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Jaguar Mining announces Q3 2018 financial results

Mining News - Published on Fri, 16 Nov 2018

Image Source: SteelGuru
Jaguar Mining Inc announced financial results for the Q3 2018 and nine months ended September 30, 2018. The Company also announces Richard Falconer has stepped down as Chairman of the Board and Thomas Weng, current Director, has been named Chairman. Mr. Falconer will continue to serve on the Board at least until the Company's Annual General Meeting in 2019.

Q3 2018 Financial Highlights
Gold production of 20,320 ounces on record production at Pilar Gold Mine ("Pilar") and higher feed grades;
Lower costs and increase in production quarter over quarter drive 90% increase in gross profit to $7.7 million;
Consolidated cash operating costs ("COC") reduced by 22% to $627 per ounce of gold sold. Pilar achieves record low cash costs of $557 per ounce sold;
Consolidated all-in sustaining costs ("AISC") improved 2.2% to $1,142 per ounce of gold;
Net income of $2.2 million, or $0.01 earnings per share, from a Net loss of $7.7 million or net loss per share of ($0.02) year-over-year.

9M 2018 Financial Highlights
Gold production of 58,004 ounces, including record year to date gold production at Pilar;
COC of $713 per ounce, in line with full-year 2018 guidance, and 18% lower than 9M 2017;
AISC of $1,233 per ounce, 1.3% improvement from 9M 2017;
Operating cash flow increases 67% to $16 million; adjusted EBITDA increased 41% to $19.8 million;
Net loss of $0.9 million reduced from a net loss of $18.9 million in 9M 2017;
Sustaining capital expenditures increased 41% to $21.5 million investing in development and mining equipment.

Ben Guenther, Interim President and Chief Executive Officer commented, "Third quarter gold production of 20,320 ounces marked an 8% improvement relative to the first and second quarters in 2018. Pilar and Turmalina achieved their best production quarter of the year with Pilar producing a new quarterly record 11,068 ounces followed by Turmalina producing more than 9,000 ounces. Pilar continues to advance on its exciting growth path, while Turmalina has begun its turnaround. We remain pleased with the strong performance demonstrated at Pilar to date in 2018 and we are encouraged to see its grade profile continue to increase while also contributing to the record low costs. The Turmalina team is new and we expect it to take a few quarters of stabilization before we see significant sustainable improvements. In addition to our new VP of Operations, Turmalina has further strengthened its team with a new General Manager, new Managers of Mining, Technical Services, and Maintenance personnel over the past few months. The progress we have made to reduce company-wide expenses has been key to ensuring we continue to generate operating cash flow. Cost reduction remains a top priority within operations and at the corporate and board level."

Richard Falconer, Director, Jaguar Mining commented: "I have decided to retire as Chairman and continue to serve on the board until the next AGM. I appreciate Thomas Weng stepping in as Jaguar's new Chairman. With his leadership and deep expertise in the Company that he has gained during his tenure as a Jaguar Board member, I am confident in the outlook for the Company and look forward to its return to future growth and success."

Mr Thomas Weng, Chairman of the Board of Directors commented: "On behalf of the Board, we thank Richard for his service and many contributions to Jaguar's Board of Directors over the past six years."

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Posted By : Rabi Wangkhem on Fri, 16 Nov 2018
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