Jaguar Mining Reports Second Quarter Financial Results; Revises 2018 Production Guidance __________________________________________________________________________________________
NEWS RELEASE
August 15, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Second Quarter Financial Results;
Revises 2018 Production Guidance
__________________________________________________________________________________________
Toronto, August 15, 2018 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial results for the three and six months ended June 30, 2018 (“Q2 2018”). All figures are in US dollars, unless
otherwise expressed. Detailed financial results for Q2 2018 are available on www.sedar.com and on the Company’s
website www.jaguarmining.com.
Q2 2018 vs. Q2 2017 Financial Highlights
● Strong operating cost performance dr ives 139% increase in gross profit to $6.1 million on lower revenue of
$22.9 million.
● Consolidated cash operating costs (“COC”) improved 16% to $717 per ounce of gold sold.
● Consolidated all-in sustaining costs (“AISC”) increas ed 1% to $1,277 per ounce of gold sold reflecting strong
investment in Turmalina Gold Mine (“Turmalina”).
● Consolidated gold production of 18,819 ounces, compar ed to 19,769 ounces in Q2 2017. Q2 2018 average
feed grade was 3.77 g/t compared to 3.18 g/t for the comparative period.
● Strong operating cash flow of $4.5 million, significant ly higher compared to $0.2 million for the comparative
period.
● Sustaining capital expenditures of $7 million in Q2 2018, up 52% from $4.6 million in Q2 2017, investing in key
primary development and new mining equipment.
● Adjusted EBITDA of $5.3 million, up 43% fr om $3.7 million from comparative period.
● Cash balance of $9.2 million as of June 30, 2018, including $1 million financing repayments, reducing total
bank debt to approximately $12.3 million at quarter end.
● Company revises 2018 production guidance to 80,000 – 85,000 ounces. Pilar continues to perform well and is
on track to meet its production guidance. Turmali na production is expected to be below guidance, as
management continues to address the operational issues through the remainder of 2018.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q2 2018 FINANCIAL & OPERATING SUMMARY
Financial and Operational Highlights
($ thousands, except where indicated)
For the three months ended
June 30,
For the six months ended
June 30,
2018 2017 2018 2017
Financial Data
Revenue $ 22,888 $ 23,352 $ 48,116 $ 52,544
Operating costs 12,356 15,990 27,755 37,498
Depreciation 4,407 4,796 9,293 11,372
Gross profit 6,125 2,566 11,068 3,674
Net (loss) (1,334) (3,323) (3,115) (11,200)
Per share ("EPS") (0.00) (0.01) (0.01) (0.04)
EBITDA1 4,262 3,709 8,417 4,452
Adjusted EBITDA1,2 5,303 3,712 10,876 7,923
Adjusted EBITDA per share1 0.02 0.01 0.03 0.03
Cash operating costs (per ounce sold)1 717 857 761 895
All‐in sustaining costs (per ounce sold)1 1,277 1,262 1,283 1,296
Average realized gold price (per ounce)¹ 1,328 1,266 1,319 1,237
Cash generated from operating activities 4,460 216 9,438 2,071
Adjusted operating cash flow1 6,910 4,391 12,223 8,553
Free cash flow1 (2,501) (4,361) (4,191) (8,538)
Free cash flow (per ounce sold)1 (145) (236) (115) (201)
Sustaining capital expenditures1 6,961 4,577 13,629 10,609
Non‐sustaining capital expenditures1 592 1,390 1,600 2,263
Total capital expenditures 7,553 5,967 15,229 12,872
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.
