UPDATE 1-Jaguar Mining Q2 gold production up 24 pct sequentially

Mon Jul 13, 2009 1:48pm EDT

Related Topics

* Q2 cash operating margin higher than expected

* Q2 avg cash oper cost $466/ounce vs $455/ounce year ago

* Maintains FY 2009 production target

* Shares down about 3 pct

July 13 (Reuters) - Canada's Jaguar Mining Inc JAG.TO said its second quarter gold production jumped 24 percent sequentially, helped mainly by the re-start of leaching operations at its Sabara mine in Brazil.

The company said its quarterly production was ahead of its 2009 plan, but maintained its full-year production target of between 165,000 and 175,000 ounces.

Jaguar Mining, which has gold-producing properties in Brazil, said in the quarter it produced 40,758 ounces of gold at an average cash operating cost of $466 per ounce, $57 per ounce higher than the first quarter.

The higher cash operating costs were due to several factors, including exchange rates, higher chemical costs and restart of operations in Sabara, which was idle during the first quarter due to seasonal effects of heavy rainfall.

The company said despite higher costs, its cash operating margin of $456 per ounce for the quarter slightly exceeded its expectations of $450 per ounce.

Jaguar said it sold 35,560 ounces at an average price of $922 per ounce, compared with 23,537 ounces at an average price of $900 per ounce a year earlier.

Shares of the company were down 3 percent at C$8.23 Monday afternoon on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; editing by Unnikrishnan Nair)

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