Jaguar Mining Reports Second Quarter 2023 Results and Provides Corporate Update __________________________________________________________________________________________
1
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
JAGUAR MINING REPORTS SECOND QUARTER 2023 RESULTS AND PROVIDES
CORPORATE UPDATE
__________________________________________________________________________________________
Toronto, August 10, 2023 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG, OTCQX:JAGGF)
today announced financial and operating results for the second quarter ended June 30, 2023. All figures are in US
Dollars, unless otherwise expressed.
Second Quarter Highlights
• Operating cash flow was $10 million, compared to $9.4 million in the second quarter of 2022, mainly due to an
increase of 6% in the average realized gold price1, combined with an 8% decrease in operating costs, and lower
cash income taxes paid of $1.9 million, compared to $2.4 million in the second quarter of 2022. This was
partially offset by a 17% decrease in ounces of gold sold from 20,482 ounces the second quarter of 2022 to
16,917 ounces in the second quarter of 2023.
• Free cash flow¹ of $2.4 million and was based on operating cash flow plus asset retirement obligation
expenditures, less capital expenditures, compared to $5.5 million in Free Cash Flow in the second quarter of
2022. Free cash flow was $141 per ounce of gold sold compared to $270 per ounce of gold sold in the second
quarter of 2022.
• Total capital expenditures were 4% or $0.43 million higher in the second quarter compared to the same period
in 2022 with sustaining capital expenditures $3.7 million higher offset by non -sustaining capital expenditures
which were $3.3 million lower. Sustaining capital expenditures of $8.3 million in the quarter consisted of $5.5
million in primary development, $2.2 million in equipment, $0.5 million in brownfield exploration, and $0.1 million
of other sustaining capital.
• Revenue decreased 12% to $33.2 million compared with $37.9 million in the second quarter of 2022, mainly
due to a decrease in ounces produced, which resulted in lower ounces of gold sold of 16,917 ounces as
compared to 20,482 ounces in the second quarter of 2022, partially offset by an increase in the average realized
gold price of $1,962 per ounce compared to $1,852 per ounce in the second quarter of 2022.
• Gold production decreased 24% to 16,750 ounces compared to 22,028 ounces in the second quarter of 2022,
due to a 15% decrease in the average head grade, combined with an 11% decrease in tonnes of ore processed.
• Operating costs decreased 8% to $19.5 million compared to $21.1 million in the second quarter of 2022. The
decrease in operating costs was predominantly the result of decrease in tonnes mined compared to second
quarter of 2022.
• Cash operating costs¹ increased 12% to $1,150 compared to $1,029 per ounce of gold sold in the second
quarter of 2022 due to a 17% decrease in ounces of gold sold compared to the second quarter of 2022.
• All-in sustaining costs¹ increased to $1,781 compared to $1,366 per ounce of gold sold in the second quarter
of 2022 due to the cash cost increase as explained above, combined with higher sustaining capital expenditures
the result of a 20% increase in primary development plus exploration development in the quarter of 1,955
metres compared to 1,627 metres in the second quarter of 2022.
• Net loss of $1.1 million, compared to Net Income of $9.5 million in the second quarter of 2022. Major variances
included a $4.7 million decrease in revenue, a $5.6 million increase in foreign exchange expenses, an increase
of $1.3 million in income tax expense, offset by $1.6 million decrease in operating costs .
_________________________________
1 This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-
GAAP Performance Measures section of the MD&A.
2
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Cash Position and Working Capital1
• As of June 30, 2023, the Company had a cash and cash equivalents position of $2 3.9 million, compared to
$25.2 million on December 31, 2022.
• As of June 30, 2023, working capital was $17.5 million, compared to $19.5 million on December 31, 2022, which
includes $3 million in short term loans from Brazilian banks.
Vern Baker, President an d CEO of Jaguar Mining stated: “ The Company faced another difficult quarter as both
mines encountered issues with dynamic orebodies leading to lower grades and tonnes than was expected in the
areas we mined. At the Pilar mine, both tonnes and grade were im pacted by rapid geometry changes in the main
orebody. The Pilar mining team has adapted plans to flatter dips, narrower ore widths, and extended strike lengths.
