Tuesday, November 7, 2017

Jaguar Mining - Good 3Q 2017 Results

Today Jaguar Mining (JAGGF; JAG.TO) released its 3Q 2017 report. And, at last, these results were really good. Look at these two charts:

source: Simple Digressions

Firstly, cash flow from operations has been in a steady increase since 1Q 2017 (the red arrow on the left). Secondly, in 3Q 2017 the company was, for the first time since the end of 2016, able to deliver free cash flow  (the panel on the right).

Interestingly, the main contributing factor standing behind these nice results was the Caete mining complex. Here are the charts showing the costs reported by the Caete complex (Pilar + Roca Grande):

source: Simple Digressions

I particularly like the all-in sustaining cash cost reported by Caete. Now this mining complex produces its gold at the cost of $1,080 per ounce, which is absolutely an outstanding result. Compare this operation to, say, 1Q 2017, when this cost was $1,526 per ounce and Caete was cash flow negative. Good managerial work...

And what about Turmalina, a former flagship property? Well, there is regress at this operation but..it is still quite a decent mine. Look at the all-in sustaining cash costs reported by Turmalina:

source: Simple Digressions

Although the costs are still rising, the current AISC of $1,002 per ounce of gold is not too elevated.

Anyway, most importantly, both operations are now free cash flow positive.

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