Jaguar Mining Reports Third Quarter 2023 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
JAGUAR MINING REPORTS THIRD QUARTER 2023 RESULTS
__________________________________________________________________________________________
Toronto, November 9, 2023 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG, OTCQX:JAGGF)
today announced financial and operating results for the third quarter ended September 30, 2023. All figures are in
US Dollars, unless otherwise expressed.
THIRD QUARTER HIGHLIGHTS
Financials
• The Company ended the quarter with $20 million of cash on hand.
• Net income was $3.8 million compared to $6. 5 million in Q3 2022. The year -over-year drop in net earnings
mainly reflects lower revenues partly offset by lower operating costs, lower income -tax expense and other
offsetting variances.
• Cash flow from operations1 was $6.3 million compared to $13.3 million in Q3 2022. The change reflects lower
net earnings combined with the timing of income tax payments compared to Q3 2022.
• Revenue was $31.6 million compared to $37.8 million in Q3 2022, driven by lower gold production and fewer
ounces sold, partially offset by higher average realized gold price of $1,916 per ounce compared to $1,711 per
ounce in Q3 2022.
• Operating costs totaled $19.6 million compared to $22.1 million in Q3 2022. The 11% cost reduction is due to
improved cost efficiency and the volume benefit of 4% fewer ore tonnes mined. The Company has an ongoing
program to reduce unit costs by lowering headcount, reduced use of contractors, and a more efficient truck
fleet with higher haul speeds up the ramps and reduced fuel consumption.
• Free cash flow1 was $1.5 million compared to $8.4 million in Q3 2022. The reduction mainly reflects the $6.9
million variation in operating cash flow, with offsetting changes in sustaining capital expenditures and asset
retirement obligation expenditures, between Q3 last year and this year.
Operations
• Consolidated gold production was 17,316 ounces compared to 21,161 ounces produced in Q3 2022 (although
3% higher than Q2 2023). Average head grade decreased to 2.95 g/t from 3.46 g/t in Q3 2022. Tonnes milled
decreased to 208,000 tonnes compared to 216,000 in Q3 2022.
• Cash operating costs per ounce sold1 were $1,188 compared to $999 in Q3 2022, mainly reflecting the volume
impact of 25% fewer gold ounces sold in Q3 2023, partly offset by lower operating costs driven by 5% fewer
tonnes mined and processed. Gold sales were 16,502 ounces compared to 22,121 ounces sold in Q3 2022.
• All-in sustaining costs1 per ounce sold were $1,704 compared to $1,331 per ounce sold in Q3 2022, driven by
the increase in cash operating costs per ounce sold, combined with 18% higher sustaining capital expenditures.
Sustaining capital expenditures increased mainly in relation to brownfield exploration at Pilar where 6,238
metres were drilled, an increase of 41% over the 4,427 metres drilled in Q3 2022. Exploration drilling at Pilar 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
2022 was lower due to a loss of ventilation at the bottom of the mine which has been corrected. In the current
year, catch-up drilling has been performed to increase the flexibility of access to more stopes at a time.
• Total development completed in the quarter was 2,967 metres, in line with the 3,000 metres developed in Q3
2022. These development rates provide sustainable progress on the ramp, ore development, and exploration
drives. The exploration development metres in 2023 reflect ramp development towards the Faina resources.
Corporate Updates
• Successfully closed the acquisition of the Pitangui project and the remaining interest in the Acurui project from
a subsidiary of IAMGOLD Corporation, for 6.3 million shares.
• Announced an agreement with a subsidiary of AngloGold Ashanti Limited to exchange a non -cash royalty
payable with an equal and offsetting royalty receivable. The result of this exchange was to cancel out a royalty
obligation previously attached to the Company’s Paciência Gold Mine Complex (CPA) under an historical
accord.
• Development to reach the Faina resource from the Turmalina mine continued, with the dual accesses reaching
the boundary of the Faina resource by the end of Q3. This positions the company to extend development into
the heart of the Faina resource in Q4 and to begin developing within the better -grade zones in 2024. Year-to-
date investment in the Faina project was $6.7 million through Q3.
• Initiated changes in the mining methods and cost-reduction plans at both our mines during the quarter.
• Announced the appointment of Alfred Colas, CPA, CA as Chief Financial Officer .
_________________________________
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.
