CONCORD, NH, Mar 21, 2011 (Canada NewsWire via COMTEX) --
JAG - TSX/NYSE
Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE) reports its financial and operational results for the period ended December 31, 2010. The Company is also providing the date it intends to issue its preliminary Q1 2011 operating results and progress within this release. All figures are in U.S. dollars unless otherwise indicated.
FY 2010 Highlights
-- Revenue of $170.8 million, an increase of 21% over 2009. -- Net loss of $23.8 million or ($0.28) per basic and fully diluted share for the year ended December 31, 2010 compared to a net loss of $8 million or ($0.10) per basic and fully diluted share for the same period in 2009. Adjusted net loss, excluding special non-operating and non-recurring charges, totaled $12.2 million or ($0.15) per share (See Non-GAAP Performance Measures). -- Gross profit of $12.4 million, a decrease of 71% from 2009, largely due to higher operating costs caused by the stronger Brazilian real and geo-mechanical operational issues at Jaguar's Turmalina mining operation. -- Gold production of 137,867 ounces at an average cash operating cost of $732 per ounce compared to 148,742 ounces at an average cash operating cost of $462 per ounce during 2009 (see Non-GAAP Performance Measures). The primary reason for the decline in production was primarily attributable to the geo-mechanical problems at the Turmalina Mine during the second half of 2010. The SabarÃ¡ operation has been excluded from the 2009 figures as it was placed on long-term care and maintenance during the second half of 2009. -- Cash generated by operating activities totaled $19.6 million, a decrease of 39% from 2009. -- Investments of $131.9 million in growth projects, an increase of 54% from 2009. -- As of December 31, 2010, the Company held cash, cash equivalents and short-term investments of approximately $39.2 million. On February 9, 2011, the Company closed a $103.5 million private offering of convertible notes that increased its cash and short term investments to $119.5 million as of February 28, 2011. -- Achieved underground development targets by completing 18.8 kilometers of development. -- Commissioned the CaetÃ(c) operation, Jaguar's third integrated mining-processing facility.
Q4 2010 Highlights
-- Revenue of $44.6 million, an increase of 13% over 2009. -- Net loss of $9.5 million or ($0.11) per basic and fully diluted share compared to a net loss of $29.4 million or ($0.36) per basic and fully diluted share in Q4 2009. Adjusted net loss, excluding special non-operating and non-recurring charges, totaled $6.4 million or ($0.08) per basic and fully diluted share compared to a Q4 2009 adjusted net loss of $3.7 million or ($0.05) per basic and fully diluted share in Q4 2009. (See Non-GAAP Performance Measures). -- Gross profit of $2.8 million, a decrease of 73% from Q4 2009. -- Gold production of 34,682 ounces at an average cash operating cost of $762 per ounce compared to 39,891 ounces at an average cash operating cost of $539 per ounce in Q4 2009 (see Non-GAAP Performance Measures). The decrease in production from the prior year was largely attributable to management's decision to halt ore production in the Turmalina Ore Body A due to geo-mechanical issues during the quarter and divert efforts to forward development. -- Cash generated by operating activities totaled $24,000, a decrease of 98% from Q4 2009. Cash flow from operations, excluding changes in non-cash operating working capital, totaled approximately $3 million in Q4 2010 (see Non-GAAP Performance Measures). -- Investments of $22.6 million in growth projects in Q4 2010, a decrease of 31% from Q4 2009.
Commenting on the 2010 performance, Daniel R. Titcomb, Jaguar's President and CEO stated, "We faced a challenging year at our Turmalina and Paciência operations where both production and cash operating costs were adversely affected. Over the past eight months, our operating teams have worked diligently to improve these operations into healthier, more productive and sustainable mines. Turmalina required a change in the mining method, which we completed in early-2011. At each of our underground mines we have significantly increased the backfill systems and development of the infrastructure, adding more stopes and faces which adds to our flexibility. Through this effort, we now have between 10 and 18 months of fully developed reserves, ready for mining to support our 2011 production target. Our progress is in part tied to recent management changes implemented in the operations. We expect significant improvements as we move through 2011. As important, the successful commissioning of our new Caeté operation, the third such integrated mining complex we have built, should represent a significant source of gold production and a platform for further growth for years to come."
Summary of Key Operating Results
The following is a summary of key operating results.
