Jaguar Mining Reports First Quarter 2020 Financial Results Free Cash Flow and Stronger Liquidity __________________________________________________________________________________________
NEWS RELEASE
May 13, 2020 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports First Quarter 2020 Financial Results
Free Cash Flow and Stronger Liquidity
__________________________________________________________________________________________
Toronto, May 13, 2020 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial results for the first quarter (“Q 1 2020”) ended March 31, 2020. All figures are in US Dollars, unless
otherwise expressed.
Q1 2020 Financial Highlights
• Gold production increased 28% with 21,008 ounces compared to 16,365 ounces in Q1 2019;
• Consolidated C ash Operating Costs ("COC") decreased 20% to $693 per ounce mainly due to increase in
head-grade and devaluation of the BRL currency;
• Consolidated All-in Sustaining Costs ("AISC") decreased 23% to $1,103 per ounce;
• Net Income of $12.3 million; cash generated from operating activities of $8.6 million;
• Sustaining capital expenditures of $6.6 million invested in development and mining equipment, with free cash
flow of $2.1 million;
• Free cash flow was $2.1 million for Q1 2020, compared to negative $4.6 million in Q1 2019. Free cash flow
was lower than expected due to approximately 2,000 ounces sold on March 31, 2020, for which the payment
was received in April due to COVID -19 related logistics issues. Had the payment been received in March, the
free cash flow would have been $5.3 million.
• Strong liquidity as at March 31, 2020, with a cash and sold bullion receivable of $15.6 million, as compared to
$11.7 million of cash and unsold bullion on December 31, 2019;
• Delivered into all gold option contracts and is completely unhedged at the end of Q1 2020.
Vern Baker, President and CEO of Jaguar Mining stated: “During Q1 2020, we continued improving production
numbers as we move toward our sustainable goal of 25,000 ounces per quarter. Q1 2020 is our second quarter in
a row with positive free cash flow , and the fourth quarter in a row with increasing ounce production. With the
fulfillment of the last option contracts Jaguar is unhedged. I would like to thank our team of miners in Brasil for their
efforts and commitment. This is especially evident as we deal with the COVID -19 crisis. The team has maintained
focus, operating safely and continuing to build the company´s capacity for sustainable production.
While the COVID -19 issue remains a critical theme in operations, the team is committed to continuing our path
toward 25,000 ounces per quarter. Coupled with the current gold price and favourable exchange rate the steady
expected improvement of production will show up in increasingly stronger financials each quarter this year.”
Vern added, “Pilar Gold Mine had its highest production quarter on record at 11,521 ounces. Turmalina Gold Mine
production was consistent with t he prior quarter at 9,487 ounces, and development rates are sufficient to see the
augmentation of production in the second half of the year.
In Q1 2020 we completed our option contracts (6,700 ounces at $1,363 per ounce) and completely unhedged. Bank
debt is $4.8 at March 31, 2020. All the bank debt is held by Brazilian banks and is unsecured.”
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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 2020 Financial Results
Cash Position and Use of Funds
• Strong treasury position as at March 31, 2020, with a cash and unsold bullion balance of $15.6 million as
compared to $11.7 million of cash and unsold bullion on December 31, 2019. As of the end of Q1 2020, the
Company is completely unhedged on gold price.
• As at March 31, 2020, working capital was $12.5 million, compared to $9.4 million as at December 31, 2019,
which includes $4.8 million in loans from Brazilian banks, which mature every six months and are expected to
be rolled forward.
($ thousands, except where indicated)
2020 2019
Financial Data
Revenue $ 30,801 $ 21,416
Operating costs 14,297 14,630
Depreciation 3,625 3,610
Gross profit 12,879 3,176
Net income (loss) 12,275 (1,839)
Per share ("EPS") 0.02 (0.01)
EBITDA1 18,401 2,653
Adjusted EBITDA1,2 14,043 3,577
Adjusted EBITDA per share1 0.02 0.01
Cash operating costs (per ounce sold)1 693 870
All-in sustaining costs (per ounce sold) 1 1,103 1,428
Average realized gold price (per ounce)¹ 1,492 1,273
Cash generated from operating activities 8,634 2,523
Free cash flow1 2,083 (4,563)
Free cash flow (per ounce sold)1 101 (271)
Sustaining capital expenditures1 6,551 7,086
Non-sustaining capital expenditures1 857 189
Total capital expenditures 7,408 7,275
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, and adjusted EBITDA per share are non-IFRS financial performance measures with no standard definition under IFRS.
Refer to the Non-IFRS Financial Performance Measures section of the MD&A.
2 Adjusted EBITDA excludes non-cash items such as impairment and write downs. For more details refer to the Non-IFRS Performance Measures section of the
MD&A.
2020 2019
Operating Data
Gold produced (ounces) 21,008 16,365
Gold sold (ounces) 20,640 16,821
Primary development (metres) 1,439 1,161
Secondary development (metres) 602 631
Definition, infill, and exploration drilling (metres) 14,545 6,632
Three months ended
March 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
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 ir on 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.
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 Mining Complex (Pilar and Roça Gr ande 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 "may," "could," "would," "might," or "will" be taken, occur or be achieved. All statements, other than
statements of historical fact, may be considered to be or include forward-looking information. This news release contains
forward-looking information regarding, among other things, expected sales, production statistics, ore grades, tonnes
milled, recovery rates, cash operating costs, definition/delineation drilling, 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 requi rements, 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
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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
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 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, 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 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 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 relea se, 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 expand s 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 t he 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, 2020, is set out in the Company's first quarter 2020 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 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 defin es all -in sustaining cost as the sum of
production costs, sustaining capital (capital required to maintain current operations at existing levels), corporate general
and administrative expenses, and in -mine exploration expenses. All -in sustaining cost exclu des 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, 2020, is
set out in the Company's first quarter 2020 MD&A filed on SEDAR at www.sedar.com.