TSX:JAG

Stock Analysis Report

Executive Summary

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold producing properties in Brazil.

Rewards

Revenue is forecast to grow 6.82% per year

Risk Analysis

Earnings have declined by -15.96% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Jaguar Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JAG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

JAG

0.8%

CA Metals and Mining

0.8%

CA Market


1 Year Return

11.9%

JAG

28.8%

CA Metals and Mining

10.6%

CA Market

Return vs Industry: JAG underperformed the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: JAG exceeded the Canadian Market which returned 10.1% over the past year.


Shareholder returns

JAGIndustryMarket
7 Day-6.0%0.8%0.8%
30 Day9.3%1.0%2.1%
90 Day46.9%8.5%6.6%
1 Year11.9%11.9%29.8%28.8%14.1%10.6%
3 Year-65.9%-65.9%-0.5%-2.3%17.0%6.4%
5 Year-53.9%-53.9%30.0%25.8%38.5%18.2%

Price Volatility Vs. Market

How volatile is Jaguar Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jaguar Mining undervalued compared to its fair value and its price relative to the market?

1.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate JAG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate JAG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: JAG is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: JAG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JAG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JAG is good value based on its PB Ratio (1.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Jaguar Mining forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if JAG's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if JAG's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JAG's revenue (6.8% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: JAG's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JAG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Jaguar Mining performed over the past 5 years?

-16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JAG is currently unprofitable.

Growing Profit Margin: JAG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JAG is unprofitable, and losses have increased over the past 5 years at a rate of -16% per year.

Accelerating Growth: Unable to compare JAG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JAG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: JAG has a negative Return on Equity (-14.2%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jaguar Mining's financial position?


Financial Position Analysis

Short Term Liabilities: JAG's short term assets ($38.4M) exceed its short term liabilities ($32.9M).

Long Term Liabilities: JAG's short term assets ($38.4M) exceed its long term liabilities ($35.7M).


Debt to Equity History and Analysis

Debt Level: JAG's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: JAG's debt to equity ratio has reduced from 21.1% to 6.8% over the past 5 years.


Balance Sheet

Inventory Level: JAG has a high level of physical assets or inventory.

Debt Coverage by Assets: JAG's debt is covered by short term assets (assets are 4.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: JAG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: JAG has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of -61.3% each year.


Next Steps

Dividend

What is Jaguar Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate JAG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate JAG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JAG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JAG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JAG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Jaguar Mining's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Vern Baker 0

0.4yrs

Tenure

0

Mr. Vernon Baker, also known as Vern, Mining Eng., MBA has been Vice President of Sudbury Operations at First Nickel Inc. since January 13, 2015. He serves as Chief Executive Officer at Jaguar Mining Inc.  ...


Management Age and Tenure

2.0yrs

Average Tenure

Experienced Management: JAG's management team is considered experienced (2 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

55yo

Average Age

Experienced Board: JAG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: JAG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$7,023,69213 Jan 20
Eric Sprott
EntityIndividual
Shares39,020,500
Max PriceCA$0.18
SellCA$7,593,56710 Jan 20
Tocqueville Asset Management LP
EntityCompany
Shares42,352,000
Max PriceCA$0.20
SellCA$164,11406 Jan 20
Tocqueville Asset Management LP
EntityCompany
Shares1,061,000
Max PriceCA$0.16
SellCA$249,63903 Jan 20
Tocqueville Asset Management LP
EntityCompany
Shares1,587,000
Max PriceCA$0.18
BuyCA$12,50013 Dec 19
Rodney Lamond
EntityIndividual
Role
Chairman of the Board
Chairman
Shares100,000
Max PriceCA$0.13
BuyCA$19,50013 Dec 19
Luis Miraglia
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares150,000
Max PriceCA$0.13
BuyCA$19,20012 Dec 19
Luis Miraglia
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares160,000
Max PriceCA$0.12
BuyCA$1,107,92224 Jul 19
Eric Sprott
EntityIndividual
Shares6,924,500
Max PriceCA$0.16
BuyCA$20,100,11810 Jul 19
Eric Sprott
EntityIndividual
Shares236,470,588
Max PriceCA$0.085
BuyCA$6,548,52909 Jul 19
Tocqueville Asset Management LP
EntityCompany
Shares77,179,388
Max PriceCA$0.085

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 31.7%.


Management Team

  • Wilson Chaves

    Chief Metallurgist

    • Vern Baker

      Chief Executive Officer

      • Tenure: 0.4yrs
    • Valéria DioDato

      Director of Communication

      • Hashim Ahmed

        Chief Financial Officer

        • Tenure: 3.9yrs
        • Compensation: US$399.20k
      • Jon Hill

        Executive Officer of Exploration & Mine Geology

        • Tenure: 2yrs

      Board Members

      • Jeff Kennedy

        Independent Non-Executive Director

        • Tenure: 0.3yrs
      • Ben Guenther (66yo)

        Director

        • Tenure: 2.2yrs
        • Compensation: US$190.83k
      • Rod Lamond (55yo)

        Chairman

        • Tenure: 0.08yrs
        • Compensation: US$651.31k
      • John Ellis (84yo)

        Independent Non-Executive Director

        • Tenure: 3.6yrs
        • Compensation: US$126.59k
      • Luis Miraglia (44yo)

        Independent Director

        • Tenure: 7.3yrs
        • Compensation: US$134.31k
      • Thomas Weng (50yo)

        Independent Director

        • Tenure: 3.8yrs
        • Compensation: US$133.99k

      Company Information

      Jaguar Mining Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Jaguar Mining Inc.
      • Ticker: JAG
      • Exchange: TSX
      • Founded: 2002
      • Industry: Gold
      • Sector: Materials
      • Market Cap: CA$170.124m
      • Shares outstanding: 723.93m
      • Website: https://www.jaguarmining.com

      Number of Employees


      Location

      • Jaguar Mining Inc.
      • First Canadian Place
      • 56th Floor
      • Toronto
      • Ontario
      • M5X 1C9
      • Canada

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      JAGTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2003
      32JNDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2003
      JAGG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2003
      0V29LSE (London Stock Exchange)YesCommon SharesGBCADOct 2003

      Biography

      Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold producing properties in Brazil. Its principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex located in the Iron Quadrangle in the state of Minas Gerais. Its mineral claims cover an area of approximately 64,000 hectares. The company was founded in 2002 and is headquartered in Toronto, Canada. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 23:34
      End of Day Share Price2020/01/22 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.