Jaguar Mining (JAG) Q3 2024 earnings summary

Executive summary

• Gold production for Q3 2024 was 16,912 ounces, slightly below Q3 2023, due to 16% fewer tonnes processed but offset by 24% higher head grades.

• Revenue rose 23% year-over-year to $38.9 million, driven by a 29% increase in realized gold prices to $2,474/oz.

• Net income was $2.3 million, down from $3.8 million in Q3 2023, but adjusted net income excluding $6.0 million in litigation provisions was $8.3 million ($0.10/share).

• Free cash flow increased to $4.8 million from $1.5 million in Q3 2023, with free cash flow per ounce sold at $306 versus $92.

• Cash and cash equivalents nearly doubled year-to-date, reaching $41.6 million as of September 30, 2024.

Financial highlights

• Operating costs decreased 12% year-over-year to $17.3 million.

• EBITDA for Q3 2024 was $12.3 million, up from $11.4 million in Q3 2023; adjusted EBITDA was $19.9 million, up from $10.2 million.

• Cash operating costs per ounce sold fell 7% to $1,101, while AISC per ounce rose 7% to $1,831 due to higher sustaining capital at the Faina zone.

• Gross profit for the quarter was $16.7 million, up from $5.3 million in Q3 2023.

Outlook and guidance

• Production at the Faina zone is expected to ramp up in 2025, with full rates targeted for 2026.

• Elevated AISC per ounce is expected to improve as Faina production increases.

• Continued investment in ore zone development and additional projects is planned to support growth over the next five years.