Jaguar Lowers 2008 Production Guidance

Jaguar Mining Inc. (JAG) revised downward expected production at the Paciência mine in Brazii due to a four-week start-up delay to repair a tailings liner that was improperly installed. Jaguar said it now expects production of 25,000 to 30,000 ounces at Paciência down from previous guidance of 49,000 ounces.

Shares in Jaguar were down almost 6% in early Friday morning trading. 

Jaguar's overall production guidance for 2008 was also lowered from 160,000 ounces to 118,000 - 130,000 ounces. Cash costs for the year are expected to average C$435 to C$450 per ounce, up from the company's prior estimate of C$353 to C$359 per ounce.

Blackmont analyst Richard Gray lowered his price target from C$18.25 to C$17 on the lower production guidance, but maintained his "buy" rating. 

He added:

On a brighter note, the feasibility study at the Caeté expansion was approved and construction of this ultimate 140,000 oz/yr operation, which will be Jaguar's third start-up in three years once it is operational in 2009, has commenced.

Comments

[bulletbob:]

How can this company be targeted a higher share price than KGC<AUY<IAG at only 120k/yr production. Yes they have only 65mil shares but come on. Even much maligned NXG is going to do 400k/yr and they are at $2.12/sh, although with 255 mil shares. Or how about AZK with 175k/yr and only at $4.55/sh. I surely don't understand all the various prices on these gold/silver stocks. They don't have any ryhme or reason to me and I have been at this for over seven years now. Made some $ but very, very confusing.

2008 Aug 03 09:58 AM