Slide 1: Third Quarter 2011 Management Review and Conference Call
Third Quarter 2011 Management Review and Conference Call November 10, 2011
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures 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,
Slide 3: Operational Turnaround Progressing
Operational Turnaround Progressing • Caeté was commissioned in 3Q Gold Production (000 oz) 2010 and has been ramping up on plan 45 • Switch to cut and fill methodology at Turmalina is now complete 40 • Mill issues at Caeté have been resolved 35 • Management changes have been made at all three Jaguar
Slide 4: Key Operating Metrics - consolidated
Key Operating Metrics - consolidated Q3 YTD 2010 Q3 YTD 2011 % Change Development (km) 13.9 18.6 +34 % Stopes 30 43 +43 % Working Faces 55 91 +65 % Tonnes Mined 1,031,433 1,325,314 +28% Ore Processed (tonnes) 1,141,063 1,323,792 +16 % Gold Produced (oz) 103,185 122,366 +19 % JAGUAR MINING INC. 4
Slide 5: Third Quarter Highlights
Third Quarter Highlights • Record total of 41,390 ounces of gold sold • Record total revenue of $70.0 million • Total gold production of 40,660 ounces • Record cash operating margin of $806 per ounce • Operating profit of $6.7 million • Cash provided by operating activities totaled $30.0 million or
Slide 6: Operating Cash Cost and Margin per Oz.
Operating Cash Cost and Margin per Oz. $1,800 $1,600 $1,400 $806 $1,200 $708 $659 $1,000 $483 $800 $511 $431 $600 $364 $237 $886 $400 $732 $727 $799 $429 $468 $200 $370 $346 $0 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 Cash Cost Cash Margin JAGUAR MINING INC. 6
Slide 7: Consolidated Cost Reconciliation
Consolidated Cost Reconciliation Q2 2011 Operating Cash Cost/Oz. $799 Exchange Rate Variance ($21) Volume Variance ($38) Recovery Grade Variance $59 Regular Labor Expense $38 Incentive Bonus and Catch-up from June Contract $47 Other $2 Q3 2011 Operating Cash Cost/Oz. $886 JAGUAR MINING INC. 7
Slide 8: Turmalina Complex
Turmalina Complex Resources and Reserves (oz) Reserves 523,630 M + I Resources 856,300 Production (oz) 3Q 2011 YTD 47,930 3Q 2010 YTD 49,206 Cash Cost ($/oz) Q3 2011 $906 Q3 2010 $912 Key personnel changes complete Gold Production (oz.) 20,000 Switch to cut and fill mining methodology complete 1
Slide 9: Turmalina Mine Development
Turmalina Mine Development • Record 2.2 kilometers of underground development completed in 3Q 2011 •Total of 12 months advanced development completed •10.4 km of underground drilling completed in Q3 2011 Ore Body C Ore Body A Ore body B Level 4 Level 5 Completed 2010 Level 6 Completed 2011 (Level 7)
Slide 10: Turmalina Resources and Exploration
Turmalina Resources and Exploration Faina Target M+I = 444,400 oz Avg. 3.57 g/t Turmalina Mine Fex Pontal Target A and B ore bodies Penha Belt M+I = 112,000 oz M + I: 456,000 oz Avg. 2.76 g/t (500 m depth) Pontal C Ore Body Fex Target M+I = 178,000 oz Drilling: 3 m @ 4.40 g/t (300 m depth) 3 m @ 2.9
Slide 11: Faina, Pontal & Body D Mineral Resources
Faina, Pontal & Body D Mineral Resources • New study indicates an increase of over 250,000 M+I gold ounces Average Average Average Average Measured Indicated M+I Inferred M+I Inferred Target Grade Grade Grade Grade (t) (t) (t) (t) (oz Au) (oz Au) (g/t) (g/t) (g/t) (g/t) Faina 139,200 4.32 3,211,600
Slide 12: Caeté Complex
Caeté Complex Resources and Reserves (oz) Reserves 523,630 M + I Resources 856,300 Production (oz) Q3 2011 YTD 32,987 Q3 2010 YTD 5,139 Cash Cost ($/oz) Q3 2011 $841 Q3 2010 $732 Mill issues of 2Q 2011 were resolved early Gold Production (oz.) in 3Q 2011 20,000 Completed 11.2 km drilling in Q3 2
Slide 13: Roça Grande Mine Development
Roça Grande Mine Development • 7.6 km of underground development completed Q3 2011 YTD • Total of 18 months mining equivalent advanced development • 11.2 km of underground drilling completed in Q3 2011 1195 LEVEL 1 1195 Ore Body A 1120 LEVEL 2 1120 LEVEL 3 1045 Access Ramp 1045 LEVEL 4 RG 2 970 970
