PR Newswire
TORONTO, Aug. 9, 2016
TSX: JAG
TORONTO, Aug. 9, 2016 /PRNewswire/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced details of the Company's financial and operating results for the second quarter ("Q2 2016") ended June 30, 2016. All figures are in US dollars unless otherwise expressed.
Rodney Lamond, President and Chief Executive Officer of Jaguar commented, "We ended the second quarter achieving strong gold production of 24,222 ounces, $10.4 million in operating cash flow, and development and exploration success. We are well positioned to deliver on our 2016 production guidance of 90,000 – 95,000 ounces and we are pleased with the progress we have made over the last few months with our development and exploration initiatives. As we continue to generate significant operating cash flow, we will also continue to prudently accelerate capital investment to strengthen and enhance our current operating assets and priority exploration targets. Executing our capital investment program remains a key driver to the growth of our sustainable production profile in 2016 and will enable us to realize the exciting future potential of our assets. We are pleased to end the quarter with a cash balance of $17.5 million after capital investment of $9.1 million, reflecting a 95% increase in primary development, a 182% increase in secondary development, and $0.6 million of interest payments on the convertible debentures and $0.9 million in debt principal and interest payments."
Q2 2016 Key Financial Highlights
Q2 2016 Key Operating Highlights
Complete Financial Statements and Management Discussion and Analysis are available on SEDAR and on the Company's website at www.jaguarmining.com.
Q2 2016 Financial & Operating Highlights
($ thousands, except where indicated) |
For the three months |
For the six months | |||
2016 |
2015 |
2016 |
2015 | ||
Financial Data |
|||||
Revenue |
$29,996 |
$22,820 |
$56,660 |
$51,567 | |
Operating expenses |
17,887 |
16,808 |
35,466 |
36,941 | |
Depreciation |
8,389 |
3,233 |
16,091 |
9,637 | |
Gross margin |
3,720 |
2,779 |
5,103 |
4,989 | |
Gross margin (excluding depreciation)1 |
12,109 |
6,012 |
21,194 |
14,626 | |
Loss on conversion option embedded in convertible debt |
25,189 |
- |
45,944 |
(3) | |
Net loss |
(26,866) |
(4,383) |
(41,867) |
(17,328) | |
Per share ("EPS") |
(0.24) |
(0.04) |
(0.38) |
(0.16) | |
EBITDA1 |
(18,044) |
(137) |
(23,904) |
(1,646) | |
Adjusted EBITDA1,2 |
8,859 |
2,208 |
14,075 |
7,277 | |
Adjusted EBITDA per share1 |
0.08 |
0.02 |
0.13 |
0.07 | |
Cash operating costs (per ounce sold)1 |
758 |
876 |
750 |
850 | |
All-in sustaining costs (per ounce sold)1 |
1,203 |
1,203 |
1,134 |
1,174 | |
Average realized gold price ($ per ounce)¹ |
1,251 |
1,190 |
1,209 |
1,188 | |
Cash generated from operating activities |
10,435 |
1,638 |
19,961 |
13,815 | |
Sustaining capital expenditures1,3 |
7,864 |
2,518 |
12,877 |
7,307 | |
Non-sustaining capital expenditures1,3 |
1,245 |
678 |
1,629 |
1,270 | |
Total capital expenditures3 |
9,109 |
3,196 |
14,506 |
8,577 | |
Operating Data |
|||||
Gold produced (ounces) |
24,222 |
20,682 |
45,419 |
42,018 | |
Gold sold (ounces) |
23,970 |
19,184 |
46,851 |
43,412 | |
Primary development (metres) |
1,857 |
951 |
3,018 |
1,657 | |
Secondary development (metres) |
1,317 |
467 |
2,363 |
773 | |
Definition, infill, and exploration drilling (metres) |
9,486 |
11,416 |
21,377 |
20,384 | |
1 Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, EBITDA and Adjusted EBITDA, Adjusted EBITDA per share, and gross margin (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 These amounts are presented on accrual basis. Capital expenditures are included in our calculation of all-in sustaining costs. |
Cash and Gold Bullion |
||||
($ thousands) |
June 30, 2016 |
December 31, 2015 | ||
Cash and cash equivalents |
$17,535 |
$15,319 | ||
Gold bullion |
- |
- | ||
Total cash and gold bullion |
$17,535 |
$15,319 |
Q2 2016 Financial Highlights
