Form 20-F ☒
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Form 40-F ☐
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Exhibit Number
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Description of Exhibit
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Interim Financial Statements/Report
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99.2 |
MD&A
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99.3 | 52-109FV2 - Certification of Interim Filings - CEO | |
99.4 | 52-109FV2 - Certification of Interim Filings - CFO |
JAGUAR MINING INC.
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|||
Date: May 26, 2015
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By:
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/s/ Derrick Weyrauch
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Name: Derrick Weyrauch
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|||
Title: Chief Financial Officer
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March 31,
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December 31,
|
||||||||
2015
|
2014
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||||||||
ASSETS
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|||||||||
Current assets
|
|||||||||
Cash and cash equivalents
|
$ | 10,258 | $ | 7,161 | |||||
Inventory
|
Note 4
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13,411 | 19,175 | ||||||
Recoverable taxes
|
Note 5
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3,530 | 10,614 | ||||||
Other accounts receivable
|
1,533 | 1,636 | |||||||
Prepaid expenses and advances
|
1,086 | 1,639 | |||||||
Derivatives
|
460 | - | |||||||
Total Current Assets
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30,278 | 40,225 | |||||||
Non-current assets
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|||||||||
Property, plant and equipment
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Note 6
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65,198 | 63,773 | ||||||
Mineral exploration projects
|
Note 7
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68,645 | 68,544 | ||||||
Recoverable taxes
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Note 5
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15,464 | 21,368 | ||||||
Other assets
|
1,546 | 1,354 | |||||||
Total assets
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$ | 181,131 | $ | 195,264 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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|||||||||
Current liabilities
|
|||||||||
Accounts payable and accrued liabilities
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Note 8
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$ | 14,024 | $ | 16,049 | ||||
Notes payable
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Note 9
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26,478 | 29,413 | ||||||
Reclamation provisions
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Note 10
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1,656 | 1,202 | ||||||
Derivatives
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- | 197 | |||||||
Other provisions and liabilities
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Note 11
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20,519 | 16,605 | ||||||
Total Current Liabilities
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62,677 | 63,466 | |||||||
Non-current liabilities
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|||||||||
Notes payable
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Note 9
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1,473 | 1,538 | ||||||
Deferred income taxes
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9,897 | 8,338 | |||||||
Other taxes payable
|
102 | 101 | |||||||
Reclamation provisions
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17,463 | 20,172 | |||||||
Other liabilities
|
36 | 61 | |||||||
Total liabilities
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$ | 91,648 | $ | 93,676 | |||||
SHAREHOLDERS' EQUITY
|
|||||||||
Capital Stock
|
434,465 | 434,465 | |||||||
Stock options
|
592 | 525 | |||||||
Deferred shares units
|
1,082 | 965 | |||||||
Contributed surplus
|
18,666 | 18,666 | |||||||
Deficit
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(365,782 | ) | (352,836 | ) | |||||
Hedging Reserve
|
460 | (197 | ) | ||||||
Total shareholders' equity
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89,483 | 101,588 | |||||||
Financial liabilities and other commitments
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|||||||||
Total liabilities and shareholders' equity
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$ | 181,131 | $ | 195,264 | |||||
Going Concern
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Note 2
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||||||||
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|||||||||
On behalf of the Board:
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|||||||||
(signed) “Richard Falconer” (signed) “George M. Bee”
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|||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Condensed Interim Consolidated Financial Statements
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Jaguar Mining Inc. | 1 |
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Three Months Ended
March 31,
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|||||||||
2015
|
2014
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||||||||
Gold Sales
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$ | 28,747 | $ | 31,100 | |||||
Production costs
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Note 14
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(20,133 | ) | (21,337 | ) | ||||
Depletion and amortization
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(6,404 | ) | (8,676 | ) | |||||
Gross profit
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2,210 | 1,087 | |||||||
Exploration and evaluation costs
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50 | 39 | |||||||
Care and maintenance costs (Paciencia mine)
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284 | 606 | |||||||
Stock-based compensation
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184 | 45 | |||||||
General and administration expenses
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2,281 | 4,037 | |||||||
Restructuring fees
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- | 2,907 | |||||||
Amortization
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243 | 270 | |||||||
Adjustment to legal and VAT provisions
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Note 15
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7,771 | 4,019 | ||||||
Other operating expenses
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925 | 1,249 | |||||||
Operating loss
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(9,528 | ) | (12,085 | ) | |||||
Foreign exchange gain
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(1,924 | ) | (982 | ) | |||||
Financial instruments loss
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579 | - | |||||||
Finance costs
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1,124 | 4,819 | |||||||
Other non-operating expenses (recoveries)
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(26 | ) | (161 | ) | |||||
Loss before income taxes
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(9,281 | ) | (15,761 | ) | |||||
Current income tax expense
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672 | 348 | |||||||
Deferred income tax expense (recovery)
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2,993 | (354 | ) | ||||||
Total income tax expense (recovery)
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3,665 | (6 | ) | ||||||
Net loss
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(12,946 | ) | (15,755 | ) | |||||
Other comprehensive loss
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657 | (313 | ) | ||||||
Total comprehensive income (loss)
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(12,289 | ) | (16,068 | ) | |||||
Earnings per share
|
|||||||||
Income (loss) per share
|
|||||||||
Basic
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Note 13
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$ | (0.12 | ) | $ | (15.76 | ) | ||
Diluted
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Note 13
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$ | (0.12 | ) | $ | (15.76 | ) | ||
Weighted average shares outstanding
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|||||||||
Basic
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111,111,038 | 1,000,000 | |||||||
Diluted
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111,111,038 | 1,000,000 | |||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Condensed Interim Consolidated Financial Statements
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Jaguar Mining Inc. | 2 |
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Three Months Ended
March 31,
|
||||||||
2015
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2014
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|||||||
OPERATING ACTIVITIES
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||||||||
Net loss for the year
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$ | (11,904 | ) | $ | (15,755 | ) | ||
Adjusted for non-cash items
|
||||||||
Unrealized foreign exchange gain
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(1,883 | ) | (2,304 | ) | ||||
Stock-based compensation expense
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184 | 45 | ||||||
Interest expense
|
799 | 4,363 | ||||||
Accretion of interest expense
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325 | 456 | ||||||
Deferred income tax expense (recovery)
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2,993 | (354 | ) | |||||
Depletion and amortization
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6,647 | 8,946 | ||||||
Loss on disposition of property, plant and equipment
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22 | 8 | ||||||
Write-down of inventory
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32 | 904 | ||||||
Provision for VAT and other taxes
|
1,111 | 2,738 | ||||||
Legal provisions
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5,612 | - | ||||||
Reclamation expenditure
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(159 | ) | (235 | ) | ||||
3,779 | (1,188 | ) | ||||||
Adjusted for changes in non-cash operating assets and liabilities
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||||||||
Inventory
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2,949 | (1,509 | ) | |||||
Other accounts receivable
|
103 | 1,815 | ||||||
Recoverable taxes
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9,685 | (330 | ) | |||||
Prepaid expenses and other assets
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361 | 555 | ||||||
Accounts payable and accrued liabilities
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(1,961 | ) | 2,532 | |||||
Taxes payable
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1 | 345 | ||||||
Other provisions
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(2,740 | ) | 389 | |||||
Net cash provided by operating activities
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12,177 | 2,609 | ||||||
FINANCING ACTIVITIES
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||||||||
Repayment of debt
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(3,200 | ) | - | |||||
Decrease in restricted cash
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- | 109 | ||||||
Interest paid
|
(718 | ) | (814 | ) | ||||
Other liabilities
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(26 | ) | 10 | |||||
Net cash used in financing activities
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(3,944 | ) | (695 | ) | ||||
INVESTING ACTIVITIES
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||||||||
Mineral exploration projects
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(101 | ) | (188 | ) | ||||
Purchase of property, plant and equipment
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(5,280 | ) | (4,136 | ) | ||||
Proceeds from disposition of property, plant and equipment
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37 | 31 | ||||||
Net cash used in investing activities
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(5,344 | ) | (4,293 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
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208 | 373 | ||||||
Net increase (decrease) in cash and cash equivalents
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3,097 | (2,006 | ) | |||||
Cash and cash equivalents at the beginning of year
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7,161 | 9,015 | ||||||
Cash and cash equivalents at the end of year
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$ | 10,258 | $ | 7,009 | ||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Condensed Interim Consolidated Financial Statements
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Jaguar Mining Inc. | 3 |
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Contributed Surplus
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Deficit
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Hedging Reserve1
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Total Equity (Deficiency)
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|||||||||||||||||||||||||||||||||||||
Common Shares
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Stock Options
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Deferred Shares Units
|
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|||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Options
|
Amount
|
Units
|
Amount
|
|||||||||||||||||||||||||||||||||||
Balance as at January 1, 2014
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86,396,356 | $ | 371,077 | 1,604,028 | $ | 917 | - | - | $ | 17,638 | (483,699 | ) | 508 | $ | (93,559 | ) | ||||||||||||||||||||||||
Stock options
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- | - | - | 45 | - | - | - | - | - | 45 | ||||||||||||||||||||||||||||||
Other comprehensive income
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- | - | - | - | - | - | - | - | (313 | ) | (313 | ) | ||||||||||||||||||||||||||||
Net loss
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- | - | - | - | - | - | - | (15,755 | ) | - | (15,755 | ) | ||||||||||||||||||||||||||||
Balance as at March 31, 2014
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86,396,356 | $ | 371,077 | 1,604,028 | $ | 962 | - | $ | - | $ | 17,638 | $ | (499,454 | ) | $ | 195 | $ | (109,582 | ) | |||||||||||||||||||||
Balance as at January 1, 2015
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111,111,038 | $ | 434,465 | 2,679,735 | $ | 525 | 1,600,566 | $ | 965 | $ | 18,666 | $ | (352,836 | ) | $ | (197 | ) | $ | 101,588 | |||||||||||||||||||||
Stock options
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- | - | - | 67 | - | - | - | - | - | 67 | ||||||||||||||||||||||||||||||
Deferred shares units
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- | - | - | - | - | 117 | - | - | - | 117 | ||||||||||||||||||||||||||||||
Other comprehensive loss
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- | - | - | - | - | - | - | - | 657 | 657 | ||||||||||||||||||||||||||||||
Net loss
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- | - | - | - | - | - | - | (12,946 | ) | - | (12,946 | ) | ||||||||||||||||||||||||||||
Balance as at March 31, 2015
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111,111,038 | $ | 434,465 | 2,679,735 | $ | 592 | 1,600,566 | $ | 1,082 | $ | 18,666 | $ | (365,782 | ) | $ | 460 | $ | 89,483 | ||||||||||||||||||||||
1. Hedging reserve Note 12(d) | ||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 4 |
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1.