Three Months Ended Year Ended December 31 December 31 2010 2009 2010 2009 (unaudited) ($ in 000s, except per share amounts) Gold sales $ $ 39,497 $ 170,788 $ 140,734 44,554 Ounces sold 140,530 143,698 34,134 35,944 Average sales price 1,306 1,099 1,215 979 $ / ounce Gross 12,420 42,583 profit 2,777 10,363 Net income (9,474) (23,792) (7,992) (loss) (29,381) Basic income (loss) per (0.11) (0.36) (0.28) (0.10) share Diluted income (loss) per (0.11) (0.36) (0.28) (0.10) share Weighted avg. # of shares 84,259,191 80,738,919 84,152,914 76,410,916 outstanding - basic Weighted avg. # of shares 84,259,191 80,738,919 84,152,914 76,410,916 outstanding - diluted
Additional details are available in the Company's filings on SEDAR and EDGAR, including Management's Discussion and Analysis of Financial Condition and Results of Operations and Consolidated Financial Statements for the year ended December 31, 2010.
Q1 2011 Update of Operations
The Company intends to provide an update of its preliminary Q1 2011 operating results on Tuesday, April 19, 2011. In aggregate, the Company expects to produce between 38,000 and 40,000 ounces of gold for the quarter ending March 31, 2011. The first quarter results are consistent with the initiatives the Company implemented during the second half of 2010 and its 2011 target of between 195,000 and 205,000 ounces.
Non-GAAP Performance Measures
The Company has included the non-GAAP performance measures discussed below in this press release. These non-GAAP performance measures do not have any standardized meaning prescribed by Canadian GAAP ("GAAP") and, therefore, may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, these non-GAAP measures provide investors with additional information that will better enable them to evaluate the Company's performance. Accordingly, these Non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
The Company has included cash operating cost per tonne processed, cash operating cost per ounce produced and cash operating margin per ounce because it believes these figures are a useful indicator of a mine's performance as they provide: (i) a measure of the mine's cash margin per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the mine matures; and (iii) an internal benchmark of performance to allow for comparison against other mines. Additionally, the Company has provided adjusted net income, which reflects the elimination of special non-operating and certain non-recurring charges that do not reflect on-going costs in Jaguar's operations or administrative costs; and cash flow from operations, which does not reflect the change in non-cash operating working capital. The definitions for these performance measures and reconciliation of the non-GAAP measures to reported GAAP measures are set out in the following tables.
Adjusted Net Loss A Non-GAAP Measure ($000s except per share amounts) Three Months Ended Year Ended December 31, 2010 December 31, 2010 Net (loss) as reported $ (9,474) $ (23,792) Adjustments: Non-cash interest expense 2,074 8,098 Additional depletion on - 1,800 unconverted resources Loss on forward 686 686 derivatives Loss on sale of SabarÃ¡ - 677 inventory Write-down of SabarÃ¡ 313 313 operation Adjusted net income $ (6,401) $ (12,218) (loss) Adjusted EPS $ (0.08) $ (0.15) Cash Flow From Operations Non GAAP Measure Three Months $ in thousands (except Ended Year Ended per share amounts) December 31, 2010 December 31, 2010 Cash provided by operating activities as reported Net income (loss) $ (9,474) $ (23,792) Items not involving cash: Unrealized foreign (203) (151) exchange (gain) loss Stock-based 1,109 (1,571) compensation Non-cash interest 2,074 8,098 expense Accretion expense 520 1,697 Future income taxes (981) 172 Depletion and 10,746 39,322 amortization Write down on Sabara 313 313 property Unrealized (gain) loss on forward sales (1,502) - derivatives Unrealized (gain) loss on foreign exchange contracts 509 1,111 Disposition of - (4,625) property Accretion of (94) (188) interest revenue Reclamation expenditure (51) (1,662) Cash provided by operating activities before change in non cash operating working capital 2,966 18,724 Cash provided by operating activities $ 0.04 $ 0.22 per share Cash Operating Margin per Three Months oz of gold Ended Year Ended December 31, 2010 December 31, 2010 Average sales price per $ 1,306 $ 1,215 oz of gold less Cash operating cost per 762 732 oz of gold produced equals Cash operating margin per $ 544 $ 483 oz of gold
The following tables set forth certain operating data for Turmalina, Paciência and Caeté for the three and twelve months ended December 31, 2010 and 2009.
