Summary of Jaguar Mining Conference Call (October 08, 2025) Company Overview - **Company**: Jaguar Mining Inc. (OTCPK:JAGG.F) - **Industry**: Gold Mining - **Location**: Minas Gerais, Brazil - **Market Capitalization**: Over $500 million [6][59] Key Points and Arguments Current Operations and Production - Jaguar Mining is a mid-tier gold producer with three mining complexes: Caeté, Paciencia, and Turmalina [4][5] - The Caeté complex is currently in production, with an expected output of approximately 40,000 ounces of gold by the end of 2025 [10][29] - The Turmalina complex is planned to restart in Q1 2026 after addressing a dry stack tailings incident [5][11] - Historical production from Turmalina was between 30,000 to 35,000 ounces per year [26] Financial Performance - As of June 2025, the company produced nearly 21,000 ounces of gold at a grade of 4 grams per ton, with an all-in sustaining cost of $1,725 per ounce, resulting in an adjusted EBITDA of $43.3 million [10][11] - Future projections suggest that with the restart of Turmalina and the Santa Isabel mine, production could double to around 80,000 ounces in 2026 [29] Growth Strategy - The growth strategy is based on three pillars: 1. **Maximizing Core Assets**: Focus on increasing production from existing mines [9][10] 2. **Exploration Portfolio**: A five-year exploration plan targeting 220,000 meters of drilling to identify new resources, with potential to discover between 4.5 to 8 million ounces in the Iron Quadrangle [37][40] 3. **M&A Opportunities**: Targeting projects in pre-feasibility or feasibility stages that are held by junior companies, particularly those that have secured preliminary licenses but face challenges in obtaining installation licenses [51][54] Incident Management - The company faced a dry stack tailings incident at Turmalina in December 2024, which required the relocation of nearby residents but resulted in no casualties [11][24] - Compensation for affected families is estimated at $10 million, with an additional $11 million in environmental fines [24][29] Market Position and Valuation - Jaguar Mining is currently trading at a significant discount compared to peers, with a P/NAV of 45% and a P/CF of 53% [57] - The company has a strong cash position of approximately $76 million, bolstered by a recent equity raise of $25 million [61][62] Future Outlook - The company aims to ramp up production to over 100,000 ounces per year within three to five years, potentially reaching 200,000 to 300,000 ounces with new projects [30][56] - The Onça de Pintangue project, acquired from IAMGOLD, is expected to contribute an additional 42,000 ounces per year starting in 2027 [30][33] Conclusion - Jaguar Mining is positioned for growth with a robust strategy focused on maximizing existing assets, exploring new opportunities, and pursuing strategic acquisitions. The company is well-capitalized and aims to leverage its strong operational base to attract more sophisticated investors as it scales production [58][85]

Financial Data and Key Metrics Changes - The company aims for mid-single-digit growth while expanding margins, indicating a focus on profitability alongside revenue growth [5][30] - The CFO noted that 80% of the supply chain is U.S. sourced, with 10% from China and 7% from Mexico, which positions the company well against tariff pressures [23] Business Line Data and Key Metrics Changes - The core business categories, including body care, home fragrance, soaps, and sanitizers, are all growing, and the company plans to innovate and sharpen stories in these areas [17] - The company is focusing on fewer categories to drive productivity and better full-price selling, moving away from overwhelming assortments [19][20] Market Data and Key Metrics Changes - The company has launched products into 600 college bookstores, targeting a younger demographic and expanding its market reach [15] - The semi-annual sale performed well, with strategic changes made to timing and assortment to align with consumer mindset [40] Company Strategy and Development Direction - The company is committed to putting the consumer at the center of every decision, emphasizing the importance of understanding consumer needs through direct engagement [6][8] - There is a strategic shift towards enhancing digital presence and improving product efficacy, with plans for new packaging to better communicate product benefits [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need to attract new consumers to capture growth in the sector, despite strong repeat purchases from existing customers [9] - The CEO expressed confidence in the company's ability to mitigate tariff impacts through supply chain optimization and assortment adjustments [23] Other Important Information - The loyalty program has grown to 39 million members, with ongoing enhancements to increase customer engagement and retention [32] - The company is exploring new distribution channels to reach consumers more effectively, indicating a shift in how brands are perceived by consumers [15] Q&A Session Summary Question: What is the expectation for the consumer environment in the second half of 2025? - Management expects consumer spending habits to remain about the same as the first half of the year [34] Question: How do you view price elasticity and consumer response to pricing changes? - There is price elasticity, and consumers will pay for well-marketed products, but there will also be moments when value-seeking behavior drives traffic [36] Question: What are the expectations for inventory growth and potential shipment disruptions? - Inventory is expected to increase in the second half, but no disruptions in shipments are anticipated [37] Question: How are non-tariff margin drivers expected to change? - No significant changes in costs are expected, and the company will continue to manage external pressures effectively [37] Question: What are the thoughts on market share consolidation in light of recent bankruptcies? - The company is focused on taking market share and leveraging its profitable platform to drive growth [38] Question: Can you discuss the changes made during the semi-annual sale? - The semi-annual sale was pushed back to better align with consumer mindset, and leveraging social influencers helped create buzz [40]