First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (January 2022)
41 slides from First Majestic Silver's investor presentation, January 2022
Slide 1: First Majestic
FIRST MAJESTIC SUL LAV@EeR eC ORB Ps: TSX | FR NYSE | AG FSE | FMV
Slide 2: Cautionary Disclaimer
Cautionary Disclaimer Certain statements contained herein regarding First Majestic Silver Corp. (the “Company”) and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legis
Slide 3: Silver supply and demand fundamentals
• Annual silver consumption is ~1.0B ounces • 80% sourced from mining, 20% sourced from recycling • Over past 10 years, the silver industry has been in a 500M ounce physical deficit • Silver is one of the world’s most reflective and best conductors of electricity • 57% of silver consumption is from
Slide 4: Silver Automotive Demand
Silver Automotive Demand Source: WTWH Media, www.eeworldonline.com/componenets-corner-gas-or-gauss/ Source: Metals Focus 4
Slide 5: Solar carports and silver demand for photovoltaics
• Solar carports are one of the most viable options for refueling EV’s • Currently in use at a number of Walmart’s, Federal & State offices and colleges Annual Silver Demand for Photovoltaic Solar Panels across the United States • US Department of Energy’s National Renewable Energy Laboratory (NRLE)
Slide 6: Everyday Silver Applications
EVERYDAY SILVER APPLICATIONS JX, wars You Tube f FIRSTMAJESTIC.COM TSX|FR NYSE|AG FSE| FMV
Slide 7: Gold/Silver Ratio
Gold/Silver Ratio The Gold to Silver Ratio Hit an All-Time High of 124:1 on March 18, 2020 7
Slide 8: About The Company
About The Company Top 20 Producing Silver Countries Leverage to Silver ~50% of revenue from Silver (50% Gold) North American Assets Mexico and Nevada – Two premier mining jurisdictions Multi-Asset Producer Four doré producing Ag and Au mines; 5,300 direct employees Large Land Package Over 380,000 he
Slide 9: In Production and Projects
IN PRODUCTION 4 1 San Dimas 3 La Encantada Elko 2 2 Santa Elena 4 Jerritt Canyon 3 1 5 6 PROJECTS Durango 8 Las Vegas 5 La Parrilla 7 La Guitarra 7 6 Del Toro 8 San Martin Mexico City San Dimas Silver/Gold Mine Santa Elena Silver/Gold Mine La Encantada Silver Mine Jerritt Canyon Gold Mine 9
Slide 10: Strong Production Growth
STRONG PRODUCTION GROWTH 40> __ Silver Ounces Only = 357 = w» 304 a £ é 25 4 iS) > 205 ig wu 5 15 4 2 mR 105 5 4 o/ 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E vs oS $ < Ss & xs gs & ¢ ¥ Ss és &$ ¢ $ é é ey wo D> © 2 S = xe es ¢ £ & Ss 3” 2 ae s s oe < FIRSTMAJESTIC.COM TSX|FR NYSE|
Slide 11: 2022E production and cost guidance
Silver Oz (M) Gold Oz (k) Silver Eqv Oz (M) Cash Cost AISC Silver: ($ per AgEq oz) ($ per AgEq oz) San Dimas, Mexico 7.4 – 8.2 81 – 91 13.7 – 15.2 8.59 – 9.13 11.75 – 12.65 Santa Elena, Mexico 1.9 – 2.1 61 – 68 6.6 – 7.4 13.06 – 13.86 15.58 – 16.66 La Encantada, Mexico 2.9 – 3.2 – 2.9 – 3.2 14.82 –
Slide 12: 2022E Capex Breakdown
2022E Capex Breakdown: $88M – U/G Development $45M – Exploration $52M – PP&E $23M – Corporate Projects Expansionary $122M + Sustaining $86M 12
Slide 13: Drill rigs currently active across the Company
21 Drill rigs currently active across the Company Avg. Grade (AgEq 240 217 204 208 306 320 484 478 TBA g/t): 13
Slide 14: Jerritt Canyon Gold Mine
N • Located in Elko County, Nevada • Deposit discovered in 1972 and has been in production Processing since 1981 Plant, offices • Produced over 10.0 Moz gold in 40-year production and TSF history • Production currently comes from two underground areas JC (SSX and Smith) • The operation includes one
Slide 15: Jerritt Canyon 2022E Operational Highlights
2022E Operational Highlights Mill Throughput: 2,500 tpd 2022E Production: 116,000 – 129,000 Au oz (9.0M – 10.0M AgEq oz) 2022E AISC: $1,503 - $1,607 Produces: 100% Doré Quarter End Full Year Q4 2021 Q3 2021 Q2 2021 2021* • Brought in new site management consisting of 24 high-performance individuals
Slide 16: Jerritt Canyon opportunities
