TSX-V: JAG
(All figures are in US dollars unless otherwise
expressed)
TORONTO, Nov. 25, 2015 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (JAG:TSX-V) today announced its
operational and financial results for the third quarter ended
September 30, 2015.
Q3 2015 FINANCIAL & OPERATING HIGHLIGHTS
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|
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($ thousands, except
where indicated)
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For the three
months ended
September
30,
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For the nine
months ended
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Financial
Data
|
|
|
|
|
|
|
|
|
Revenue
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$
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28,126
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$
|
29,015
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$
|
79,692
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$
|
90,596
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Cost of
sales
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21,146
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|
30,040
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|
67,724
|
|
90,666
|
|
Depreciation
(included in cost of sales)
|
|
3,254
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|
7,728
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|
12,891
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|
23,743
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Gross
margin
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|
6,980
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|
(1,025)
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|
11,968
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(70)
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Gross margin
(excluding depreciation)1
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10,234
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6,703
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24,859
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23,673
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Net (loss)
income
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4,445
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(9,491)
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(12,884)
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221,393
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Per share
("EPS")
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0.04
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(0.09)
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(0.12)
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3.36
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EBITDA1
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12,020
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|
2,304
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10,374
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|
257,705
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Adjusted
EBITDA2
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|
6,415
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|
1,326
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|
13,757
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(4,455)
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Sustaining capital
expenditures1
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|
4,213
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|
7,361
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|
12,540
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|
16,484
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Non-sustaining
capital expenditures1
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|
139
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|
120
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|
389
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|
556
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Total Capital
Expenditures3
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4,352
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7,481
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12,929
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|
17,040
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Operating
Data
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|
|
|
|
|
|
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Average realized gold
price ($ per ounce)1
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$
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1,118
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$
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1,279
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$
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1,162
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$
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1,278
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Gold sold
(ounces)
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25,160
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22,681
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68,572
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70,864
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Gold produced
(ounces)
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25,235
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22,374
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67,253
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69,600
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Definition drilling
(meters)
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9,094
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10,238
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29,485
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27,772
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Cash operating costs
(per ounce produced)1
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$
|
626
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$
|
969
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$
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736
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$
|
954
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Cash operating costs
(per ounce sold)1
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$
|
711
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$
|
984
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$
|
800
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$
|
944
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All-in sustaining
costs (per ounce sold)1
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$
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970
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$
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1,494
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$
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1,113
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$
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1,353
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1 Average
realized gold price, sustaining and non-sustaining capital
expenditures, cash operating costs and all-in
sustaining costs, EBITDA and Adjusted EBITDA and gross margin
(excluding depreciation) are non-gaap financial
performance measures with no standard definition under IFRS.
Refer to the Non-IFRS Financial Performance
Measures section of the MD&A.
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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.
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3 These
amounts are presented on accrual basis. Capital expenditures
are included in our calculation of all-in
sustaining costs.
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Cash and Gold
Bullion
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($
thousands)
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|
|
September 30,
2015
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December
31,
2014
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Cash and
equivalents
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|
|
$
2,889
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$
7,161
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Gold
bullion
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|
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-
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1,801
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Total cash and gold
bullion
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$
2,889
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$
8,962
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Financial Highlights
- The average realized gold price per ounce was 13% lower in the
third quarter of 2015 compared to the corresponding 2014 period.
($1,118 – Q3 2015 vs. $1,279 – Q3 2014) as a result of continued global
gold price erosion.
- Revenues during the three and nine months ended September 30, 2015 were $28.1 million and $79.7
million respectively, compared with revenues of $29.0 million and $90.6 for the corresponding 2014 periods;
- During the nine months ended September
30, 2015, the company repaid $9.9
million or 32% of its total debt.
- As at September 30, 2015 total
debt was $21.1 million, compared to
$31.0 million as at December 31, 2014.
