JAG ~ Jaguar Mining Announces Third Quarter 2013 Financial Results
CNW Group Jaguar Mining Inc.
1 hour ago
TSX: JAG
TORONTO , Nov. 7, 2013 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG.TO) today reported a net loss of $13.2 million or $0.15 per fully diluted share for the quarter ended September 30, 2013. This result compares to a net loss of $21.6 million or $0.26 per fully diluted share in the third quarter of 2012. The third quarter 2013 result includes an interest expense of $8.6 million , a foreign exchange loss of $0.3 million , and a $0.2 million unrealized non-cash gain on the conversion option embedded in convertible debt (see note 1). Excluding these non-operating items, Jaguar's third quarter result was a net loss of $4.5 million or $0.05 per fully diluted share.
Third Quarter Developments
14% increase in gold production totaling 26,300 ounces in Q3 2013 compared to 23,026 ounces in Q3 2012;
3% increase in gold sales totaling 24,111 ounces in Q3 2013 compared to 23,307 ounces in Q3 2012;
12% decline in cash operating cost reaching $846 per ounce in Q3 2013 versus $963 per ounce in Q3 2012;
34% reduction in all-in cost improving from $1,912 per ounce sold in Q3 2012 to $1,264 per ounce sold in Q3 2013;
Capital expenditure projection reduced from $28.9 million as disclosed in Q2 2013 to $24.5 million for 2013;
$5.1 million cash generated from operating activities in Q3 2013 compared to $2.6 million cash consumed in Q3 2012;
Working capital deficiency of $39.9 million as of September 30, 2013 ;
On November 1, 2013 , the Company entered into a non-binding term sheet (the "Term Sheet") outlining the terms of a recapitalization and financing transaction with an ad hoc committee (the "Ad Hoc Committee") of noteholders (who represent a majority of the holders of the Company's 4.5% Senior Unsecured Convertible Notes due November 1, 2014 ("4.5% Convertible Notes") and US$103.5 million 5.5% Senior Unsecured Convertible Notes due March 31, 2016 (together with the 4.5% Convertible Notes, the "Convertible Notes")) and received support from the Ad Hoc Committee to defer the semi-annual interest payment due November 1, 2013 on the 4.5% Convertible Notes; and
16% reduction in headcount in Q3 2013 compared to Q3 2012.
