Jaguar Mining Reports Third Quarter 2019 Financial and Operating Results

TORONTO, Ontario, Nov. 13, 2019

TORONTO, Ontario, Nov. 13, 2019 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced financial and operating results for the three months ("Q3 2019") and nine months ended September 30, 2019. Detailed financial results for Q3 2019 are available on www.sedar.com and on the Company's website www.jaguarmining.com. All figures are in US dollars, unless otherwise expressed.

Q3 2019 Operating Summary

• Consolidated gold production of 19,324 ounces (208,000 tonnes milled, average grade of 3.30 g/t) increased 5% compared to 18,366 ounces in Q2 2019, decreased 5% compared to 20,320 ounces in Q3 2018.
• Pilar mine gold production of 11,044 ounces up 5% compared to 10,543 ounces in Q2 2019, no change compared with the same period of 2018.
• Turmalina mine gold production up 6% to 8,280 ounces compared to 7,823 ounces in Q2 2019, decreased 11% compared to 9,252 ounces in Q3 2018.
• Primary development increased 6% to 1,516 meters compared to 1,436 meters completed in Q3 2018.
• Sustaining capital expenditures of $7.9 million invested in mining equipment and development.

Q3 2019 Financial Results Summary

• Operating cash flow of $4.7 million; adjusted EBITDA of $5.7 million; net Income of $1.1 million.
• Consolidated Cash operating costs ("COC") increased 27% to $798 per ounce compared to $627 in Q3 2018 mainly due to lower grade and higher tonnage. Consolidated all-in sustaining costs ("AISC") increased 22% to $1,389 compared to $1,142 in Q3 2018 due to increased operating cash cost and fewer ounces sold.
• Average realized gold price during the quarter was $1,320 per ounce mainly due to the hedge program linked with the bridge and gold loans that were entered in 2018 and early part of 2019.
• The Company completed a $25 million non-brokered private placement ("the Offering") on July 18, 2019 which included two of the Company's major shareholders, Mr. Eric Sprott and Tocqueville Gold Fund.

Vern Baker, CEO of Jaguar commented, "Thanks to support from shareholders, Jaguar completed a $25 million private placement. That support has allowed us to: 1) retire significant debt of $13.8 million in Q3 2019, 2) to invest in bringing the mines to a profitable position, and 3) to operate with a consistent and sustainable approach to our orebodies. We are now well positioned financially, with a positive cash balance, as we continue driving performance in the next quarter, to set up a sustainable performance in 2020. Our plans will allow us to improve over the next quarters to reach a sustainable production rate of 100,000 ounces per year in the second half of 2020."

"In Q3 2019 Jaguar recognized a profit of $1.1 million as production increased to over 19,000 ounces. I am delighted to see our Company begin to reflect the improvements implemented recently. Investment in sustaining capital remains high as Pilar works to stabilize productive capacity at 4,000 ounces per month, and Turmalina is driving development to return to a consistent production of 4,000 ounces per month. Sustaining capital investment will remain high for the next year as development, equipment replacement, and infrastructure maintenance are brought up to the levels that will allow a long-term consistent performance with normal levels of capital. I expect to see improvement in profit, cash flow and ounces produced each quarter until we hit the sustainable rates planned for our mines."

Financial performance upside in Q3 2019 was limited by the gold loan repayments and settling of forwards/options that held the Company´s realized price of gold to $1,320 per ounce. These forward/option contracts were entered into during a period of constrained operations in 2018 and 2019, primarily due to the bridge loan covenant requirements. Jaguar has an obligation to deliver into the committed forward/option contracts and repayments of the gold loan that will impact the company in Q4 2019 and Q1 2020. Using the mix of spot prices, forwards/options and the residual gold loan repayments; the realized gold price will be more aligned to the spot gold price during the quarter. Jaguar will be unhedged by end of Q1 2020.