Jaguar Mining Reports Q1 2018 Financial Results; Increasing Cash Flow And On Track to Achieve Gold Production Guidance of 90,000–105,000 Ounces In 2018 __________________________________________________________________________________________
NEWS RELEASE
May 10, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Q1 2018 Financial Results; Increasing Cash Flow And On Track to
Achieve Gold Production Guidance of 90,000–105,000 Ounces In 2018
__________________________________________________________________________________________
Toronto, May 10, 2018 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial results for the three months ended March 31, 2018 (“Q1 2018”). All figures are in US dollars, unless
otherwise expressed. Detailed financial results for Q1 2018 are available on www.sedar.com.
Q1 2018 Financial Highlights
● Revenue of $25.2 million with signific antly lower cost of sales, increasing gross profit by over 300% to $ 4.9
million.
● Consolidated cash operating cost s (“COC”) improved 13% to $800 per oun ce of gold sold compared to
Q1 2017.
● Consolidated all in sustaining costs (“AISC”) improved 3% to $1,289 per ounce of gold sold.
● On track to achieve consolidated COC and AISC guidance in 2018.
● Increased operating cash flow over 2.5 times to $5.0 million, including increased sustaining capital expenditures
of $6.7 million, up 11% year-over-year, focused on primary development and drilling.
● Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) of $5.6 million compared to
$4.2 million for Q1 2017.
● Cash balance of $14.3 million as of March 31, 2018, including $3.0 million financing repayments, reducing total
bank debt to approximately $12.3 million at quarter end.
Rodney Lamond, President and Chief Executive Officer, Jaguar Mining commented, “Our continued focus on cost
control, productivity and company-wide operational exce llence programs has delivered strong operating cost
performance in the first quarter, where we saw a significant increase in our operating cash flow. Lower consolidated
cash operating costs improved 13% to $800 per ounce so ld, AISC improved 3% to $1,289 per ounce sold, which
puts us on track to achieve our 2018 cost guidance, especia lly when factoring significantly lower costs relative to
suspended operations at our higher cost Roça Grande Mine.
“Our strategy over the last 24 months has been to deploy capital only towards high priority exploration projects and
initiatives that will provide the best return and add to our large mineral resource base to grow our long-term
sustainable gold production. We have seen the benefits of these investments. Pilar Gold Mine is continuing to grow
its production base, and we expect to see increasing pr oduction at Turmalina Gold Mine by the second half of
2018.”
“Moving forward, we continue to focus on mining qua lity ounces and delivering on our 2018 gold production and
cost guidance, including higher production in the second half of this year. With lower unit costs and increasing
production, at current gold prices, we are well positioned to see strong cash flow generation, which we will continue
to prioritize towards investments in sustainable growth activities, development and reducing bank debt.”
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q1 2018 FINANCIAL & OPERATING SUMMARY
($ thousands, except where indicated)
For the three months ended
March 31,
2018 2017
Financial Data
Revenue $ 25,228 $ 29,192
Operating costs 15,399 21,508
Depreciation 4,885 6,576
Gross profit 4,944 1,108
Net loss (1,781) (7,877)
Per share ("EPS") (0.01) (0.03)
EBITDA1 4,154 743
Adjusted EBITDA1,2 5,573 4,211
Adjusted EBITDA per share1 0.02 0.01
Cash operating costs (per ounce sold)1 800 924
All-in sustaining costs (per ounce sold)1 1,289 1,323
Average realized gold price (per ounce)¹ 1,311 1,215
Cash generated from operating activities 4,979 1,855
Free cash flow1 (1,688) (4,177)
Free cash flow (per ounce sold)1 (88) (174)
Sustaining capital expenditures1 6,667 6,032
Non-sustaining capital expenditures1 493 873
Total capital expenditures 7,160 6,905
1 Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining co sts, adjusted
operating cash flow, free cash flow, EBITDA and adjusted EBITDA, and adjusted EBITDA per share are non-IFRS financial performan ce
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 wr ite downs. For more details, refer to the Non-IFRS Performanc e
Measures section of the MD&A.
For the three months ended
March 31,
2018 2017
Operating Data
Gold produced (ounces) 18,865 22,292
Gold sold (ounces) 19,237 24,034
Primary development (metres) 1,069 910
Secondary development (metres) 447 1,382
Definition, infill, and exploration drilling (metres) 9,439 11,864
Cash Position, Working Capital and Foreign Exchange
● As at March 31, 2018, the Company had a cash positi on of $14.3 million, compared to $18.6 million as at
December 31, 2017, primarily due to the decrease of 20%, or 4,797 ounces of gold sales.
