Jaguar Mining Reports Financial Results for the Fourth Quarter and Full Year 2024

2025-04-01

TSX - Toronto Stock Exchange · Gold · Canada

TORONTO, ON / ACCESS Newswire/ March 31, 2025 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG)(OTCQX:JAGGF) today filed its year-end results, the highlights of which are included in this news release. The full set of audited consolidated financial statements for the fiscal years ended December 31, 2024 and 2023, accompanying management's discussion and analysis and annual information form can be accessed by visiting the Company's website at https://jaguarmining.comor its profile page on SEDAR+ at www.sedarplus.ca. All figures are in US Dollars, unless otherwise expressed.

Fourth Quarter and Full Year 2024 Highlights

Fourth quarter results were impacted by the slump of material at the dry-stack facility at the Company's MTL complex that occurred on December 7, 2024. The incident resulted in the temporary suspension of production activities at the Turmalina mine while the facility was stabilized. Work with government agencies, relocating material from the pile, assisting local community members, and care and maintenance of the mine and plant have been ongoing since the incident. Currently, the timing of the resumption of operations is unknown, but efforts to stabilize the pile and assure the future safe operation of the complex are progressing well.

Gold production for the fourth quarter was 14,786 ounces, with 16,043 ounces sold at cash operating costs¹ of $1,106 per ounce of gold sold and all-in sustaining costs¹ of $1,737 per ounce of gold sold. Realized gold prices were $2,641 per ounce in the quarter.

Gold production for the full year was 64,704 ounces, with 66,483 ounces sold at cash operating costs¹ of $1,102 per ounce of gold sold and all-in sustaining costs¹ of $1,651 per ounce of gold sold. Realized gold prices were $2,386 per ounce in 2024.

Gold produced and sold for the quarter and full year were impacted by the temporary suspension of operations at the MTL Complex/Turmalina mine following the incident that occurred at the Satinoco pile on December 7, 2024.

Revenue for the quarter and full year was $42.4 million and $158.6 million respectively, 18% above revenue in the fourth quarter of 2023 and 16% above revenue for the full year 2023, driven by higher realized gold prices year-over-year partially offset by fewer ounces sold.

Net loss for the quarter was $19.9 million (loss per share of $0.25). Adjusted net income¹ for the quarter, excluding the impact of $26.3 million in expenses recorded due to the MTL incident, was net income of $6.4 million ($0.08 per share).

Net loss for the full year was $1.3 million (loss per share of $0.02). Adjusted net income¹ for the full year, excluding the impact of $26.3 million in expenses recorded in the fourth quarter due to the MTL incident and $5.6 million in legal provisions expensed in the third quarter, was $30.6 million ($0.39 per share). Net loss and adjusted net income both include $9.2 million of FX gains recorded 2024, reflect the weakening of the Brazilian Real when compared to US dollar through the year.

Operating costs for the quarter and full year were $17.7 million and $73.3 million respectively, compared to operating costs for the quarter and full year of $19.7 million and $79.4 respectively in 2023. Operating costs were lower year-over-year driven by favourable BRL exchange rates, augmented by cost-reduction initiatives which began in late 2023 and continued in 2024, combined with fewer operating costs from Turmalina due to the suspension of operations in early December.

Free cash flow1for the quarter and full year was $9.7 million and $33.3 million respectively and was based on operating cash flow less asset retirement obligation expenditures and sustaining capital expenditures. Free cash flow per ounce1sold for the quarter and full year was $606 and $500 respectively.

As at year end, the Company had cash and cash equivalents of $46.4 million.

Vern Baker, President and CEO of Jaguar, stated: "Our fourth quarter and full year results for 2024 were significantly impacted by the incident at our MTL complex. Despite the loss of nearly a month of production at the Turmalina mine in the fourth quarter, we finished the year in a strong position, supported by robust gold prices and disciplined cost management.

I am incredibly proud of how our team has responded following this incident. Their dedication and commitment to addressing the situation in a timely manner, while maintaining safety and operational integrity, is a testament to the strength of our team and organization. We are actively working to get the necessary approvals to safely resume production at the MTL complex as soon as possible, and are confident that once operational, we will be well-positioned for a strong recovery. Last week, we signed an agreement with the Public Defender's Office of Minas Gerais for the compensation of local community members affected by the incident, which is a positive step towards reopening the Turmalina mine. Negotiations of fines are ongoing. Our position remains centered around the fact that the amounts of the fines are disproportionate to the scale of the event, which only affected a very small area, there were no reported injuries or significant environmental impacts and there was minimal damage to local property and infrastructure.

