- Eric Sprott has purchased 750,000 shares of Jaguar Mining (TSX:JAG) for C$2,625,000, signalling continued conviction in one of his largest investments
- The purchase increases his ownership stake from 46 to 46.9 per cent of outstanding shares
- Jaguar Mining is a Canadian-listed gold mining, development and exploration company operating in Brazil
- The gold stock has added 108.94 per cent year-over-year and 126.67 per cent since 2019
Eric Sprott has purchased 750,000 shares of Jaguar Mining (TSX:JAG) for C$2,625,000, signalling continued conviction in one of his largest investments.
He purchased the shares for C$3.50 a piece through 2176423 Ontario Ltd., a corporation he beneficially owns, representing about 1 per cent of outstanding shares on a non-diluted basis.
Prior to the acquisition, Sprott owned 36,358,711 shares or 46 per cent of outstanding shares on a non-diluted basis. After the acquisition, he now owns 37,108,711 shares or 46.9 per cent of shares on a non-diluted basis, a gargantuan number that begs the question of what he finds so attractive about the stock.
Why has Eric Sprott backed up the truck with Jaguar Mining?
Jaguar Mining’s appeal stems from its three gold mining complexes and high-potential, underexplored land package in Minas Gerais, Brazil, where the company has produced approximately 1.7 million ounces of gold since 2006.
The gold stock’s two producing mines, Pilar and Turmalina, generated more than 70,000 ounces of gold in 2023, and have combined resources and reserves in excess of 3 million ounces to keep them in operation long into the future. The company plans to ramp up production to about 130,000 ounces per year through ongoing exploration and development at its Faina and Onças de Pitangu projects over the next few years.
From an efficiency perspective, the Brazilian gold stock’s operations have been profitable since 2020, generating more than US$130 million combined. This should have value investors hearing bells and whistles because shares are currently trading at a low valuation against Jaguar’s peers (slide 28) as gold continues to flirt with all-time-highs.
About Jaguar Mining
Jaguar is a Canadian-listed gold mining, development and exploration company operating in Brazil.
Jaguar Mining Inc. stock (TSX:JAG) last traded at C$3.74 per share. The stock has added 108.94 per cent year-over-year and 126.67 per cent since 2019.
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(Top photo of Jaguar Mining’s Pilar mine in Brazil: Jaguar Mining)