Vern Baker, President and CEO of Jaguar, stated : “It was a busy quarter for us on the corporate side as we
successfully completed the acquisition of IAMGOLD’s Brazilian assets (the Pitangui project and the remaining
interest in the Acurui project) and announced an agreement with a subsidiary of AngloGold Ashanti Limited to
exchange a non-cash royalty payable with an equal and offsetting royalty receivable.
We exited the quarter in a strong position. We have almost no debt, $20 million in the bank, two mines that are
seeing a steady improvement, a new mining area (Faina) being accessed, and a follow -up project (Pitangui) , to
continue our next phase of growth. Going forward we are continuing our efforts to ensure strong margins and
consistent improvement in production in the fourth quarter and beyond.”
Alfred Colas, Chief Financial Officer of Jaguar, stated : “I have been with Jaguar for almost two months and am
excited to be part of the Company’s strong management team. During the third quarter we focused on the
integration of IAMGOLD Brazil which I am pleased to report is now complete . We were also able to increase
production slightly over the second quarter, a trend we hope to continue.
With two new growth assets and a steady focus on execution, we aim to build up credibility with our shareholders
over the coming quarters.”
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Third Quarter 2023 Results
Non-GAAP performance
The Company has included the following Non-GAAP performance measures in this document: cash operating costs
per ounce of gold sold, all-in sustaining costs per ounce of gold sold, average realized gold price (per ounce of gold
sold), sustaining capital expenditures, non-sustaining capital expenditures, adjusted operating cash flow, free cash
flow, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and working
capital. These Non-GAAP performance measures do not have any standardized meaning prescribed by IFRS and,
therefore, may not be comparable to similar measures presented by other companies.
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company ’s performance. Accordingly, they are intended to provide
($ thousands, except where indicated)
2023 2022 2023 2022
Financial Data
Revenue $ 31,621 $ 37,846 $ 100,656 $ 106,391
Operating costs 19,603 22,098 59,677 62,790
Depreciation 6,697 5,384 18,682 14,945
Gross profit 5,321 10,364 22,297 28,656
Net (loss) income 3,785 6,475 5,154 9,920
Per share ("EPS") 0.05 0.09 0.07 0.14
EBITDA1 11,354 13,515 29,813 30,428
Adjusted EBITDA1,2 10,187 12,081 33,223 31,404
Adjusted EBITDA per share1,2 0.14 0.17 0.45 0.43
Cash operating costs (per ounce sold)1 1,188 999 1,138 1,062
All-in sustaining costs (per ounce sold) 1 1,704 1,331 1,682 1,438
Average realized gold price (per ounce)1 1,916 1,711 1,920 1,800
Cash generated from operating activities 6,346 13,266 26,684 30,413
Free cash flow1 1,524 8,365 7,247 16,747
Free cash flow (per ounce sold)1 92 378 138 283
Sustaining capital expenditures1 6,534 5,581 22,053 15,810
Non-sustaining capital expenditures1 5,038 5,911 10,788 17,787
Total capital expenditures 11,572 11,492 32,841 33,597
Nine months ended
September 30,
Three months ended
September 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) 17,316 21,161 52,222 59,852
Gold sold (ounces) 16,502 22,121 52,427 59,110
Primary development (metres) 1,027 1,051 3,837 2,676
Exploration development (metres) 523 690 1,142 2,066
Secondary development (metres) 1,417 1,259 4,060 3,725
Definition, infill, and exploration drilling (metres) 14,575 23,620 34,650 80,555
Three months ended
September 30,
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
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 o f a mine’s performance as they provide: (i) a measure of the mine ’s cash margin
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 reported 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 3,918$ 4,004$ 14,620$ 11,052$
Brownfield exploration 617 241 1,403 877
Mine-site sustaining 1,378 1,336 5,169 3,881
Engineering - - - -
Equipment 1,378 1,336 5,169 3,881
Other sustaining capital2 621 - 861 -
Total sustaining capital1 6,534 5,581 22,053 15,810
Non-sustaining capital (including capital projects) 1
Mine-site non-sustaining 3,326 5,231 8,172 15,643
Asset retirement obligation - non-sustaining 2 1,712 680 2,616 2,144
Other non-sustaining capital1 - - - -
Total non-sustaining capital1 5,038 5,911 10,788 17,787
Total capital expenditures 11,572$ 11,492$ 32,841$ 33,597$
Three months ended
September 30,
Nine months ended
September 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 $ 6,346 $ 13,266 $ 26,684 $ 30,413
Adjustments
Expenditures against Asset Retirement Obligation 1,712 680 2,616 2,144
Sustaining capital expenditures2 (6,534) (5,581) (22,053) (15,810)
Free cash flow $ 1,524 $ 8,365 $ 7,247 $ 16,747
Gold ounces sold 16,502 22,121 52,427 59,110
Free cash flow per ounce sold $ 92 $ 378 $ 138 $ 283
Three months ended
September 30,
Nine months ended
September 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.