- The results of the Company's operations are affected by the
foreign currency movements of the Brazilian Reais and Canadian
dollar, versus the US dollar. Since the Company reports its
earnings in US dollars, any weakening of the Brazilian Reais and
Canadian dollar results in a reduction in US dollar denominated
costs, while revenues are unaffected given all revenue is earned in
US dollars. The Brazilian Reais averaged at R$3.54 per US$ in the third quarter of 2015
compared to R$2.27 per US$ in the
same period last year;
- In addition to the $7.3 million
tax refunds realized in H1-2015, the Company received another cash
refund of $0.3 million (approximately
R$1.1 million) during the third
quarter
- As at September 30, 2015, the
Company had cash and unsold gold bullion on hand of $2.9 million ($9.0
million as at December 31,
2014);
- On October 27, 2015, the Company
closed an over-subscribed financing of convertible senior secured
debentures. Aggregate gross proceeds of US$21.5 million were raised, of which
approximately US$8.4 million were
used to repay Renvest Global Resources Fund. In order to transfer
its interest in its credit facility with the Corporation to the
convertible debenture subscribers.
- The Company plans to use the remainder of the proceeds for
general corporate purposes and to advance asset optimization plans
in conjunction with the Company's ongoing development and
production activities.
Cash Operating Costs, Capital Expenditures and
All-in-sustaining Costs
- Cash operating costs decreased 35% or $343 to $626 per
ounce of gold in the third quarter 2015, compared to $969 per ounce during the third quarter
2014.
- Cash operating costs decreased 23% or $218 to $736 per
ounce of gold for the nine months ended September 30, 2015, compared to $954 per ounce during the same period in
2014.
- All-in sustaining costs ("AISC") decreased 35% or $524 to $970 per
ounce of gold in the third quarter 2015, compared to $1,494 per ounce during the third quarter
2014.
- AISC decreased 17% or $235 to
$1,113 per ounce of gold for the nine
months ended September 30, 2015,
compared to $1,348 per ounce during
the same period in 2014.
- In the third quarter of 2015, sustaining capital expenditures
decreased $3.2 million or 43% to
$4.2 million compared to $7.4 million during the corresponding 2014
period, primarily due to the suspension of primary development at
the Caeté Complex and lower capital expenditures on machinery and
equipment to preserve cash. Sustaining capital expenditures for the
nine months ended September 30, 2015
were $12.5 million.
Operational Highlights
Production
- Gold production during the three and nine months ended
September 30, 2015, was 25,235 and
67,253 ounces respectively, compared to 22,374 and 69,600 ounces in
the corresponding 2014 periods:
- Turmalina increased production by 23% in the third quarter and
produced 13,994 ounces of gold compared to 11,336 ounces in the
corresponding 2014 period,
- Caeté produced 11,241 ounces of gold in the third quarter of
2015 compared to 11,038 in the 2014 corresponding period.
- A 25% increase in average head grade was realized in the third
quarter 2015, compared to the same period in 2014.
- Total processing was 223,000 tonnes in the third quarter of
2015 (third quarter of 2014: 249,000 tonnes) at an average head
grade of 3.90 grams per tonne (third quarter of 2014 – 3.13 grams
per tonne),:
- Turmalina processed 101,000 tonnes (third quarter of 2014:
107,000 tonnes) at an average head grade of 4.77 grams per tonne
(third quarter of 2014 - 3.69 grams per tonne)
- Caeté processed 122,000 tonnes (third quarter of 2014: 142,000
tonnes) at an average head grade of 3.17 grams per tonne (third
quarter of 2014: 2.71 grams per tonne)
- A 16% increase in average head grade was realized during the
nine months ended September 30, 2015,
compared to the same period in 2014.
- A total of 659,000 tonnes was processed during the nine months
of 2015 (YTD 2014: 780,000 tonnes) at an average head grade of 3.52
grams per tonne (YTD 2014 – 3.04 grams per tonne).
- Total tonnes mined decreased 10% in the third quarter of 2015,
compared to the same period in 2014, primarily due to increased
focus on mining higher grade.
