Jaguar Mining (TSX: JAG) is a Canadian gold producer with activities in Brazil.
Is Jaguar Mining a good investment? In this article we try our best to answer that question. You will also find detailed information about the company’s activities, key people and history.
Jaguar Minings’ Performance
Is Jaguar Mining a Good Investment?
A Growing Gold Producer in Brazil
Jaguar Mining Inc. is a Canadian-chartered gold producer operating in the mineral-rich Iron Quadrangle of Minas Gerais, Brazil. With a focus on sustainable growth, the company operates the Turmalina and Pilar mines and the Caeté processing complex, producing approximately 85,000 ounces of gold annually. Jaguar is actively investing in exploration and development, leveraging existing infrastructure and excess milling capacity to significantly increase production.
Growth Potential with Minimal Capital Outlay
Jaguar is uniquely positioned to expand its production output by 50–100% over the coming years. This growth can be achieved efficiently by utilizing its existing mills and infrastructure, minimizing the need for significant capital investment. The company plans to capitalize on several fully permitted or near-production deposits within its concession areas, as well as potential joint ventures and acquisitions.
The Faina zone at the Turmalina complex and ongoing development at the Pilar mine offer immediate opportunities to increase production. These efforts, combined with strong operational efficiency, highlight Jaguar’s commitment to maximizing shareholder value.
Financial Stability and Profitability
Jaguar Mining maintains a debt-free balance sheet and funds its development projects entirely through operating cash flow. As of mid-2024, the company reported $37.4 million in liquidity, a 70% increase from the previous year. The company’s All-in Sustaining Costs (AISC) have declined, reaching $1,517 per ounce in Q2 2024 compared to $1,781 per ounce in Q2 2023. With an average realized gold price of $2,228 per ounce in the first half of 2024, Jaguar achieved an AISC margin of $670 per ounce, driving robust profitability and free cash flow.
Gold Price Tailwinds and Favorable Currency Trends
Jaguar Mining’s performance is closely linked to gold prices, which are expected to rise amid global economic uncertainties and strong safe-haven demand. Analysts project further increases in gold prices, potentially exceeding $3,000 per ounce by mid-2025. Additionally, the expected weakening of the Brazilian Real against the US Dollar is anticipated to lower operating costs, further boosting profitability.
Risks and Considerations
While Jaguar’s financial position and growth outlook are strong, investors should be aware of potential risks. The stock is relatively illiquid, which may pose challenges during market downturns. Additionally, shares currently trade near the upper end of their price cycle, suggesting limited near-term upside.
Investment Outlook
Jaguar Mining offers an attractive long-term growth opportunity, supported by its strong financial foundation, efficient operations, and the potential for significant production increases. While current valuations may warrant caution for immediate purchases, the company’s strategic initiatives and favorable market conditions position it as a compelling investment for the future.
Does Jaguar Mining Pay Dividends?
Yes, there are typically 4 dividends per year.
What Does Jaguar Mining Do?
A Junior Gold Mining Company in Brazil
Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company. It operates primarily in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais, Brazil. This region is well-known for its extensive mining history and world-class gold deposits. Jaguar’s assets include three gold mining complexes and a vast land package covering approximately 42,000 hectares, offering significant exploration potential.
Key Operating Assets
Jaguar’s principal assets are the Turmalina Gold Mine Complex (MTL) and the Caeté Gold Mine Complex, which encompasses the Pilar mine and the Caeté Plant. Together, these operations produced approximately 70,000 ounces of gold in 2023, with similar production levels planned for 2024.
The company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. This site is expected to restart operations in early 2025, potentially adding to the company’s production capacity.
Exploration and Development Opportunities
In addition to its existing operations, Jaguar Mining has a portfolio of exploration projects located near its operating sites, including the Onças de Pitangui project. These projects are designed to deliver long-term, high-return growth with relatively low capital investment, positioning the company for sustained expansion.
Strategic Location and Infrastructure
All of Jaguar’s assets are situated near the city of Belo Horizonte, a hub for Brazil’s mining industry. The region provides robust infrastructure to support large-scale mining activities, including transportation, power, and skilled labor.
