Jaguar Mining Reports Second Quarter 2019 Financial and Operating Results __________________________________________________________________________________________
NEWS RELEASE
August 15, 2019 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Second Quarter 2019 Financial and Operating Results
__________________________________________________________________________________________
Toronto, August 15, 2019 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial and operating results for the three months (“Q2 2019”) and six months ended June 30, 2019. Detailed
financial results for Q2 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.
Q2 2019 Operating Summary
Consolidated gold production of 18,366 ounces (184,000 tonnes milled, average grade of 3.48 g/t) increased
12% compared to 16,365 in Q1 2019, however decreased 2% compared to 18,819 in Q2 2018.
Pilar mine gold production of 10,543 ounces up 19% over 8,840 ounces in Q1 2019, however a 4% decrease
compared to 10,995 ounces in Q2 2018.
Turmalina mine gold production up 4% to 7,823 over 7,525 ounces in Q1 2019 and flat compared to 7,824
ounces in Q2 2018.
Primary development increased 3% to 1,310 m compared to 1,277 completed in Q2 2018.
Sustaining capital expenditures of $8.4 million invested in mining equipment and development.
Q2 2019 Financial Results Summary
Gross profit of $5.8 million decreased 5% compared to $6.1 million in Q2 2018 due to higher operating cash
costs year-over-year and increased compared to $3.2 million in Q1 2019.
Consolidated Cash operating costs ("COC") increased 9.6% to $786 per ounce compared to $717 in Q2 2018,
however improved compared to $870 COC in Q1 2019 due to the increase in ounces produced.
Consolidated all-in sustaining costs ("AISC") increased 7% to $$1,366 compared to $1,277 in Q2 2018 due to
increased sustaining capital expenditures.
Operating cash flow of $7.5 million; adjusted EBITDA of $6.0 million.
Net loss of $2.2 million, or net loss per share of $0.01.
The Company completed a $25 million non-brokered private placement (“the Offering”) on July 18, 2019 which
included two of the Company’s major shareholders, Mr. Eric Sprott and Tocqueville Gold Fund.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q2 2019 Financial Results
Q2 2019 Operating Results
($ thousands, except where indicated)
2019 2018 2019 2018
Financial Data
Revenue $ 23,923 $ 22,888 $ 45,339 $ 48,116
Operating costs 14,627 12,356 29,246 27,755
Depreciation 3,499 4,407 7,109 9,293
Gross profit 5,797 6,125 8,984 11,068
Net loss (2,137) (1,334) (3,976) (3,115)
Per share ("EPS") (0.01) (0.00) (0.01) (0.01)
EBITDA1 2,581 4,262 5,234 8,417
Adjusted EBITDA1,2 6,003 5,303 9,906 10,876
Adjusted EBITDA per share1 0.02 0.02 0.03 0.03
Cash operating costs (per ounce sold)1 786 717 826 761
All-in sustaining costs (per ounce sold) 1 1,366 1,277 1,395 1,283
Average realized gold price (per ounce)¹ 1,286 1,328 1,280 1,319
Cash generated from operating activities 7,505 4,460 10,028 9,438
Free cash flow1 (877) (2,501) (5,441) (4,191)
Free cash flow (per ounce sold)1 (47) (145) (154) (115)
Sustaining capital expenditures1 8,382 6,961 15,469 13,629
Non-sustaining capital expenditures1 245 592 433 1,600
Total capital expenditures 8,627 7,553 15,902 15,229
For the six months ended
June 30,
For the three months ended
June 30,
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-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.
