Jaguar Mining Reports Financial Results FOR the Second Quarter 2024 __________________________________________________________________________________________
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
JAGUAR MINING REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER 2024
__________________________________________________________________________________________
Toronto, August 7, 202 4 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG,
TCQX:JAGGF) announces financial results for the second quarter ended June 30, 2024. All figures are in US
Dollars, unless otherwise expressed.
Second Quarter Highlights
• Gold production was 16,829 ounces, marginally higher than the 16,750 ounces produced in the second quarter
of 2023, reflecting a 21% increase in grade offset by a 16% reduction in ore tonnes processed.
• Gold sold was 19,022 ounces representing a 12% increase from the 16,917 ounces sold in the second quarter
of 2023. Realized gold prices for the quarter were $2,354 per ounce , 20% higher than the $1,962 per ounce
realized in the second quarter of 2023.
• Cash operating costs per ounce¹ decreased by 9% to $1,046 per ounce of gold sold from $1,150 per ounce of
gold sold in the second quarter of 2023. All-in sustaining costs (AISC) per ounce¹ decreased by 15% to $1,517
per ounce of gold sold from $1,781 per ounce of gold sold in the second quarter of 2023. The decrease reflects
the volume impact of 12% higher ounces sold and $2 million lower sustaining capital expenditures in the current
quarter compared to the same quarter of 2023.
• Revenue for the quarter was $44.8 million, 35% higher than the $33.2 million in revenue for the second quarter
of 2023 driven by higher ounces-sold volume and higher realized gold prices year-over-year.
• Operating costs for the quarter were $ 19.9 million compared to operating costs of $ 19.5 million in the second
quarter of 2023.
• Net income for the quarter was $13.5 million ($0.17 per share) compared to a loss of $1.1 million (loss of $0.02
per share) in the second quarter of 2023.
• Free cash flow1 for the quarter was $15.2 million, which represents a significant increase compared to free cash
flow of $2.4 million in the second quarter of 2023. This is calculated as operating cash flow plus asset retirement
obligation expenditures, less sustaining capital. Free cash flow per ounce1 sold for the quarter was $ 801 per
ounce of gold sold compared to $141 per ounce of gold sold in the second quarter of 2023.
Cash position and working capital1
• As of June 30, 2024, the Company had cash and cash equivalents of $37.4 million, compared to $22.0 million
in cash and cash equivalents as of December 31, 2023.
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.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
• This $15.4 million increase in cash year to date mainly reflects higher realized gold prices and higher average
grades with positive margins on gold sales during the first half of 2024 , in addition to a $4 million collection on
an account receivable.
• As of June 30, 2024, working capital was $ 28.4 million, compared to working capital of $ 12.6 million as of
December 31, 2023.
Vern Baker, President and CEO of Jaguar, stated : “I am very pleased with the performance of our operations this
quarter. At both of our mines we are focusing on the development of new mining areas (BA -Torre at Pilar, and
Faina at Turmalina) while producing profitable ounces. Overall, our production increased slightly year -over-year
and quarter-over-quarter. At Pilar production return ed to above 10,000 ounces for the quarter. At Turmalina the
team is adapting their focus to utilize higher grades in older orebodies while developing new orebodies in the Faina
zone. Both mines realized an increase in grade. At Pilar higher grade ore from our BA -Torre zone and the LPA
section of our main zone contributed to the grade increase. The team at Pilar has been pushing development
headings on five separate sub -levels to start building a production platform in the BA -Torre structure. During the
quarter, Turmalina achieved a milestone with the first tonnage from the Faina zone being milled. Ore generated by
development was processed at the Turmalina plant, which produced 414 gold ounces as the first production
contributed from Faina. This also contributed to an increase in head grade at Turmalina. Continuing development
and first stope production from the Faina zone is expected in the second half of 2024.
I am also pleased with our financial results this quarter. With the tailwinds of gold price s and FX on the Brazilian
Real, it was a very good quarter for us. With gold sales exceeding production as timing allow ed the reduction of
inventory, we realized robust revenue and free cash flow this quarter. Our all-in sustaining costs also decreased by
over $250 per ounce during the quarter. While we are developing two areas in our operating mines and working on
bringing our Onças de Pitangui property into production, we also increased our cash balance by $11.0 million . We
now have $37.4 million in cash and cash equivalents and no long term debt . We are well positioned to fund our
future growth plans and ongoing exploration programs.