Slide 14: Paciência Complex
Paciência Complex Resources and Reserves (oz) Reserves 523,630 M + I Resources 856,300 Production (oz) Q3 2011 YTD 32,949 Q3 2010 YTD 45,479 Average Cash Cost ($/oz) Q3 2011 YTD $683 Q3 2010 YTD $789 Completed 2.7 km drilling in Q3 2011 Average Cash Cost/oz Production from Pilar mine has been sh
Slide 15: Santa Isabel Mine Development
Santa Isabel Mine Development •2.2 kilometers of underground development completed in 3Q 2011 • Total of 12 months advanced development completed • 2.7 km of underground drilling completed in Q3 2011 1150 Ore Body A and B Ore Body C 1100 1050 1000 950 900 Level 4 Access to NW-1 850 ( Marzagão) ~ 1 k
Slide 16: Ball Mill Remediation Plan
Ball Mill Remediation Plan • Replacing obsolete solid shaft with modern, segmented shaft and reducer system • Installation of optimized drive pinion to reduce vibration • To be implemented on 3 ball mills over the next 5 months JAGUAR MINING INC. 16
Slide 17: Gurupi Project Update
Gurupi Project Update
Slide 18: Gurupi Project Status
Gurupi Project Status • Board of Directors has approved continued development of project and it is advancing • Construction work on infrastructure is continuing • New housing for relocating families is under construction • Detailed engineering is approximately 15 percent complete • Issuance of insta
Slide 19: Centro Novo Village Construction
Centro Novo Village Construction JAGUAR MINING INC. 19
Slide 20: Gurupi Initial Drilling Results
Gurupi Initial Drilling Results • Initial results are encouraging and suggest down-dip mineralization continuity • Preliminary results from a couple of deep holes at Chega Tudo suggest the extension of the mineralization to approximately 300 meters • Approximately 65 percent (14,346 meters) of the p
Slide 21: Gurupi Drilling Program - Cipoeiro 3D View
Gurupi Drilling Program - Cipoeiro 3D View JAGUAR MINING INC. 21
Slide 22: Gurupi Drilling Program – Initial Results
Gurupi Drilling Program – Initial Results Cipoeiro Drilling Results Hole From (m) To (m) Au (g/t) Length (m) Type of Intersection 0.00 36.00 0.75 36.00 Step-out 115.75 117.70 11.61 1.95 Step-out FCP0010 169.00 186.00 0.70 17.00 169.00 170.00 5.08 1.00 Step-out 185.00 186.00 3.93 1.00 61.70 73.00 2.0
Slide 23: Gurupi Drilling Program - Chega Tudo 3D View
Gurupi Drilling Program - Chega Tudo 3D View JAGUAR MINING INC. 23
Slide 24: Chega Tudo Cross Section A
Chega Tudo Cross Section A JAGUAR MINING INC. 24
Slide 25: Chega Tudo Cross Section B
Chega Tudo Cross Section B JAGUAR MINING INC. 25
Slide 26: Gurupi Drilling Program – Initial Results
Gurupi Drilling Program – Initial Results Chega Tudo - Drilling Results Hole From (m) To (m) Au (g/t) Length (m) Type of Intersection 69.10 76.10 1.20 7.00 Infill FCTU0003 164.10 178.10 1.00 14.00 Step-out 177.10 178.10 5.29 1.00 FCTU0004 117.00 126.00 0.99 9.00 Infill 85.00 101.00 2.11 16.00 Infill
Slide 27: Financing and Capital Structure
Financing and Capital Structure • We are considering project financing as well as general capital requirements • Seeking to strengthen our balance sheet and more closely align stakeholder interests with corporate goals and objectives • We have reviewed numerous term sheets with several different fin
Slide 28: Summary
Summary • Turnaround efforts and plans to improve current operations are progressing and driving measurable results • We are successfully addressing some of the key mechanical issues we have experienced and the impact of these will be temporary • The Gurupi project is progressing and is now enhanced
Slide 29: Thank You for your Continued Interest in JAG
Thank You for your Continued Interest in JAG