A Rich Mining History in the Iron Quadrangle
The Iron Quadrangle has a legacy of mineral exploration dating back to the 16th century. It is home to several multi-million-ounce gold deposits, such as Morro Velho, Cuiabá, and São Bento, underlining the region’s potential for continued resource discovery and development.
Which Assets Does Jaguar Mining have?
MTL Complex
The MTL Complex, located 110 kilometers west of Belo Horizonte, includes the Turmalina gold mine and processing plant, three satellite deposits (Faina, Pontal, and Zona Basal), and the Onças de Pitangui Project. It serves as a cornerstone of Jaguar Mining’s operations.
Turmalina Mine
Turmalina is an underground gold mine employing sub-level stoping as its primary mining method, with backfilling conducted using loose rockfill or cemented paste. The mine consists of four main ore bodies, including Orebodies B and C and the Faina Zone, as well as the Pontal deposit located to the northwest.
The onsite Turmalina processing plant has a grinding capacity of 2,000 tonnes per day and is strategically positioned just 200 meters from the C-zone portal.
Faina Zone
Faina is a new ore body at the Turmalina mine, with lateral development completed at the end of 2023. Initial milling began in the second quarter of 2024, and first-stope production is planned for the second half of 2024. The additional production from Faina is expected to optimize the processing capacity at the MTL Complex.
Caeté Complex
Situated 50 kilometers east of Belo Horizonte, the Caeté Complex comprises the Pilar gold mine, the Caeté processing plant, and the Roça Grande gold mine. The Roça Grande mine has been on care and maintenance since 2018.
Pilar Mine
The Pilar underground mine primarily uses sub-level stoping, with loose rockfill for backfilling. The main ore block is located within a folded banded iron formation, extending to the 16th level and potentially deeper. The majority of production comes from this main ore block, supplemented by 15–25% from the Southwest Zone, which is mined at higher levels (2 through 9).
The 2,000 tonnes-per-day Caeté processing plant, located approximately 40 kilometers from Pilar, processes ore from the mine.
BA Zone
The BA zone, a high-grade area rediscovered in late 2022, has shown promising results. By mid-2024, the Pilar mine began reaping the benefits of increased grades and incremental production from this zone, with further contributions expected in the future.
Roça Grande Mine
The Roça Grande mine, adjacent to the Caeté plant, remains on care and maintenance. This mine was initially the primary ore source for the Caeté processing plant.
Paciência Complex
The Paciência Complex, located 80 kilometers southeast of Belo Horizonte, has been on care and maintenance since May 2012. It includes the Santa Isabel and Marzagão underground gold mines and a processing plant with a capacity of 2,000 tonnes per day, all situated within approximately 9,000 hectares of permitted mining tenements. Between 2008 and 2012, the plant processed approximately 1,755,000 tonnes of ore, producing 154,000 ounces of gold at an average grade of 3.06 g/t and a recovery rate of 89%.
Santa Isabel Mine
Jaguar Mining is assessing the feasibility of restarting the fully permitted Santa Isabel mine, with plans to initially haul ore to the Caeté plant, located about 35 kilometers away.
Onças de Pitangui Project
Acquired in September 2023, the Onças de Pitangui Project is located approximately 110 kilometers northwest of Belo Horizonte, near the Turmalina Complex. This project includes mineral exploration licenses and applications covering the Pitangui greenstone belt.
Gold mineralization is found within banded iron formations, associated with sulphide replacement of magnetite bands. Drilling has identified two main mineralized horizons, “Biquinho” and “Pimentao,” separated vertically by approximately 100 meters.
Tailings Storage Facilities (TSFs)
Jaguar Mining operates four tailings storage facilities (TSFs): the Turmalina Dam, Moita Dam, RG2W Dam, and Paciência Dam. Each facility features a tailored control and monitoring system managed by trained internal staff, supported by external experts.
The company places high importance on TSF safety, maintaining an updated TSF Safety Plan that aligns with regulatory requirements. Regular training, inspections, and simulations are conducted to ensure proactive management and structural integrity.
What is the Company’s History?
Jaguar was formed in 2002. Today it has established a significant presence in Brazil’s Iron Quadrangle, a renowned greenstone belt in Minas Gerais state. The company operates two active gold mining complexes—the Turmalina Gold Mine Complex and the Caeté Gold Mine Complex, which includes the Pilar mine and the Caeté Plant. These operations collectively produced approximately 70,000 ounces of gold in 2023, with similar production targets set for 2024.
