Second Quarter Report

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Second Quarter Report

Source: https://jaguarmining.com/files/2026/08/application/6a7f281b2af4a.pdf
Fetched: 2026-09-12T07:03:39.906+00:00
Source artifact: a3a89441-93f4-456b-9f7b-3a12afd6557d
Normalizer input: text

## Content

# Second Quarter Report
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED
JUNE 30, 2026
TABLE OF CONTENTS
BUSINESS & STRATEGIC PRIORITIES ............................................................................................................................ 4
EXECUTIVE SUMMARY – Q2 2026 Performance and Strategic Outlook ....................................................................... 5
SECOND QUARTER 2026 HIGHLIGHTS ........................................................................................................................... 7
FINANCIAL AND OPERATIONAL SUMMARY ................................................................................................................ 8
Q2 2026 FINANCIAL AND OPERATING SUMMARY .................................................................................................... 10
CONSOLIDATED FINANCIAL RESULTS ........................................................................................................................ 11
OPERATIONAL REVIEW.................................................................................................................................................... 14
REVIEW OF FINANCIAL CONDITION ............................................................................................................................ 19
CAPITAL STRUCTURE ....................................................................................................................................................... 21
OFF-BALANCE SHEET ITEMS .......................................................................................................................................... 21
RELATED PARTY TRANSACTIONS ................................................................................................................................ 21
DEVELOPMENT AND EXPLORATION PROJECTS ...................................................................................................... 21
QUALIFIED PERSON ........................................................................................................................................................... 28
OUTSTANDING SHARE DATA .......................................................................................................................................... 28
NON-GAAP PERFORMANCE MEASURES ...................................................................................................................... 28
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS ................................................................................ 32
OTHER MANAGEMENT DISCUSSION AND ANALYSIS DISCLOSURES ................................................................ 32
INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES
................................................................................................................................................................................................ 33
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS........................................................... 34
MD&A – Quarter Ended June 30, 2026 Jaguar Mining Inc. 2
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED JUNE 30, 2026
This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the unaudited condensed interim
consolidated financial statements for the three and six-months ended June 30, 2026, and the annual audited 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 Accounting Standards”) 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 August 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;
• 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
YTD 2026 January 1, 2026 – June 30, 2026 YTD 2025 January 1, 2025 – June 30, 2025
Q2 2026 April 1, 2026 – June 30, 2026 Q2 2025 April 1, 2025 – June 30, 2025
MD&A – Quarter Ended June 30, 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. They include the Mineração Turmalina Ltda. ("MTL") complex (Turmalina mine, plant and Onças de Pitangui mine
(greenfield)), 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 end of 2026/early 2027.
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 Sabará Extension
Roça Grande (b) Lavra Velha
Zé Firme
Paciência Santa Isabel (c) Paciência Chamé
Complex Santa Isabel (Underground)
Marzagão
Marzagão (Underground)
Bahú
Rio de Peixe
BIF North
Quati
Notes:
(a) Restart March 9, 2026.
(b) Currently on care and maintenance.
(c) Potential reopening in 2026.
MD&A – Quarter Ended June 30, 2026 Jaguar Mining Inc. 4
EXECUTIVE SUMMARY – Q2 2026 Performance and Strategic Outlook
This executive summary provides a concise overview of Jaguar Mining Inc.'s performance for the three and six-months ended
June 30, 2026, highlighting key financial and operational results, strategic priorities, and the primary opportunities and challenges
ahead.
1. Key Findings and Results (Q2 2026 vs. Q2 2025)
Financial Performance:
o Revenue: Increased by 43% to $51.4 million, compared to $35.8 million in the prior-year period, primarily driven by a
35% increase in the average realized gold price¹ to $4,391 per ounce. Gold ounces sold totalled 11,694 oz, a 6% increase
from 10,986 oz in the prior-year period, reflecting the contribution from the resumption of operations at the MTL
Complex.
o Net income: Reported a net income of $15.5 million, compared to net loss of $6.6 million in Q2 2025. The improvement
was primarily driven by stronger realized gold prices and the resumption of operations at the Turmalina Mine (MTL),
which contributed to higher production and sales volumes. In addition, Q2 2025 results were significantly impacted by
$23.5 million of expenses related to the Satinoco event, whereas no comparable expense was recorded in Q2 2026
following the restart of operations.
o Liquidity: Cash and cash equivalents totalled $74.0 million, compared to $66.5 million as at December 31, 2025,
reflecting stronger cash generation supported by higher realized gold prices and increased gold ounces sold following
the resumption of operations at the MTL Complex. Working capital¹ was $23.2 million, up from $21.8 million at year-
end, as higher cash, inventory and recoverable taxes were largely offset by an increase in accounts payable and accrued
liabilities.
Operational Performance:
o Consolidated Gold Production: Totaled 13,057 ounces, a 19% increase over the 10,973 ounces produced in Q2 2025.
Pilar contributed 9,063 ounces and Turmalina contributed 3,994 ounces, compared to Q2 2025 production derived
almost entirely from Pilar (10,731 ounces), with the Q2 2025 balance from a metallurgical test of the Faina orebody. The
increase was driven primarily by the successful ramp-up of Turmalina following its restart, which contributed
approximately 31% of consolidated production — re-establishing the mine as a consistent production source for the
Company.
o Pilar Mine: Gold production totalled 9,063 ounces in Q2 2026, compared to 10,731 ounces in the same period of 2025.
The decrease was primarily driven by a lower average head grade of 3.30 g/t Au (4.04 g/t Au in Q2 2025), despite the
higher throughput of 96,020 tonnes processed with increased contributions from development ore and lower stoping
volumes, partially offset by a stable recovery rate of 89%. During the quarter, the mine advanced initiatives to improve
mining flexibility, including additional mining faces and ventilation upgrades, supporting access to new production areas
and operational reliability in the second half of the year.
o Turmalina Mine: Gold production totalled 3,994 ounces during the second quarter of 2026 from 50,190 tonnes
processed, at an average head grade of 2.94 g/t Au and a recovery rate of 84%, as mining and processing activities
continued to ramp up successfully following the restart of operations in early March 2026. Turmalina contributed
approximately 31% of consolidated gold production for the quarter.
o Costs: Cash operating costs¹ increased by 54% to $1,834 per ounce sold, compared

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]