Jaguar Mining Reports Financial Results for the Second Quarter 2024

TORONTO, ON / ACCESSWIRE / August 7, 2024 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG)(OTCQX:JAGGF) announces financial results for the second quarter ended June 30, 2024. All figures are in US Dollars, unless otherwise expressed.

Second Quarter Highlights

• Gold production was 16,829 ounces, marginally higher than the 16,750 ounces produced in the second quarter of 2023, reflecting a 21% increase in grade offset by a 16% reduction in ore tonnes processed.

• Gold sold was 19,022 ounces representing a 12% increase from the 16,917 ounces sold in the second quarter of 2023. Realized gold prices for the quarter were $2,354 per ounce, 20% higher than the $1,962 per ounce realized in the second quarter of 2023.

• Cash operating costs per ounce¹ decreased by 9% to $1,046 per ounce of gold sold from $1,150 per ounce of gold sold in the second quarter of 2023. All-in sustaining costs (AISC) per ounce¹ decreased by 15% to $1,517 per ounce of gold sold from $1,781 per ounce of gold sold in the second quarter of 2023. The decrease reflects the volume impact of 12% higher ounces sold and $2 million lower sustaining capital expenditures in the current quarter compared to the same quarter of 2023.

• Revenue for the quarter was $44.8 million, 35% higher than the $33.2 million in revenue for the second quarter of 2023 driven by higher ounces-sold volume and higher realized gold prices year-over-year.

• Operating costs for the quarter were $19.9 million compared to operating costs of $19.5 million in the second quarter of 2023.

• Net income for the quarter was $13.5 million ($0.17 per share) compared to a loss of $1.1 million (loss of $0.02 per share) in the second quarter of 2023.

• Free cash flow ¹ for the quarter was $15.2 million, which represents a significant increase compared to free cash flow of $2.4 million in the second quarter of 2023. This is calculated as operating cash flow plus asset retirement obligation expenditures, less sustaining capital. Free cash flow per ounce ¹ sold for the quarter was $801 per ounce of gold sold compared to $141 per ounce of gold sold in the second quarter of 2023.

Cash position and working capital ¹

• As of June 30, 2024, the Company had cash and cash equivalents of $37.4 million, compared to $22.0 million in cash and cash equivalents as of December 31, 2023.

• This $15.4 million increase in cash year to date mainly reflects higher realized gold prices and higher average grades with positive margins on gold sales during the first half of 2024, in addition to a $4 million collection on an account receivable.

• As of June 30, 2024, working capital was $28.4 million, compared to working capital of $12.6 million as of December 31, 2023.

Vern Baker, President and CEO of Jaguar, stated : "I am very pleased with the performance of our operations this quarter. At both of our mines we are focusing on the development of new mining areas (BA-Torre at Pilar, and Faina at Turmalina) while producing profitable ounces. Overall, our production increased slightly year-over-year and quarter-over-quarter. At Pilar production returned to above 10,000 ounces for the quarter. At Turmalina the team is adapting their focus to utilize higher grades in older orebodies while developing new orebodies in the Faina zone. Both mines realized an increase in grade. At Pilar higher grade ore from our BA-Torre zone and the LPA section of our main zone contributed to the grade increase. The team at Pilar has been pushing development headings on five separate sub-levels to start building a production platform in the BA-Torre structure. During the quarter, Turmalina achieved a milestone with the first tonnage from the Faina zone being milled. Ore generated by development was processed at the Turmalina plant, which produced 414 gold ounces as the first production contributed from Faina. This also contributed to an increase in head grade at Turmalina. Continuing development and first stope production from the Faina zone is expected in the second half of 2024.

I am also pleased with our financial results this quarter. With the tailwinds of gold prices and FX on the Brazilian Real, it was a very good quarter for us. With gold sales exceeding production as timing allowed the reduction of inventory, we realized robust revenue and free cash flow this quarter. Our all-in sustaining costs also decreased by over $250 per ounce during the quarter. While we are developing two areas in our operating mines and working on bringing our Onças de Pitangui property into production, we also increased our cash balance by $11.0 million. We now have $37.4 million in cash and cash equivalents and no long term debt. We are well positioned to fund our future growth plans and ongoing exploration programs.

Going forward, we expect production at Turmalina to gradually increase as additional tonnes from Faina start to impact the production rate. At Pilar, we expect production to remain consistent with the current quarter for the remainder of 2024. Our team will continue to focus on developing sufficient access in the BA-Torre zone, with the goal of achieving consistent production from this area in 2025.

Second Quarter 2024 Results

Non-GAAP Performance Measures

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 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 of 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 to non-sustaining capital expenditures ¹