In the meantime, strategic initiatives are underway to mitigate the impact of the loss of production from the Turmalina mine, including the potential increase in production at the Pilar mine, trial mining and a possible future restart at the Santa Isabel mine and cost optimization measures. Despite this temporary setback, we believe our long-term growth plans are still on track.

We ended the year with a solid cash balance of over $46 million, an increase of $24.3 million from a year ago, the result of strong realized gold prices and disciplined financial management. This strong financial position will help us navigate what we expect to be a challenging first half of 2025 as we manage the continued loss of production from one of our operations and financial impacts arising from this incident.

Long term, our focus remains on operational excellence, cost discipline, and advancing our long-term growth strategy to create lasting value for our shareholders."

Fourth Quarter and Full Year 2024 Results

| | | | | | | | | | | | | | | | | | | | | ($ thousands, except where indicated) | | Three months ended | | | Year ended | | | | | | | | | | | | | | | | | December 31 | | | December 31 | | | | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | | | Financial Data | | | | | | | | | | | | | | | | | | | | Revenue | | $ | 42,364 | | | $ | 35,872 | | | $ | 158,630 | | | $ | 136,528 | | | | | Operating costs | | | 17,745 | | | | 19,707 | | | | 73,270 | | | | 79,384 | | | | | Depreciation | | | 5,930 | | | | 5,977 | | | | 25,860 | | | | 24,659 | | | | | Gross profit | | | 18,689 | | | | 10,188 | | | | 59,500 | | | | 32,485 | | | | | Net (loss) income | | | (19,878 | ) | | | 10,697 | | | | (1,287 | ) | | | 15,854 | | | | | Per share ("EPS") | | | (0.25 | ) | | | 0.14 | | | | (0.02 | ) | | | 0.21 | | | | | Ajusted Net income 1,3 | | | 6,449 | | | | - | | | | 30,648 | | | | - | | | | | Adjusted EPS 1,3 | | | 0.08 | | | | - | | | | 0.39 | | | | - | | | | | EBITDA | | | (14,003 | ) | | | 13,135 | | | | 35,430 | | | | 42,974 | | | | | Adjusted EBITDA 1,2 | | | 8,531 | | | | 10,779 | | | | 62,086 | | | | 44,021 | | | | | Adjusted EBITDA per share 1,2 | | | 0.11 | | | | 0.14 | | | | 0.78 | | | | 0.59 | | | | | Cash operating costs (per ounce sold) 1 | | | 1,106 | | | | 1,089 | | | | 1,102 | | | | 1,126 | | | | | All-in sustaining costs (per ounce sold)1 | | | 1,737 | | | | 1,510 | | | | 1,651 | | | | 1,618 | | | | | Average realized gold price (per ounce)1 | | | 2,641 | | | | 1,982 | | | | 2,386 | | | | 1,936 | | | | | Cash generated from operating activities | | | 15,723 | | | | 9,355 | | | | 57,349 | | | | 36,039 | | | | | Free cash flow1 | | | 9,724 | | | | 4,272 | | | | 33,270 | | | | 11,520 | | | | | Free cash flow (per ounce sold)1 | | | 606 | | | | 236 | | | | 500 | | | | 163 | | | | | Sustaining capital expenditures1 | | | 8,179 | | | | 6,481 | | | | 29,236 | | | | 28,534 | | | | | Non-sustaining capital expenditures1 | | | 3,339 | | | | 5,030 | | | | 11,850 | | | | 15,816 | | | | | Total capital expenditures | | | 11,518 | | | | 11,511 | | | | 41,086 | | | | 44,350 | | | | | 1Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, free cash flow, adjusted net income, adjusted earnings per share, EBITDA and adjusted EBITDA, and adjusted EBITDA per share are non-GAAP financial performance measures with no standard definition under IFRS. Refer to the Non-GAAP Financial Performance Measures section of the MD&A. | | | | | | | | | | | | | | | | | | | | 2Adjusted EBITDA excludes non-cash items such as impairment, foreign exchange, stock-based compensation and write downs. For more details refer to the Non-GAAP Performance Measures section of the MD&A. | | | | | | | | | | | | | | | | | | | | 3Q4 2024 Adjusted Net Income excludes the impact of $26.3 million of expenses related to the Satinoco incident. FY 2024 in addition to the Satinoco expenses, adjusted net income also excludes the impact of labour litigation $3.2 million and civil litigation $2.4 million described further in this document. | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | Three months ended | | | Year ended | | | | | | | | | | | | | | | December 31 | | | December 31 | | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | Operating Data | | | | | | | | | | | | | | | | | | Gold produced (ounces) | | | 14,786 | | | | 18,482 | | | | 64,704 | | | | 70,704 | | | Gold sold (ounces) | | | 16,043 | | | | 18,098 | | | | 66,483 | | | | 70,525 | | | Primary development (metres) | | | 1,601 | | | | 1,123 | | | | 6,223 | | | | 4,959 | | | Exploration development (metres) | | | 80 | | | | 513 | | | | 647 | | | | 1,655 | | | Secondary development (metres) | | | 1,260 | | | | 1,157 | | | | 4,966 | | | | 5,219 | | | Definition, infill, and exploration drilling (metres) | | | 10,961 | | | | 11,285 | | | | 37,173 | | | | 45,934 | |

