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Jaguar Financial reports second quarter of fiscal 2009 results

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^{Published in Business and Finance on Wednesday, August 5th 2009 at 14:26 GMT, Last Modified on 2009-08-05 14:26:30 by Market Wire}  

 TORONTO, Aug. 5 /CNW/ - Jaguar Financial Corporation ("Jaguar" or the "Company") (TSX: JFC) today reported a loss of $261,077 for the quarter ended June 30, 2009, a substantial improvement over the loss of $3,480,783 a year ago. The loss included the Company's non-cash share of the loss of its associated company, Lakeside Steel Inc. ("Lakeside"), of $697,407 compared to a loss of $14,327 in the quarter ended June 30, 2008. For the three months ended June 30, 2009, the Company generated a net gain on investments of $2,269,345, compared to a net loss on investments of $2,490,986 in the second quarter of 2008. Jaguar realized a total gross gain of $5,852,000 on its investment in HudBay Minerals Inc. ("HudBay") during a period of six months from November 2008 to May 2009, or a net gain of $2,186,000 during this six month period after expenses, including the profit participation paid to its lenders to finance the investment. $1,277,000 of the HudBay net gain was reflected in the June 30, 2009 quarter. In addition, in the June 30, 2009 quarter, Jaguar had mark-to-market losses of $323,000 for its investments in Tiomin Resources Inc. ($232,000) and Kinbauri Gold Corp. ($91,000). The Company had a mark-to-market gain of $267,000 on its investment in Royal Laser Corp. ("Royal Laser"). Jaguar substantially reduced its expenses from $2,710,153 in the first quarter ended March 31, 2009, to $1,833,015 in the June 30, 2009 quarter. A substantial portion of the $1,833,015 in expenses in the June 30, 2009 quarter, or $1,018,000, related to profit participation paid to lenders for the investment in HudBay. Jaguar received a dividend of $777,530 from Lakeside in the quarter ended June 30, 2009, which was accounted for as a reduction in the cost of its investment in Lakeside, as Jaguar equity accounts for its Lakeside investment. Jaguar increased its cash resources by $2,147,819 in the June 30, 2009 quarter to end with a total cash position of $2,482,167 at the end of the quarter. Vic Alboini, Chairman and Chief Executive Officer of Jaguar stated: "Our investment team realized a solid investment gain in HudBay, we received a good dividend from Lakeside, increased our cash resources, reduced our expenses considerably and initiated a normal course issuer bid. We have streamlined our portfolio to consist of our primary investments in Lakeside, Royal Laser, Tiomin and Kinbauri. We have been proactive in creating value in Kinbauri, as Orvana Minerals Corp. has increased its offer for all the Kinbauri shares to $0.75 per share. We also settled our action against Tiomin and its directors. Overall it has been a very busy quarter." For the six months ended June 30, 2009 the Company reported net income of $420,763 compared to a net loss of $4,553,251 in the same period in 2008. The Company generated a net gain on investments of $5,874,343 compared to a net loss on investments of $2,506,169 in the prior year. The gain on investments included $6,104,737 on the Company's investment in HudBay. In the six month period ended June 30, 2009 the Company recorded a non-cash equity loss of $1,005,030 from its investment in Lakeside compared to a loss of $37,390 for the prior year. About Jaguar Jaguar is a Canadian merchant bank that invests in undervalued small capitalization companies in a variety of industry sectors. The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release. This news release may contain certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under Jaguar's control which may cause actual results, performances or achievements of Jaguar to be materially different from those implied by such forward looking statements. 

For further information: on this press release, please contact: Vic Alboini, Chairman and Chief Executive Officer, (416) 644-8110