Quarter Ended December 31, 2010 Operating Data Ore Feed Plant Cash Cash Processed grade Recovery Production Operating Operating (t 000) (g/t) rate (ounces) cost/t cost/ounce Turmalina 88% 10,275 $ 66.70 $ 899 143 2.89 PaciÃªncia 94% 13,808 135 3.57 61.80 628 CaetÃ(c) 88% 10,599 156 2.84 63.40 804 Total 92% 34,682 $ 64.00 $ 762 434 3.09 Year Ended December 31, 2010 Operating Data Ore Feed Plant Cash Cash Processed grade Recovery Production Operating Operating (t 000) (g/t) rate (ounces) cost/t cost/ounce Turmalina 87% 59,481 $ 64.50 $ 774 692 3.20 PaciÃªncia 93% 59,287 626 3.32 60.90 670 CaetÃ(c) 91% 19,099 258 2.85 63.10 792 Total 90% 137,867 $ 62.80 $ 732 1,576 3.19 Quarter Ended December 31, 2009 Operating Data Ore Feed Plant Cash Cash Processed grade Recovery Production Operating Operating (t 000) (g/t) rate (ounces) cost/t cost/ounce Turmalina 89% 21,184 $ 63.00 $ 523 179 3.93 PaciÃªncia 93% 18,707 178 3.41 59.30 556 CaetÃ(c) - - - - - - Total 91% 39,891 $ 61.20 $ 539 357 3.67 Year Ended December 31, 2009 Operating Data Ore Feed Plant Cash Cash Processed grade Recovery Production Operating Operating (t 000) (g/t) rate (ounces) cost/t cost/ounce Turmalina 89% 82,071 $ 59.60 $ 424 588 4.81 PaciÃªncia 93% 66,671 646 3.42 51.20 502 CaetÃ(c) - - - - - - Total 91% 148,742 $ 55.50 $ 462 1,234 4.14
The following tables are included in Jaguar's audited financial statements as filed on SEDAR and EDGAR. Readers should refer to those filings for the associated footnotes which are an integral part of the tables.
JAGUAR MINING INC. Consolidated Balance Sheet (Expressed in thousands of U.S. dollars) December 31, December 31, 2010 2009 Assets Current assets: Cash and cash $ 39,223 $ 121,256 equivalents Inventory 31,495 36,986 Prepaid expenses and 24,523 19,050 sundry assets Unrealized foreign 168 1,280 exchange gains 95,409 178,572 Prepaid expenses and 48,582 35,837 sundry assets Net smelter royalty 1,006 1,006 Restricted cash 908 108 Property, plant and 343,363 205,329 equipment Mineral exploration 90,008 129,743 projects $ 579,276 $ 550,595 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and $ 27,853 $ 22,892 accrued liabilities Notes payable 26,130 5,366 Income taxes payable 16,677 15,641 Asset retirement 2,167 510 obligations Deferred compensation 2,436 - liability Other liabilities 704 - 75,967 44,409 Notes payable 141,766 126,784 Future income taxes 12,558 11,821 Asset retirement 19,462 12,331 obligations Deferred compensation 3,816 8,616 liability Other liabilities 497 738 Total liabilities 254,066 204,699 Shareholders' equity Common shares 369,747 365,667 Stock options 13,054 14,762 Contributed surplus 42,762 42,028 Deficit (100,353) (76,561) 325,210 345,896 Commitments Subsequent events $ 579,276 $ 550,595 JAGUAR MINING INC. Consolidated Statements of Operations and Comprehensive Loss (Expressed in thousands of U.S. dollars, except per share amounts) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2010 2009 2008 Gold sales $ 170,788 $ 140,734 $ 93,657 Production costs (119,124) (74,287) (53,610) Stock-based compensation (482) (600) (24) Depletion and (38,762) (23,264) (12,669) amortization Gross profit 12,420 42,583 27,354 Operating expenses: Exploration 3,553 3,079 3,536 Stock-based (2,053) 10,644 1,238 compensation Administration 20,600 16,411 12,571 Management 1,131 1,604 854 fees Amortization 560 452 264 Accretion 1,697 786 490 expense Other 5,051 2,440 379 Total operating 30,539 35,416 19,332 expenses Income (loss) before the (18,119) 7,167 8,022 following Loss on forward 686 318 derivatives - Loss (gain) on forward foreign exchange derivatives (1,391) (2,642) 2,623 Foreign exchange (1,697) (17,307) (2,477) gain Interest expense 16,638 28,847 11,584 Interest income (3,870) (4,203) (3,850) Gain on disposition of (6,794) (2,043) (452) property Write down on 313 3,522 SabarÃ¡ property - Other non-operating - 145 - expenses Total other 3,885 6,319 7,746 expenses Income (loss) before income (22,004) 848 276 taxes Income taxes Current income 1,616 4,979 6,172 taxes Future income taxes 172 3,861 (1,640) (recovered) Total income 1,788 8,840 4,532 taxes Net loss and comprehensive (23,792) (7,992) (4,256) loss for the year JAGUAR MINING INC. Consolidated Statements of Cash Flows (Expressed in thousands of U.S. dollars) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2010 2009 2008 Cash provided by (used in): Operating activities: Net loss and comprehensive $ (23,792) $ (7,992) $ (4,256) loss for the year Items not involving cash: Unrealized foreign (151) (3,227) (3,471) exchange gain Stock-based (1,571) 7,962 1,262 compensation Non-cash interest 8,098 