Jaguar Mining (TSX: JAG) swung back to profitability in the second quarter on a sharp rise in revenue, though the improvement came alongside a steep climb in per ounce costs.
Revenue rose 43% to $51.4 million from $35.8 million a year earlier, and was up 15% from the $44.6 million booked in the first quarter. The gold producer reported net income of $15.5 million, or $0.18 a share, against $4.7 million, or $0.05 a share, in the first quarter and a loss of $6.6 million, or $0.08 a share, a year ago.
On an adjusted basis the year over year picture was flatter. Adjusted net income of $17.4 million, up from $16.3 million, worked out to $0.20 a share against $0.21 a year earlier, though well ahead of the $0.12 posted three months prior. Adjusted EBITDA rose 4% from a year ago and 29% from the first quarter, reaching $30.7 million.
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Cash and equivalents finished at $74.0 million, up from $71.2 million at March 31, with working capital of $23.2 million and notes payable of $6.3 million. Free cash flow of $6.6 million fell from $10.1 million in both the first quarter and the year ago period, weighed down by $12.8 million of capital spending.
Gold production climbed 19% year over year and 36% sequentially to 13,057 ounces. Pilar accounted for 9,063 ounces, while the ramp up at Turmalina delivered 3,994 ounces, roughly 31% of the total. The two operations processed 146,210 tonnes at 3.17 grams per tonne. Sales lagged output at 11,694 ounces.
Costs are the line item that stands out. Cash operating costs rose to $1,834 an ounce from $1,190 a year earlier and $1,565 in the first quarter, while all-in sustaining costs reached $2,840 from $1,814 last year and $2,412 in Q1. Realized gold pricing came in at $4,391 an ounce, up 35% from a year ago but down from $4,875 in the first quarter.
Jaguar left full-year guidance unchanged at 50,000 to 60,000 ounces. With 22,687 ounces through six months, a considerably stronger second half is needed to reach even the low end.
Chief Executive Officer Luis Albano Tondo said the priority for the balance of the year is “straightforward: keep executing on production and costs while advancing the drilling that will tell us how much of our land package can add to our reserve base.”
Jaguar Mining last traded at $7.00 on the TSX.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