For the three months ended
June 30,
For the six months ended
June 30,
2018 2017 2018 2017
Operating Data
Gold produced (ounces) 18,819 19,769 37,684 42,061
Gold sold (ounces) 17,230 18,453 36,467 42,487
Primary development (metres) 1,277 824 2,347 1,734
Secondary development (metres) 578 989 1,025 2,370
Definition, infill, and exploration drilling (metres) 8,763 11,069 18,204 22,933
Cash Position, Working Capital and Foreign Exchange
As at June 30, 2018, the Company had a cash positi on of $9.2 million, compared to $18.6 million as at
December 31, 2017. The June 30, cash balance excludes the $2 million of cash deposit with Auramet. The
lower cash balance compared to the end of 2017 reflects $15.22 million in total Capital Expenditures and lower
gold sales that declined 14% in the first six months ended June 30, 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
Working capital was $4 million as at June 30, 2018, compared to $14.1 million as at December 31, 2017.
Working capital reduction is mainly due to the replacement of the Sprott Resource Lending facility with Auramet
Facility, as the latter is classified as short term.
Financial Summary Highlights
Revenue for Q2 2018 decreased 2% to $22.9 million (17,230 ounces), compared with $23.4 million (18,453
ounces) in Q2 2017, due to a 7% decrease in ounces sold, offset by 5% higher average gold realized price of
$1,328 in Q2 2018 compared with $1,266 in Q2 2017.
Gross profit for the three and six months ended June 30, 2018, was $6.1 million and $11.1 million, respectively,
compared to $2.6 million and $3.7 million for Q2 2017 and YT D 2017, mainly attributed to reduction in cash
operating costs.
Adjusted EBITDA for Q2 2018 was $5.3 million compared to $3.7 million for Q2 2017, while adjusted EBITDA
for the first half of 2018 was $10.9 million compared to $7.9 million in the first half of 2017.
Cash Operating Costs, Capital Expenditures and All-In-Sustaining Costs (“AISC”)
Cash operating costs decreased 16% to $717 per ounce of gold sold for Q2 2018, compared to $857 per ounce
sold during Q2 2017, primarily due to operational excellence measures and the 12% weakening of the Brazilian
Real. AISC increased 1% to $1,277 per ounce of gold so ld in Q2 2018, compared to $1,262 per ounce sold
during Q2 2017.
In Q2 2018, sustaining capital increased 52% to $7 million focused on primary development and exploration
drilling, compared to $4.6 million in Q2 2017. Operating ca sh flow was $4.5 million for Q2 2018, compared to
$0.2 million in Q2 2017, mainly due to the decrease in cash costs of 16%, or $140 dollars per ounce.
2018 Revised Guidance
● Company revises 2018 production guidance to 80,000 – 85,000 ounces. Pilar continues to perform well and is
on track to meet its production guidance.
● Turmalina production is expected to be below guidance , as management continues to address the operational
issues through the remainder of 2018.
Management Change
The Company also announces that Rodney Lamond is leaving his position as CEO and director of
Jaguar. Benjamin Guenther has been appointed as Interi m Chief Executive Officer effective immediately. Mr.
Guenther was appointed to the Board of Jaguar Mining in November 2017 and is the Chairman of the Technical
Committee of the Board. He is a mining engineer with a wide range of management and executive experience and
over 40 years in the mining industry. Mr. Guenther held Senior Management Positions with AngloGold Ashanti in
his past career including a long association with mining in Brazil. Mr. Guenther graduated from the Colorado School
of Mines. The Company plans to start a search for the permanent position of the CEO.
“On behalf of the entire team, we would like to extend our thanks to Rodney for his commitment to Jaguar Mining
over the past few years. We wish Rodney great success in his future endeavours” said Jaguar Mining Chairman
Dick Falconer.
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
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.
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.
For further information please contact:
Benjamin Guenther
Interim 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
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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
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 and renewed and/or there being adverse amendments to
mining or other laws in Brazil and any changes to g eneral business and economic conditions. Forward-looking
information involves a number of known and unknown ris ks 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 failu res, 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 disr uptions, 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 ha zards 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 June 30, 2018, is set out in the Company's second
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
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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
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 June 30, 2018, is set out in the Company's second quarter 2018 MD&A filed on
SEDAR at www.sedar.com.