JAG... Jaguar Mining Reports Third Quarter 2011 Financial Results
Press Release Source: Jaguar Mining Inc. On Wednesday November 9, 2011, 10:25 pm
JAG - TSX/NYSE
Third Quarter 2011 Highlights
- Record total of 41,390 ounces of gold sold
- Record total revenue of $70.0 million
- Total gold production of 40,661 ounces
- Record cash operating margin of $806 per ounce
- Operating profit of $6.7 million
- Cash provided by operating activities totaled $30.0 million or $0.36 per fully diluted share, an increase of 164% from Q3 2010 and 38% from Q2 2011
CONCORD, NH , Nov. 9, 2011 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG.TO - News) (NYSE: JAG.TO - News) today reported adjusted net income of $7.4 million or $0.09 per fully diluted share for the quarter ended September 30 , 2011. The adjusted result excludes non-operating expenses including $27.3 million from an unrealized loss on the conversion option embedded in convertible debt (see note 1), an $18.6 million loss resulting from a significant decline in the value of the Brazilian real vs. the U.S. dollar during the period (see note 2), a $1.2 million loss on foreign exchange derivatives (see note 3), $5.6 million of deferred income taxes, $3.3 million non-cash interest expense and $2.8 stock based compensation. Including these items, Jaguar's third quarter result was a net loss of $51.3 million or $0.61 per fully diluted share.
Commenting on the quarter's results and operations, Daniel R. Titcomb, Jaguar's President and CEO stated, "We had a number of notable accomplishments in the quarter. We set a new quarterly record of 41,390 ounces of gold sold. Combined with strong gold prices, averaging $1,692 per ounce, we also achieved a record $70.0 million in total revenue. Our combined mine output for the third quarter 2011 totaled approximately 463,000 tonnes, yielding 40,661 recovered gold ounces. Our average cash operating margin per ounce increased by more than 77 percent compared to the third quarter of last year, setting a new quarterly record. This produced record quarterly cash flow of $30 million or $0.36 per share. These positives should not be overshadowed by the non-cash, non-operating expenses which negatively impacted net income in the quarter."
Cash operating costs were $886 per ounce of gold in the third quarter 2011 compared to $799 per ounce in the second quarter 2011. The vast majority of the cash cost increase is attributable to higher labor expense. Approximately half of the increase in labor expense for the quarter was the result of one-time payments for incentive/retention bonuses and unique, salary premiums as agreed in the June labor negotiations. Lower feed grades at the Paciência mining complex were also a factor in the higher average cash operating costs. The average cash operating margin for the third quarter 2011 was $806 per gold ounce sold compared to $708 per gold ounce sold in the second quarter of 2011.
Cash provided by operating activities during the quarter totaled $30.0 million or $0.36 per basic and diluted share.
At September 30, 2011 , Jaguar had cash and cash equivalents totaling $101.7 million . This compares to $39.2 million at December 31, 2010 and $125.4 million at June 30 , 2011. The decline from the end of the second quarter is largely attributable to $33.9 million capital investment in mining equipment and exploration, $14.8 million effect of foreign exchange on non-US dollar denominated cash and cash equivalents, offset by $30.0 million cash provided by operations.
For the first nine months of 2011, Jaguar sold 121,368 ounces of gold and reported total revenue of $185.7 million and a net loss of $32.0 million or $0.38 per fully diluted share. Excluding the non-operating expenses related to derivatives, the conversion option embedded in the Company's convertible debt, gains or losses from changes in foreign exchange rates, stock based compensation, interest expense and deferred taxes adjusted net income was $16.0 million or $0.19 per fully diluted share for the first nine months of 2011. Cash provided by operating activities in the first nine months of the year totaled $71.0 million , or $0.84 per share. The results compare to 106,395 ounces of gold sold, total revenue of $126.2 million , net income of $31.8 million , adjusted net loss of $8.1 million and cash provided by operating activities of $24.7 million in the first nine months of 2010. The increases in ounces of gold sold and total revenue in the first nine months of 2011are largely attributable to the addition of the Caeté operation which was commissioned in the third quarter of 2010. Total revenue was also driven higher by increased average price realization per ounce.
The following is a summary of key operating results and measures for the three month and nine month periods ended September 30, 2011 and comparable measures for the relevant prior year periods.
Summary of Key Operating Measures
Quarter Ended Nine Months Ended September 30 September 30 2011 2010 2011 2010 (unaudited) ($ in 000s, except per share amounts) Gold sales $ 70,041 $ 48,712 $ 185,739 $ 126,234 Ounces sold 41,390 38,861 121,368 106,395 Average sales price ($ per ounce) 1,692 1,254 1,530 1,186 Gross profit 17,716 256 41,536 9,792 Net income (loss) (51,272) 19,230 (31,962) 31,810 Basic income (loss) per share (0.61) 0.23 (0.38) 0.38 Diluted income (loss) per share (0.61) 0.23 (0.38) 0.37 Weighted avg. # of shares outstanding - basic 84,388,909 84,224,952 84,378,791 84,117,099 Weighted avg. # of shares outstanding - diluted 84,388,909 84,652,178 84,378,791 85,307,435
South Operations Development and Exploration
During the third quarter, Jaguar's operations completed the development of more than 6.5 kilometers, added 17 new working faces, and completed over 23.3 kilometers of drilling in their existing mines. This development and drilling will provide opportunities to increase total production as well as improve operational flexibility, resulting in the ability to more effectively manage the consistency of feed grades at processing plants in future periods.
In addition, Jaguar is continuing brownfield exploration efforts at and around existing mining complexes. Subsequent to the end of the third quarter, the Company completed and filed a NI 43-101 compliant statement of resource technical report for its Faina and Pontal targets. Faina and Pontal are refractory ore deposits located near the Turmalina Mine. This technical report added 276,850 ounces of measured and indicated mineral resources and 127,820 ounces of inferred mineral resources to Jaguar's total mineral resources.
Conference Call Details
Members of the Jaguar senior management team will hold a conference call to discuss the third quarter results and operations on Thursday, November 10, 2011 at 10:00 a.m. ET . The call can be accessed via telephone or webcast.
Conference Call Details: From North America: 888-702-7351 International: 213-416-2192 Replay: From North America: 800-675-9924 International: 213-416-2185 Replay ID: 111011 Webcast: www.jaguarmining.com A slide presentation to accompany the conference call discussion will be available prior to the call on the Company's homepage at www.jaguarmining.com.
About Jaguar
Jaguar is a gold producer in Brazil with operations in a prolific greenstone belt in the state of Minas Gerais. Jaguar is also engaged in developing the Gurupi Project 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. |
