Slide 1: Q2 2010 Earnings Conference Call
jaguarisgold Q2 2010 Earnings Conference Call 1. Impact of geo-mechanical issues at Turmalina A ore body on Q2 and FY 2010 results and beyond 2. Quarterly Outlook for 2nd Half 2010 1 August 10, 2010
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS jaguarisgold 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, concerni
Slide 3: Topics
Topics jaguarisgold A. Operations – Turmalina • Significant changes required to overcome persistent dilution challenge. – Switch from selective stoping to cut-and-fill. Ore Body A contribution impacted tons mined and grade in Q2 and through remainder of 2010. Discussion of chain-of-events leading to
Slide 4: Q2 2010 Highlights
Q2 2010 Highlights jaguarisgold 1) Revenue of $36.9 mm Q2 2010 vs. $32.8 mm in Q2 2009…+12% Gold Price Realized: Q2 2010 - $1,203 vs. $922 in Q2 2009 .. +30% Ounces sold: Q2 2010 – 30,646 vs. 35,561 in Q2 2009 .. -14% 2) Net income: Q2 2010: ($5.9 mm) or (7¢)/share vs. $9.7 mm or 12¢/share in Q2 200
Slide 5: Q2 2010 Highlights (cont'd)
Q2 2010 Highlights (cont’d) jaguarisgold 3) Cash flow from operations: Q2 2010 - $4.5 mm, 5¢/share vs. $12.6 mm or 16¢/share in Q2 2009 4) CAPEX: Q2 2010 investments: $36.5 mm vs. $20.1 in Q2 2009 5) Cash and cash equivalents* as of June 30, 2010: $65.4 mm * - Includes 6-month CD in the amount of $5
Slide 6: Quarterly Gold Production
Operations Quarterly Gold Production jaguarisgold 45,000 41,585 40,758 39,891 37,916 34,936 32,868 31,223 30,586 30,000 Ounces 21,414 20,462 20,782 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 Q4 Q1 Q2 2006 2007 2008 2009 2010 6
Slide 7: Q2 2010 Performance
Q2 2010 Performance jaguarisgold Q2 Au Production: 30,586 oz -26% from Q2 Plan • Turmalina: 15,869 oz -31% from Q2 Plan • Paciência: 14,717 oz -19% from Q2 Plan Recalculated feed grade lower than planned: -20% Impact due to higher than planned tonnage: 0% Impact due to lower recoveries (Turmalina):
Slide 8: Turmalina – Q2
Turmalina – Q2 jaguarisgold 1) Produced 15,869 oz @ $788/oz (cash operating cost) 2) Ore produced: 161,454 tonnes 3) Ore processed: 198,866 tonnes 4) ROM Grade: 3.15 g/t 5) Feed grade: 3.13 g/t 6) Recovery: 85% 7) 1.3 km underground development. 16.9 km in-place – Converting to cut-and-fill at level
Slide 9: Turmalina Cost Profile
Turmalina Cost Profile Cash Operating Cost Per Tonne and Per Oz (Non-GAAP Measure) jaguarisgold R$ Cost per tonne $ Cost per tonne R$ Cost per oz $ Cost per oz 150 1,500 1,409.0 129.3 123.8 123.1 125 113.9 1,200 109.9 108.0 998.2 100 910.0 900 807.2 852.5 759.4 788 75 68.8 58.6 59.4 63.0 62.9 55.9 6
Slide 10: Turmalina – Ore Sources and Grades
Turmalina – Ore Sources and Grades jaguarisgold Q2 2010 Feed Grade of 3.13 g/t into the mill compared to Plan of 3.85 g/t Ore Tonnage and ROM Grade 3.15 Shoots 4.09 160 5.43 5.47 B, C, 120 3.12 3.52 4.08 D (oxides) 2.62 80 6.11 6.14 4.87 40 A 4.07 0 Q1 '09 Q1 '10 Q2 '09 Q2 '10 % from A Ore Body 69%
Slide 11: Shift in Mining Method Due to Geo-Mechanical Issue – Previous Mine Plan
Shift in Mining Method Due to Geo-Mechanical Issue – Previous Mine Plan jaguarisgold Ore Body A NW SE Legend Ore Mined thru Dec „09 Ore to be mined in 2nd Half 2010 Ore to be mined 2011 Ore to be mined 2012 and 2013 Primary Pilar 11
Slide 12: New Mining Sequence Using Cut and Fill
New Mining Sequence Using Cut and Fill jaguarisgold Ore Body A Legend NW SE Primary Pilar Ore Mined through Dec2009 Current mining using slective stoping Temporary Pilar Ore to be mined using cut and fill after 2011 Cut and fill sequence 2 Level 4 1 2010 - 2011 4 3 Level 5 2 2011 1 4 3 Level 6 2 201