15,320 1,982 expense Accretion of interest (188) - - revenue Accretion 1,697 786 490 expense Future income taxes 172 3,861 (1,640) (recovered) Depletion and 39,322 23,716 12,933 amortization Write down on SabarÃ¡ 313 3,522 - property Amortization of net 219 smelter - - royalty Unrealized loss (gain) on foreign 1,111 (3,701) 4,102 exchange contracts Gain on disposition (4,625) - - of property Reclamation (1,662) (328) expenditure - Change in non-cash operating working capital Inventory 8,064 (11,106) (4,361) Prepaid expenses and (12,607) (13,612) (14,200) sundry assets Accounts payable and 4,960 9,707 423 accrued liabilities Current taxes 1,036 7,015 5,107 payable Deferred compensation (546) - - liabilities 19,631 31,923 (1,410) Financing activities: Issuance of common shares, special warrants and warrants, net 2,895 114,294 105,803 Shares purchased for - - (6,381) cancellation Settlement of forward - - (14,500) derivatives Decrease (increase) in (800) 2,998 restricted (4) cash Repayment of (4,158) (84,614) (18,654) debt Increase in 31,099 118,204 3,848 debt Other long term 463 738 - liabilities 29,499 151,620 70,112 Investing activities Mineral exploration (29,275) (25,200) (37,087) projects Purchase of property, (102,089) (60,300) (52,210) plant and equipment Proceeds from disposition of 1,250 - - property (130,114) (85,500) (89,297) Effect of foreign exchange on non-U.S. dollar (1,049) 2,653 (4,556) denominated cash and cash equivalents Increase (decrease) in cash (82,033) 100,696 (25,151) and cash equivalents Cash and cash equivalents, 121,256 20,560 45,711 beginning of year Cash and cash equivalents, end $ 39,223 $ 121,256 $ 20,560 of year
Conference Call Details
The Company will hold a conference call tomorrow, March 22 at 10:00 a.m. EDT, to discuss the results.
From North America: 800-392-9307 International: 213-416-2192 Replay: From North 800-675-9924 America: 213-416-2185 International: 32211 Replay ID: www.jaguarmining.com Webcast:
A presentation will be available prior to the call on the Company's homepage at www.jaguarmining.com.
About Jaguar Mining
Jaguar is a junior gold producer in Brazil with operations in a prolific greenstone belt in the state of Minas Gerais and is developing the Gurupi Project in northern Brazil in the state of Maranhão. Based on its development plans, Jaguar is one of the fastest growing gold producers in Brazil. The Company is actively exploring and developing additional mineral resources at its approximate 256,300-hectare land base in Brazil. Additional information is available on the Company's website at www.jaguarmining.com.
Forward Looking Statements This press release contains a forward-looking statement, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, concerning the Company's belief that Caeté should represent a significant source of gold production for years to come. 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.
These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating gold prices and monetary exchange rates, the possibility of project cost delays and overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to production rates, timing of production and the cash and total costs of production, changes in applicable laws including laws related to mining development, environmental protection, and the protection of the health and safety of mine workers, the availability of labor and equipment, the possibility of labor strikes and work stoppages and changes in general economic conditions. 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 information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
This forward-looking statements represents our view as of the date of discussion. The Company anticipates that subsequent events and developments may cause the Company's views to change. 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. For a discussion of important factors affecting the Company, including fluctuations in the price of gold and exchange rates, uncertainty in the calculation of mineral resources, competition, uncertainty concerning geological conditions and governmental regulations and assumptions underlying the Company's forward-looking statements, see the "CAUTIONARY NOTE" regarding forward-looking statements and "RISK FACTORS" in the Company's Annual Information Form for the year ended December 31, 2010 filed on System for Electronic Document Analysis and Retrieval and available at http://www.sedar.com and the Company's Annual Report on Form 40-F for the year ended December 31, 2010 filed with the United States Securities and Exchange Commission and available at www.sec.gov.