Toronto - Jaguar Mining Inc. ('Jaguar' or the 'Company') (TSX: JAG) today announced financial results for the fourth quarter ('Q4 2019') and year ('FY 2019') ended December 31, 2019.
Q4 2019 Financial Highlights
Gold production increased 18% with 20,029 ounces compared to 17,622 ounces in Q4 2018; Consolidated Cash Operating Costs ('COC') decreased 2% to $780 per ounce; Consolidated All-in Sustaining Costs ('AISC') decreased 3% to $1,239 per ounce; Net Income of $2.7 million; cash generated from operating activities of $9.7 million; Sustaining capital expenditures of $8.5 million invested in development and mining equipment, with free cash flow of $1.2 million; Strong liquidity as at December 31, 2019, with a cash and unsold bullion balance of $11.7 million, as compared to $12.1 million of cash and unsold bullion on September 30, 2019; Paid down 100% of outstanding gold loan to Auramet providing more liquidity to the balance sheet and cash flow for 2020; $1.1 million in finance payments were made in Q4 2019.
FY 2019 Financial Highlights
Gold production remained steady at 74,084 ounces compared to 75,048 ounces in FY 2018; Gross profit increased 9.8% to $23.2 million, reflecting increased average realized gold price per ounce; Sustaining capital expenditures of $31.8 million invested in mining equipment and development; AISC increased 8.4% to $1,349 per ounce, compared to $1,244 for FY2018 due to a 14% increase in sustaining capital; Operating cash flow increased 15% to $24.4 million; adjusted EBITDA increased 17.5% to $24.3 million.
Vern Baker, President and CEO of Jaguar Mining stated: 'During Q4 2019, we continued to improve our production numbers and closed out the year with our best quarter. We are moving forward over time, building a sustainable production platform of 25,000 ounces per quarter. The improvement is reflected in a positive free cash flow for the first quarter since the end of 2017. With the completion of our financial hedges this year, the current trend of gold price, our improving production, and our decreasing AISC, we expect to see consistently stronger financials each quarter this year. In Q4 2019, we were able to clear our debt with Auramet, removing the biggest limiting factor i.e. hedges on our realized gold price. We also delivered on a large portion of our option contracts in 2019 and started 2020 with only 6,700 ounces at $1,363 per ounce in option instruments. Those options were cleared in February 2020, and the company is completely unhedged now.
'Turmalina Gold Mine continues advancing in production and the development of a sustainable operation. While Turmalina finished the full year with only 33,401 ounces, Q4 was the strongest quarter of the year for this mine with 9,773 ounces produced. The Pilar Gold Mine has shown consistent improvement over the past 3 years. In that time frame, Pilar has increased its annual ounce production from 27,000 in 2016 to 41,000 in 2019 and is positioned to produce up to 50,000 in the near future. Our mines continue to improve their production profile with new production areas coming into the sequence, and we expect to see our production continue to improve on a quarterly basis.'
Cash Position and Use of Funds
Cash and unsold bullion balance of $11.7 million, as compared to $12.1 million of cash and unsold bullion on September 30, 2019; The repayment of the Auramet loan provides more liquidity to the balance sheet and cash flow for 2020; the Company's remaining debt of $4.5 million is now comprised of a number of short-term loans from Brazilian banks
As at December 31, 2019, working capital was $9.4 million, compared to a $2.4 million deficit as at December 31, 2018.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 64,000 hectares. The Company's principal operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais and include the Turmalina Gold Mine Complex and Caete Mining Complex (Pilar and Roca Grande Mines, and Caete Plant). The Company also owns the Paciencia Gold Mine Complex, which has been on care and maintenance since 2012. The Roca Grande Mine has been on temporary care and maintenance since April 2019.
Contact:
Vern Baker
Tel: 416-847-1854
Email: vernon.baker@jaguarmining.com
Forward-Looking Statements
Certain statements in this news release constitute 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward-looking statements and information are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking information made in this news release is qualified by the cautionary statements below and those made in our other filings with the securities regulators in Canada. Forward-looking information contained in 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. All statements, other than statements of historical fact, may be considered to be or include forward-looking information. This news release contains forward-looking information regarding, among other things, expected sales, production statistics, ore grades, tonnes milled, recovery rates, cash operating costs, definition/delineation drilling, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, currency fluctuations, capital requirements, project studies, mine life extensions, restarting suspended or disrupted operations, continuous improvement initiatives, and resolution of pending litigation. The Company has made numerous assumptions with respect to forward-looking information contained herein, including, among other things, assumptions about the estimated timeline for the development of its mineral properties; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; political and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the impact of any potential power rationing, tailings facility regulation, exploration and mine operating licenses and permits being obtained and renewed and/or there being adverse amendments to mining or other laws in Brazil and any changes to general business and economic conditions. Forward-looking information involves a number of known and unknown risks and uncertainties, including among others: the risk of Jaguar not meeting the forecast plans regarding its operations and financial performance; uncertainties with respect to the price of gold, labour disruptions, mechanical failures, increase in costs, environmental compliance and change in environmental legislation and regulation, weather delays and increased costs or production delays due to natural disasters, power disruptions, procurement and delivery of parts and supplies to the operations; uncertainties inherent to capital markets in general (including the sometimes volatile valuation of securities and an uncertain ability to raise new capital) and other risks inherent to the gold exploration, development and production industry, which, if incorrect, may cause actual results to differ materially from those anticipated by the Company and described herein. In addition, there are risks and hazards associated with the business of gold exploration, development, mining and production, including environmental hazards, tailings dam failures, industrial accidents and workplace safety problems, unusual or unexpected geological formations, pressures, cave-ins, flooding, chemical spills, procurement fraud and gold bullion thefts and losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Accordingly, readers should not place undue reliance on forward-looking information.
The forward-looking information set forth herein reflects the Company's reasonable expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
JAGUAR MINING INC. 
