Slide 1: Q3 2009 Earnings Conference Call
Q3 2009 Earnings Conference Call November 10, 2009 Operations on Target, Streamlining Balance Sheet, Expanding Resource Base 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute "Forward-Looking Statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. This presentation contains Forward-Looking Statements, including statements
Slide 3: Topics
Topics A. Financial Review – Revenue, costs, realizations, cash flow, cash operating margins, cash management B. Operations – Sabará, Turmalina, Paciência, C. Growth Initiatives – Gurupi acquisition, Caeté construction, underground development, exploration, opportunities 3
Slide 4: Q3/YTD Highlights
Q3/YTD Highlights 1) Q3 Revenue of $35.2 mm vs. $25.8 mm in Q3 2008…+36% YTD: $101.2 mm for 2009 vs. $65.8 mm in 2008.. +54% 2) Gross profit: $11.8 mm vs. $6.9 mm in Q3 2008… +71% YTD: $32.2 mm „09 vs. $20.3 mm ‟08… +59% 3) Net income: $6.9 mm or 9¢/share vs. ($1.3 mm) or (2¢) in 2008 YTD $21.4 mm v
Slide 5: Quarterly Gold Production
Operations Quarterly Gold Production 45,000 41,585 40,758 37,916 34,936 32,868 30,000 Ounces 21,414 20,782 20,462 20,334 17,188 15,000 12,044 12,129 10,114 9,303 6,415 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 2008 2009 5
Slide 6: Cash Operating Cost and Margin (Non-GAAP Measure)
Operations Cash Operating Cost and Margin (Non-GAAP Measure) $1,000 Cash operating margin $900 $800 Cash operating cost $700 456 518 496 445 401 519 $600 391 397 $/oz 349 $500 209 235 236 337 209 389 $400 $300 $455 $461 $466 $405 $428 $409 $451 $376 $373 $372 $396 $200 $352 $328 $345 $273 $100 $0 Q1
Slide 7: Operations – Sabará
Operations – Sabará • Facility currently inactive due to available ore supply to feed the plant • Continue to evaluate strategic alternatives for “non-core” asset • Management anticipates disposition of asset during 2010 7
Slide 8: Q3 Operations – Turmalina
Q3 Operations – Turmalina 1) Produced 22,250 oz @ $411/oz (cash operating cost) 2) Ore produced: 177,459 tonnes 3) Ore processed: 153,324 4) ROM Grade: 5.11 g/t 5) Feed grade: 5.27 g/t 6) Recovery: 89% 7) 1.25 km underground development. 13.0 km in place 8) 18-24 months of development in front of mi
Slide 9: Turmalina Cost Profile 2009 Q1-Q3
Turmalina Cost Profile 2009 Q1-Q3 Cash Operating Cost Per Tonne and Per Oz (Non-GAAP Measure) Exchange Rate Impact Masks True Cost Picture R$ Cost per tonne $ Cost per tonne R$ Cost per oz $ Cost per oz 150 129.3 807.2 852.5 759.4 123.8 800 -6% 125 109.9 -15% Q1 v Q3 Q1 v Q3 100 600 75 404 411 55.9
Slide 10: Q3 Operations – Paciência
Q3 Operations – Paciência 1) Produced 17,927 oz @ $468/oz (cash operating cost) 2) Ore produced: 179,556 tonnes – St. Isabel: 139,909, Pilar: 40,912, Palmital: 6,745 3) Ore processed: 167,193 4) ROM Grade: 3.84 g/t – St. Isabel: 3.54 g/t, Pilar: 4.32 g/t, Palmital: 6.99 g/t 5) Feed grade: 3.55 g/t 6
Slide 11: Paciência Cost Profile 2009 Q1-Q3
Paciência Cost Profile 2009 Q1-Q3 Cash Operating Cost Per Tonne and Per Oz (Non-GAAP Measure) Exchange Rate Impact Masks True Cost Picture…Even More R$ Cost per tonne $ Cost per tonne R$ Cost per oz $ Cost per oz 150 1,200 1,117 998 -23% 125 129.3 1,000 857 Q1 v Q3 100.8 100 91.7 -29% 800 Q1 v Q3 75
Slide 12: Growth Initiatives
Growth Initiatives Build-out of Caeté Project 1. Underground development: 12.4 km in-place • Pilar mine producing. Will divert ore from Paciência to Caeté in late- Q1 2010 • Roça Grande Mine: 85% complete 2. Added 0.96 km in Q3 (Roça Grande and Pilar) 3. Engineering: Basic = 100%, Detailed 68% 4. On
Slide 13: Growth Initiatives (cont'd)
Growth Initiatives (cont’d) Outside of Quadrilátero 1. Announced acquisition of Gurupi Property in Northern Brazil from Kinross November 2 • $39 million in JAG restricted shares based on 5-day VWAP prior to close with limitation of 5% ownership position (any balance funded with cash) • Closing early
Slide 14: Capital Structure/Other
Capital Structure/Other Consent Solicitation of 10.5% Notes Due 2012 - (Cdn$86.25 mm) 1. Launched Offer (October 20, 2009) to Purchase and Consent Solicitation closing November 17, 2009 • 105% of par + accrued interest for notes tendered by Nov. 17 • Will redeem any balance for non-tendered notes @1
Slide 15: Gold Price vs. R$/US$ Exchange Rate
Gold Price vs. R$/US$ Exchange Rate 4.0 3.5 Exchange Rate 3.0 $R per $US 2.5 Currently 2.0 1.5 1.0 y = -0.002x + 3.676 R² = 0.730 0.5 0.0 200 400 600 800 1000 1200 1400 Gold Price $/oz Quarterly data mid-2002 to present 15
Slide 16: Sulfides Cost Profile 2009 Q1-Q3
Sulfides Cost Profile 2009 Q1-Q3 Cash Operating Cost Per Tonne and Per Oz (Non-GAAP Measure) The Real Picture: Cash Costs Have Declined (in R$) R$ Cost per tonne $ Cost per tonne R$ Cost per oz $ Cost per oz 150 1,000 938 917 114.5 801 -15% 125 111.9 Q1 v Q3 108.6 800 -5% 100 Q1 v Q3 600 75 409 443
Slide 17: Cash Operating Cost and Margin
Cash Operating Cost and Margin (Non-GAAP Measure) $1,200 Cash operating margin Cash operating cost $1,000 $800 $605 496 $/oz 431 $600 364 237 $400 $429 $444 $478 $200 $370 $346 $0 2006 2007 2008 YTD 2009 Present Exchange Rate 2.17 1.95 1.84 2.09 1.70 R$/US$ 17 Present cash cost based purely on Q3 ac
Slide 18: Thanks for your continued interest in Jaguar Mining
Thanks for your continued interest in Jaguar Mining 18