At the Turmalina mine, the team has increased sampling and drilling to improve the grade mined. Development
rates continued to be strong at both mines during the quarter as we are working to position the mines with an
increasing number of headings to drive production up.
We have also implemented cost reduction measures which have begun to take effect reducing our operating costs.
These initiatives will continue in the second half of the year.
While the strengthening Brazilian Real impacted our costs and income during the quarter, we continue to have a
strong balance sheet and are well positioned to execute our improvement plans.
Finally, I am very excited to announce the appointment of Alfred Colas as Chief Financial Officer of Jaguar Mining.
His background and extensive experience in mining and project development makes him a good fit for our
Company. We know Alfred will be a great contributor to unlocking the value of our gold assets ".
Corporate Updates
• On August 1, 2023, the Company announced it had entered into a share purchase agreement to purchase and
assume from a subsidiar y of IAMGOLD Corporation, the Pitangui Project and the remaining interest in the
Acurui Project, two gold mineral exploration projects located in Brazil which are close in proximity to the
Company’s MTL Complex and Paciencia Complex. Following completion of the Transaction, the Company will
hold a 100% ownership in the Pitangui Project and the Acurui Project.
• The Company is also pleased to announce the appointment of Mr. Alfred Colas as Chief Financial Officer. Mr.
Colas is a seasoned finance executive with over 20 years of experience with publicly listed mining and forestry
companies and five years of experience in private -equity real estate. Mr. Colas spent over 13 years in
progressively senior finance roles with Barrick Gold Corp, culminating in his 2007 assignment as finance
manager at the Veladero Mine in Argentina, where he was a seminal part of the team that successfully turned
around the operation. From 2010 -2013, he was controller of Rainy River Resources, following which he was
VP and CFO of FNI Min ing. In 2015, Mr. Colas joined Potenia Solar as CFO and, after its sale, he continued
as CFO of a family office focusing on senior -care investments. Later, Mr. Colas served as CFO of dual-listed
silver producer, Excellon Resources, and most recently, he was CFO of GreenFirst Forest Products. Mr. Colas
holds a Bachelor of Commerce degree from the University of Toronto, and he obtained his CA/CPA designation
in 1995, having started his career in 1992 as an auditor with Price Waterhouse.
_________________________________
1 This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-
GAAP Performance Measures section of the MD&A.
3
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Second Quarter 2023 Results
Non-GAAP performance
The Company has included the following Non-GAAP performance measures in this document: cash operating costs
per ounce of gold sold, all-in sustaining costs per ounce of gold sold, average realized gold price (per ounce of gold
sold), sustaining capital expenditures, non-sustaining capital expenditures, adjusted operating cash flow, free cash
flow, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and working
capital. These Non-GAAP performance measures do not have any standardized meaning prescribed by IFRS and,
therefore, may not be comparable to similar measures presented by other companies.
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certai n
investors use this information to evaluate the Company ’s performance. Accordingly, they are intended to provide
additional information and should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. More specifically, Management believes that these figures are a useful indicator
to investors and management of a mine ’s performance as they provide: (i) a measure of the mine ’s cash margin
($ thousands, except where indicated)
2023 2022 2023 2022
Financial Data
Revenue $ 33,192 $ 37,927 $ 69,036 $ 68,546
Operating costs 19,462 21,075 40,074 40,692
Depreciation 6,220 4,866 11,986 9,561
Gross profit 7,510 11,986 16,976 18,293
Net (loss) income (1,101) 9,478 1,371 3,444
Per share ("EPS/LPS") (0.02) 0.13 0.02 0.05
EBITDA1 7,415 15,177 18,462 16,911
Adjusted EBITDA1,2 10,554 12,535 23,039 19,321
Adjusted EBITDA per share1,2 0.15 0.17 0.32 0.27
Cash operating costs (per ounce sold)1 1,150 1,029 1,115 1,100
All-in sustaining costs (per ounce sold)1 1,781 1,366 1,672 1,506
Average realized gold price (per ounce)1 1,962 1,852 1,922 1,853
Cash generated from operating activities 9,973 9,440 20,339 17,147
Free cash flow1 2,378 5,535 5,724 8,133
Free cash flow (per ounce sold)1 141 270 159 220
Sustaining capital expenditures1 8,306 4,612 15,519 10,425
Non-sustaining capital expenditures1 3,539 6,805 5,750 11,284
Total capital expenditures 11,845 11,417 21,269 21,709
Six months ended
June 30,
Three months ended
June 30,
1 Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, free cash flow, EBITDA and adjusted EBITDA, and
adjusted EBITDA per share 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, foreign exchange, stock-based compensation and write downs. For more details refer to the Non-GAAP
Performance Measures section of the MD&A.
