Jaguar Mining Reports Third Quarter 2019 Financial and Operating Results __________________________________________________________________________________________
NEWS RELEASE
November 13, 2019 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Third Quarter 2019 Financial and Operating Results
__________________________________________________________________________________________
Toronto, November 13, 2019 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
financial and operating r esults for the three months (“Q3 2019”) and nine months ended September 30, 2019.
Detailed financial results for Q 3 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.
Q3 2019 Operating Summary
• Consolidated gold production of 19,324 ounces (208,000 tonnes milled, average grade of 3.30 g/t) increased 5%
compared to 18,366 ounces in Q2 2019, decreased 5% compared to 20,320 ounces in Q3 2018.
• Pilar mine gold production of 11 ,044 ounces up 5 % compared to 10,543 ounces in Q2 2019, no change
compared with the same period of 2018.
• Turmalina mine gold production up 6% to 8,280 ounces compared to 7,823 ounces in Q2 2019, decreased 11%
compared to 9,252 ounces in Q3 2018.
• Primary development increased 6% to 1,516 meters compared to 1,436 meters completed in Q3 2018.
• Sustaining capital expenditures of $7.9 million invested in mining equipment and development.
Q3 2019 Financial Results Summary
• Operating cash flow of $4.7 million; adjusted EBITDA of $5.7 million; net Income of $1.1 million.
• Consolidated Cash operating costs ("COC") increased 27% to $798 per ounce compared to $ 627 in Q3 2018
mainly due to lower grade and higher tonnage. Consolidated all-in sustaining costs ("AISC") increased 22% to
$1,389 compared to $1,142 in Q3 2018 due to increased operating cash cost and fewer ounces sold.
• Average realized gold price during the quarter was $1,320 per ounce mainly due to the hedge prog ram linked
with the bridge and gold loans that were entered in 2018 and early part of 2019.
• 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.
Vern Baker, CEO of Jaguar commented, “ Thanks to support from shareholders , Jaguar completed a $25 million
private placement. That support has allowed us to: 1) retire significant debt of $13.8 million in Q3 2019, 2) to invest
in bringing the mines to a profitable position, and 3) to operate with a consistent and sustainable approach to our
orebodies. We are now well positioned financially, with a positive cash balance, as we continue driving performance
in the next quarter, to set up a sustainable performance in 2020. Our plans will allow us to improve over the next
quarters to reach a sustainable production rate of 100,000 ounces per year in the second half of 2020.”
“In Q3 2019 Jaguar recognized a profit of $1.1 million as production increased to over 19,000 ounces. I am delighted
to see our Company begin to reflect the improvements implemented recently. I nvestment in sustaining capital
remains high as Pilar works to stabilize productive capacity at 4,000 ounces per month, and Turmalina is driving
development to return to a consistent production of 4,000 ounces per month. Sustaining capital investment will
remain high for the next year as development, equipment replacement, and infrastructure maintenance are brought
up to the levels that will allow a long -term consistent performance with normal levels of capital. I expect to see
improvement in profit, cash f low and ounces produced each quarter until we hit the s ustainable rates planned for
our mines.”
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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
Financial performance upside in Q3 2019 was limited by the gold loan repayments and settling of forwards/options
that held the Company´s realized price of gold to $1,320 per ounce. These forward/option contracts were entered
into during a period of constrained operations in 2018 and 2019, primarily due to the bridge loan covenant
requirements. Jaguar has an obligation to deliver into the committed forward/option contracts and repayments of
the gold loan that will impact the company in Q4 2019 and Q1 2020. Using the mix of spot prices, forwards/options
and the residual gold loan repayments; the realized gold price will be more aligned to the spot gold price during the
quarter. Jaguar will be unhedged by end of Q1 2020.
The most encouraging part of Q3 2019 performance was the improvement seen at the end of the quarter as changes
made earlier in the year began to have a positive impact. Both mines showed the capacity to handle increased
tonnages and development. Pilar reached 4,000 ounces per month in September , and is positioned to stabilize
performance over the next quarter . Turmalina demonstrat ed the needed capacity to move tonnes and complete
development at levels that will allow the mine to bring on the sustainable mi ning panels that will provide adequate
stoping options. The new panels will allow the mine to bring the grade back toward the global reserve grade.
