First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (August 2024)
32 slides from First Majestic Silver's investor presentation, August 2024
Slide 1: Corporate Presentation August 2024
Corporate Presentation August 2024 TSX | AG NYSE | AG FSE | FMV
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTIONARY DISCLAIMER Certain statements contained herein regarding First Majestic Silver Corp. (the “Company”) and and mining (including environmental hazards, industrial accidents, unusual or unexpected its operations constitute “forward-looking statements” within the me
Slide 3: Silver Basics
Silver Basics Silver is critical due to Mine Mined Silver Production Vs. Production Silver Demand its unique properties, Current silver to gold 1300 making substitution mine supply ratio 7:1 nearly impossible 1100 900 82% of forecasted annual Silver Silver is the single silver supply is sourced Silv
Slide 4: To Go Green, We Need Silver
To Go Green, We Need Silver • Silver is the best-known electrical conductor, best metallic Photovoltaic and Electric Vehicle Silver Demand thermal conductor, and has the highest known reflectivity of any raw material. 400 • These qualities make silver an irreplicable in applications where quality is
Slide 5: First Majestic Silver
First Majestic Silver ABOUT THE COMPANY Multi Leverage Asset Goal to Silver Producer ~50% of revenue from Three doré-producing Become the World’s largest Silver (50% Gold) underground mines in Mexico primary silver producer North First Mint American Bullion Assets Producer >245,000 Ha of mining Own
Slide 6: ESG Score Performance
ESG Score Performance Sustainalytics • ESG Risk Rating improved by 39% year over year. Sustainalytics Measure of risk • As of Q2 2024 our score of 30.1 is in the top 37% High industry performance. Medium S&P Global Low • 2023 Corporate Sustainability Assessment ESG score improved to 31, above the Me
Slide 7: North American Assets
North American Assets Q2 PRODUCTION: 5.3M Ag Eq IN PRODUCTION 1 San Dimas 11% 2 5 2 Santa Elena Nevada - USA 3 Elko 3 La Encantada 40% 1 4 First Mint Facility 6 Durango PROJECTS 7 4 Las Vegas 5 Jerritt Canyon 49% Mexico City 6 San Martin Mexico 7 Del Toro San Dimas Santa Elena La Encantada TSX | AG
Slide 8: Updated 2024 Guidance
Updated 2024 Guidance Silver Oz (M) Gold Oz (k) Silver Eqv Oz (M) Cash Cost AISC Silver Operations: ($ per AgEq oz) ($ per AgEq oz) Santa Elena, Mexico 1.3 – 1.4 94 – 99 9.2 – 9.6 12.45 – 12.73 15.25 – 15.64 San Dimas, Mexico 5.2 – 5.5 56 – 59 9.8 – 10.4 14.17– 14.69 18.69 – 19.45 La Encantada, Mexi
Slide 9: Capital Expenditures (USD $M)
Capital Investments First Majestic’s Capital Expenditures 2024E Capex Breakdown Budget $250 $230 $220 U/G Development $74M Capital Expenditures (USD $M) $200 Exploration $37M PP&E $22M $141 Corporate Projects $3M $150 $136 $124 $125 TOTAL $136M Expansionary $107 $86M $100 + $50 Sustaining $50M $0 20
Slide 10: First Mint
First Mint FIRST, WE MINE. THEN WE MINT. • Located in Nevada, United States. • 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
Slide 11: Santa Elena Silver / Gold Mine
Santa Elena Silver / Gold Mine 2024E Operational Guidance Mill Throughput: 2,650 tpd 9.2M – 9.6M AgEq oz Production: (1.3M – 1.4M Ag oz + 94K - 99K Au oz ) AISC: $15.25 – $15.64 Produces: 100% Doré QUARTER END Full Year 2023 Q2 2024 Q1 2024 Q2 2023 Silver production (oz) 376,947 355,205 142,037 1,17
Slide 12: Santa Elena Regional Potential
Santa Elena Regional Potential Exploration Upside • Large land package of • Currently drilling multiple mining claims covering prospective veins within a Las Chispas 102,244 hectares. 10Km radius of the processing plant and • New discovery made at drilling at Los Hernandez. P&P: 38.2M AgEq oz @ 468
Slide 13: Mineralization Open to the East
Mineralization Open to the East DRILLING ~22,000 METRES IN 2024 TO TEST LOWER LIMITS OF RESOURCE AT SPLAY AND LUNA Splay Ermitaño Central Ermitaño Ermitaño-Luna E OPEN LEGEND 2023 Resources 2024 Holes Measured Resource Indicated Resource Significant Inferred Resource Intercept * Fault No Significant
Slide 14: San Dimas Silver / Gold Mine
San Dimas Silver / Gold Mine 2024E Operational Guidance Mill Throughput: 2,300 tpd 9.8M – 10.4M AgEq oz Production: (5.2M – 5.5M Ag oz + 56K – 59K Au oz) AISC: $18.69 – $19.45 Produces: 100% Doré QUARTER END Full Year 2023 Q2 2024 Q1 2024 Q2 2023 • Over 50% of the power requirements provided by Silv
Slide 15: San Dimas Regional Map
San Dimas Regional Map • First reported mining in the • Considered to be one of the 2024 Exploration Highlights: • PE24_309: 10.87 g/t Au and 1,034 g/t San Dimas district in 1757 – most significant precious Ag over 7.88m over 250 years ago. metal mining districts in • SIN24_092: 39.28 g/t Au and 1,9
Slide 16: La Encantada Silver Mine
