Jaguar Mining Reports Financial Results for the Fourth Quarter and Full Year 2022 __________________________________________________________________________________________
1
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
NEWS RELEASE
March 30, 2023 TSX:JAG
FOR IMMEDIATE RELEASE OTCQX:JAGGF
Jaguar Mining Reports Financial Results
for the Fourth Quarter and Full Year 2022
__________________________________________________________________________________________
Toronto, March 30, 2023 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG, OTCQX:JAGGF) today
announced financial results for the fourth quarter and full year ended December 31, 2022 . All figures are in US
Dollars, unless otherwise expressed.
Fourth Quarter Highlights
• Revenue decreased 15% to $36.1 million compared with $42.7 million in the fourth quarter of 2021 . The
decrease was due to a reduction in ounces sold (-10%) and a reduction in realized gold price ( -5%), The
Company produced 8% less ounces (21,116 vs. 22,903) and with sales of 20,940 ounces in Q4 2022 compared
to 23,497 ounces in Q4 of 2021 the Company saw an increase in inventory rather than a decrease.
• Gold production decreased by 8% to 21,116 ounces compared to 22,903 ounces in the fourth quarter of 2021.
The lower production rate was due to a reduction in tonnes of ore processed of 2% and a decrease in head
grade of 5%.
• Operating costs totaled $21.4 million an increase of 14% compared to $18.8 million in the fourth quarter of
2021. The increase in operating costs came predominantly from a 29% increase in secondary development
combined with the inflationary pressures of the first 6 months of the year.
• Cash operating costs1 increased to $1,024 per ounce of gold sold compared to $802 per ounce of gold sold in
the fourth quarter of 2021 due to the higher operating costs and the reduction in ounces sold.
• All-in sustaining costs1 increased to $1,597 per ounce of gold sold compare d to $1,127 per ounce of gold sold
in the fourth quarter of 2021 due to the cash cost increase explained above, combined with higher sustaining
capital expenditures including: additional primary development, rehabilitating a ventilation raise, and investing
in a new fleet of trucks for Turmalina and Pilar which was received at the end of December.
• Net income for Q4 2022 increased to $11.5 million, compared with $3.5 million in Q4 2021, which includes an
impairment reversal of $10.7 million in Q4 2022 due to the increase in inferred resources, compared with an
impairment charge of $10.1 million in Q4 2021. Others major variances included a $6.6 million decline in
revenue, $2.6 million increase in operating costs, $1.6 million reduction on foreign exchange gain, and an
income tax expense increase of $1.9 million.
• Free cash flow 1 was $1.5 million and was based on operating cash flow plus asset retirement obligation
expenditures, less capital expenditures, compared to $8.2 million in the fourth quarter of 2021. Free cash flow
was $72 per ounce of gold sold compared to $348 per ounce of gold sold in the fourth quarter of 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
Full Year Highlights
• Revenue decreased 6% to $142.5 million compared with $151.5 million in 2021, primarily due to lower ounces
of gold sold of 80,050 ounces as compared to 84,638 ounces in 2021, combined with a decrease in the average
realized gold price of $1,780 per ounce compared to $1,790 per ounce in 2021.
• Gold production for the year decreased 3% to 80,968 ounces compared to 83,878 ounces produced in 2021.
• Operating cash flow of $40.8 million; adjusted EBITDA of $45 million.
• Cash operating costs1 increased to $1,052 per ounce of gold sold compared to $831 per ounce of gold sold in
2021 mainly due to the reduction in ounces of gold sold , combined with inflation and an increase in secondary
development metres compared to 2021.
• All-in sustaining costs1 increased to $1,483 per ounce of gold sold compared to $ 1,215 in 2021, primarily due
to the increase of in cash operating cost1 explained above.
Cash Position and Working Capital1
• As at year end, the Company had a cash and cash equivalents position of $25.2 million, compared to $40.4
million as of December 31, 2021.
• As at year end , working capital 1 was $19.5 million, compared to $ 32 million as of December 31, 202 1, which
includes $3 million in short term loans from Brazilian banks.