East and West Roasters • Increase mining rates to fill capacity of processing plant • Ability to create value through significant underground operating experience • Near-term brownfield potential between the SSX and Smith • Exceptional exploration potential property wide • Potential of open pit push
Slide 17: Connection drift completed at end of 2021
Connection drift was completed at the end of 2021 17
Slide 18: 138,000 metres of exploration drilling planned
Approximately 138,000 metres of exploration drilling planned to test over 25 high-priority targets East and West Roasters 18
Slide 19: East and West Roasters
East and West Roasters Open pit benches with exposed mineralization Historical open pits on patent claims & USFS land 19
Slide 20: San Dimas 2022E Operational Highlights
2022E Operational Highlights Our lowest cost and Mill Throughput: 2,400 tpd largest producing mine 2022E Production: 7.4M – 8.2M Ag oz (13.7M – 15.2M AgEq oz) 2022E AISC: $11.75 – $12.65 Produces: 100% Doré Quarter End Full Year Q4 2021 Q3 2021 Q4 2020 2021 Silver production (oz) 2,174,353 1,888,371
Slide 21: San Dimas district history and land package
• First reported mining in the San Dimas district in 1757 – over 250 years ago • Considered to be one of the most significant Restarted the precious metal mining districts in Mexico Tayoltita mine in June 2020 • Historic production estimated at 11M Au oz & Current 580M Ag oz mining areas • Over 500
Slide 22: La Encantada 2022E Operational Highlights
2022E Operational Highlights Mill Throughput: 2,900 tpd 2022E Production: 2.9M – 3.2M Ag oz 2022E AISC: $17.89 – $19.15 Produces: 100% Doré Quarter End Full Year Q4 2021 Q3 2021 Q4 2020 2021 Silver production (oz) 757,586 905,074 1,093,521 3,241,556 • Natural gas generators currently supplying 90% o
Slide 23: Santa Elena 2022E Operational Highlights
2022E Operational Highlights Mill Throughput: 2,600 tpd 2022E Production: 1.9M – 2.1M Ag oz (6.6M – 7.4M AgEq oz) 2022E AISC: $15.58 – $16.66 Produces: 100% Doré Quarter End Full Year Q4 2021 Q3 2021 Q4 2020 2021 Silver production (oz) 426,870 508,641 418,153 1,954,491 • Latin America’s first succes
Slide 24: Santa Elena Exploration Upside
Las Chispas Santa Elena Vein Outcropping at Ermitaño Processing Plant Exploration Upside Ermitaño Mine • Large land package of mining claims covering 102,244 hectares P&P: 37.3M AgEq oz @ 410 g/t AgEq M&I: 45.0M AgEq oz @ 474 g/t AgEq Inferred: 53.1M AgEq oz @ 326 g/t AgEq • New discovery made at Er
Slide 25: Ermitaño drill results and resources
• Hole 16-04: 9.9 metres grading 1,209 g/t AgEq • Hole 18-47: 13.0 metres grading 547 g/t AgEq • Hole 19-91: 13.0 metres grading 1,003 g/t AgEq • Not subject to Sandstorm stream • Production to ramp up 2022 - 2023 • Completed 30,300 metres of drilling • PFS released in November 2021 in 2021 Inaugura
Slide 26: Ermitaño 2022 drill plans
• Planning to drill ~30,000 metres in 2022 to expand the existing resource • System remains open to the East and at depth • Potential for look-alike deposit at Ermitaño Luna *North facing section 0 250 500 26
Slide 27: Energy Sources at Our Mexico Operations
Energy Sources at Our MEX Operations • Over the last five years, the Company has focused to reduce its consumption of fossil fuels, like diesel and electricity supplied to the grid by coal burning power plants • In 2016, the La Encantada operation was converted from diesel to clean burning liquefied
Slide 28: Key growth drivers for 2022
• Production ramp up at Santa Elena’s Ermitaño Mine in 2022 (1,000 tpd) and 2023 (2,000 tpd) • Unlocking value at Jerritt Canyon through increased exploration and development rates to increase production and lower costs • Dual circuit installation at Santa Elena processing plant to increase metallur
Slide 29: Capital Structure and Top Shareholders
Capital Structure: Top Shareholders: % S/O Market Capitalization: $2.9B Van Eck (GDXJ & GDX) 10.2% Eric Sprott 10.0% Shares Outstanding: 260M (FD 266M) ETF Managers Group 3.3% 3M Avg. Daily Volume (NYSE &TSX): 5.5M Shares ~$66M The Vanguard Group 2.6% Cash: $192.8M Susquehanna International Group 1.
