First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (August 2022)
39 slides from First Majestic Silver's investor presentation, August 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 market facts and demand
• Annual silver consumption is ~1.1B 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 • 52% 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: 2022 production guidance
17.6M to 19.6M 14.9M H1’22 H2’22 E 10
Slide 11: 2022 cost guidance and assumptions
*Certain amounts shown may not add exactly to the total amount due to rounding differences. *Cash Costs and AISC are non-GAAP measures. Consolidated AISC includes Corporate General & Administrative cost estimates and non-cash costs of $1.44 to $1.52 per payable silver equivalent ounce. *Metal price
Slide 12: 2022E Capex Breakdown
2022E Capex Breakdown: $90M – U/G Development $36M – Exploration $44M – PP&E $29M – Corporate Projects Expansionary $115M + Sustaining $84M 12
Slide 13: Active drill rigs and grades
30 Drill rigs currently active across the Company # Drill Rigs Surface Underground San Dimas 1 10 Jerritt Canyon 1 10 Santa Elena 4 2 Avg. La Encantada 1 1 Grade (AgEq 240 217 204 208 306 320 484 419 TBA g/t): 13
Slide 14: Jerritt Canyon Gold Mine
• Located in Elko County, Nevada N • Deposit discovered in 1972 and has been in production since 1981 • Produced over 10.0 Moz gold in 40-year production Processing West history Plant, offices Generator and TSF • Production currently comes from three underground areas (SSX, Smith and West Generator)
Slide 15: Jerritt Canyon 2022E Operational Highlights
2022E Operational Highlights Mill Throughput: 2,500 tpd 2022E Production: 96,000 – 103,000 Au oz (8.0M – 8.6M AgEq oz) 2022E AISC: $2,012 - $2,103 Produces: 100% Doré Quarter End Full Year Q2 2022 Q1 2022 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: Jerritt Canyon exploration drilling plan
Approximately 135,000 metres of exploration drilling planned to test over 25 high-priority targets East and West Roasters 18
Slide 19: San Dimas 2022E Operational Highlights
2022E Operational Highlights Our lowest cost and Mill Throughput: 2,200 tpd largest producing mine 2022E Production: 6.6M – 7.0M Ag oz (12.8M – 13.6M AgEq oz) 2022E AISC: $12.46 – $12.98 Produces: 100% Doré Quarter End Full Year Q2 2022 Q1 2022 Q2 2021 2021 Silver production (oz) 1,527,465 1,632,117
Slide 20: 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 production estimated at 11M Au oz & Current 580M Ag oz mining areas • Over 500 km of underground development Tayoltita Po
Slide 21: La Encantada 2022E Operational Highlights
2022E Operational Highlights Mill Throughput: 2,900 tpd 2022E Production: 3.0M – 3.2M Ag oz 2022E AISC: $18.51 – $19.16 Produces: 100% Doré Quarter End Full Year Q2 2022 Q1 2022 Q2 2021 2021 • Natural gas generators currently supplying 90% of power Silver production (oz) 863,510 644,009 840,541 3,24
Slide 22: Santa Elena 2022E Operational Highlights
2022E Operational Highlights Mill Throughput: 2,500 tpd 2022E Production: 1.6M – 1.7M Ag oz (8.7M – 9.2M AgEq oz) 2022E AISC: $13.50 – $14.05 Produces: 100% Doré Quarter End Full Year Q2 2022 Q1 2022 Q2 2021 2021 Silver production (oz) 384,953 337,201 565,453 1,954,492 • Latin America’s first succes
Slide 23: 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 24: 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 25: Ermitaño drilling plan
• Planning to drill ~23,000 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 25
Slide 26: Energy Sources at Our MEX Operations
Energy Sources at Our MEX Operations • Over the last five years, the Company has focused on reducing 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 liquefi
Slide 27: Upcoming catalysts
• 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 • Restarting the Saval II & Murray underground mines at Jerritt Canyon with incr
Slide 28: Capital Structure and Top Shareholders
Capital Structure: Top Shareholders: % S/O Market Capitalization: $2.0B Van Eck (GDXJ & GDX) 10.0% ETF Managers Group 4.2% Shares Outstanding: 263M (FD 276M) Eric Sprott 4.1% 3M Avg. Daily Volume (NYSE &TSX): 7.7M Shares ~$61M The Vanguard Group 2.8% BlackRock Asset Management 2.0% Cash: $117.7M Jup
Slide 29: Reported short interest
Source: Bloomberg (NYSE & TSX reported short interest) 29
Slide 30: 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 Q2 2022 cash dividend of $0.0061 per share will be paid to holders of record of First Majestic as of the close of business on August 16, 2022 and will be
Slide 31: 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 32: Other Mexican silver mines
Del Toro San Martin La Guitarra La Parrilla Silver Mine Silver Mine Silver Mine Silver Mine Transaction Pending • 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 • Prope
Slide 33: San Dimas tax and silver purchase agreement 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 34: 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 35: Proven and Probable Mineral Reserve Estimates
PROVEN AND PROBABLE MINERAL RESERVE ESTIMATES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2021 (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 36: Measured and Indicated Mineral Resources, Material Properties
MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES, WITH AN EFFECTIVE OF DECEMBER 31, 2021 (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 37: Inferred Mineral Resources, Material Properties
INFERRED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2021 (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 38: Measured and Indicated Resources, Non-Material Properties
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 Category / Area k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq
Slide 39: 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 39
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