First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (April 2023)
36 slides from First Majestic Silver's investor presentation, April 2023
Slide 1: Corporate Presentation
RampaE FIRST MAJESTIC SILVER corr. Ermitafio - ‘SS a FIRST MAJESTI SLLV E.R -Ge@sRS CORPORATE PRESENTATION 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 ~1.2B ounces compared to annual mine production of ~ 830M ounces • 82% of annual silver supply is sourced from mining, 18% is sourced from recycling • Silver is one of the world’s most reflective and best conductors of electricity • 47% of silver consumption is from in
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: Silver demand for solar panels and carports
• Solar carports are one of the most viable options for refueling EV’s • Currently in use at a number of Walmarts, Federal & State offices and colleges across Annual Silver Demand for Photovoltaic Solar Panels the United States • US Department of Energy’s National Renewable Energy Laboratory (NRLE)
Slide 6: Everyday Silver Applications
EVERYDAY SILVER APPLICATIONS JX, in YouTube =F fle ' aT 6 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 ~51% of revenue from Silver (49% Gold) North American Assets Mexico and Nevada – Two premier mining jurisdictions Multi-Asset Producer Three doré-producing mines in Mexico Large Land Package Over 380,000 hectares of mining claims
Slide 9: Leadership, employees and ESG practices
• Top 16 members of our Senior Leadership Team have over 410 years of mining and management experience • Over 4,600 direct employees (+25,000 indirect) • Our Mexican operations have been recognized for the 15th consecutive year as Socially Responsible by Centro Mexicano Para La Filantropia and Empre
Slide 10: Production by Asset
IN PRODUCTION PRODUCTION BY ASSET 1 San Dimas 2 Santa Elena 3 La Encantada Q4’22: 82% of PROJECTS production had AISC cost of 4 La Parrilla 5 Del Toro $15.63/oz 6 San Martin 7 Jerritt Canyon San Dimas Silver/Gold Mine Santa Elena Silver/Gold Mine La Encantada Silver Mine Jerritt Canyon Gold Mine 10
Slide 11: Strong Production Growth
STRONG PRODUCTION GROWTH AM. Pending Guidance 40 > ___ silver Ounces Only Update 35 4 = 30 4 3 £ 25 4 6 s 207 a “4s 4 o = 10 4 5 4 oJ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E e F eS a a ana fF SS se & a ae Sees ss s & 3 se FS € & és y ad ¥ Sf 11 FIRSTMAJESTIC.COM TSX|FR NYSE|AG F
Slide 12: Pending Guidance Update
Silver Oz (M) Gold Oz (k) Silver Eqv Oz (M) Cash Cost AISC Silver: ($ per AgEq oz) ($ per AgEq oz) San Dimas, Mexico 6.4 – 7.2 72 – 81 12.5 – 14.0 9.62 – 10.19 13.02 – 13.91 Santa Elena, Mexico 0.7 – 0.7 86 – 95 7.8 – 8.7 11.59 – 12.21 14.60 – 15.53 La Encantada, Mexico 2.9 – 3.2 – 2.9 – 3.2 16.73 –
Slide 13: 2023E Capex Breakdown
Pending Updated Guidance 2023E Capex Breakdown Budget U/G Development $95M Exploration $40M PP&E $45M Corporate Projects $8M Expansionary $110M Jerritt Canyon represented ~45%, or $85 million, of + the 2023 Capital Budget which is now significantly reduced following the temporary suspension Sustaini
Slide 14: San Dimas 2023E Operational Guidance
2023E Operational Guidance Our lowest cost and Mill Throughput: 2,200 tpd largest producing mine 2023E Production: 12.5M – 14.0M AgEq oz (6.4M – 7.2M Ag oz + 72K – 81K Au oz) 2023E AISC: $13.02 – $13.91 Produces: 100% Doré Quarter End Full Year Q4 2022 Q3 2022 Q4 2021 2022 Silver production (oz) 1,3
Slide 15: San Dimas district
• First reported mining in the San Dimas district in 1757 – over 250 years ago • Considered to be one of the most significant precious metal mining districts in Mexico • Historic district production estimated at 11.1M Au oz & 756M Ag oz • Over 500 km of underground development Processing Mill Curren
Slide 16: San Dimas exploration
*AgEq g/t= Ag g/t + (Au g/t*80) *For a summary of significant intercepts see slide 35 *For a summary of significant intercepts see slide 38
Slide 17: Santa Elena 2023E Operational Guidance
2023E Operational Guidance Mill Throughput: 2,500 tpd 2023E Production: 7.8M – 8.7M AgEq oz (86K – 95K Au oz + 0.7M Ag oz) 2023E AISC: $14.60 – $15.53 Produces: 100% Doré Quarter End Full Year Q4 2022 Q3 2022 Q4 2021 2022 Silver production (oz) 199,388 308,070 426,870 1,229,612 • Latin America’s fir
Slide 18: 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: 38.2M AgEq oz @ 468 g/t AgEq M&I: 52.0M AgEq oz @ 564g/t AgEq Inferred: 41.2M AgEq oz @ 449 g/t AgEq • New discovery made at Erm
Slide 19: Planning to drill ~20,000 metres in 2023
