TORONTO, ON / ACCESSWIRE / March 30, 2023 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG)(OTCQX:JAGGF) today announced financial results for the fourth quarter and full year ended December 31, 2022. All figures are in US Dollars, unless otherwise expressed.

Fourth Quarter Highlights

• Revenue decreased 15% to $36.1 million compared with $42.7 million in the fourth quarter of 2021. The decrease was due to a reduction in ounces sold (-10%) and a reduction in realized gold price (-5%), The Company produced 8% less ounces (21,116 vs. 22,903) and with sales of 20,940 ounces in Q4 2022 compared to 23,497 ounces in Q4 of 2021 the Company saw an increase in inventory rather than a decrease.
• Gold production decreased by 8% to 21,116 ounces compared to 22,903 ounces in the fourth quarter of 2021. The lower production rate was due to a reduction in tonnes of ore processed of 2% and a decrease in head grade of 5%.
• Operating costs totaled $21.4 million an increase of 14% compared to $18.8 million in the fourth quarter of 2021. The increase in operating costs came predominantly from a 29% increase in secondary development combined with the inflationary pressures of the first 6 months of the year.
• Cash operating costs¹ increased to $1,024 per ounce of gold sold compared to $802 per ounce of gold sold in the fourth quarter of 2021 due to the higher operating costs and the reduction in ounces sold.
• All-in sustaining costs¹ increased to $1,597 per ounce of gold sold compared to $1,127 per ounce of gold sold in the fourth quarter of 2021 due to the cash cost increase explained above, combined with higher sustaining capital expenditures including: additional primary development, rehabilitating a ventilation raise, and investing in a new fleet of trucks for Turmalina and Pilar which was received at the end of December.
• Net income for Q4 2022 increased to $11.5 million, compared with $3.5 million in Q4 2021, which includes an impairment reversal of $10.7 million in Q4 2022 due to the increase in inferred resources, compared with an impairment charge of $10.1 million in Q4 2021. Others major variances included a $6.6 million decline in revenue, $2.6 million increase in operating costs, $1.6 million reduction on foreign exchange gain, and an income tax expense increase of $1.9 million.
• Free cash flow¹ was $1.5 million and was based on operating cash flow plus asset retirement obligation expenditures, less capital expenditures, compared to $8.2 million in the fourth quarter of 2021. Free cash flow was $72 per ounce of gold sold compared to $348 per ounce of gold sold in the fourth quarter of 2021.

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¹ This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-GAAP Performance Measures section of the MD&A.

Full Year Highlights

• Revenue decreased 6% to $142.5 million compared with $151.5 million in 2021, primarily due to lower ounces of gold sold of 80,050 ounces as compared to 84,638 ounces in 2021, combined with a decrease in the average realized gold price of $1,780 per ounce compared to $1,790 per ounce in 2021.
• Gold production for the year decreased 3% to 80,968 ounces compared to 83,878 ounces produced in 2021.
• Operating cash flow of $40.8 million; adjusted EBITDA of $45 million.
• Cash operating costs¹ increased to $1,052 per ounce of gold sold compared to $831 per ounce of gold sold in 2021 mainly due to the reduction in ounces of gold sold, combined with inflation and an increase in secondary development metres compared to 2021.
• All-in sustaining costs¹ increased to $1,483 per ounce of gold sold compared to $1,215 in 2021, primarily due to the increase of in cash operating cost¹ explained above.

Cash Position and Working Capital¹

• As at year end, the Company had a cash and cash equivalents position of $25.2 million, compared to $40.4 million as of December 31, 2021.
• As at year end, working capital¹ was $19.5 million, compared to $32 million as of December 31, 2021, which includes $3 million in short term loans from Brazilian banks.

Full Year 2023 Guidance
The Company previously provided its 2023 guidance on January 11, 2023. Details of production and cost guidance for the year are summarized in the table below.

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Vern Baker, President and CEO of Jaguar Mining stated: "We are pleased to report our fourth quarter and full year financial results for 2022. It was a challenging year. We focused on investing in strengthening our mines, developing the Faina project, and exploration. This investment in exploration, development, equipment, and project engineering are providing the base for our future production. Our primary growth source remains the Faina project where we have been investing in an access ramp, in significant upgrading of the resource through surface drilling, and in progressing engineering to allow full definition of the project. For the year, we kept our total sustaining capital relatively consistent while we were able to rehabilitate a ventilation raise and pay for a significant portion of a new truck fleet for the Pilar mine. We also increased our growth and exploration spending by 90% as we invested strongly into future opportunities.

"In 2022, balance sheet strength and free cash flow generation enabled us to invest almost $24 million in growth projects, including advancing the Faina project. We also committed an additional $6 million into our greenfield exploration effort while paying $7 million in dividends. Our cash balance was impacted in the fourth quarter with more development, the rehabilitation of the ventilation raise and the purchase of a new fleet of haul trucks for Pilar. These trucks match a partial fleet we have at Turmalina that have positively impacted performance in our mine haulage."

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¹ This is a Non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-GAAP Performance Measures section of the MD&A.

During the fourth quarter, our team continued to focus on consistent ounce production and increasing development meters at our mines. Diamond drilling reduced during the quarter as our Faina drilling efforts came to an end and we began preparing for new campaigns in 2023 at both mines and at several exploration opportunities."

Fourth Quarter and Full Year 2022 Results

2021 Restatement

During the preparation of the Company's financial statements for the year ended December 31, 2022, an error was identified on the determination of the net book value in the impairment model for one of the cash-generating units (CGUs) for the year ended December 31, 2021, and as such, required a restatement of the financial statements for the year ended December 31, 2021, March 31 2022, June 30, 2022 and September 30, 2022, to reflect an impairment. There was no impact to the consolidated statement of cash flows as a result of this restatement of impairment charges. For further details, consult Note 27 of the audited consolidated financial statements for the year ended December 31, 2022, available on SEDAR. KPMG LLP has not withdrawn its audit opinion letter dated March 21, 2022, that accompanies the Company's financial statements for the year ended December 31, 2021 (as filed on SEDAR on March 21, 2022). Going forward in 2023, the Company will design and implement additional internal controls to review the impact of past impairments and reversals of past impairments on the calculation of depreciation and net book values, as well as policies and procedures to improve the overall effectiveness of internal control over financial reporting of the impairment model. Notwithstanding, the Company is confident that its disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR) were effective for the Company's annual 2022 filings without a material weakness.

Non-GAAP performance

The Company has included the following Non-GAAP performance measures in this document: cash operating costs per ounce of gold sold, all-in sustaining costs per ounce of gold sold, average realized gold price (per ounce of gold sold), sustaining capital expenditures, non-sustaining capital expenditures, adjusted operating cash flow, free cash flow, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and working capital. These Non-GAAP performance measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies.

The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. More specifically, Management believes that these figures are a useful indicator to investors and management of a mine's performance as they provide: (i) a measure of the mine's cash margin per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the mine matures; and (iii) an internal benchmark of performance to allow for comparison against other mines. The definitions of these performance measures and reconciliation of the Non-GAAP measures to reported IFRS measures are outlined below.

Reconciliation of Free Cash Flow¹

Reconciliation of Cash Operating Costs, All-In Sustaining Costs and All-In Costs per Ounce Sold¹