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11/10/10

Jaguar Mining (JAG): Another fail

JAG's 3q10 results yesterday were the usual dosage of underperformance. Cash costs higher, another nasty net loss etc etc ad infinitum...all the line items we're used to from this dog.

But we note that even the way lower guidances that JAG handed out after its 2q10 trainwreck quarter (that we documented right here) we missed by some distance. Back then, JAG guided for 43,500oz production in 3q10. The result, just 23 days after that 3q10 was given to the market, was quarterly production of 38,861 oz Au produced.

If you do the math, that 4,639 oz if sold by JAG at its sales average for the quarter of U$1,254/oz means that JAG promised the market U$5.8m worth of production more than it could deliver....just 23 days before the quarter closed! Compare that to the $3.8m net loss JAG just announced for 3q10. And think about it.

JAG is gold mining's Boy Who Cried Wolf writ large. Avoid forever.