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Nature of business and basis of preparation:
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2.
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Going Concern
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Condensed Interim Consolidated Financial Statements
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Jaguar Mining Inc. | 5 |
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3.
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Significant accounting policies:
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a)
|
Future accounting policy changes issued but not yet in effect:
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4.
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Inventory:
|
March 31,
|
December 31,
|
|||||||
|
2015
|
2014
|
||||||
Raw material
|
$ | 2,438 | $ | 2,524 | ||||
Mine operating supplies
|
6,395 | 6,472 | ||||||
Ore in stockpiles
|
101 | 258 | ||||||
Gold in process
|
2,053 | 3,664 | ||||||
Unrefined gold at refinery
|
2,424 | 4,456 | ||||||
Finished goods (gold bullion)
|
- | 1,801 | ||||||
Total Inventory
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$ | 13,411 | $ | 19,175 | ||||
Three Months Ended
March 31,
|
||||||||
2015 | 2014 | |||||||
Inventory amounts recorded in production costs
|
$ | 20,125 | $ | 19,830 | ||||
Inventory amounts recorded in depletion and amortization
|
6,404 | 8,676 | ||||||
Three Months Ended
March 31,
|
||||||||
2015 | 2014 | |||||||
Inventory write down
|
$ | 32 | $ | 904 |
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 6 |
|
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5.
|
Recoverable taxes:
|
December 31,
2014
|
Additions/
Reversals
|
Accretion
|
Tax
refunded
|
Applied to
taxes payable
|
Foreign
exchange
|
March 31,
2015
|
||||||||||||||||||||||
Value added taxes and other1
|
$ | 26,659 | $ | 2,446 | $ | - | $ | (6,063 | ) | $ | (2,799 | ) | $ | (5,626 | ) | $ | 14,617 | |||||||||||
Provision for VAT and other2
|
(7,515 | ) | (1,111 | ) | 260 | - | 1,470 | (6,896 | ) | |||||||||||||||||||
Net VAT and other taxes
|
$ | 19,144 | $ | 1,335 | $ | 260 | $ | (6,063 | ) | $ | (2,799 | ) | $ | (4,156 | ) | $ | 7,721 | |||||||||||
ICMS3
|
$ | 15,086 | $ | 1,013 | $ | - | $ | - | $ | (34 | ) | $ | (2,794 | ) | $ | 13,271 | ||||||||||||
Reserve for ICMS3
|
(2,248 | ) | (137 | ) | - | - | - | 387 | (1,998 | ) | ||||||||||||||||||
Net ICMS
|
$ | 12,838 | $ | 876 | $ | - | $ | - | $ | (34 | ) | $ | (2,407 | ) | $ | 11,273 | ||||||||||||
Total recoverable taxes
|
$ | 31,982 | $ | 2,211 | $ | 260 | $ | (6,063 | ) | $ | (2,833 | ) | $ | (6,563 | ) | $ | 18,994 | |||||||||||
Less: current portion
|
10,614 | 3,530 | ||||||||||||||||||||||||||
Non-current portion
|
$ | 21,368 | $ | 15,464 | ||||||||||||||||||||||||
Receivable from sales of
ICMS tax credits 4
|
$ | 889 | $ | 736 |
1)
|
The Company is required to pay certain taxes in Brazil that are based on purchases of consumables and property, plant and equipment. These taxes are recoverable from the Brazilian tax authorities through various methods, including as cash refund or as a credit against current taxes payable.
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2)
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The Company records a provision against its recoverable taxes given limited methods available to recover such taxes and the length of time it will take to recover such taxes. The provision reduces the net carrying amount of value added taxes and other taxes to their estimated present value based on the manner and timing of expected recovery, discounted at the Brazilian Central Bank’s Selic rate.
|
|
3)
|
ICMS – Imposto sobre circulação de mercadorias e prestação de serviços is a type of value added tax which can either be sold to other companies (usually at a discount rate of approximately 13%) or be used to purchase specified machinery and equipment. The ICMS credits can only be realized in the state where they were generated; in the case of Jaguar, in the State of Minas Gerais, Brazil.
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4)
|
Recorded as part of Other accounts receivable is $736,000 related to ICMS tax credits sold to and still receivable from other companies (December 31, 2014 - $889,000).
|
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 7 |
|
|
6.
|
Property, plant and equipment (“PP&E”):
|
Plant
|
Vehicles
|
Equipment
|
Leasehold1
|
CIP2
|
Mining
properties
|
Total
|
||||||||||||||||||||||
Cost
|
||||||||||||||||||||||||||||
Balance as at January 1, 2015
|
$ | 13,495 | $ | 11,522 | $ | 229,701 | $ | 2,380 | $ | 2,476 | $ | 353,616 | $ | 613,190 | ||||||||||||||
Additions
|
- | - | 813 | - | 627 | 3,908 | 5,348 | |||||||||||||||||||||
Disposals
|
- | - | (82 | ) | - | - | (320 | ) | (402 | ) | ||||||||||||||||||
Reclassify within PP&E
|
(30 | ) | - | - | - | 30 | - | - | ||||||||||||||||||||
Balance as at March 31, 2015
|
$ | 13,465 | $ | 11,522 | $ | 230,432 | $ | 2,380 | $ | 3,133 | $ | 357,204 | $ | 618,136 | ||||||||||||||
Balance as at January 1, 2014
|
$ | 15,717 | $ | 13,793 | $ | 230,879 | $ | 2,380 | $ | 3,150 | $ | 333,731 | $ | 599,650 | ||||||||||||||
Additions
|
- | 449 | 3,182 | - | 2,351 | 21,667 | 27,649 | |||||||||||||||||||||
Disposals
|
(3,755 | ) | (2,797 | ) | (5,429 | ) | - | (346 | ) | - | (12,327 | ) | ||||||||||||||||
Transfer from assets held for sale
|
1,533 | 77 | 1,069 | - | (2,679 | ) | - | - | ||||||||||||||||||||
Reclassify within PP&E
|
- | - | - | - | - | (1,782 | ) | (1,782 | ) | |||||||||||||||||||
Balance as at December 31, 2014
|
$ | 13,495 | $ | 11,522 | $ | 229,701 | $ | 2,380 | $ | 2,476 | $ | 353,616 | $ | 613,190 | ||||||||||||||
Accumulated amortization and impairment
|
||||||||||||||||||||||||||||
Balance as at January 1, 2015
|
$ | 11,277 | $ | 9,234 | $ | 202,443 | $ | 1,923 | $ | 1,142 | $ | 323,398 | $ | 549,417 | ||||||||||||||
Amortization for the period
|
171 | 243 | 1,625 | 116 | - | 1,709 | 3,864 | |||||||||||||||||||||
Impairment loss
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Disposals
|
- | - | (23 | ) | - | - | (320 | ) | (343 | ) | ||||||||||||||||||
Balance as at March 31, 2015
|
$ | 11,448 | $ | 9,477 | $ | 204,045 | $ | 2,039 | $ | 1,142 | $ | 324,787 | $ | 552,938 | ||||||||||||||
Balance as at January 1, 2014
|
$ | 10,891 | $ | 9,575 | $ | 132,766 | $ | 1,459 | $ | - | $ | 289,007 | $ | 443,698 | ||||||||||||||
Amortization for the year
|
923 | 1,842 | 16,308 | 464 | - | 10,756 | 30,293 | |||||||||||||||||||||
Impairment loss
|
3,275 | 50 | 58,740 | - | 1,142 | 23,635 | 86,842 | |||||||||||||||||||||
Disposals
|
(3,812 | ) | (2,233 | ) | (5,371 | ) | - | - | - | (11,416 | ) | |||||||||||||||||
Balance as at December 31, 2014
|
$ | 11,277 | $ | 9,234 | $ | 202,443 | $ | 1,923 | $ | 1,142 | $ | 323,398 | $ | 549,417 | ||||||||||||||
Carrying amounts
|
||||||||||||||||||||||||||||
As at March 31, 2015
|
$ | 2,017 | $ | 2,045 | $ | 26,387 | $ | 341 | $ | 1,991 | $ | 32,417 | $ | 65,198 | ||||||||||||||
As at December 31, 2014
|
$ | 2,218 | $ | 2,288 | $ | 27,258 | $ | 457 | $ | 1,334 | $ | 30,218 | $ | 63,773 | ||||||||||||||
1Refers to leasehold improvements in corporate office in Brazil.