In addition to its active mines, Jaguar owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. Beyond its current mining operations, the company holds a large land package spanning approximately 42,000 hectares, providing extensive exploration potential for future growth and resource expansion.
Key People
Management Committee
Vernon Baker – Chief Executive Officer (CEO)
Appointed as CEO in August 2019, Mr. Vernon Baker brings over 36 years of experience in the mining industry, with extensive expertise in operations and management. Before joining Jaguar Mining, he served as General Manager at Goldcorp’s Cerro Negro Mine in Argentina, overseeing high-grade production and implementing cost-reduction and safety improvement programs. Mr. Baker has also held senior roles at Duluth Metals Limited, FNX Mining, Barrick Goldstrike Mines Inc., and Hemlo Operations.
Alfred Colas – Chief Financial Officer (CFO)
Mr. Alfred Colas joined Jaguar Mining with over 20 years of experience in finance roles at publicly listed mining and forestry companies. Notable positions include Finance Manager at Barrick Gold Corp’s Veladero Mine, CFO at Excellon Resources, and CFO of GreenFirst Forest Products. He holds a Bachelor of Commerce degree from the University of Toronto and is a Chartered Accountant.
Jonathan Victor Hill – Qualified Person (QP)
Mr. Jonathan Hill joined Jaguar Mining in 2017, bringing over 30 years of global experience in exploration, mining operations, and project development. He has previously held senior positions at AngloGold Ashanti, where he was involved in significant discoveries. Mr. Hill is also a Non-Executive Director at Royal Road Minerals Limited and Stratabound Minerals Corporation.
Eric Duarte – Vice President of Business Development
Joining Jaguar Mining in 2017, Mr. Eric Duarte was promoted to Vice President of Operations in 2019. With over 20 years of international mining experience, he has led projects in the USA, South Africa, Australia, and Tanzania. Mr. Duarte holds degrees in geology and business administration, with executive training from Harvard and Stanford Business Schools.
Marina Fagundes de Freitas – Vice President of Finance and Projects
Ms. Fagundes de Freitas has over 17 years of experience, including roles at Deloitte and Holcim. Joining Jaguar Mining over a decade ago, she has been instrumental in developing internal audit functions and risk compliance programs. She oversees strategic planning, legal, CSR, security, and growth projects.
Board of Directors
Jeff Kennedy – Chairman and Director
Appointed to the Board in 2019 and Chairman in 2020, Mr. Kennedy brings over 30 years of financial expertise, including roles as Managing Director and CFO at Cormark Securities Inc. He is a Chartered Professional Accountant and holds a Bachelor of Commerce from McMaster University.
Benjamin Guenther – Director
Mr. Guenther, appointed in 2017, is a mining engineer with over 40 years of experience. He previously served as Interim CEO of Jaguar Mining and held leadership roles at AngloGold Ashanti. Mr. Guenther is also the founder of Platoro Mine Consulting LLC.
Luís Ricardo Miraglia – Director
Mr. Miraglia, appointed in 2012, is a Senior Partner at Azevedo Sette Advogados specializing in corporate law and mining law. He holds a law degree from the Universidade Federal de Minas Gerais and a Master of Laws from the University of Chicago.
Mary-Lynn Oke – President and Director
Ms. Oke, appointed in 2021, has over 25 years of experience in tax, finance, and senior leadership roles, including Vice President of Finance at Hudbay Minerals Inc. She holds a Bachelor of Arts in Business Administration and is a Chartered Professional Accountant.
Shastri Ramnath – Director
Appointed in 2020, Ms. Ramnath is the President and CEO of Exiro Minerals Corp. and Non-Executive Chair of Orix Geoscience Corp. With over 25 years in the industry, she holds a Bachelor of Science in Geology, a Master of Science in Exploration Geology, and an Executive MBA.
Thomas S. Weng – Director
Mr. Weng, a board member since 2016, brings over 25 years of experience in financial services. As Co-Founding Partner of Alta Capital Partners, he has advised on numerous mining and metals transactions. He holds a Bachelor of Arts in Economics from Boston University.