Jaguar Mining's Unexplored Territory

With Jaguar Mining Inc. (JAG) recently completing an offering of C$150 million worth of notes, the company appears to be now turning its attention to a new, unexplored and undeveloped gold property.

Richard Gray, analyst with Blackmont, notes Jaguar is in exclusive negotiations for a property that has not yet commercially produced gold.

"The company indicated this property would have a purchase price of $39-million to $43-million, payable in Jaguar shares," he said in a note Friday.

The rest of the cash will be used to repurchase $86.3-million worth of 10.5% secured notes due in 2012. The new notes, due 2014, will provide a better interest rate and match-up to cash flows over the next five years, "given the company's dramatic growth profile," he said.

Production growth at the company is expected to jump to more than 400,000 ounces in 2012, from 115,000 ounces in 2008.

And by 2014, Blackmont expects Jaguar to be producing 640,000 ounces of gold a year.

Jaguar gets an Outperform rating with above average risk and a target price of $14.

Comments

[Mad Hedge F...:]

ydy. Just as it is prudent to top up your flood insurance ahead of the hurricane season, investors are loading up on gold ahead of the treacherous September-October stock trading period. Yesterday’s $22move up shows that attempt number six to run the yellow metal up to anew high has begun. Silver happily tagged along for the ride, tacking on 70 cents to $15.49. Historically, September is the best month of the year to own the barbaric relic, showing an average 3.5% gain over the last 20 years. The onset of the Indian wedding season, Ramadan, and the run up to the Christmas and the Chinese New Year jewelry buying binge are all conspiring to give gold a boost. A tip off this was coming wasthe big put selling seen for the shares of the gold ETF (GLD), and Kinross (KGC). One good way to play gold at this late stage might be the shares of highly leveraged unhedged producers like Rangold Resources (GOLD), Jaguar Mining (JAG), and royal Gold (RGLD).Confirmation that the markets are moving towards risk aversion can be found in the euroyen chart, which hit a one month low at 131, after double topping at 140.50. If gold does break, it could tack on 20% very quickly to $1,200. Load up on those American gold eagles. If you wantto know where to find them in size, check with the experts at millenniummetals.net by clicking here.

Sep 11 01:37 PM

[SeeTheLight:]

Happily I own the 2012 notes, which got a lovely pop off the news. If Jaguar hits that target of 14 then the new convertibles will be a very nice return as well, although I will miss the 10.5% on the current notes when compared to the 4.5% on the 2014. It isn't clear how they plan to do the buyback of the 2012s, open market, direct buyback with a premium or early redemption on 03/22/10. Still might be an opportunity to buy more if you plan to park your cash for a few months and wait out this market.

Good Luck all

Sep 11 03:56 PM

[Mayascribe:]

Slvizgold: I stopped following Mad Hedge yesterday. Got fatigued of seeing his pleonastic BS spewed in a single chunk of hard-to-read paragraph format. Obviously, he's a self-centered egomaniac who loves seeing his name in the lights as he routinely dominates the comments stream everyday around close.

Yeah, admittedly, he's knowledgable about a lot of sectors. But he's no longer welcome in my investing living room.

Just stop following him.

####

On a brighter note, Jaguar Mining is a tip top outfit, on the cusp of exploding revenues. I've been following (JAG) for a year and a half, and they've been spot on with their corporate mission. With the increasing value of gold bullion, this stock's a $30 stock in the making, maybe higher. I average between 150 to 200 trades per month. Yet, I have not sold a single share of JAG since I started re-accumulating shares early last December. Bought a bit more yesterday and today on the pullback. Jaguar Mining is the best performing stock in my e-trading account. Tech Cominco (TCK) is the best performer in my brokerage account, mining stock-wise.

Trading Desk: You nailed Jag. I suggest taking a peek at ATP Oil and Gas (ATPG).

