JAG – TSX-V
TORONTO, Nov. 12, 2014 /PRNewswire/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (JAG: TSX-V) today announced the
financial and operating results for the third quarter ended
September 30, 2014.
Financial Highlights
- Revenues during Q3 2014 and YTD 2014 were $29.1 million and $90.6
million, respectively, compared with revenues of
$32.1 million and $105.7 million, respectively, for the
corresponding 2013 periods;
- The average realized price per ounce of gold during Q3 2014 and
YTD 2014 were $1,279 and $1,278 respectively, compared to $1,331 and $1,461,
respectively, for the corresponding periods in 2013;
- 22,681 ounces of gold were sold during Q3 2014 and 70,864
ounces were sold during YTD 2014, while 24,111 and 72,347 ounces of
gold were sold during the corresponding 2013 periods;
- Gold bullion of 2,057 ounces remained unsold at September 30, 2014 (1,698 ounces at December 31, 2013);
- On April 22, 2014, the Company
concluded a series of actions that (i) extinguished $268.5 million of outstanding indebtedness, (ii)
obtained interest forgiveness of $10.5
million, (iii) extended the repayment terms of its senior
secured debt facility, (iv) concluded a $50.0 million equity financing and (v) changed
its executive management team;
- As at September 30, 2014, the
Company had cash and bullion-on hand of $21.5 million ($11.1
million at December 31,
2013).
Operational Highlights
- 22,374 ounces of gold were produced during Q3 2014 and 69,601
YTD 2014, compared to 26,300 in Q3 2013 and 73,639 YTD 2013;
- The 15% or 3,926 ounce decrease in production during Q3 2014
compared to Q3 2013 is largely due to a new focus on more
profitable higher grade tonnes which led to a 12% reduction in
tonnes processed at the Turmalina Mine Complex. The tonnage
decrease also allowed corrective maintenance and major rebuilds to
be carried out at Turmalina. A 19% reduction in tonnes processed at
the Caeté Mine Complex, was due in part to reduced equipment
availability, and also increased grade control
initiatives;
- The 'average recovery grade' (the recalculated head-grade)
during Q3 2014 increased 2% to 3.13 grams per tonne compared to
3.06 grams per tonne in Q3 2013. However, on a year-to-date basis,
the average recovery grade was 3.03 grams per tonne compared to
3.11 grams per tonne for the nine months ended September 30, 2013. An increased focus on grade
resulted in a slight improvement in grade in Q3 2014. More
significant improvements in grade await the results of the catch-up
development and definition drilling ahead of production, part of a
turnaround initiative at each mine;
- Q3 2014 cash-operating-costs per ounce of gold produced were
$969 compared to $847 during Q3 2013, an increase of $122 per ounce,
- The 14% or $122 per ounce
increase in cash-operating-costs during Q3 2014 is due to an
increase of $62 per ounce in mining
costs, as a result of catch-up maintenance activities, while
$61 per ounce is due to less ounces
being produced in Q3 2014 compared to Q3 2013, therefore a higher
amount of fixed costs were incurred on a per ounce basis;
- For the nine-month-ended September 30,
2014, cash-operating-costs per ounce of gold produced were
$950, an increase of $84 per ounce, compared to $866 during the same period in 2013;
- The 10% or $84 per ounce increase
in cash-operating-costs YTD 2014 is primarily due to less ounces
being produced YTD 2014 compared to YTD 2013, partially as a result
of lower equipment availability and slightly lower grade, therefore
a higher amount of fixed costs were incurred on a per ounce
basis;
- Q3 2014 all-in sustaining costs per ounce sold (AISC) were
$1,494 compared to $1,191 per ounce during Q3 2013, an increase of
$303 per ounce;
- The 25% or $303 per ounce
increase in AISC's is primarily due to a $122 per ounce increase in cash-operating-costs
(as shown above), $2.2 million of
increased equipment capital expenditures in Q3 2014 compared to Q3
2013, representing $99 per ounce and
$1.0 million of increased primary
development at the Turmalina Mine, compared to Q3 2013,
representing $43 per ounce.
- For the nine months ended September 30,
2014, AISC's per ounce of gold sold were $1,353, compared to $1,358 for the nine months ended September 30, 2013;
- 311,479 tonnes of material was mined during Q3 2014 compared to
337,370 tonnes during Q3 2013, representing a decrease of 8%. On a
year-to-date basis, 914,981 tonnes were mined compared to 1,059,545
for the nine months ended September 30,
2013, representing a decrease of 14%;
- For both the three and nine months ended September 30, 2014, the average gold recovery
rate was 89% compared to 88% for both comparable 2013 periods;
- During Q3 2014, the Company disclosed drilling results,
highlighting 15.32 grams per tonnes over 19.0 meters, from resource
expansion drilling at the Turmalina mine Ore Body A. The news
release included reference to several high-grade intercepts
generated up to 100 meters down-plunge of existing mine
development.
