Jaguar Mining says disappointed with rising costs, net income slides in third quarter
(Kitco News) - Jaguar Mining (TSX: JAG) today announced that its revenue for Q3 2021 decreased 6% to $40.7 million, compared with $43.5 million in Q3 2020, mainly due to a reduction in the average realized gold price of $1,753/oz in Q3 2021 as compared to $1,896/oz for Q3 2020.
The company's operating production costs were $19.4 million in Q3 2021 as compared to $14.1M in Q3 2020. The increase in operating cost is primarily due to local inflationary pressure on wages, mining materials and plant consumables, higher tonnes processed and higher secondary development, the company said.
Cash operating costs increased 36% to $833 per ounce of gold sold as a result of reduced ounces sold and increased production costs, while all-in sustaining costs increased to $1,184 per ounce of gold sold for Q3 2021, compared to $614 and $1,011 respectively per ounce of gold sold for the same period in 2020, the company added.
Net income for Q3 2021 decreased to $11.4 million, compared with $16.5 million in Q3 2020. Major differences were a $2.7 million decline in revenue, $5.3 million increase in operating cost due to production costs increasing, and a $1.9 million increase in depreciation, the company explained.
The company also announced that its Board of Directors has declared a cash dividend of C$0.04 per common share of the company, to be paid on November 30, 2021, to shareholders of record as of the close of business on November 23, 2021.
Vern Baker, President and CEO of Jaguar Mining stated, "The disappointing aspect of our quarter was the increase in operating expenses. The main contributing factors to our cost increase were inflation across all components of operating expenditures, an increase of 15% in tonnes mined and milled, and the additional measures for health monitoring, hygiene and distancing made during the pandemic."
"Inflation is clearly something we will be dealing with for the remainder of this year and into next year. Now that we believe the bulk of the pandemic issues are behind us, Jaguar is working on several initiatives to reduce costs to begin countering inflation and we are looking to begin removing the additional measures taken to combat the pandemic," he added.
Jaguar Mining is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes and a large land package with significant upside exploration potential from mineral claims.
By Vladimir BasovFor Kitco News
Follow kitconewsnow
vbasov@kitco.comwww.kitco.com