Sep 11 04:06 PM

[West Coast ...:]

To Slvrizgold: Don't worry (?) about a potential acquisition of JAG by AUY. Yamana buys ONLY WORTHLESS TRASH (Northern Orion and their Agua "Rica" deposit) AT GROSSLY INFLATED VALUES (at or near market peaks). As a long-punished shareholder I can attest to that. Sometimes I just want to yell their stock market symbol: auy!

Jaguar is a different cat indeed - a great growth stock with costs under control and WAY TO RUN. Fortunately I loaded up on them only a month ago and the reward is already bigger (at >30%) than Yamana has provided culmulatively over three years! Buyers beware (of AUY) - stick with the cat (JAG) :-)

Sep 11 04:07 PM

[Mayascribe:]

Here, here, West Coast!

Sep 11 04:12 PM

[Slvrizgold:]

Someone deleted my criticism of Max Hedge's repetitive spam postings. I guess he has some pull on Seeking Alpha.

Sep 12 12:20 AM

[Barry Robbins:]

The problem with shorting is that stocks could lose "real" value, but because of currency inflation stocks still go up. If you look at the Dow since 2001, it has always been going down, when priced in terms of gold (which, along with silver, is our only real money).

Sep 12 01:33 PM

[Mayascribe:]

A quick expansion to this article taken right from Jaguar's annual reports is that they have expanded production from 70,000 ounces of gold in 2007, to 115,000 ounces in 2008, and expects to be producing 700,000 ounces in 2014. A ten fold increase in seven years.

Sep 13 08:13 PM

[doubleguns:]

This seems to be an ongoing problem at SA. 1st amendment is going out the window since SA appointed a blogging czar. We just don't know his name yet.


On Sep 12 12:20 AM Slvrizgold wrote:

> Someone deleted my criticism of Max Hedge's repetitive spam postings.
> I guess he has some pull on Seeking Alpha.

Sep 14 08:56 AM

[I Kings 3:5-14:]

Was wondering what was happening to the price of JAG sent the completion of the notes. Is it that the notes are diluting the share price? JAG's price was pulling back hard when CDE and most of the others miners were soaring along with gold and silver climbing. Could some one enlighten a rookie on what is going on and when they think the turn around is coming?

Sep 14 09:59 AM

[Tenashus1:]

I have the very same question. Must be due to concern about dilution of shares.


On Sep 14 09:59 AM I Kings 3:5-14 wrote:

> Was wondering what was happening to the price of JAG sent the completion
> of the notes. Is it that the notes are diluting the share price?
> JAG's price was pulling back hard when CDE and most of the others
> miners were soaring along with gold and silver climbing. Could some
> one enlighten a rookie on what is going on and when they think the
> turn around is coming?

Sep 14 06:28 PM

[Mayascribe:]

I-Kings: Check out Jaguar MIning's new presentation released today (Sept. 15). The best e-presentation I've ever read from any miner, period. The presentation should answer any questions you may have.

jaguarmining.com

Sep 15 10:13 PM

[Mark Bern:]

Maya - You're getting my interest peeked on this one! I do need a little more of an inflation hedge in my portfolio and I wouldn't mined (I couldn't help it) one with some strong potential upside even if gold goes nowhere.


On Sep 13 08:13 PM Mayascribe wrote:

> A quick expansion to this article taken right from Jaguar's annual
> reports is that they have expanded production from 70,000 ounces
> of gold in 2007, to 115,000 ounces in 2008, and expects to be producing
> 700,000 ounces in 2014. A ten fold increase in seven years.

Sep 15 10:32 PM

[I Kings 3:5-14:]

Mayascribe, Thanks for alerting me to the primary source information from JAG. It was very helpful and as you said it was very well done.


On Sep 15 10:13 PM Mayascribe wrote:

> I-Kings: Check out Jaguar MIning's new presentation released today
> (Sept. 15). The best e-presentation I've ever read from any miner,
> period. The presentation should answer any questions you may have.
>
>
> jaguarmining.com

Sep 19 03:20 AM