First Majestic Silver Corp. · TSX:AG

First Majestic Silver — Investor Presentation (September 2015)

34 slides from First Majestic Silver's investor presentation, September 2015

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

    FIRST MAJESTIC SILVER CORP. TSX: FR | NYSE: AG | FWB: FMV | BMV:AG ONE METAL, ONE COUNTRY...

  2. Slide 2: Forward-looking statements

    2 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 statemen

  3. Slide 3: Pure Silver Producer in Mexico

    3 Pure Silver Producer 77% Ag in 2014 (5% Au, 13% Pb, 5% Zn) One Country: Mexico World’s largest silver producing country Five producing silver mines; 100% owned Multi-Asset Producer Projecting 11.8M – 13.2M Ag oz in 2015 Future Growth Two advanced stage silver projects Goal Achieve annual productio

  4. Slide 4: Production ounces and market capitalization

    4 Market Capitalization: US$400M Shares Outstanding: 122.2M (FD 130.6M) Avg. Daily Volume: 3.0M shares ~ US$11M in daily liquidity Cash & Cash Equiv1: US$37.7M Production Ounces (Millions) 1) As of quarter end, June 30, 2015

  5. Slide 5: Broad depth of people

    5 BROAD DEPTH OF PEOPLE • 100% Mexican operating talent - No Expats • Internally design, develop and construct 100% of our silver projects • ~ 3,500 direct employees • Awarded ‘Socially Responsible Company’ for seven consecutive years, 2008 to 2014, from the Centro Mexicano para la Filantropia (CEME

  6. Slide 6: Quarterly financial highlights

    6 Quarter End Full Year (All shown in $USD) Q2 2015 Q1 2015 Q2 2014 2014 Revenue 54.2M 54.6M 66.9M 245.5M Mine Operating Earnings 3.4M 5.0M 9.5M 30.2M Net Earnings after taxes (2.6M) (1.1M) 7.6M (61.4M) Earnings per share - Adjusted1 (0.03) 0.00 0.02 0.07 Operating Cash Flows, before movements in WC

  7. Slide 7: Mine and project locations in Mexico

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

  8. Slide 8: Silver reserves have increased over 115% since 2010

    8 Silver Reserves have increased by over 115% since 2010 Silver Ounces (M) Silver Price Ag Grade (g/t): 223 163 166 174 211 Also produced 44.4M oz of silver over this period

  9. Slide 9: Strong production growth

    NYSE: AG FWB: FMV. BMV: AG STRONG PRODUCTION GROWTH @ Plomosas* 15 mila Luz* Silver Ounces (Millions) @ La Guitarra 10 @ Del Toro 4 La Encantada @ La Parrilla J UJ J mSan Martin rd *Pending permits FIRST MAJESTIC SILVER CORP, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E 3-5 Year Goal

  10. Slide 10: Lowest capital investment in five years

    10 Lowest capital investment in five years following aggressive growth period (Growth was funded by reinvesting operating profits; non-dilutive growth!)

  11. Slide 11: Production and AISC by mine

    11 AISC/Oz Mine Ag Oz (M) Ag Eqv. Oz (M) ($USD) La Encantada 1.1 1.2 $18.09 La Parrilla 1.2 2.1 $13.55 71% of silver production had a Del Toro 1.5 2.5 $7.13 weighted AISC San Martin 1.2 1.4 $9.17 average of $9.77/oz. La Guitarra 0.4 0.6 $15.35 Total: 5.5 7.7 $14.18 *Metal price assumptions for calcu

  12. Slide 12: 2015E AISC guidance

    12 Excluding non-cash items: 2015E AISC $13.50 - $14.96 1) AISC is a non-GAAP measure and was calculated based on guidance provided by the World Gold Council (“WGC”)

  13. Slide 13: First Majestic

    13 FIRST MAJESTIC

  14. Slide 14: La Encantada plant operations

    14 Plant Operations Mill Throughput: 2,000 tpd 2015E Production: 2.6 – 2.9M Ag oz (3.7 – 4.2M Ag Eq oz) Reserves & Resources Proven & Probable: 24.7M Ag oz Measured & Indicated: 27.4M Ag oz Inferred: 32.5M Ag oz *M&I Resources are inclusive of Reserves Quarter End • Connected to National Power Grid

  15. Slide 15: La Parrilla plant operations

    15 Plant Operations Mill Throughput: 3,000 tpd 2015E Production: 4.0 – 4.5M Ag oz Reserves & Resources Proven & Probable: 28.4M Ag oz Measured & Indicated: 33.5M Ag oz Inferred: 30.6M Ag oz *M&I Resources are inclusive of Reserves Quarter End Full Year • New 12’ X 14’ ball mill installed to Q2 2015

