Jaguar Mining Reports First Quarter 2019 Financial and Operating Results __________________________________________________________________________________________
NEWS RELEASE
May 15, 2019 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports First Quarter 2019 Financial and Operating Results
__________________________________________________________________________________________
Toronto, May 15, 201 9 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial and operating results for the three months (“Q1 2019”) and ended March 31, 2019. Detailed financial
results for Q 1 2019 are available on www.sedar.com and on the Company's website www.jaguarmining.com. All
figures are in US dollars, unless otherwise expressed.
Q1 2019 Operating Summary
• Consolidated gold production of 16,365 ounces (160,600 tonnes milled, average grade of 3.59 g/t) declined 13%
compared to 18,865 in Q1 2018
• Pilar mine gold production declined 7% to 8,840 ounces compared to 9,553 ounces in Q1 2018
• Turmalina mine gold production declined 11% to 7,525 ounces compared to 8,442 ounce in Q1 2018
• Primary development increased 9% to 1,161 m
• Sustaining capital expenditures of $7.1 million invested in mining equipment and development
Q1 2019 Financial Results Summary
• Gross profit of $3.2 million includes impact of a 5% decrease in operating expenses year-over-year
• Consolidated C ash ope rating costs ("COC") increased 9% to $870 per ounce . Lower gold production was
partially offset by lower operating expenditures.
• Consolidated all-in sustaining costs ("AISC") increased 11% to $1,428 per ounce
• Operating cash flow of $2.5 million; adjusted EBITDA of $3.6 million
• Net loss of $1.8 million, or net loss per share of $0.01
• Completed a secured bridge facility ("Facility") for $7.85 million with Auramet which expires on July 15, 2019.
• Cash balance of approximately $7.9 million as of March 31, 2019 compared to a cash balance of $6. 3 million
at December 31, 2018
"First quarter results reflect lower production levels from both Turmalina and Pilar. Operational delays related to
slot raises, geotechnical issues and lack of flexibility at Turmalina resulted in lower tonnes milled of 65,000kt. We
continue to focus on executing a turnaround plan at Turmalina that will address operational challenges faced during
the quarter.
“With new production panels in Orebody A and Orebody C -SE planned to start in late 2019, we expect to see
increasing production and mining flexibility along with increasing developed reserves. Exploration success in the
Orebody C-Central will provide a third production area in 2020 that will increase production capability. Geotechnical
issues will be managed with systematic stope sequencing, paste fill, and stope designs that match geotechnical
conditions. Mine working hours increased due to implementing a four shift per day schedule in February 2019 at
Turmalina and May 2019 in Pilar.”
“At Pilar, production during the first quarter declined on lower realized grade of 3.34 g/t as a result of excess dilution
in a large stope, while Caete metallurgical recovery also declined due to leach agitation and gravity circuit controls.
Leach agitators were replaced in February 2019 as well as other operational improvements. Recovery increased
to 88% in February and March compared to 84% in January. The CIP agitators are planned to be replaced in May
and June 2019 which should further increase recovery.”
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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
“Looking ahead, our focus remains on turning around operations at Turmalina to return to historical levels of
15 kozs per quarter over 2 years. While we are making progress, we still have work to do. Development progress
over the next 3 quarters is key. As we continue to execute, we also expect our cost -per-ounce performance to
improve moving forward.”
Q1 2019 Financial Results
($ thousands, except where indicated)
2019 2018
Financial Data
Revenue $ 21,416 $ 25,228
Operating costs 14,630 15,399
Depreciation 3,610 4,885
Gross profit 3,176 4,944
Net loss (1,839) (1,781)
Per share ("EPS") (0.01) (0.01)
EBITDA1 2,653 4,154
Adjusted EBITDA1,2 3,577 5,573
Adjusted EBITDA per share1 0.01 0.02
Cash operating costs (per ounce sold)1 870 800
All-in sustaining costs (per ounce sold) 1 1,428 1,289
Average realized gold price (per ounce)¹ 1,273 1,311
Cash generated from operating activities 2,523 4,979
Free cash flow1 (4,563) (1,688)
Free cash flow (per ounce sold)1 (271) (88)
Sustaining capital expenditures1 7,086 6,667
Non-sustaining capital expenditures1 189 493
Total capital expenditures 7,275 7,160
For the three months ended
March 31,
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, adjusted EBITDA per share, and gross profit (excluding depreciation) 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 and write downs. For more details refer to the Non-GAAP Performance Measures section of the
MD&A.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q1 2019 Operating Results
Cash Position, Working Capital & Corporate
• As at March 31, 2019, the Company had a cash position of $7.9 million, compared to $6.3 million as at
December 31, 2018. The March 31, 2019, cash balance excludes a $2 million restricted cash deposit held with
Auramet, and also $0.5 million margin deposit to Banco Votorantim S.A.
