TORONTO, May 25, 2015 /PRNewswire/ --
(All figures are in US dollars unless
otherwise expressed)
TSX-V: JAG
Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG:
TSX-V) today announced its operational and financial
results for the first quarter ended March
31, 2015.
Q1 2015 FINANCIAL & OPERATING HIGHLIGHTS
($ thousands, except where For the three months ended
indicated) March 31,
2015 2014
Financial Data
Revenue $ 28,747 $ 31,100
Cost of sales 20,133 21,337
Gross margin (excluding
depreciation)[1] 8,614 9,763
Net (loss) income (12,946) (15,755)
Per share
("EPS") (0.12) (15.8)
EBITDA[1] (1,510) (1,996)
Adjusted
EBITDA[2] 7,056 2,972
Sustaining capital
expenditures[1] 5,275 3,946
Non-sustaining capital
expenditures[1] 106 378
Total Capital Expenditures[3] 5,381 4,324
Operating Data
Average realized gold price
($ per ounce)[1] $ 1,187 $ 1,286
Gold sold (ounces) 24,228 24,181
Gold produced (ounces) 21,336 23,359
Definition drilling (meters) 8,968 6,471
Cash operating costs (per
ounce produced)[1] $ 808 $ 923
Cash operating costs (per
ounce sold)[1] $ 831 $ 882
All-in sustaining costs (per
ounce sold)[1] $ 1,171 $ 1,221
[1]Average realized gold price, sustaining and non-sustaining capital
expenditures, cash operating costs and all-in sustaining costs, EBITDA and Adjusted
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.
[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
March 31, December 31,
($ thousands) 2015 2014
Cash and equivalents $ 10,258 $ 7,161
Gold bullion - 1,801
Total cash and gold bullion $ 10,258 $ 8,962
Financial Highlights
- Revenues during the first quarter of 2015 were $28.7 million, compared with revenues of
$31.1 million for the corresponding
2014 period;
- The average realized gold price per ounce during the first
quarter of 2015 was $1,187, compared
to $1,286 for the corresponding 2014
period;
- 24,228 ounces of gold were sold during the first quarter of
2015, while 24,181 ounces of gold were sold during the
corresponding 2014 period;
- Adjusted EBITDA for the first quarter of 2015 was $7.1 million compared to $3.0 million for the same period in 2014;
- One of our top priorities in 2014 was to restore the Company's
balance sheet. As part of this action, on April 22, 2014, the Company concluded a series of
actions that (i) extinguished $268.5
million of indebtedness, (ii) obtained interest forgiveness
of $10.5 million, (iii) extended the
repayment terms of its senior secured facility, (iv) concluded a
$50.0 million equity financing and
(v) changed its executive management team;
- Total debt outstanding as at March 31,
2015 was $28.0 million (of
which $14.8 million related to senior
secured facility with Renvest), compared to $31.0 million as at December 31, 2014;
- As at March 31, 2015 the Company
had cash on hand of $10.3 million
($7.1 million as at December 31, 2014);
- In the first quarter of 2015, the Company received a cash
refund of R$16.7 million
(approximately $6.0 million) in
respect of Federal VAT input tax credits for years 2009 through
2011, for its Mineração Turmalina Ltda. ("MTL") operating
subsidiary. In 2014, the Company had initiated procedures to obtain
approval and/or refund for a total amount of R$29.1 million of input tax credits. Following an
extensive audit process by the tax authorities, 81.6% of the input
tax credits were approved for refund. 29.7% of the approved amount
was applied as a credit to reduce other federal taxes payable for
prior years, while the remaining claim was refunded in cash;
- During the quarter, the Company announced its intention to
issue up to $20.0 million principal
amount of Debentures on a non-brokered private placement basis (the
"Offering"). On May 4, 2015, the
Company announced amendment of certain terms and conditions of the
Offering. The conversion price of the convertible debentures was
adjusted to C$0.25 per share and the
maturity period to 2 years.
Operational Highlights
Production
- The Company produced 21,336 ounces of gold in the first quarter
of 2015, compared to 23,359 ounces in the corresponding 2014
period:
- Turmalina produced 11,796 ounces of gold in the first quarter
of 2015, compared to 11,374 ounces in the corresponding 2014
period,
- Caeté produced 9,540 ounces of gold in in the first quarter of
2015, compared to 11,985 in ounces in the corresponding 2014
period,
- A total of 226,000 tonnes was processed in the first quarter of
2015 (first quarter of 2014: 268,000 tonnes) at an average head
grade of 3.3 grams per tonne (first quarter of 2014 - 2.9 grams per
tonne):
- Turmalina processed 111,000 tonnes (first quarter of 2014:
111,000 tonnes) at an average head grade of 3.6 grams per ton
(first quarter of 2014: 3.2 grams per tonne)
- Caeté processed 115,000 tonnes (first quarter of 2014: 157,000
tonnes) at an average head grade of 3.2 grams per ton (first
quarter of 2014: 2.7 grams per tonne)
- Consistent with our efforts to decrease production costs,
tonnes mined decreased in the first quarter of 2015 by 16% compared
to the same period in 2014, while the average head grade milled
increased by 14%.
- For the first quarter of 2015, the average gold recovery rate
was 89%, compared to 88% for the comparable 2014 period.
Cash Operating Costs, Capital Expenditures and
All-in-sustaining Costs
- During first quarter of 2015, cash operating costs per ounce of
gold produced were $808 compared to
$923 during the same period in 2014,
a decrease of $115 per ounce or 12%.
The cost decrease was primarily due to improvement in average grade
milled, lower tonnes processed and favorable foreign exchange
movements as a result of devaluation of the Brazilian Reais
(average exchange rate: Q1 2015: R$2.87 per US$ compared to Q1 2014: R$2.37 per US$). These favorable cost variances
were partially offset by higher costs of preventive maintenance of
mining equipment.
- In the first quarter of 2015, sustaining capital expenditures
were up by $1.3 million or 33% at
$5.2 million compared to $3.9 million during the corresponding period in
2014, primarily due to higher capitalized brownfield exploration at
Pilar mine and major rebuilds for machinery and equipment.
- During the first quarter of 2015, all-in sustaining costs per
ounce sold (AISC) were $1,171
compared to $1,221 per ounce during
for the corresponding 2014 period, a decrease of $50 per ounce or 4%. The decrease in AISC's
during the first quarter of 2015 as compared to same period in 2014
is due to a reduction in general and administrative expenditures by
$1.7 million, which was partially
offset by $1.3 million of increased
capital expenditures, as noted above.
George Bee, President and Chief
Executive Officer of Jaguar commented "In Q1 2015, we continued to
pay down debt, our brownfield exploration program confirmed better
grades and high value material ahead of mining, and we progressed
with the turnaround of our active mining operations. Despite weaker
gold prices and short term production interruptions at Turmalina,
our cash operating cost per ounce performance improved and we
continue implementing the changes that will lead to sustained
profitability and free-cash-flow."
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 http://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 March 31, 2015 is set out
in the Company's first 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 March 31, 2015 is set out in the Company's
first quarter 2015 MD&A filed on SEDAR
at http://www.sedar.com.
Derrick Weyrauch, Chief Financial
Officer, +1-416-628-9601, dweyrauch@jaguarmining.com