres) 1,174 1,871 4,438 7,085
Secondary development (metres) 1,189 667 4,835 2,641
Definition, infill, and exploration drilling (metres) 27,818 21,501 89,181 68,945
Three months ended
December 31,
Year ended
December 31,
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56 th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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 reconc iliation 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
_________________________________
1 This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-
($ thousands, except where indicated)
2021 2020 2021 2020
Operating costs 18,838$ 16,424$ 70,337$ 59,448$
General & administration expenses 1,507 1,195 5,703 5,716
Corporate stock-based compensation 88 494 1,044 1,227
Sustaining capital expenditures¹ 6,015 9,848 25,671 29,463
All-in sustaining cash costs 26,448 27,961 102,755 95,854
Reclamation - accretion (operating sites) 7 - 60 60
All-in sustaining costs 26,455$ 27,961$ 102,815$ 95,914$
Non-sustaining capital expenditures 4,279 3,416 12,500 6,900
Exploration and evaluation costs (greenfield) 1,829 1,110 5,129 1,839
Reclamation - accretion (non-operating sites) 94 - 155 60
Care and maintenance (non-operating sites) 237 340 1,013 791
All-in costs 32,894$ 32,827$ 121,612$ 105,504$
Ounces of gold sold 23,479 23,308 84,638 91,853
Cash operating costs per ounce sold² 802$ 705$ 831$ 647$
All-in sustaining costs per ounce sold² 1,127$ 1,200$ 1,215$ 1,044$
All-in costs per ounce sold² 1,401$ 1,408$ 1,437$ 1,149$
Average realized gold price 1,819$ 1,863$ 1,790$ 1,745$
Cash operating margin per ounce sold 1,017$ 1,158$ 959$ 1,098$
All-in sustaining margin per ounce sold 692$ 663$ 575$ 701$
Three months ended
December 31,
Year ended
December 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, 56 th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
GAAP Performance Measures section of the MD&A.
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)
2021 2020 2021 2020
Sustaining capital1
Primary development 4,129$ 6,079$ 15,700$ 21,447$
Brownfield exploration 316 285 1,042 704
Mine-site sustaining 1,454 3,484 8,501 7,312
Other sustaining capital2 116 - 428 -
Total sustaining capital1 6,015 9,848 25,671 29,463
Non-sustaining capital (including capital projects)1
Mine-site non-sustaining 1,862 3,416 5,882 6,900
Asset retirement obligation - non-sustaining2 2,261 - 4,233 -
Other non-sustaining capital3 156 - 2,385 -
Total non-sustaining capital1 4,279 3,416 12,500 6,900
Total capital expenditures 10,294$ 13,264$ 38,171$ 36,363$
Three months ended
December 31,
Year ended
December 31,
1 Sustaining and non-sustaining capital are non-IFRS financial measures with no standard definition under IFRS. Refer to the Non-IFRS 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 Other sustaining and non-sustaining capital are related to Belo Office and others projects.
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)
2021 2020 2021 2020
Cash generated from operating activities $ 9,581 $ 20,606 $ 45,036 $ 78,665
Adjustments
Asset Retirement Obligation 4,602 99 4,714 219
Sustaining capital expenditures (6,015) (9,848) (25,671) (29,463)
Free cash flow $ 8,168 $ 10,857 $ 24,079 $ 49,421
Ounces of gold sold 23,479 23,308 84,638 91,853
Free cash flow per ounce sold $ 348 $ 466 $ 284 $ 538
Three months ended
December 31,
Year ended
December 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, 56 th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA1
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)
2021 2020 2021 2020
Net Income $ 13,687 $ 24,294 $ 34,190 $ 72,280
Income tax expense - 3,213 7,939 14,536
Finance costs 227 325 776 1,043
Depreciation and amortization 5,108 3,786 21,159 15,156
EBITDA $ 19,022 $ 31,618 $ 64,064 $ 103,015
Impairment charges - (14,022) - (14,022)
Changes in other provisions and VAT taxes (10) 302 1,358 1,171
Foreign exchange (gain) (577) 2,082 (1,698) (4,018)
Stock-based compensation 88 494 1,044 1,227
Financial instruments loss - - - 476
Other non-operating expenses (recoveries)1 - - 1,686 -
Adjusted EBITDA2 $ 18,523 $ 20,474 $ 66,454 $ 87,849
Weighted average outstanding shares 72,441,622 72,112,995 72,396,926 72,311,315
Adjusted EBITDA per share2,3 $ 0.26 $ 0.28 $ 0.92 $ 1.20
Three months ended
December 31,
Year ended
December 31,
2 This is a non-GAAP financial performance measure with no standard definition under IFRS.
3 On August 27, 2020, the Company completed a share consolidation of its outstanding common shares on the basis of one (1) post-consolidation share for every ten (10) pre-
consolidation shares.
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.
Cash and cash equivalents $ 40,373 $ 38,908
Non-cash working capital
Other current assets:
Restricted cash 501 1,091
Inventory 14,546 12,529
Recoverable taxes 5,143 4,944
Other accounts receivable 92 61
Prepaid expenses and advances 2,176 2,912
Current liabilities:
Accounts payable and accrued liabilities (15,660) (18,851)
Notes payable (3,027) (3,058)
Lease liabilities (1,431) (1,530)
Current tax liability - (3,213)
Other taxes payable (935) (1,153)
Reclamation provisions (6,847) (623)
Legal and other provisions (2,941) (2,827)
Working capital¹ $ 31,990 $ 29,190
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
December 31,
2021
December 31,
2020
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56 th 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 "qua lified 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 comp any 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 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. Forward -looking information
contained in forward -looking statements can be identifi ed 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, e vents or results "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, 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 assumptio ns
with respect to forward -looking information contained herein, including, among other things, assumptions about the est imated 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 develop ments
in any jurisdiction in which the Company operates being consistent with its current expectations inclu ding, without limitation, the impact
of any potential power rationing, tailings facility regulation, exploration and mine operating licenses and permits being obt ained and
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56 th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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 fina ncial performance; uncertainties with respect to the price
of gold, labour disruptions, mechanical failures, increase in costs, environmental compliance and change in environmental leg islation
and regulation, weather delays and increased costs or productio n 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 sometim es 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 a re 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, unusu al or
unexpected geological formatio ns, 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 shou ld 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 ne ws 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. T he 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 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 op erating 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 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 December 31, 202 1, is set out in the Company's fourth
quarter 2021 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 gol d
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 guidanc e 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 fina ncing costs,
and taxes. A reconciliation of all -in sustaining cost to total production costs for the most rece nt reporting period, the quarter ended
December 31, 2021, is set out in the Company's fourth quarter 202 1 MD&A filed on SEDAR at www.sedar.com.