● Cash outflow during the first quarter includes $3.0 m illion for financing repayments, reducing total bank debt to
approximately $12.3 million at the end of Q1 2018.
● Working capital was $11.0 million as at March 31, 2018, compared to $14.1 million as at December 31, 2017,
which includes short term receivable of $4.5 million from the Accelerat ed Earn-in Agreement signed for the
Gurupi Project on September 17, 2017. Working capital also includes $4.4 million in short term loans from
Brazilian banks, which are renewed every six months, and are expected to be rolled forward.
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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
First Quarter 2018 – Operating Results Summary
● Consolidated gold production of 18,865 ounces (174,000 tonnes milled at 3.76 g/t) reflecting the expected
slower start to the year; Q1 2018 production was lower than the 22,292 ounces (214,000 tonnes milled at 3.50
g/t) in Q1 2017.
● Pilar Gold Mine (“Pilar”) production increased 13% to 9,553 ounces compared to Q1 2017, and 17% compared
to Q4 2017 on average grade of 4.13 g/t, which increased 22% year-over- year. Pilar continues to deliver
improved grade and tonnes milled. P ilar’s lower cost per ounce production replaces the higher cost Roça
Grande Mine (“RG”) production, also improving operating cash flow.
● Turmalina Gold Mine (“Turmalina”) production of 8,442 ounces was 34% lower year-over-year due to a focus
on increasing primary waste development to facilitate in creased ore production for t he balance of 2018. This
resulted in lower secondary ore development and lo wer tonnes milled for the quarter that reduced ore
production, which was in line with the Company’s projected annual mine plan. Production levels are expected
to increase in Q2 2018 and significantly increase in the second half of 2018 as accelerated primary waste
development advances.
● Turmalina primary waste development increased 77% dur ing the quarter to 648 metres compared to 366 metres
in Q1 2017 and 363 metres in Q4 2017.The focus in Q1 2018 going forward is to advance accelerated
development at Turmalina. This will enable the team to access higher-grade minera lization in Level 11 at
Orebody A and Level 4 at Orebody C. A new total of f our production sublevels are expected to contribute to
production in Q2 2018.
● Strengthened operations and project management team s to drive increased productivity and overall
performance. Placed orders for new mining equipment to increase capacity and productivity at Turmalina and
Pilar.
First Quarter 2018 – Projects Update
● Operational excellence programs continue to be adopted Company wide. A key focus has been to improve data
collection processes to deliver real time data that facilitates timely analysis and decision making.
● Turmalina management changes have been completed and the focus is on operational efficiency, productivity
and cost reduction on projects, including improving preventative maintenance and equipment availability.
● At Pilar and Turmalina, operational excellence teams ar e focused on increasing haulage tonnes moved in the
mine and development metres utilizing equipment within the same shift to improve recovery and increase
productivity.
● Restructured projects group to str eamline the management of Growth and Capital Projects. Turmalina paste fill
plant completed final commissioning tests and is expected to be operational in Q2 2018.
First Quarter 2018 – Exploration Highlights
● Growth exploration at Turmalina has focused on dept h extension drilling of Orebody C below Level 4. Drilling
completed to date includes approximately 4,826 me tres (20 drill holes) representing approximately 53%
completion of the 9,050 metres planned growth program.
● Additional exploration activities are focused on adv ancing key near mine targets including the Zona Basal
Target at Turmalina, the Torre, Pacheca North and Pilarzinho Targets contiguous to the Pilar mining operation
and at Pedra Branca in Ceará State.
● Subsequent to the temporary halt of mining activities at the RG Mine, exploration potential is being reviewed,
aimed at prioritizing future activities targeting extensions to the known RG orebodies and the Company’s highly
prospective greater tenement package supported by the CCA Plant.
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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
Year-End 2017 Pilar Gold Mine Mineral Reserves and Mineral Resources Highlights
● Total Measured Resour ces increased 277% to 317,000 ounces of gold, net of depletion, grading 4.47 g/t. Total
Measured and Indicated ("M&I") Resources increased 10% to 532,000 ounces of gold, grading 4.37 g/t.
● Inferred Resources increased 104% to 433,000 ounces grading 5. 69 g/t, reflecting successful growth
exploration drilling campaign in 2017 targeting high-gr ade deeper extensions to the principle banded iron
formation Orebodies (BA, BF, and BFII) below current mine production levels.