Going forward, we expect production at Turmalina to gradually increase as additional tonnes from Faina start to
impact the production rate. At Pilar, we expect production to remain consistent with the current quarter for the
remainder of 2024. Our team will continue to focus on developing sufficient access in the BA -Torre zone, with the
goal of achieving consistent production from this area in 2025.
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
Second Quarter 2024 Results
($ thousands, except where indicated) Three months ended Six months ended
June 30 June 30
2024 2023 2024 2023
Financial Data
Revenue $ 44,779 $ 33,192 $ 77,356 $ 69,036
Operating costs 19,897 19,462 38,212 40,074
Depreciation 7,828 6,220 14,989 11,986
Gross profit 17,054 7,510 24,155 16,976
Net income (loss) 13,469 (1,101) 16,295 1,371
Per share ("EPS") 0.17 (0.02) 0.21 0.02
EBITDA 25,159 7,415 37,174 18,462
Adjusted EBITDA 1,2 22,381 10,554 33,701 23,039
Adjusted EBITDA per share 1,2 0.28 0.15 0.43 0.32
Cash operating costs (per ounce sold) 1 1,046 1,150 1,101 1,115
All-in sustaining costs (per ounce sold) 1 1,517 1,781 1,558 1,672
Average realized gold price (per ounce)1 2,354 1,962 2,228 1,922
Cash generated from operating activities 20,766 9,973 28,875 20,338
Free cash flow1 15,233 2,378 18,739 5,723
Free cash flow (per ounce sold)1 801 141 540 159
Sustaining capital expenditures1 6,301 8,306 11,406 15,519
Non-sustaining capital expenditures1 4,505 3,539 7,642 5,750
Total capital expenditures 10,806 11,845 19,048 21,269
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.
Non-GAAP Performance Measures
Three months ended Six months ended
June 30 June 30
2024 2023 2024 2023
Operating Data
Gold produced (ounces) 16,829 16,750 33,006 34,906
Gold sold (ounces) 19,022 16,917 34,714 35,925
Primary development (metres) 1,273 1,552 2,202 2,810
Exploration development (metres) 679 403 1,157 619
Secondary development (metres) 1,130 1,238 2,212 2,644
Definition, infill, and exploration drilling (metres) 9,229 10,420 16,072 22,325
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
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 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 to non-sustaining capital expenditures1
($ thousands) Three months ended Six months ended
June 30 June 30
2024 2023 2024 2023
Sustaining capital1
Primary development $ 4,124 $ 5,543 $ 7,844 $ 10,704
Brownfield exploration 312 488 640 787
Mine-site sustaining 1,764 2,152 2,713 3,791
Equipment 1,764 2,152 2,713 3,791
Other sustaining capital2 101 123 209 237
Total sustaining capital1 6,301 8,306 11,406 15,519
Non-sustaining capital (including capital projects) 1
Mine-site non-sustaining 3,737 2,828 6,374 4,846
Asset retirement obligation - non-sustaining2 768 711 1,270 904
Other non-sustaining capital1 - - (2) -
Total non-sustaining capital1 4,505 3,539 7,642 5,750
Total capital expenditures $ 10,806 $ 11,845 $ 19,048 $ 21,269
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.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
Reconciliation of Free Cash Flow1
($ thousands, except where indicated) Three months ended Six months ended
June 30 June 30
2024 2023 2024 2023
Cash generated from operating activities $ 20,766 $ 9,973 $ 28,875 $ 20,338
Adjustments
Asset Retirement Obligation 768 711 1,270 904
Sustaining capital expenditures2 (6,301) (8,306) (11,406) (15,519)
Free cash flow $ 15,233 $ 2,378 $ 18,739 $ 5,723
Ounces of gold sold 19,022 16,917 34,714 35,925
Free cash flow per ounce sold $ 801 $ 141 $ 540 $ 159
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.
Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold1
($ thousands, except where indicated) Three months ended Six months ended
June 30 June 30
2024 2023 2024 2023
Operating costs $ 19,897 $ 19,462 $ 38,212 $ 40,074
General & administration expenses 2,097 1,988 3,896 3,689
Corporate stock-based compensation 428 377 436 795
Sustaining capital expenditures¹ 6,301 8,306 11,406 15,519
All-in sustaining cash costs 28,723 30,133 53,950 60,077
Reclamation (operating sites) 125 - 145 1
All-in sustaining costs $ 28,848 $ 30,133 $ 54,095 $ 60,078
Non-sustaining capital expenditures 4,505 3,539 7,642 5,750
Exploration and evaluation costs (greenfield) 378 944 960 1,931
Reclamation (non-operating sites) (50) - (63) 1
Care and maintenance (non-operating sites) 150 174 340 343
All-in costs $ 33,831 $ 34,790 $ 62,974 $ 68,103
Ounces of gold sold 19,022 16,917 34,714 35,925
Cash operating costs per ounce sold² $ 1,046 $ 1,150 $ 1,101 $ 1,115
All-in sustaining costs per ounce sold² $ 1,517 $ 1,781 $ 1,558 $ 1,672
All-in costs per ounce sold² $ 1,779 $ 2,057 $ 1,814 $ 1,896
Average realized gold price $ 2,354 $ 1,962 $ 2,228 $ 1,922
Cash operating margin per ounce sold $ 1,308 $ 812 $ 1,127 $ 807
All-in sustaining margin per ounce sold $ 837 $ 181 $ 670 $ 250
1 Capital expenditures are included in our calculation of all-in sustaining costs and all-in costs.
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.
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
Reconciliation of Net Income to EBITDA and Adjusted EBITDA 1
($ thousands, except where indicated) Three months ended Six months ended
June 30 June 30
2024 2023 2024 2023
Net Income $ 13,469 $ (1,101) $ 16,295 $ 1,371
Income tax expense 3,273 1,521 4,522 3,417
Finance costs 556 757 1,301 1,651
Depreciation and amortization 7,861 6,238 15,056 12,023
EBITDA1 $ 25,159 $ 7,415 $ 37,174 $ 18,462
Changes in other provisions and VAT taxes 309 359 817 428
Foreign exchange loss (3,515) 2,403 (4,726) 3,354
Stock-based compensation 428 377 436 795
Adjusted EBITDA1 $ 22,381 $ 10,554 $ 33,701 $ 23,039
Weighted average outstanding shares 79,093,609 72,715,206 79,080,137 72,640,143
Adjusted EBITDA per share1 $ 0.28 $ 0.15 $ 0.43 $ 0.32
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
Working capital1
($ thousands)
June 30 December 31
2024 2023
Cash and cash equivalents $ 37,410 $ 22,041
Other current assets:
Restricted cash 953 897
Inventory 14,550 15,639
Recoverable taxes 4,212 5,584
Other accounts receivable 337 310
Prepaid expenses and advances 1,980 1,556
Current liabilities:
Accounts payable and accrued liabilities (15,030) (16,082)
Notes payable (3,046) (3,295)
Lease liabilities (841) (1,953)
Current tax liability (3,149) (1,381)
Other taxes payable (998) (1,334)
Reclamation provisions (3,707) (4,298)
Legal and other provisions (4,253) (5,068)
Working capital¹ $ 28,418 $ 12,616
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
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, who is Advisor Exploration and Geology to Jaguar
Mining Inc. and is a "qualified person" as defined by National Instrument 43 -101 - Standards of Disclosure for
Mineral Projects ("NI 43-101").
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
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 over 55,000 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
Alfred Colas
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," "est imate,"
"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 achieved. All statements, other than statements of historical fact, may be considere d to
be or includ e forward -looking information. This news release contains forward -looking information regarding, among other
things, the anticipated impact of planned changes in mining systems and cost cutting initiatives on the Company’s future
performance and production results , information related to 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 th e 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 pending litigation. The Company has
made numerous assumptions with respect to forward -looking information contained herein, including, among other things,
assumptions about the estimated timeline for the development of its mi neral 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
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto Ontario M5C 3A1
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, environmental compliance and change in environmental legislation
and regulation, weather delay s 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 se curities 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 tho se
anticipated by the Company and described herein. In addition, there are 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, 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 insura nce,
to cover these risks). Accordingly, readers should not place undue reliance on forward-looking information.