Q: I just bought a small position in Jaguar Mining. I have never considered JAG an interesting gold mining company but it came to my attention that currently there is an interesting turn around story at JAG. JAG had an accident at their turmalina mine which took one of their two mines off line as well as it saddled JAG with a $50 USD fine from the Brazilian government. Subsequently that fine has been reduced to $10 USD and turmalina is scheduled to be back producing gold in 2026. Meanwhile the high price of gold has allowed JAG to have free cash flow even with only on performing mine. So IF all goes well with the restart of turmalina and the price of gold is good, let's say over $3500 per ounce, JAG should have good cash flow.
What I don't understand is why JAG raised $28 million on Tuesday with an equity raise. Through reading articles I was lead to believe that JAG had net cash on the balance sheet, so why would they raise more? Can you use your bloomberg terminal and confirm if JAG has debt or net cash on the balance sheet prior to the equity raise? I am considering of adding to my position of JAG because of the turn around potential, but what do the 5i guys think of JAG. I have lots of Agnico and B2Gold plus a little bit of aalmos and K9 in Papau Guinea so I am looking for somethin a little more speculative in a junior gold producer, do you have other ideas? Also about 48 per cent of Jaguar shares are owned by Eric Sprott (I believe it is his personal holding since they are held via a numbered company in Ontario). I look at that as a positive but is there a downside to have one rich dude nearly controlling the company? I know this is long question!
What I don't understand is why JAG raised $28 million on Tuesday with an equity raise. Through reading articles I was lead to believe that JAG had net cash on the balance sheet, so why would they raise more? Can you use your bloomberg terminal and confirm if JAG has debt or net cash on the balance sheet prior to the equity raise? I am considering of adding to my position of JAG because of the turn around potential, but what do the 5i guys think of JAG. I have lots of Agnico and B2Gold plus a little bit of aalmos and K9 in Papau Guinea so I am looking for somethin a little more speculative in a junior gold producer, do you have other ideas? Also about 48 per cent of Jaguar shares are owned by Eric Sprott (I believe it is his personal holding since they are held via a numbered company in Ontario). I look at that as a positive but is there a downside to have one rich dude nearly controlling the company? I know this is long question!
