Jaguar posts Q1 net loss

Brazil-focused Jaguar Mining posted a US$1.84mn loss for the first quarter compared to a US$1.78mn loss in the same period of 2018.

Revenue fell 15.1% year-on-year to US$21.4mn, the company said in its latest earnings release.

Toronto-based Jaguar's gold production fell to 16,365oz from 18,865oz, while sales were down to 16,821oz from 19,237oz in 1Q18.

Cash operating costs increased to US$870/oz from US$800/oz. All-in sustaining costs were up to US$1,428/oz from US$1,289/oz, the company said.

During Q1, Jaguar entered into a senior secured loan facility agreement with Auramet International LLC for US$7.85mn to fund working capital. Under the agreement, interest shall be prepaid and non-reimbursable for US$350,000, and the principal is due at maturity on July 15, 2019.

"First quarter results reflect lower production levels from both Turmalina and Pilar. Operational delays related to slot raises, geotechnical issues and lack of flexibility at Turmalina resulted in lower tonnes milled of 65,000t. We continue to focus on executing a turnaround plan at Turmalina that will address operational challenges faced during the quarter," Jaguar said.

Jaguar's gold mines – Pilar, Turmalina, Paciência and Caeté – are all in Minas Gerais state.