Jaguar Mining Reports Second Quarter 2025 Financial Results Delivering a Solid Performance from the Pilar Mine

2025-08-14

TSX - Toronto Stock Exchange · Gold · Arsenic · Antimony · Silver · Canada

TORONTO, ON / ACCESS Newswire/ August 14, 2025 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG)(OTCQX:JAGGF) today filed its second quarter results, the highlights of which are included in this news release. The interim condensed consolidated financial statements for the quarter ended June 30, 2025 and accompanying management's discussion and analysis 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.

Second Quarter 2025 Highlights

All financial and operating results for the second quarter reflect contributions solely from the Company's Pilar mine, its only operating mine during the period. This compares to the second quarter of 2024, when the Company had two operating mines: Pilar and Turmalina. The Turmalina mine remains temporarily suspended following a slump of material at the dry-stack facility that occurred at the MTL complex on December 7, 2024. Rehabilitation work to ensure the stability of the Satinoco pile is well underway, and the Company currently expects the resumption of operations at Turmalina in the first quarter of 2026.

Gold productionfor the quarter totalled 10,973 ounces, entirely from the Pilar mine, compared to 16,829 ounces from both Pilar and Turmalina in the second quarter of 2024. The year-over-year variance reflects a 14% increase in head grade, offset by a 45% reduction in ore tonnes processed. Production from Pilar increased by 11% compared to the first quarter of 2025, driven by operational efficiency improvements at the mine.

Gold soldfor the quarter was 10,986 ounces, compared to 19,022 ounces sold in the second quarter of 2024. Realized gold price¹ increased to $3,264 per ounce, representing a 39% increase from the $2,354 per ounce realized in the second quarter of 2024.

Cash operating costs¹ were $1,191 per ounce of gold sold and all-in sustaining costs(AISC)¹ were $1,814 per ounce, representing increases of 11% and 18%, respectively, compared to the second quarter of 2024. These increases mainly reflect lower sales volumes spreading fixed costs over fewer ounces.

Revenuefor the quarter was $35.8 million, reflecting contributions solely from the Pilar mine, compared to $44.8 million in the second quarter of 2024, when revenue included ounces produced and sold from both the Pilar and Turmalina mines. Despite the lower number of ounces sold, the impact on revenue was partially offset by higher realized gold price year-over year.

Operating costsfor the quarter were $13.1 million, compared to $19.9 million in the second quarter of 2024.

Net lossfor the quarter was $6.6 million, or $0.08 per share, compared to a net income of $13.5 million, or $0.17 per share, in the second quarter of 2024. Adjusted net income¹ for the quarter, excluding the impact of $23.5 million in expenses recorded due to the incident at the MTL complex, was $16.8 million, or $0.21 per share.

Free cash flow1for the quarter was $11.3 million, compared to $15.2 million in the second quarter of 2024. Free cash flow is calculated as operating cash flow plus asset retirement obligation expenditures, less sustaining capital. On a per-ounce bases, free cash flow increased to $1,031 per ounce of gold sold in the second quarter of 2025 compared to $801 per ounce of gold sold in the second quarter of 2024.

Cash position and working capital¹

As of June 30, 2025, the Company had cash and cash equivalents of $48.3 million, representing a 4.1% increase from $46.4 million as of December 31, 2024 mainly reflecting the impact of higher realized gold prices.

As of June 30, 2025, working capital was $11.1 million, compared to working capital of $13.7 million as of December 31, 2024.

Luis Albano Tondo, CEO of Jaguar, stated_: "The second quarter of 2025 represented a pivotal period for Jaguar, as we continued to operate exclusively from our Pilar mine following the temporary suspension of Turmalina late last year. We were encouraged by Pilar's robust operational performance, driven by higher head grades and ongoing efficiency improvements. While total production was lower year-over-year due to Turmalina's absence, Pilar's output increased by 3% year-over-year and 11% compared to the first quarter of 2025. A significantly higher realized gold price partially offset the impact of lower volumes on our margins. Despite reporting a net loss for the quarter, adjusted net income of $16.8 million-excluding expenses associated with the MTL incident-highlights the strength of Pilar's operating performance. Additionally, strong free cash flow per ounce underlines our ability to generate value, even as a single-asset producer._

Subsequent to the quarter-end, we successfully resolved a significant environmental fine (see press release dated July 14, 2025), marking an important milestone as we advance toward the planned restart of Turmalina, targeted for the first quarter of 2026. We were also pleased to announce further exploration success at Pilar's BA zone (see press release dated August 5, 2025), where recent drilling returned a standout intercept of 12.80 g/t Au over 25.00 meters (320.00 GT - Grade x Thickness), confirming the presence of robust, high-grade mineralization at depth. With the BA zone expected to contribute approximately 50% of Pilar's future production, these results reinforce our confidence in the mine's long-term outlook.