Slide 30: Short interest
Source: Bloomberg (NYSE & TSX reported short interest) 30
Slide 31: Dividend policy
Under the Company’s dividend policy, the quarterly dividend per common share is targeted to equal approximately 1% of the Company’s revenues. The Q3 2021 cash dividend of $0.0049 per share will be paid to holders of record of First Majestic as of the close of business on November 17,2021 and will be
Slide 32: Reasons to own silver
1. Silver is real money 2. Physical silver is a hard asset 3. Silver is relatively inexpensive 4. Silver isn’t just cheaper to buy, but it can be more practical when you need to sell, too 5. Silver outperforms gold in bull markets 6. Silver inventories are falling 7. Industrial use is growing 8. New
Slide 33: Other silver mines: La Parrilla, Del Toro, San Martin, La Guitarra
La Parrilla Del Toro San Martin La Guitarra Silver Mine Silver Mine Silver Mine Silver Mine • Located in Durango, Mexico • Located in Zacatecas, Mexico • Located in Jalisco, Mexico • Located in the State of Mexico, Mexico • Dual-circuit processing facility consisting of a • Property consists of 70 m
Slide 34: San Dimas silver purchase agreement and tax matters
• Primero Mining Corp. (“PEM”), now a subsidiary of First Majestic, acquired the San Dimas mine in 2010 and at the time had a Silver Purchase Agreement that required PEM to sell 100% of the silver produced to Wheaton Precious Metals Corp., up to 6 million ounces and 50% of silver produced thereafter
Slide 35: Springpole silver stream
• In June 2020, entered into a silver stream agreement to purchase 50% of the silver produced from the Springpole Project, located in Ontario, Canada • Ongoing cash payments of 33% of the silver spot price per ounce, up to a maximum of $7.50 per ounce • Total consideration of $22.5 million in cash a
Slide 36: Proven and probable mineral reserves
PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020, EXCEPT FOR SANTA ELENA WHICH IS JUNE 30, 2021 (1) Mineral Reserves have been classified in accordance with the 2014 Mine Category Mineral Type Tonnage Grades Metal Content Canadian Institute of Mining, Metallurgy and P
Slide 37: Measured and indicated resources, material properties
MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020, EXCEPT FOR SANTA ELENA WHICH IS JUNE 30, 2021 (1) Mineral Resource estimates have been classified in accordance with the Mine Category Mineral Type Tonnage Grades Metal Content 2014 Canadian Institute of M
Slide 38: Measured and indicated resources, non-material properties
MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020, EXCEPT FOR SANTA ELENA WHICH IS JUNE 30, 2021 (1) Mineral Resource estimates have been classified in accordance with the Mine Category Mineral Type Tonnage Grades Metal Content 2014 Canadian Institute of M
Slide 39: Inferred resources, material properties
INFERRED MINERAL RESOURCE ESTIMATES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020, EXCEPT FOR SANTA ELENA WHICH IS JUNE 30, 2021 (1) Mineral Resource estimates have been classified in accordance with the Mine Category Mineral Type Tonnage Grades Metal Content 2014 Canadian Institute of Mining, Metallu
Slide 40: Inferred resources, non-material properties
INFERRED MINERAL RESOURCE ESTIMATES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020, EXCEPT FOR SANTA ELENA WHICH IS JUNE 30, 2021 (1) Mineral Resource estimates have been classified in accordance with the Mine Category Mineral Type Tonnage Grades Metal Content 2014 Canadian Institute of Mining, Metallu
Slide 41: First Majestic Silver Corp. contact details
First Majestic Silver Corp. 1800 - 925 West Georgia Street Vancouver, British Columbia, Canada V6C3L2 Email: info@firstmajestic.com Tel: 604.688.3033 Fax: 604.639.8873 North American Toll-Free: 1.866.529.2807 Bullion Sales Email: sales@firstmajestic.com
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