Jaguar Mining Reports Financial Results for the Second Quarter 2022 Provides an updated production result for Q2 2022 __________________________________________________________________________________________
NEWS RELEASE
August 8, 2022 TSX:JAG
FOR IMMEDIATE RELEASE OTCQX:JAGGF
Jaguar Mining Reports Financial Results
for the Second Quarter 2022
Provides an updated production result for Q2 2022
__________________________________________________________________________________________
Toronto, August 8, 2022 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG, OTCQX:JAGGF) today
announced financial results for the second quarter (“Q2 2022”) ended June 30. 2022. All figures are in US Dollars,
unless otherwise expressed.
Q2 2022 Production Revision
• The Company reported a revised c onsolidated gold production of 22,028 ounces in Q2 2022, compared to
21,036 ounces reported in its press release dated July 12, 2022, reflecting an additional 993 ounces found
within the Turmalina electrowinning tank walls during a Q2 metallurgical reconciliation.
• The Revised Consolidated Production Table for Q2 2022 is shown below on page 3.
Q2 2022 Financial Highlights
• Revenue for Q2 2022 increased 4% to $37.9 million, compared with $36.3 million in Q2 2021, mainly due to an
increase in the average realized gold price of $1,852/oz in Q2 2022 as compared to $1,795/oz. for Q2 2021.
• Operating costs totaled $21.1 million in Q2 2022 compared to $17.4 million in Q2 2021. The 2 1% increase in
operating costs was mainly due to inflation in the past twelve months. Higher operating costs were also
impacted by increase in secondary development, which is fully expensed as operating costs, from 1,166 metres
in Q2 2021 to 1,221 metres in Q2 2022, as well as due to the strengthening of the Brazilian Real versus the US
dollar, with the average rate during Q2 2022 being R$4.93 per US dollar compared to R$5.29 in Q2 2021.
• Net Income was $9.5 million in Q2 2022 compared to $3 million in Q2 2021 resulting in an increase of $6.5
million. This gain was mainly due to the foreign exchange impact on translation of monetary assets and liabilities
of $6.5 million (exchange rate on June 30, 2022, was R$5.24 per US dollar as compared to R$4.74 per US
dollar on March 31, 2022), $1.6 million higher revenue, a reduction of $2.4 million in income taxes, partially
offset by an increase of $3.7 million in operating cos ts. The exchange rate closed at R$5.24 per US dollar on
June 30, 2022 (R$5.00 per US dollar on June 30, 2021).
• Cash operating costs¹ per ounce sold increased 20% to $1,029 per ounce of gold in Q2 2022 up from $858 in
Q2 2021 as a result of the 2 1% increase in operating costs, due to inflationary pressure on consumables and
labour, combined with the valuation of the Brazilian Real versus the US dollar, with a 7% increase in the average
exchange rate during Q2 2022 being R$4.93 per US dollar compared to R$5.29 per US dollar in Q2 2021.
• Free cash flow ¹ was $5.5 million for Q2 2022 based on operating cash flow plus asset retirement obligation
expenditures less capital expenditures, compared to $5.8 million in Q2 2021. Free cash flow was $270 per
ounce sold in Q2 2022 compared to $285 per ounce sold in Q2 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 June 30, 2022, the Company had cash and cash equivalents of $30.5 million, compared to $40.4 million
reported for December 31, 2021.
• As of June 30, 2022, working capital¹ was $22.4 million, compared to $32 million on December 31, 2021, which
includes $3 million (December 31, 2021 – $3 million) in short-term loans from Brazilian banks. The decrease in
working capital is due to lower operating cash flow generated during YTD 2022, combined with the strength of
the Brazilian Real as compared to the US dollar, during the same period.
Q2 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 Aug 31, 2022, to shareholders of record as of the close of
business on Aug 23, 2022. The dividend qualifies as an eligible dividend for Canadian income tax purposes.
• 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 to determine whether any additional dividends will be declared
on Shares for subsequent quarters.
H2 2022 Guidance
The Company is expecting to produce 45,000 ounces, with an AISC1 of $1,325 per ounce, ± 5% variance in the
second half (H2 2022) of the year.
Vern Baker, President and CEO of Jaguar Mining stated: “The Jaguar team worked hard to bring Q2 2022 back on
track with our goals and objectives after a challenging period in Q1 of this year. Our performance in Q2 2022
showed that the team can operate in a manner consistent with producing at sustainable rates while we are
increasing total development rates and investing in projects and exploration for the future. Jaguar con tinued to
produce the cash flow that allows our company to fund exploration in a great gold jurisdiction, invest in new projects
and turn that exploration success into real value for all our stakeholders.