|
||||||||||||||||||||||||||||
2Refers to Construction in progress. |
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 8 |
|
|
7.
|
Mineral exploration projects:
|
Gurupi
|
Turmalina
|
Caeté
|
Pedra Branca
|
Total
|
||||||||||||||||
Balance as at January 1, 2015
|
$ | 68,139 | $ | - | $ | - | $ | 405 | $ | 68,544 | ||||||||||
Additions
|
101 | - | - | - | 101 | |||||||||||||||
Balance as at March 31, 2015
|
$ | 68,240 | $ | - | $ | - | $ | 405 | $ | 68,645 | ||||||||||
Balance as at January 1, 2014
|
$ | 67,494 | $ | - | $ | - | $ | 391 | $ | 67,885 | ||||||||||
Additions
|
645 | - | 314 | 14 | 973 | |||||||||||||||
Reclass from PP&E
|
- | - | 1,782 | - | 1,782 | |||||||||||||||
Impairment loss
|
- | - | (2,096 | ) | - | (2,096 | ) | |||||||||||||
Balance as at December 31, 2014
|
$ | 68,139 | $ | - | $ | - | $ | 405 | $ | 68,544 |
8.
|
Accounts payable and accrued liabilities:
|
March 31,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
Accounts payable (suppliers)
|
$ | 8,810 | $ | 9,212 | ||||
Accrued payroll
|
4,899 | 6,483 | ||||||
Interest payable
|
8 | 72 | ||||||
Other
|
307 | 282 | ||||||
Total accounts payable and accrued liabilities
|
$ | 14,024 | $ | 16,049 |
9.
|
Notes payable:
|
March 31,
2015
|
December 31, 2014
|
|||||||
Notes payable - current portion
|
||||||||
Bank indebtedness
|
$ | 14,753 | $ | 14,954 | ||||
Vale note (a)
|
579 | 458 | ||||||
Renvest credit facility (b)
|
11,146 | 14,001 | ||||||
26,478 | 29,413 | |||||||
Notes payable - non-current portion
|
||||||||
Vale note (a)
|
1,473 | 1,538 | ||||||
1,473 | 1,538 | |||||||
Total notes payable
|
$ | 27,951 | $ | 30,951 |
a)
|
Vale note
|
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 9 |
|
|
b)
|
Renvest Credit Facility:
|
Black-Scholes model
|
Assumptions
|
|||
Remaining contractual life
|
0.75 year
|
|||
Interest rate
|
11 | % | ||
Volatililty
|
70 | % | ||
Risk free rate
|
0.46 | % | ||
Share price
|
$ | 0.24 | ||
Conversion price
|
$ | 1.79 |
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 10 |
|
|
10.
|
Reclamation provision
|
December 31,
2014
|
Additions
(Reversals)
|
Accretion
|
Payments
|
Foreign
exchange
|
March 31,
2015
|
|||||||||||||||||||
Reclamation provision
|
$ | 21,374 | $ | 68 | $ | 529 | $ | (159 | ) | $ | (2,693 | ) | $ | 19,119 | ||||||||||
Less: current portion
|
1,202 | 1,656 | ||||||||||||||||||||||
Non-current portion
|
$ | 20,172 | $ | 17,463 |
11.
|
Other provisions and contingent liabilities:
|
As at March 31, 2015, the Company has recognized a provision of $20.5 million (December 31, 2014 - $16.6 million) representing management’s best estimate of expenditures required to settle present obligations, as noted in the table below. The ultimate outcome or actual cost of settlement may vary materially from management estimates.
|
December 31,
2014
|
Additions
(Reversals)
|
Payments
|
Foreign
exchange
|
March 31,
2015
|
||||||||||||||||
Labour litigation
|
$ | 14,491 | $ | 6,950 | $ | (54 | ) | $ | (2,491 | ) | $ | 18,896 | ||||||||
Civil litigation
|
1,560 | - | (112 | ) | (269 | ) | 1,179 | |||||||||||||
Other provisions
|
554 | (110 | ) | - | - | 444 | ||||||||||||||
$ | 16,605 | $ | 6,840 | $ | (166 | ) | $ | (2,760 | ) | $ | 20,519 |
12.
|
Capital stock:
|
a)
|
Common shares:
|
b)
|
Stock options:
|
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 11 |
|
|
Number of
options
|
Exercise
Price
|
Dividend
yield
|
Risk-free
interest rate
|
Forfeiture
rate
|
Expected
life (years)
|
Volatility
factor
|
Fair
value
|
|||||||||||||||||||||||||
Stock options 2015
|
2,679,735 | $ | 1.35 | - | 0.46 | % | 0 | % | 3.48 | 75 | % | $ | 0.30 | |||||||||||||||||||
Stock options 2014
|
2,679,735 | $ | 1.35 | - | 1.36 | % | 0 | % | 3.87 | 75 | % | $ | 0.33 |
c)
|
Deferred share units – “DSUs”:
|
d)
|
Hedging reserve:
|
Settlement Date
|
Ounces Hedged
|
Average US$ per ounce
|
Unrealized gain
|
|||||||||
May 26, 2015
|
11,586 | $ | 1,227 | $ | 460 |
13)
|
Basic and diluted earnings per share:
|
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 12 |
|
|
Three Months Ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
Numerator
|
||||||||
Net income (loss)
|
$ | (12,946 | ) | $ | (15,755 | ) | ||
Net income (loss) for the purpose of diluted income (loss) per share
|
$ | (12,946 | ) | $ | (15,755 | ) | ||
Denominator
|
||||||||
Weighted average number of common shares outstanding - basic and diluted
|
111,111,038 | 1,000,000 | ||||||
Basic and diluted loss per share
|
$ | (0.12 | ) | $ | (15.76 | ) |
Three Months Ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
Options
|
1,994,735 | 1,604,028 | ||||||
Convertible option Renvest Credit Facility
|
2,808,989 | - | ||||||
Deferred share units
|
1,224,594 | - | ||||||
Antidilutive shares
|
6,028,318 | 1,604,028 |
14)
|
Production costs:
|
Three Months Ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
Direct mining and processing costs
|
(19,145 | ) | $ | (18,813 | ) | |||
Royalty expense and CFEM taxes
|
(980 | ) | (1,017 | ) | ||||
Inventory write-down
|
(32 | ) | (904 | ) | ||||
Other
|
24 | (603 | ) | |||||
Total cost of production
|
$ | (20,133 | ) | $ | (21,337 | ) |
15)
|
Adjustment to legal and VAT provisions:
|
Three Months Ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
Legal provisions
|
$ | 6,660 | $ | 1,281 | ||||
Changes in provision against recoverability of VAT and other taxes
|
1,111 | 2,738 | ||||||
Total adjustment to legal provisions and VAT taxes
|
$ | 7,771 | $ | 4,019 |
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 13 |
|
|
16)
|
Commitments:
|
As at March 31, 2015
|
Less than
1 year
|
1 - 3 years
|
3 - 5 years
|
More than
5 years
|
Total
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Accounts payable and accrued liabilities
|
$ | 14,024 | $ | - | $ | - | $ | - | $ | 14,024 | ||||||||||
Notes payable
|
- | |||||||||||||||||||
Principal
|
26,653 | 1,000 | 1,000 | 250 | 28,903 | |||||||||||||||
Interest
|
1,193 | - | - | - | 1,193 | |||||||||||||||
Other liabilities
|
36 | - | - | - | 36 | |||||||||||||||
Total financial liabilities
|
$ | 41,906 | $ | 1,000 | $ | 1,000 | $ | 250 | $ | 44,156 | ||||||||||
Other Commitments
|
||||||||||||||||||||
Operating lease agreements
|
$ | 188 | $ | 76 | $ | - | $ | - | $ | 264 | ||||||||||
Suppliers' agreements
|
- | |||||||||||||||||||
Mine operations1
|
687 | - | - | - | 687 | |||||||||||||||
Other provisions and liabilities
|
20,519 | - | - | - | 20,519 | |||||||||||||||
Reclamation provisions2
|
1,721 | 13,370 | 1,090 | 10,386 | 26,567 | |||||||||||||||
Total other commitments
|
$ | 23,115 | $ | 13,446 | $ | 1,090 | $ | 10,386 | $ | 48,037 | ||||||||||
Total
|
$ | 65,021 | $ | 14,446 | $ | 2,090 | $ | 10,636 | $ | 92,193 | ||||||||||
1 The Company has the contractual right to cancel the mine operation contracts with 30 days advance notice. The amount included in the commitments table represents the contractual amount due within 30 days.
