Jaguar Mining Reports Fourth Quarter and Full Year 2019 Financial Results Positioned for Free Cash Flow and Significantly Reduced Debt in 2020 __________________________________________________________________________________________
NEWS RELEASE
March 30, 2020 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Fourth Quarter and Full Year 2019 Financial Results
Positioned for Free Cash Flow and Significantly Reduced Debt in 2020
__________________________________________________________________________________________
Toronto, March 30, 2020 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial results for the fourth quarter (“Q4 2019”) and year (“FY 2019”) ended December 31, 2019. All figures are
in US Dollars, unless otherwise expressed.
Q4 2019 Financial Highlights
• Gold production increased 18% with 20,029 ounces compared to 17,622 ounces in Q4 2018;
• Consolidated Cash Operating Costs ("COC") decreased 2% to $780 per ounce;
• Consolidated All-in Sustaining Costs ("AISC") decreased 3% to $1,239 per ounce;
• Net Income of $2.7 million; cash generated from operating activities of $9.7 million;
• Sustaining capital expenditures of $8.5 million invested in development and mining equipment, with free cash
flow of $1.2 million;
• Strong liquidity as at December 31, 2019, with a cash and unsold bullion balance of $11.7 million, as compared
to $12.1 million of cash and unsold bullion on September 30, 2019;
• Paid down 100% of outstanding gold loan to Auramet providing more liquidity to the balance sheet and cash
flow for 2020; $1.1 million in finance payments were made in Q4 2019.
FY 2019 Financial Highlights
• Gold production remained steady at 74,084 ounces compared to 75,048 ounces in FY 2018;
• Gross profit increased 9.8% to $23.2 million, reflecting increased average realized gold price per ounce;
• Sustaining capital expenditures of $31.8 million invested in mining equipment and development ;
• AISC increased 8.4% to $1,349 per ounce, compared to $1,244 for FY2018 due to a 14% increase in sustaining
capital;
• Operating cash flow increased 15% to $24.4 million; adjusted EBITDA increased 17.5% to $24.3 million.
Vern Baker, President and CEO of Jaguar Mining stated: “During Q4 2019, we continued to improve our production
numbers and closed out the year with our best quarter. We are moving forward over time, building a sustainable
production platform of 25,000 ounces per quarter. The improvement is reflected in a positive free cash flow for the
first quarter since the end of 2017. With the completion of our financial hedges this year, the current trend of gold
price, our improving production, and our decreasing AISC, we expect to see consistently stronger financial s each
quarter this year. In Q4 2019, we were able to clear our debt with Auramet, removing the biggest limiting factor i.e.
hedges on our realized gold price. We also delivered on a large portion of our option contracts in 2019 and started
2020 with only 6,700 ounces at $1,363 per ounce in option instruments. Those options were cleared in February
2020, and the company is completely unhedged now.
“Turmalina Gold Mine continues advancing in produc tion and the development of a sustainable operation. While
Turmalina finished the full year with only 33,401 ounces, Q4 was the strongest quarter of the year for this mine with
9,773 ounces produced. The Pilar Gold Mine has shown consistent improvement over the past 3 years. In that time
frame, Pilar has increased its annual ounce production from 27,000 in 2016 to 41,000 in 2019 and is positioned to
produce up to 50,000 in the near future. Our mines continue to improve their production profile with new production
areas coming into the sequence, and we expect to see our production continue to improve on a quarterly basis. ”
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
FY 2019 and Q4 2019 Financial Results
($ thousands, except where indicated)
Three months ended
December 31,
Twelve months ended
December 31,
2019 2018 2019 2018
Financial Data
Revenue $ 28,895 $ 21,377 $ 97,234 $ 94,918
Operating costs 16,433 14,014 59,585 54,581
Depreciation 3,909 4,997 14,443 19,208
Gross profit 8,553 2,366 23,206 21,129
Net income (loss) 2,687 (15,065) (148) (15,968)
Per share ("EPS") 0.00 (0.05) (0.00) (0.05)
EBITDA1 8,001 (9,189) 18,763 7,122
Adjusted EBITDA1,2 8,781 2,833 24,333 20,716
Adjusted EBITDA per share1 0.01 0.01 0.03 0.06
Cash operating costs (per ounce sold)1 780 795 806 732
All-in sustaining costs (per ounce sold) 1 1,239 1,279 1,349 1,244
Average realized gold price (per ounce)¹ 1,372 1,213 1,316 1,274
Cash generated from operating activities 9,664 5,180 24,366 21,183
Free cash flow1 1,188 (1,347) (7,443) (6,836)
Free cash flow (per ounce sold)1 56 (76) (101) (92)
Sustaining capital expenditures1 8,476 6,527 31,809 28,019
Non-sustaining capital expenditures1 1,081 302 2,289 2,544
Total capital expenditures 9,557 6,829 34,098 30,563
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.
