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# MDA

Source: https://jaguarmining.com/files/2026/04/application/69cd43b508a9c.pdf
Fetched: 2026-09-12T07:03:53.808+00:00
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# MDA
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
KPMG LLP
Bay Adelaide Centre
333 Bay Street, Suite 4600
Toronto, ON M5H 2S5
Canada
Tel 416 777 8500
Fax 416 777 8818
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of Jaguar Mining Inc.
Opinion
We have audited the consolidated financial statements of Jaguar Mining Inc. (the Entity), which
comprise:
• the consolidated statements of financial position as at December 31, 2025 and December 31,
2024
• the consolidated statements of operations and comprehensive (loss) for the years then ended
• the consolidated statements of cash flows for the years then ended
• the consolidated statements of changes in shareholders' equity for the years then ended
• and notes to the consolidated financial statements, including a summary of material accounting
policy information
(Hereinafter referred to as the “financial statements”).
In our opinion, the accompanying financial statements present fairly, in all material respects, the
consolidated financial position of the Entity as at December 31, 2025 and December 31, 2024, and
its consolidated financial performance and its consolidated cash flows for the years then ended in
accordance with IFRS Accounting Standards as issued by the International Accounting Standards
Board.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the “Auditor’s Responsibilities for
the Audit of the Financial Statements” section of our auditor’s report.
We are independent of the Entity in accordance with the ethical requirements that are relevant to our
audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG global organization of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. KPMG Canada provides services to KPMG LLP.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements for the year ended December 31, 2025. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matter described below to be the key audit matter to be communicated in
our auditor’s report.
Assessment of reclamation provisions
Description of the matter
We draw attention to Notes 3(c)(xi), 3(d)(iii) and 14 to the financial statements. The Entity has
recorded reclamation provisions of $65,731 thousand for obligations for environmental
rehabilitation or reclamation resulting from mining, extraction and processing activities. The
provisions are determined using expectations of future activities and the amount and timing of
associated cash flows discounted to their present value using a pre-tax discount rate.
Why the matter is a key audit matter
We identified the assessment of reclamation provisions as a key audit matter. This matter
represented an area of significant risk of material misstatement requiring specialized skills and
knowledge to evaluate the Entity’s selection of the future activities and the amount and timing of
associated cash flows, and the pre-tax discount rate used to determine the present value of the
reclamation provisions.
How the matter was addressed in the audit
The following are the primary procedures we performed to address this key audit matter.
We assessed the professional competence, experience and objectivity of the Entity’s experts who
produced the mine closure plans and estimated the amount of expected cash flows
We compared certain expected future activities included in the Entity’s estimate of the reclamation
provisions to the most recent mine closure study filed with the environmental authorities and
compared subsequent changes to local laws and regulations.
Due to the specialized skills and knowledge used by the Entity to select the future activities and the
amount and timing of associated cash flows, we involved asset management professionals with
specialized skills and knowledge, who assisted in evaluating a selection of cash flows by
comparing to recent third-party quotes and relevant supporting evidence.
We involved valuation professionals with specialized skills and knowledge, who assisted in
evaluating the Entity’s pre-tax discount rate by comparing them to third party sources.
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Other Information
Management is responsible for the other information. Other information comprises:
• the information included in Management’s Discussion and Analysis.
Our opinion on the financial statements does not cover the other information and we do not and will
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit and remain alert for
indications that the other information appears to be materially misstated.
We obtained the information included in Management’s Discussion and Analysis as at the date of
this auditor’s report. If, based on the work we have performed on this other information, we conclude
that there is a material misstatement of this other information, we are required to report that fact in
the auditor’s report.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with IFRS Accounting Standards as issued by the International Accounting Standards
Board, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the Entity's ability to
continue as a going concern, disclosing as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Entity or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity's financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with Canadian generally accepted auditing standards will always detect a material
misstatement when it exists.
3
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of the financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Entity's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Entity
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
• Provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
4
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the group as a basis for forming an
opinion on the group financial statements. We are responsible for the direction, supervision and
review of the audit work performed for the purposes of the group audit. We remain solely
responsible for our audit opinion.
• Determine, from the matters communicated with those charged with governance, those matters
that were of most significance in the audit of the financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our auditor’s report
because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Chartered Professional Accountants, Licensed Public Accountants
The engagement partner on the audit resulting in this auditor’s report is Todd Millar Buchanan.
Toronto, Canada
March 31, 2026
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands of US dollars)
December 31, December 31,
2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 66,526 $ 46,357
Short-term investments Note 5 9,883 1,438
Restricted cash Note 4 812 923
Inventory Note 6 16,011 15,343
Recoverable taxes Note 7 2,235 3,933
Other accounts receivable 834 328
Prepaid expenses and adva

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