|
||||||||||||||||||||
2 Reclamation provisions are not adjusted for inflation and are not discounted. |
17)
|
Financial risk management and financial instruments:
|
a)
|
Liquidity risk:
|
b)
|
Derivative financial instruments:
|
The Company assesses its financial instruments and non-financial contracts on a regular basis to determine the existence of any embedded derivatives which would be required to be accounted for separately at fair value and to ensure that any embedded derivatives are accounted for in accordance with the Company’s policy.
|
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 14 |
|
|
|
·
|
Forward sales:
|
c)
|
Financial instruments:
|
March 31,
2015
|
December 31,
2014
|
|||||||
Fair value of notes payable
|
$ | 27,951 | $ | 30,951 |
Level 1
|
Level 2
|
Level 3
|
||||||||||
March 31, 2015
|
||||||||||||
Derivative assets
|
- | 460 | - | |||||||||
December 31, 2014
|
||||||||||||
Derivative assets
|
$ | - | $ | 197 | $ | - |
18)
|
Related party transactions:
|
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 15 |
|
|
Condensed Interim Consolidated Financial Statements
|
Jaguar Mining Inc. | 16 |
|
|
CORE BUSINESS
|
2
|
Q1 2015 FINANCIAL & OPERATING HIGHLIGHTS
|
3
|
BACKGROUND
|
5
|
REVIEW OF OPERATING AND FINANCIAL RESULTS
|
11
|
TAXES
|
17
|
REVIEW OF FINANCIAL CONDITION
|
19
|
FINANCIAL RESTRUCTURING PLAN– CCAA PROCEEDINGS
|
22
|
LITIGATION AND CONTINGENCIES
|
25
|
RISKS AND UNCERTAINTIES
|
27
|
OUTSTANDING SHARE DATA
|
29
|
NON-IFRS PERFORMANCE MEASURES
|
30
|
CRITICAL ACCOUNTING ESTIMATES
|
33
|
CHANGES IN ACCOUNTING POLICIES INCLUDING INITIAL ADOPTION
|
33
|
GLOSSARY OF TERMS
|
34
|
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL REPORTING
|
34
|
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
35
|
CAUTIONARY NOTE TO U.S. INVESTORS
|
35
|
CORPORATE DIRECTORY
|
37
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|1
|
Abbreviation
|
Period
|
Abbreviation
|
Period
|
YTD 2015
|
January 1, 2015 – March 31, 2015
|
YTD 2014
|
January 1, 2014 – March 31, 2014
|
Q1 2015
|
January 1, 2015 – March 31, 2015
|
Q1 2014
|
January 1, 2014 – March 31, 2014
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|2
|
($ thousands, except where indicated)
|
For the three months ended
March 31,
|
|||||||
2015
|
2014
|
|||||||
Financial Data
|
||||||||
Revenue
|
$ | 28,747 | $ | 31,100 | ||||
Cost of sales
|
20,133 | 21,337 | ||||||
Gross margin (excluding depreciation)1
|
8,614 | 9,763 | ||||||
Net (loss) income
|
(12,946 | ) | (15,755 | ) | ||||
Per share (“EPS”)
|
(0.12 | ) | (15.8 | ) | ||||
EBITDA1
|
(1,510 | ) | (1,996 | ) | ||||
Adjusted EBITDA2
|
7,056 | 2,972 | ||||||
Sustaining capital expenditures1
|
5,275 | 3,946 | ||||||
Non-sustaining capital expenditures1
|
106 | 378 | ||||||
Total Capital Expenditures3
|
5,381 | 4,324 | ||||||
Operating Data
|
||||||||
Average realized gold price ($ per ounce)1
|
$ | 1,187 | $ | 1,286 | ||||
Gold sold (ounces)
|
24,228 | 24,181 | ||||||
Gold produced (ounces)
|
21,336 | 23,359 | ||||||
Definition drilling (meters)
|
8,968 | 6,471 | ||||||
Cash operating costs (per ounce produced)1
|
$ | 808 | $ | 923 | ||||
Cash operating costs (per ounce sold)1
|
$ | 831 | $ | 882 | ||||
All-in sustaining costs (per ounce sold)1
|
$ | 1,171 | $ | 1,221 | ||||
1 Average realized gold price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, EBITDA and Adjusted EBITDA are non-gaap financial performance measures with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A.
|
||||||||
2 Adjusted 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.
|
||||||||
3 These amounts are presented on accrual basis. Capital expenditures are included in our calculation of all-in sustaining costs.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|3
|
($ thousands)
|
March 31,
2015
|
December 31,
2014
|
||||||
Cash and equivalents
|
$ | 10,258 | $ | 7,161 | ||||
Gold bullion
|
- | 1,801 | ||||||
Total cash and gold bullion
|
$ | 10,258 | $ | 8,962 |
|
·
|
Revenues during the first quarter of 2015 were $28.7 million, compared with revenues of $31.1 million for the corresponding 2014 period;
|
|
o
|
The average realized gold price per ounce during the first quarter of 2015 was $1,187, compared to $1,286 for the corresponding 2014 period;
|
|
·
|
24,228 ounces of gold were sold during the first quarter of 2015, while 24,181 ounces of gold were sold during the corresponding 2014 period;
|
|
·
|
Adjusted EBITDA for the first quarter of 2015 was $7.1 million compared to $3.0 million for the same period in 2014;
|
|
·
|
One of our top priorities in 2014 was to restore the Company’s balance sheet. As part of this action, on April 22, 2014, the Company concluded a series of actions that (i) extinguished $268.5 million of indebtedness, (ii) obtained interest forgiveness of $10.5 million, (iii) extended the repayment terms of its senior secured facility, (iv) concluded a $50.0 million equity financing and (v) changed its executive management team;
|
|
·
|
Total debt outstanding as at March 31, 2015 was $28.0 million (of which $14.8 million related to senior secured facility with Renvest), compared to $31.0 million as at December 31, 2014;
|
|
·
|
As at March 31, 2015 the Company had cash on hand of $10.3 million ($7.1 million as at December 31, 2014);
|
|
·
|
In the first quarter of 2015, the Company received a cash refund of R$16.7 million (approximately $6.0 million) in respect of Federal VAT input tax credits for years 2009 through 2011, for its Mineração Turmalina Ltda. ("MTL") operating subsidiary. In 2014, the Company had initiated procedures to obtain approval and/or refund for a total amount of R$29.1 million of input tax credits. Following an extensive audit process by the tax authorities, 81.6% of the input tax credits were approved for refund. 29.7% of the approved amount was applied as a credit to reduce other federal taxes payable for prior years, while the remaining claim was refunded in cash;
|
|
·
|
During the quarter, the Company announced its intention to issue up to $20.0 million principal amount of Debentures on a non-brokered private placement basis (the “Offering”). On May 4, 2015, the Company announced amendment of certain terms and conditions of the Offering. The conversion price of the convertible debentures was adjusted to C$0.25 per share and the maturity period to 2 years.
|
|
·
|
The Company produced 21,336 ounces of gold in the first quarter of 2015, compared to 23,359 ounces in the corresponding 2014 period:
|
|
o
|
Turmalina produced 11,796 ounces of gold in the first quarter of 2015, compared to 11,374 ounces in the corresponding 2014 period,
|
|
o
|
Caeté produced 9,540 ounces of gold in in the first quarter of 2015, compared to 11,985 in ounces in the corresponding 2014 period,
|
|
·
|
A total of 226,000 tonnes was processed in the first quarter of 2015 (first quarter of 2014: 268,000 tonnes) at an average head grade of 3.3 grams per tonne (first quarter of 2014 - 2.9 grams per tonne):
|
|
o
|
Turmalina processed 111,000 tonnes (first quarter of 2014: 111,000 tonnes) at an average head grade of 3.6 grams per ton (first quarter of 2014: 3.2 grams per tonne)
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|4
|
|
o
|
Caeté processed 115,000 tonnes (first quarter of 2014: 157,000 tonnes) at an average head grade of 3.2 grams per ton (first quarter of 2014: 2.7 grams per tonne)
|
|
·
|
Consistent with our efforts to decrease production costs, tonnes mined decreased in the first quarter of 2015 by 16% compared to the same period in 2014, while the average head grade milled increased by 14%.
|
|
·
|
For the first quarter of 2015, the average gold recovery rate was 89%, compared to 88% for the comparable 2014 period.
|
|
·
|
During first quarter of 2015, cash operating costs per ounce of gold produced were $808 compared to $923 during the same period in 2014, a decrease of $115 per ounce or 12%. The cost decrease was primarily due to improvement in average grade milled, lower tonnes processed and favorable foreign exchange movements as a result of devaluation of the Brazilian Reais (average exchange rate: Q1 2015: R$2.87 per US$ compared to Q1 2014: R$2.37 per US$). These favorable cost variances were partially offset by higher costs of preventive maintenance of mining equipment.
|
|
·
|
In the first quarter of 2015, sustaining capital expenditures were up by $1.3 million or 33% at $5.2 million compared to $3.9 million during the corresponding period in 2014, primarily due to higher capitalized brownfield exploration at Pilar mine and major rebuilds for machinery and equipment.
|
|
·
|
During the first quarter of 2015, all-in sustaining costs per ounce sold (AISC) were $1,171 compared to $1,221 per ounce during for the corresponding 2014 period, a decrease of $50 per ounce or 4%. The decrease in AISC’s during the first quarter of 2015 as compared to same period in 2014 is due to a reduction in general and administrative expenditures by $1.7 million, which was partially offset by $1.3 million of increased capital expenditures, as noted above.
