First Quarter Report

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# First Quarter Report

Source: https://jaguarmining.com/files/2026/05/application/6a05e56793c1e.pdf
Fetched: 2026-09-12T07:03:43.182+00:00
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## Content

# First Quarter Report
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED
MARCH 31, 2026
TABLE OF CONTENTS
BUSINESS & STRATEGIC PRIORITIES ............................................................................................................................ 4
EXECUTIVE SUMMARY – Q1 2026 Performance and Strategic Outlook ....................................................................... 5
FIRST QUARTER 2026 HIGHLIGHTS ................................................................................................................................ 7
FINANCIAL AND OPERATIONAL SUMMARY ................................................................................................................ 9
Q1 2026 FINANCIAL AND OPERATING SUMMARY .................................................................................................... 11
CONSOLIDATED FINANCIAL RESULTS ........................................................................................................................ 12
OPERATIONAL REVIEW.................................................................................................................................................... 15
REVIEW OF FINANCIAL CONDITION ............................................................................................................................ 20
CAPITAL STRUCTURE ....................................................................................................................................................... 21
OFF-BALANCE SHEET ITEMS .......................................................................................................................................... 21
RELATED PARTY TRANSACTIONS ................................................................................................................................ 21
DEVELOPMENT AND EXPLORATION PROJECTS ...................................................................................................... 22
QUALIFIED PERSON ........................................................................................................................................................... 25
OUTSTANDING SHARE DATA .......................................................................................................................................... 25
NON-GAAP PERFORMANCE MEASURES ...................................................................................................................... 25
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS ................................................................................ 29
OTHER MANAGEMENT DISCUSSION AND ANALYSIS DISCLOSURES ................................................................ 29
INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES
................................................................................................................................................................................................ 30
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS........................................................... 31
MD&A – Quarter Ended March 31, 2026 Jaguar Mining Inc. 2
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED MARCH 31, 2026
This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the unaudited condensed interim
consolidated financial statements as at an for the three months ended March 31, 2026, and the annual audited consolidated
financial statements and MD&A for the year ended December 31, 2025, and related notes thereto which have been prepared
in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (IASB). For further information on Jaguar Mining Inc., reference should be made to its public filings (including its most
recently filed annual information form (“AIF”) which is available on SEDAR+ at www.sedarplus.ca). Information on risks
associated with investing in the Company’s securities and technical and scientific information under National Instrument 43-
101 concerning the Company’s material properties, including information about mineral resources and reserves, are contained
in the Company’s most recently filed AIF and technical reports.
All amounts included in this MD&A are in United States dollars (“$”), unless otherwise specified. The use of C$ refers to Canadian
dollars and the use of R$ refers to Brazilian Reais. This report is dated as of May 13, 2026.
The Company included certain non-GAAP financial measures, which the Company believes that, together with measures
determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the
Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may
not be comparable to similar measures employed by other companies. The data is intended to provide additional information
and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The
non-GAAP financial measures in this MD&A include:
• Net cash and cash equivalents;
• Cash operating costs (per ounce sold);
• Cash operating costs (per tonne of ore processed);
• All-in sustaining costs (per ounce sold);
• All-in costs (per ounce sold);
• Average realized gold price (per ounce sold);
• Average market gold price (per ounce sold);
• Cash operating margin (per ounce sold);
• Adjusted net income;
• Adjusted net loss;
• Adjusted earnings per share;
• All-in sustaining margin (per ounce sold);
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”), and Adjusted EBITDA; and Adjusted EBITDA per
share;
• Free cash flow (per ounce sold);
• Working capital;
• Sustaining capital expenditures; and
• Non-sustaining capital expenditures.