2023 2022 2023 2022
Operating Data
Gold produced (ounces) 16,750 22,028 34,906 38,691
Gold sold (ounces) 16,917 20,482 35,925 36,989
Primary development (metres) 1,552 731 2,810 1,626
Exploration development (metres) 403 896 619 1,375
Secondary development (metres) 1,238 1,221 2,644 2,467
Definition, infill, and exploration drilling (metres) 10,420 30,631 22,325 56,936
Three months ended
June 30,
Six months ended
June 30,
4
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the
mine matures; and (iii) an internal benchmark of performance to allow for comparison against other mines. The
definitions of these performance measures and reconciliation of the Non -GAAP measures to rep orted IFRS
measures are outlined below.
Reconciliation of sustaining capital and non-sustaining capital expenditures1
Reconciliation of Free Cash Flow1
($ thousands)
2023 2022 2023 2022
Sustaining capital1
Primary development 5,543$ 3,221$ 10,704$ 7,048$
Brownfield exploration 488 239 787 636
Mine-site sustaining 2,152 1,061 3,791 2,545
Engineering - - - -
Equipment 2,152 1,061 3,791 2,545
Other sustaining capital2 123 91 237 196
Total sustaining capital1 8,306 4,612 15,519 10,425
Non-sustaining capital (including capital projects)1
Mine-site non-sustaining 2,828 6,098 4,846 9,873
Asset retirement obligation - non-sustaining2 711 707 904 1,411
Total non-sustaining capital1 3,539 6,805 5,750 11,284
Total capital expenditures 11,845$ 11,417$ 21,269$ 21,709$
Three months ended
June 30,
Six months ended
June 30,
1 Sustaining and non-sustaining capital are non-GAAP financial measures with no standard definition under IFRS. Refer to the non-GAAP Financial Performance Measures
section of the MD&A. Capital expenditures are included in the calculation of all-in sustaining costs and all-in costs.
2 Asset retirement obligation - non-sustaining is related to expenditures with dam closing projects. Payments related to the Company asset retirement obligation are
classified as operating activities in accordance with IFRS financial measures.
($ thousands, except where indicated)
2023 2022 2023 2022
Cash generated from operating activities $ 9,973 $ 9,440 $ 20,339 $ 17,147
Adjustments
Asset Retirement Obligation 711 707 904 1,411
Sustaining capital expenditures2 (8,306) (4,612) (15,519) (10,425)
Free cash flow $ 2,378 $ 5,535 $ 5,724 $ 8,133
Ounces of gold sold 16,917 20,482 35,925 36,989
Free cash flow per ounce sold $ 141 $ 270 $ 159 $ 220
Three months ended
June 30,
Six months ended
June 30,
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
2 Further detail on the sustaining capital expenditures composition can be found on the reconciliation of sustaining capital and non-sustaining capital expenditures in the non-
GAAP reconciliation.