|
|
·
|
During the first quarter of 2015, 8,968 meters of definition and reserve drilling was conducted at both Turmalina and Pilar mines, compared to 6,471 meters drilled in the corresponding 2014 period.
|
|
·
|
In April 2015, the Company announced the initial results from its ongoing exploration drilling campaign:
|
|
o
|
Turmalina: On April 8, 2015, the Company announced multiple high-grade drill intercepts generated within the current indicated resource envelope. Significant drill intercepts include 23.71 grams per tonne Au ("g/t Gold") over 14 meters, including 41.27 grams per tonne Au over 7.6 meters, 23.62 grams per tonne Au over 8.8 meters and 20.15 grams per tonne Au over 8.7 meters.
|
|
o
|
Pilar: On April 27, 2015, the Company announced multiple high-grade drill intercepts, including 18.22 grams per tonne Au ("g/t Gold") over 7.4 meters, 14.04 grams per tonne Au over 8.7 meters, 10.63 grams per tonne Au over 13.6 meters, 20.98 grams per tonne Au over 3.7 meters and 18.22 grams per tonne Au over 7.4 meters, including 27.19 grams per tonne Au over 4.3 meters.
|
|
·
|
In April 2015, the Company filed the National Instrument 43-101 compliant reserve and resource estimate for the Turmalina mine. The reserves increased by 51% to 217,000 ounces. The drill data base cut-off date for the reserve estimate was June 30, 2014. Reserves were calculated at $1,200 per ounce and at $R 2.5 to US$ 1 exchange rate.
|
|
·
|
During the first quarter, Jaguar announced that its board of directors (the "Board") formed a special committee ("Special Committee") to initiate a strategic review process to explore alternatives for the enhancement of shareholder value.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|5
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|6
|
|
·
|
The large dimension crosscuts (5m x 5m);
|
|
·
|
The brow at the entrance to the 4m x 4m orebody drift;
|
|
·
|
The location of these ramp crosscut/orebody intersections in the higher grade, thus more wide zone of the orebody;
|
|
·
|
The need to stack these crosscuts above each other due to alignment of crosscut rib pillar. This limits flexibility to site the ramp crosscut in better ground;
|
|
·
|
The higher stress conditions related to the stacking of the crosscuts.
|
|
·
|
Nut-cage type cable bolts on a grid pattern with straps between the cable bolts;
|
|
·
|
Fiber-reinforced shotcrete in the medium term (contractors);
|
|
·
|
Mesh installed by mesh handler on newly commissioned roofbolter in the short term;
|
|
·
|
Where the conditions are particularly bad, footwall drifts are being installed.
|
|
·
|
Reduced dimension (4-m by 4-m) of cross-cut as the excavation encounters the weaker ground in the ore body
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|7
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|8
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|9
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|10
|
Three months ended | ||||||||||||||||||||||||||||||||
($ thousands, except where indicated)
|
Q1 2015 | Q4 2014 | Q3 2014 | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Q2 2013 | ||||||||||||||||||||||||
Revenues
|
$ | 28,747 | $ | 25,766 | $ | 29,015 | $ | 30,481 | $ | 31,100 | $ | 28,461 | $ | 32,082 | $ | 32,427 | ||||||||||||||||
Production costs
|
(20,133 | ) | (23,508 | ) | (22,312 | ) | (23,274 | ) | (21,337 | ) | (22,073 | ) | (20,451 | ) | (23,960 | ) | ||||||||||||||||
Gross margin (excluding depreciation)2
|
8,614 | 2,258 | 6,703 | 7,207 | 9,763 | 6,388 | 11,631 | 8,467 | ||||||||||||||||||||||||
Net income (loss)
|
(12,946 | ) | (90,530 | ) | (9,491 | ) | 246,646 | (15,755 | ) | (166,472 | ) | (13,192 | ) | (64,041 | ) | |||||||||||||||||
Cashflows from operating activities
|
12,177 | (1,156 | ) | (253 | ) | (8,045 | ) | 2,609 | (3,199 | ) | 5,072 | (131 | ) | |||||||||||||||||||
Total assets
|
181,131 | 195,264 | 293,356 | 308,220 | 285,372 | 294,788 | 441,659 | 458,129 | ||||||||||||||||||||||||
Total liabilities
|
91,648 | 93,676 | 101,325 | 107,522 | 394,954 | 388,347 | 369,297 | 373,999 | ||||||||||||||||||||||||
Average realized gold price (per ounce)2
|
$ | 1,187 | $ | 1,204 | $ | 1,279 | $ | 1,280 | $ | 1,288 | $ | 1,261 | $ | 1,331 | $ | 1,415 | ||||||||||||||||
Cash operating cost per oz produced2
|
$ | 808 | $ | 894 | $ | 969 | $ | 958 | $ | 923 | $ | 889 | $ | 847 | $ | 931 | ||||||||||||||||
1 Sum of all the quarters may not add up to the annual total due to rounding.
|
||||||||||||||||||||||||||||||||
2 Average realized gold price, gross margin (excluding depreciation) and cash operating costs are all non-gaap financial performance measures with no standard definition under IFRS. For further information, refer to the Non-IFRS Financial Performance Measures section of the MD&A.
|
($ thousands, except where indicated)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Revenue
|
$ | 28,747 | $ | 31,100 | (8 | %) | ||||||
Ounces sold
|
24,228 | 24,181 | 0 | % | ||||||||
Average realized gold price1
|
$ | 1,187 | $ | 1,286 | (8 | %) | ||||||
1 Average realized gold price is a non-gaap financial performance measure with no standard definition under IFRS. For further information, refer to the Non-IFRS Financial Performance Measures section of the MD&A.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|11
|
($ thousands, except where indicated)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Direct mining and processing cost
|
$ | 19,145 | $ | 18,813 | 2 | % | ||||||
Royalties, production taxes and others
|
988 | 2,524 | (61 | %) | ||||||||
Royalty expense and CFEM taxes
|
980 | 1,017 | (4 | %) | ||||||||
NRV adjustment and others
|
8 | 1,507 | (99 | %) | ||||||||
Cost of sales
|
$ | 20,133 | $ | 21,337 | (6 | %) | ||||||
Cash operating costs (per ounce produced)1
|
$ | 808 | $ | 923 | (12 | %) | ||||||
1 Cash operating costs is a non-gaap financial performance measure with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A.
|
Three months ended | ||||||||||||||||||||||||||||||||
($ thousands, except where indicated)
|
Q1 2015 | Q4 2014 | Q3 2014 | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Q2 2013 | ||||||||||||||||||||||||
Tonnes of ore processed ('000)
|
226,000 | 258,000 | 249,000 | 263,000 | 268,000 | 258,000 | 298,000 | 271,000 | ||||||||||||||||||||||||
Average head grade (g/t)1
|
3.28 | 3.02 | 3.13 | 3.11 | 2.89 | 2.96 | 3.06 | 2.96 | ||||||||||||||||||||||||
Average recovery rate (%)
|
89 | % | 89 | % | 89 | % | 89 | % | 88 | % | 88 | % | 88 | % | 88 | % | ||||||||||||||||
Gold (ozs)
|
||||||||||||||||||||||||||||||||
Produced
|
21,336 | 22,456 | 22,374 | 23,867 | 23,359 | 21,956 | 26,300 | 22,503 | ||||||||||||||||||||||||
Sold
|
24,228 | 21,400 | 22,681 | 24,002 | 24,181 | 22,503 | 24,111 | 22,920 | ||||||||||||||||||||||||
Average realized gold price ($ per oz)2
|
$ | 1,187 | $ | 1,204 | $ | 1,279 | $ | 1,280 | $ | 1,288 | $ | 1,261 | $ | 1,331 | $ | 1,415 | ||||||||||||||||
Cash operating cost (per oz produced)2
|
$ | 808 | $ | 894 | $ | 969 | $ | 958 | $ | 923 | $ | 889 | $ | 847 | $ | 931 | ||||||||||||||||
1The 'average head grade' represents the recalculated head-grade milled.
|
||||||||||||||||||||||||||||||||
2 Cash operating costs and average realized cost are a non-gaap financial performance measure with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|12
|
Three months ended | ||||||||||||||||||||||||||||||||
($ thousands, except where indicated)
|
Q1 2015 | Q4 2014 | Q3 2014 | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Q2 2013 | ||||||||||||||||||||||||
Tonnes of ore processed ('000)
|
111,000 | 117,000 | 107,000 | 107,000 | 111,000 | 114,000 | 122,000 | 123,000 | ||||||||||||||||||||||||
Average head grade (g/t)1
|
3.59 | 3.60 | 3.69 | 4.14 | 3.24 | 3.13 | 3.46 | 3.01 | ||||||||||||||||||||||||
Average recovery rate (%)
|
90 | % | 90 | % | 91 | % | 91 | % | 88 | % | 89 | % | 89 | % | 88 | % | ||||||||||||||||
Gold (ozs)
|
||||||||||||||||||||||||||||||||
Produced
|
11,796 | 12,067 | 11,336 | 13,190 | 11,374 | 10,451 | 12,308 | 10,345 | ||||||||||||||||||||||||
Sold
|
13,196 | 11,243 | 11,710 | 13,481 | 11,513 | 10,850 | 10,850 | 10,061 | ||||||||||||||||||||||||
Cash operating cost (per oz produced)2
|
$ | 649 | $ | 656 | $ | 750 | $ | 696 | $ | 857 | $ | 822 | $ | 758 | $ | 923 | ||||||||||||||||
1The 'average head grade' represents the recalculated head-grade milled. | ||||||||||||||||||||||||||||||||
2 Cash operating costs is a non-gaap financial performance measure with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A.