Non-GAAP performance measures

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 Sustaining Capital and Non-Sustaining Capital expenditures1

| | | | | | | | | | | | | | | | | | | | | ($ thousands) | | Three months ended | | | Year ended | | | | | | | | | | | | | | | | | December 31 | | | December 31 | | | | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | | | Sustaining capital1 | | | | | | | | | | | | | | | | | | | | Primary development | | $ | 5,226 | | | $ | 4,454 | | | $ | 20,429 | | | $ | 19,075 | | | | | Brownfield exploration | | | 352 | | | | 556 | | | | 1,350 | | | | 1,960 | | | | | Mine-site sustaining | | | 2,491 | | | | 1,342 | | | | 7,037 | | | | 6,511 | | | | | Other sustaining capital2 | | | 110 | | | | 129 | | | | 420 | | | | 988 | | | | | Total sustaining capital1 | | | 8,179 | | | | 6,481 | | | | 29,236 | | | | 28,534 | | | | | Non-sustaining capital (including capital projects)1 | | | | | | | | | | | | | | | | | | | | Mine-site non-sustaining | | | 1,159 | | | | 3,632 | | | | 6,693 | | | | 11,804 | | | | | Asset retirement obligation - non-sustaining2 | | | 2,180 | | | | 1,398 | | | | 5,157 | | | | 4,015 | | | | | Other non-sustaining capital1 | | | - | | | | - | | | | - | | | | (3 | ) | | | | Total non-sustaining capital1 | | | 3,339 | | | | 5,030 | | | | 11,850 | | | | 15,816 | | | | | Total capital expenditures | | $ | 11,518 | | | $ | 11,511 | | | $ | 41,086 | | | $ | 44,350 | | | | | 1 Sustaining and non-sustaining capital are non-GAAP financial measures with no standard definition under IFRS. Refer to the non-GAAP 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. | | | | | | | | | | | | | | | | | | |

Reconciliation of Free Cash Flow1

| | | | | | | | | | | | | | | | | | | | | ($ thousands, except where indicated) | | Three months ended | | | Year ended | | | | | | | | | | | | | | | | | December 31 | | | December 31 | | | | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | | | Cash generated from operating activities | | $ | 15,723 | | | $ | 9,355 | | | $ | 57,349 | | | $ | 36,039 | | | | | Adjustments | | | | | | | | | | | | | | | | | | | | Asset Retirement Obligation | | | 2,180 | | | | 1,398 | | | | 5,157 | | | | 4,015 | | | | | Sustaining capital expenditures2 | | | (8,179 | ) | | | (6,481 | ) | | | (29,236 | ) | | | (28,534 | ) | | | | Free cash flow | | $ | 9,724 | | | $ | 4,272 | | | $ | 33,270 | | | $ | 11,520 | | | | | Ounces of gold sold | | | 16,043 | | | | 18,098 | | | | 66,482 | | | | 70,525 | | | | | Free cash flow per ounce sold | | $ | 606 | | | $ | 236 | | | $ | 500 | | | $ | 163 | | | | | 1This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | | | | | | | | | | | | | 2Further detail on the sustaining capital expenditures composition can be found on the reconciliation of sustaining capital and non-sustaining capital expenditures in the non-GAAP reconciliation. | | | | | | | | | | | | | | | | | | |

