Nov, 7 News
Excellent News!
Jaguar Mining Announces Third Quarter 2013 Financial Results
TSX: JAG
TORONTO, Nov. 7, 2013 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today reported a net loss of $13.2 million or $0.15 per fully diluted share for the quarter ended September 30, 2013. This result compares to a net loss of $21.6 million or $0.26 per fully diluted share in the third quarter of 2012. The third quarter 2013 result includes an interest expense of $8.6 million, a foreign exchange loss of $0.3 million, and a $0.2 million unrealized non-cash gain on the conversion option embedded in convertible debt (see note 1). Excluding these non-operating items, Jaguar's third quarter result was a net loss of $4.5 million or $0.05 per fully diluted share.
Third Quarter Developments
14% increase in gold production totaling 26,300 ounces in Q3 2013 compared to 23,026 ounces in Q3 2012;3% increase in gold sales totaling 24,111 ounces in Q3 2013 compared to 23,307 ounces in Q3 2012;
12% decline in cash operating cost reaching $846 per ounce in Q3 2013 versus $963 per ounce in Q3 2012;
34% reduction in all-in cost improving from $1,912 per ounce sold in Q3 2012 to $1,264 per ounce sold in Q3 2013;
Capital expenditure projection reduced from $28.9 million as disclosed in Q2 2013 to $24.5 million for 2013;
$5.1 million cash generated from operating activities in Q3 2013 compared to $2.6 million cash consumed in Q3 2012;
Working capital deficiency of $39.9 million as of September 30, 2013;
On November 1, 2013, the Company entered into a non-binding term sheet (the "Term Sheet") outlining the terms of a recapitalization and financing transaction with an ad hoc committee (the "Ad Hoc Committee") of noteholders (who represent a majority of the holders of the Company's 4.5% Senior Unsecured Convertible Notes due November 1, 2014 ("4.5% Convertible Notes") and US$103.5 million 5.5% Senior Unsecured Convertible Notes due March 31, 2016 (together with the 4.5% Convertible Notes, the "Convertible Notes")) and received support from the Ad Hoc Committee to defer the semi-annual interest payment due November 1, 2013 on the 4.5% Convertible Notes; and
16% reduction in headcount in Q3 2013 compared to Q3 2012.
During the third quarter of 2013, Jaguar sold 24,111 ounces of gold at an average realized price of $1,331 per ounce. This compared to sales of 23,307 ounces of gold at an average realized price of $1,648 per ounce for the same period of 2012. Average cash operating cost per ounce produced was $847 in the third quarter of 2013 compared to $963 in the third quarter of 2012. Cash operating margin was $484 per ounce in the third quarter 2013 compared to $685 per ounce in the third quarter of 2012. The decrease in the Company's average cash operating cost per ounce produced during the third quarter 2013 as compared to the third quarter 2012 was attributable to Jaguar's on-going cost reduction and operational improvement program, reduced headcount at the mining operations and continued focus on reducing dilution and improving safety and productivity.