Jaguar Mining Inc. · TSX:JAG
Jaguar Mining — Investor Presentation (June 2023)
36 slides from Jaguar Mining's investor presentation, June 2023
Slide 1: The Mining Investment Event of the North
TSX:JAG OTCQX:JAGGF The Mining Investment Event of the North June 2023 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation (“Presentation”) does not constitute an offer of any securities for sale or a solicitation of an offer to purchase any securities . This Presentation, and the information contained herein, is not for release, distribution or publication into or in the Uni
Slide 3: Why Invest in Jaguar?
WHY INVEST IN JAGUAR? SUSTAINABLE PRODUCER VALUABLE ASSET BASE SELF FUNDED GROWTH PLAN 3
Slide 4: Sustainable Producer
SUSTAINABLE PRODUCER • Since restructuring in 2013, Jaguar has demonstrated steady production, strong cash generation and the ability to cost-effectively replace Reserves. • The Company has reinvested into an extensive asset base and pays dividends opportunistically. • Jaguar is debt free and has a
Slide 5: Valuable Asset Base
VALUABLE ASSET BASE • ~$800M capital invested. • With this, the Company has built and still owns four mines and three mills. • Jaguar has processing capacity of ~6000 tpd and is currently using 40% of this. • The Company’s land position in the prolific Iron Quad remains intact and underexplored. 5
Slide 6: Self Funded Growth Plan
SELF FUNDED GROWTH PLAN • Jaguar’s mines are already built and permitted. • Our plan going forward is to source fresh mill feed, both through exploration on our land and potential arrangements with neighbours to fill our mills. • Returns on marginal increases in throughput, given fixed-cost nature,
Slide 7: Financial History – Three Eras
FINANCIAL HISTORY – THREE ERAS Quarterly, xUS$1M Cash from Ops Capex Cash from Ops - Capex • Jaguar Mining is now almost 20 $30 years old. $20 • The first ten years, as operated under former management, was $10 marked by poorly executed growth. $0 • Following that, the Company was reorganized under
Slide 8: Steady Production + Continuous Reinvestment
STEADY PRODUCTION + CONTINUOUS REINVESTMENT Ozs/qtr 30 QUARTERLY PRODUCTION DATA Pilar Turmalina • Since 2015 the Company has 25 produced on average a little 20 more than 20k ozs/qtr. 15 • This production has been 10 fairly consistent with an expected deviation around 5 this average of about 2k ozs.
Slide 9: Steady, Reliable Reserve Replacement
STEADY, RELIABLE RESERVE REPLACEMENT MINERAL RESERVES Reserves/Annual Production 8 +27% since 2015 net of 685koz of production 7 • Jaguar’s operations exploit 6 underground deposits of a non- 5 bulk tonnage nature. 4 3 • As such, it is uneconomic to drill 2 out years and years of reserves. 1 0 • Rat
Slide 10: Resource Inventory Keeps Pace with Reserves
RESOURCE INVENTORY KEEPS PACE WITH RESERVES MEASURED, INDICATED AND INFERRED MINERAL RESOURCES Koz +21% since 2015 net of 685koz of production 2700 • Since 2015, Jaguar’s Mineral 2500 Resources Inventory (inclusive of Mineral Reserves) has maintained a 2300 4-5 year Mine Life at current 2100 product
Slide 11: In Last Three Years Jaguar Has Earned Its Market Cap
IN LAST THREE YEARS JAGUAR HAS EARNED ITS MARKET CAP CUMULATIVE EARNINGS SINCE 2020 $160 $140 $120 Current market cap* is $120M Cumulative earnings since 2020 is $120M $100 $80 $60 $40 $20 $0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Market Cap * Market Cap as of June 5