Exploration Drilling and Turmalina Reserve Update
- During the third quarter of 2015, 9,094 meters of exploration
and definition drilling was conducted at both the Turmalina and
Pilar mines, compared to 10,238 meters drilled in the corresponding
2014 period.
- On August 17, 2015, the Company
announced the final set of exploration drill results from the 2015
exploration program at the Pilar Mine. These results include
additional high-grade gold intercepts from the latest round of
underground drilling. The most significant high-grade gold results
from this drilling campaign include 13.74 grams per tonne Gold
("g/t Au") over 9.8 meters and 9.48 g/t Au over 11.15 meters.
2015 Guidance
compared to actual results
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|
2015
Guidance
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Actual
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Low
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High
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YTD
2015
|
Q3
2015
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Consolidated
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Brazilian Reais vs US
dollar foreign exchange rate
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2.5
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2.5
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3.2
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3.5
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Gold production
(ounces)
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92,000
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92,000
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67,253
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25,235
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Average head grade
(g/t)
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3.30
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3.75
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3.52
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|
3.90
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Tonnes
Processed
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925,000
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1,025,000
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659,000
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|
223,000
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Recovery
rate
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89%
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90%
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90%
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90%
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Cash operating costs
(per ounce produced)1
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$
|
800
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$
|
900
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$
|
736
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$
|
626
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All-in sustaining
costs (per ounce sold)1
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$
|
1,100
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$
|
1,200
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1,113
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$
|
970
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Definition/delineation drilling
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34,000
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34,000
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29,485
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|
9,094
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Turmalina
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Gold production
(ounces)
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36,210
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13,994
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Average head grade
(g/t)
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4.00
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|
4.25
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|
4.08
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|
4.77
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Tonnes
Processed
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475,000
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|
525,000
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|
306,000
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|
101,000
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Recovery
rate
|
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90%
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|
91%
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|
91%
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91%
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Cash operating costs
(per ounce produced)1
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$
|
640
|
$
|
700
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$
|
592
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$
|
497
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All-in sustaining
costs (per ounce sold)1
|
$
|
900
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$
|
1,000
|
$
|
937
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$
|
866
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Definition/delineation drilling
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|
25,000
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|
25,000
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|
18,843
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8,374
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Caeté
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|
|
|
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Gold production
(ounces)
|
|
|
|
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31,043
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|
11,241
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Average head grade
(g/t)
|
|
2.40
|
|
2.90
|
|
3.03
|
|
3.17
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Tonnes
Processed
|
|
450,000
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|
500,000
|
|
353,000
|
|
122,000
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Recovery
rate
|
|
89%
|
|
90%
|
|
89%
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|
89%
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Cash operating costs
(per ounce produced)1
|
$
|
1,075
|
$
|
1,175
|
$
|
903
|
$
|
785
|
All-in sustaining
costs (per ounce sold)1
|
$
|
1,200
|
$
|
1,300
|
$
|
1,034
|
$
|
893
|
Definition/delineation drilling
|
|
9,000
|
|
9,000
|
|
10,642
|
|
720
|
1Cash
operating costs and all-in sustaining costs are non-gaap financial
performance measures with no standard
definition under IFRS. Refer to the Non-IFRS Financial
Performance Measures section of the MD&A.
|
George Bee,
President and Chief Executive Officer of Jaguar commented, "We
are delighted to report that both our year-to-date and
third-quarter 2015 results reflect continued increases in ore
head-grade processed and cost decreases.
In the third-quarter of 2015 consolidated
'cash operating costs' of $626
decreased by 35% or $343 per ounce
compared to last year, while on a year-to-date basis our 'cash
operating costs' of $736 decreased by
23% or $218 per ounce compared to
last year.
In the third-quarter 2015, 'cash operating
costs' at our flagship Turmalina mine were $497 per ounce reflecting a reduction of 34% or
$252 per ounce compared to
2014.