Full Year 2023 Guidance
The Company previously provided its 2023 guidance on January 11, 2023. Details of production and cost guidance
for the year are summarized in the table below.
2023 Operating Parameters Low High
Production (oz of gold) 84,000 88,000
All-In Sustaining Costs ($/oz)1 $1,275 $1,375
(US$1:BRL5.20)
Vern Baker, President and CEO of Jaguar Mining stated: “We are pleased to report our fourth quarter and full year
financial results for 2022. It was a challenging year. We focused on investing in strengthening our mines, developing
the Faina project, and exploration. This investment in exploration, development, equipment, and project engineering
are providing the base for our future production. Our primary growth source remains the Faina project where we
have been investing in a n access ramp, in significant upgrading of the res ource through surface drilling, and in
progressing engineering to allow full definition of the project. For the year , we kept our total sustaining capital
relatively consistent while we were able to rehabilitate a ventilation raise and pay for a significant portion of a new
truck fleet for the Pilar mine. We also increased our growth and exploration spending by 90% as we invested
strongly into future opportunities.
In 2022, balance sheet strength and free cash flow generation enabled us t o invest a lmost $24 million in growth
projects, including advancing the Faina project . We also committed an additional $6 million into our greenfield
exploration effort while paying $7 million in dividends. Our cash balance was impacted in the fourth quart er with
more development, the rehabilitation of the ventilation raise and the purchase of a new fleet of haul trucks for Pilar.
These trucks match a partial fleet we have at Turmalina that have positively impacted performance in our mine
haulage.
_________________________________
1 This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-
GAAP Performance Measures section of the MD&A.
3
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
During the fourth quarter, our team continued to focus on consistent ounce production and increasing development
meters at our mines. Diamond drilling reduced during the quarter as our Faina drilling efforts came to an end and
we began preparing for new campaigns in 2023 at both mines and at several exploration opportunities.”
Fourth Quarter and Full Year 2022 Results
($ thousands, except where indicated)
2022 2021 2022 2021
Financial Data (Restated)1 (Restated)1
Revenue $ 36,108 $ 42,703 $ 142,500 $ 151,467
Operating costs 21,439 18,838 84,229 70,337
Depreciation 5,229 5,089 20,175 21,092
Gross profit 9,440 18,776 38,096 60,038
Net income1 11,525 3,552 21,440 24,055
Per share ("EPS") 0.16 0.05 0.30 0.33
EBITDA1 19,274 8,887 49,699 53,929
Adjusted EBITDA1,2,3 10,995 18,523 42,397 66,454
Adjusted EBITDA per share1,2,3 0.15 0.26 0.59 0.92
Cash operating costs (per ounce sold)2 1,024 802 1,052 831
All-in sustaining costs (per ounce sold)2 1,597 1,127 1,483 1,215
Average realized gold price (per ounce)2 1,724 1,819 1,780 1,790
Cash generated from operating activities 10,352 9,581 40,765 45,036
Free cash flow2 1,509 8,168 17,936 24,079
Free cash flow (per ounce sold)2 72 348 224 284
Sustaining capital expenditures2 10,289 6,015 26,417 25,671
Non-sustaining capital expenditures2 5,934 4,279 23,805 12,500
Total capital expenditures 16,223 10,294 50,222 38,171
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, 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.
3 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.
1 Restatement of the financial statements for the year ended December 31, 2021, further information available on the 2021 Restatement note.