|
($ thousands)
|
Three months ended
March 31,
|
|||||||
2015
|
2014
|
|||||||
Sustaining Capital1
|
||||||||
Primary development
|
$ | 1,697 | $ | 1,197 | ||||
Exploration - Brownfield
|
291 | 28 | ||||||
Minesite sustaining
|
1,316 | 6 | ||||||
Total sustaining capital1
|
3,304 | 1,231 | ||||||
Total non-sustaining capital1
|
- | 44 | ||||||
Total capital expenditures
|
$ | 3,304 | $ | 1,275 | ||||
1Sustaining and non-sustaining capital are non-gaap financial measures with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A. Capital expenditures are in included in our calculation of all-in sustaining costs and all-in costs.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|13
|
Three months ended | ||||||||||||||||||||||||||||||||
($ thousands, except where indicated)
|
Q1 2015 | Q4 2014 | Q3 2014 | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Q2 2013 | ||||||||||||||||||||||||
Caeté - Tonnes of ore processed (t)
|
115,000 | 141,000 | 142,000 | 156,000 | 157,000 | 144,000 | 176,000 | 148,000 | ||||||||||||||||||||||||
Caeté - Average head grade (g/t)1
|
3.16 | 2.57 | 2.71 | 2.40 | 2.65 | 2.82 | 2.78 | 2.92 | ||||||||||||||||||||||||
Average recovery rate (%)
|
89 | % | 88 | % | 88 | % | 88 | % | 88 | % | 88 | % | 88 | % | 88 | % | ||||||||||||||||
Gold (ozs)
|
||||||||||||||||||||||||||||||||
Produced
|
9,540 | 10,389 | 11,038 | 10,677 | 11,985 | 11,505 | 13,992 | 12,158 | ||||||||||||||||||||||||
Sold
|
11,032 | 10,157 | 10,971 | 10,521 | 12,668 | 11,653 | 13,261 | 12,859 | ||||||||||||||||||||||||
Cash operating cost (per oz produced)2
|
$ | 1,005 | $ | 1,170 | $ | 1,195 | $ | 1,281 | $ | 986 | $ | 950 | $ | 925 | $ | 938 | ||||||||||||||||
1The 'average head grade' represents the recalculated head-grade milled.
|
||||||||||||||||||||||||||||||||
2 Cash operating costs is a non-gaap financial performance measure with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A.
|
($ thousands, except where indicated)
|
Three months ended
March 31,
|
|||||||
2015
|
2014
|
|||||||
Sustaining Capital1
|
||||||||
Primary development2
|
$ | 390 | $ | 1,455 | ||||
Exploration - Brownfield
|
1,462 | 262 | ||||||
Minesite sustaining
|
119 | 998 | ||||||
Total sustaining capital1
|
1,971 | 2,715 | ||||||
Total non-sustaining capital1
|
- | - | ||||||
Total capital expenditures
|
$ | 1,971 | $ | 2,715 | ||||
1Sustaining and non-sustaining capital are non-gaap financial measures with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A. Capital expenditures are in included in our calculation of all-in sustaining costs and all-in costs.
|
||||||||
2This represents primary development costs incurred at Pilar hanging wall for the 2015 exploration drilling program. |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|14
|
($ thousands)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Exploration and evaluation costs
|
$ | 50 | $ | 39 | 28 | % | ||||||
Care & maintenance costs (Paciência mine)
|
284 | 606 | (53 | %) | ||||||||
Stock-based compensation
|
184 | 45 | 309 | % | ||||||||
General and administration expenses
|
2,281 | 4,037 | (43 | %) | ||||||||
Restructuring costs
|
- | 2,907 | (100 | %) | ||||||||
Amortization
|
243 | 270 | (10 | %) | ||||||||
Changes to legal provisions and Recoverable VAT
|
7,771 | 4,019 | 93 | % | ||||||||
Other expenses
|
925 | 1,249 | (26 | %) | ||||||||
Total operating expenses
|
$ | 11,738 | $ | 13,172 | (11 | %) |
($ thousands)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Corporate office (Toronto)
|
$ | 1,240 | $ | 1,770 | (30 | %) | ||||||
Brazil office (Belo Horizonte)
|
970 | 2,172 | (55 | %) | ||||||||
Other
|
71 | 95 | (25 | %) | ||||||||
Total G&A expenses
|
$ | 2,281 | $ | 4,037 | (43 | %) |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|15
|
($ thousands)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Restructuring costs
|
$ | - | $ | 2,907 | (100 | %) |
($ thousands)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Changes to legal provisions
|
$ | 6,660 | $ | 1,281 | 420 | % | ||||||
Changes to recoverable taxes provision
|
1,111 | 2,738 | (59 | %) | ||||||||
Changes to legal and recoverable taxes provisions
|
$ | 7,771 | $ | 4,019 | 93 | % |
($ thousands)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Foreign exchange loss
|
$ | (1,924 | ) | $ | (982 | ) | 96 | % | ||||
Financial instruments gain
|
579 | - | 100 | % | ||||||||
Finance costs
|
1,124 | 4,819 | (77 | %) | ||||||||
Other non-operating expenses (recoveries)
|
(26 | ) | (161 | ) | (84 | %) | ||||||
Non Operating expenses (income)
|
$ | (247 | ) | $ | 3,676 | (107 | %) |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|16
|
($ thousands)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Interest expense
|
$ | 799 | $ | 4,363 | (82 | %) | ||||||
Accretion
|
325 | 456 | (29 | %) | ||||||||
Total finance cost
|
$ | 1,124 | $ | 4,819 | (77 | %) |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|17
|
($ thousands)
|
Three months ended
March 31,
|
|||||||||||
2015
|
2014
|
Change
|
||||||||||
Current income tax expense
|
$ | 672 | $ | 348 | 93 | % | ||||||
Deferred income tax expense
|
2,993 | (354 | ) | 100 | % | |||||||
Income tax expense
|
$ | 3,665 | $ | (6 | ) | 100 | % |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|18
|
March 31,
2015
|
December 31,
2014
|
|||||||
Cash and cash equivalents
|
$ | 10,258 | $ | 7,161 | ||||
Gold bullion
|
- | 1,801 | ||||||
Cash and gold bullion
|
$ | 10,258 | $ | 8,962 | ||||
Non-cash working capital
|
||||||||
Other current assets
|
20,020 | 31,263 | ||||||
Current liabilities
|
(62,677 | ) | (63,466 | ) | ||||
Working capital
|
$ | (32,399 | ) | $ | (23,241 | ) |
($ thousands)
|
Three months ended
March 31,
|
|||||||
|
2015
|
2014
|
||||||
Operating inflows (outflows)
|
$ | 12,177 | $ | 2,609 | ||||
Financing activities
|
||||||||
Net change in debt
|
(3,200 | ) | - | |||||
Interest paid
|
(718 | ) | (814 | ) | ||||
Other
|
(26 | ) | 119 | |||||
Total financing inflows (outflows)
|
$ | (3,944 | ) | $ | (695 | ) | ||
Investing activities
|
||||||||
Capital expenditures on equipment and brownfield exploration
|
(5,381 | ) | (4,324 | ) | ||||
Mineral exploration projects
|
(101 | ) | (188 | ) | ||||
Purchase of property, plant and equipment
|
(5,280 | ) | (4,136 | ) | ||||
Net proceeds from asset sales
|
37 | 31 | ||||||
Total investing outflows
|
(5,344 | ) | (4,293 | ) | ||||
Effect of exchange rate
|
208 | 373 | ||||||
Increase/(decrease) in cash and equivalent
|
$ | 3,097 | $ | (2,006 | ) |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|19
|
($ thousands)
|
Three months ended
March 31,
|
|||||||
2015
|
2014
|
|||||||
Sustaining Capital1
|
||||||||
Primary development
|
$ | 2,087 | $ | 2,652 | ||||
Exploration - Brownfield
|
1,753 | 290 | ||||||
Minesite sustaining
|
||||||||
Engineering
|
5 | 91 | ||||||
Equipment
|
1,430 | 913 | ||||||
Total sustaining capital
|
5,275 | 3,946 | ||||||
Non-sustaining Capital (including Capital Projects)1
|
||||||||
Gurupi
|
101 | 133 | ||||||
Others
|
5 | 245 | ||||||
Total non-sustaining capital1
|
106 | 378 | ||||||
Total capital expenditures
|
$ | 5,381 | $ | 4,324 | ||||
1Sustaining and non-sustaining capital are non-gaap financial measures with no standard definition under IFRS. Refer to the Non-IFRS Financial Performance Measures section of the MD&A. Capital expenditures are in included in our calculation of all-in sustaining costs and all-in costs.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|20
|
As at March 31, 2015
($ thousands, except where indicated)