Revenue, Net Income (Loss), and External Factors
Cash Operating Costs, Capital Expenditures, and All-In-Sustaining Costs ("AISC")
Cash Position, Working Capital, TSX Listing, and Operational Excellence
Q2 2016 Operational Highlights
Strong Gold Production, Recovery, and Primary and Secondary Development
Improving Consolidated Grades
Positive Drill Results at Turmalina
Outlook
Looking ahead, the Company continues to be focused on delivering positive and sustainable physical performance, profitability, and cost optimization. The Company has established the following consolidated production and cost guidance for 2016 which represents achievable results from operations:
2016 Guidance
Turmalina Complex Caeté Complex Consolidated | ||||||||
Operations |
Low High |
Low High |
Low High | |||||
Gold production (ounces) |
62,000 |
65,000 |
28,000 |
30,000 |
90,000 |
95,000 | ||
Cash operating costs (per ounce sold)1 |
$600 |
$650 |
$925 |
$975 |
$700 |
$750 | ||
All-in sustaining costs (per ounce sold)1 |
$850 |
$900 |
$1,150 |
$1,200 |
$950 |
$1,000 | ||
Recovery (%) |
90 |
90 |
90 |
90 |
90 |
90 | ||
Development |
||||||||
Primary (metres) |
3,000 |
3,300 |
1,700 |
1,900 |
4,700 |
5,200 | ||
Secondary (metres) |
3,200 |
3,400 |
2,500 |
2,700 |
5,700 |
6,100 | ||
Definition, infill, and exploration drilling (metres) |
18,000 |
20,000 |
10,000 |
12,000 |
28,000 |
32,000 |
1. Cash operating costs and All-in sustaining costs are non-GAAP financial performance measures with no standard definition under IFRS. Refer to Non-IFRS Financial Performance Measures below. 2016 cost guidance has been prepared on the basis of a foreign exchange rate of 3.8 Brazilian Reais vs. the US dollar and a gold price of US$1,150 per ounce. |
2016 Key Growth Drivers
Qualified Person
Scientific and technical information contained in this press release has been reviewed and verified by Marcos Dias Alvim, BSc Geo., MAusIMM (CP), Project Development Manager, who is an employee of Jaguar Mining Inc., and is a "qualified person" as such term is defined by National Instrument 43-101 ("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 approximate 191,000 hectares. The Company's principal operating assets are located in a prolific greenstone belt in the state of Minas Gerais and include the Turmalina Gold Mine Complex ("Mineração Turmalina Ltda" or "MTL") and Caeté Gold Mine Complex ("Mineração Serras do Oeste Ltda" or "MSOL") which combined produce more than 90,000 ounces of gold annually. The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. Additional information is available on the Company's website at www.jaguarmining.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. 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. This news release contains forward-looking information regarding expected production, grades, tonnes milled, recovery rates, cash operating costs, and definition/delineation drilling, in addition to overall expenditures and results of operations during 2016. 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 receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and general business and economic conditions. Forward-looking information involve 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, the uncertainties with respect to the price of gold, labor disruptions, mechanical failures, increase in costs, environmental compliance and change in environmental legislation and regulation, procurement and delivery of parts and supplies to the operations, uncertainties inherent to capital markets in general 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. 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 required by law. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
Non-IFRS Measures
This press release provides certain financial measures that do not have a standardized meaning prescribed by IFRS. Readers are cautioned to review the above stated footnotes where the Company expanded on its use of non-IFRS measures.
SOURCE Jaguar Mining Inc.