TORONTO, November 25, 2015 /PRNewswire/ --
TSX-V: JAG
(All figures are in US dollars unless
otherwise expressed)
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
For the three For the nine
months ended months ended
($ thousands, except where indicated) September 30, September 30,
2015 2014 2015 2014
Financial Data
Revenue $ 28,126 $ 29,015 $ 79,692 $ 90,596
Cost of sales 21,146 30,040 67,724 90,666
Depreciation (included
in cost of sales) 3,254 7,728 12,891 23,743
Gross margin 6,980 (1,025) 11,968 (70)
Gross margin
(excluding
depreciation)[1] 10,234 6,703 24,859 23,673
Net (loss) income 4,445 (9,491) (12,884) 221,393
Per share ("EPS") 0.04 (0.09) (0.12) 3.36
EBITDA[1] 12,020 2,304 10,374 257,705
Adjusted EBITDA[2] 6,415 1,326 13,757 (4,455)
Sustaining capital expenditures[1] 4,213 7,361 12,540 16,484
Non-sustaining capital expenditures[1] 139 120 389 556
Total Capital Expenditures[3] 4,352 7,481 12,929 17,040
Operating Data
Average realized gold price ($ per ounce)[1] $ 1,118 $ 1,279 $ 1,162 $ 1,278
Gold sold (ounces) 25,160 22,681 68,572 70,864
Gold produced (ounces) 25,235 22,374 67,253 69,600
Definition drilling (meters) 9,094 10,238 29,485 27,772
Cash operating costs (per ounce produced)[1] $ 626 $ 969 $ 736 $ 954
Cash operating costs (per ounce sold)[1] $ 711 $ 984 $ 800 $ 944
All-in sustaining costs (per ounce sold)[1] $ 970 $ 1,494 $ 1,113 $ 1,353
[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.
[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
September 30, December 31,
($ thousands) 2015 2014
Cash and equivalents $ 2,889 $ 7,161
Gold bullion - 1,801
Total cash and gold bullion $ 2,889 $ 8,962
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
2015 Guidance Actual
Low High YTD 2015 Q3 2015
Consolidated
Brazilian Reais vs US
dollar foreign
exchange rate 2.5 2.5 3.2 3.5
Gold production
(ounces) 92,000 92,000 67,253 25,235
Average head grade
(g/t) 3.30 3.75 3.52 3.90
Tonnes Processed 925,000 1,025,000 659,000 223,000
Recovery rate 89% 90% 90% 90%
Cash operating costs
(per ounce
produced)[1] $ 800 $ 900 $ 736 $ 626
All-in sustaining
costs (per ounce
sold)[1] $ 1,100 $ 1,200 1,113 $ 970
Definition/delineation
drilling 34,000 34,000 29,485 9,094
Turmalina
Gold production
(ounces) 36,210 13,994
Average head grade
(g/t) 4.00 4.25 4.08 4.77
Tonnes Processed 475,000 525,000 306,000 101,000
Recovery rate 90% 91% 91% 91%
Cash operating costs
(per ounce
produced)[1] $ 640 $ 700 $ 592 $ 497
All-in sustaining
costs (per ounce
sold)[1] $ 900 $ 1,000 $ 937 $ 866
Definition/delineation
drilling 25,000 25,000 18,843 8,374
Caeté
Gold production
(ounces) 31,043 11,241
Average head grade
(g/t) 2.40 2.90 3.03 3.17
Tonnes Processed 450,000 500,000 353,000 122,000
Recovery rate 89% 90% 89% 89%
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
[1]Cash 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
athttp://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 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.
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 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
months ended September 30, 2015 is set out in the
Company's third quarter 2015 MD&A filed on SEDAR
at http://www.sedar.com.
Derrick Weyrauch, Chief Financial
Officer, +1-416-628-9601, dweyrauch@jaguarmining.com