Jaguar Mining (JAG) Q2 2024 earnings summary

Executive summary

• Gold production reached 16,829 ounces, slightly above the prior year, with higher grades offsetting lower ore tonnes processed.

• Gold sales increased 12% year-over-year to 19,022 ounces, benefiting from inventory reduction and timing.

• Realized gold price rose 20% year-over-year to $2,354/oz, driving a 35% increase in revenue to $44.8 million.

• Net income was $13.5 million ($0.17/share), reversing a $1.1 million loss in Q2 2023.

• Free cash flow surged to $15.2 million from $2.4 million a year ago, with free cash flow per ounce sold at $801.

Financial highlights

• Cash operating costs per ounce sold decreased 9% year-over-year to $1,046; AISC per ounce fell 15% to $1,517.

• EBITDA was $25.2 million, up from $7.4 million; adjusted EBITDA was $22.4 million, up from $10.6 million.

• Cash and cash equivalents rose to $37.4 million as of June 30, 2024, from $22.0 million at year-end 2023.

• Working capital increased to $28.4 million from $12.6 million at December 31, 2023.

Outlook and guidance

• Production at Turmalina expected to rise as Faina zone contributes more ore; Pilar production to remain steady for 2024.

• Focus remains on developing new mining areas (BA-Torre at Pilar, Faina at Turmalina) and maintaining profitable ounces.

• Company is well positioned to fund future growth and exploration with strong cash balance and no long-term debt.