All of us at Jaguar are committed to effectively e xecute the second half of 2022 where we expect to keep costs
down, produce at sustainable rates, invest in great exploration, develop reserves, continue projects that grow our
company, and evaluate M&A opportunities.”
_________________________________
1 This is a Non -GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non -GAAP
Performance Measures section of the MD&A.
3
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q2 2022 Financial Results
Revised Consolidated Production Table Q2 2022
($ thousands, except where indicated)
2022 2021 2022 2021
Financial Data
Revenue $ 37,927 $ 36,330 $ 68,546 $ 68,015
Operating costs 21,075 17,365 40,692 32,126
Depreciation 4,866 5,636 9,561 10,396
Gross profit 11,986 13,329 18,293 25,493
Net income 9,478 2,980 3,444 9,088
Per share ("EPS") 0.13 0.04 0.05 0.13
EBITDA1 15,177 11,468 16,911 24,544
Adjusted EBITDA1,2 12,535 15,089 19,321 27,040
Adjusted EBITDA per share1,2 0.17 0.21 0.27 0.37
Cash operating costs (per ounce sold)1 1,029 858 1,100 847
All-in sustaining costs (per ounce sold)1 1,366 1,281 1,506 1,288
Average realized gold price (per ounce)1 1,852 1,795 1,853 1,794
Cash generated from operating activities 9,440 12,634 17,147 19,100
Free cash flow1 5,535 5,761 8,133 5,956
Free cash flow (per ounce sold)1 270 285 220 157
Sustaining capital expenditures1 4,612 6,873 10,425 13,144
Non-sustaining capital expenditures1 6,805 3,654 11,284 6,461
Total capital expenditures 11,417 10,527 21,709 19,605
Six months ended
June 30,
Three months ended
June 30,
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 2022 2021
Operating Data
Gold produced (ounces) 22,028 20,212 38,691 38,372
Gold sold (ounces) 20,482 20,235 36,989 37,912
Primary development (metres) 1,627 1,112 3,001 1,990
Secondary development (metres) 1,221 1,166 2,467 2,304
Definition, infill, and exploration drilling (metres) 30,631 22,298 56,936 41,492
Three months ended
June 30,
Six months ended
June 30,
Turmalina Pilar Total Turmalina Pilar Total
Tonnes milled (t) 101,000 127,000 228,000 100,000 114,000 214,000
Average head grade (g/t) 3.10 3.73 3.45 3.01 3.65 3.35
Recovery % 87% 87% 87% 88% 87% 87%
Gold ounces
Produced (oz) 8,816 13,212 22,028 8,581 11,631 20,212
Sold (oz) 7,643 12,839 20,482 8,846 11,389 20,235
Development
Primary (m) 937 690 1,627 742 370 1,111
Secondary (m) 695 526 1,221 649 517 1,166
Definition, infill, and exploration drilling
(m) 20,790 9,815 30,605 11,007 7,658 18,665
Quarterly Summary
Q2 2022 Q2 2021
4
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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 EBIT DA 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 conventio nal 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 m easures 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 measur es 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. Operating expenses include mine site operating costs such
as mining, processing and administration as well as royalties, but excludes depreciation.
($ thousands, except where indicated)
2022 2021 2022 2021
Operating costs 21,075$ 17,365$ 40,692$ 32,126$
General & administration expenses 1,850 1,555 3,627 2,959
Corporate stock-based compensation 447 115 970 582
Sustaining capital expenditures¹ 4,612 6,873 10,425 13,144
All-in sustaining cash costs 27,984 25,908 55,714 48,811
Reclamation (operating sites) - 7 8 15
All-in sustaining costs 27,984$ 25,915$ 55,722$ 48,826$
Non-sustaining capital expenditures 6,805 3,654 11,284 6,461
Exploration and evaluation costs (greenfield) 1,599 1,309 3,120 2,546
Reclamation (non-operating sites) 1 21 57 38
Care and maintenance (non-operating sites) 132 283 311 614
All-in costs 36,521$ 31,182$ 70,494$ 58,485$
Ounces of gold sold 20,482 20,235 36,989 37,912
Cash operating costs per ounce sold² 1,029$ 858$ 1,100$ 847$
All-in sustaining costs per ounce sold² 1,366$ 1,281$ 1,506$ 1,288$
All-in costs per ounce sold² 1,783$ 1,541$ 1,906$ 1,543$
Average realized gold price 1,852$ 1,795$ 1,853$ 1,794$
Cash operating margin per ounce sold 823$ 937$ 753$ 947$
All-in sustaining margin per ounce sold 486$ 514$ 347$ 506$
Three months ended
June 30,
Six months ended
June 30,
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
All-in sustaining cost performance reflects all of the expenditures 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. Th e Company believes that this measure will be useful to
external users in assessing operating performance and the ability to generate free cash flow from current
operations.
