First Majestic Silver Corp. · TSX:AG

First Majestic Silver — Merger or Acquisition (September 2024)

32 slides from First Majestic Silver's merger presentation, September 2024

  1. Slide 1: Creating the Leading Intermediate Primary Silver Producer

    CREATING THE LEADING INTERMEDIATE PRIMARY SILVER PRODUCER September 2024

  2. Slide 2: Disclaimer: Forward Looking Statements

    DISCLAIMER Forward Looking Statements Certain statements contained herein regarding First Majestic Silver Corp. (“First Majestic” or the “Company”) and Gatos Silver Inc. (“Gatos”) Gatos does business; limitations on insurance coverage; inability to obtain adequate insurance to cover risks and hazard

  3. Slide 3: Disclaimer: Important Information for Investors and Shareholders

    DISCLAIMER Important Information for Investors and Shareholders about the Transaction and Where to Find It This presentation is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securitie

  4. Slide 4: Transaction Highlights

    TRANSACTION HIGHLIGHTS 1 Consolidates three world-class, producing silver mining districts in Mexico under one banner ▪ Cerro Los Gatos, San Dimas and Santa Elena collectively provide the foundation of a diversified, intermediate primary silver producer 2 Enhances production profile with strong marg

  5. Slide 5: Transaction Summary

    TRANSACTION SUMMARY PROPOSED TRANSACTION ▪ First Majestic to acquire all of the issued and outstanding common shares of Gatos ▪ Fixed exchange ratio of 2.550 First Majestic Shares per Gatos Share ▪ Represents an offer price of US$13.49 per Gatos Share, which implies a premium of 16% based on the clo

  6. Slide 6: Pro Forma Capitalization

    PRO FORMA CAPITALIZATION EXCHANGES NYSE / TSX / Frankfurt NYSE / TSX NYSE / TSX / Frankfurt SHARE PRICE (US$) $5.29 $11.62 $5.29 FD ITM SHARES OUTSTANDING (M) 304 72 488 LTM AVG. DAILY TRADING VALUE (US$M) $46 $3 $49 CASH (US$M) $211(1) $114(3) $325 NET CASH (US$M) $(39)(2) $114(3) $75 AVAILABLE LIQ

  7. Slide 7: Transaction Benefits to Shareholders

    TRANSACTION BENEFITS TO SHAREHOLDERS Benefits to First Majestic Shareholders Benefits to Gatos Shareholders Adds a third cornerstone, long-life, low-cost, producing underground Attractive immediate premium of 16% on a spot and 20-day VWAP mine with exploration potential to the First Majestic portfol

  8. Slide 8: High-Quality Assets in the World's Premier Silver Jurisdiction

    HIGH-QUALITY ASSETS IN THE WORLD’S PREMIER SILVER JURISDICTION Producing Assets THREE WORLD-CLASS Cerro Los Gatos (70%) Ag Au Zn Pb Cu Development Assets SILVER MINING DISTRICTS Chihuahua, Mexico WITH A MASSIVE 2024E Production: 13.5 – 15.0 Moz AgEq(1)(2) 2024E AISC: US$14.00 – $16.00 / oz AgEq(2) 3

  9. Slide 9: CLG: A Tier 1 Silver Mine with Robust Exploration Upside

    CLG: A TIER 1 SILVER MINE WITH ROBUST EXPLORATION UPSIDE Asset Key Stats OWNERSHIP ▪ 70% Gatos | 30% Dowa Metals & Mining MINE TYPE ▪ Underground SILVER PURITY ▪ 64%(1) THROUGHPUT ▪ Ramping up to +3,500 tpd ▪ 7 years based on currently defined Reserves with MINE LIFE significant opportunities to ext

  10. Slide 10: CLG: Large Scale, Low-Cost and High-Margin

    CLG: LARGE SCALE, LOW-COST AND HIGH-MARGIN CLG is One of the Largest Primary Silver Mines Globally Comparative Advantages of CLG ▪ High-grade primary silver deposit with 2023A AgEq Production (Moz) 2023A Ag Production (Moz) substantial by-products 23.5 23.3 23.0 21.7 ▪ Deposit geometry and vein widt

  11. Slide 11: CLG: Targeting Sustained Mill Throughput Rates of 3,500 tpd

    CLG: TARGETING SUSTAINED MILL THROUGHPUT RATES OF 3,500 TPD Successful Debottlenecking Continues to Increase Mill Throughput Margin Enhancement (tpd Ore Milled) +8% ▪ Plant regularly achieving ~3,700 tonnes 3,500 per operating day, supporting near-term target of 3,500 tpd milled +30% ▪ Copper separa

  12. Slide 12: CLG: Improved Efficiency Driving Operating Cost Reductions

    CLG: IMPROVED EFFICIENCY DRIVING OPERATING COST REDUCTIONS L3Y Site Unit Costs Are Down ~9% Strong Year-Over-Year AISC Improvement (US$ per tonne milled) (US$/oz AgEq) Mining Plant G&A 9% reduction $120 2021 Avg 2024 Avg $100 $80 $60 $19.05 $14.00 $14.33 $15.51 - $40 $16.00 $20 -- Q1 21 Q2 21 Q3 21

