Topic: How To Invest

Pat: What is your opinion of the prospects of Jaguar Mining? Thank you.

Article Excerpt

Jaguar Mining, $3.40, symbol JAG on Toronto (Shares outstanding: 84.4 million; Market cap: $287.0 million; www.jaguarmining.com), is a junior gold producer in Brazil. It has three mines: Caete, Turmalina and Paciencia. Jaguar is also developing the Gurupi project in northern Brazil. In the three months ended December 31, 2011, Jaguar’s revenue rose 28.8%, to $57.4 million from $44.6 million a year earlier. The company lost $0.10 a share, compared to a loss of $0.12 a share. Cash flow per share fell to $0.02 from $0.08 a year earlier. Jaguar produced 155,764 ounces of gold in 2011. However, that could fall to 150,000 ounces in 2012, because the company’s mines continue to experience operational difficulties. In November 2011, the stock shot up to as high as $8.36 on reports that Chinese state-owned gold producer Shandong Gold Group was about to offer to buy Jaguar for $1 billion, or $9.30 a share, in cash. Jaguar began to consider the possible offer, and to explore other…