TSX-V: JAG
- 19,184 ounces of gold were sold in Q2 2015, compared to 24,002
ounces in Q2 2014
- 20,682 ounces of gold were produced in Q2 2015, compared to
23,867 ounces in Q2 2014
- Turmalina produced 10,420 ounces of gold in Q2 2015 compared to
13,190 ounces in Q2 2014
- Caeté produced 10,262 ounces of gold in Q2 2015 compared to
10,677 in Q2 2014
- Jaguar maintains but guides to the lower half of its 2015
annual gold production guidance of 92,000 to 102,000 ounces
- Cash and bullion at June 30, 2015
of approximately $6.8 million,
including approximately $1.9 million
of unsold refined gold
All Dollar amounts are in thousands of U.S.
dollars unless stated otherwise
TORONTO, July 14, 2015 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX-V: JAG) reported gold production
of 20,682 ounces in Q2 2015 (Q2 2014 – 23,867 ounces).
210,000 tonnes of ore were processed in Q2 2015 (Q2 2014 – 263,000
tonnes) at an average grade of 3.4 grams per tonne (Q2 2014 – 3.11
grams per tonne).
The tonnes milled decreased in Q2 2015 by 20% compared to Q2
2014 primarily due to the sequencing of mining activities, where
higher grade wider zones were unavailable in Q2 2015, and due to a
scheduled mill maintenance shutdown at the Turmalina mine.
The average grade milled increased by 9% compared to Q2 2014,
mainly due to better mined grades at the Pilar Mine. Mill
recoveries for the quarter averaged 90% (Q2 2014 - 88%).
|
|
|
Production
|
Q2
2015
|
Q2
2014
|
|
Turmalina
|
Caeté
|
Total
|
Turmalina
|
Caeté
|
Total
|
Tonnes
milled
|
94,000
|
116,000
|
210,000
|
107,000
|
156,000
|
263,000
|
Recovery
|
90%
|
90%
|
90%
|
88%
|
88%
|
88%
|
Head grade
(grams/tonne)
|
3.9
|
3.0
|
3.4
|
4.1
|
2.4
|
3.1
|
Gold
ounces:
|
|
|
|
|
|
|
|
Produced
|
10,420
|
10,262
|
20,682
|
13,190
|
10,677
|
23,867
|
|
Sold
|
9,610
|
9,574
|
19,184
|
13,481
|
10,521
|
24,002
|
Exploration and
definition drilling (meters)
|
6,104
|
5,312
|
11,416
|
4,739
|
5,382
|
10,121
|
Average realized gold
price (US$/ounce)
|
|
|
1,189
|
|
|
1,280
|
Commenting on Q2 2015 production results, George Bee, President and CEO of Jaguar, stated:
"Production in terms of both grade and tonnage was lower than
anticipated during Q2 2015 at the Turmalina Mine, as a consequence
of ground conditions and delays in accessing key high grade areas.
Corrective action has been taken, which includes the addition of
shotcrete in the affected areas allowing programmed mining to
resume. We plan to be back on track and mine the affected areas in
H2 2015.
The Pilar mine continues to perform at or above plan, while
our targeted exploration program to extend the three main ore
shoots has successfully intercepted wide zones of high grade
mineralization. We are currently developing mine plans to
assess the economics related to restarting both primary and
secondary development activities at Pilar. We plan on
finalizing our assessment during Q3 2015.
We maintain our gold production guidance of 92,000-102,000
ounces for 2015, but guide to the lower half of the range."
Details of the Company's financial performance, including
capital and operating costs, will be included in its second quarter
2015 financial results.
Financing Update
The Company has not closed its previously announced offering of
senior secured convertible debentures (see Jaguar's news release
dated June 2, 2015) and continues to
be in active discussions with multiple parties, including it's
senior lenders, regarding financing and strategic alternatives.
Operationally, the Company continues to execute on its 2015
business plan, which is considered to be a pivotal strategy to
profitability.
By way of a corporate update on the business and financing plan,
the following key factors have affected the Company thus far in
2015:
- Devaluation of the Brazilian Real in relation to the US
dollar,
- Better than expected performance from the Pilar Mine,
- Delayed extraction of higher grades from the Turmalina Mine
until H2 2015,
- Success in recovering taxes from both Federal and Provincial
governments,
In light of these developments, the Company will continue to
review its needs and alternatives with respect to cash expenditures
and operational activities, all in the context of what financing or
strategic alternatives may be available, if any.
|
|
|
Cash and gold
bullion, as at
|
June 30,
2015
|
December 31,
2014
|
Cash
|
|
|
4,776
|
|
|
7,161
|
Gold
bullion
|
|
|
2,063
|
|
|
1,801
|
Total cash and gold
bullion
|
|
|
6,839
|
|
|
8,962
|
During Q2 2015, the Company repaid $3
million of principal on its senior secured credit facility,
while on a year-to-date basis, the Company repaid $6 million.
Since July 2014, the Company has
been successful in significantly reducing its financial leverage
and has repaid US$12 million of
senior secured indebtedness resulting in an outstanding balance of
US$8.4 million as at June 30, 2015.
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 approximately 197,000-hectares.
Additional information is available on the Company's website at
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 and operational
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 and operational outlooks and such variation
may be material. Jaguar and its management believe that the
financial and operational 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
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.
SOURCE Jaguar Mining Inc.