Slide 12: Reinvesting into Extensive Asset Base
REINVESTING INTO EXTENSIVE ASSET BASE Main investments growth and engineering projects (US$M) +53% 1 MTL CAETÉ PACIENCIA COMPLEX COMPLEX COMPLEX 14.3 2 Tailings dam 4.8 3.0 0.8 +121% 1 2 Filtration Plant - 6.5 - 9.4 New trucks 1.2 1.3 - Mine & Plant Infrastructure 1.0 1.7 - 4.2 Faina Exploration 2.1
Slide 13: Investing in Growth
INVESTING IN GROWTH 3 YEAR OPERATING PROFILE US$M Increase Decrease Total 164.5 REINVESTMENT & RETURN TO SHAREHOLDERS 94.7 (80.7) (38.5) 25.2 10.9 (29.6) (1.4) Cash Operating Sustaining Free Exploration Dividends Other Cash Jan 1/20 CF CF CF & Growth Dec 31/22 13
Slide 14: Our Assets: Three Mills, Four Mines
OUR ASSETS: THREE MILLS, FOUR MINES MTL COMPLEX CAETÉ COMPLEX PACIÊNCIA COMPLEX* TURMALINA MINE PILAR MINE RG MINE* SANTA ISABEL MINE* * Currently on Care & Maintenance. 14
Slide 15: Plus an Extensive Land Package (57k ha)
PLUS AN EXTENSIVE LAND PACKAGE (57k ha) 15
Slide 16: Growth Strategy: Fill the Mills
GROWTH STRATEGY: FILL THE MILLS MTL COMPLEX • Jaguar currently has ~6000 40% unused capacity tpd of installed processing capacity over three mills: MTL, Caeté and Paciência. CAETÉ COMPLEX • All told, the Company is currently using only using 60% unused capacity about 2400 tpd. • This works out to a
Slide 17: Where the Additional Millfeed Will Come From
WHERE THE ADDITIONAL MILLFEED WILL COME FROM +/-80k OZ +100k OZ +120k OZ ++EXPLORATION Consistent Production Faina Zona Basal In Mine Project Catita New projects Turmalina Mine Roca Grande Pilar Mine Corrego Brandão Available Paciência Infrastructure for growth 17
Slide 18: Consistent Production: Caeté Complex
CONSISTENT PRODUCTION: CAETÉ COMPLEX • 17,467 ha land package • Caeté complex consists of Pilar and RG gold mines • Area includes highly prospective targets Gold Production (oz) & Grade (g/t) • Gold recoveries ~88% 14,000 4.50 4.04 12,000 3.65 3.68 3.73 3.51 3.71 3.54 4.00 • Throughput capacity ~2,2
Slide 19: Consistent Production: MTL Complex
CONSISTENT PRODUCTION: MTL COMPLEX • 7,674 ha land package • MTL complex consists of the Turmalina gold mine • Potential to expand resources and extend life of mine through ongoing exploration Gold Production (oz) & Grade (g/t) • Access to paved roads, water, labour, power and a carbon-in-pulp proce
Slide 20: Growth: Faina Project
GROWTH: FAINA PROJECT • Faina accessed from existing mine complex expected in Q4 2023 • Minimal permitting required. 20
Slide 21: 2023 Exploration ~US$6.5M Budget
2023 EXPLORATION Focus on 12 Targets: In-Mine Targets MTL UG (C & B ~18,000 Structures) Pilar UG ~US$6.5M (Depth Extensions, meters of Pilar 2) Budget drilling Green / Brown Targets: planned Carancas/Rocinha, Córrego Brandão, Catita, Faina extensions , Pontal, Paciência & Acuruí JV 21
Slide 22: Exploration: MTL Complex - Targets
EXPLORATION: MTL COMPLEX - TARGETS 22
Slide 23: Exploration: Caeté Complex – Targets
EXPLORATION: CAETÉ COMPLEX – TARGETS Rocinha Córrego Brandão Catita Carrancas Batatal Zé Firmel Boa Vista 23
Slide 24: Exploration: Caeté Complex – RG Mine
EXPLORATION: CAETÉ COMPLEX – RG MINE 24
Slide 25: Exploration: Caeté Complex – Pilar Targets
