Jaguar Mining Reports Third Quarter 2018 Financial Results and Announces Changes to Board of Directors __________________________________________________________________________________________
NEWS RELEASE
November 14, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Third Quarter 2018 Financial Results and Announces Changes to
Board of Directors
__________________________________________________________________________________________
Toronto, November 14, 2018 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial results for the third quarter (“Q3 2018”) and ni ne months (“9M 2018”) ended September 30, 2018. The
Company also announces Richard Falconer has stepped down as Chairman of the Board and Thomas Weng,
current Director, has been named Chairman. Mr. Falconer will continue to serve on the Board at least until the
Company’s Annual General Meeting in 2019.
Q3 2018 Financial Highlights (All figures are in US dollars, unless otherwise expressed)
Gold production of 20,320 ounces on record production at Pilar Gold Mine (“Pilar”) and higher feed grades;
Lower costs and increase in production quarter over quarte r drive 90% increase in gross profit to $7.7 million;
Consolidated cash operating costs ("COC") reduced by 22% to $627 per oun ce of gold sold. Pilar achieves
record low cash costs of $557 per ounce sold;
Consolidated all-in sustaining costs ("AISC") improved 2.2% to $1,142 per ounce of gold;
Net income of $2.2 million, or $0.01 ea rnings per share, from a Net loss of $7.7 million or net loss per share of
($0.02) year-over-year.
9M 2018 Financial Highlights
Gold production of 58,004 ounces, including reco rd year to date gold production at Pilar;
COC of $713 per ounce, in line with full-year 2018 guidance, and 18% lower than 9M 2017;
AISC of $1,233 per ounce, 1.3% improvement from 9M 2017;
Operating cash flow increases 67% to $16 milli on; adjusted EBITDA increased 41% to $19.8 million;
Net loss of $0.9 million reduced from a net loss of $18.9 million in 9M 2017;
Sustaining capital expenditures increased 41% to $21. 5 million investing in development and mining equipment.
Ben Guenther, Interim President and Chief Executive Officer commented, “Third quarter gold production of 20,320
ounces marked an 8% improvement relative to the first and second quarters in 2018. Pilar and Turmalina achieved
their best production quarter of t he year with Pilar producing a new qua rterly record11,068 ounces followed by
Turmalina producing more than 9,000 ounces. Pilar contin ues to advance on its exciting growth path, while
Turmalina has begun its turnaround. We remain pleased with the strong performance demonstrated at Pilar to date
in 2018 and we are encouraged to see its grade profile cont inue to increase while also contributing to the record
low costs. The Turmalina team is new and we expect it to take a few quarters of stabilization before we see
significant sustainable improvements. In addition to our new VP of Operations, Turmalina has further strengthened
its team with a new General Manager, new Managers of Mining, Technical Services, and Maintenance personnel
over the past few months. The progress we have made to reduce company-wide expenses has been key to
ensuring we continue to generate operating cash flow. Cost reduction remains a top priority within operations and
at the corporate and board level.”
Richard Falconer, Director, Jaguar Mining commented: “I have decided to retire as Chairman and continue to serve
on the board until the next AGM. I appreciate Thomas We ng stepping in as Jaguar’s new Chairman. With his
leadership and deep expertise in the Company that he has gained during his tenure as a Jaguar Board member, I
am confident in the outlook for the Company and look forward to its return to future growth and success.”
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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
Thomas Weng, Chairman of the Board of Directors commented: “On behalf of the Board, we thank Richard for his
service and many contributions to Jaguar’s Board of Directors over the past six years.”
Thomas continued, “Jaguar is positioning itself to return to a more sustainable and growing gold production profile
to create value for shareholders. Our operating and management teams have identified key issues and are
executing initiatives to improve production while also ta king steps to reduce overall expenses. The Board views
company-wide expense reduction as a key element to helping Jaguar build a strong foundation and more profitable
future."
Thomas Weng, Chairman of the Board, Bio
Mr. Weng was appointed as a director of the Corporati on on April 1, 2016. Mr. Weng has more than 25 years of
experience in the financial services sector with focus on mining, metals and industrials. Mr. Weng is Co-Founding
Partner with Alta Capital Partners, a financial advisory provider. Previous ly, Mr. Weng was Managing Director at
Deutsche Bank and Head of Equity Capital Markets fo r Metals and Mining throughout the Americas and Latin
America, across all industry segments. Prior to 2007, Mr. Weng held various senior positions at Pacific Partners,
an alternative investment firm, and Morgan Stanley and Bear Stearns. Mr. Weng graduated from Boston University
with a Bachelor of Arts in Economics.
Q3 2018 Financial Results
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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
Cash Position and Use of Funds
● Cash balance of approximately $6.7million as of September 30, 2018, compared to a cash balance of
$9.2million at June 30, 2018;
● Company generated approximately $6.6 million in operat ing cash flow with $7.9 million spent in investing
activities representing mainly development expendit ures. In addition, $1.3 million was paid in financing
activities.
Third Quarter 2018 Conference Call Details
The Company will also host an earnings conference call on Wednesday November 14, 2018 at 8:30 a.m. ET.
Participants in North America may listen to the call by dialing 1-800-319-4610 at approximately 8:20 a.m. (ET) and
ask to join the Jaguar Mining Third Quarter 2018 Results Conference Call. International callers should dial
1-604-638-5340. The call will also be webcast live at www.jaguarmining.com.
A replay of the conference call will be available afte r the call until December 14, 2018, at midnight, and can be
accessed by dialing 1-800-319-6413, conference ID 2708#. International ca llers can access the replay by dialing
1-604-638-9010. The audio webcast will also be archived at www.jaguarmining.com.
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”).
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.
2018 2017 2018 2017
Operating Data
Gold produced (ounces) 20,320 20,781 58,004 62,842
Gold sold (ounces) 20,441 20,422 56,908 62,909
Primary development (metres) 1,436 932 3,782 2,666
Secondary development (metres) 727 922 1,751 3,292
Definition, infill, and exploration drilling (metres) 11,716 11,592 29,917 34,525
For the three months ended
September 30,
For the nine months ended
September 30,
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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
For further information please contact:
Ben Guenther
President & 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 "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
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.
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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 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 operating 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 period, the quarter ended September 30, 2018, is set out in the Company's third
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 meas ure is intended to assist rea ders 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 September 30, 2018, is set out in the Company's third quarter 2018 MD&A filed
on SEDAR at www.sedar.com.