Improved production along with the support of shareholders has allowed the company to augment exploration by
adding a longer range drill in October, with a second drill to start in November. Over the past year the exploration
team has had a limited budget, but has been able to generate a significant queue of drilling options within each
mine, as well as on our active mine properties, and also on our properties that are positioned to take advantage of
our under-utilized milling infrastructure. The first drill targets being focused on are in -mine opportunities that can
strengthen flexibility in the mines and provide the basis for future production growth.
Q3 2019 Financial Results
($ thousands, except where indicated)
2019 2018 2019 2018
Financial Data
Revenue $ 22,999 $ 25,426 $ 68,338 $ 73,541
Operating costs 13,906 12,809 43,152 40,564
Depreciation 3,425 4,919 10,533 14,211
Gross profit 5,668 7,698 14,653 18,766
Net income (loss) 1,141 2,208 (2,835) (904)
Per share ("EPS") 0.00 0.01 (0.01) 0.00
EBITDA1 5,528 7,889 10,761 16,309
Adjusted EBITDA1,2 5,646 8,909 15,551 19,805
Adjusted EBITDA per share1 0.01 0.03 0.02 0.06
Cash operating costs (per ounce sold)1 798 627 817 713
All-in sustaining costs (per ounce sold) 1 1,389 1,142 1,393 1,233
Average realized gold price (per ounce)¹ 1,320 1,244 1,293 1,292
Cash generated from operating activities 4,676 6,566 14,704 16,004
Sustaining capital expenditures1 7,865 7,864 23,334 21,493
Non-sustaining capital expenditures1 772 641 1,205 2,241
Total capital expenditures 8,637 8,505 24,539 23,734
Free cash flow1 - Operational Cash Flow less Sustaining Capital (3,189) (1,298) (8,630) (5,489)
Free cash flow (per ounce sold)1 (183) (63) (163) (96)
For the nine months ended
September 30,
For the three months ended
September 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.
3
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Q3 2019 Operating Results
Financing, Repayment of Bridge Loan Facility, Cash Position and Working Capital
• On July 8, 2019, the Company completed a $25 million non -brokered private placement (“the Offering”) 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 seni or secured bridge facility (the "Facility") with Auramet
International LLC and part of the Auramet gold loan.
• Mr. Sprott invested $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, invested $5 million in the private placement
maintaining ownership of 19.6% of the Company’s outstanding Common Shares on a non-diluted basis.
• As at September 30, 2019, the C ompany had a cash position of $12 .2 million, compared to $6.3 million at
December 31, 2018. Working capital was $5.5 million at the end of Q3 2019, compared to negative $2.4 million
on December 31, 2018, which includes $4.3 million (December 31, 2018 - $7.3 million) in loans from Brazilian
banks, that mature every six months and are expected to be rolled forward.
• As at November 1 3, 2019, the Company’s outstanding gold forward contracts covered 6,100 ounces hedged
at a weighted average price of $1,417 per ounce (December 31, 2018 – 8,801 ounces hedged at a weighted
average price of $1,260 per ounce). Also, the Company is counterparty to gold call options agreements issued
to Auramet of 3,400 ounces at $1,400 and 1,000 ounces at $1,450 expiring in Q4 2019, and 5,000 ounces at
$1,350 expiring on January 31, 2020. These gold call forwards and options are linked to the Auramet gold loan
and bridge loan drawn in 2018 and 2019, respectively.
Turmalina Pilar Total Turmalina Pilar Total
Tonnes milled (t) 94,000 114,000 208,000 88,000 87,000 175,000
Average head grade (g/t) 3.05 3.50 3.30 3.62 4.40 4.01
Recovery % 89.6% 86.3% 87.8% 90.1% 89.6% 89.8%
Gold ounces
Produced (oz) 8,280 11,044 19,324 9,252 11,068 20,320
Sold (oz) 7,399 10,018 17,417 8,609 11,832 20,441
Development
Primary (m) 1,001 515 1,516 780 656 1,436
Secondary (m) 436 575 1,010 558 169 727
Definition, infill, and
exploration drilling (m) 4,090 3,751 7,841 8,203 3,513 11,716
Q3 2018
Quarterly Summary
Q3 2019
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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
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
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”).
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 Ro ça
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 t he 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 operati ons, 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 recei pt 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 na tural
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 capit al) 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 hazar ds 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, cav e-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 r equired 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 cal culated 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 mo st 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, 2019, is set out in the Company's third
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 cur rent 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 dat ed 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 exp enses. 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 September 30, 2019, is set out in the Company's third quarter 2019 MD&A filed
on SEDAR at www.sedar.com.