B2Gold Corp. press release

Jaguar Mining Reports Financial Results for the Fourth Quarter and Full Year 2021

2022-03-21

TSX - Toronto Stock Exchange · Gold · Canada · Corporate Finance

Announces Quarterly Dividend

TORONTO, ON / ACCESSWIRE / March 21, 2022 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG)(OTCQX:JAGGF) today announced financial results for the fourth quarter ("Q4 2021") and year ("FY 2021") ended December 31, 2021. All figures are in US Dollars, unless otherwise expressed.

Q4 2021 Financial Highlights

Revenue for Q4 2021 decreased 2% to $42.7 million, compared with $43.4 million in Q4 2020, mainly due to a reduction in the average realized gold price of $1,819/oz in Q4 2021 as compared to $1,863/oz for Q4 2020. Operating production costs of $18.8 million in Q4 2021 as compared to $16.4 million in Q4 2020. The 15% increase in operating production costs is due to inflation, combined with increased secondary development, which is fully expensed as operating costs, from 667 metres in Q4 2020 to 1,189 metres in Q4 2021. Cash operating costs1increased 14% to $802 from $705 per ounce of gold in Q4 2021 because of inflation and increased on secondary development metres compared to Q4 2020. All-in sustaining costs1decreased to $1,127 per ounce of gold sold for Q4 2021, compared to $1,200 per ounce of gold sold for the same period in 2020 due to a reduction on sustaining capital expenditures from $9.8 million in Q4 2020 to $6 million in Q4 2021. Net Income was $13.7 million ($0.19 per share) in Q4 2021 compared to net income of 24.3 million ($0.34 per share) in Q4 2020 resulting in a decrease of $10.6 million. The change was due in large part to an impairment reversal of $14 million in 2020, compared to $nil in 2021. Free cash flow1was $8.2 million for Q4 2021 compared to $10.9 million in Q4 2020 and was impacted by operating cash flow and increased capital expenditures. Free cash flow was $348 per ounce sold in Q4 2021 compared to $466 per ounce sold in Q4 2020.

FY 2021 Financial Highlights

Gross profit decreased 30% to $60 million in FY 2021 compared to $85.7 million in FY 2020 due to inflation impact on the Company's costs in 2021 as compared to the same period last year, increased secondary metres, as well as an increase of $6 million in depreciation expenses in 2021, as a reflection of a higher asset value resulting from a $14 million impairment reversal in 2020. Consolidated gold production decreased 8% with 83,878 ounces produced in FY 2021 compared to 91,118 ounces produced in FY 2020, due to COVID-19 impact in the first quarter of 2021. Cash operating cost1increased 28% to $831 per ounce of gold sold for FY 2021, compared to $647 during FY 2020 mainly due to an 8% reduction in ounces of gold sold from 91,853 FY 2020 to 84,638 FY 2021, combined with inflation and increased on secondary development metres compared to FY 2020. All-in sustaining cost1increased 16% to $1,215 per ounce of gold sold in FY 2021, compared to $1,044 during FY 2020, primally due to the increase of 28% in cash operating cost1explained on the bullet before. Operating cash flow of $45 million; adjusted EBITDA of $66.5 million. Net income of $34.2 million, or net income per share of $0.47.

[1] This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-GAAP Performance Measures section of the MD&A.

Cash Position and Working Capital

Strong treasury at December 31, 2021, with cash of $40.4 million compared to $38.9 million on the same period of 2020. As of December 31, 2021, working capital was $32 million, compared to $29.2 million as at December 31, 2020, which includes $3 million in short term loans from Brazilian banks.

Q4 2021 Quarterly Dividend

The Company is also pleased to announce that its Board of Directors has declared a cash dividend of C$0.04 per common share of the Company, to be paid on March 25, 2022, to shareholders of record as of the close of business on March 31, 2022. This is the same amount as paid in the previous three quarters. The dividend qualifies as an eligible dividend for Canadian income tax purposes. The Board of Directors intends to review, among other things, the Company's budget, cash flow forecast and existing market conditions on a quarterly basis in order to determine whether any additional dividends will be declared on Shares for subsequent quarters.