5
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold1
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA 1
($ thousands, except where indicated)
2023 2022 2023 2022
Operating costs 19,462$ 21,075$ 40,074$ 40,692$
General & administration expenses 1,988 1,850 3,689 3,627
Corporate stock-based compensation 377 447 795 970
Sustaining capital expenditures¹ 8,306 4,612 15,519 10,425
All-in sustaining cash costs 30,133 27,984 60,077 55,714
Reclamation (operating sites) - - 1 8
All-in sustaining costs 30,133$ 27,984$ 60,078$ 55,722$
Non-sustaining capital expenditures 3,539 6,805 5,750 11,284
Exploration and evaluation costs (greenfield) 944 1,599 1,931 3,120
Reclamation (non-operating sites) - 1 1 57
Care and maintenance (non-operating sites) 174 132 343 311
All-in costs 34,790$ 36,521$ 68,103$ 70,494$
Ounces of gold sold 16,917 20,482 35,925 36,989
Cash operating costs per ounce sold² 1,150$ 1,029$ 1,115$ 1,100$
All-in sustaining costs per ounce sold² 1,781$ 1,366$ 1,672$ 1,506$
All-in costs per ounce sold² 2,057$ 1,783$ 1,896$ 1,906$
Average realized gold price 1,962$ 1,852$ 1,922$ 1,853$
Cash operating margin per ounce sold 812$ 823$ 807$ 753$
All-in sustaining margin per ounce sold 181$ 486$ 250$ 347$
Three months ended
June 30,
Six months ended
June 30,
2 Cash operating costs, all-in sustaining costs and all-in costs are all non-GAAP financial performance measures with no standard definition under IFRS. Result may not calculate
due to rounding.
1 Capital expenditures are included in the Company calculation of all-in sustaining costs and all-in costs.
($ thousands, except where indicated)
2023 2022 2023 2022
Net Income (Loss) $ (1,101) $ 9,478 $ 1,371 $ 3,444
Income tax expense 1,521 146 3,417 2,542
Finance costs 757 668 1,651 1,326
Depreciation and amortization 6,238 4,885 12,023 9,599
EBITDA1 $ 7,415 $ 15,177 $ 18,462 $ 16,911
Changes in other provisions and VAT taxes 359 90 428 23
Foreign exchange loss (gain) 2,403 (3,179) 3,354 1,417
Stock-based compensation 377 447 795 970
Adjusted EBITDA1 $ 10,554 $ 12,535 $ 23,039 $ 19,321
Weighted average outstanding shares 72,715,206 72,465,756 72,640,143 72,463,674
Adjusted EBITDA per share1 $ 0.15 $ 0.17 $ 0.32 $ 0.27
Three months ended
June 30,
Six months ended
June 30,
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
6
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Working Capital1
Qualified Person
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan
Victor Hill, BSc (Hons) (Economic Geology - UCT), FAUSIMM, Vice President Geology and Exploration, 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 third 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. 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.
Cash and cash equivalents $ 23,865 $ 25,208
Non-cash working capital
Other current assets:
Restricted cash 917 618
Inventory 14,717 16,239
Recoverable taxes 7,645 8,545
Other accounts receivable 430 343
Prepaid expenses and advances 3,312 3,615
Current liabilities:
Accounts payable and accrued liabilities (17,937) (19,782)
Notes payable (3,067) (3,040)
Lease liabilities (2,506) (2,414)
Current tax liability (1,521) (1,881)
Other taxes payable (975) (1,056)
Reclamation provisions (2,949) (3,156)
Legal and other provisions (4,385) (3,751)
Working capital¹ $ 17,546 $ 19,488
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
June 30,
2023
December 31,
2022
7
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
For further information please contact:
Vernon Baker
Chief Executive 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 pla ns 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 achie ved. 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 esti mated 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 assumptio ns
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 obt ained 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 leg islation
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 sometim es volatile
valuation of securities and an uncertain ability to raise new capital) and other risks inherent to the gold exploration, developm ent and
production industry, which, if incorrect, may cause actual results to differ materially from those anticipated by the Compa ny and
described herein. In addition, there are risks and hazards associated with the business of gold exploration, development, min ing and
production, including environmental hazards, tailings dam failures, industrial accidents and workplace safety proble ms, 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). Accord ingly, 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.
8
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 expands 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 Consoli dated 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 fro m
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. 2023, is set out in the Company's second quarter
2023 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 re quired 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 a nd 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. 2023, is set out in the Company's second quarter 2023 MD&A filed on SEDAR at www.sedar.com.