La Encantada Silver Mine 2024E Operational Guidance Mill Throughput: 2,300 tpd Production: 2.4M – 2.5M Ag oz AISC: $26.17 – $27.18 Produces: 100% Doré QUARTER END Full Year 2023 Q2 2024 Q1 2024 Q2 2023 Silver production (oz) 585,329 456,179 800,543 2,718,856 • Natural gas generators currently supply
Slide 17: Jerritt Canyon
Jerritt Canyon • Located in Elko County, Nevada, U.S.A. • 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 reso
Slide 18: Future Exploration Will Focus Below the Upper Plate
Future Exploration Will Focus Below the Upper Plate Geologic Map All Drilling >3 g/t Au Drill Collars • Detailed surface mapping and rock chip sampling (2023). • Geophysics: • Seismic 2023. • Induced Polarization 2024. • Drilling (2024). Only ~15% of Jerritt Canyon’s claims have been explored to dat
Slide 19: Future Catalysts
Future Catalysts • Ongoing exploration activities, mine plan optimization and processing plant improvements planned at Jerritt Canyon. • Continued improvements in metallurgical recoveries through implementation of fine grinding and other R&D. • Over 210,000 m of exploration planned in 2024 - West, C
Slide 20: Financial Strength
Financial Strength Available Liquidity • $269.7M cash on hand, including $117.5M of Restricted Cash. • Total Working Capital of $229.9M inclusive of $58.4M of Marketable Securities, including: • An 5% interest in Metalla Royalty & Streaming; Revolving • A 45% interest in Sierra Madre Gold & Silver;
Slide 21: Shareholder Information
Shareholder Information Capital Structure Research Coverage Market Capitalization: $1.93B USD / $2.64 CDN Bank of Montreal Scotiabank Shares Outstanding: 298M (FD 308M) Cormark Securities Toronto Dominion 3M Avg. Daily Volume (NYSE & TSX): 10.2M Shares ~$60M daily liquidity H.C. Wainwright National
Slide 22: Dividend Policy
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 2024 cash dividend of $0.0046 per share will be paid to holders of record of First Majestic as of the close of business on August 16, 2
Slide 23: Ten Rules Of Silver
Ten Rules Of Silver 1. Silver is real money 6. Silver inventories are falling 2. Physical silver is a hard asset 7. Industrial use is growing 3. Silver is relatively inexpensive 8. New supply is falling 4. Silver isn’t just cheaper to buy, but it can be more practical when you need 9. World demand i
Slide 24: Non-Core Assets
Non-Core Assets Del Toro Silver Mine San Martin Silver Mine • Located in Zacatecas, Mexico. • Located in Jalisco, Mexico. • Property consists of 70 mining claims • 100% Silver/Gold doré producer. covering 2,159 hectares. • Property consists of 33 mining claims • 1,000 tpd flotation circuit capable o
Slide 25: Mexico Tax Dispute
Mexico Tax Dispute • The Company has brought two arbitration proceedings against Mexico under Chapter 11 of the North American Free Trade Agreement (“NAFTA”) for violating its international law obligations. • The first proceeding commenced in August 2021 and relates to a September 2020 decision by t
Slide 26: Springpole Silver Stream
Springpole Silver Stream • In July 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
Slide 27: Reserves
Reserves PROVEN AND PROBABLE MINERAL RESERVE ESTIMATES, WITH AN EFFECTIVE DATE OF DECEMBER 31, 2023 1. Mineral Reserves have been classified in accordance with the Canadian Mine Mineral Tonnage Grades Metal Content Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral
Slide 28: Resources
Resources MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES, WITH AN EFFECTIVE OF DECEMBER 31, 2023 Mine / Project Mineral Tonnage Grades Metal Content 1. Mineral Resource estimates have been classified in accordance with the CIM Definition Standards on Mineral Resources
Slide 29: Resources
Resources INFERRED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES, WITH AN EFFECTIVE OF DECEMBER 31, 2023 Mine / Project Mineral Tonnage Grades Metal Content 1. Mineral Resource estimates have been classified in accordance Category / Area Type k tonnes Ag (g/t) Au (g/t) Ag-Eq (g/t) Ag (k Oz)
Slide 30: Non-Core Resources
Non-Core Resources MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES FOR THE NON-MATERIAL PROPERTIES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020 Mine / Project Mineral Tonnage Grades Metal Content Category / Area Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Au (k Oz) Pb (M lb)
Slide 31: Non-Core Resources
Non-Core Resources INFERRED MINERAL RESOURCE ESTIMATES FOR THE NON-MATERIAL PROPERTIES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020 Mine / Project Mineral Tonnage Grades Metal Content Category / Area Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Au (k Oz) Pb (M lb) Zn (M lb) Ag-
Slide 32: First Majestic Silver Corp.
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: customersupport@firstmajestic.com Email: customersupport@firstmint.com
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