Vern Baker, President and CEO of Jaguar Mining stated: "I am very pleased with our performance in Q4 of 2021. Jaguar´s operational assets performed on a consistent basis producing 22,903 ounces of gold and completing 2,615 meters of development. Exploration performance was also strong with over 18,000 meters of in-mine diamond drilling, approximately 1,900 meters of surface diamond drilling, and more than 6,700 meters of reverse circulation drilling. Jaguar paid a dividend and expanded its cash position in the fourth quarter.

The impact of the pandemic on our operations was significant during the first half of 2021 but became minimal by Q4 2021. In January and February of 2022, our operations were impacted by both the Omicron variant and torrential rains and flooding that hit Minas Gerais. We have rescheduled our production plans to make up the shortfall throughout the year. We still expect to be within our 2022 production guidance of 86,000 to 94,000 ounces.

Exploration and growth projects are a major focus for Jaguar this year. We initiated a new division for Growth. Diamond drilling to upgrade the Faina resource was started with two drill rigs in January and over 20% of our targeted 15,000 meters are completed. This program will both deliver the mineralized material for our next round of metallurgical tests and the sample results to advance much of the mineral resource to a measured and indicated level. Our Project Northwest is developing the Turmalina-Faina corridor from the current Turmalina workings toward Faina. The project has advanced more than 300 meters, has established dual declines, and we are working to complete the ventilation circuit that will support development for the full distance and for pre-production work. At Pilar work on Project Southwest started in Q4 2021 and is progressing to develop additional resources in the upper part of the mine. Work on our Joint Venture with IAMGOLD near our CPA plant is progressing with the first diamond drill holes started in Q4 2021."

Q4 & FY 2021 Financial Results

| ($ thousands, except where indicated) | | Three months ended December 31, | | | Year ended December 31, | | | | | | | | | | | | | | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | | | | | Financial Data | | | | | | | | | | | | | | | | | | Revenue | | $ | 42,703 | | | $ | 43,417 | | | $ | 151,467 | | | $ | 160,247 | | | Operating costs | | | 18,838 | | | | 16,424 | | | | 70,337 | | | | 59,448 | | | Depreciation | | | 5,089 | | | | 3,767 | | | | 21,092 | | | | 15,055 | | | Gross profit | | | 18,776 | | | | 23,226 | | | | 60,038 | | | | 85,744 | | | Net income | | | 13,687 | | | | 24,294 | | | | 34,190 | | | | 72,280 | | | Per share ("EPS")1 | | | 0.19 | | | | 0.34 | | | | 0.47 | | | | 1.00 | | | EBITDA2 | | | 19,022 | | | | 31,618 | | | | 64,064 | | | | 103,015 | | | Adjusted EBITDA2,3 | | | 18,523 | | | | 20,474 | | | | 66,454 | | | | 87,849 | | | Adjusted EBITDA per share1,2 | | | 0.26 | | | | 0.28 | | | | 0.92 | | | | 1.20 | | | Cash operating costs (per ounce sold)2 | | | 802 | | | | 705 | | | | 831 | | | | 647 | | | All-in sustaining costs (per ounce sold)2 | | | 1,127 | | | | 1,200 | | | | 1,215 | | | | 1,044 | | | Average realized gold price (per ounce)2 | | | 1,819 | | | | 1,863 | | | | 1,790 | | | | 1,745 | | | Cash generated from operating activities | | | 9,581 | | | | 20,606 | | | | 45,036 | | | | 78,665 | | | Free cash flow2 | | | 8,168 | | | | 10,857 | | | | 24,079 | | | | 49,421 | | | Free cash flow (per ounce sold)2 | | | 348 | | | | 466 | | | | 284 | | | | 538 | | | Sustaining capital expenditures2 | | | 6,015 | | | | 9,848 | | | | 25,671 | | | | 29,463 | | | Non-sustaining capital expenditures2 | | | 4,279 | | | | 3,416 | | | | 12,500 | | | | 6,900 | | | Total capital expenditures | | | 10,294 | | | | 13,264 | | | | 38,171 | | | | 36,363 | | | 1On August 27, 2020, the Company completed a share consolidation of its outstanding common shares on the basis of one (1) post-consolidation share for every ten (10) pre-consolidation shares. | | | | | | | | | | | | | | | | | | 2Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, adjusted operating cash flow, free cash flow, EBITDA and adjusted EBITDA, and adjusted EBITDA per share are non-IFRS financial performance measures with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A. | | | | | | | | | | | | | | | | | | 3Adjusted EBITDA excludes non-cash items such as impairment and write downs. For more details refer to the Non-IFRS Performance Measures section of the MD&A. | | | | | | | | | | | | | | | | |

