Call 800 665 0411 to learn about our services

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Junior Gold Producer Performs As Expected In Q1/23

Source: Stuart McDougall

May 16, 2023 ( Newswire) This Canadian company operating in Brazil offers investors attractive return potential and is a Buy, noted a Research Capital Corp. report.

Jaguar Mining Inc. (JAG:TSX) posted a Q1/23 that met expectations, reported Research Capital Corp. analyst Stuart McDougall in a May 11 research note.

"We have updated our model for the results and continue to recommend purchase as a Buy," McDougall wrote.

122% Possible Return

The analyst pointed out that this Canadian gold miner offers investors significant potential return, of 122%. This is reflected in the difference between Jaguar's current share price, CA$2.37, and Research Capital's target price on it, CA$5.25 per share.

Highlights of Results

McDougall summarized Jaguar Mining's Q1/23 results.

During the quarter, this company with two underground mines in Brazil's Iron Quadrangle sold 19,008 ounces of gold.

Unadjusted earnings per share (EPS) came in at US$0.03, Research Capital's exact forecast.

Cash flow per share (CFPS), however, was lower than expected, due primarily, McDougall noted, to higher cash taxes. CFPS was US$0.14; Research Capital estimated it would be US$0.16.

No Cost Surprises

As for costs, average total cash costs were on par, at US$1,084 per ounce (US$1,084/oz). This compared to Research Capital's projection of US$1,086/oz.

Jaguar Mining's Q1/23 all-in sustaining cost (AISC) came to US$1,575/oz, slightly above Research Capital's US$1,541/oz expectation.

"Stock-based compensation essentially account[ed] for the difference," McDougall explained.

Reported sustaining capex was US$7.2 million (US$7.2M), generally in line with Research Capital's US$6.9M estimate.

Balance Sheet Status

At Q1/23's end, Jaguar Mining had US$25.8M of cash, US$20.8M of working capital and US$7.1M of debt.

"We still do not foresee any requirements for external financing, barring any unforeseeable development," McDougall wrote.

For the Full Year

Jaguar Mining reiterated its guidance for full-year 2023 (FY23), noted McDougall. It expects to produce a total of 84,000–88,000 ounces of gold at an AISC of US$1,275–1,375/oz.

Compared to guidance, Research Capital estimates Jaguar's production for FY23 will wind up being in the lower end and AISC will be higher than the provided range, more like around US$1,415/oz.

"We expect the next three quarters to each to contribute about 22,000 oz at a consolidated total cash cost of about US$970/oz and an AISC of about US$1,365/oz," McDougall wrote.

Research Capital maintained its FY23 EPS and CFPS estimates for Jaguar (based on a flat gold price of US$1,850/oz) of US$0.24 and US$0.78, respectively.

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy:

Gold Mining Stocks - Gold Mining Stocks Directory, Gold Stocks News, Research and Resources - investing ideas in gold and mining stocks

Like Gold Stocks? View our Gold / Mining Stocks Directory

Get News on Mining Stocks