These recent achievements underscore our commitment to disciplined execution, operational excellence, and the creation of sustainable, long-term value. Looking ahead, we remain focused not only on realizing the full potential of our existing assets through organic growth, but also on pursuing select strategic growth opportunities that could further enhance shareholder value and strengthen our position as a leading mid-tier gold producer in Brazil."

[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.

Second Quarter 2025 Results

| ($ thousands, except where indicated) | | Three months ended | | | Six months ended | | | | | | | | | | | | | | | June 30 | | | June 30 | | | | | | | | | | | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | | | Financial Data | | | | | | | | | | | | | | | | | | Revenue | | $ | 35,826 | | | $ | 44,779 | | | $ | 63,115 | | | $ | 77,356 | | | Operating costs | | | 13,079 | | | | 19,897 | | | | 23,628 | | | | 38,212 | | | Depreciation | | | 3,215 | | | | 7,828 | | | | 5,991 | | | | 14,989 | | | Gross profit | | | 19,532 | | | | 17,054 | | | | 33,496 | | | | 24,155 | | | Net (loss) income | | | (6,614 | ) | | | 13,469 | | | | (8,233 | ) | | | 16,295 | | | Per share ("EPS") | | | (0.08 | ) | | | 0.17 | | | | (0.10 | ) | | | 0.21 | | | Adjusted Net income 1,3 | | | 16,838 | | | | 13,469 | | | | 20,973 | | | | 16,295 | | | Adjusted EPS 1,3 | | | 0.21 | | | | 0.17 | | | | 0.26 | | | | 0.21 | | | EBITDA | | | (729 | ) | | | 25,159 | | | | 2,324 | | | | 37,174 | | | Adjusted EBITDA 1,2 | | | 29,614 | | | | 22,381 | | | | 44,290 | | | | 33,701 | | | Adjusted EBITDA per share 1,2 | | | 0.37 | | | | 0.28 | | | | 0.56 | | | | 0.43 | | | Cash operating costs (per ounce sold) 1 | | | 1,191 | | | | 1,046 | | | | 1,151 | | | | 1,101 | | | All-in sustaining costs (per ounce sold)1 | | | 1,814 | | | | 1,517 | | | | 1,740 | | | | 1,558 | | | Average realized gold price (per ounce)1 | | | 3,264 | | | | 2,354 | | | | 3,078 | | | | 2,228 | | | Cash generated from operating activities | | | 12,339 | | | | 20,766 | | | | 12,080 | | | | 28,875 | | | Free cash flow1 | | | 11,327 | | | | 15,233 | | | | 8,763 | | | | 18,739 | | | Free cash flow (per ounce sold)1 | | | 1,031 | | | | 801 | | | | 427 | | | | 540 | | | Sustaining capital expenditures1 | | | 4,051 | | | | 6,301 | | | | 6,979 | | | | 11,406 | | | Non-sustaining capital expenditures1 | | | 3,782 | | | | 4,505 | | | | 5,195 | | | | 7,642 | | | Total capital expenditures | | | 7,833 | | | | 10,806 | | | | 12,174 | | | | 19,048 | | | 1Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, free cash flow, EBITDA and adjusted EBITDA, adjusted net income and adjusted EPS 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, fair value adjustments on short-term investments and write downs. For more details refer to the Non-GAAP Performance Measures section of the MD&A. | | | | | | | | | | | | | | | | | | 3Adjusted Net income does not include Satinoco incident expenses for the three and six-month ended June 30, 2025, of $23.5 million $29.6 million respectively. | | | | | | | | | | | | | | | | |

| | | Three months ended | | | Six months ended | | | | | | | | | | | | | | | June 30 | | | June 30 | | | | | | | | | | | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | | | Operating Data | | | | | | | | | | | | | | | | | | Gold produced (ounces) | | | 10,973 | | | | 16,829 | | | | 20,897 | | | | 33,006 | | | Gold sold (ounces) | | | 10,986 | | | | 19,022 | | | | 20,530 | | | | 34,714 | | | Primary development (metres) | | | 628 | | | | 1,273 | | | | 1,066 | | | | 2,202 | | | Exploration development (metres) | | | - | | | | 679 | | | | - | | | | 1,157 | | | Secondary development (metres) | | | 860 | | | | 1,130 | | | | 2,665 | | | | 2,212 | | | Definition, infill, and exploration drilling (metres) | | | 5,755 | | | | 9,229 | | | | 11,194 | | | | 16,072 | |

