Tuesday, August 10, 2010

Jaguar Mining (JAG): Just how bad was the 2q10 earnings report, Otto?

Ohhhh, it was very bad. Very nasty, smelly and badly bad.

In the world of OPUD (over-promise, under-deliver) so normal to the world of gold mining (GRS, MFN, countless others) one small producer stands head and shoulders above the rest in terms of utter mediocrity. Jaguar Mining (JAG) has always managed to disappoint its shareholders and the market on its earnings day each quarter but this one, published after the bell yesterday, takes the biscuit.

The miss was so bad that it's left even the cynical amongst us (i.e. me and hopefully you) open-mouthed. Go see the numbers yourself in the NR and the way the company has no idea how to guide for the future due to the complete snafu it's made of its Turmalina mine, but I'd just like to offer up one chart generated from company projections that shows just how moronic JAG thinks its shareholders are:

Here we have the last 10 quarters results. Now this is the same company that said in late 2008 it would be "leaving 2009 at a 200,000oz per year production rate". It's the same company that saw its Pres/CEO Titcomb say on March 25th 2008:
"Today I am going to focus primarily on our growth initiatives and the program to grow the company from its program that was announced shortly in the past year, about a month ago. We’re moving the company from a 400,000-420,000 oz Au producer to a 700,000 oz Au producer."

Honestly I shit thee not, dear reader. That's how this bullshitter started the YE conference call that day, transcript available on request. I mean, Jeebus Creepus! How in the name of all things good and sweet can you move a company from 400k if you can't even put together a 200k production year two years later?

But no, this doesn't stop the stream of drivel and balderdash from flowing out of JAG, as we see that it's now guiding the next two quarters as the highest production numbers ever at the company! YOU CANNOT MAKE THIS SHIT UP!

There's only one thing left to be said here. Daniel Titcomb, will you please just...

And while you're at it, resign in disgrace.

UPDATE: Not only that, but they've gone chicken on us and hedged. Truly pathetic. This from the 2q10 financials:
12. Subsequent Event
During July 2010, the Company entered into a limited ‘no-cost gold collar’, which is a financial contract to mitigate gold price risk in the event of an unforeseen significant global financial event. These no-cost collars will be measured at fair value on a recurring basis, using significant observable inputs (fair value hierarchy level 2). To place the no-cost collars, the Company purchased gold puts for 59,600 ounces with a strike price range of $1,050 to $1,117 per ounce and sold gold calls for 60,000 ounces with a strike price range of $1,300 to $1,475 per ounce. The contracts are time-matched and settle prior to December 31, 2010.