|
Less than
1 year1
|
1 - 3 years
|
3 - 5 years
|
More than
5 years
|
Total
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Notes payable
|
||||||||||||||||||||
Principal
|
26,653 | 1,000 | 1,000 | 250 | 28,903 | |||||||||||||||
Bank indebtedness
|
14,753 | - | - | - | 14,753 | |||||||||||||||
Vale Note
|
500 | 1,000 | 1,000 | 250 | 2,750 | |||||||||||||||
Renvest credit facility
|
11,400 | - | - | - | 11,400 | |||||||||||||||
Interest
|
1,193 | - | - | - | 1,193 | |||||||||||||||
Total financial liabilities
|
$ | 27,846 | $ | 1,000 | $ | 1,000 | $ | 250 | $ | 30,096 | ||||||||||
Other Commitments
|
||||||||||||||||||||
Operating lease agreements
|
$ | 188 | $ | 76 | $ | - | $ | - | $ | 264 | ||||||||||
Suppliers' agreements 2,3
|
687 | - | - | - | 687 | |||||||||||||||
Other provisions and liabilities
|
20,519 | - | - | - | 20,519 | |||||||||||||||
Reclamation provisions4
|
1,721 | 13,370 | 1,090 | 10,386 | 26,567 | |||||||||||||||
Total other commitments
|
$ | 23,115 | $ | 13,446 | $ | 1,090 | $ | 10,386 | $ | 48,037 | ||||||||||
Total
|
$ | 50,961 | $ | 14,446 | $ | 2,090 | $ | 10,636 | $ | 78,133 | ||||||||||
1 Represents the obligations and commitments for the remainder of the year.
|
||||||||||||||||||||
2 The Company has the contractual right to cancel the mine operation contracts with 30 days advance notice. The amount included in the commitments table represents the contractual amount due within 30 days. | ||||||||||||||||||||
3 Purchase obligations for supplies and consumables - includes commitments related to new purchase obligations to secure a supply of cyanide, reagents, mill balls and other spares. | ||||||||||||||||||||
4 Reclamation provisions - amounts presented in the table represent the undiscounted uninflated future payments for the expected cost of reclamation. |
Settlement Date
|
Ounces Hedged
|
Average US$ per ounce
|
Unrealized gain
|
|||||||||
May 26, 2015
|
11,586 | $ | 1,227 | $ | 460 |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|21
|
·
|
The common shares of the Company issued and outstanding immediately prior to the implementation of the CCAA Plan were consolidated at a ratio of one (1) post-consolidation common share for each 86.39636 pre-consolidation common shares (the “Consolidation”);
|
·
|
The Noteholders and certain other Affected Unsecured Creditors of the Company with proven claims received their pro-rata share of 14,000,000 common shares of the Company in exchange for their Notes and in satisfaction of their claims, respectively, and Noteholders who signed the Support Agreement, or a consent agreement thereto, as of November 26, 2013, received their pro rata share of an additional 5,000,000 common shares of the Company in exchange for their Notes. Pursuant to the CCAA Plan, the Notes (and the indentures under which such Notes were issued) have been irrevocably and finally cancelled and all unsecured claims of certain affected unsecured creditors of the Company are fully and finally released;
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|22
|
·
|
Noteholders who participated in the Share Offering purchased up to their pro rata share of 70,955,797 common shares of the Company (collectively, the “Offering Shares”) and such Noteholders received their pro-rata share of 9,044,203 common shares of the Company (the “Accrued Interest Offering Shares”) in exchange for their Notes;
|
·
|
Noteholders who backstopped the Share Offering pursuant to the Backstop Agreement purchased their pro-rata share (based on their backstop commitments) of the Offering Shares not subscribed for under the Share Offering and received their pro rata share of an additional 11,111,111 common shares of the Company (the “Backstopped Commitment Shares”) in exchange for their Notes.
|
Extinguishment of principal portion of the Notes
|
$ | 268,500 | ||
Extinguishment of interest accrued on the Notes
|
10,454 | |||
Fair value of 19,000,000 common shares issued in exchange for extinguishment of the Notes
|
(13,388 | ) | ||
Gain on debt extinguishment
|
$ | 265,566 |
·
|
the maturity date of the Facility was extended to December 31, 2015 from July 25, 2014;
|
·
|
mandatory repayments of $1.0 million of principal amount plus accrued and unpaid interest shall be made each month from and including July 2014 to and including November 2015, with the balance of all outstanding obligations to be repaid on December 31, 2015;
|
·
|
the Lender shall have a right to convert up to $5.0 million of the outstanding obligations under the Facility into equity at a specified conversion price (subject to certain anti-dilution protections); and
|
·
|
existing breaches, defaults and events of default under the Facility were waived by the Lender.
|
All amounts in US$ millions, except number of common shares
|
As at March 31, 2015
|
|||
Bank Indebtedness
|
$ | 14.8 | ||
Renvest Facility
|
11.1 | |||
Vale Note
|
2.1 | |||
Total Debt
|
$ | 28.0 | ||
Less: Cash and Cash Equivalents
|
(10.3 | ) | ||
Total Net Debt1
|
$ | 17.7 | ||
Number of Common Shares Outstanding
|
111.1 million
|
|||
1 Net debt is a Non-IFRS Performance Measure and is defined as total indebtedness excluding unamortized transaction costs and premiums or discounts associated with debt, less cash and cash equivalents. Net debt provides a measure of indebtedness in excess of the current cash available. We reduce gross indebtedness by cash and cash equivalents on the basis that they could be used to pay down debt.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|23
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|24
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|25
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|26
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|27
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|28
|
Natural Pellet
|
mE
|
mS
|
Altitude (masl)
|
>6.3mm (%)
|
Fe (%)
|
SiO2 (%)
|
Al2O3 (%)
|
P (%)
|
Mn (%)
|
LOI (%)
|
CFEPL001
|
639,160
|
7,774,004
|
1,345
|
48.81
|
60.10
|
1.91
|
5.27
|
0.055
|
0.03
|
5.97
|
CFEPL002
|
639,251
|
7,774,141
|
1,358
|
48.62
|
63.10
|
2.28
|
3.61
|
0.064
|
0.02
|
3.33
|
CFEPL003
|
639,386
|
7,774,466
|
1,401
|
36.01
|
55.70
|
5.16
|
8.77
|
0.052
|
0.08
|
5.81
|
CFEPL004
|
639,376
|
7,774,429
|
1,395
|
52.44
|
57.00
|
2.25
|
8.60
|
0.060
|
0.04
|
6.75
|
CFEPL005
|
639,333
|
7,774,354
|
1,390
|
58.41
|
61.10
|
1.35
|
5.84
|
0.070
|
0.06
|
5.24
|
CFEPL006
|
639,314
|
7,774,361
|
1,384
|
39.33
|
61.70
|
1.31
|
5.50
|
0.062
|
0.03
|
5.24
|
CFEPL007
|
639,186
|
7,773,915
|
1,341
|
64.33
|
58.00
|
3.13
|
7.02
|
0.078
|
0.04
|
6.55
|
Average |
49.71
|
59.56
|
2.41
|
6.35
|
0.064
|
0.04
|
6.26
|
|||
Fines
|
mE
|
mS
|
Altitude (masl)
|
>6.3mm (%)
|
Fe (%)
|
SiO2 (%)
|
Al2O3 (%)
|
P (%)
|
Mn (%)
|
LOI (%)
|
CFEPL001
|
639,160
|
7,774,004
|
1,345
|
51.19
|
59.20
|
3.86
|
5.29
|
0.055
|
0.04
|
5.11
|
CFEPL002
|
639,251
|
7,774,141
|
1,358
|
51.38
|
53.80
|
10.50
|
6.04
|
0.073
|
0.02
|
5.53
|
CFEPL003
|
639,386
|
7,774,466
|
1,401
|
63.99
|
44.80
|
15.60
|
11.60
|
0.042
|
0.03
|
7.05
|
CFEPL004
|
639,376
|
7,774,429
|
1,395
|
47.56
|
55.80
|
4.45
|
8.11
|
0.057
|
0.05
|
6.53
|
CFEPL005
|
639,333
|
7,774,354
|
1,390
|
41.60
|
57.20
|
3.41
|
7.59
|
0.074
|
0.04
|
6.85
|
CFEPL006
|
639,314
|
7,774,361
|
1,384
|
60.67
|
59.00
|
2.95
|
6.34
|
0.066
|
0.04
|
6.16
|
CFEPL007
|
639,186
|
7,773,915
|
1,341
|
35.67
|
57.30
|
4.44
|
6.69
|
0.083
|
0.05
|
6.55
|
Average |
50.29
|
54.87
|
6.02
|
7.24
|
0.066
|
0.04
|
6.26
|
As at May 25, 2015
|
||||
Issued and outstanding common shares
|
111,111,038 | |||
Stock options
|
2,379,735 | |||
Deferred Shares Units
|
1,525,566 | |||
Total
|
115,016,339 |
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|29
|
($ thousands, except where indicated)
|
Three Months Ended
March 31,
|
|||||||
|
2015
|
2014
|
||||||
Cost of production (per statement of income)
|
$ | 20,133 | $ | 21,337 | ||||
General & Administration Expenses
|
2,281 | 4,037 | ||||||
Corporate stock-based compensation
|
184 | 45 | ||||||
Sustaining capital expenditures1
|
5,275 | 3,946 | ||||||
All-in sustaining cash costs
|
27,873 | 29,365 | ||||||
Reclamation - accretion (operating sites)
|
487 | 152 | ||||||
All-in sustaining costs1,2
|
$ | 28,360 | $ | 29,517 | ||||
Non-sustaining capital expenditures1
|
106 | 378 | ||||||
Exploration and evaluation costs (greenfield)
|
50 | 39 | ||||||
Reclamation - accretion (non-operating sites)
|
42 | 304 | ||||||
Care and maintenance (non-operating sites)
