Jaguar Mining (JAG) - 100,000oz Pa Gold Turnaround Story?
Summary
- TSX: JAG.
- Shares Outstanding: 72.35M.
- Share price: C$7.99 (5.11.20).
- Market Cap: C$575M.
Jaguar Mining is a Gold production company operating in the Iron Quadrangle, a prolific greenstone belt located in Minas Gerais, Brazil. Jaguar has had a difficult 4-years but they are a gold producer that hasn't been affected by COVID restrictions and production could go near to 100,000oz.
Their focus has been to conserve costs by spending only on drilling at the expense of exploration and development. The 2 mines are deep, 1,000m stopes and small resource means that costs will rise. Baker has been onboard for only 15-months but he has started to turn the ship around. He lives in Brazil with his family and is a mining guy focused on production, but he has recognised that they need to start developing more of the large land package that they have.
An exploration agreement with IAMGOLD is encouraging. IAMGOLD also has a 900,000oz Resource near one of the 3 Jaguar Mills but don't have their own mill. Jaguar does not have enough ore to feed the mill. So, it feels like there could be a conversation to be had. The question is who does it suit more and how much does it cost in this market?
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