Turmalina Pilar Total Turmalina Pilar Total
Tonnes milled (t) 75,000 109,000 184,000 77,000 94,000 171,000
Average head grade (g/t) 3.55 3.44 3.48 3.46 4.03 3.77
Recovery % 90.6% 87.3% 88.6% 91.1% 89.8% 90.4%
Gold ounces
Produced (oz) 7,823 10,543 18,366 7,824 10,995 18,819
Sold (oz) 7,999 10,599 18,598 7,610 9,620 17,230
Cash Operating Costs ("COC") 766 802 786 761 683 717
Development
Primary (m) 783 527 1,310 740 537 1,277
Secondary (m) 330 369 699 302 275 577
Definition, infill, and exploration
drilling (m) 4,963 3,226 8,189 5,623 3,141 8,764
Quarterly Summary
Q2 2019 Q2 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
Financing and Repayment of Bridge Loan Facility
Subsequent to the second quarter ended June 30, 2019, the Company completed a $25 million non-brokered
private placement (“the Offering”) on July 18, 2019 which included an investment from two of the Company’s
major shareholders, Mr. Eric Sprott and Tocqueville Gold Fund. In addition, the Company fully repaid its senior
secured bridge facility (the "Facility") with Auramet International LLC for USD$7.85 million from the proceeds
of the private placement and $1.6 million of a local Brazilian loan.
Mr. Sprott invested USD$15 million in the private placement representing 60% of the entire Offering, resulting
in 42.6% post transaction ownership of the Company’s outstanding Common Shares on a non-diluted basis.
Tocqueville Gold Fund, a long-term Jaguar Mining investor, represents 19.6% of the Company’s outstanding
Common Shares on a non-diluted basis.
Cash Position, Working Capital & Corporate
As at June 30, 2019, the Company had a cash position of $5.2 million, compared to $6.3 million as at December
31, 2018. The June 30, 2019, cash balance excludes a $2 million restricted cash deposit held with Auramet.
As at June 30, 2019, prior to the equity financing, working capital was negative $13.1 million, compared to
negative $2.4 million as at December 31, 2018, which includes $5.1 million (December 31, 2018 - $7.3 million)
in loans from Brazilian banks, which mature every six months and are expected to be rolled forward.
As at June 30, 2019, the Company’s outstanding gold forward contracts covered 17,404 ounces hedged at a
weighted average price of US$1,328/oz.
Corporate Update
Mr. Vernon Baker appointed new Chief Executive Officer effective August 6, 2019. Mr. Baker brings over 35
years of experience with mining companies with deep management and operations expertise at globally
focused mid-tier and senior mining companies. Most recently he was General Manager at Goldcorp’s Cerro
Negro Mine in Argentina from December 2015, overseeing 3,000 tonne per day of high-grade production and
successfully implemented several high value programs to reduce costs, grow production and development, and
strong safety improvement to lead the corporation with an AIFR of 0.28 in 2017. Previously, Mr. Baker held
management and senior leadership roles with various mining companies including President at Duluth Metals
Limited, Vice President of Operations at FNX Mining, General Manager at Barrick Goldstrike Mines Inc., and
General Manager of Hemlo Operations, a Joint Venture of Teck Cominco and Barrick Gold.
Rodney Lamond was appointed to the Board of Directors, August 6, 2019. Mr. Lamond was previously on the
Board and Chief Executive Officer of Jaguar Mining from December 2015 to August 2018. The Company also
announced the acceptance of Mr. Richard Falconer’s resignation as an independent director.
Mr. Weng, Chairman of Jaguar, stated, “On behalf of the Board of Directors I am pleased to welcome Mr. Baker as
our new CEO and to thank Ben Guenther for his interim leadership. I would also like to welcome back Mr. Lamond
to the Board and look forward to working with Vern and the Board on advancing Jaguar’s turnaround. I also thank
Mr. Falconer for his many contributions to Jaguar during his tenure and wish him success on his future endeavors.”
Mr. Baker stated: "I am excited to now be in my new role at Jaguar and by the opportunity to lead our team in
unlocking the value of our great gold assets in the Iron Quadrangle area of Brazil. I am looking forward to driving
the operating improvements that will bring the company to a strong financial position over the next several quarters."
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
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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
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.
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 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:
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," "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, 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 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 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 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 costs 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 June 30, 2019, is set out in the Company's second
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 defines 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 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 June 30, 2019, is set out in the Company's second quarter 2019 MD&A filed on
SEDAR at www.sedar.com.