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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
Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold1
($ thousands, except where indicated)
2023 2022 2023 2022
Operating costs 19,603$ 22,098$ 59,677$ 62,790$
General & administration expenses 1,786 1,658 5,475 5,286
Corporate stock-based compensation 39 116 834 1,086
Sustaining capital expenditures¹ 6,534 5,581 22,053 15,810
All-in sustaining cash costs 27,962 29,453 88,039 84,972
Reclamation (operating sites) 160 - 160 8
All-in sustaining costs 28,122$ 29,453$ 88,199$ 84,980$
Non-sustaining capital expenditures 5,038 5,911 10,788 17,787
Exploration and evaluation costs (greenfield) 819 1,373 2,751 4,493
Reclamation (non-operating sites) (4) - (2) 3
Care and maintenance (non-operating sites) 195 137 538 448
All-in costs 34,170$ 36,874$ 102,274$ 107,711$
Ounces of gold sold 16,502 22,121 52,427 59,110
Cash operating costs per ounce sold² 1,188$ 999$ 1,138$ 1,062$
All-in sustaining costs per ounce sold² 1,704$ 1,331$ 1,682$ 1,438$
All-in costs per ounce sold² 2,071$ 1,667$ 1,951$ 1,822$
Average realized gold price 1,916$ 1,711$ 1,920$ 1,800$
Cash operating margin per ounce sold 728$ 712$ 782$ 738$
All-in sustaining margin per ounce sold 212$ 380$ 238$ 362$
Three months ended
September 30,
Nine months ended
September 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.
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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
Reconciliation of Net Income to EBITDA and Adjusted EBITDA 1
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 defi ned by National Instrument 43 -101
- Standards of Disclosure for Mineral Projects ("NI 43-101").
($ thousands, except where indicated)
2023 2022 2023 2022
Net Income $ 3,785 $ 6,475 $ 5,154 $ 9,920
Income tax expense - 999 3,417 3,542
Finance costs 854 638 2,505 1,964
Depreciation and amortization 6,715 5,403 18,737 15,002
EBITDA1 $ 11,354 $ 13,515 $ 29,813 $ 30,428
Changes in other provisions and VAT taxes 536 (118) 964 (95)
Foreign exchange (gain) loss (1,742) (1,432) 1,612 (15)
Stock-based compensation 39 116 834 1,086
Adjusted EBITDA1 $ 10,187 $ 12,081 $ 33,223 $ 31,404
Weighted average outstanding shares 73,973,766 72,465,915 73,089,569 72,464,429
Adjusted EBITDA per share1 $ 0.14 $ 0.17 $ 0.45 $ 0.43
Three months ended
September 30,
Nine months ended
September 30,
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
Cash and cash equivalents $ 19,991 $ 25,208
Non-cash working capital
Other current assets:
Restricted cash 839 618
Inventory 15,887 16,239
Recoverable taxes 6,862 8,545
Other accounts receivable 1,378 343
Prepaid expenses and advances 2,665 3,615
Current liabilities:
Accounts payable and accrued liabilities (18,154) (19,782)
Notes payable (3,405) (3,040)
Lease liabilities (2,024) (2,414)
Current tax liability - (1,881)
Other taxes payable (1,403) (1,056)
Reclamation provisions (975) (3,156)
Legal and other provisions (4,721) (3,751)
Working capital¹ $ 16,940 $ 19,488
1 This is a non-GAAP financial performance measure with no standard definition under IFRS.
($ thousands)
September 30,
2023
December 31,
2022
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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
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.
For further information please contact:
Vernon Baker
Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Alfred Colas
Chief Financial Officer
Jaguar Mining Inc.
416-847-1848
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 manage ment'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 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, th e 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 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 estim ates 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
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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
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 b eing obtained 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 a nd 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, deve lopment 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, min ing and
production, including environmental hazards, tailings dam f ailures, 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 ina bility 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.sedarplus.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 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 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 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 direct ly
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.sedarplus.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. 2023, is set out in the Company's second quarter 2023 MD&A filed on SEDAR+ at www.sedarplus.com.