● Total Proven and Probable ("2P") Mineral Reserves of 125,000 ounces of gold, grading 3.99 g/t reflecting two-
year replacement of mineral reserve depletion thr ough production and addition of new mineral reserves,
confirming over three years of future production at current production levels.
Interim Year-End 2017 Turmalina Gold Mine Mineral Resources Highlights
● M&I Resources of 420,000 ounces of gold reflect full replacement of 45,000 ounces of 2017 mining depletion
for Orebodies A, B, and C. Measured Resources increased 8% to 265,000 ounces with a 6% increase in grade
to 5.7 g/t.
● Inferred Resources increased 158% to 305,000 ounces of gold with a 14% increase in grade to 5.49 g/t,
reflecting successful growth exploration drilling camp aign in 2017 targeting high-grade deeper extensions to
the principle orebodies A and C below current mine production levels.
2018 Guidance
● Pilar production guidance of 39,200–47,000 ounces reflec ts the Company’s reforecast for increased mineral
resources reported in March 2018 (see press release dat ed March 2, 2018). The Pilar production is expected
to offset the temporary halted production ounces from Roça Grande.
● Roça Grande performance reflects production from January 1–March 21, 2018. Roça Grande temporarily on
care and maintenance.
● Turmalina positioned and expected to deliver sign ificantly higher production in second half of 2018.
2018 Production & Guidance cost Turmalina MSOL Consolidated Pilar Roça Grande
Low High Low High Low High Low High
Gold production (oz.) 50,000 57,000 39,200 47,000 800 1,000 90,000 105,000
Cash Operating Cost1 ($/oz. sold) 675 775 650 800 1,000 1,100 660 800
All-in sustaining Cost1 ($/oz. sold) 900 1,000 900 1,050 1,050 1,200 920 1,100
Sustaining Capex ($'000) 12,000 15,000 9,000 12,000 100 500 21,000 28,000
Development
Primary waste (metres) 2,200 2,800 2,000 2,600 N/A N/A 4,500 5,400
Secondary ore (metres) 1,800 2,100 1,000 1,150 N/A N/A 3,000 3,500
Definition, infill and exploration drilling
(metres) 18,000 25,000 14,000 20,000 200 300 32,000 45,000
1. Cash Operating Cost and All-in Sustaining Cost are non-IFRS reporting measures.
Qualified Persons
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan
Victor Hill, BSc (Hons) (Economic Ge ology - 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”).
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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
The Iron Quadrangle
The Iron Quadrangle has been an area of mineral explorat ion 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 2018. Additional information is available on
the Company's website at www.jaguarmining.com.
For further information please contact:
Rodney Lamond
President & 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 "for ward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking stat ements 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. Forw ard-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," "ant icipates," "continue," "estimate," "belie ve" or variations of such words and
phrases or statements that certain actions, events or resu lts "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, t onnes milled, recovery rates, cash operating costs,
definition/delineation drilling, the timing and amount of estimated future produc tion, 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, continuou s improvement initiatives, and resolution of pending
litigation. The Company has made numerous assumptions wi th 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 rese rve 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 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 uncertain ties, including among others: the risk of Jaguar not
meeting the forecast plans regarding it s operations and financial performance; uncertainties with respect to the
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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
price of gold, labour disruptions, mechanical failures, in crease in costs, environmental compliance and change in
environmental legislation and regulation, weather delays and increased costs or production delays due to natural
disasters, power disruptio ns, procurement and delivery of parts and supplies to the operations; uncertainties
inherent to capital markets in general (including the some times 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 ar e 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 g eological 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 Co mpany'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 release provides certain financial measur es 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 operat ing cost per ounce are non-IFRS measures. In the gold mining industry, cash
operating costs and cash operating co sts per ounce are common performance measures but do not have any
standardized meaning. Cash operating costs are derived from amounts includ ed 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 ounc e 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 operati ng 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 pe riod, the quarter ended March 31, 2018, is set out in the Company's first
quarter 2018 Management Discussion and Analysis (MD&A) filed on SEDAR at www.sedar.com.
2. All-in sustaining cost is a non-IFRS measure. This m easure is intended to assist re aders 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 item s 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 producti on costs, sustaining capital (capital r equired to maintain current operations
at existing levels), corporate general and administrativ e 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 sustai ning cost to total production costs for the most recent
reporting period, the quarter ended March 31, 2018, is se t out in the Company's first quarter 2018 MD&A filed on
SEDAR at www.sedar.com.