RE:RE:RE:Canadian Analyst Ratings and Price Targets (4/21/2020)
JAGUAR MINING INC.
Target Change
JAG (CAD$0.27) – Target: $0.45 – BUY
• This morning, Jaguar Mining announced year-end reserve and resource updates for its Turmalina gold mine in Minas Gerais State, Brazil.
• Proven and Probable Reserves at Turmalina now stand at 2.40Mt grading 4.31 g/t, sufficient to sustain current production rates for the next six years, or five years at our expected production rate.
• We had expected the update to replace 2019 mine depletion, but not to this extent. Nor are we are concerned by the 15% YoY reduction in grade, having based our own LOM projections at an average grade of 4.27 g/t, or 1% less than the updated grade. All-in-all, we view the update as positive.
• We maintain our BUY rating and are raising our target price to $0.45/share from $0.35/share.
Mackie Research