  13. Slide 13: Strong Position Amongst Peers and a Leader in Silver Purity

    STRONG POSITION AMONGST PEERS AND A LEADER IN SILVER PURITY % of Revenue from Silver (2024E)(1) Gross Margins (H1 2024A)(3) Sector leading Top of peer set on silver purity gross margins 53% 43% 51% 40% 43% 37% 41% 33% 30% 31% 21% 11% PF First Majestic First Majestic ecla Coeur Pan American Fortuna F

  14. Slide 14: Significantly Increased Scale and Leading Trading Liquidity

    SIGNIFICANTLY INCREASED SCALE AND LEADING TRADING LIQUIDITY Market Capitalization (US$B)(1) Average Daily Trading Value – LTM (US$M)(2) $80 $6. $4 $46 $3.4 $37 $2.6 $28 $2.1 $26 $1.6 $1.3 Pan American ecla PF First Coeur First Majestic Fortuna Pan American PF First First Majestic ecla Coeur Fortuna

  15. Slide 15: Transaction Highlights

    TRANSACTION HIGHLIGHTS 1 Consolidates three world-class, producing silver mining districts in Mexico under one banner 2 Enhances production profile with strong margins 3 Bolsters free cash flow generation 4 Leverages a highly experienced combined team with a strong track record of value creation in

  16. Slide 16: First Majestic Silver Corp. and Gatos Silver, Inc. contacts

    First Majestic Silver Corp. Gatos Silver, Inc. 1800 - 925 West Georgia Street 910 - 925 West Georgia Street Vancouver, British Columbia, Canada Vancouver, British Columbia, Canada V6C 3L2 V6C 3L2 Email: info@firstmajestic.com Email: info@gatossilver.com Tel: 1.604.688.3033 Tel: 1.604.424.0984 Fax: 1

  17. Slide 17: Appendix

    APPENDIX Jn Wentos FIRST MAJESTIC. aes 16

  18. Slide 18: CLG: Potential for Meaningful Near-Term Organic Growth

    CLG: POTENTIAL FOR MEANINGFUL NEAR-TERM ORGANIC GROWTH Strong Pipeline of Life Extension, Margin Enhancement and Growth Projects LOM Plan and R&R Update on Track for Q3 2024 ▪ Mine life extension(1) from drilling up until end Q1 2024 data cut-off ▪ Mid-term target of 3,500 tpd milling rate ▪ Copper

  19. Slide 19: CLG: $18M Drill Program Focused on Near-Mine & District Targets

    CLG: $18M DRILL PROGRAM FOCUSED ON NEAR-MINE & DISTRICT TARGETS Vast and underexplored land package Executing on organic growth strategy – Delivering Early Results CLG Orebody Extensions SE Deeps Extension ▪ Recent drilling continues to extend limits of mineralization. ▪ Priority is to define limits

  20. Slide 20: Santa Elena Silver-Gold Mine

    SANTA ELENA SILVER-GOLD MINE Asset Key Stats OWNERSHIP ▪ 100% First Majestic MINE TYPE ▪ Underground THROUGHPUT ▪ 2,650 tpd ▪ 9.2 – 9.6 Moz AgEq (1.3M – 1.4 Moz Ag + 94 – 99 2024 GUIDANCE PRODUCTION koz Au) 2024 GUIDANCE AISC ▪ US$15.25 - $15.64/oz AgEq PRODUCES ▪ 100% Doré Production Stats (Actual)

  21. Slide 21: San Dimas Silver-Gold Mine

    SAN DIMAS SILVER-GOLD MINE Asset Key Stats OWNERSHIP ▪ 100% First Majestic MINE TYPE ▪ Underground THROUGHPUT ▪ 2,300 tpd ▪ 9.8 – 10.4 Moz AgEq (5.2 – 5.5 Moz Ag + 56 – 59 koz 2024 GUIDANCE PRODUCTION Au) 2024 GUIDANCE AISC ▪ US$18.69 - $19.45/oz AgEq PRODUCES ▪ 100% Doré Production Stats (Actual) ▪

  22. Slide 22: La Encantada Silver Mine

    LA ENCANTADA SILVER MINE Asset Key Stats OWNERSHIP ▪ 100% First Majestic MINE TYPE ▪ Underground THROUGHPUT ▪ 2,715 tpd 2024 GUIDANCE PRODUCTION ▪ 2.4 – 2.5 Moz AgEq 2024 GUIDANCE AISC ▪ US$26.17 - $27.18/oz AgEq PRODUCES ▪ 100% Doré Production Stats (Actual) ▪ Natural gas generators currently suppl