• As at March 31, 2019, working capital was negative $8.3 million, compared to negative $2.4 million as at
December 31, 2018, which includes $6.6 million (December 31, 2018 - $7.3 million) in loans from Brazilian
banks, which mature every six months and are expected to be rolled forward.
• On March 15, 2019, the Company entered into a senior secured loan facility (“Auramet loan facility”) agreement
with Auramet International LLC for $7.85 million to fund working capital. The Auramet loan facility was provided
by security agreements comprising the Company’s and MSOL’s present and future assets, the shares of MSOL,
and a loan guarantee by MSOL. As per the agreement, interest shall be prepaid and non -reimbursable in the
amount of $350,000, and principal is due at maturity on July 15, 2019.
• The Company has also retained an external executive recruitment firm to search for a permanent Chief
Executive Officer. The hiring process is in an advance stage and the Company expects to finalize the po sition
in Q2 2019.
Qualified Persons
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan
Victor Hill, BSc (Hons) (Economic Geology - UCT), Senior Expert Advisor Geology and Exploration to the Jaguar
Mining Management Committee, 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 second largest
gold land position in the Iron Quadrangle with just over 25,000 hectares.
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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
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 covering an area of approximately 64,000 hectares. 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 Min ing 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 and the Roça
Grande Mine which has been on care and maintenance since April 2018. Additional information is available on the
Company's website at www.jaguarmining.com.
For further information please contact:
Ben Guenther
Interim Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Hashim Ahmed
Chief Financial Officer
Jaguar Mining Inc.
416-847-1854
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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
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 "may," "could," "would," "might," or "will" b e 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, p roduction 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 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, without limitation, the impact of any potential power ra tioning, tailings facility regulation, exploration and
mine operating licenses and permits being obtained an 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
disasters, power disruptions, procureme nt 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 expl oration, 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 are risks and hazards associated with the business of gold explo ration,
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 insurance, to cover these risks). Accordingly, readers should not place undue reliance on forward-
looking information.
For additional information with respect to these and other factors and assumptions underlying the forward -looking
information made in this news release, see the Company's most recent Annual Information Form and
Management's Discussion and Analysis, as well as other public disclosure documents that can be accessed under
the issuer profile of "Jaguar Mining Inc." on SEDAR at www.sedar.com. The forward -looking information set forth
herein reflects the Company's reasonable expectations as at the date of this news release and is subject to change
after such date. The Company disclaims any intention or obligation to update or revise any forward -looking
information, whether as a result of new information, future events or otherwise, other than as required by law. The
forward-looking information contained in this news release is expressly qualified by this cautionary statement.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Non-IFRS Measures
This news release provides certain financial measures that do not have a standardized meaning prescribed by
IFRS. Readers are cautioned to review the below stated footnotes where the Company expanded 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 cost s 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 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 directly comparable measure prepared in
accordance with IFRS is total production costs. A reconciliation of cash operating costs per ounce to total production
costs for the most recent reporting period, the quarter ended March 31, 2019 , is set out in the Company's first
quarter 2019 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 non -cash items the Company's definitio n conforms to the all -in sustaining cost definition
as set out by the World Gold Council in its guidance note dated June 27, 2013. The Company defines all -in
sustaining cost as the sum of production costs, sustaining capital (capital required to maintain c urrent operations
at existing levels), corporate general and administrative expenses, and in -mine exploration expenses. All -in
sustaining cost excludes growth capital, reclamation cost accretion related to current operations, interest and other
financing costs, and taxes. A reconciliation of all -in sustaining cost to total production costs for the most recent
reporting period, the quarter ended March 31, 2019, is set out in the Company's first quarter 2019 MD&A filed on
SEDAR at www.sedar.com.