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 to non-sustaining capital expenditures1

| ($ thousands) | | Three months ended | | | Six months ended | | | | | | | | | | | | | | | June 30 | | | June 30 | | | | | | | | | | | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | | | Sustaining capital1 | | | | | | | | | | | | | | | | | | Primary development | | $ | 2,492 | | | $ | 4,124 | | | $ | 4,180 | | | $ | 7,844 | | | Brownfield exploration | | | 202 | | | | 312 | | | | 433 | | | | 640 | | | Mine-site sustaining | | | 1,154 | | | | 1,764 | | | | 1,980 | | | | 2,713 | | | Other sustaining capital2 | | | 203 | | | | 101 | | | | 386 | | | | 209 | | | Total sustaining capital 1 | | | 4,051 | | | | 6,301 | | | | 6,979 | | | | 11,406 | | | Non-sustaining capital (including capital projects)1 | | | | | | | | | | | | | | | | | | Mine-site non-sustaining | | | 714 | | | | 3,737 | | | | 1,503 | | | | 6,374 | | | Asset retirement obligation - non-sustaining2 | | | 3,039 | | | | 768 | | | | 3,662 | | | | 1,270 | | | Other non-sustaining capital1 | | | 29 | | | | - | | | | 30 | | | | (2 | ) | | Total non-sustaining capital 1 | | | 3,782 | | | | 4,505 | | | | 5,195 | | | | 7,642 | | | Total capital expenditures | | $ | 7,833 | | | $ | 10,806 | | | $ | 12,174 | | | $ | 19,048 | | | 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 | | | Six months ended | | | | | | | | | | | | | | | June 30 | | | June 30 | | | | | | | | | | | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | | | Cash generated from operating activities | | $ | 12,339 | | | $ | 20,766 | | | $ | 12,080 | | | $ | 28,875 | | | Adjustments | | | | | | | | | | | | | | | | | | Asset Retirement Obligation | | | 3,039 | | | | 768 | | | | 3,662 | | | | 1,270 | | | Sustaining capital expenditures2 | | | (4,051 | ) | | | (6,301 | ) | | | (6,979 | ) | | | (11,406 | ) | | Free cash flow | | $ | 11,327 | | | $ | 15,233 | | | $ | 8,763 | | | $ | 18,739 | | | Ounces of gold sold | | | 10,986 | | | | 19,022 | | | | 20,530 | | | | 34,714 | | | Free cash flow per ounce sold | | $ | 1,031 | | | $ | 801 | | | $ | 427 | | | $ | 540 | | | 1This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | | | | | | | | | | | 2Further details 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 | | | Six months ended | | | | | | | | | | | | | | | June 30 | | | June 30 | | | | | | | | | | | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | | | Operating costs | | $ | 13,079 | | | $ | 19,897 | | | $ | 23,628 | | | $ | 38,212 | | | General & administration expenses 3 | | | 2,196 | | | | 2,097 | | | | 4,551 | | | | 3,896 | | | Corporate stock-based compensation | | | 615 | | | | 428 | | | | 618 | | | | 436 | | | Sustaining capital expenditures1 | | | 4,051 | | | | 6,301 | | | | 6,979 | | | | 11,406 | | | All-in sustaining cash costs | | | 19,941 | | | | 28,723 | | | | 35,776 | | | | 53,950 | | | Reclamation (operating sites) | | | (12 | ) | | | 125 | | | | (56 | ) | | | 145 | | | All-in sustaining costs | | $ | 19,929 | | | $ | 28,848 | | | $ | 35,720 | | | $ | 54,095 | | | Non-sustaining capital expenditures | | | 3,782 | | | | 4,505 | | | | 5,195 | | | | 7,642 | | | Exploration and evaluation costs (greenfield) | | | 462 | | | | 378 | | | | 857 | | | | 960 | | | Reclamation (non-operating sites) | | | 1,818 | | | | (50 | ) | | | 1,306 | | | | (63 | ) | | Care and maintenance (non-operating sites) 4 | | | 9,957 | | | | 150 | | | | 18,276 | | | | 340 | | | All-in costs | | $ | 35,948 | | | $ | 33,831 | | | $ | 61,354 | | | $ | 62,974 | | | Ounces of gold sold | | | 10,986 | | | | 19,022 | | | | 20,530 | | | | 34,714 | | | Cash operating costs per ounce sold2 | | $ | 1,191 | | | $ | 1,046 | | | $ | 1,151 | | | $ | 1,101 | | | All-in sustaining costs per ounce sold2 | | $ | 1,814 | | | $ | 1,517 | | | $ | 1,740 | | | $ | 1,558 | | | All-in costs per ounce sold2 | | $ | 3,272 | | | $ | 1,779 | | | $ | 2,989 | | | $ | 1,814 | | | Average realized gold price | | $ | 3,264 | | | $ | 2,354 | | | $ | 3,078 | | | $ | 2,228 | | | Cash operating margin per ounce sold | | $ | 2,073 | | | $ | 1,308 | | | $ | 1,927 | | | $ | 1,127 | | | All-in sustaining margin per ounce sold | | $ | 1,450 | | | $ | 837 | | | $ | 1,338 | | | $ | 670 | | | 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. | | | | | | | | | | | | | | | | | | 3Does not include G&A expenses related to Onças de Pitangui (Q2 2025: $83 and YTD: $229). | | | | | | | | | | | | | | | | | | 4Includes care and maintenance for Turmalina (resumption expenses and disbursements related to environmental and communities) and care and maintenance costs for Paciência and Roça Grande mines. | | | | | | | | | | | | | | | | |