Definitions and reconciliations associated with the above metrics can be found in the Non-GAAP Performance Measures section
of this MD&A.
Where we say “we,” “us,” “our,” the “Company” or “Jaguar,” we mean Jaguar Mining Inc. or Jaguar Mining Inc. and/or one or
more or all of its subsidiaries, as it may apply. The following abbreviations are used to describe the periods under review
throughout this MD&A:
Abbreviation Period Abbreviation Period
Q1 2026 January 1, 2026 – March 31, 2026 Q1 2025 January 1, 2025 – March 31, 2025
MD&A – Quarter Ended March 31, 2026 Jaguar Mining Inc. 3
BUSINESS & STRATEGIC PRIORITIES
Jaguar Mining Inc. (“Jaguar” or the “Company”) is a Toronto Stock Exchange (the “TSX”) listed junior gold mining, development
and exploration company operating in Brazil with three gold mining complexes and a large land package with significant
prospectivity.
The Company’s principal operating assets are in the iron quadrangle, a prolific greenstone belt in the Brazilian state of Minas
Gerais and include the MTL complex (Turmalina mine and plant), which operations were suspended in December 2024 due to
the Satinoco tailings pile incident (the “Incident”) and restarted in March 2026, and Caeté complex (Pilar mine, Roça Grande
mine and Caeté plant). The Company also owns the Paciência complex (Santa Isabel mine and plant), which has been on care
and maintenance since 2012, and is currently undergoing preparatory activities for restarting production toward the latter half
of 2026.
To best understand the following narrative for Jaguar Mining, its projects, and its properties, it is necessary to understand the
locations and groupings of the Company’s assets. The following table serves to clarify this for readers:
Name Mines Zones Plants Development Exploration Properties
/Deposits Properties
MTL Complex Turmalina (a) Faina Turmalina Onças de Pitangui Pontal
Orebody A Aparição
Orebody B
Orebody C
Caeté Complex Pilar BA Zone Caeté Morro da Mina
LPA Zone Boa Vista
BF Zone Juca Vieira
SW Zone Sabara Extension
Roça Grande (b) Lavra Velha
Zé Firme
Paciência Santa Isabel (c) Paciência Chamé
Complex Santa Isabel (UG)
Mazargão (UG)
Bahu
BIF North
Quati
Notes:
(a) Restart March 9, 2026.
(b) Currently on care and maintenance.
(c) Potential reopening in 2026.
MD&A – Quarter Ended March 31, 2026 Jaguar Mining Inc. 4
EXECUTIVE SUMMARY – Q1 2026 Performance and Strategic Outlook
This executive summary provides a concise overview of Jaguar Mining Inc.'s performance for the three-months ended March 31,
2026, highlighting key financial and operational results, strategic priorities, and the primary opportunities and challenges ahead.
1. Key Findings and Results (Q1 2026 vs. Q1 2025)
Financial Performance:
o Revenue: Increase by 63% to $44.6 million, compared to $27.3 million in the prior period, primarily driven by 71%
increase in average realized gold price1 to $4,875 per ounce. Gold ounces sold were substantially in line with the prior
period (9,147 Q1 2026 oz vs. 9,544 oz in Q1 2025).
o Net income: Reported a net income of $4.7 million, compared to net loss of $1.6 million in Q1 2025. The improvement
was primarily driven by steady gold ounces sold combined with higher realized gold price during the quarter. Net income
was partially offset by foreign exchanges losses of $5.8 million and $5.9 million expenses related to the Incident at
Turmalina which led to its operational suspension.
o Liquidity: Cash and cash equivalents totaled $71.2 million, compared to $66.5 million at December 31, 2025, while
working capital¹ decreased to $22.7 million from $25.0 million, primarily reflecting timing of current liabilities and
working capital movements.
Operational Performance:
o Consolidated Gold Production: Totaled 9,630 ounces, including 8,776 ounces from the Pilar mine and 854 ounces from
the MTL complex. This compares with 9,923 ounces produced in Q1 2025, which reflected production solely from the
Pilar mine.
o Pilar Mine: Gold production totaled 8,776 ounces during the first quarter of 2026, compared to 9,923 ounces in the
same period of 2025. The decrease was primarily driven by a lower head grade, which averaged 3.87 g/t, while the plant
recovery of 89% remained in line with Q1 2025 performance.
o MTL Complex: The Turmalina Mine produced 854 ounces in Q1 2026, with operations running consistently following
the resumption of operations on March 9, 2026; 12,562 tonnes were milled at an average grade of 3.36 g/t Au and 62%
metallurgical recovery, including ore from Faina mined in 2026 and oxidized ore stockpiled prior to the suspension of
MTL operations.
o Costs: Cash operating costs1 increased by 42% to $1,565 per ounce sold, while all−in sustaining costs 1 (AISC) increased
by $691 to $2,412 per ounce sold. The increase in costs was driven by foreign exchange impacts as the Brazilian Real
strengthened against U.S. Dollars, as well as higher costs reflecting global price inflation driven by geopolitical conflicts.
2. Opportunities and Challenges
Opportunities:
o Turmalina Mine & Plant Restart: The recommissioning of Turmalina represents a potential upside through the planned
return of a key production asset, with the mine, processing plant, paste fill plant, and filtration unit restarted in Q1 2026,
and tailings currently placed as underground backfill to support resumption of underground mining activities.
o Faina orebody: Mining activities at the Faina (at the Turmalina Mine) orebody commenced a phased ramp-up
concurrently with the restart of Turmalina orebodies. Ongoing metallurgical test work and initial plant performance
results from Faina indicate the potential for improved metallurgical recoveries relative to prior test work; however,
these results are preliminary and remain subject to further validation as operations continue to stabilize.
o Onças de Pitangui Project: Env

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