| | | Three months ended December 31, | | | Year ended December 31, | | | | | | | | | | | | | | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | | | | | Operating Data | | | | | | | | | | | | | | | | | | Gold produced (ounces) | | | 22,903 | | | | 22,533 | | | | 83,878 | | | | 91,118 | | | Gold sold (ounces) | | | 23,479 | | | | 23,308 | | | | 84,638 | | | | 91,853 | | | Primary development (metres) | | | 1,174 | | | | 1,871 | | | | 4,438 | | | | 7,085 | | | Secondary development (metres) | | | 1,189 | | | | 667 | | | | 4,835 | | | | 2,641 | | | Definition, infill, and exploration drilling (metres) | | | 27,818 | | | | 21,501 | | | | 89,181 | | | | 68,945 | |

Non-GAAP performance

The Company has included the following Non-GAAP performance measures in this document: cash operating costs per ounce of gold sold, all-in sustaining costs per ounce of gold sold,average realized gold price (per ounce of gold sold), sustaining capital expenditures, non-sustaining capital expenditures, adjusted operating cash flow, free cash flow, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and working capital. These Non-GAAP 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, certain investors use this information to evaluate the Company's performance. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. More specifically, Management believes that these figures are a useful indicator to investors and management of a mine'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 mines. The definitions of these performance measures and reconciliation of the Non-GAAP measures to reported IFRS measures are outlined below.

Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold1

| ($ thousands, except where indicated) | | Three months ended December 31, | | | Year ended December 31, | | | | | | | | | | | | | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | | | | Operating costs | | $ | 18,838 | | | $ | 16,424 | | | $ | 70,337 | | | $ | 59,448 | | General & administration expenses | | | 1,507 | | | | 1,195 | | | | 5,703 | | | | 5,716 | | Corporate stock-based compensation | | | 88 | | | | 494 | | | | 1,044 | | | | 1,227 | | Sustaining capital expenditures1 | | | 6,015 | | | | 9,848 | | | | 25,671 | | | | 29,463 | | All-in sustaining cash costs | | | 26,448 | | | | 27,961 | | | | 102,755 | | | | 95,854 | | Reclamation - accretion (operating sites) | | | 7 | | | | - | | | | 60 | | | | 60 | | All-in sustaining costs | | $ | 26,455 | | | $ | 27,961 | | | $ | 102,815 | | | $ | 95,914 | | Non-sustaining capital expenditures | | | 4,279 | | | | 3,416 | | | | 12,500 | | | | 6,900 | | Exploration and evaluation costs (greenfield) | | | 1,829 | | | | 1,110 | | | | 5,129 | | | | 1,839 | | Reclamation - accretion (non-operating sites) | | | 94 | | | | - | | | | 155 | | | | 60 | | Care and maintenance (non-operating sites) | | | 237 | | | | 340 | | | | 1,013 | | | | 791 | | All-in costs | | $ | 32,894 | | | $ | 32,827 | | | $ | 121,612 | | | $ | 105,504 | | Ounces of gold sold | | | 23,479 | | | | 23,308 | | | | 84,638 | | | | 91,853 | | Cash operating costs per ounce sold2 | | $ | 802 | | | $ | 705 | | | $ | 831 | | | $ | 647 | | All-in sustaining costs per ounce sold2 | | $ | 1,127 | | | $ | 1,200 | | | $ | 1,215 | | | $ | 1,044 | | All-in costs per ounce sold2 | | $ | 1,401 | | | $ | 1,408 | | | $ | 1,437 | | | $ | 1,149 | | Average realized gold price | | $ | 1,819 | | | $ | 1,863 | | | $ | 1,790 | | | $ | 1,745 | | Cash operating margin per ounce sold | | $ | 1,017 | | | $ | 1,158 | | | $ | 959 | | | $ | 1,098 | | All-in sustaining margin per ounce sold | | $ | 692 | | | $ | 663 | | | $ | 575 | | | $ | 701 | | 1 Capital expenditures are included in our calculation of all-in sustaining costs and all-in costs. | | | | | | | | | | | | | | | | | 2Cash operating costs, all-in sustaining costs and all-in costs are all non-GAAP financial performance measures with no standard definition under IFRS. Result may not calculate due to rounding. | | | | | | | | | | | | | | | |