  16. Slide 16: Del Toro plant operations

    16 Plant Operations Mill Throughput: 2,000 tpd 2015E Production: 2.6 – 2.9M Ag oz (4.3 – 4.8M Ag Eq oz) Reserves & Resources Proven & Probable: 20.4M Ag oz Measured & Indicated: 23.9M Ag oz Inferred: 64.2M Ag oz *M&I Resources are inclusive of Reserves • Connecting the mines with an Quarter End Full

  17. Slide 17: San Martin plant operations

    17 Plant Operations Mill Throughput: 1,300 tpd 2015E Production: 1.8 – 2.0M Ag oz (2.1 – 2.3M Ag Eq oz) Reserves & Resources Proven & Probable: 18.3M Ag oz Measured & Indicated: 23.0M Ag oz Inferred: 38.5M Ag oz *M&I Resources are inclusive of Reserves • Increasing silver production and Quarter End

  18. Slide 18: La Guitarra plant operations

    18 Plant Operations Mill Throughput: 500 tpd 2015E Production: 0.8 – 0.9M Ag oz (1.2 – 1.3M Ag Eq oz) Reserves & Resources Proven & Probable: 9.4M Ag oz Measured & Indicated: 11.7M Ag oz Inferred: 4.7M Ag oz *M&I Resources are inclusive of Reserves Quarter End Full Year Q2 2015 Q1 2015 Q2 2014 2014

  19. Slide 19: SilverCrest acquisition

    19 • As announced on July 27, 2015, the Company entered into a definitive agreement ("Arrangement") with SilverCrest whereby First Majestic will acquire all of the issued and outstanding shares of SilverCrest for consideration of 0.2769 common shares of First Majestic plus CAD$0.0001 in cash. • This

  20. Slide 20: First Majestic 5-year share chart

    20 FIRST MAJESTIC (AG) (5 year chart) % AG Spot Silver GDX Source: Bloomberg

  21. Slide 21: Revenue forecasts

    21 1) Revenue forecasts calculated using metal price assumptions of US$1,200/oz gold, US$17.00/oz silver, US$3.00/lb copper, US$0.95/lb lead and US$1.10/lb zinc. 2) Source: BMO

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

    22 1 Year 3 Year 5 Year Source: Bloomberg (as of August 31, 2015)

  23. Slide 23: Attractive value relative to peer group

    23 Price / Cash Flow EV / EBITDA Attractive value relative to peer group Source: Bloomberg analyst consensus (as of August 31, 2015)

  24. Slide 24: 2015 catalysts

    24  Updated NI 43-101Technical Report for La Encantada expected in Q4 2015  Expected cost reduction at La Encantada following expansion to 3,000 tpd  Expansion decision pending at La Guitarra which could increase production capacity to 1,000 tpd  Completion of underground haulage system at La Pa

  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’

  26. Slide 26: Appendix

    NYSE: AG FWB: FMV. BMV: AG APPENDIX jm FIRST MAJESTIC SILVER CORP,

  27. Slide 27: Our Strategy

    27 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

  28. Slide 28: Research coverage and institutional holders

    28 Research Coverage Institution % S/O Bank of America - David Forster Van Eck (GDX & GDXJ ETF) 13.2% Bank of Montreal - Andrew Kaip Resolute Funds 4.9% Cormark - Graeme Jennings M&G Investment Mgmt 3.7% Desjardins - Mike Parkin Vertex One 1.9% Dundee - Matthew O'Keefe Bank of Montreal 1.7% National

  29. Slide 29: Beta versus peers

    29 1 Year 3 Years 5 Years First Majestic 1.26 1.32 1.17 Silver Standard 1.42 1.39 1.02 Spot Silver 1.00 1.00 1.00 Silver Wheaton 0.81 1.04 0.94 Coeur 0.98 1.03 0.93 Hecla 0.70 0.92 0.87 Fresnillo 0.78 0.96 0.82 Pan American 0.87 0.88 0.72 GDX ETF 0.80 0.95 0.70 Spot Gold 0.46 0.52 0.41 Source: Bloom

  30. Slide 30: Shown as % of total cash costs

    30 Shown as % of Total Cash Costs

  31. Slide 31: Proven and probable mineral reserves

    31 PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014 Mine Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Proven (UG) Oxides 1,084 248 - - - 248 8,639 8,639 LA ENCANTADA Probable (UG) Oxides 2,115 291 - - - 291 19,754 1

  32. Slide 32: Measured and indicated mineral resources

    32 Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves) MEASURED AND INDICATED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014 Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Measured (UG)

  33. Slide 33: Inferred mineral resources

    33 INFERRED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2014 Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) LA ENCANTADA Inferred (UG) Oxides 899 340 - - - 340 9,832 9,832 Inferred (Tailings) Tailings 6,026 107 - - - 107

  34. Slide 34: Plomosas historical resources notes

    34 (1) Plomosas historical resources figures are taken from Grupo Mexico’s estimates prepared in 2001 (2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces. (3) A qualified person has not done sufficient work to classify the historical resources at Plomos

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