Reconciliation of Net Income to EBITDA and Adjusted EBITDA1

| ($ thousands, except where indicated) | | Three months ended | | | Six months ended | | | | | | | | | | | | | | | June 30 | | | June 30 | | | | | | | | | | | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | | | Net (loss) Income | | $ | (6,614 | ) | | $ | 13,469 | | | $ | (8,233 | ) | | $ | 16,295 | | | Income tax expense | | | 537 | | | | 3,273 | | | | 1,131 | | | | 4,522 | | | Finance costs | | | 2,098 | | | | 556 | | | | 3,364 | | | | 1,301 | | | Depreciation and amortization | | | 3,250 | | | | 7,861 | | | | 6,062 | | | | 15,056 | | | EBITDA1 | | $ | (729 | ) | | $ | 25,159 | | | $ | 2,324 | | | $ | 37,174 | | | Changes in other provisions and VAT taxes | | | 3,047 | | | | 309 | | | | 3,453 | | | | 817 | | | Satinoco event | | | 23,452 | | | | - | | | | 29,206 | | | | - | | | Foreign exchange loss (gain) | | | 3,785 | | | | (3,515 | ) | | | 9,675 | | | | (4,726 | ) | | Stock-based compensation | | | 615 | | | | 428 | | | | 618 | | | | 436 | | | Financial instruments (gain) | | | (556 | ) | | | - | | | | (986 | ) | | | - | | | Adjusted EBITDA1 | | $ | 29,614 | | | $ | 22,381 | | | $ | 44,290 | | | $ | 33,701 | | | | | | | | | | | | | | | | | | | | | Weighted average outstanding shares | | | 79,313,603 | | | | 79,093,609 | | | | 79,312,658 | | | | 79,080,137 | | | Adjusted EBITDA per share1 | | $ | 0.37 | | | $ | 0.28 | | | $ | 0.56 | | | $ | 0.43 | | | 1This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | | | | | | | | | |

Working capital1

| | | June 30 | | | December 31 | | | | | ($ thousands) | | 2025 | | | 2024 | | | | | Cash and cash equivalents | | $ | 48,286 | | | $ | 46,357 | | | Other current assets: | | | | | | | | | | Short term investment | | | 2,426 | | | | 1,438 | | | Restricted cash | | | 1,074 | | | | 923 | | | Inventory | | | 15,517 | | | | 15,343 | | | Recoverable taxes | | | 3,226 | | | | 3,933 | | | Other accounts receivable | | | 904 | | | | 328 | | | Prepaid expenses and advances | | | 1,752 | | | | 2,226 | | | | | | | | | | | | | Current liabilities: | | | | | | | | | | Accounts payable and accrued liabilities | | | (16,398 | ) | | | (15,803 | ) | | Notes payable | | | (2,012 | ) | | | (3,044 | ) | | Lease liabilities | | | (1,332 | ) | | | (1,363 | ) | | Current tax liability | | | (350 | ) | | | (1,422 | ) | | Other taxes payable | | | (293 | ) | | | (487 | ) | | Reclamation provisions | | | (6,204 | ) | | | (8,585 | ) | | Legal and other provisions | | | (35,538 | ) | | | (26,174 | ) | | Working capital1 | | $ | 11,058 | | | $ | 13,670 | | | 1This is a non-GAAP financial performance measure with no standard definition under IFRS. | | | | | | | | |