2022 2021 2022 2021
Operating Data
Gold produced (ounces) 21,116 22,903 80,968 83,878
Gold sold (ounces) 20,940 23,479 80,050 84,638
Primary development (metres) 983 1,174 3,659 4,438
Exploration development (metres) 583 284 2,649 284
Secondary development (metres) 1,538 1,189 5,264 4,835
Definition, infill, and exploration drilling (metres) 12,757 27,818 93,311 89,181
Three months ended
December 31,
Year ended
December 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
2021 Restatement
During the preparation of the Company's financial statements for the year ended December 31, 2022, an error was
identified on the determination of the net book value in the impairment model for one of the cash -generating units
(CGUs) for the year ended December 31, 2021, and as such, required a restatement of the financial statements for
the year ended December 31, 2021, March 31 2022, June 30, 2022 and September 30, 2022 , to reflect an
impairment. There was no impact to the consolidated statement of cash flows as a result of this resta tement of
impairment charges. For further details, consult Note 27 of the audited consolidated financial statements for the
year ended December 31, 2022, available on SEDAR. KPMG LLP has not withdrawn its audit opinion letter dated
March 21, 2022, that accompanies the Company’s financial statements for the year ended December 31, 2021 (as
filed on SEDAR on March 21, 2022). Going forward in 2023, the Company will design and implement additional
internal controls to review the impact of past impairments and r eversals of past impairments on the calculation of
depreciation and net book values, as well as policies and procedures to improve the overall effectiveness of internal
control over financial reporting of the impairment model. Notwithstanding, the Company is confident that its
disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR) were effective for
the Company’s annual 2022 filings without a material weakness.
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 in formation to evaluate the Company ’s performance. Accordingly, they are intended to provide
additional information and should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. More specifically, Management believes that these figures are a useful indicator
to investors and management of a mine ’s performance as they provide: (i) a measure of the mine ’s cash margin
per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the
mine matures; and (iii) an internal benchmark of performance to allow for comparison against other mines. The
definitions of these performance measures and reconciliation of the Non -GAAP measures to reported IFRS
measures are outlined below.
Reconciliation of Free Cash Flow1
($ thousands, except where indicated)
2022 2021 2022 2021
Cash generated from operating activities $ 10,352 $ 9,581 $ 40,765 $ 45,036
Adjustments
Asset Retirement Obligation 1,446 4,602 3,588 4,714
Sustaining capital expenditures2 (10,289) (6,015) (26,417) (25,671)
Free cash flow $ 1,509 $ 8,168 $ 17,936 $ 24,079
Ounces of gold sold 20,940 23,479 80,050 84,638
Free cash flow per ounce sold $ 72 $ 348 $ 224 $ 284
Three months ended
December 31,
Year ended
December 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.
5
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 sustaining capital and non-sustaining capital expenditures1
($ thousands, except where indicated)
2022 2021 2022 2021
Operating costs 21,439$ 18,838$ 84,229$ 70,337$
General & administration expenses 1,636 1,507 6,925 5,703
Corporate stock-based compensation 77 88 1,163 1,044
Sustaining capital expenditures¹ 10,289 6,015 26,417 25,671
All-in sustaining cash costs 33,441 26,448 118,734 102,755
Reclamation (operating sites) - 7 8 60
All-in sustaining costs 33,441$ 26,455$ 118,742$ 102,815$
Non-sustaining capital expenditures 5,934 4,279 23,804 12,500
Exploration and evaluation costs (greenfield) 1,543 1,829 6,037 5,129
Reclamation (non-operating sites) - 94 3 155
Care and maintenance (non-operating sites) 162 237 609 1,013
All-in costs 41,080$ 32,894$ 149,195$ 121,612$
Ounces of gold sold 20,940 23,479 80,050 84,638
Cash operating costs per ounce sold² 1,024$ 802$ 1,052$ 831$
All-in sustaining costs per ounce sold² 1,597$ 1,127$ 1,483$ 1,215$
All-in costs per ounce sold² 1,962$ 1,401$ 1,864$ 1,437$
Average realized gold price 1,724$ 1,819$ 1,780$ 1,790$
Cash operating margin per ounce sold 700$ 1,017$ 728$ 959$
All-in sustaining margin per ounce sold 127$ 692$ 297$ 575$
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.