[1] This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-GAAP Performance Measures section of the MD&A.

Reconciliation of sustaining capital and non-sustaining capital expenditures1

| ($ thousands) | | Three months ended December 31, | | | Year ended December 31, | | | | | | | | | | | | | | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | | | | | Sustaining capital1 | | | | | | | | | | | | | | | | | | Primary development | | $ | 4,129 | | | $ | 6,079 | | | $ | 15,700 | | | $ | 21,447 | | | Brownfield exploration | | | 316 | | | | 285 | | | | 1,042 | | | | 704 | | | Mine-site sustaining | | | 1,454 | | | | 3,484 | | | | 8,501 | | | | 7,312 | | | Other sustaining capital2 | | | 116 | | | | - | | | | 428 | | | | - | | | Total sustaining capital1 | | | 6,015 | | | | 9,848 | | | | 25,671 | | | | 29,463 | | | Non-sustaining capital (including capital projects)1 | | | | | | | | | | | | | | | | | | Mine-site non-sustaining | | | 1,862 | | | | 3,416 | | | | 5,882 | | | | 6,900 | | | Asset retirement obligation - non-sustaining2 | | | 2,261 | | | | - | | | | 4,233 | | | | - | | | Other non-sustaining capital3 | | | 156 | | | | - | | | | 2,385 | | | | - | | | Total non-sustaining capital1 | | | 4,279 | | | | 3,416 | | | | 12,500 | | | | 6,900 | | | Total capital expenditures | | $ | 10,294 | | | $ | 13,264 | | | $ | 38,171 | | | $ | 36,363 | | | 1 Sustaining and non-sustaining capital are non-IFRS financial measures with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A. Capital expenditures are included in the calculation of all-in sustaining costs and all-in costs. | | | | | | | | | | | | | | | | | | 2 Asset retirement obligation - non-sustaining is related to expenditures with dam closing projects. Payments related to the Company asset retirement obligation are classified as operating activities in accordance with IFRS financial measures. | | | | | | | | | | | | | | | | | | 3Other sustaining and non-sustaining capital are related to Belo Office and others projects. | | | | | | | | | | | | | | | | |

Reconciliation of Free Cash Flow1

| ($ thousands, except where indicated) | | Three months ended December 31, | | | Year ended December 31, | | | | | | | | | | | | | | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | | | | | Cash generated from operating activities | | $ | 9,581 | | | $ | 20,606 | | | $ | 45,036 | | | $ | 78,665 | | | Adjustments | | | | | | | | | | | | | | | | | | Asset Retirement Obligation | | | 4,602 | | | | 99 | | | | 4,714 | | | | 219 | | | Sustaining capital expenditures | | | (6,015 | ) | | | (9,848 | ) | | | (25,671 | ) | | | (29,463 | ) | | Free cash flow | | $ | 8,168 | | | $ | 10,857 | | | $ | 24,079 | | | $ | 49,421 | | | Ounces of gold sold | | | 23,479 | | | | 23,308 | | | | 84,638 | | | | 91,853 | | | Free cash flow per ounce sold | | $ | 348 | | | $ | 466 | | | $ | 284 | | | $ | 538 | | | 1This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | | | | | | | | | |

[1] This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-GAAP Performance Measures section of the MD&A.