Three months ended
December 31,
Twelve months ended
December 31,
2019 2018 2019 2018
Operating Data
Gold produced (ounces) 20,029 17,044 74,084 75,048
Gold sold (ounces) 21,060 17,622 73,896 74,530
Primary development (metres) 1,453 777 5,440 4,455
Secondary development (metres) 825 719 3,166 2,471
Definition, infill, and exploration drilling (metres) 12,197 12,292 34,899 42,315
Cash Position and Use of Funds
• Cash and unsold bullion balance of $11 .7 million, as compared to $12.1 million of cash and unsold bullion on
September 30, 2019;
• The repayment of the Auramet loan provides more liquidity to the balance sheet and cash flow for 2020; the
Company’s remaining debt of $4 .5 million is now comprised of a number of short -term loans from Brazilian
banks
• As at December 31, 2019, working capital was $9.4 million, compared to a $2.4 million deficit as at December
31, 2018.
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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
Annual Information Form
In accordance with section 6.2 of NI 51 -102, the Company’s Annual Information Form (“AIF”) is due to be filed on
the 90th day after December 31, 2019, the end of the Company’s most recently completed financial year. Due to
the bu siness restrictions and operational challenges resulting from the outbreak of the COVID -19 pandemic
(including accommodating the work schedules of the Company’s external advisors and consultants), the Company
will file its 2019 AIF at its earliest opportun ity, which is expected to occur in late -April 2020. However, pursuant to
Ontario Instrument 51 -502 “Temporary Exemption from Certain Corporate Finance Requirements”, the OSC has
provided a conditional 45 -day extension for filing certain continuous disclos ure documents, including an AIF, by
reporting issuers in Ontario. Securities regulators in other Canadian provinces have issued corresponding
exemption orders.
Although the Company currently has no material business developments since the date of its l ast financial
statements, other than the business developments that have been disclosed above in this press release and those
already disclosed and filed by the Company on SEDAR, the management of the Company and its applicable
reporting insiders will be s ubject to a “blackout period” for any trading by such insiders until the Company files its
2019 AIF on SEDAR. The Company will also file an update news release about the expected filing of its 2019 AIF
on or before April 29, 2020. This update news releas e will include an update about the status of the filing of the
Company’s 2019 AIF and it will also include an update about of any material business developments since today’s
date, or confirmation that there have been no material business developments sinc e today’s date.
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 Jagu ar
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.
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 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
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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," "appro ximately," "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, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing of the development of projects and new depo sits,
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 deman d 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 wit h 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 fac ility 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 pric e 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, pro curement 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 informa tion 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 discl osure 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 subj ect 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 release provides certain financial measures that do not have a standardized meaning prescribed by IFRS.
Readers are cautioned to revi ew 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
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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
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 oun ce to total production costs for the most recent reporting period, the quarter ended
December 31, 2019, is set out in the Company's fourth 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 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 December 31, 2019,
is set out in the Company's fourth quarter 2019 MD&A filed on SEDAR at www.sedar.com.