TORONTO, January 8, 2015 /PRNewswire/ --
(All figures are in US dollars unless
otherwise expressed)
- Achieves annual gold production of 92,057 ounces in 2014
(1,038,000 tonnes at average grade of 3.03 grams per tonne),
meeting 2014 guidance
- Q4 2014 gold production of 22,457 ounces (258,000 tonnes at
average grade of 3.02 grams per tonne)
- Since emergence from CCAA in April
2014, decreased debt by $13.2
million, including repayments and renegotiation of debt
facilities and agreements
- Cash and bullion at December 31,
2014 of approximately $9.1
million, additionally approximately $2.2 million of unsold/unrefined gold was located
at a third-party refiner
- Company targeting to grow production to 92,000 - 102,000 ounces
of gold in 2015
TSX-V: JAG
Jaguar Mining Inc. ("Jaguar" or the "Company") (TSXV: JAG) is
pleased to report annual gold production of 92,057 ounces in 2014
(2013 - 95,595 ounces). A total of 1,038,000 tonnes was processed
in 2014 (2013 - 1,092,000 tonnes) at an average grade of 3.03 grams
per tonne (2013 - 3.07 grams per tonne). Mill recoveries for the
year averaged 89% (2013 - 88%).
For the fourth quarter of 2014, the Company reported gold
production of 22,457 ounces (Q4 2013 - 21,956 ounces). Mill
throughput during the fourth quarter totaled 258,000 tonnes (2,866
tonnes per day) at an average grade of 3.02 grams per tonne with
average mill recoveries of 89%.
George Bee, President and CEO of
Jaguar, commented: "2014 was a year of significant change for
Jaguar as it successfully restructured and recapitalized the
balance sheet, emerged from CCAA while retaining all assets,
changed the executive management team and defined a multi-year
business plan designed to generate free-cash-flow." Mr. Bee also
stated: "2015 will continue to be a year of transition as we
implement new mining methodologies and work to extend mine lives
for our operating assets. Fundamental to our plan is a new focus on
grade control versus filling our mills with low grade, high cost
ore from narrow veins. Our plan is to move to more productive lower
cost mining methods designed to deliver higher grade ore to feed
our mills. In particular, our plans envision production at
Turmalina to increase by more than 50% over the next two years.
Cash and bullion at December 31, 2014
totaled approximately $9.1 million,
additionally approximately $2.2
million of unsold/unrefined gold was located at a
third-party refiner."
Dec 31, Dec 31, Dec 31, Dec 31,
2014 2013 2014 2013
Tonnes milled 258,000 258,000 1,038,000 1,092,000
Recovery (%) 89% 88% 89% 88%
Grade (grams/tonne) 3.02 2.96 3.03 3.07
Gold Ounces
Production 22,456 21,956 92,057 95,595
Sales 21,400 23,503 92,264 94,850
Details of the Company's financial performance, including
capital and operating costs, will be included in its fourth quarter
and full-year 2014 financial results.
2015 Guidance
Consolidated Low High 2014
Au Production (ounces) 92,000 102,000 92,057
Grade milled (grams per tonne) 3.30 3.75 3.03
Tonnes milled 925,000 1,025,000 1,037,972
Au recovery rate 89% 90% 90%
Cash operating costs[(1)] $ 800 $ 900
All-In-Sustaining-Costs[(2)] $ 1,100 $ 1,200
Definition/delineation drilling (m's) 34,000 34,000
Turmalina Mine Low High 2014
Au Production (ounces) 56,000 62,000 47,968
Grade milled (grams per tonne) 4.00 4.25 3.65
Tonnes milled 475,000 525,000 442,119
Au recovery rate 90% 91% 90%
Cash operating costs[(1)] $ 640 $ 700
All-In-Sustaining-Costs[(2)] $ 900 $ 1,000
Definition/delineation drilling (m's) 25,000 25,000
Caete (Pilar and Roca Grande Mines) Low High 2014
Au Production (ounces) 36,000 40,000 44,089
Grade milled (grams per tonne) 2.40 2.90 2.56
Tonnes milled 450,000 500,000 595,853
Au recovery rate 89% 90% 88%
Cash operating costs[(1)] $ 1,075 $ 1,175
All-In-Sustaining-Costs[(2)] $ 1,200 $ 1,300
Definition/delineation drilling (m's) 9,000 9,000
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
http://www.jaguarmining.com.
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 and cash
operating cost per ounce produced to total production costs for the
most recent reporting period, the three and nine months ended
September 30, 2014 and 2013, is set
out in the Company's third quarter 2014 Management Discussion and
Analysis ("MD&A") filed on SEDAR at http://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 and nine months ended September 30, 2014 is set out in the Company's
third quarter 2014 MD&A filed on SEDAR at
http://www.sedar.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 drillin, 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 http://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.
Derrick Weyrauch, Chief Financial
Officer, +1-416-628-9601, dweyrauch@jaguarmining.com