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA1

| ($ thousands, except where indicated) | | Three months ended December 31, | | | Year ended December 31, | | | | | | | | | | | | | | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | | | | | Net Income | | $ | 13,687 | | | $ | 24,294 | | | $ | 34,190 | | | $ | 72,280 | | | Income tax expense | | | - | | | | 3,213 | | | | 7,939 | | | | 14,536 | | | Finance costs | | | 227 | | | | 325 | | | | 776 | | | | 1,043 | | | Depreciation and amortization | | | 5,108 | | | | 3,786 | | | | 21,159 | | | | 15,156 | | | EBITDA | | $ | 19,022 | | | $ | 31,618 | | | $ | 64,064 | | | $ | 103,015 | | | Impairment charges | | | - | | | | (14,022 | ) | | | - | | | | (14,022 | ) | | Changes in other provisions and VAT taxes | | | (10 | ) | | | 302 | | | | 1,358 | | | | 1,171 | | | Foreign exchange (gain) | | | (577 | ) | | | 2,082 | | | | (1,698 | ) | | | (4,018 | ) | | Stock-based compensation | | | 88 | | | | 494 | | | | 1,044 | | | | 1,227 | | | Financial instruments loss | | | - | | | | - | | | | - | | | | 476 | | | Other non-operating expenses (recoveries)1 | | | - | | | | - | | | | 1,686 | | | | - | | | Adjusted EBITDA2 | | $ | 18,523 | | | $ | 20,474 | | | $ | 66,454 | | | $ | 87,849 | | | | | | | | | | | | | | | | | | | | | Weighted average outstanding shares | | | 72,441,622 | | | | 72,112,995 | | | | 72,396,926 | | | | 72,311,315 | | | Adjusted EBITDA per share2,3 | | $ | 0.26 | | | $ | 0.28 | | | $ | 0.92 | | | $ | 1.20 | | | 1CentroGold royalty interest sales. As a result of the sale, the Company (i) derecognized the $8.5 million CentroGold project royalty interest asset, (ii) received and recorded $7.0 million in Cash, (iii) recorded $0.2 million in legal and consulting costs associated with the transaction. | | | | | | | | | | | | | | | | | | 2This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | | | | | | | | | | | 3On August 27, 2020, the Company completed a share consolidation of its outstanding common shares on the basis of one (1) post-consolidation share for every ten (10) pre-consolidation shares. | | | | | | | | | | | | | | | | |

Working Capital1

| ($ thousands) | | December 31, 2021 | | | December 31, 2020 | | | | | Cash and cash equivalents | | $ | 40,373 | | | $ | 38,908 | | | Non-cash working capital | | | | | | | | | | Other current assets: | | | | | | | | | | Restricted cash | | | 501 | | | | 1,091 | | | Inventory | | | 14,546 | | | | 12,529 | | | Recoverable taxes | | | 5,143 | | | | 4,944 | | | Other accounts receivable | | | 92 | | | | 61 | | | Prepaid expenses and advances | | | 2,176 | | | | 2,912 | | | | | | | | | | | | | Current liabilities: | | | | | | | | | | Accounts payable and accrued liabilities | | | (15,660 | ) | | | (18,851 | ) | | Notes payable | | | (3,027 | ) | | | (3,058 | ) | | Lease liabilities | | | (1,431 | ) | | | (1,530 | ) | | Current tax liability | | | - | | | | (3,213 | ) | | Other taxes payable | | | (935 | ) | | | (1,153 | ) | | Reclamation provisions | | | (6,847 | ) | | | (623 | ) | | Legal and other provisions | | | (2,941 | ) | | | (2,827 | ) | | Working capital1 | | $ | 31,990 | | | $ | 29,190 | | | 1This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | |