Jaguar Mining Reports Q2 2007 Earnings



    Growth in Production Leads to Record Sales, Adjusted Cash Flow Totals
    $5.8 Million

    JAG - TSX/NYSE Arca

    CONCORD, NH, Aug. 9 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the
"Company") (JAG: TSX/NYSE Arca, JAG.NT: TSX) reports its financial and
operational results for the period ended June 30, 2007. All figures are in
U.S. dollars unless otherwise indicated.

    Q2 2007 Highlights
    
    -   Revenue totaled $11.4 million, an increase of 109% from the same
        period last year;
    -   Gross profit rose to $4.3 million compared to $1.2 million for the
        same period in 2006;
    -   Positive operating cash flow from operating activities of
        $2.8 million compared to negative cash flow of $0.6 million in Q2
        2006. Operating cash flow before changes in working capital totaled
        $5.8 million during the quarter compared to $2.2 million in Q2 2006;
    -   Net loss of $3.7 million or $0.07 per fully diluted share compared to
        a net loss of $2.8 million or $0.06 per fully diluted share in
        Q2 2006;
    -   Non-cash charges for stock option related expenses of $4.0 million
        significantly impacted net earnings by $0.07 per diluted share.
        Excluding the non-cash charge for stock option related expenses,
        adjusted income totaled $355,000 or $0.01 per diluted share compared
        to a loss of $149,000 or $0.00 per diluted share in Q2 2006;
    -   Gold production of 17,188 ounces ("oz") and gold sales of 17,177 oz
        at an average realized price of $665/oz compared to production of
        10,114 oz and sales of 8,763 oz at an average price of $624/oz in
        Q2 2006;
    -   Cash operating costs averaged $328/oz for Q2 2007 compared to $376/oz
        for the same period in 2006. Cash operating costs of $258/oz at
        Turmalina operation, which represented over 60% of 2007 year-to-date
        gold production;
    -   Total cash and restricted cash of $86.3 million including
        $3.3 million of restricted cash, most of which is related to foreign
        exchange hedges;
    -   Invested approximately $12.2 million in growth initiatives during
        Q2 2007, primarily at the Company's Paciência and Caeté Projects
        under development;
    -   Measured and indicated gold resources increased to approximately
        2.9 million oz or by 10% from the resource base reported in early
        2007; inferred resources increased 8% to 850,210 oz. These results
        were reported by the Company on July 19, 2007;
    -   Turmalina Operations declared 'Commercial';
    -   Paciência feasibility study finalized and 40% of project completed at
        June 30 and 50% at July 31, which is advancing on budget and on
        schedule;
    -   Caeté feasibility study advanced and will be completed during Q3 2007
        and
    -   All permits needed for development of the projects underway in Brazil
        have been granted.
    

    Commenting on the second quarter results, Daniel R. Titcomb, Jaguar's
President and CEO stated, "With Turmalina now operating at commercial rates of
production, and at current gold prices, our operating cash flow will
accelerate over the next several quarters as we bring on-line new low-cost
sources of production at Paciência and Caeté. We believe Jaguar is uniquely
positioned to rapidly deliver increased shareholder value: our resource base
in Brazil is trending higher and will continue to grow significantly through
our aggressive exploration program; our experienced operating team in Brazil
is unmatched in building new low-cost mines and processing facilities on
schedule; and we have the financial resources in-hand to capitalize on our
plan to reach 300,000 oz of gold production in 2009."

    2007 Second Quarter Results

    Jaguar's adjusted cash flow from operating activities benefited from
growth in sales volumes at higher prices and totaled approximately
$5.8 million in Q2 as shown in the following table:

    
    Adjusted Cash Flows from Operating Activities

    A non-GAAP Measure
    (Expressed in thousands of U.S. dollars)
    -------------------------------------------------------------------------
                                    Q2 2007   YTD 2007    Q2 2006   YTD 2006
    -------------------------------------------------------------------------
    Cash flow from operating
     activities as Reported        $  2,819   $    996   $   (571)  $ (3,214)
    -------------------------------------------------------------------------
    Adjustment:
    -------------------------------------------------------------------------
    Change in non-cash operating
     working capital                  2,970      5,717      2,785      4,681
                                   ---------  ---------  ---------  ---------
    -------------------------------------------------------------------------
    Adjusted cash flow from
     operating activities          $  5,789   $  6,713   $  2,214   $  1,467
    -------------------------------------------------------------------------
    

    For the quarter ending June 30, 2007, the Company exhibited strong growth
with record revenue of $11.4 million from the sale of 17,177 oz of gold at an
average realized price of $665/oz. This compares to revenue of $5.5 million
from the sale of 8,763 oz of gold at an average price of $624/oz for the same
period in 2006. Gold production for Q2 2007 totaled 17,188 oz at an average
cash operating cost of $328/oz compared to production of 10,114 oz and average
cash operating costs of $376/oz for Q2 2006. Net loss for Q2 2007 was
$3.7 million or $0.07 per fully-diluted share versus a reported net loss of
$2.8 million or $0.06 per share for the same period last year.

    
    A summary of key operating results follows:

    -------------------------------------------------------------------------
                                Q2 2007    YTD 2007     Q2 2006    YTD 2006
    -------------------------------------------------------------------------
    Sales ($000)              $   11,415  $   17,957  $    5,471  $    7,596
    -------------------------------------------------------------------------
    Oz sold                       17,177      27,062       8,763      12,549
    -------------------------------------------------------------------------
    Average realized price
     $/oz                     $      665  $      664  $      624  $      605
    -------------------------------------------------------------------------
    Gross profit ($000)       $    4,342  $    7,704  $    1,221  $    1,132
    -------------------------------------------------------------------------
    Net loss ($000)           $   (3,685) $   (4,181) $   (2,841) $   (9,005)
    -------------------------------------------------------------------------
      - per share basic       $    (0.07) $    (0.08) $    (0.06) $    (0.23)
    -------------------------------------------------------------------------
      - per share diluted     $    (0.07) $    (0.08) $    (0.06) $    (0.23)
    -------------------------------------------------------------------------
    Weighted avg. shares
     outstanding              55,239,628  51,831,209  45,783,120  40,063,903
    -------------------------------------------------------------------------
    Diluted shares
     outstanding              55,239,628  51,831,209  45,783,120  40,063,903
    -------------------------------------------------------------------------
    
    The reported loss for Q2 2007 includes non-cash charges of $4.0 million
for stock option related expenses, which impacted net earnings by $0.07 per
diluted share.

    Adjusted Net Income (Loss)

    
    A non-GAAP Measure
    (Expressed in thousands of U.S. dollars except per share amounts)

    -------------------------------------------------------------------------
                                    Q2 2007   YTD 2007    Q2 2006   YTD 2006
    -------------------------------------------------------------------------
    Net loss per consolidated
     financial statements          $ (3,685)  $ (4,181)  $ (2,841)  $ (9,005)
    -------------------------------------------------------------------------
    Adjustment:
    Stock-based compensation          4,040      4,241      2,692      2,797
    -------------------------------------------------------------------------
    Adjusted income (loss)              355         60       (149)    (6,208)
    -------------------------------------------------------------------------
    Adjusted income (loss)
     per share                     $   0.01   $   0.00   $   0.00   $  (0.16)
    -------------------------------------------------------------------------
    

    Approximately two-thirds of the Company's cash and cash equivalents of
$86.3 million held at June 30 were in accounts in Brazil. Variations in the
relative currencies (Canadian dollar versus U.S. dollar versus Brazilian real)
will likely give rise to realized and unrealized credits or charges in future
periods, which could materially impact the Company's reported income.
    Additional details are available in the Company's filings on SEDAR and
EDGAR, including Management's Discussion and Analysis of Financial Condition
and Results of Operations and Interim Consolidated Financial Statements for
the period ended June 30, 2007.

    Outlook

    The Company currently estimates 2007 gold production at approximately
81,000 oz with average cash operating costs ranging between $300 and $315 per
oz. The Company's current outlook is based on an exchange rate between the
Brazilian real and the U.S. dollar of R$1.90 = US$1. As previously announced
by Jaguar on July 19, 2007, the Company does have forward exchange contracts
in-place to mitigate some of the impact if the U.S. dollar weakens further
against the Brazilian real. Although not reported as such, applying the gain
from these foreign exchange instruments against production would reduce
average cash production costs by an estimated $20 per oz from the estimates
provided above.

    Analyst Meeting and Tour: October 16-19

    The Company currently has two major gold projects under development in
Brazil which will significantly expand production over the next 18 months.
Jaguar will hold an analyst meeting and tour the Company's operations and
projects under development in Minas Gerais, Brazil, beginning October 16,
2007. The Company is coordinating this trip with Aquiline Resources, which
will conduct a tour at its properties in Argentina the following week.
Qualified individuals interested in taking a tour of either Jaguar's
operations or Aquiline's properties should contact Valéria DioDato for
additional information.

    NON-GAAP PERFORMANCE MEASURES

    The Company has included the non-GAAP performance measures listed below
in this press release. These non-GAAP performance measures do not have any
standardized meaning prescribed by GAAP 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 GAAP, 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 with GAAP.
    The Company has included Cash Operating Cost per ounce processed because
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 for these performance measures and reconciliation of the non-GAAP
measures to reported GAAP measures are in the 'Cash Operating Cost per ounce
processed' table below.
    The Company uses the financial measures "adjusted net income (loss)" and
"adjusted net income (loss) per share" to supplement its consolidated
financial statements. The presentation of adjusted measures are not meant to
be a substitute for net income (loss) or net income (loss) per share presented
in accordance with GAAP, but rather should be evaluated in conjunction with
such GAAP measures. Adjusted net income (loss) and adjusted net income (loss)
per share are calculated as net income (loss) excluding stock based
compensation expense. The terms "adjusted net income (loss)" and "adjusted net
income (loss) per share" do not have a standardized meaning prescribed by
Canadian GAAP, and therefore the Company's definitions are unlikely to be
comparable to similar measures presented by other companies. The Company's
management believes that the presentation of adjusted net income (loss) and
adjusted net income (loss) per share provide useful information to investors
because they exclude a certain non-cash charge and are a better indication of
the Company's profitability from operations. The item excluded from the
computation of adjusted net income (loss) and adjusted net income (loss) per
share, which is otherwise included in the determination of net income (loss)
and net income (loss) per share prepared in accordance with Canadian GAAP, is
an item that the Company does not consider to be meaningful in evaluating the
Company's past financial performance or the future prospects and may hinder a
comparison of its period to period profitability.
    The Company uses the financial measure "adjusted cash flows from
operating activity" to supplement its consolidated financial statements. The
presentation of adjusted cash flows from operating activity is not meant to be
a substitute for cash flows from operating activities presented in the
statement of cash flows in accordance with GAAP, but rather should be
evaluated in conjunction with such GAAP measures. Adjusted cash flows from
operating activity is calculated as operating cash flow excluding the change
in non-cash operating working capital. The term adjusted cash flows from
operating activity does not have a standardized meaning prescribed by Canadian
GAAP, and therefore the Company's definitions are unlikely to be comparable to
similar measures presented by other companies. The Company's management
believes that the presentation of adjusted cash flows from operating activity
provides useful information to investors because it excludes certain non-cash
changes and is a better indication of the Company's cash flow from operations.
The items excluded from the computation of adjusted cash flows from operating
activity, which are otherwise included in the Statements of Cash Flows
prepared in accordance with Canadian GAAP, are items that the Company does not
consider to be meaningful in evaluating the Company's past financial
performance or the future prospects and may hinder a comparison of its period
to period cash flows.

    
    Adjusted Cash Flows from Operating Activity

    A non-GAAP Measure
    (Expressed in thousands of U.S. dollars)
    -------------------------------------------------------------------------
                                    Q2 2007   YTD 2007    Q2 2006   YTD 2006
    -------------------------------------------------------------------------
    Operating Cash Flow as
     Reported                      $  2,819   $    996   $   (571)  $ (3,214)
    -------------------------------------------------------------------------
    Adjustment:
    -------------------------------------------------------------------------
    Change in non-cash operating
     working capital                  2,970      5,717      2,785      4,681
                                   ---------  ---------  ---------  ---------
    -------------------------------------------------------------------------
    Operating Cash Flow before
     changes in working capital    $  5,789   $  6,713   $  2,214   $  1,467
    -------------------------------------------------------------------------


    Cash Operating Cost per oz Processed
    -------------------------------------------------------------------------
    A non-GAAP Measure
    Summary of All Plants Cash Operating Cost per oz Processed
    -------------------------------------------------------------------------
                                Q2 2007    YTD 2007     Q2 2006    YTD 2006
    -------------------------------------------------------------------------
    Production cost per
     statement of operations  $5,750,000  $8,632,000  $3,322,000  $4,880,000
    -------------------------------------------------------------------------
    Change in inventory(1)    $ (114,000) $  300,000  $  480,000  $1,186,000
    -------------------------------------------------------------------------
    Production cost of
     gold produced            $5,636,000  $8,932,000  $3,802,000  $6,066,000
    -------------------------------------------------------------------------
      divided by
    -------------------------------------------------------------------------
    Gold produced (oz)            17,188      29,317      10,114      16,530
    -------------------------------------------------------------------------
      equals
    -------------------------------------------------------------------------
    Cost per oz processed     $      328  $      305  $      376  $      367
    -------------------------------------------------------------------------
    (1) Under the Company's revenue recognition policy, revenue is recognized
        when legal title passes. Since total cash operating costs are
        calculated on a production basis, this change reflects the portion of
        gold production for which revenue has not been recognized in the
        period.


    Adjusted Net Income (Loss)

    A non-GAAP Measure
    (Expressed in thousands of U.S. dollars except per share amounts)

    -------------------------------------------------------------------------
                                    Q2 2007   YTD 2007    Q2 2006   YTD 2006
    -------------------------------------------------------------------------
    Net loss per consolidated
     financial statements          $ (3,685)  $ (4,181)  $ (2,841)  $ (9,005)
    -------------------------------------------------------------------------
    Adjustment:
    Stock-based compensation          4,040      4,241      2,692      2,797
    -------------------------------------------------------------------------
    Adjusted income (loss)              355         60       (149)    (6,208)
    -------------------------------------------------------------------------
    Adjusted income (loss)
     per share                     $   0.01   $   0.00   $   0.00   $  (0.16)
    -------------------------------------------------------------------------
    

    Conference Call Details

    Jaguar will be holding a conference call August 10, at 10:00 am EDT to
discuss its 2007 second quarter results.
    North American participants may access the call toll-free by dialing
866-900-4867. International participants should call 213-416-2194. Persons
wishing to participate in this conference call are asked to dial-in at least
five minutes prior to the start time to ensure prompt access to the call.
    Jaguar will provide a web cast of this call over the Internet, which can
be accessed from the Calendar of Events tab located on the Company's homepage
at www.jaguarmining.com. An archive of the web cast and the audio replay will
be available approximately one hour after the call ends through September 10,
2007. The audio replay can be accessed by calling 800-675-9924 from North
America or 213-416-2185 outside of North America. The replay ID number is
81007. The web cast will be available through the Company's homepage until
September 10, 2007.

    About Jaguar Mining

    Jaguar is one of the fastest growing gold producers in Brazil with
operations in a prolific greenstone belt in the state of Minas Gerais. Jaguar
is actively exploring and developing additional mineral resources at its
72,000 acre land base. Additional information is available on the Company's
website at www.jaguarmining.com.

    Resource estimation was reviewed by Ivan C. Machado, M.Sc., P.E., P.Eng.,
Principal of Salt Lake City based TechnoMine Services, LLC. Mr. Machado serves
as Jaguar's independent Qualified Person in accordance with NI 43-101.

