Jaguar Mining

Website: www.jaguarmining.com
Primary ticker: TSX:JAG; OTC:JAGGF
Stage of development: Production
Commodity: Gold
Project to promote: Turmalina and Pilar Gold Mines
Project location: Brazil
Company presentation: Click here

Live financials

Cash: USD$15.6M
Debt: USD$4.4M

Major shareholders:
Eric Sprott – 48.9%
Sprott Asset Mgmt – 13.3%
Wolverine Asset Mgmt – 6.8%
Orrell Capital Mgmt – 2.7%
Others – 21.1%
Management Ownership – 1.5%

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 covering an area of approximately 64,000 hectares. 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 Caeté Gold Mine Complex. The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. Additional information is available on the Company’s website at www.jaguarmining.com.

Management Profile

Vernon Baker, CEO

Mr. Baker brings over 35 years of mining industry experience. He has extensive management and operations expertise at globally focused mid-tier and senior mining companies. Most recently, he was General Manager at Goldcorp’s Cerro Negro Mine in Argentina, overseeing 3,000 tonnes per day of high-grade production and implementing programs to reduce costs, grow production and development, and leading strong safety improvement to achieve an AIFR of 0.28 in 2017. Previously, Mr. Baker held management and senior leadership roles with various mining companies including President at Duluth Metals Limited, Vice President of Operations at FNX Mining, General Manager at Barrick Goldstrike Mines Inc., and General Manager of Hemlo Operations, a Joint Venture of Teck Cominco and Barrick Gold.


What is your rationale for attending 121 Mining Investment?

Management has been working to turnaround the Brazilian assets for the past two years. We want to showcase the turnaround, the highlight the continued future growth in production, with the lower operating cost base.


What recent news would you like to highlight to investors attending?

Apr 20/20 – Jaguar Reports Updated 2029 MRMR for Turmalina Mine
Apr 13/20 – Jaguar Reports 21,008 Gold Ounces Produced in First Quarter
Mar 30/20 – Jaguar Report Fourth Qtr and Full year 2019 Financial Results


What are your key goals for the next 3, 6 and 12 months?

3 Months:

Gradually increase production quarter over quarter, with focus on generating free cash flow while expanding the current reserves and resource package.

6 Months:

Expand production from current producing assets to their full potential and reaching 100,000 oz annual production target.

12 Months:

Bringing additional satellite deposits and the mines on care & maintenance into operation, with the aim to further increase consolidated production of the Company towards a future goal of 120,000 oz per year.


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

COVID-19 and government’s actions.


What do you think makes your company such a compelling investment?

Record high gold price in local Brazilian Real of R$9000 per oz, generating a 50% margin over AISC.

Analyst Insight – provided by Independent Investment Research

Jaguar Mining is a TSX-listed junior gold mining, development and exploration company operating in Brazil with three mining complexes, and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 64,000 hectares.

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 Caeté Gold Mine Complex. The company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012.

Turmalina is an underground mine that’s been in production since December 2015, utilizing the sub-level stoping mining method, with rockfill and paste fill, as well as some areas of the mine previously using the mechanized cut and fill mining method. Ore produced at the Turmalina mine is transported to the adjacent Carbon-In-Leach (CIL) processing plant.

The Caeté Mining Complex is composed of two underground mines – the Roça Grande Mine and Pilar Mine – that utilize a combination of mechanized cut and fill and sub-level stope mining methods. Ore produced from these mines is transported to the 2,200 tonnes per day gravity, flotation and CIL treatment of flotation concentrate, processing plant adjacent to the Roça Grande mine. Ore from the Pilar mine is trucked a total distance of 40km by road to the Caeté plant. Currently the Roça Grande mine is temporarily suspended for maintenance.

The Pilar Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2018 comprises: Proven & Probable Reserves: 1.78 million tonnes grading 3.68 g/t Au, containing 211,000 oz. Au; Measured & Indicated Resources: 4.93 million tonnes grading 4.20 g/t Au, containing 666,000 oz. Au; Inferred Resources: 1.39 million tonnes grading 3.61 g/t Au containing 161,000 oz. Au.

The Turmalina Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2018 comprises: Proven & Probable Reserves: 1.41 million tonnes grading 5.05 g/t Au, containing 228,000 oz. Au; Measured & Indicated Resources: 3.25 million tonnes grading 5.52 g/t Au, containing 577,000 oz. Au; Inferred Resources: 1.07 million tonnes grading 4.32 g/t Au containing 148,000 oz. Au.