10.15
Jaguar Mining Inc. (JAG) – $10.32 – Q3/09 Operating Results – In Line
Outperform, Above Average Risk, Price Target: $15.00
Jaguar released production and cost data for Q3/09, with gold output of 42Koz was roughly in line with RBC CM’ estimate, with the Turmalina and Paciencia mines both exceeding its estimates, offset by a weak result from the small Sabara heap-leach mine, which was idled for the second time this year in August and September. Cash costs of $451/oz were moderately higher than RBC CM’ $420/oz estimate, mainly due to weak results at Sabara, and a stronger than expected Brazilian Real (1.87:1US$ in Q3/09). RBC CM is looking for operating EPS of $0.09/sh when the company reports Q3 financial results on Nov 9th. The company maintained its full-year production forecast for 2009 of 165K to 170Koz of gold, but increased cash cost guidance range from $391-$429/oz to $444-$452/oz. At quarter-end, Jaguar had $233 million in cash, more than sufficient to meet current capital needs and plans to retire the existing series of 10.5% convertible notes. The Caete project remains on schedule for a March/April 2010 start up.
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