Jaguar Mining Inc. ('Jaguar' or the 'Company') (TSX: JAG), (OTCQX: JAGGF) today announced financial results for the first quarter ('Q1 2023') ended March 31, 2023.
First Quarter Highlights
Revenue increased 17% to $35.8 million compared with $30.6 million in the first quarter of 2022, due to an increase in ounces produced which resulted in higher ounces sold of 19,008 ounces as compared to 16,507 ounces in the first quarter of 2022, combined with an increase in the average realized gold price of $1,886 per ounce compared to $1,855 per ounce in the first quarter of 2022.
Gold production increased by 9% to 18,156 ounces, compared to 16,663 ounces in the first quarter of 2022, reflecting an increase of 12% in tonnes of ore processed, partially offset by 3% decrease in the average recovery rate.
Operating costs totaled $20.6 million, an increase of 5% compared to $19.6 million in the first quarter of 2022. The increase in operating costs were predominantly the result of the increase in ounces of gold produced compared to the first quarter of 2022.
Cash operating costs-1 decreased 9% to $1,084 per ounce of gold sold compared to $1,188 per ounce of gold sold in the first quarter of 2022 due to the increase in ounces of gold sold, partially offset by 5% increase in operating costs.
All-in sustaining costs-1 decreased to $1,575 per ounce of gold sold, compared to $1,680 in the first quarter of 2022 due to the cash cost decrease as explained above, partially offset by higher sustaining capital expenditures resulting from a 41% increase in primary development in the quarter of 1,259 metres compared to 895 metres in the first quarter of 2022.
Net income for Q1 2023 increased to $2.5 million, compared with a net loss of $6 million in Q1 2022. Major variances included a $5.2 million increase in revenue, a $3.6 million reduction on foreign exchange loss, a $0.5 million income tax expense reduction and a $0.2 million reduction on other operating expenses, offset by $1 million increase in operating costs.
Free cash flow-1 in the first quarter of 2023 was $3.3 million and was based on operating cash flow plus asset retirement obligation expenditures, less capital expenditures, compared to $2.7 million in the first quarter of 2022. Free cash flow was $176 per ounce of gold sold compared to $161 in the first quarter of 2022.
This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-GAAP Performance Measures section of the MD&A.
Cash Position and Working Capital1
As of March 31, 2023, the Company had a cash and cash equivalents position of $25.8 million, compared to $25.2 million on December 31, 2022.
As of March 31, 2023, working capital was $20.7 million, compared to $19.5 million on December 31, 2022, which includes $3 million in short term loans from Brazilian banks.
Vern Baker, President and CEO of Jaguar Mining stated: 'We are pleased to report our first quarter production results which improved year-over-year as did our financial performance. Both the Pilar and Turmalina mines produced more ounces this quarter compared to the first quarter of 2022. The increase in production at Pilar was the result of an improvement in head grade with the same tonnage. The increase in production at Turmalina was the result of a significant increase in tonnes (+25%) while experiencing a lower grade cycle within the mine. We were also able to lower our All-In-Sustaining-Costs per ounce despite the additional tonnage and increased development work.
During the quarter, development efforts increased at both mines. At Turmalina we completed 1,780 meters of (an increase of 11%) and at Pilar we completed 1,100 meters (an increase of 8%). Development at our Faina project continued throughout the quarter with ongoing work on engineering and planning. We expect to access the Faina resource zone by the fourth quarter and to see development within the resource towards the end of the year and for the full year in 2024.
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. 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. Additional information is available on the Company's website at www.jaguarmining.com.
Contact:
Tel: 416-847-1854
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.
For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company's most recent Annual Information Form and Management's Discussion and Analysis, as well as other public disclosure documents that can be accessed under the issuer profile of 'Jaguar Mining Inc.' on SEDAR at www.sedar.com. 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. 
