First Majestic Silver Corp. · TSX:AG

First Majestic Silver — Investor Presentation (March 2014)

30 slides from First Majestic Silver's investor presentation, March 2014

  1. Slide 1: One Metal, One Country - First Majestic

    ONE METAL, ONE COUNTRY... FIRST MWAESTIC TSX: FR | NYSE: | FRANKFURT: FMV

  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: Pure Silver Producer in Mexico

    Pure Silver Producer (Un-Hedged) 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 Exploration Growth Two advanced stage silver projects in pipeline

  4. Slide 4: Production ounces and market capitalization

    Market Capitalization: US$1.5B Shares Outstanding1: 117.0M (FD 122.7M) Avg. Daily Volume1: 2.2M shares (NYSE ~ 1.4M | TSX ~ 800K) Cash & Cash Equiv1: US$54.8M 4.0 Silver Equivalent Production +2% Production Ounces (Millions) Silver Production +20% +3% 3.0 +7% +16% +5% +5% 2.0 1.0 0.0 Q1'12 Q2'12 Q3'

  5. Slide 5: 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 • Over 4,000 employees • Awarded ‘Socially Responsible Company’ for five con

  6. Slide 6: Q4 and full year 2013 financial results

    Quarter End Full Year (All shown in $USD) Q4 2013 Q3 2013 Q4 2012 2013 Revenue 59.0M 76.9M 71.0M 251.3M Mine Operating Earnings 14.3M 29.2M 39.5M 92.3M Net Earnings after taxes (81.2M) 16.3M 22.4M (38.2M) Earnings per share - Adjusted(1) 0.05 0.22 0.26 0.56 Operating Cash Flows, before movements in

  7. Slide 7: Mines in production and permitting

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

  8. Slide 8: Production and cash costs by mine

    Mine Total Ag Oz Cash Costs/Oz Cash Costs/Tonne Produced ($USD)* ($USD)** Del Toro 550,026 $12.16 $57.56 La Encantada 959,312 $10.61 $37.49 La Parrilla 813,090 $6.45 $35.80 San Martin 280,490 $13.96 $54.07 La Guitarra 143,680 $4.08 $52.87 Total: 2,746,598 $9.66 $42.69 Total Ag Eqv. Oz Produced: 3,42

  9. Slide 9: 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

  10. Slide 10: 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

  11. Slide 11: All-in sustaining cost calculation 2014E

    2014E All-In Sustaining Cost Calculation (1) ($/Ag oz) Total Cash Costs per Payable Silver Oz (2) 8.67 - 9.12 General and Administrative Costs 1.69 - 1.77 Share-based Payments (non-cash) 0.77 - 0.81 Accretion and Amortization of Reclamation Costs (non-cash) 0.08 - 0.09 Development Sustaining Capital

  12. Slide 12: 2014 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/Corporate - $7 $7 Development $56 Total: $61 $45 $106

  13. Slide 13: Operating margin vs debt ratio peer comparison

    Market Cap LOWER DEBT RATIO HIGHER DEBT RATIO "Colored Bubble Size" represents Market Capitalization 35% 30% AG AUY Operating Margin (Rolling 4 Quarter Average) 25% GG 20% PAAS EXK AEM 15% FSM 10% 5% HL SSRI CDE 0% 0% 50% 100% 150% 200% 250% 300% LT Debt to EBITDA (2014E) *Source - Company reports a

  14. Slide 14: First Majestic Silver Corp.

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

  15. Slide 15: Del Toro

    Dual Circuit - Cyanidation/Flotation Mill 2014E Production: 2.75M - 2.90M Ag oz (3.30M - 3.45M Ag Eq oz) Resources: Measured & Indicated: 48.4M Ag oz Inferred: 41.9M Ag oz First silver doré bars poured in November 2013 • Commercial production through Quarter End flotation circuit reached in April 20

  16. Slide 16: Del Toro construction activities

    TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. DEL TORO CONSTRUCTION ACTIVITIES 15

  17. Slide 17: La Encantada

    Plant Operations: Mill Throughput: 3,000 tpd 2014E Production: 4.15M - 4.35M Ag oz Reserves & Resources: Proven & Probable: 39.0M Ag oz Measured & Indicated: 34.5M Ag oz Inferred: 21.6M Ag oz Produces 100% silver doré bars • Increasing mine ore throughput resulting Quarter End in improved grades and

  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: 30.2M Ag oz Measured & Indicated: 17.7M Ag oz Inferred: 73.7M Ag oz Recently completed mill’s fifth expansion Quarter End Full Year • Connecting the mine

  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: 21.6M Ag oz Measured & Indicated: 2.0M Ag oz Inferred: 57.3M Ag oz In 2013, mill capacity was expanded to 1,300 tpd Quarter End • Installing tailing filt

  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 Q4 2013 Q3 2013 Q4 2012 2013 Silver production (

  21. Slide 21: First Majestic vs silver (5 year chart)

    FIRST MAJESTIC VS SILVER (5 year chart) AG SLV 20

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

    1 Year 3 Year 5 Year Source: Bloomberg (as of 12/31/2013) 21

  23. Slide 23: Research coverage and institutional holders

    Research Coverage Institution % S/O David Forster - Bank of America Van Eck 5.6% Andrew Kaip - Bank of Montreal Sprott Asset Management 3.9% Graeme Jennings - Cormark Baring Asset Mgmt 1.9% Adam Graf - Cowen Royal Bank of Canada 1.7% Mike Parkin - Desjardins Oppenheimer Funds 1.5% Chris Lichtenheldt

  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

    FIRST MAJESTIC SILVER CORP. APPENDIX TSX: FR | NYSE: AG | FRANKFURT: FMV 25

  27. Slide 27: Total cash costs per ounce - 4Q 2013

    TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. TOTAL CASH COSTS PER OUNCE - 4Q 2013 $(4.82) $0.04 @ Mining B& Milling @ Indirect ™ Transport and other selling costs @ Smelting & Refining © Royalties ™ By-product Revenues 26

  28. Slide 28: Reserves

    TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. RESERVES Tonnes Ag Ag Contained AgEq Contained Category Mineral Type (Mt) (i) (Moz) (Moz) Proven (UG) Oxides 0.9 339 - - : 10.0 10.0 La Encantada Proven (Tailings) Oxides 6.2 111 - : : 21.9 21.9 Probable (UG) Oxides 0.7 312 - - - 7.1 7.

  29. Slide 29: Measured and indicated resources

    Tonnes Ag Au Pb Zn Ag Contained AgEq Contained Mine Category Mineral Type (Mt) (g/t) (g/t) (%) (%) (Moz) (Moz) Measured Oxides 2.7 186 - - - 16.4 16.4 La Encantada Indicated Oxides 3.2 177 - - - 18.0 18.0 Measured + Indicated (UG) Oxides 5.9 181 - - - 34.5 34.5 Measured + Indicated (UG) Oxides 1.2 1

  30. Slide 30: Inferred resources

    Tonnes Ag Au Pb Zn Ag Contained AgEq Contained Mine Category Mineral Type (Mt) (g/t) (g/t) (%) (%) (Moz) (Moz) La Encantada Inferred Oxides 2.9 233 - - - 21.6 21.6 La Parrilla Inferred Oxides + Sulphides 13.2 173 - 0.7 1.0 73.7 88.4 San Martin Inferred Oxides + Sulphides 11.4 157 - 0.1 0.1 57.3 58.9

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