Jaguar shares up 5.7% on Q2 cash flow news
 Jaguar Mining Inc. [JAG-TSX, JAGGF-TCQX] shares rallied Thursday after the company reported its financial results for the second quarter ended June 30, 2024, including free cash flow of US$15.2 million.
The shares jumped 5.7% or 18 cents to $3.33 and currently trade in a 52-week range of $3.94 and $1.12.
Jaguar’s gold operating assets include the MTL Complex (Turmalina mine and plant) and Caete Complex (Pilar mine, Roca Grande mine and Caete plant). The Roca Grande mine has been on care and maintenance since 2018. The company also owns the Paciencia Complex, which has been on care and maintenance since 2012.
The company also has various gold projects located close to its operating assets. These projects are expected to provide a long runway of low capital intensity, high return on invested capital growth for the company for many years to come.
All of these assets are located in the Iron Quadrangle, a prolific greenstone belt located near the city of Belo Horizonte in the state of Minas Gerais, Brazil. Belo Horizonte serves as the commercial centre for Brazil’s mining industry and has excellent infrastructure to support world-class mining operations.
Highlights from the company’s second quarter financial statements included gold production of 16,829 ounces, a slight increase from 16,750 ounces in the second quarter of 2023, reflecting a 21% increase in grade offset by a 16% reduction in ore tonnes processed.
Revenue for the quarter was US$44.8 million, a 35% increase from US$33.2 million in the second quarter of 2023, driven by higher ounces sold volume and higher realized gold prices year-over-year.
Net income for the quarter was US$13.5 million ($0.17 per share) compared to a loss of US$1.1 million ($0.02) in the second quarter of 2023.
Free cash flow for the quarter was US$15.2 million, which represents a significant increase compared to free cash flow of US$2.4 million in the second quarter of 2023. This is calculated as operating cash flow plus asset retirement obligation expenditures, less sustaining capital. Free cash flow per ounce sold for the quarter was US$801 per ounce of gold sold, compared to US$141 per ounce in the equivalent quarter last year.
As of June 30, 2024, the company has cash and cash equivalents of US$37.4 million, compared to US$22 million at the close of 2023.
“I am very pleased with the performance of our operations this quarter,’’ said Jaguar President and CEO Vern Baker. “At both our mines, we are focusing on the development of new mining areas [BA-Torres at Pilar and Faina at Turmalina] while producing profitable ounces,’’ he said.
“At Pilar, production returned to 10,000 ounces for the quarter. At Turmalina, the team is adapting their focus to utilize higher grades in older orebodies while developing new orebodies in the Faina zone. Both mines realized an increase in grade.’’