Slide 13: New Mining Sequence Using Cut and Fill Opposite Resource Model – Ore Body A
New Mining Sequence Using Cut and Fill Opposite Resource Model – Ore Body A jaguarisgold Resource Model Mine Plan Legend NW SE Primary Pilar Ore Mined until Dec2009 Current mining using slective stoping Temporary Pilar Ore to be mined using cut and fill after 2011 Cut and fill sequence 2 Level 4 1 2
Slide 14: Deep Drill Hole Drift Project
Deep Drill Hole Drift Project jaguarisgold “B” Ore Body “A” Ore Body Project scope: 4,755 meters in 18 drill holes to a depth of 700 meters DH Drift Project Legend Inferred ore to be Development in-place detailed Planned development Drilling in Q3 and Q4 2010 Drilling in 2011 Plunge Direction 14
Slide 15: Paciência – Q2
Paciência – Q2 jaguarisgold 1) Produced 14,717 oz @ $701/oz (cash operating cost) 2) Ore produced: 197,038 tonnes – St. Isabel: 88,157, Pilar: 60,003, Palmital: 18,711, NW1: 30,167 3) Ore processed: 176,088 tonnes 4) ROM Grade: 3.38 g/t – St. Isabel: 2.64 g/t, Pilar: 4.33 g/t, Palmital: 4.91 g/t, NW
Slide 16: Paciência Cost Profile
Paciência Cost Profile Cash Operating Cost Per Tonne and Per Oz (Non-GAAP Measure) jaguarisgold R$ Cost per tonne $ Cost per tonne R$ Cost per oz $ Cost per oz 1,250 125 113.6 1,250 1,179 1,117 103.5 105.8 100.8 101.5 998 968 100 91.7 1,000 857 75 750 701 62.8 651 59.3 59.3 556 49.5 50.1 490 491 50
Slide 17: Caeté
Caeté jaguarisgold Commissioning Underway 1. Underground development: 15.0 km in-place • Pilar mine producing. Will continue to ship ore to Paciência and Caeté through into 2011. • Roça Grande Mine: Shipping ore to Caeté Plant 2. Added 1.4 km in Q2 (Roça Grande and Pilar) • Pilar: Announced intersec
Slide 18: Operations: Cash Operating Cost and Margin
Operations Cash Operating Cost and Margin (Non-GAAP Measure) jaguarisgold $1,250 Cash Margin $1,000 Cash Cost $457 $505 $560 $750 $456 $518 $/oz $496 $445 $401 $519 $391 $397 $349 $500 $209 $235 $236 $389 $337 $209 $746 $597 $455 $461 $466 $539 $250 $405 $428 $396 $409 $451 $352 $376 $373 $372 $328
Slide 19: Outlook
Outlook jaguarisgold 2010 Estimated Feed Grades, By Operation Operation Q1 Actual Q2 Actual Q3 Estimate Q4 Estimate FY 2010 Turmalina 4.16 3.13 3.58 3.41 3.53 Paciência 3.32 3.21 3.44 3.48 3.36 Caeté - - 3.38 3.56 3.48 Average 3.74 3.17 3.48 3.48 3.46 2010 Estimated Gold Production, By Operation Ope
Slide 20: Quarterly Gold Production Q3-Q4 2010 Estimated
Quarterly Gold Production Q3-Q4 2010 Estimated jaguarisgold 60,000 57,500 45,000 43,500 Ounces 30,000 15,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 2008 2009 2010 20
Slide 21: Cash Operating Cost and Margin
Cash Operating Cost and Margin (Non-GAAP Measure) jaguarisgold $1,200 Cash Margin $1,000 Cash Cost $457 $505 $591 $505 $800 $511 $/oz $431 $600 $364 $237 $597 $746 $400 $695 $609 $429 $468 $200 $370 $346 $0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 2006 2007 2008 2009 Actual Actual Estimate Estimate Exchange
Slide 22: Gold Production
Gold Production jaguarisgold 000 oz 600 600 Gurupi 140 Turmalina Paciência 110 400 Caeté 225 200 163 200 155 75 115 69 70 70 38 150 18 64 80 0 30 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Actual 22
Slide 23: Thanks for your continued interest in Jaguar Mining
jaguarisgold Thanks for your continued interest in Jaguar Mining 23