($ thousands)
2022 2021 2022 2021
Sustaining capital1
Primary development 5,778$ 4,129$ 16,830$ 15,700$
Brownfield exploration 220 316 1,097 1,042
Mine-site sustaining 4,177 1,454 8,059 8,501
Other sustaining capital2 114 116 431 428
Total sustaining capital1 10,289 6,015 26,417 25,671
Non-sustaining capital (including capital projects)1
Mine-site non-sustaining 4,348 1,862 19,991 5,882
Asset retirement obligation - non-sustaining2 1,446 2,261 3,588 4,233
Other non-sustaining capital1 140 156 226 2,385
Total non-sustaining capital1 5,934 4,279 23,805 12,500
Total capital expenditures 16,223$ 10,294$ 50,222$ 38,171$
Three months ended
December 31,
Year ended
December 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.
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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 Net Income (Loss) to EBITDA and Adjusted EBITDA 1
Working Capital1
($ thousands, except where indicated)
2022 2021
(Restated)1
2022 2021
(Restated)1
Net Income $ 11,525 $ 3,552 $ 21,440 $ 24,055
Income tax expense 1,884 - 5,426 7,939
Finance costs 617 227 2,581 776
Depreciation and amortization 5,248 5,108 20,252 21,159
EBITDA2 $ 19,274 $ 8,887 $ 49,699 $ 53,929
Impairment (reversal) charges (10,661) 10,135 (10,661) 10,135
Changes in other provisions and VAT taxes 1,283 (10) 1,188 1,358
Foreign exchange loss (gain) 1,022 (577) 1,008 (1,698)
Stock-based compensation 77 88 1,163 1,044
Other non-operating expenses (recoveries)3 - - - 1,686
Adjusted EBITDA2 $ 10,995 $ 18,523 $ 42,397 $ 66,454
Weighted average outstanding shares 72,452,927 72,441,622 72,461,530 72,396,926
Adjusted EBITDA per share2 $ 0.15 $ 0.26 $ 0.59 $ 0.92
Three months ended
December 31,
Year ended
December 31,
3 CentroGold royalty interest sales. As a result of the sale, the Company (i) derecognized the $8.5 million CentroGold project royalty interest asset, (ii) received and recorded
$7.0 million in Cash, (iii) recorded $0.2 million in legal and consulting costs associated with the transaction.
2 This is a non-GAAP financial performance measure with no standard definition under IFRS.
1 Restatement of the financial statements for the year ended December 31, 2021, further information available on the 2021 Restatement note.
Cash and cash equivalents $ 25,208 $ 40,373
Non-cash working capital
Other current assets:
Restricted cash 618 501
Inventory 16,239 14,546
Recoverable taxes 8,545 5,143
Other accounts receivable 343 92
Prepaid expenses and advances 3,615 2,176
Current liabilities:
Accounts payable and accrued liabilities (19,782) (15,660)
Notes payable (3,040) (3,027)
Lease liabilities (2,414) (1,431)
Current tax liability (1,881) -
Other taxes payable (1,056) (935)
Reclamation provisions (3,156) (6,847)
Legal and other provisions (3,751) (2,941)
Working capital¹ $ 19,488 $ 31,990
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
December 31,
2022
December 31,
2021
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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
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 information are provided for the purpose of providing information about manage ment's
expectations and plans relating to the future. All of the forward -looking information made in this news release is qualified by the
cautionary statements below and those made in our other filings with the securities regulators in Canada. Forward-looking information
contained in forward -looking statements can be identified by the use of words such as "are expected," "is forecast," "is targeted,"
"approximately," "plans," "anticipates," "projects," "anticipates," "continue," "estimate," "believe" or variations of such words and phrases
or statements that certain actions, events or results "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, th e 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 estim ates 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 obt ained and
8
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th 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 financial 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 production delays due to natural disasters, power disruptions, procurement and
delivery of parts and supplies to the operations; uncertainties inherent to capital markets in general (including the sometimes volatile
valuation of securities and an uncertain ability to raise new capital) and other risks inherent to the gold exploration, deve lopment and
production industry, which, if incorrect, may cause actual results to differ materially from tho se 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.
Non-IFRS Measures
This news rele ase 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 produced are derived fro m
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, 2022, is set out in the Company's fourth
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 in dustry 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 s um 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
December 31, 2022, is set out in the Company's fourth quarter 2022 MD&A filed on SEDAR at www.sedar.com.