Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Brazillian gold miner, Jaguar Mining (NYSE:JAG), reported a net loss of $21.6 million or $0.26 per fully diluted share for 3Q.
A year ago the company reported a net loss of $51.3 million for the same quarter.
The company’s stock was off 16.83% to 84 cents. Jaguar Mining’s 52-week high is $8.18 and its low is 60 cents.
The company has operations in the greenstone belt in the state of Minas Gerais, as well as projects in the northern part of the country.
Average cash operating cost per ounce was $963 in the third quarter 2012 compared to $1,162 in the second quarter 2012 and $886 in the third quarter 2011.
The company said the cash cost per ounce fell due to an on-going cost reduction program, which included placing the Paciência operation on care and maintenance beginning in May 2012, reduced headcount at the mining operations and continued focus on reducing dilution and improving productivity.
