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Jaguar Mining says its gold production, net income down in 2021 due to COVID-19 impact

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(Kitco News) -Jaguar Mining (TSX: JAG) announced today that its consolidated gold production in 2021 decreased by 8% to 83,878 ounces compared to 91,118 ounces in 2020, due to COVID-19 impact in the first quarter of 2021.

The company said that its gross profit decreased 30% to $60 million in 2021 compared to $85.7 million in 2020, primarily due to inflation impact on the company's costs in 2021, increased secondary metres, as well as an increase of $6 million in depreciation expenses in 2021.

Cash operating cost increased 28% to $831 per ounce of gold sold for 2021, compared to $647 during 2020, mainly due to an 8% reduction in ounces of gold sold from 91,853 in 2020 to 84,638 in 2021, combined with inflation and increased on secondary development metres compared to 2020.

The company added that its net income of $34.2 million in 2021 was 53% lower compared to net income of $72.3 million in 2020.

Jaguar also announced that its Board has declared Q4 2021 cash dividend of C$0.04 per common share of the company, to be paid on March 25, 2022, to shareholders of record as of the close of business on March 31, 2022.


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President and CEO Vern Baker said, "The impact of the pandemic on our operations was significant during the first half of 2021 but became minimal by Q4 2021. In January and February of 2022, our operations were impacted by both the Omicron variant and torrential rains and flooding that hit Minas Gerais. We have rescheduled our production plans to make up the shortfall throughout the year."

Importantly, the company noted that it still expects to be within its 2022 production guidance of 86,000 to 94,000 ounces of gold.

Jaguar Mining is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes and a large land package with significant upside exploration potential from mineral claims.

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