EXPLORATION: CAETÉ COMPLEX – PILAR TARGETS LEGEND CDS II (AGA) JAG Tenements Priority One Pilar Mine Pilar II Active Mining JAG Operation Gold in-soil anomalies >100ppb CDS I (AGA) 25
Slide 26: Exploration: Caeté Complex – Pilar Deep Drilling
EXPLORATION: CAETÉ COMPLEX – PILAR DEEP DRILLING Level 16/2 Drilling Site 520 meters Lithology 660 meters BIF Schist Talc schist Graphite schist Longitudinal Section NNE-SSW. Azimuth Looking View 107°. 700 meters 26
Slide 27: Exploration: Paciência Complex – Targets
EXPLORATION: PACIÊNCIA COMPLEX – TARGETS Boiadeiros LEGEND JAG Tenements Priority One Urubu Priority Two Quati BIF Norte Active Mining Mata dos Trovões Bahu JAG Care and Maintenance Rio de Pedras Gold in-soil anomalies >20ppb Siriema Grab Samples > 3 Au g/t Marzagão Paianas Santa Isabel Cedro 27
Slide 28: Exploration: Paciência Complex – Targets
EXPLORATION: PACIÊNCIA COMPLEX – TARGETS Longitudinal view (looking to SW) SE NW Santa Isabel Córrego Mines Bambuzal Moinho Santana Siriema Bahu Sta Isabel, Lobo Gorduras Chamé Corrego Grande Cedro Marzagão, Quati Initial soil sampling Geological mapping Ready-to-drill drilling area 4.18m@5.88 Au g/
Slide 29: Exploration: Paciência Complex – Santa Isabel Mine
EXPLORATION: PACIÊNCIA COMPLEX – SANTA ISABEL MINE SE NW Legend SANTA ISABEL MINE Sta Isabel, Corrego Grande, Marzagão Inferred Resources Potential Resources Sulph Mined Resources 189 KOz @ 4.13 Au g/t Inferred Underground 29
Slide 30: Q1 Highlights - Operations
Q1 HIGHLIGHTS - OPERATIONS OPERATING RESULTS Q1 2023 Q1 2022 Tonnes of ore mined 198,000 184,000 Tonnes of ore processed 206,000 184,000 Average head grade (g/t) 1 3.17 3.19 Average recovery rate (%) 86 89 Gold produced (ounces) 18,156 16,663 Gold sold (ounces) 19,008 16,507 Cash operating costs (pe
Slide 31: Q1 Highlights - Financial
Q1 HIGHLIGHTS - FINANCIAL Q1 2023 Q1 2023 Revenue $35.8M $30.6M Operating Costs $20.6M $19.6M Net income (loss) $2.5M ($6.0M) Net income (loss) per share $0.03 ($0.08) Free cash flow1 $3.3M $2.7M Cash and cash equivalents at quarter end $25.8M $34.8M 1 This is a Non-GAAP financial performance measur
Slide 32: Upcoming Catalysts
UPCOMING CATALYSTS H1 H2 2024 2025 2023 2023 ✓ • Updated MRMR • Obtain Trial Mine License at Zona Basal • Development of Faina ✓ • Maiden Resource Estimate at Zona • In mine exploration results Pilar / MTL • Progress Zona Basal • Progress Paciência / Roca Grande towards Basal PEA / PFS • Exploration
Slide 33: Valuation
VALUATION EV/FLOWING OUNCE $3,000 $2,500 • Producers with outputs ranging from 60k-100k oz/yr. $2,000 • WDO, K92 etc. excluded. $1,500 • Depressed multiples $1,000 “everything is cheap”. $500 • Jaguar is one of the most inexpensive amongst peer group. $0 33
Slide 34: No Debt Self Funded Growth
NO DEBT ‘FUNDED yt Lang NAN ~~ GROWT
Slide 35: Contact Us
CONTACT US TORONTO First Canadian Place 100 King Street West, 56th Floor Toronto, Ontario M5X 1C9 T: 416 847-1854 BRAZIL Jaguar Mining Inc. R. Andaluzita, 131 - 7th floor 30310-030 Belo Horizonte - Minas Gerais T: +55 31 3232-7101 TSX:JAG | OTCQX:JAGGF
Slide 36: Reserves and Resources (as at Dec. 31, 2022)
RESERVES AND RESOURCES (as at Dec. 31, 2022) PROJECT TONNAGE AU GRADE CONTAINED AU Kt g/t Koz Pilar 1,961 3.81 240 P&P Turmalina 1,855 3.58 214 Total 3,816 3.70 454 Pilar 3,013 4.34 421 Roça Grande 962 3.90 121 Turmalina 3,643 4.13 483 M&I Faina 1,427 5.08 233 Pontal 410 4.72 62 Total 9,455 4.34 1,3