Planning to drill ~20,000 metres in 2023 to infill and upgrade Resources *Significant defined as intercept length>1.5m and grade>140 g/t AgEq *For a summary of significant intercepts see slide 35
Slide 20: Reserves & Resources as of Dec 31, 2022
Reserves & Resources as of Dec 31, 2022 Tonnes Ag Au Ag-Eq Ag Au Ag-Eq Category (k) (g/t) (g/t) (g/t) (M oz) (k oz) (M oz) Proven 2,539 56 3.36 468 4.6 274 38.2 & Probable Measured 2,855 63 4.02 564 5.8 369 52.0 & Indicated Inferred 2,851 84 2.93 449 7.7 269 41.2 Measured & Indicated Resources are i
Slide 21: La Encantada 2023E Operational Guidance
2023E Operational Guidance Mill Throughput: 2,800 tpd 2023E Production: 2.9M – 3.2M Ag oz 2023E AISC: $19.86 – $21.14 Produces: 100% Doré Quarter End Full Year Q4 2022 Q3 2022 Q4 2021 2022 Silver production (oz) 804,802 779,028 757,586 3,091,349 • Natural gas generators currently supplying 90% of po
Slide 22: Jerritt Canyon
• Located in Elko County, NV • Underground mining operations temporarily suspended in March 2023 • Processing of ~45,000 tonnes of aboveground stockpiled ore to be completed in Q2 2023 • Currently exploring for new regional discoveries across the large 30,821 hectare (119 square miles) land package
Slide 23: Regional Potential at Jerritt Canyon
REGIONAL POTENTIAL AT JERRITT CANYON Sen a Se Winters Creek: Vector off 13.7m of 11.0 g/t Au 3 Murray to West Gen: Expand on estimated 70,000 Oz Au resource Bidart: Vector off 6.1m of 3.26 g/t Au Murray: 1.25M ounces Au mined. Open for exploration West and South Lost Mine: Vector off 13.7m of 2.85 g
Slide 24: Catalysts for 2023
• Production ramp-up at Santa Elena’s Ermitaño Mine in 2023 to 2,500 tpd • Continued Resource expansion potential at Santa Elena’s Ermitaño Mine – Luna & Soledad • Higher silver grades from production ramp up at the Perez Vein in San Dimas • Ongoing exploration, mine plan optimization and processing
Slide 25: Capital Structure and Top Shareholders
Capital Structure: Top Shareholders: % S/O Market Capitalization: $2.0B Shares Outstanding: 274M (FD 288M) 3M Avg. Daily Volume (NYSE&TSX): 9.0M Shares ~$66M daily liquidity Cash + Restricted Cash: $151.4M + $125.2M = $276.6M Share Price: $7.25 52 Week Low/High: $5.53 / $14.59 Convertible Debt @ 0.3
Slide 26: 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 Q4 2022 cash dividend of $0.0054 per share will be paid to holders of record of First Majestic as of the close of business on March 10, 2023 and will be d
Slide 27: 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 28: La Parrilla, Del Toro and San Martin
La Parrilla Del Toro San Martin Silver Mine Silver Mine Silver Mine Transaction Pending • Located in Jalisco, Mexico • Located in Durango, Mexico • Located in Zacatecas, Mexico • 100% Silver/Gold doré producer • Dual-circuit processing facility consisting of a • Property consists of 70 mining claims
Slide 29: 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 30: 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 31: Proven and Probable Mineral Reserve Estimates
PROVEN AND PROBABLE MINERAL RESERVE ESTIMATES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2022 (1) Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves, whose definitions
Slide 32: Measured and Indicated Mineral Resource Estimates
MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES, WITH AN EFFECTIVE OF DECEMBER 31, 2022 (1) Mineral Resource estimates have been classified in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resourc
Slide 33: Inferred Mineral Resource Estimates
INFERRED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2022 (1) Mineral Resource estimates have been classified in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Min
Slide 34: Non-Material Properties Resource Estimates
MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES FOR THE NON-MATERIAL PROPERTIES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020 Mine / Project Mineral Type Tonnage Grades Metal Content (1) Mineral Resource estimates have been classified in accordance with the 2014 Canadian Institute of Category / Area
Slide 35: Significant Intercept Tables
Appendix A – San Dimas (Perez Vein) Significant Intercept Table Appendix B – Ermitaño Significant Intercept Table ➢ Gold intercepts at San Dimas are calculated using weighted averages, uncapped sample assays, a 140 g/t AgEq cut-off grade and a minimum length of 1.0m. A maximum one and a half meters
Slide 36: 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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