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

| | | | | | | | | | | | | | | | | | | | | ($ thousands, except where indicated) | | Three months ended | | | Year ended | | | | | | | | | | | | | | | | | December 31 | | | December 31 | | | | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | | | Operating costs | | $ | 17,745 | | | $ | 19,707 | | | $ | 73,270 | | | $ | 79,384 | | | | | General & administration expenses | | | 2,141 | | | | 1,827 | | | | 7,792 | | | | 7,358 | | | | | Corporate stock-based compensation | | | 6 | | | | 51 | | | | 447 | | | | 884 | | | | | Sustaining capital expenditures1 | | | 8,179 | | | | 6,481 | | | | 29,236 | | | | 28,534 | | | | | All-in sustaining cash costs | | | 28,071 | | | | 28,066 | | | | 110,745 | | | | 116,160 | | | | | Reclamation (operating sites) | | | (205 | ) | | | (741 | ) | | | (1,007 | ) | | | (2,032 | ) | | | | All-in sustaining costs | | $ | 27,866 | | | $ | 27,325 | | | $ | 109,738 | | | $ | 114,128 | | | | | Non-sustaining capital expenditures | | | 3,339 | | | | 5,030 | | | | 11,850 | | | | 15,816 | | | | | Exploration and evaluation costs (greenfield) | | | 644 | | | | 544 | | | | 2,114 | | | | 3,295 | | | | | Reclamation (non-operating sites) | | | (282 | ) | | | (460 | ) | | | (799 | ) | | | (1,261 | ) | | | | Care and maintenance (non-operating sites) | | | 184 | | | | 196 | | | | 690 | | | | 734 | | | | | All-in costs | | $ | 31,751 | | | $ | 32,635 | | | $ | 123,593 | | | $ | 132,712 | | | | | Ounces of gold sold | | | 16,043 | | | | 18,098 | | | | 66,482 | | | | 70,525 | | | | | Cash operating costs per ounce sold2 | | $ | 1,106 | | | $ | 1,089 | | | $ | 1,102 | | | $ | 1,126 | | | | | All-in sustaining costs per ounce sold2 | | $ | 1,737 | | | $ | 1,510 | | | $ | 1,651 | | | $ | 1,618 | | | | | All-in costs per ounce sold2 | | $ | 1,979 | | | $ | 1,803 | | | $ | 1,859 | | | $ | 1,882 | | | | | Average realized gold price | | $ | 2,641 | | | $ | 1,982 | | | $ | 2,386 | | | $ | 1,936 | | | | | Cash operating margin per ounce sold | | $ | 1,535 | | | $ | 893 | | | $ | 1,284 | | | $ | 810 | | | | | All-in sustaining margin per ounce sold | | $ | 904 | | | $ | 472 | | | $ | 735 | | | $ | 318 | | | | | 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. | | | | | | | | | | | | | | | | | | |

Reconciliation of Net Income to EBITDA and Adjusted EBITDA1

| | | | | | | | | | | | | | | | | | | | | ($ thousands, except where indicated) | | Three months ended | | | Year ended | | | | | | | | | | | | | | | | | December 31 | | | December 31 | | | | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | | | Net (Loss) Income | | $ | (19,878 | ) | | $ | 10,697 | | | $ | (1,287 | ) | | $ | 15,854 | | | | | Income tax (recovery) expense | | | (574 | ) | | | (4,412 | ) | | | 7,349 | | | | (995 | ) | | | | Finance costs | | | 482 | | | | 840 | | | | 3,371 | | | | 3,368 | | | | | Depreciation and amortization | | | 5,967 | | | | 6,010 | | | | 25,997 | | | | 24,747 | | | | | EBITDA1 | | $ | (14,003 | ) | | $ | 13,135 | | | $ | 35,430 | | | $ | 42,974 | | | | | Impairment charge (reversal) | | | 1,427 | | | | (3,917 | ) | | | 1,427 | | | | (3,917 | ) | | | | Changes in other provisions and VAT taxes | | | (152 | ) | | | 84 | | | | 7,736 | | | | 1,049 | | | | | Satinoco event | | | 26,327 | | | | - | | | | 26,327 | | | | - | | | | | Foreign exchange (gain) loss | | | (5,026 | ) | | | 1,426 | | | | (9,233 | ) | | | 3,031 | | | | | Stock-based compensation | | | 6 | | | | 51 | | | | 447 | | | | 884 | | | | | Financial instruments (gain) | | | (48 | ) | | | - | | | | (48 | ) | | | - | | | | | Adjusted EBITDA1 | | $ | 8,531 | | | $ | 10,779 | | | $ | 62,086 | | | $ | 44,021 | | | | | | | | | | | | | | | | | | | | | | | | | Weighted average outstanding shares | | | 79,308,085 | | | | 79,066,665 | | | | 79,176,793 | | | | 74,596,125 | | | | | Adjusted EBITDA per share1 | | $ | 0.11 | | | $ | 0.14 | | | $ | 0.78 | | | $ | 0.59 | | | | | 1This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | | | | | | | | | | | |

Working Capital1

Qualified Person

Scientific and technical information contained in this press release has been reviewed and approved by Jean-Marc Lopez BSc. PGeo ,FAusIMM, of JML Consulting & Geology EI, who is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

The Iron Quadrangle

The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in 1699-1701 of gold contaminated with iron and platinum-group metals in the southeastern corner of the Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world-class multi-million-ounce gold deposits such as Morro Velho, Cuiabá, and São Bento. Jaguar holds the second largest gold land position in the Iron Quadrangle with over 42,000 hectares.