Jaguar Mining Reports Q1 2011 Earnings
CONCORD, NH, May 17 /CNW/ --
JAG - TSX/NYSE
Adjusted Q1 2011 Earnings of $0.12 Per Share and Operating Cash Flow of
$0.23 Per Share
CONCORD, NH, May 17 /CNW/ - Jaguar Mining Inc. ('Jaguar' or the 'Company') (JAG: TSX/NYSE) reports its financial and operational results for the period ended March
31, 2011. All figures are in U.S. dollars unless otherwise indicated.
Note: As required by applicable Canadian rules, effective Q1 2011,
Jaguar has prepared its financial statements in accordance with
International Financial Reporting Standards ('IFRS'), including the
restatement of the comparative period previously reported under
Generally Accepted Accounting Principles ('GAAP') in Canada.
Q1 2011 Highlights
-- Record revenue of $55.1 million, an increase of 36% over Q1
2010.
-- Net income of $3.7 million or $0.04 per basic and fully diluted
share.
Adjusted net income, excluding special non-operating and
non-recurring charges, most significant of which was a
provision to value the conversion option embedded in
convertible notes issued by the Company, totaled $10.3 million
or $0.12 per basic and fully diluted share. (See Non-IFRS
Performance Measures)
-- Gross profit of $11.0 million, an increase of 48% from Q1 2010.
-- Record cash operating margin per ounce of gold of $659, an
increase of 31% from Q1 2010.
-- Cash generated by operating activities totaled $19.4 million or
$0.23 per fully diluted share, an
increase of 71% from Q1 2010.
-- Gold production of 41,449 ounces at an average cash operating
cost of $727 per ounce compared to 31,223 ounces at an average
cash operating cost of $597 per ounce in Q1 2010 (see Non-IFRS
Performance Measures). The increase in production from the
prior year was largely attributable to the addition of the
Caeté operation, which was commissioned in Q3 2010.
Removing the effect of gold-in-process and stockpile inventory
changes, the underlying operating
cash cost was $663 per ounce.
-- Gold ounces sold totaled 39,794, an increase of 8% from Q1
2010.|
-- The average sales price per ounce totaled $1,386, an increase
of 24% from Q1 2010.
-- Investments of $20.2 million in growth projects, a decrease of
45% from Q1 2010.
Commenting on the Q1 2011 performance, Daniel R. Titcomb, Jaguar's
President and CEO stated, 'Our favorable Q1 2011 financial performance
reflects the improvements we cited in the preliminary operating results
we issued four weeks ago. As we move through the year, we expect
further sequential gains in our quarterly gold production at lower
costs.'
Summary of Key Operating Results
The following is a summary of key operating results. Refer to the
Adjusted Net Income table.
Summary of Key Operating Results
($000s)
Quarter Quarter
Ended March Ended March
31, 2011 31, 2010
Gold sales $ 55,140 $ 40,670
Ounces sold 39,794 36,888
Average sales price $/ounce 1,386 1,102
Gross profit 10,968 7,405
Adjusted net income (loss) 10,313 (3,665)
(1 )
Adjusted basic and diluted $ 0.12 $ (0.04)
net income per share(1)
Weighted average number of 84,373,648 83,995,337
shares outstanding - basic
Weighted average number of 84,385,392 98,538,285
shares outstanding - diluted
(1) See Non-IFRS Performance
Measures
Additional details are available in the Company's filings on SEDAR and
EDGAR, including Management's Discussion and Analysis of Financial
Condition and Results of Operations and Consolidated Financial
Statements for the quarter ended March 31, 2011.
2011 Update of Operations
Operating results to-date are consistent with the initiatives the
Company implemented during the second half of 2010 and its previously
stated 2011 production target of between 195,000 and 205,000 ounces of
gold.
Non-IFRS Performance Measures
The Company has included the non-IFRS performance measures discussed
below in this press release. These non-IFRS performance measures do
not have any standardized meaning prescribed by IFRS and, therefore,
may not be comparable to similar measures presented by other
companies. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, these non-IFRS measures
provide investors with additional information that will better enable
them to evaluate the Company's performance. Accordingly, these
Non-IFRS measures are intended to provide additional information and
should not be considered in isolation or as a substitute for measures
of performance prepared with IFRS.
The Company has included cash operating cost per ounce produced and cash
operating margin per ounce because it believes these figures are a
useful indicator of an operation's performance as they provide: (i) a
measure of the mine's cash margin per ounce, by comparison of the cash
operating costs per ounce to the price of gold; (ii) the trend in costs
as the mine matures; and (iii) an internal benchmark of performance to
allow for comparison against other gold mining operations.
Additionally, the Company has provided adjusted net income, which
reflects the elimination of special non-operating and certain
non-recurring charges that do not reflect on-going costs in Jaguar's
operations or administrative costs; and cash flow from operations,
which does not reflect the change in non-cash operating working
capital. The definitions for these performance measures and
reconciliation of the non-IFRS measures to reported IFRS measures are
set out in the following tables.
Adjusted Net Income
($000s)
Quarter Quarter
Ended Ended
March 31, March 31,
2011 2010
Net income (loss) as $ 3,724 $ 26,818
reported
Adjustments:
Loss (gain) on conversion 1,340 (32,505)
option embedded in
convertible debt
Effect of gold-in-process 2,546 -
and stockpile inventory
changes
Non-cash interest expense 2,703 2,022
Adjusted net income (loss) 10,313 (3,665)
Adjusted basic and diluted $ 0.12 $ (0.04)
net income per share
Cash Provided by
Operating Activities
($000s)
Quarter Ended Quarter Ended
March 31, 2011 March 31, 2010
Cash provided by
operating activities
as reported
Net income $ 3,724 $ 26,818
Adjustments to
reconcile net
earnings to net cash
provided from
(used in) operating
activities:
Unrealized foreign
exchange (gain) loss (2,794) 397
Stock-based
compensation (2,696) (643)
Non-cash interest
expense 3,064 2,171
Accretion of
interest income (94) -
Accretion expense
570 290
Deferred income
taxes 455 1,644
Depletion and 11,477
amortization 8,122
Unrealized loss on
derivatives - 699
Unrealized (gain)
loss on option
component of 1,340 (32,505)
convertible note
Reclamation
expenditure (18) (78)
$ 15,028 $ 6,915
Change in non cash
operating working 4,361 $ 4,453
capital
Cash provided by $ 19,389 $ 11,368
operating activities
Cash provided by $ $
operating activities 0.23 0.14
per share
Cash Operating Margin per oz gold
Quarter Ended
March 31
2011 2010
Average sales price per oz gold $ 1,386 $ 1,102
less
Cash operating cost per oz gold produced 727 597
equals
Cash operating margin per oz gold $ 659 $ 505
The following tables are included in Jaguar's audited financial
statements as filed on SEDAR and EDGAR. Readers should refer to those
filings for the associated footnotes which are an integral part of the
tables.
JAGUAR MINING
INC.
Condensed
Interim
Consolidated
Balance Sheets
(Expressed in
thousands of
U.S. dollars)
(unaudited)
March 31, December 31, January 1,
2011 2010 2010
Assets
Current
assets:
Cash and
cash $ $
equivalents 135,543 39,223 $ 121,256
Inventory
29,066 31,495 36,986
Prepaid
expenses and
sundry
assets 27,693 24,523 19,050
Derivatives
168 168 1,280
192,470 95,409 178,572
Prepaid
expenses and
sundry
assets 48,721 48,582 35,837
Net smelter
royalty 1,006 1,006 1,006
Restricted
cash 908 908 108
Property,
plant and
equipment 356,635 348,815 262,748
Mineral
exploration
projects 75,953 74,658 62,236
$ $
675,693 569,378 $ 540,507
Liabilities
and
Shareholders'
Equity
Current
liabilities:
Accounts
payable and
accrued $ $
liabilities 31,156 27,853 $ 22,892
Notes
payable 23,482 26,130 5,366
Income taxes
payable 17,687 16,677 15,641
Reclamation
provisions 1,780 2,167 510
Deferred
compensation
liabilities 2,305 2,436 -
Other
liabilities 849 704 -
77,259 75,967 44,409
Notes
payable 222,804 140,664 125,483
Option
component of
convertible
notes 49,021 28,776 75,356
Deferred
income
taxes 676 215 450
Reclamation
provisions 19,324 17,960 10,008
Deferred
compensation
liabilities 2,125 4,829 8,876
Other
liabilities 290 497 738
Total
liabilities 371,499 268,908 265,320
Shareholders'
equity
Share
capital 369,747 369,747 365,667
Stock
options 12,984 13,054 14,762
Contributed
surplus 1,971 1,901 1,167
Deficit
(80,508) (84,232) (106,409)
Total equity
attributable
to equity
shareholders
of the
Company 304,194 300,470 275,187
Commitments
$ $
675,693 569,378 $ 540,507
JAGUAR MINING INC.
Condensed Interim Consolidated Statements of Operations and
Comprehensive Income
(Expressed in thousands of U.S. dollars, except per share amounts)
(unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
2011 2010
Gold sales $ 55,140 $ 40,670
Production costs (33,057) (25,140)
Stock-based compensation
5 (127)
Depletion and
amortization (11,120) (7,998)
Gross profit 10,968 7,405
Operating expenses:
Exploration 334 1,107
Stock-based
compensation (2,691) (770)
Administration 5,256 4,297
Management fees 162 339
Amortization 357 124
Other 836 689
Total operating
expenses 4,254 5,786
Income before the
following 6,714 1,619
Loss (gain) on
derivatives (287) 253
Loss (gain) on
conversion option
embedded in convertible
debt 1,340 (32,505)
Foreign exchange loss
(gain) (3,089) 564
Accretion expense 570 290
Interest expense 5,682 4,028
Interest income
(1,466) (1,361)
Gain on disposition of
property (719) (497)
Total other expenses
(recoveries) 2,031 (29,228)
Income before income
taxes 4,683 30,847
Income taxes
Current income taxes 504 2,385
Deferred income taxes 455 1,644
Total income taxes 959 4,029
Net income and
comprehensive income for
the period $ 3,724 $ 26,818
Basic earnings per
share $ 0.04 $ 0.32
Diluted earnings per
share $ 0.04 $ 0.31
Weighted average number
of common shares
outstanding - basic 84,373,648 83,995,337
Weighted average common
shares outstanding -
diluted 84,385,392 98,538,285
JAGUAR MINING INC.
Condensed Interim
Consolidated Statements of
Cash Flows
(Expressed in thousands of
U.S. dollars)
(unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
2011 2010
Cash provided by (used in):
Operating activities:
Net income and
comprehensive income for
the period $ 3,724 $ 26,818
Adjustments to reconcile
net earnings to net cash
provided from (used in)
operating activities:
Unrealized foreign
exchange loss (gain) (2,794) 397
Stock-based
compensation recovered (2,696) (643)
Interest expense 3,064 2,171
Accretion of interest
income (94) -
Accretion expense 570 290
Deferred income taxes 455 1,644
Depletion and
amortization 11,477 8,122
Unrealized loss on
derivatives - 699
Unrealized loss (gain)
on option component of
convertible note 1,340 (32,505)
Reclamation expenditure (18) (78)
Change in non-cash
operating working capital
Inventory 2,267 2,209
Prepaid expenses and
sundry assets (2,056) (2,936)
Accounts payable and
accrued liabilities 3,302 4,381
Income taxes payable 1,009 799
Deferred compensation
liability (161) -
19,389 11,368
Financing activities:
Issuance of common
shares - 1,501
Increase in restricted
cash - (800)
Repayment of debt (3,818) (68)
Increase in debt 99,313 3,542
Interest paid (361) (149)
Other long - term
liabilities (61) 164
95,073 4,190
Investing activities
Short term investments - (5,811)
Mineral exploration
projects (2,345) (1,865)
Purchase of property,
plant and equipment (17,868) (35,065)
(20,213) (42,741)
Effect of foreign exchange on
non-U.S. dollar denominated
cash and cash equivalents 2,071 980
Increase (decrease) in cash
and cash equivalents 96,320 (26,203)
Cash and cash equivalents,
beginning of period 39,223 121,256
Cash and cash equivalents,
end of period $ 135,543 $ 95,053
Departure of Corporate Officer
Mr. Robert Zwerneman, Jaguar's Vice President of Corporate Development
and Director of Investor Relations, has notified the Company he will be
resigning from Jaguar in order to pursue an employment opportunity with
another firm. Mr. Zwerneman has been with the Company since October
2006 and will remain for a period of time in a transitional role until
a suitable replacement can be found. His service as an officer of the
Company will come to an end on May 19, 2011.
Conference Call Details
The Company will hold a conference call tomorrow, May 18 at 9:00 a.m.
EDT, to discuss the results.
Conference Call Details:
From North 800-476-0592
America: 213-416-2192
International:
Replay:
From North
America:
International: 800-675-9924
213-416-2185
Replay ID: 51811
www.jaguarmining.com
Webcast:
A presentation 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.
Forward Looking Statements
This press release contains forward-looking statements, within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995
and applicable Canadian securities laws, concerning the Company's
expectation to realize further sequential gains in its quarterly
production during 2011 as well as achieve gold production of between
195,000 and 205,000 ounces for the year ending December 31, 2011.
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.
These factors include the inherent risks involved in the exploration and
development of mineral properties, the uncertainties involved in
interpreting drilling results and other geological data, fluctuating
gold prices and monetary exchange rates, the possibility of project
cost delays and overruns or unanticipated costs and expenses,
uncertainties relating to the availability and costs of financing
needed in the future, uncertainties related to production rates, timing
of production and the cash and total costs of production, changes in
applicable laws including laws related to mining development,
environmental protection, and the protection of the health and safety
of mine workers, the availability of labor and equipment, the
possibility of labor strikes and work stoppages and changes in general
economic conditions. 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 information,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
The forward-looking statements represent our view as of the date of
discussion. The Company anticipates that subsequent events and
developments may cause the Company's views to change. 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. For a discussion of important factors affecting the Company,
including fluctuations in the price of gold and exchange
rates, uncertainty in the calculation of mineral resources,
competition, uncertainty concerning geological conditions and
governmental regulations and assumptions underlying the Company's
forward-looking statements, see the 'CAUTIONARY NOTE' regarding
forward-looking statements and 'RISK FACTORS' in the Company's Annual
Information Form for the year ended December 31, 2010 filed on System
for Electronic Document Analysis and Retrieval and available at http://www.sedar.com and the Company's Annual Report on Form 40-F for the year ended
December 31, 2010 filed with the United States Securities and Exchange
Commission and available at www.sec.gov.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/17/c5337.html
Valéria Rezende DioDato
Director of Communication
603-224-4800
valeria@jaguarmining.com