First Majestic Silver Corp. · TSX:AG

First Majestic Silver — Investor Presentation (August 2014)

31 slides from First Majestic Silver's investor presentation, August 2014

  1. Slide 1: First Majestic Silver Corp.

    FIRST MAJESTIC SILVER CORP. TSX: FR | NYSE: AG | FRANKFURT: FMV ONE METAL, ONE COUNTRY... Fi

  2. Slide 2: Forward-looking statements

    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 legislation. All statements

  3. Slide 3: Market emotion cycle

    EUPHORIA ANXIETY THRILL DENIAL EXCITEMENT FEAR OPTIMISM OPTIMISM RELIEF DESPERATION PANIC HOPE DEPRESSION DESPONDENCY

  4. Slide 4: World's largest silver producing country

    Pure Silver Producer 83% Ag in 2013 (5% Au, 9% Pb and 3% Zn) One Country: Mexico World’s largest silver producing country Five producing silver mines; 100% owned Multi-Asset Producer Projecting 12.7M - 13.3M Ag oz in 2014 Future Growth Two advanced stage silver projects Goal Achieve annual productio

  5. Slide 5: Production Ounces (Millions)

    Market Capitalization: US$1.3B Shares Outstanding: 117.4M (FD 124.2M) Avg. Daily Volume: 2.2M shares ~ US$24M in daily liquidity Cash & Cash Equiv: US$64.9M Production Ounces (Millions) 3

  6. Slide 6: Broad Depth of Management

    BROAD DEPTH OF MANAGEMENT • Top 45 Senior Management have over 925 years of mining and management experience • 100% Mexican operating talent - No Expats • Internally design, develop and construct 100% of our silver projects • ~ 4,100 employees • Awarded ‘Socially Responsible Company’ for six consecu

  7. Slide 7: Quarter End Financial Results

    Quarter End Full Year (All shown in $USD) Q1 2014 Q4 2013 Q1 2013 2013 Revenue 65.3M 59.0M 67.1M 251.3M Mine Operating Earnings 16.1M 14.3M 34.6M 92.3M Net Earnings after taxes 6.0M (81.2M) 26.5M (38.2M) Earnings per share - Adjusted(1) 0.06 0.05 0.21 0.56 Operating Cash Flows, before movements in W

  8. Slide 8: Mine locations in Mexico

    IN PRODUCTION 1 La Encantada 2 La Parrilla 1 3 San Martin 4 La Guitarra 5 Del Toro 2 6 5 7 3 PERMITTING 4 6 Plomosas 7 La Luz 6 7

  9. Slide 9: Q2'14 Production

    Q2'14 Production: Ag Oz. 3,098,218 Ag Eqv. Oz. 3,855,224 Mine Total Ag Oz Cash Costs/Oz Cash Costs/Tonne Produced ($USD)* ($USD)** La Encantada 1,043,573 $8.67 $45.77 Still in ramp up La Parrilla 808,196 $6.21 $41.38 Improved cost efficiencies Del Toro 646,669 $16.50 $77.09 expected to be achieved i

  10. Slide 10: Reserves and resources growth

     Silver price reduced to $24/oz for 2013 Reserve calculations  From 2007 to 2013, Reserves have increased by over 370% due to drill bit activity  Completed over 250,000 metres in exploration drilling since 2011 which will result in numerous NI 43-101 updates in 2014/2015 300 300.0 Proven & Probab

  11. Slide 11: Strong Production Growth

    Silver Ounces (M) FIRST MAJESTIC SILVER CORP. STRONG PRODUCTION GROWTH 20 16 ay N © TSX: FR | NYSE: AG | FRANKFURT: FMV Production Target wlll 2006 2007 2010 2011 2012 2013 2014E 201? m@ Plomosas* ma Luz* @ La Guitarra @ Del Toro La Encantada @ La Parrilla San Martin *Pending permits

  12. Slide 12: True Low-Cost Silver Producer

    TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. TRUE LOW-COST SILVER PRODUCER REALIZED SILVER PRICE PER OZ <sus) $40.00 @ Operating Cash Margin Total Cash Cost (Payable Oz) $35.38 $30.00 + $20.00 + $14.66 $14.79 $10.00 + $0.00 + 2008 2009 2010 2011 2012 2013 10

  13. Slide 13: All-In Sustaining Cost Calculation

    2014E All-In Sustaining Cost Calculation (1) Q1’14 (US$/Ag oz) Total Cash Costs per Payable Silver Oz (2) 8.67 - 9.12 9.88 General and Administrative Costs 1.69 - 1.77 1.75 Share-based Payments (non-cash) 0.77 - 0.81 0.93 Accretion and Amortization of Reclamation Costs (non-cash) 0.08 - 0.09 0.07 De

  14. Slide 14: Capital allocation by mine

    Millions of $USD Sustaining Expansionary Mine Capital1 Capital2 Total Del Toro $14 $13 $27 La Encantada $15 $9 $24 La Parrilla $14 $6 $20 Allocation of Capital: San Martin $9 $4 $13 Plant, Property La Guitarra $9 $6 $15 $42 and Equipment Projects - $7 $7 Development $56 Total: $61 $45 $106 Explorati

  15. Slide 15: First Majestic Silver Corp.

    TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP.