The Company defines all -in sustaining costs as the sum of operating cash costs (pe r 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
that are expansionary in nature, exploration related to growth projects, financing costs, debt repayments and taxes.
Reconciliation of sustaining capital and non-sustaining capital expenditures1
Reconciliation of Free Cash Flow1
($ thousands)
2022 2021 2022 2021
Sustaining capital1
Primary development 3,221$ 4,165$ 7,048$ 7,382$
Brownfield exploration 239 243 636 524
Mine-site sustaining 1,061 - 2,545 -
Engineering - - - -
Equipment 1,061 2,465 2,545 5,238
Other sustaining capital2 91 - 196 -
Total sustaining capital1 4,612 6,873 10,425 13,144
Non-sustaining capital (including capital projects)1
Mine-site non-sustaining 6,098 3,654 9,873 6,461
Asset retirement obligation - non-sustaining3 707 - 1,411 -
Total non-sustaining capital1 6,805 3,654 11,284 6,461
Total capital expenditures 11,417$ 10,527$ 21,709$ 19,605$
Three months ended
June 30,
Six months ended
June 30,
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 2022 2021
Cash generated from operating activities $ 9,440 $ 12,634 $ 17,147 $ 19,100
Adjustments
Asset Retirement Obligation 707 - 1,411 -
Sustaining capital expenditures2 (4,612) (6,873) (10,425) (13,144)
Free cash flow $ 5,535 $ 5,761 $ 8,133 $ 5,956
Ounces of gold sold 20,482 20,235 36,989 37,912
Free cash flow per ounce sold $ 270 $ 285 $ 220 $ 157
Three months ended
June 30,
Six months ended
June 30,
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.
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 EBITDA1
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").
($ thousands, except where indicated)
2022 2021 2022 2021
Net Income $ 9,478 $ 2,980 $ 3,444 $ 9,088
Income tax expense 146 2,552 2,542 4,448
Finance costs 668 285 1,326 579
Depreciation and amortization 4,885 5,651 9,599 10,429
EBITDA $ 15,177 $ 11,468 $ 16,911 $ 24,544
Changes in other provisions and VAT taxes 90 225 23 926
Foreign exchange loss (gain) (3,179) 3,281 1,417 988
Stock-based compensation 447 115 970 582
Adjusted EBITDA1 $ 12,535 $ 15,089 $ 19,321 $ 27,040
Weighted average outstanding shares 72,465,756 73,501,972 72,463,674 73,501,972
Adjusted EBITDA per share1 $ 0.17 $ 0.16 $ 0.27 $ 0.16
Three months ended
June 30,
Six months ended
June 30,
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
Cash and cash equivalents $ 30,495 $ 40,373
Non-cash working capital
Other current assets:
Restricted cash 498 501
Inventory 16,971 14,546
Recoverable taxes 3,757 5,143
Other accounts receivable 2,913 92
Prepaid expenses and advances 2,469 2,176
Current liabilities:
Accounts payable and accrued liabilities (19,139) (15,660)
Notes payable (3,032) (3,027)
Lease liabilities (1,464) (1,431)
Current tax liability (146) -
Other taxes payable (1,063) (935)
Reclamation provisions (6,131) (6,847)
Legal and other provisions (3,773) (2,941)
Working capital¹ $ 22,355 $ 31,990
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
June 30,
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
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 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 " August," "could," "would," "might," or "will" be taken, occur or b e achieved. All
statements, other than statements of historical fact, August be considered to be or include forward -looking information. This news
release contains forward-looking information regarding, among other things, expected sales, production statis tics, ore grades, tonnes
milled, recovery rates, cash operating costs, definition/delineation drilling, the timing and amount of estimated future prod uction, 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, restar ting
suspended or disrupted operations, continuous improvement initiatives, and resolution of pe nding 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, with out
limitation, the impact of any potential power rationing, tailing s 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, environmental compliance and
change in environmental legislation and regulation, weather delays and increased costs or production delays due to natural di sasters,
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
8
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
exploration, develo pment and production industry, which, if incorrect, August 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 gol d
exploration, deve lopment, mining 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 afte r such date. The Company disclaims any intention or obligation to update or revise any forward -looking
information, whether as a result of new information, future events or otherwise, other than as required by law. The forward -looking
information contained in this news release is expressly qualified by this cautionary statement.
Non-IFRS Measures
This news release provides certain financial 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 June 30. 2022, is set out in the Company's second 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 n on-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 ca pital (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 opera tions, 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 June
30. 2022, is set out in the Company's second quarter 2022 MD&A filed on SEDAR at www.sedar.com.