|
284 | 606 | ||||||
All-in costs 1,2
|
$ | 28,842 | $ | 30,844 | ||||
Ounces of gold sold
|
24,228 | 24,181 | ||||||
Cash operating costs per ounce sold1
|
$ | 831 | $ | 882 | ||||
All-in sustaining cash cost per ounce sold1
|
$ | 1,150 | $ | 1,214 | ||||
All-in sustaining cost per ounce sold1
|
$ | 1,171 | $ | 1,221 | ||||
All-in cost per ounce sold1
|
$ | 1,190 | $ | 1,276 | ||||
1 Cash 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.
|
||||||||
2 Capital expenditures are in included in our calculation of all-in sustaining costs and all-in costs.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|30
|
($ thousands, except where indicated)
|
Three Months Ended
March 31,
|
|||||||
|
2015
|
2014
|
||||||
Turmalina
|
||||||||
Cost of production
|
$ | 9,996 | $ | 10,581 | ||||
Sustaining capital expenditures
|
3,304 | 1,231 | ||||||
All-in sustaining costs1
|
$ | 13,300 | $ | 11,812 | ||||
Ounces of gold sold
|
13,196 | 11,513 | ||||||
Cash operating costs per ounce sold1
|
$ | 758 | $ | 919 | ||||
All-in sustaining cost per ounce sold1
|
$ | 1,008 | $ | 1,026 | ||||
Caeté Complex
|
||||||||
Cost of production
|
$ | 10,137 | $ | 10,756 | ||||
Sustaining capital expenditures
|
1,971 | 2,715 | ||||||
All-in sustaining costs1
|
$ | 12,108 | $ | 13,471 | ||||
Ounces of gold sold
|
11,032 | 12,668 | ||||||
Cash operating costs per ounce sold1
|
$ | 919 | $ | 849 | ||||
All-in sustaining cost per ounce sold1
|
$ | 1,098 | $ | 1,063 | ||||
1 Cash operating costs and all-in sustaining costs are all non-gaap financial performance measures with no standard definition under IFRS. Results of individual mines may not add up to the consolidated numbers due to rounding.
|
($ thousands, except where indicated)
|
Three Months Ended
March 31,
|
|||||||
|
2015
|
2014
|
||||||
Net loss
|
$ | (12,946 | ) | $ | (15,755 | ) | ||
Income tax expense
|
3,665 | (6 | ) | |||||
Finance costs
|
1,124 | 4,819 | ||||||
Depreciation and Amortization
|
6,647 | 8,946 | ||||||
EBITDA
|
$ | (1,510 | ) | $ | (1,996 | ) | ||
Impairment charges
|
- | - | ||||||
Changes to legal provisions and Recoverable VAT
|
7,771 | 4,019 | ||||||
Stock based compensation
|
184 | 45 | ||||||
Net Realizable Value Adjustment
|
32 | 904 | ||||||
Financial instruments gain
|
579 | - | ||||||
Adjusted EBITDA
|
$ | 7,056 | $ | 2,972 | ||||
1 This is a non-gaap financial performance measures with no standard definition under IFRS.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|31
|
Three Months Ended
March 31,
|
||||||||
($ thousands, except where indicated)
|
2015
|
2014
|
||||||
Consolidated
|
||||||||
Production costs per income statement
|
$ | 20,133 | $ | 21,337 | ||||
Royalty and CFEM
|
(980 | ) | (1,017 | ) | ||||
Others Adjustments
|
(8 | ) | (1,507 | ) | ||||
Change in inventory
|
(1,902 | ) | 2,752 | |||||
Operational cost of gold produced
|
$ | 17,243 | $ | 21,565 | ||||
Gold produced (ounces)
|
21,336 | 23,359 | ||||||
Cash operating costs (per ounce produced)
|
$ | 808 | $ | 923 | ||||
Turmalina Plant
|
||||||||
Production costs per income statement
|
$ | 9,996 | $ | 10,581 | ||||
Royalty and CFEM
|
(806 | ) | (791 | ) | ||||
Others Adjustments
|
- | (77 | ) | |||||
Change in inventory
|
(1,534 | ) | 34 | |||||
Operational cost of gold produced
|
$ | 7,656 | $ | 9,747 | ||||
Gold produced (ounces)
|
11,796 | 11,374 | ||||||
Cash operating costs (per ounce produced)
|
$ | 649 | $ | 857 | ||||
Caeté Plant
|
||||||||
Production costs per income statement
|
$ | 10,137 | $ | 10,756 | ||||
Royalty and CFEM
|
(174 | ) | (226 | ) | ||||
Others Adjustments
|
(8 | ) | (1,430 | ) | ||||
Change in inventory
|
(367 | ) | 2,718 | |||||
Operational cost of gold produced
|
$ | 9,588 | $ | 11,818 | ||||
Gold produced (ounces)
|
9,540 | 11,985 | ||||||
Cash operating costs (per ounce produced)
|
$ | 1,005 | $ | 986 | ||||
1 Cash operating costs, all-in sustaining costs and all-in costs are all non-gaap financial performance measures with no standard definition under IFRS.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|32
|
|
·
|
IFRS 9 Financial Instruments - In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments, bringing together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement. The mandatory effective date of IFRS 9 would be annual periods beginning on or after January 1, 2018, with early adoption permitted. The impact of IFRS 9 on the Company’s financial instruments has not yet been determined.
|
|
·
|
IFRS 15 Revenue from Contracts with Customers was issued by IASB in May 2014. It specifies how and when an IFRS reporter will recognize revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides a single, principles based five-step model to be applied to all contracts with customers. IFRS 15 is effective for annual reporting periods beginning on or after January 1, 2017. The impact of IFRS 15 on the Company’s condensed interim consolidated financial statements has not yet been determined.
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|33
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|34
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|35
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|36
|
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Richard D. Falconer(1)(3) Chairman
George M. Bee
Edward V. Reeser(1)(2)(3)(4)
Luis R. Miraglia(2)(4)
Stephen Hope(1)(2)(4)
Jared Hardner(3)
Robert J. Chadwick (4)
(1). Audit & Risk Committee
(2) Governance, Compensation and Nominating Committee
(3) Safety, Environmental, Technical & Reserves Committee
(4) Special Committee
OFFICERS AND SENIOR MANAGEMENT
George M. Bee
Chief Executive Officer
Derrick H. Weyrauch
Chief Financial Officer
Jim Healy
Executive Vice President, Development
Ubiratã Oliveira
Executive Vice President, Operations
Hashim Ahmed
Vice President, Controller
Cintia Zanellato
Corporate Secretary and General Counsel
PRINCIPAL EXECUTIVE OFFICE
67 Yonge Street, Suite 1203
Toronto, ON M5E 1J8
Canada
Phone: (416) 628-9601
Fax: (647) 494-8885
Website: www.jaguarmining.com
ADMINISTRATIVE OFFICES
Rua Levindo Lopes, 323 - Funcionários
CEP 30140-170 - Belo Horizonte
Brazil
|
REGISTERED OFFICE
67 Yonge Street, Suite 1203
Toronto, ON M5E 1J8
Canada
AUDITORS
KPMG LLP
Toronto, ON, Canada
LEGAL COUNSEL
Bennett Jones LLP
Toronto, ON, Canada
Azevedo Sette Advogados
Belo Horizonte, MG, Brazil
BANKS
HSBC
Toronto, ON, Canada
Royal Bank of Canada
Toronto, ON, Canada
STOCK TRANSFER AGENT
Computershare Investor Services Inc.
100 University Avenue, 9th Floor
Toronto, ON M5J 2Y1
Canada
Phone: 1 (800) 564-6253
Fax: 1 (866) 249-7775
Email: service@computershare.com
EXCHANGE LISTING
TSX-V: “JAG”
|
MD&A – First quarter ended March 31, 2015
|
Jaguar Mining Inc.
|
|37
|
1.
|
Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Jaguar Mining Inc. (the “issuer”) for the interim period ended March 31, 2015.
|
2.
|
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
NOTE TO READER
In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include representations
relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making
any representations relating to the establishment and maintenance of
i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded,
processed, summarized and reported within the time periods specified in securities legislation; and
ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
The issuer’s certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent
limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness
of interim and annual filings and other reports provided under securities legislation.
|
1.
|
Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Jaguar Mining Inc. (the “issuer”) for the interim period ended March 31, 2015.
|
2.
|
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
NOTE TO READER
In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include
representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing
this certificate are not making any representations relating to the establishment and maintenance of
i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities
legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
The issuer’s certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that
inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability,
transparency and timeliness of interim and annual filings and other reports provided under securities legislation.
|