  16. Slide 16: Del Toro

    Dual Circuit - Cyanidation/Flotation Mill 2014E Production: 2.75M - 2.90M Ag oz (3.30M - 3.45M Ag Eq oz) Reserves & Resources Proven & Probable: 25.8M Ag oz Measured & Indicated: 11.7M Ag oz Inferred: 38.1M Ag oz First silver doré bars poured in November 2013 • Commercial production through Quarter

  17. Slide 17: La Encantada

    Plant Operations Mill Throughput: 2,300 tpd 2014E Production: 4.15M - 4.35M Ag oz Reserves & Resources Proven & Probable: 37.2M Ag oz Measured & Indicated: 21.9M Ag oz Inferred: 21.8M Ag oz Produces 100% silver doré bars • Expanding underground development to Quarter End increase production to 3,000

  18. Slide 18: La Parrilla

    Plant Operations Mill Throughput: 2,000 tpd 2014E Production: 3.10M - 3.25M Ag oz (4.3M - 4.5M Ag Eq oz) Reserves & Resources Proven & Probable: 23.1M Ag oz Measured & Indicated: 7.9M Ag oz Inferred: 73.4M Ag oz Recently completed mill’s fifth expansion • Connecting the mines with a 5 kilometre Quar

  19. Slide 19: San Martin

    Plant Operations Mill Throughput: 1,300 tpd 2014E Production: 1.75M - 1.85M Ag oz (1.9M - 2.0M Ag Eq oz) Reserves & Resources Proven & Probable: 22.4M Ag oz Measured & Indicated: 3.8M Ag oz Inferred: 57.0M Ag oz In 2013, mill capacity was expanded to 1,300 tpd • Installing tailing filters to recircu

  20. Slide 20: La Guitarra

    Plant Operations Mill Throughput: 500 tpd 2014E Production: 950K – 1.0M Ag oz (1.2M - 1.3M Ag Eq oz) Reserves & Resources Proven & Probable: Measured & Indicated: Under Review Inferred: Permitting for 1,000 tpd cyanidation mill Quarter End Full Year Q1 2014 Q4 2013 Q1 2013 2013 Silver production (oz

  21. Slide 21: First Majestic (AG) vs Silver (SLV)

    FIRST MAJESTIC (AG) VS SILVER (SLV) (5 year chart) AG SLV Source: Yahoo (as of June 30, 2014) 19

  22. Slide 22: Performance 1, 3 and 5 year

    1 Year 3 Year 5 Year Source: Bloomberg (as of June 30, 2014) 20

  23. Slide 23: Research Coverage and institutional holders

    Research Coverage Institution % S/O David Forster - Bank of America Van Eck 5.1% Andrew Kaip - Bank of Montreal Sprott Asset Management 3.9% Graeme Jennings - Cormark Resolute Funds 3.0% Adam Graf - Cowen Fiera Capital 1.9% Mike Parkin - Desjardins Royal Bank of Canada 1.7% Stuart McDougall - Jennin

  24. Slide 24: Our Strategy

    Our Strategy… One Metal One Country Continue to Acquire the Best Talent in Mexico Build through Development and Acquisitions Become a 20 Million Ounce Producer

  25. Slide 25: As we become more reliant on technology, we become more reliant on silver

    “AS WE BECOME MORE RELIANT ON TECHNOLOGY... WE BECOME MORE RELIANT ON SILVER’ FIRST MAJESTIC SILVER CORP. NYSE: AG | TSX: FR

  26. Slide 26: Appendix

    TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. APPENDIX

  27. Slide 27: Peer beta comparison

    1 Year 3 Year 5 Year Silver Standard 1.56 1.09 1.01 First Majestic 1.29 1.13 1.22 Fresnillo 1.29 0.94 0.87 Silver Wheaton 1.23 1.05 1.04 Coeur 1.16 0.97 1.06 Hecla 1.16 0.94 1.05 GDX ETF 1.12 0.81 0.75 Spot Silver 1.00 1.00 1.00 Pan American 0.85 0.75 0.78 Spot Gold 0.56 0.51 0.40 Source: Bloomberg

  28. Slide 28: Total Cash Costs per Ounce - 1Q 2014

    TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. TOTAL CASH COSTS PER OUNCE - 1Q_ 2014 (shown in $USD) $0.15 @ Mining @ Milling @ Indirect @ Transport and other selling costs @ Smelting & Refining © Environmental duty and royalties ™@ By-product Revenues 26

  29. Slide 29: Proven and Probable reserves

    Mine/ProjectCategory Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) Proven (UG) Oxides 1,023,409 316 - 2.9 1.6 10,410,996 10,410,996 Proven (tailings) Oxides 5,304,946 105 - 0.6 0.2 17,903,993 17,903,993 LA ENCANTADA Probable (UG) Oxides 1,030,341 269 - 2.6 1.2 8,916,063 8,916

  30. Slide 30: Measured and Indicated resources

    Mine/projectCategory Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) in situ Measured (UG) Oxides 1,380,065 199 - 1.6 3.3 8,830,896 8,830,896 LA ENCANTADA Indicated (UG) Oxides 1,805,358 225 - 1.6 5.3 13,032,801 13,032,801 Total Measured & Indicated (UG) Oxides 3,185,423 213 -

  31. Slide 31: Inferred resources

    Mine/Project Category Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) in situ LA ENCANTADA Total Inferred (UG) Oxides + Sulphides 4,348,724 156 - 1.1 1.5 21,822,446 21,822,446 Inferred (UG) Oxides 4,928,449 178 0.06 0.4 0.3 28,251,697 28,795,192 LA PARRILLA Inferred (UG) Sulphi

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