Jaguar Mining Reports Financial Results for the Fourth Quarter and Full Year 2023

TORONTO, ON / ACCESSWIRE / March 25, 2024 / 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, 2023 and 2022, accompanying management's discussion and analysis and annual information form can be accessed by visiting the Company's website at https://jaguarmining.com or its profile page on SEDAR+ at www.sedarplus.ca . All figures are in US Dollars, unless otherwise expressed.

Fourth Quarter and Full Year 2023 Highlights

• Gold production for the quarter was 18,482 ounces, gold sold was 18,098 ounces at cash operating costs¹ of $1,089 per ounce of gold sold and all-in sustaining costs¹ of $1,510 per ounce of gold sold. Realized gold prices were $1,982 per ounce.
• Gold production for the full year was 70,704 ounces, gold sold was 70,525 ounces at cash operating costs¹ of $1,126 per ounce of gold sold and all-in sustaining costs¹ of $1,618 per ounce of gold sold. Realized gold prices were $1,936 per ounce.
• Revenue for the quarter and full year was $35.9 million and $136.5 million respectively, in line with revenue in the fourth quarter of 2022 and 4% lower compared to full year 2022, driven by fewer ounces produced and sold which was mostly offset by higher realized gold prices.
• Net income for the quarter and full year was $10.7 million ($0.14 per share) and $15.9 million ($0.21 per share) respectively. Net income for the quarter included credits from the recognition of $5.8 million of a deferred tax asset and impairment reversals of $3.9 million, partially offset by a $1.0 million charge for a provision against a current receivable balance.
• Operating costs for the quarter and full year were $19.7 million and $79.4 million respectively, compared to operating costs for the quarter and full year of $21.4 million and $84.2 million respectively in 2022.
• Free cash flow ¹ for the quarter and full year was $4.3 million and $11.5 million respectively and was based on operating cash flow plus asset retirement obligation expenditures, less capital. Free cash flow per ounce ¹ sold for the quarter and full year was $236 and $163 respectively.
• As at year end, the Company had cash and cash equivalents of $22.0 million.

Vern Baker, President and CEO of Jaguar Mining stated: " We are pleased to report our fourth quarter and full year results for 2023. Strong gold prices and cost optimizations helped offset the many headwinds we faced this past year, including inflation and lower production, and enabled us to end the year with a cash position of $22 million. Production in the second half of the year stabilized and we realized the benefits from adjustments and work that began earlier in the year. Our cost management efforts were evident in the fourth quarter as we reduced our all-in sustaining costs both on a per-tonne and a per-ounce basis despite fewer tonnes being processed. We expect to leverage this better cost structure as we grow our production over the next several years.

During the year, we focused on developing our future growth pipeline with a full year of lateral development at our Faina project, where we reached the resource area at the end of 2023. Our focus on the development of Faina will be at the forefront again in 2024 as both infrastructure and ore development will continue throughout the year. The first stoping is expected in the second half of the year and ounce production will increase beyond that point as we ramp up operations. We added further to this growth pipeline with the purchase of IAMGOLD´s Brazilian assets which include the Onças de Pitangui project. This project increased our resource base and advanced our corporate strategy to leverage our extensive nearby infrastructure. We have continued the work started by IAMGOLD on permitting the Onças de Pitangui project, and expect that project development will begin in 2026, followed by first gold that same year and reaching full production in 2028."

2024 Outlook

In 2024, the Company expects production levels at the Turmalina and Pilar mines to be consistent with the fourth quarter of 2023. It is expected that Faina will contribute to production in the second half of the year, resulting in an increase in overall production from 2023 levels. All-in sustaining costs¹ are expected to improve throughout 2024, with higher production in the second half pushing unit costs per ounce down.

Vern Baker, President and CEO of Jaguar Mining added: " We have a great opportunity in front of us as Faina ramps up to full production over the next few years. Our opening up of the Pilar BA-Torre structure has invigorated the Pilar mine´s performance and will contribute to its production in 2024 and ramp up production in 2025 and beyond. With permitting processes moving forward at Onças de Pitangui and other small resources, we expect to build on our base and grow our mine production over the next few years to more fully utilize our existing infrastructure."

¹This 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.

Fourth Quarter and Full Year Results

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 Free Cash Flow ¹

Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold ¹