In this interview, Jaguar Mining CFO Hashim Ahmed and V.P. Exploration & Mine Development Jonathan Hill give us a review of 2020 production numbers and accomplishments, as well as an update on current exploration plans to grow the company's mineral reserves and measured resources. We then go into Q&A where we discuss goals over the next year and further into the future, plans around gaining more U.S. exposure, whether they plan on hedging gold or currency exposure, and where it will be focusing its exploration and growth capital, among other things.
2020 was quite a year for Jaguar. The company has managed to eliminate virtually all of its debt and is now producing steady free cash flow of about $10 - $12M USD per quarter, representing a free cash flow yield of approximately 8% on the low end. With the elimination of almost all debt and solid free cash flow in play, Jaguar is now paying an attractive dividend to shareholders, with an implied dividend yield of about 3.6% at the time of writing (based on a share price of $8.92 CDN). Additionally, in August of 2020, the company consolidated it's shares successfully at a 10:1 ratio, making it a penny stock no longer. Unlike many companies who consolidate their shares, Jaguar's share price has risen since then, showing that they successfully managed this process and it has been viewed favourably by some buyers who were perhaps limited in their ability to purchase shares prior.
The company's production in 2020 was 91,000+ ounces of gold, coming in on the higher end of their 2020 guidance (84,000 - 94,000 oz), which represented a 23% year-over-year growth. For 2021, Jaguar is targeting 100,000 ounces (95,000 - 105,000 range) and they are very confident they will be able to hit this goal. While Jaguar has been challenged like all other mining companies due to the worldwide virus situation, they have still managed the situation effectively as demonstrated by meeting their 2020 production targets. The company has doubled it's exploration budget in 2021 from $6M to $12M and it has four primary focuses: Faina, Zona Basal, Corrego Brandao and its IAMGold JV in the Iron Quadrangle (IQ) near to its Pacienca plant (currently in care & maintenance, representing potential excess capacity). Jaguar is expecting metallurgical test work results from Faina and drilling assays from Zona Basal and Corrego Brando in February. The Company expects to begin drilling its IQ JV targets in April or May, pending permitting approval.
00:00 - Introduction
01:24 - Review of 2020 Production and Accomplishments
07:35 - 2021 Growth Catalysts & Exploration Plans
24:11 - Q&A: Production, Financials & Capital Markets Aspects
40:05 - Q&A: Exploration Aspects
Jaguar Mining is a junior gold production, development and exploration company focused on gold in the Iron Quadrangle of the Minas Gerais province of Brazil. The Iron Quadrangle (IQ) is a prolific greenstone belt that has been continuously mined for the last 300 years. The IQ is considered the 3rd most endowed greenstone belt in the world, behind the much more well known and well explored Abitibi greenstone belt in Canada. Jaguar has two active mining operations in the IQ: Pilar and Turmalina (both with mills running substantially below capacity with room for growth), as well as the Pacienca mining complex which is currently in care & maintenance. Jaguar enjoys strong institutional support in its share structure: billionaire gold investor Eric Sprott owns just under 50% of the company, with other notable shareholders including Sprott Asset Management, Wolverine Asset Management and Coast Capital.
Jaguar currently trades on the Toronto Stock Exchange, symbol TSX: JAG.
For more information on the company, visit their website at: https://www.jaguarmining.com/
You can contact Jaguar Investor Relations via E-mail at: email@example.com
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Originally filmed on January 20th, 2021