Third 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.

# Third Quarter Report

Source: https://jaguarmining.com/files/2025/11/application/690c15d6af48b.pdf
Fetched: 2026-09-12T07:03:56.173+00:00
Source artifact: 3c944f19-7489-4e43-980f-35e81672c49a
Normalizer input: text

## Content

# Third Quarter Report
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED
SEPTEMBER 30, 2025
TABLE OF CONTENTS
BUSINESS & STRATEGIC PRIORITIES ............................................................................................................................ 4
EXECUTIVE SUMMARY – Q3 2025 Performance and Strategic Outlook ....................................................................... 4
THIRD QUARTER 2025 HIGHLIGHTS ............................................................................................................................... 6
FINANCIAL AND OPERATIONAL SUMMARY .............................................................................................................. 10
Q3 2025 FINANCIAL AND OPERATING SUMMARY .................................................................................................... 12
CONSOLIDATED FINANCIAL RESULTS ........................................................................................................................ 13
OPERATIONAL REVIEW.................................................................................................................................................... 17
REVIEW OF FINANCIAL CONDITION ............................................................................................................................ 21
CAPITAL STRUCTURE ....................................................................................................................................................... 23
OFF-BALANCE SHEET ITEMS .......................................................................................................................................... 23
RELATED PARTY TRANSACTIONS ................................................................................................................................ 23
DEVELOPMENT AND EXPLORATION PROJECTS ...................................................................................................... 23
MINERAL RESOURCES AND MINERAL RESERVES................................................................................................... 25
QUALIFIED PERSON ........................................................................................................................................................... 28
OUTSTANDING SHARE DATA .......................................................................................................................................... 28
NON-GAAP PERFORMANCE MEASURES ...................................................................................................................... 28
CRITICAL ACCOUNTING ESTIMATES AND ACCOUNTING POLICIES CHANGES ........................................... 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 September 30, 2025 Jaguar Mining Inc. 2
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER ENDED SEPTEMBER 30, 2025
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 nine months ended September 30, 2025, and the annual audited financial
statements and MD&A for the year ended December 31, 2024, 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 November 6, 2025.
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);
• Cash operating margin (per ounce sold);
• All-in sustaining margin (per ounce sold);
• Earnings before interest, taxes, depreciation, and amortization (“EBITDA”), Adjusted EBITDA and Adjusted EBITDA per
share;
• Free cash flow (per ounce sold);
• Working capital;
• Sustaining capital expenditures; and
• Non-sustaining capital expenditures.
• Adjusted net income and Adjusted earnings per share.
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 2025 January 1, 2025 – September 30, 2025 YTD 2024 January 1, 2024 – September 30, 2024
Q1 2025 January 1, 2025 – March 31, 2025 Q1 2024 January 1, 2024 – March 31, 2024
Q2 2025 April 1, 2025 – June 30, 2025 Q2 2024 April 1, 2024 – June 30, 2024
Q3 2025 July 1, 2025 – September 30, 2025 Q3 2024 July 1, 2024 – September 30, 2024
MD&A – Quarter Ended September 30, 2025 Jaguar Mining Inc. 3
BUSINESS & STRATEGIC PRIORITIES
Jaguar Mining Inc. (“Jaguar”, “Jaguar Mining” or the “Company”) is a 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
a tailings pile incident (the “Incident”) and, as previously reported on the Company's Q3 2025 operating results press release
issued on October 14, 2025, remained temporarily suspended throughout Q3 2025, 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 under technical and economical evaluation for re-starting production,
given the new gold price scenarios.
Jaguar’s Brazilian exploration projects and operating assets are held by Jaguar’s wholly owned subsidiary Mineração Serras dos
Oeste LTDA (“MSOL”), and its exploration projects and assets acquired from IAMGOLD are held by Jaguar’s wholly owned
subsidiary Mineração Onças de Pitangui Ltda. The Company’s latest NI- 43-101 technical report was filed on SEDAR+ on March
31, 2025.
EXECUTIVE SUMMARY – Q3 2025 Performance and Strategic Outlook
This executive summary provides a concise overview of Jaguar Mining Inc.'s performance for the three-months September 30,
2025, highlighting key financial and operational results, strategic priorities, and the primary opportunities and challenges
ahead.
1. Key Findings and Results (Q3 2025 vs. Q3 2024)
Financial Performance:
o Revenue: Decreased by 13% to $34.0 million (from $38.9 million), primarily due to a 38% reduction in gold ounces
sold (9,799 oz vs. 15,726 oz) resulting from the Turmalina suspension. This was partially offset by a significant 40%
increase in the average realized gold price to $3,465 per ounce.
o Net Income: Reported a net income of $13.0 million, compared to $2.3 million in Q3 2024. This result was mainly due
to an $8.0 million unrealized gain on fair market value adjustments for a short-term investment and a $3.1 million
reversal of a litigation provision. Net income also reflected $6.1 million income expenses related to the Incident at
Turmalina. Excluding these non-recurring item and tax implications of non- recurring items, Adjusted net income1 was
$7.8 million.
o Liquidity: Cash and cash equivalents totalled at $52.0 million (up from $46.4 million at Dec 31, 2024), and working
capital1 decreased to $11.5 million (from $13.7 million), reflecting changes in legal provision, including Satinoco fines
settlement and changes in ARO offset by the positive variance on short-term investment.
Operational Performance:
o Consolidated Gold Production: Totaled 10,002 ounces (down 41% compared to the 16,912 ounces produced in Q3
2024), entirely from the Pilar mine as Turmalina remained suspended.
o Pilar Mine: Delivered a robust performance, producing 10,002 ounces (down from 10,433 ounces in Q3 2024), with a
reduced head grade of 3.68 g/t (down 2%) and a recovery rate of 89% (unchanged from Q3 2024).
o Costs: Cash operating costs1 increased by 25% to $1,374 per ounce sold, and All−in Sustaining Costs 1 (AISC) rose by
$214 per ounce sold, both primarily due to lower sales volumes spreading fixed costs over fewer ounces.
1
This is a non-GAAP financial performance measure with no standard definition under IFRS. For more details, refer to the Non-GAAP
Performance Measures section of the MD&A.
MD&A – Quarter Ended September 30, 2025 Jaguar Mining Inc. 4
2. Opportunities and Challenges
Opportunities:
o Turmalina Restart: Successful recommissioning represents a major upside potential, returning a key production asset
to operations. A comprehensive multi-stage plan is actively being implemented, as informed in the News Releases
dated July 9, 2025 and October 15, 2025.
o Pilar Mine Stability: Pilar's consistent and improving performance provides a strong, stable operational base.
o Faina & Onças de Pitangui Projects: Faina production ramp-up will resume with the Turmalina restart. Faina testwork
indicates potential for improved metallurgical recovery. Onças de Pitangui Project environmental licencing is
progressing, with probable reserves of 284,000 ounces of gold.
o Strong Gold Prices: Favorable gold market prices continue to bolster revenue and partially offset production shortfalls.
o Santa Isabel mine: The Santa Isabel mine, which is part of the Paciência complex (“CPA”), has been in Care &
Maintenance since 2012, is currently under technical and economical evaluation for a potential re-start, supported by
the favorable gold price environment. Nevertheless, the commencement of trial mining at

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