  23. Slide 23: Jerritt Canyon Gold Mine

    JERRITT CANYON GOLD MINE ▪ Located in Elko County, Nevada, USA ▪ Underground mining operations temporarily suspended in March 2023 ▪ Focused on new regional discoveries across the large 30,821- hectare (119 square mile) land package; ~$10M 2024 exploration budget ▪ Current known Measured & Indicated

  24. Slide 24: First Mint Facility

    FIRST MINT FACILITY ▪ Located in Nevada, USA ▪ Commenced producing bullion in Q1 2024 ▪ Production led by industry veterans with over 20 years of experience working at two of the largest mints in North America ▪ High efficiency production allows the mint to produce over 10% of the Company’s producti

  25. Slide 25: Gatos: Mineral Reserves – CLG

    GATOS: MINERAL RESERVES – CLG (AS AT JULY 1, 2023) Tonnage Grades Metal Content Category (100% Basis) Mt Ag (g/t) Zn (%) Pb (%) Au (g/t) Cu (%) Ag (Moz) Zn (Mlbs) Pb (Mlbs) Au (koz) Cu (Mlbs) Proven 3.46 317 4.39 2.17 0.31 0.09 35.3 335.0 165.7 34.7 6.9 Probable 4.62 141 4.27 2.23 0.20 0.19 21.0 435

  26. Slide 26: Gatos: Mineral Resources – CLG

    GATOS: MINERAL RESOURCES – CLG (AS AT JULY 1, 2023) Tonnage Grades Metal Content Category (100% Basis) Mt Ag (g/t) Zn (%) Pb (%) Au (g/t) Cu (%) Ag (Moz) Zn (Mlbs) Pb (Mlbs) Au (koz) Cu (Mlbs) Measured 0.05 141 2.50 1.70 0.40 0.05 0.2 2.9 2.0 0.7 0.1 Indicated 0.34 85 3.71 1.90 0.23 0.15 0.9 28.1 14

  27. Slide 27: Gatos: Mineral Resources – Esther

    GATOS: MINERAL RESOURCES – ESTHER (AS AT JULY 1, 2023) Tonnage Grades Metal Content Category (100% Basis) Mt Ag (g/t) Zn (%) Pb (%) Au (g/t) Cu (%) Ag (Moz) Zn (Mlbs) Pb (Mlbs) Au (koz) Cu (Mlbs) Indicated 0.28 122 2.17 4.30 0.14 -- 1.1 13.6 26.8 1.2 -- Inferred 1.20 133 1.53 3.69 0.09 -- 5.1 40.6 9

  28. Slide 28: First Majestic: Mineral Reserves – Core Assets

    FIRST MAJESTIC: MINERAL RESERVES – CORE ASSETS Tonnage Grades Metal Content Mine Category Mineral Type Mt Ag (g/t) Au (g/t) Ag (Moz) Au (koz) San Dimas Proven (UG) Sulphides 2.0 265 3.47 16.8 220.0 Probable (UG) Sulphides 1.7 254 2.69 13.6 144.0 Proven & Probable (UG) Sulphides 3.6 260 3.11 30.4 364

  29. Slide 29: First Majestic: Mineral Resources – Core Assets

    FIRST MAJESTIC: MINERAL RESOURCES – CORE ASSETS Tonnage Grades Metal Content Mine Category Mineral Type Mt Ag (g/t) Au (g/t) Ag (Moz) Au (koz) San Dimas Measured (UG) Sulphides 2.1 449 5.92 30.6 404.0 Indicated (UG) Sulphides 1.8 353 3.80 20.7 223.0 Measured & Indicated (UG) Sulphides 3.9 405 4.94 5

  30. Slide 30: First Majestic: Mineral Resources – Core Assets (Continued)

    FIRST MAJESTIC: MINERAL RESOURCES – CORE ASSETS (CONTINUED) Tonnage Grades Metal Content Mine Category Mineral Type Mt Ag (g/t) Au (g/t) Ag (Moz) Au (koz) San Dimas Inferred (UG) Sulphides 4.0 306 3.67 39.0 467.0 Inferred (UG) Sulphides 4.0 306 3.67 39.0 467.0 Santa Elena Inferred Ermitaño (UG) Sulp

  31. Slide 31: First Majestic: Mineral Resources – Non-Core Assets

    FIRST MAJESTIC: MINERAL RESOURCES – NON-CORE ASSETS Tonnage Grades Metal Content Mine Category Mineral Type Mt Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Moz) Au (koz) Pb (Mlbs) Zn (Mlbs) San Martin Measured (UG) Oxides 0.1 221 0.40 -- -- 0.5 1.0 -- -- Indicated (UG) Oxides 1.0 277 0.53 -- -- 8.5 16.0 -- -

  32. Slide 32: First Majestic: Notes to Mineral Reserves & Resources

    FIRST MAJESTIC: NOTES TO MINERAL RESERVES & RESOURCES Notes to the Mineral Reserve Estimates – Core Assets: (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,

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