Aug 17, 2004
Jaguar Mining Inc. ("Jaguar") (JAG-TSX) reports a net loss for the second quarter period ending June 30, 2004 of US$1.4 million, or US$0.08 per common share. This compares to a loss of US$0.3 million, or US$0.04 per share, in the same period of 2003. Gold sales revenue in the second quarter was US$473,002 versus zero in 2003. The per share calculations for the current quarter and prior year-ago period are based on weighted average shares outstanding for the periods of 18,525,787 and 8,480,000 respectively.
The net loss for the six-month period ending June 30, 2004 was US$2.3 million, or US$0.13 per share, versus a net loss of US$0.4 million, or US$0.05 per share, in the same period of 2003. Gold sales revenue in the first half of 2004 was US$796,000 versus zero in 2003. The per share calculations for the six-month period ending June 30, 2004 and the prior year-ago period are based on weighted average shares outstanding for the periods of 18,525,787 and 8,480,000 respectively.
During the second quarter, Jaguar raised US$5.47 million (net of expenses) through an equity financing. This capital replaced money primarily deployed for exploration and development and allowed for budgeting new acquisitions. Significant components of the net loss for the periods include legal and accounting expenses related to the financing and the company's adoption of accounting standards expensing the fair value of stock options. Stock-based compensation expenses were $666,616 for the second quarter and $807,366 for the six month period.
Jaguar's revenues for the period are derived from gold produced from the Sabará B Mine, which continues to increase production and lower costs after its second full quarter of operation. Jaguar sold 1,198 ounces of gold in the second quarter at an average price of US$395 per ounce. Second quarter production was 2,677 ounces of gold at a direct operating cost of US$362 per ounce. In the first-half of 2004, Jaguar sold 1,998 ounces of gold at an average price of US$398 per ounce and produced 3,836 ounces at a direct operating cost of US$370 per ounce.
Jaguar showed significant progress during the second quarter of 2004 over Q1. Operations improved with the diminishing rains. Mining, ore transport, crushing, stacking and processing tonnage all increased and were close to target by the end of the quarter. Feed grade increased as expected but was lower than planned due to continued mining in the lower grade (heavily oxidized) sections because of weather delays. This led to lower production. However, production was 131% higher than Q1 and appears it will continue to improve in Q3 based on estimated contained gold in the heaps and increasing feed grade at the end of June.
The exploration program returned strong and significant results at the Paciência project, as reported in a press release dated July 26, 2004. The drill program not only confirmed the continuity of the ore body at depth but exceeded expectations with long, high grade intersections, thus expanding the near term potential of the project. Budgets and schedules were for the most part met, with limited delays in obtaining permits and easements.
Equipment procurement continued to receive management's attention and capital resources. Sourcing good used equipment through a variety of methods should lessen the risk of the scheduled production being affected by equipment availability.
Jaguar's unaudited interim financial statements and detailed management discussion and analysis for the six months ending June 30, 2004 are filed on SEDAR and will be available on its corporate website at www.jaguarmining.com.
Gold Producer; Active Exploration Program
Jaguar is a low cost gold producer with 2.5 million ounces of gold resources, of which 1.8 million are measured and indicated. Jaguar is spending US$4.5 million in 2004 and US$4.3 million in 2005 to produce independently reviewed, bankable feasibility studies on its mineral resources. Jaguar is managed by a highly experienced team of mining industry professionals with a track record of proven success. Jaguar directly owns or accesses nearly 2,000 tonnes per day of sulfide and oxide processing capacity. Its 47,500 acre land portfolio is the second largest gold property package in Brazil's Iron Quadrangle.
Jaguar has 20,922,589 common shares outstanding (28,738,979 fully diluted).
For further information, please contact Daniel Titcomb, President on (603) 224-4800 or Robert Jackson, EVP, Corporate Development on (416) 725-4343.