Jaguar Mining Announces Comprehensive Restructuring and Turnaround Plan; Operational Improvements and Aggressive Cost Cutting Measures are Under Way
Jaguar Mining (NYSE: JAG) today announced the implementation of a comprehensive restructuring and turnaround plan to improve costs and efficiency at its operations in the state of Minas Gerais, Brazil. The plan incorporates objectives and initiatives identified by Jaguar's Office of the Chairman, its new Chief Operating Officer and a number of expert industry consultants who have been retained to assist with operational and cost improvements. Highlights of the restructuring and turnaround plan include: -- Paciencia operations placed on temporary care and maintenance for mine development catch-up
-- Cost reduction and productivity improvements at the Turmalina and Caete operations
-- Focus on mining dilution reduction and development cost reduction at all
-- Targeted 40 percent reduction in overhead and administrative costs across the Company "Since making management changes in December, the Office of the Chairman has taken a hands-on approach to reviewing operations, identifying the problems and aggressively pursuing solutions," said Gary German, Chairman of Jaguar's Board of Directors. "Our reviews have confirmed that we have sound assets, including geological resources and processing facilities. However, our mine planning, engineering and mining methods require changes for us to maximize the value of these assets. We now have a very aggressive plan to make the necessary corrections and improvements to increase productivity and enhance profitability. We expect that full implementation will take 12 to 18 months to complete but cost improvements are expected to begin to be realized almost immediately."
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