Jaguar Mining Inc. Reports 30% Year-Over-Year Gold Production Growth in Q3 2026

Jaguar Mining Inc. (JAG) released its third-quarter 2026 operating and production results, reporting a headline 30% year-over-year increase in gold production to 12,981 ounces, compared to 10,002 ounces in the same period last year. This comparison is influenced by the fact that the Turmalina Mine produced zero ounces in Q3 2025 following a suspension after the December 2024 Satinoco dry-stacked pile slump. Consequently, the year-over-year growth reflects the restart of an asset that previously contributed nothing, which offset a decline at the company’s primary operating mine.

Consolidated production of 12,981 ounces represented a 0.6% decrease quarter-over-quarter from 13,057 ounces in Q2 2026. The Pilar mine produced 8,549 ounces, a 14.5% decline from the 10,002 ounces produced in Q3 2025. Head grade at Pilar fell to 2.76 g/t from 3.68 g/t in the prior year, marking a 25.0% grade decline. Throughput rose 14% to 108,255 tonnes. The company attributed the lower grades to a higher contribution of development ore, adjustments to the mining sequence, and grade variability between mine estimates and plant feed grade, indicating the mill processed material with less gold per tonne than modeled.

The Turmalina mine produced 4,432 ounces, an 11.0% increase from 3,994 ounces in Q2 2026. The operation achieved a head grade of 4.00 g/t, but recovery dropped to 67.36% from 84% in Q2 2026. The Faina ore type, which accounted for approximately 67% of plant feed, saw its recovery rise from 10% to roughly 67%. While management noted that Faina’s recovery exceeds the 55% assumption from the technical study, blending it into the process reduced the blended recovery by approximately 17 percentage points.

For the first nine months of 2026, consolidated production totaled 35,667 ounces, a 15% increase over the 30,899 ounces produced in the same period of 2025. Development activity included 2,099 meters, a 20% year-over-year and 7% quarter-over-quarter increase. Diamond drilling totaled 11,394 meters, compared to 5,774 meters in Q3 2025 and 11,203 meters in Q2 2026, with efforts focused on orebody definition, infill, and mine-plan support.

Gold sales for the quarter reached 14,258 ounces, exceeding the 12,981 ounces produced. This 1,277-ounce inventory draw is expected to flatter reported Q3 revenue relative to production volumes. Jaguar Mining maintains its 2026 guidance of 50,000 to 60,000 ounces. Additionally, the company now describes the Paciência/Santa Isabel complex as undergoing development work to restart in early 2027, a shift from the Q1 2026 MD&A which had projected a Q4 2026 or late 2026 restart. Full Q3 financials, including AISC, cash cost per ounce, free cash flow, and cash balance, will be filed on or before November 13, 2026.

Jaguar Mining Inc. (JAG) reported production results that highlight ongoing operational challenges, particularly at its Pilar and Turmalina assets. The Pilar head grade came in at 2.76 g/t, marking the lowest disclosed grade for the property in the provided history. For context, the grade was 3.68 g/t in Q3 2025, 3.30 g/t in Q2 2026, and 3.87 g/t in Q1 2026. This represents a third consecutive quarter of deterioration. The company’s release acknowledged "grade variability between mine estimates and plant feed grade," indicating a reserve-model reconciliation issue rather than a scheduling problem.

At the Turmalina operation, recovery rates collapsed to 67.36%, down from 84%. This decline presents a forward-looking unit-cost challenge, particularly as the Faina mine already accounts for 67% of the feed mix and is expected to grow. The blend driving this recovery decline is part of the company’s growth plan.

Despite these headwinds, there were positive operational indicators. Turmalina ounces grew 11% quarter-over-quarter, and Faina recovery rates of 67% remained 12 percentage points above the 55% assumption set in the technical study. Additionally, development activity increased 20% year-over-year, and drilling volumes nearly doubled compared to the same period last year, signaling real operational momentum at the face.

While guidance was not formally cut, the arithmetic of the results suggests a lower effective guidance level. The market appears to have already discounted some of this weakness, with the stock falling 22% from a high of $8.19 on September 22 to $6.38 on October 14.

Jaguar Mining Inc. (TSX:JAG) is a Canadian-listed junior gold producer, developer and explorer operating exclusively in Brazil's Iron Quadrangle, Minas Gerais, holding the second-largest gold land position in the district at over 46,000 hectares.

The company’s operations are divided into three main complexes. The Caeté Complex includes the Pilar Mine, described as the flagship and "workhorse" with underground workings extending to 1,100 m depth and a stated life of approximately eight years, alongside the Roça Grande Mine, which has been on care and maintenance since April 2019, and the Caeté plant.

The MTL Complex features the Turmalina Mine and plant, which was suspended in December 2024 following a slump in the Satinoco dry-stacked pile. The company received ANM approval to resume operations on January 7, 2026, and NEA clearance on March 9, 2026, with production ramping through 2026. This complex includes the Faina orebody and the untested A/SE2 lens.

The Paciência Complex consists of the Santa Isabel Mine and plant, which has been on care and maintenance since 2012. Dewatering and rehabilitation are currently underway, with a restart now guided for early 2027. The site hosts the Chamé, Marzagão and Bahú targets along a ~15 km mineralized corridor, containing 189 koz of inferred resources (1,423 kt at 4.14 g/t).

In development, the Onças de Pitangui underground project is targeting an Installation Licence in the second half of 2026.

Strategically, the company is pursuing a three-pillar growth plan focused on maximizing core assets, restarting idled assets, and exploring the 46,000 ha package. This initiative is supported by a five-year, 227,200 m drilling program with an estimated US$43M budget, contracted to Major Drilling and GEOSOL with flexible termination provisions.