Corporate Highlights
- During Q3 2014, the Company announced the appointment of
Neil Hepworth as Chief Operating
Officer. Neil has many years of operational experience and is
a qualified geotechnical and mining engineer and is based at the
Company's principal office in Belo
Horizonte, Brazil;
- The Company's new executive management team has embarked on an
in-depth review of all operations and has formulated a
comprehensive action plan that, it believes, could lead to an
operational turnaround and reduced operating costs. A key feature
of the plan is undertaking a comprehensive program of
definition/delineation drilling and accelerated mine development
that management believes, is needed at all three operating
mines;
- Following the first nine months of 2014, Jaguar is on track
achieve the lower half of its annual production target of
90,000-100,000 ounces.
Financial and
Operational Highlights
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|
|
|
|
($ thousands, except
where indicated)
|
For the three
months ended
September
30
|
For the nine
months ended
September
30
|
|
2014
|
2013
|
2014
|
2013
|
Financial
Data
|
|
|
|
|
Revenue
|
$
29,015
|
$ 32,082
|
$
90,596
|
$ 105,679
|
Production
costs
|
22,312
|
20,451
|
66,923
|
67,231
|
Gross margin
(excluding depreciation)
|
6,703
|
11,631
|
23,673
|
38,448
|
Net (loss)
income
|
(9,491)
|
(13,192)
|
221,393
|
(82,835)
|
|
Per share
("EPS")
|
(0.09)
|
(13.19)
|
3.36
|
(83.72)
|
EBITDA1
|
2,154
|
5,220
|
257,231
|
(30,764)
|
Sustaining capital
expenditures1
|
7,361
|
4,567
|
16,484
|
18,416
|
Non-sustaining
capital expenditures1
|
120
|
224
|
556
|
963
|
Total Capital
Expenditures2
|
$
7,481
|
$ 4,791
|
$
17,040
|
$ 19,379
|
Operating
Data
|
|
|
|
|
Average realized gold
price ($ per ounce)1
|
$
1,279
|
$ 1,331
|
$
1,278
|
$
1,461
|
Gold sold
(ounces)
|
22,681
|
24,111
|
70,864
|
72,347
|
Gold produced
(ounces)
|
22,374
|
26,300
|
69,601
|
73,639
|
Cash operating costs
(per ounce produced)1
|
969
|
847
|
950
|
866
|
Cash operating costs
(per ounce sold)1
|
984
|
848
|
944
|
929
|
All-in sustaining
costs (per ounce sold)1
|
$
1,494
|
$ 1,191
|
$
1,353
|
$
1,358
|
1Average
realized gold price, sustaining and non- sustaining capital
expenditures, cash operating costs and all-in sustaining costs and
EBITDA 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.
|
2These
amounts are presented on accrual basis. Capital expenditures
are included in our calculation of all-in sustaining costs.
Sustaining capital includes primary development for operating mines
which are expected to benefit the next two years. Expenditures
exceeding the two year time frame are disclosed as non-sustaining
capex.
|
For more information on the financial and operating results,
refer to www.jaguarmining.com or www.sedar.com.
Qualified Person
Wilson Miola, an independent
"qualified person" as such term is defined in National Instrument
43-101, has approved the technical information in this news
release.
About Jaguar
Jaguar is a junior gold producer in Brazil with operations in a prolific
greenstone belt in the state of Minas Gerais and is developing the
Gurupi Project in Northern Brazil
in the state of Maranhão. The Company is actively exploring
and developing additional mineral resources at its approximate
197,000 hectare land base in Brazil. 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, statements related to activities, events or
developments that the Company expects or anticipates will or may
occur in the future, including, without limitation, statements
related to the comprehensive action plan that, it believes, could
lead to an operational turnaround and reduced operating costs and
the comprehensive program of definition/delineation drilling and
accelerated mine development that management believes, is needed at
all three operating mines. Forward-Looking Statements can be
identified by the use of words such as "are expected", "is
forecast", "is targeted", "approximately" 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.
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 the comprehensive action
plan not leading to an operational turnaround and reduced operating
costs and the risk of not being able to fully implement the
comprehensive program of definition/delineation drilling and
accelerated mine development that management believes is needed in
all three mines, 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.
SOURCE Jaguar Mining Inc.