We continue to deploy significant capital
required to normalize the operations of our mines after several
years of underfunding, thereby catching up from the depleted state
of reserves/resources and the equipment that existed following the
2014 financial restructuring. As a result our AISCs are
higher as capital deployment has not yet been reduced to a 'steady
state level'.
We credit operating cost improvements not only
to the favourable foreign exchange rate movement in Brazil but also the impact of our grade
control, operational and administrative initiatives, which are
beginning to be realized."
Qualified Person
Scientific and technical information contained in
this press release has been reviewed and approved 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 defined by National Instrument 43-101- Standards of
Disclosure for Mineral Projects ("NI43-101").
About Jaguar Mining Inc.
Jaguar is a gold producer with mining operations
in a prolific greenstone belt in the state of Minas Gerais,
Brazil. Additionally, Jaguar
wholly owns the large-scale Gurupi Development Project in the state
of Maranhão, Brazil. In total, the
Company owns mineral claims covering an area of approximate
197,000-hectares. Additional information is available on the
Company's website at www.jaguarmining.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release
constitute "Forward-Looking Statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, management's assessment
of Jaguar's future plans and operation. Certain statements
throughout this press release constitute forward-looking statements
(forecasts) under applicable securities laws relating to future
events or future performance. 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.
Forward-Looking Statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual results
or performance to be materially different from any future results
or performance expressed or implied by the Forward-Looking
Statements. Management does not have firm commitments for all of
the costs, expenditures, prices or other financial assumptions used
to prepare the financial outlooks or assurance that such results
will be achieved. The actual results of Jaguar will likely vary
from the amounts set forth in the financial outlooks and such
variation may be material. Jaguar and its management believe that
the financial outlooks have been prepared on a reasonable basis,
reflecting the best estimates and judgments, and represent, to the
best of management's knowledge and opinion, the Company's expected
production, grades, tones milled, recovery rates, cash operating
costs, and definition/delineation drilling, in addition to overall
expenditures and results of operations during 2015. However,
because this information is highly subjective and subject to
numerous risks, including the risks discussed below, it should not
be relied on as necessarily indicative of future results.
Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by Jaguar and described in the
forward-looking information. The forward-looking information
contained in this press release is made as of the date hereof and
Jaguar undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, unless required by
applicable securities laws. The forward-looking information
contained in this press release is expressly qualified by this
cautionary statement.
Forward-Looking Statements involve known and
unknown risks, uncertainties and other factors may cause the actual
results, performance or achievements to be materially different
from those expressed or implied by the forward-looking statements.
Such risk factors include, among others the risk of Jaguar's not
meeting the forecast plans regarding its operations and financial
performance, as well as those factors disclosed in the Company's
current Annual Information Form and Management's Discussion and
Analysis, as well as other public disclosure documents, available
on SEDAR at www.sedar.com. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate. The
forward-looking statements contained herein are presented for the
purposes of assisting investors in understanding the Company's
plan, objectives and goals and may not be appropriate for other
purposes. Accordingly, readers should not place undue reliance on
forward-looking statements.
These Forward-Looking Statements represent the
Company's views as of the date of this press release. The Company
anticipates that subsequent events and developments may cause the
Company's views to change. Factors, which could cause results or
events to differ from current expectations, include, among other
things, actions taken against the Company by governmental agencies
and securities and other regulators and other factors not currently
viewed as material that could cause actual results to differ
materially from those described in the Forward-Looking Statements.
The Company does not undertake to update any Forward-Looking
Statements, either written or oral, that may be made from time to
time by or on behalf of the Company subsequent to the date of this
discussion except as required by law.
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.
Footnotes
- 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 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 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 three months ended September
30, 2015 is set out in the Company's third quarter 2015
MD&A filed on SEDAR at www.sedar.com.
- 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 three
months ended September 30, 2015 is set out in the
Company's third quarter 2015 MD&A filed on SEDAR
at www.sedar.com.
SOURCE Jaguar Mining Inc.