    Forward-Looking Statements

    Certain statements in this press release constitute "Forward-Looking
Statements" within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995 and Canadian securities legislation. This press release
contains Forward-Looking Statements, including statements concerning Jaguar's
future objectives, the measured and indicated resources, their average grade,
the commencement period of production, cash operating costs and completion
dates of feasibility studies, gold production and sales targets, capital
expenditure costs, future profitability and growth in reserves.
Forward-Looking Statements can be identified by the use of words, such as "are
expected", "is forecast", "approximately" or variations of such words and
phrases or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved. Forward-Looking
Statements involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, or performance to be materially different
from any future results or performance expressed or implied by the
Forward-Looking Statements. These factors include the inherent risks involved
in the exploration and development of mineral properties, the uncertainties
involved in interpreting drilling results and other ecological data,
fluctuating gold prices and monetary exchange rates, the possibility of
project cost delays and overruns or unanticipated costs and expenses,
uncertainties relating to the availability and costs of financing needed in
the future, uncertainties related to production rates, timing of production
and the cash and total costs of production, changes in applicable laws
including laws related to mining development, environmental protection, and
the protection of the health and safety of mine workers, the availability of
labour and equipment, the possibility of labour strikes and work stoppages and
changes in general economic conditions. Although the Company has attempted to
identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking information,
there may be other factors that cause actions, events or results to differ
from those anticipated, estimated or intended. These Forward-Looking
Statements represent our views as of the date of discussion. The Company
anticipates that subsequent events and developments may cause the Company's
views to change. The Company does not undertake to update any Forward-Looking
Statements, either written or oral, that may be made from time to time by or
on behalf of the Company subsequent to the date of this discussion. For a
discussion of important factors affecting the Company, including fluctuations
in the price of gold and exchange rates, uncertainty in the calculation of
mineral resources, competition, uncertainty concerning geological conditions
and governmental regulations and assumptions underlying the Company's
Forward-Looking Statements, see the "CAUTIONARY NOTE" regarding
Forward-Looking Statements and "RISK FACTORS" as filed in the Company's Annual
Information Form for the year ended December 31, 2006 filed on SEDAR and
available at www.sedar.com, and its filings, including the Company's
Registration Statement on Form 40-F filed with the U.S. Securities and
Exchange Commission on June 18, 2007, which are available at www.sec.gov
through EDGAR.
    This press release presents estimates of future "total cash cost per
ounce" that are not recognized measures under United States generally accepted
accounting principles ("US GAAP"). This data may not be comparable to data
presented by other gold producers. These future estimates are based upon the
total cash costs per ounce that the Company expects to incur to mine gold at
the applicable projects and do not include production costs attributable to
accretion expense and other asset retirement costs, which will vary over time
as each project is developed and mined. It is therefore not practicable to
reconcile these forward-looking non-GAAP financial measures to the most
comparable GAAP measure. A reconciliation of the Company's total cash cost per
ounce to the most comparable financial measures calculated and presented in
accordance with US GAAP for the Company's historical results of operations is
set forth in the notes to the financial statements in the Company's
Registration Statement on Form 40-F filed with the United States Securities
and Exchange Commission on June 18, 2007, as well as the Company's most recent
interim and annual financial statements filed with the Canadian Securities
Administrators.

    Cautionary Note to U.S. Investors concerning estimates of Inferred and
    Measured and Indicated Resources

    This document includes the term "inferred resources" and "measured and
indicated resources". The Company advises U.S. investors that while such terms
are recognized and permitted under Canadian regulations, the U.S. Securities
and Exchange Commission does not recognize them. U.S. investors are cautioned
not to assume that any part or all of the mineral deposits in these categories
will ever be converted into proven or probable reserves.
    "Inferred resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal feasibility.
It cannot be assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or other
economic study. U.S. investors are cautioned not to assume that any part or
all of an inferred resource exists or is economically or legally mineable.





For further information:

For further information: Investors and analysts: Bob Zwerneman, Director
of Investor Relations, (603) 224-4800, bobz@jaguarmining.com; Media inquiries:
Valéria Rezende DioDato, Director of Communication, (603) 224-4800,
valeria@jaguarmining.com


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